>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:
  • HDP -32.7%, (also President and Chief Operating Officer Herb Cunitz resigns), SWIR -20.2%, FEYE -16.4%, AQXP -14.7%, CPSI -13%, (also announces ceases providing guidance and new dividend policy), NOG-12.1%, TWOU -12%, OLED -10.3%, (also signs five-year License and Supplemental Material Purchase Agreement with Tianma Micro-electronics )
  • SHEN -9.6%, NVO -9.2%, FLR -7.9%, WTW -7.8%, AINV -7.2%, ZNGA -6.7%,INAP -6.4%, RBS -6.3%, NDLS -6.2%, CARA -5.7%, ZG -5.4%, LADR -4.4%,CERS -4%, CERS -4%, ACAD -3.4%, TCRD -3.4%, OTIC -3.1%, GST -3.1%
  • SYRG -2.8%, NRP -2.6%, TRUE -2.3%, MACK -2%, RATE -1.7%, FDUS-1.6%, BBG -1.4%, INGN -1.3%, WING -1.2%, ATRC -1.1%, EMKR -1.1%,FPRX -0.9%, AES -0.9%, CTSH -0.9%
Other news:
  • PDLI -17.5% (decides to eliminate its quarterly cash dividend)
  • DMRC -2.4% (announces proposed public offering of common stock)
  • LYG -1.4% (in sympathy with RBS earnings)
  • AZN -1.2% (in sympathy with NVO earnings)
  • SNY -1.2% (in sympathy with NVO earnings)
  • GSK -0.9% (in sympathy with NVO earnings)
  • CLX -0.8% (ticking lower; appoints CEO Benno Dorer as Chairman of the Board)
  • VER -0.7% (upsizes offering by 10 mln shares and prices 60 mln shares of common stock for gross proceeds of ~ $621 mln)
Analyst comments:
  • WIN -1.8% (downgraded to Underperform from Mkt Perform at Raymond James)
  • OME -1.7% (downgraded to Hold at Wunderlich)
  • TRIP -0.6% (downgraded to Hold from Buy at Deutsche Bank)
  • TEVA -0.6% (downgraded to Perform from Outperform at Oppenheimer)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:
  • EGLT +17.5%, (also announces that the joint meeting of the FDA voted 18 to 1 to recommend approval of ARYMO), PACB+16.1%, GSAT +14.2%, (also discusses status of talks with FCC ), AAOI +10%
  • ONVO +9.7%, TRXC +8.9%, KTOS +8.8%, OSIR +8.5%, ICON +7.9%, PETX +7.9%, RPTP +7.5%, UBNT +6.9%, AMRS+6.6%, MTZ +5.8%, CTRL +5.7%, PCLN +5.6%, LGF +5.3%, SYMC +5.1%
  • LOCO +4.7%, MGA +4.4%, KHC +4%, (increases quarterly dividend to $0.60/share from $0.575/share ), PTCT +3.8%,VVUS +3.8%, MELI +3.8%, FLT +3.4%, (also acquired Travelcard Nederland from LeasePlan; terms not disclosed), AHS+3%, FRPT +3%, SGMS +3%, ATVI +2.9%, APRI +2.8%, LNTH +2.8%, RVNC +2.5%, SSNI +2.5%, EOG +2.3%, MNST+2%, (also authorizes $250 mln share repurchase, ASYS +2%
  • TASR +1.9%, ECYT +1.9%, ABTL +1.8%, IVR +1.7%, IMPV +1.6%, (also Board commences review of strategic alternatives), IBP +1.5%, BMRN +1.4%, MDRX +1.3%, HMSY +1.3%, ESPR +1.2%, WY +1.1%, JUNO +1%, (announces multiple myeloma partnership with Memorial Sloan Kettering Cancer Center and Eureka Therapeutics for developing car t cell immunotherapy against multiple novel targets)
M&A News:
  • RAX +16.7% (following late spike/halt on potential PE interest)
  • RIO +2.2% (completes sale of Mount Pleasant thermal coal assets for $220.7 mln plus royalties to MACH Energy Australia Pty)
Select metals/mining stocks trading higher: BBL +3.5%, BHP +3.4%, HL +1.8%, BTG +1.8%, GFI +1.6%, CLF +1.4%, .

Other news:
  • IDXG +37% (very thinly traded, announces that the NY State Department of Health has reviewed and approved ThyraMir for marketing in New York State)
  • VIVE +19.2% ( receives regulatory approval for the sale of the Viveve System from the Ministry of Food and Drug Safety in South Korea)
  • MRK +12.6% (on potentially reduced competition for its Keytruda drug, following BMY's failed cancer drug trial)
  • OSIR +8.5% ( Osiris Therapeutics announces that the manuscript from its multicenter prospective post-market clinical trial using Grafix was accepted for publication in the International Wound Journal)
  • AVP +2.8% (upsizes & prices an offering of $500 mln 7.875% senior secured notes due 2022 )
  • SAUC +2.7% (Diversified Restaurant Holdings to split into two separate, publicly-traded companies through the tax-free spinoff of its Bagger Dave's business, also reported earnings)
  • LDOS +2.1% (declares special cash dividend of $13.64/share in connection with IS&GS transaction)
  • DLTR +0.9% (Dollar Tree announces corporate restructuring related to merger integration)
  • RYAM +0.9% (prices 1,500,000 shares of co's 8.00% Series A Mandatory Convertible Preferred Stock)
Analyst comments:
  • CLVS +1.7% (initiated with a Buy at SunTrust)
  • FLT +1.1% (upgraded to Outperform from Perform at Oppenheimer)

>>> BMY - Top-Line results from CheckMate 026, Phase 3 Study of Opdivo (nivoluma

Top-Line results from CheckMate 026, Phase 3 Study of Opdivo (nivolumab) in treatment-naïve patients with Advanced Non-Small Cell Lung Cancer did not meet primary endpoint 

Announced today that CheckMate -026, a trial investigating the use of Opdivo (nivolumab) as monotherapy, did not meet its primary endpoint of progression-free survival in patients with previously untreated advanced non-small cell lung cancer (NSCLC) whose tumors expressed PD-L1 at = 5%. The company will complete a full evaluation of the CheckMate -026 data and work with investigators on the future presentation of the results.Opdivo did not meet trial primary endpoint of progression-free survival in patients expressing PD-L1 = 5%CheckMate -026 is a Phase 3, open-label, randomized study of Opdivo as monotherapy versus investigators choice chemotherapy in patients with advanced non-small cell lung cancer (NSCLC). Patients enrolled in the trial had received no prior systemic treatment for advanced disease and tested positive for PD-L1 expression. The trial randomized 541 patients to receive either Opdivo 3 mg/kg intravenously every two weeks or investigators choice chemotherapy in squamous patients (gemcitabine with cisplatin/gemcitabine with carboplatin/paclitaxel with carboplatin) and non-squamous patients (pemetrexed with cisplatin/pemetrexed with carboplatin) until disease progression, unacceptable toxicity, or completion of 6 cycles. The primary endpoint is progression-free survival, as assessed by the Independent Radiology Review Committee, in patients with = 5% PD-L1 tumor expression.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: IDXG +37%, EGLT +27.3%, VIVE +19.2%, RAX +18.6%, PACB +15%, AAOI +9.2%, KTOS +8.8%, OSIR +8.5%, ONVO +8.5%, OSIR +8.5%, ICON+7.9%, LOCO +7.8%, LGF +7.7%, RPTP +7.5%, PETX +6.6%, UBNT +6.5%, PCLN +6%, MTZ +5.8%, CTRL +5.7%, GSAT +5%, KHC +4.4%, SYMC +4.1%, AHS +4%,PTCT +3.8%, VVUS +3.8%, MELI +3.8%, LDOS +3.4%, MDRX +3.4%, EOG +3.2%, TRUE +3.1%, LNTH +3.1%, MGA +3.1%, AVP +2.8%, BHP +2.8%, APRI +2.8%,SAUC +2.7%, TRXC +2.7%, RVNC +2.5%, SSNI +2.5%, ATVI +2.4%, CTSH +2.4%, ASYS +2%, GFI +1.9%, OAS +1.9%, ECYT +1.9%, TASR +1.8%, ABTL +1.8%,IVR +1.7%, MNST +1.6%, IMPV +1.6%, BP +1.5%, TOT +1.5%, IBP +1.5%, AMRS +1.3%, IRWD +1.3%, HMSY +1.3%, ESPR +1.2%, JUNO +1%, BBVA +0.9%, BMRN+0.9%, SEM +0.9%

Gapping down: HDP -27.2%, SWIR -18.8%, PDLI -17.5%, FEYE -15.2%, AQXP -14.7%, CPSI -13%, NOG -12.1%, TWOU -12%, ZNGA -9.1%, NVO -8.8%, FLR-7.9%, OLED -7.8%, WTW -7.5%, INAP -6.4%, RBS -6.1%, CARA -5.7%, ZG -4.6%, LADR -4.4%, NDLS -3.7%, ACAD -3.4%, TCRD -3.4%, OTIC -3.1%, GST -3.1%,SYRG -2.8%, CERS -2.6%, CERS -2.6%, NRP -2.6%, DMRC -2.4%, MACK -2%, RATE -1.7%, FDUS -1.6%, BBG -1.4%, SNY -1.3%, INGN -1.3%, AES -1.3%, VER-1.2%, WING -1.2%, ATRC -1.1%, EMKR -1.1%, AZN -0.9%, FPRX -0.9%, CLX -0.8%, GSK -0.8%, MMI -0.8%, FFG -0.8%

Fast FT : HSBC to pass BoE rate cut on to mortgage customers

Bank of England governor Mark Carney has said there is “no excuse” for high street lenders not to pass yesterday’s cut in interest rates on to customers – and at least some of the major lenders are heeding his warning.
HSBC has said it will pass the 25 basis point cut on to all of its customers with tracker mortgages that shadow moves in the BoE base rate. Meanwhile, customers with its standard variable rate mortgage will see their interest rate reduced from 3.94 per cent to 3.69 per cent at the start of next month. That is, of course, still far above the new BoE base rate of 0.25 per cent.
HSBC said on Friday:
Following the Base Rate announcement yesterday we have passed on the full reduction to customers with tracker mortgages today. We will also be passing on the reduction to mortgage customers on our Standard Variable Rate, which is already one of the lowest in the market and will reduce from 3.94% to 3.69% with effect from 1st September.
Santander UK and Barclays immediately announced cuts to their standard variable rate mortgages yesterday.
Determined to enhance the transmission of it monetary policy moves to the real economy, the BoE also unveiled a new “term funding scheme” – a £100bn facility to provide cheap loans to commercial lenders to help them lend to households and businesses at low rates.

>>> PBoC: Reiterates to pursue prudent monetary policy, to adjust monetary polic

PBoC: Reiterates to pursue prudent monetary policy, to adjust monetary policy stance when appropriate, to fend off systemic and regional risks - press 
- Intend to shape neutral and appropriate environment for monetary policy and the financial system
- To keep CNY stable, continue interst rate and exchange rate reform
- Frequent RRR cuts to add to CNY currency pressure
- To support a reasonable level of credit and financing growth
- Inflation likely to remain steady at low levels; rising property prices and flood might have impact on inflation

(MS) Strategy Chart Wall : No Growth in the us, UK Consumers bearish, Gold,

This Week’s Key Observations

Lead indicators point to no growth in the US… The Conference Board Lead Indicator is now up just 0.7% year on year, yet excluding the artificially distortive influence of yield curves, it is already in decline. So too is the Duncan Lead Indicator, which compares the consistently cyclical components of the economy in relation to overall real economic growth. It declined for the third straight quarter, which has historically been an indicator of a US recession. One of the few times when the DLI has declined for three consecutive quarters without a subsequent recession was 1986, when the US saw a similar drag from declining investment. Our economists see fading headwinds from energy and the dollar as likely to mean the US economy will avoid a recession, like in 1986, but these indicators do appear consistent with their heightened 40% recession probability.

UK consumers are very bearish on the economy, but less so on their own financial situation. Based on GFK data, UK consumer confidence saw the biggest ever monthly decline in July, falling to the lowest level in almost three years. However, the survey showed a wide gap between consumers’ opinions on the likely state of the economy of the coming 12 months, where expectations fell to the lowest level in over four years, and confidence in their own personal financial situation, which only fell to neutral levels.

Our economists’ Eurozone Consumer Spending Indicator points to a further slowdown in 3Q. Eurozone retail sales remained steady in June, up 1.6% versus last year, with monthly declines in both Germany and France offset by strength in Spain. While eurozone macro data have generally surprised on the upside in recent weeks, there are some warning signs of a less robust growth environment in the second half of the year. Consumer confidence declined in July for the second consecutive month, albeit remaining 0.6 standard deviations above the long-term average, and our economists’ Eurozone Consumer Spending Indicator points to a further slowdown in consumer spending in 3Q.


Cyclicals earnings revisions have fallen to their lowest levels relative to Defensives since 2009. Europe’s earnings season has delivered reasonably healthy 2Q results, with 10% more companies beating expectations than missing. In part because of decent results, earnings revisions haven’t, in aggregate, declined significantly post the UK referendum. However, European earnings revisions have been supported by Defensives and Commodities, where revisions remain positive, but dragged lower by both Financials and Cyclicals, where revisions remain deeply negative. The gap between Cyclicals and Defensives earnings revisions ratio has now fallen to its lowest level since 2009.