>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: TSRI +45.5%, SNSS +42.3%, CVEO+11.7%, LYV +11%, ENVA +10.1%, MOBL +9.7%, SNMX +9.1%, (also discloses an extension of its collaborative research, development, commercialization and license agreement with PepsiCo), CLD +9.1%, YRCW +8.6%, BCS +8.3%,ACTG +8.1%, PXLW +7.7%, AXL +7.6%, CLUB +7.5%, GNMK +7.2%, UCTT+6.5%, MERC +6.2%, DLNG +6.1%, AVHI +5.8%, BCOV +5.7%, STMP +5.6%,SNE +5.6%, GIMO +5.5%, GIMO +5.5%, SWC +5.3%, MT +5%, PCCC +4.9%,LPLA +4.9%, XRX +4.9%, CBL +4.7%, NWL +4.3%, DECK +4%, GOOG +3.9%,VCRA +3.9%, BGS +3.7%, BBVA +3.4%, ACHC +3.2%, CATM +3.1%, UBS+3.1%, ELLI +3%, WLKP +3%, KBR +2.6%, EEP +2.5%, HTCH +2.5%, TLGT+2.3%, NSU +2.3%, ABBV +2.1%, CY +2%, AMZN +1.9%, SAVE +1.9%, CBOE+1.7%, ARII +1.4%, NLNK +1.3%, MRK +1.2%, IM +1.1%, VTR +1%, RTEC+0.9%, INVA +0.7%, PFG +0.7%, (also increases dividend ), PSX +0.7%

M&A news: PBR +1.4% (Statoil acquires 66% of Petrobras' (PBR) operated interest of the BM-S-8 offshore licence in Santos basin

Other news:
  • TERP +6.6% (light volume-TerraForm Power planning to launch a formal auction in September to sell itself, according to Bloomberg )
  • P +2.4% ( Corvex Management affirms 9.95% active stake, discloses FCC petition)
  • SHPG +1.6% (announces that the FDA has granted Fast Track designation for SHP626 for an investigational treatment of adults who have NASH with liver fibrosis)
  • GE +0.5% (following insider buy disclosure - Chairman / CEO Immelt disclosed the purchase of 50K shares at $31.45/share), .
Analyst comments:
  • TAP +1.3% (upgraded to Buy from Neutral at Citigroup)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: MCRB -76.9%, SFS -21.8%,EHTH -14.7%, MDCA -12.2%, CAA -10.8%, FTNT -10.7%, HIG -10.7%, PSO-10.2%, CYBE -10.1%, ACRX -9.1%, WYNN -8.8%, SRCL -8.4%, (also discloses that various prior financial statements should no longer be relied upon due to errors in the timing of recognition of certain loss reserves ), CI -8.1%,RCKY -7.3%, LPNT -6.4%, EXPE -6.2%, EXPE -6.2%, ERJ -5.7%, EYES -5.3%, (also to distribute the Argus II Retinal Prosthesis System in Taiwan through exclusive agreement with Orient Europharma and in Iran through Arshia Gostar Darman), QSII -5.1%, WDC -5%, ESS -4.8%, BIDU -3.6%, EMN -3.4%,DRQ -2.9%, SNY -2.7%, ISIL -2.6%, XOM -2.6%, COLM -2.5%, MSTR -2.2%,INVN -2.2%, SAIA -1.9%, SYNA -1.8%, WETF -1.8%, FNFG -1.8%, E -1.8%, UPS-1.7%, DLR -1.6%, AUY -1.5%, (also announces sale of Mercedes mine in Mexico ), CVX -1.5%, LYB -1.3%, .

Select metals/mining stocks trading lower: RIO -1.8%, BHP -1.8%, VALE-1.7%, FCX -1.6%

Other news:
  • MCRB -77.4% (announces that its SER-109 Phase 2 ECOSPORT study on multiply recurrent Clostridium difficile infection did not achieve its primary endpoint)
  • QTNT -20.1% (commences an underwritten public offering of its ordinary shares for an undisclosed amount ), LVS -2.9% (WYNN sympathy), MPEL -2.7% (WYNN sympathy)
  • TRIP -2.1% (following EXPE earnings)
  • PCLN -2% (following EXPE earnings)
  • MGM -1.8% (WYNN sympathy
  • JAZZ -0.9% (Jazz Pharma and Pfenex announce agreement under which Pfenex granted Jazz worldwide rights to develop and commercialize multiple early stage hematology product candidates)
Analyst comments:
  • GRUB -3.6% (downgraded to Neutral from Buy at Monness Crespi & Hardt)
  • DE -1.6% (downgraded to Neutral from Buy at UBS)
  • TAP 1.3% (upgraded to Buy from Neutral at Citigroup)
  • BTI -0.7% (downgraded to Hold from Buy at Societe Generale)
  • F -0.6% (downgraded to Neutral from Buy at Goldman)

>>> UPS reports EPS in-line, revs in-line; reaffirms FY16 EPS guidance

UPS reports EPS in-line, revs in-line; reaffirms FY16 EPS guidance

  • Reports Q2 (Jun) earnings of $1.43 per share, in-line with the Capital IQ Consensus of $1.43; revenues rose 3.8% year/year to $14.63 bln vs the $14.65 bln Capital IQ Consensus.
    • U.S. Domestic operating profit increased to $1.2 billion and operating margin expanded 10 basis points to 13.7%. Productivity improvements bolstered by technology, combined with lower fuel costs, resulted in a 0.2% reduction in cost per unit compared to the same quarter in 2015.
    • International operating profit jumped more than 11% to $613 million, setting a record second-quarter level. Volume growth in all products, disciplined pricing and network efficiency gains contributed to the increase in profitability.
    • Supply Chain and Freight revenue increased by more than 13%, to $2.5 billion. This was mainly due to the acquisition of Coyote Logistics in the third quarter of last year. Weak market conditions in the Air Freight Forwarding and LTL markets weighed on top-line growth.
  • Co reaffirms guidance for FY16, sees EPS of $5.70-5.90 vs. $5.80 Capital IQ Consensus Estimate.

The Telegraph : Hutchison readies legal attack on EU over block on Three-O2 merg

Hutchison readies legal attack on EU over block on Three-O2 merger


CK Hutchison, the owner of the mobile operator Three, is mounting a formal legal challenge to the EU's decision to block its £10.25bn attempt to acquire O2.

Proceedings against the European Commission are due to be issued as soon as this afternoon at the European Court of Justice, industry sources said.

The challenge comes after officials in Brussels blocked Hutchison's takeover of O2 in May over claims a combination with Three would damage competition in the UK mobile market.

The decision appeared to signal a major shift the European Commission's previous attitude to mobile mergers. It had previously approved comparable deals in Ireland, German and Austria.

Victory in court would be unlikely to revive the UK tie-up, as the agreement between Hutchison and O2's owner Telefonica has lapsed. The Spanish giant is now working toward floating a minority stake in O2.

However, Hutchison could seek compensation and seek to set a precedent for further consolidation of the European mobile market. It is in the midst of a takeover in Italy, for instance, and needs EU approval.

The refusal to allow Three and O2 to merge threw Hutchison's plans in the UK into disarray. It had hoped to create the biggest mobile operator in the market, able to compete better with bigger players such as BT and Vodafone.

Now Three, which has lost more than £10bn over a decade building itself up from scratch, faces serious challenges to its business as it struggles to gain scale.

The company is campaigning from assistance from Ofcom in a forthcoming auction of mobile spectrum, arguing that with only nine million customers, less than a third of EE's, it cannot pay the same as rivals for more capacity.

The Telegraph first revealed that Hutchison was considering a legal challenge in April, as it became clear that Brussels planned to block the takeover.

People close to the deal believe the EU referendum played a major role in the decision, claiming that Brussels did not want to go against the wishes of the domestic telecoms regulator Ofcom in the run up to the vote.

A Three spokesman declined to comment.