>>> HSY/MDLZ : CNBC's Faber: Mondelez has bid $107/shr for Hershey, bid is half

CNBC's Faber: Mondelez has bid $107/shr for Hershey, bid is half cash and half stock 
- key remains the Hershey Trust as they will be the deciding vote
- initial bid includes provisions designed to get the Hersey Trust to give a favorable opinion on a deal: Would retain the Hersey name and manufacturing jobs in the US
- any bid would trigger loss of KitKat license which would go back to Nestle; KitKat is about 10% of Hersey business

>>> JUN CHICAGO PURCHASING MANAGER: 56.8 V 51.0E (highest since Jan 2015) Sub-in

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)

>>> US Gapping up

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:
  • 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)

>>> US Gapping down

Gapping down
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)

>>> US Early premarket gappers

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%