POT US - Hearing chatter circulating Potash has hired advisers following takeover approach
JUN CHICAGO PURCHASING MANAGER: 56.8 V 51.0E (highest since Jan 2015) Sub-indices (vs prior month revisions):
- Prices Paid: 55.7 v 56.5 prior
- New Orders: 63.2 v 48.8 prior (highest since Oct 2014)
- Employment: 45.0 v 48.3 prior
- Inventories: 50.0 v 37.9 prior
- Supplier Deliveries: 50.0 v 57.8 prior
- Production: 56.3 v 47.4 prior (highest since Jan 2016)
- Order backlogs: 59.7 v 47.7 prior (highest since Mar 2011)
RTRS - ACTIVE SHOOTER CONFIRMED AT U.S. JOINT BASE ANDREWS IN MARYLAND - U.S. DEFENSE OFFICIAL
Gapping up:
In reaction to strong earnings/guidance:
- PRGS +6.2%, CAFD +3.9%, STZ +2.2%, MKC +1.3%
M&A news:
- TTHI +107.1% (to be acquired by OPKO Health (OPK) for 6.4 mln shares of OPK, or $1.55 per share),
- STRZA +15%, LGF +9.8%, (Starz to be acquired by Lionsgate (LGF) for $4.4 bln in cash/stock, or ~$32.73 per share),
- BUD +2.8% (Anheuser-Busch InBev receives regulatory clearance in South Africa for its merger with SABMiller (SBMRY)),
-
VNET +2% (announces receipt of withdrawal of Buyer group's 'going private' proposal; separately, announces $200 mln share repurchase program), .
Select financial related names showing strength following CCAR:
- CIT +6% (to sell its Canadian equipment finance & corporate finance biz to Laurentian Bank of Canada for $700 mln),
- ALLY +4.7% (Ally Financial announces $0.08 quarterly dividend and $700 mln buyback following passage of CCAR review ),
- BK +1.7% (BNY Mellon to repurchase up to $2.7 billion of common stock; Federal Reserve does not object to 2016 capital plan, including proposed dividend increase),
- RF +1.4% (announces continuation of $0.065 quarterly dividend and possible $640 million buyback following CCAR ),
- HBAN +1.1% (Huntington Banc receives no objection from Federal Reserve for proposed capital actions, including increase of the quarterly dividend to $0.08 per share in 4Q16),
- USB +1% (receives results of CCAR; Federal Reserve did not object to company's capital distribution plan),
- C +0.9% (announces 2016 planned capital actions; Federal Reserve Board does not object to the planned capital actions ),
- BAC +0.9% (confirms CCAR plan in 8-K; increases dividend 50% to $0.075; announces $5 bln share repurchase )
Select metals/mining stocks trading higher despite mixed moves in metals: GOLD +3.9%, BBL +3.4%, BHP +2.7%,RIO +2.5%, AUY +1.9%, FCX +1.2%, VALE +1%, CLF +0.8%
Other news:
Other news:
- CRCM +43.4% (Care.com announces $46.35 mln investment from Alphabet- Laela Sturdy, a Partner at Google Capital, will join its Board; co repurchases 3.7 mln shares from Matrix Partners),
- NGHC +18.8% (National General prices 7 mln depositary shares, each representing a 1/40th interest in a share of its series C 7.50% non-cumulative preferred stock at $25 per depositary share),
- AKER +16.2% (completes clinical trial for rapid chlamydia test; co states results were highly successful),
- MBLY +9.4% (Bloomberg reported that Mobileye has partnered with Intel (INTC) to develop autonomous driving tech for BMW, also shareholders approve proposal to repurchase up to 10% of the co's stock ),
- GBSN +8.6% (agrees to issue $75 mln in principal face amount of senior secured convertible notes and related Series H common stock purchase warrants),
- SGY +6.9% (Stone Energy to terminate its current contract with Ensco (ESV) for total consideration of $20 million; separately, enters an agreement with Williams at the Mary field in Appalachia),
- CDXC +5.4% (announces article Bleecker Street Research published on Seeking Alpha on June 20 has been removed and replaced with an apology from the author),
- SSTK +5.3% (will replace Southwest Gas in S&P SmallCap 600),
- CPHD +1.2% (FDA cleared for marketing the Xpert Carba-R Assay - first test to detect specific genetic markers for certain antibiotic-resistant bacteria directly from clinical specimens),
- AA +1.2% (receives contract w/ Embraer (ERJ) valued at ~$470 mln)
Analyst comments:
- SSNI +3.4% (upgraded to Strong Buy from Outperform at Raymond James),
- PENN +2.4% (upgraded to Outperform from Neutral at Macquarie),
- PCLN +2.3% (upgraded to Overweight from Equal-Weight at Morgan Stanley),
- AUY +1.9% (upgraded to Outperform from Neutral at Credit Suisse),
- IAG +1.7% (upgraded to Neutral from Underperform at Credit Suisse),
- NOK +1.3% (upgraded to Buy from Neutral at Goldman),
- SLW +1% (upgraded to Outperform from Neutral at Credit Suisse)
Gapping down
In reaction to disappointing earnings/guidance:
In reaction to disappointing earnings/guidance:
- EXFO -17%, PIR -5.3%, DRI -4.5%, SBLK -3.6%, TSCO -3.4%, (Tractor Supply lowers FY16 guidance, guides Q2 below consensus), BGCP -1.2%, XPLR -0.7%
Select EU financial related names showing weakness:
- DB -3.7% (Federal Reserve objected to the capital plans of Deutsche Bank Trust Corporation and Santander Holdings USA)
- SAN -2.6% (Santander Holdings USA issues statement on results of the Federal Reserve's CCAR confirming Federal Reserve objects to its proposed capital plan on a qualitative basis)
- RBS -5.9% and BCS -2.6%(trading lower in sympathy with EU bank peers)
Other news:
- SRNE -6.7% (files for ~32.3 mln share common stock offering by selling shareholders)
- ICPT -5.9% (announces a $400 mln underwritten public offering of convertible notes due 2023)
- BRX -4.5% (announces 20 mln share secondary offering of common stock by selling stockholders)
- BRX -4.5% (prices secondary offering of 20 mln shares of its common stock by selling stockholders at $26.15 per share)
- TSRO -3.1% (announces a $300 mln underwritten public offering of common stock)
- LPCN -1.6% (following 50%+ decline Wednesday)
- NSA -1.4% (upsizes and prices offering of 10,475,000 common shares at $20.75 per share)
Analyst comments: QCOM -1.6% (downgraded to Mkt Perform from Outperform at Bernstein)
Early premarket gappers
Gapping up: CRCM +40.5%, GBSN +18.9%, NGHC +18.8%, LGF +7.4%, MBLY +6.6%, STRZA +6.2%, PRGS +6.2%, CIT+6%, VALE +4.7%, SGY +4.4%, BBL +4.4%, CLF +4.1%, GOLD +4.1%, SSTK +3.9%, CAFD +3.9%, YELP +3.7%, RIO+3.3%, XOMA +3.2%, ALLY +3.2%, BHP +3.2%, STO +3.2%, BUD +3.2%, MKC +2.3%, AUY +2.1%, VNET +2%, STM+1.9%, C +1.8%, BAC +1.7%, RF +1.4%, TOT +1.4%, FCX +1.4%, ESPR +1.3%, GS +1.3%, BP +1.3%, CPHD +1.2%, HBAN+1.1%, BK +1.1%, JPM +1%, SWX +1%, AA +1%, LNT +0.9%
Gapping down: EXFO -17.3%, TSCO -7.4%, SRNE -6.7%, PIR -6.1%, ICPT -4.6%, RBS -4.5%, BRX -4.4%, BRX -4.4%, SBLK-3.6%, TSRO -3.3%, DB -2%, GFI -2%, BCS -1.6%, NSA -1.2%, BGCP -1.2%, AZN -1.1%, ALV -1.1%, SAN -0.8%, XPLR-0.7%
Gapping down: EXFO -17.3%, TSCO -7.4%, SRNE -6.7%, PIR -6.1%, ICPT -4.6%, RBS -4.5%, BRX -4.4%, BRX -4.4%, SBLK-3.6%, TSRO -3.3%, DB -2%, GFI -2%, BCS -1.6%, NSA -1.2%, BGCP -1.2%, AZN -1.1%, ALV -1.1%, SAN -0.8%, XPLR-0.7%
The diesel scandal triggered off quarrels between top German politicians. Trigger is the Group's decision to pay American consumers for each defective diesel car up to $ 10,000.
Between top German politicians raging dispute over compensation payments for German VW -Kunden in "Diesel gate" scandal. Trigger is the group's decision, American consumers pay for each defective diesel car up to $ 10,000 reparation - but not provide similar payments in Germany. "Consumers in Germany have been cheated as well," said FDP leader Christian Lindner WirtschaftsWoche. "The VW Corporation should also offer them compensation, even if he is not legally obliged to."
Against such a demand talks with the Group, especially the sheer amount of potential payments. So VW would pay estimated up to 330 billion euros, should all owners of faulty diesel be compensated accordingly. This could drive the company into bankruptcy.
Lower Saxony's economics minister Olaf Lies - Member of the VW supervisory board - therefore opposes Lindner demand. "I can understand, of course, that in the USA settlement reached expectations in Germany arouses" says Read WirtschaftsWoche. "But the situation is really another. The limits in the US are much stricter, retrofitting complicated and participating in a recall is different here voluntarily. Nevertheless, the authorities expected in the United States, should apply to all vehicle owners convert their cars. "
Lies continues: "Even the legal system at this point is just different. Do we really want a consumer protection in the US, where a woman wins $ 2.7 million for damages because they scalded with a hot coffee to? Even though the extent of fraud frightened, as it is from the perspective of the individual consumer but here only a "normal" to recall. There is a technical defect which will be fixed by Volkswagen for free. "
According to FDP leader Lindner compensation in Germany would not be as high as in the United States and so do not bring the group into trouble indeed. Dieter Janecek, economic policy spokesman for the Greens in the Bundestag, is another question: "Who is actually the victims of the scandal? Customers who bought Pke under false pretenses? Or the general public, pedestrians, cyclists and residents who breathe the dirty air from the exhausts? So if VW has to fork out, then the benefit of air pollution control measures of the municipalities. "