>>> Caterpillar: June world total machine retail sales -12% (vs. -12% in May), E

Caterpillar: June world total machine retail sales -12% (vs. -12% in May), Energy & Transportation retail sales -26% (vs. -30% in May)

Total Machines (June 2016 vs May 2016)
  • Asia Pacific: -7% vs -13%
  • EAME: -4% vs -4%
  • Latin America: -38% vs -31%
  • North America: -12% vs -12%
  • World: -12% vs -12%
Total Energy & Transportation (June 2016 vs May 2016)
  • Power Gen -24% vs -19%
  • Industrial -19% vs -15%
  • Transportation -4% vs -33%
  • Oil and gas -35% vs -41%
  • Total -26% vs -30%
Reminder: CAT reports earnings tomorrow.

>>> Apple target raised to $168 at Maxim Group -- Buyers heading into AAPL's lam

Apple target raised to $168 at Maxim Group -- Buyers heading into AAPL's lame duck quarter as survey data indicates on precipice of multi-year investment upcycle

Maxim Group raises their AAPL tgt to $168 from $157. For Q3, firm continues to model $41.8B (down 16% y/y) in rev (guidance is $41B to $43B), largely driven by a 21% y/y decline in iPhone units (sell-in) to 37.8M units. Notably, firm is modelling for iPhone units sell-out to be down 21% q/q, which compares to a past 4 year average of down 18% q/q, which is conservative if the iPhone SE is proving to drive a proportionately higher number of incremental users into the iPhone ecosystem than the iPhone 6C. For Q4, firm continues to model $45.1B in rev (down only 9% y/y), largely driven by a moderation in the iPhone y/y unit decline to 11% y/y to 42.1M units. Importantly, utilizing the Sept 2015 quarter channel inventory level (look ahead basis) of 3.4 weeks, firm models for an 8% q/q decline in iPhone unit sell-out, which compares favorably to the past 5 year average of down 3% q/q.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: CEMI -5.3%, WAB -4.8%, KMB-2%

M&A news: YHOO -1.0% (confirms it will sell its operating business to Verizon (VZ) for ~$4.83 bln in cash)

Select metals/mining stocks trading lower: AG -1.9%, AUY -1.5%, NEM-1.3%, ABX -1.1%, GOLD -1%, GDX -1%, SLV -1%, AU -0.8%, .

Other news:
  • TBRA -64.5% (announces results from its CENTAUR Phase 2b clinical trial evaluating the efficacy and safety of cenicriviroc for the treatment of NASH in 289 adults with liver fibrosis; study did not meet primary endpoint)
  • OCUL -13% (receives CRL from the FDA regarding its NDA for DEXTENZA)
  • SC -6.3% (delays the release of its 2Q16 earnings release, co in discussions with current & previous independent accountants primarily related to the discount accretion and credit loss allowance methodologies)
  • RDY -2.6% (still checking)
  • CLB -1.6% (discloses in 10Q being contacted by the DOJ regarding an investigation into Unaoil)
Analyst comments:
  • SBRA -2.6% (downgraded to Underperform from Neutral at BofA/Merrill)
  • DATA -2.3% (downgraded to Hold from Buy at Deutsche Bank)
  • AGCO -1.7% (downgraded to Underweight from Neutral at Piper Jaffray)
  • CNHI -1.5% (downgraded to Underweight from Neutral at Piper Jaffray)
  • DE -1.4% (downgraded to Underweight from Neutral at Piper Jaffray)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: SILC +7.8%, PHG +2.8%, S +2.8%, POST +1.8%, RYAAY +1.6%, DHR+0.8%, PETS +0.8%, .

M&A news:
  • TERP +6.2% (Brookfield Asset Management (BAM) enters letter agreement with Appaloosa LP forming a group that holds 34.4% active stake; parties intend to enter into agreement to act as joint bidders for the potential purchase of SunEdison's (SUNEQ) shares of TERP)
  • SCTY +2.1% (SolarCity, Tesla (TSLA) making progress towards signing a definitive merger agreement, according to Reuters)
  • CKEC +2.1% (announces amended merger with AMC Theatres (AMC), stockholders will have the option to elect to receive either $33.06/share in cash or 1.0819 shares of AMC's Class A common stock)
  • PBR +0.9% (signs sale and purchase agreement with the Southern Cross Group for 100% of Petrobras Chile), .
Other news:
  • BLPH +43.8% (announces approval to commence Phase 2 trial for INOpulse to treat pulmonary hypertension in chronic obstructive pulmonary disease)
  • BIND +37.3% (announces there are two bidders in addition to Pfizer's (PFE) initial stalking horse bid of ~$20 mln in auction for its assets)
  • GNVC +33.3% (notified by its collaborator, Novartis (NVS), that the FDA has lifted the clinical hold on the Phase 1/2 clinical trial of CGF166 in patients with severe to profound hearing loss)
  • GLNG +10% (Golar LNG and Schlumberger (SLB) announce creation of OneLNG a joint venture to rapidly develop low cost gas reserves to LNG)
  • CLSN +8.3% (announces data from the immunotherapy study of newly diagnosed ovarian cancer patients)
  • AVXL +6.7% (presents 31-week safety data from Phase 2a Study of ANAVEX 2-73)
  • MU +4.7% (declares dividend of one right for each share of common stock outstanding at the close of business on August 1)
  • MACK +4.5% (Shire and Merrimack confirm positive CHMP opinion for ONIVYDE showing that combined with chemotherapysignificantly increased overall survival)
  • ALDR +2.5% (announces top-line 24-week data demonstrating persistent migraine prevention in a Phase 2b clinical trial evaluating ALD403)
  • ERIC +2.2% (CEO steps down; CFO to assume the CEO position; initiates search for new CEO)
  • CLNT +2% (continued strength)
Analyst comments:
  • OCLR +3.8% (upgraded to Strong Buy from Buy at Needham)
  • PHM +2.1% (upgraded to Buy from Hold at Deutsche Bank)
  • HPE +2% (upgraded to Buy from Neutral at Citigroup)
  • WFM +1.8% (upgraded to Outperform from Neutral at Macquarie)
  • VMW +1.4% (resumed with a Overweight at Morgan Stanley)
  • MDLZ +1.1% (upgraded to Positive from Neutral at Susquehanna)

Reuters : Buyout funds eye alliances for SABMiller's Pilsner, CEE brands: source

Buyout funds eye alliances for SABMiller's Pilsner, CEE brands: sources



U.S. and European buyout funds are gearing up for SABMiller's (SAB.L) sale of its central and eastern European beer brands with some seeking to join forces to snap up assets worth up to 7 billion euros ($7.69 billion), sources familiar with the matter said.

London-based Advent has been conducting preliminary work for several months and has emerged as one of the most determined suitors, the sources said.

Mid-sized investment firms including Mid Europa Partners and Czech family office R2G are discussing their options with some bigger Western funds including U.S. buyout funds KKR (KKR.N) and Bain Capital and European funds BC Partners and PAI Partners, the sources said.

Japan's Asahi Group Holdings (2502.T) has also signaled interest, they added.

AB InBev, SABMiller, Advent, KKR, BC Partners, PAI and R2G declined to comment while Bain Capital and Mid Europa Partners weren't immediately available for comment.