>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: AZPN -18.2%, QSII -12.1%,AMZN -11.2%, QTM -9%, EMN -6.7%, ALV -6.5%, EA -4.7%, SYNA -3.5%,ABBV -3.3%, BDGE -2.7%, LADR -1.1%, MA -1.1%, JBSS -1%, N -0.9%, SPIL-0.8%, HTBK -0.6%, .


Select metals/mining stocks trading lower: HMY -8.3%, MT -5.5%, BBL-2.8%, RIO -2.7%, BHP -2%, ABX -1.1%


Other news: AMDA -4.5% (slight pull back following yday's strength),VALE -2.2% (announces that, in compliance with its dividend policy and due to price volatility in mineral commodities, the Executive Board has approved and will submit to the Board a proposal for a minimum dividend equal to zero for 2016 ), HK -2% (announced suspension of dividend on Series A Cumulative Perpetual Convertible Preferred Stock), DB -1.6% (cont weakness)

Analyst comments: GLP -2.5% (downgraded to Neutral from Overweight at Mitsubishi UFJ), CHUY -2.2% (downgraded to Mkt Perform from Outperform at Raymond James).

>>> CNH Industrial beats by $0.03, beats on revs; Co announces $300 mln stock bu

CNH Industrial beats by $0.03, beats on revs; Co announces $300 mln stock buyback
  • Reports Q4 (Dec) earnings of €0.19 per share, excluding non-recurring items, €0.03 better than the Capital IQ Consensus of €0.16; revenues fell 14.6% year/year to €7.14 bln vs the €6.6 bln Capital IQ Consensus.
  • The Board of Directors announces a buy-back of Company's common shares of up to $300 mln
  • Operating profit of Industrial Activities was $563 mln for Q4, a $187 mln increase compared to the same period in 2014, with an operating margin of 8.2%, up 3.5 p.p. compared to Q4 2014
  • Operating profit for the quarter increased in Agricultural Equipment and in Construction Equipment, driven by net price realization, structural cost reductions and favorable material costs
  • Commercial Vehicles' operating profit improved due to favorable pricing in all regions and manufacturing efficiencies in EMEA
  • Agricultural Equipment's net sales totaled $2,982 mln for Q4 2015, a decrease of 3.8% compared to the same period in 2014 on a constant currency basis (down 12.4% on a reported basis), due to lower industry volumes, partially offset by positive net pricing Net industrial debt of $1.6 bln at December 31, 2015 was $1.8 bln lower than at September 30, 2015 and $1.1 bln lower than at December 31, 2014
  • Net industrial cash flow was a net inflow of $1.8 bln in the fourth quarter and $0.8 bln in the year, as a result of reductions in working capital. Available liquidity at December 31, 2015 was $9.3 bln, inclusive of $3.0 bln in undrawn committed facilities, compared to $8.9 bln at December 31, 2014

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: GIMO +20.3%, MTW +14.1%,QLGC +11.1%, FLEX +9.2%, FTNT +9.1%, SWKS +6.5%, SHOR +5.7%, ALGN+5%, USAT +4.7%, MSFT +4.2%, PFPT +3.8%, STX +3.7%, COHR +2.9%,WRK +2.7%, HON +2.3%, AAL +2%, ARAY +1.7%, V +1.5%, CLGX +1.2%,CLGX +1.2%, WDC +0.9%, PTR +0.8%, FICO +0.7%, WHR +0.7%, AMGN+0.5%

M&A news: BLT +0.9% (updates on go-shop period, none of the 91 parties contacted submitted an alternative acquisition proposal)

Other news: INO +9% (cont strength), STRP +4.6% (Blackrock filed a passive 5.3% stake), RDY +4.4% (receives FDA approval for ZEMBRACE SymTouch injection), OSTK +2% (accepted $20 mln to settle market manipulation case), MRK +2% (receives FDA approval of ZEPATIER), FIT+2% (modestly rebounding after recent weakness), CSIQ +1.9% (to receive a financing package of up to $70 mln in loans and equity investment from IFC), AZN +1.8% (Allergan to collaborate with AstraZeneca (AZN) to develop and commercialize ATM-AVI), SUNE +1.6% (presenting at investor conf today), FCH +1.2% ( responds to Land and Buildings and provides update on its strategic plan), PII +1% ( increases quarterly dividend 4% to $0.55/share; approves increase in stock repurchase authorization by 7.5 mln shares), GGP +0.8% (following late surge higher on renewed BAM takeover speculation)

Analyst comments: ICPT +2.7% (upgraded to Equal-Weight from Underweight at Morgan Stanley), KITE +2.5% (initiated with a Buy at Sun Trust Rbsn Humphrey), JCP +2.5% (upgraded to Neutral from Underperform at Credit Suisse), SCSS +2.3% (upgraded to Outperform at Wedbush), JNPR +1.9% (upgraded to Outperform from Mkt Perform at Bernstein), JUNO +1.3% (initiated with a Buy at Sun Trust Rbsn Humphrey), JBLU +1.3% (upgraded to Buy from Hold at Evercore ISI)

>>> US Early premarket gappers

Early premarket gappers

Gapping up: PPHM +32.7%, GIMO +17.5%, MTW +14.1%, QLGC +11.1%,FTNT +10%, FLEX +9%, SHOR +5.7%, ALGN +5%, MSFT +4.9%, USAT+4.7%, STRP +4.6%, RDY +4.4%, SWKS +4.2%, SUNE +3.6%, PFPT +3.1%,COHR +2.9%, COHR +2.9%, WRK +2.7%, MA +2.5%, INFY +2.4%, CEO+2.2%, OSTK +2%, XRX +1.8%, ARAY +1.7%, SHPG +1.6%, AZN +1.4%, CS+1.3%, BCS +1.3%, FCH +1.2%, CLGX +1.2%, CLGX +1.2%, GGP +1%, WDC+0.9%, HON +0.8%, FICO +0.7%, WHR +0.7%, V +0.6%, PII +0.5%

Gapping down: AZPN -18.2%, QSII -12.1%, AMZN -9.5%, QTM -9%, HMY-8.3%, AMDA -7.4%, EMN -6.7%, MT -6.2%, EA -6.1%, ALV -5%, SDRL-4.2%, SYNA -3.5%, BBL -2.6%, BHP -2.3%, VALE -2.2%, HK -2%, ABX -2%,RDS.A -1.2%, LADR -1.1%, JBSS -1%, N -0.9%, SPIL -0.8%, HTBK -0.6%

>>> Amazon: Color on Quarter --> -10% pre open

Amazon: Color on Quarter
  • Mizuho lowers their AMZN tgt to $685 from $720. They note Amazon is seeing greater third-party FBA-related units flow through, thus requiring more investment in fulfillment. Ultimately, FBA comes at higher margin than 1P sales, so they believe these investments will drive revenue and margin improvement over time. They don't believe this marks another major investment cycle, so they do see CSOI margins continuing to improve; Buy.
  • RBC lowers their AMZN tgt to $715 from $775. Expectations (including their) may need to be tempered. But this is temporary. And their ‘Net stock-picking history has taught us that Expectations Corrections can create great Buying opportunities. Based on their ULT reports, they still see AMZN's Retail Business as being in Prime Flywheel Mode & they still view AWS momentum as one of the most powerful trends in Tech today. AMZN remains their #2 Long in the ‘Net Sector.
  • Stifel notes Amazon missed some important estimate or maybe the stock shouldn't have gone up 9% during the day on 1/28 followed by an 11% decline after hours vs. just remaining roughly flat for the day. Revenue / CSOI for 4Q:15 was toward the high-end of guidance. Revenue/CSOI guidance for 1Q:16 was roughly in line with their estimates despite incremental negative currency impact. The long-term remains unchanged. The stock is up 375x since the IPO in 1997 and the co continues doing what it has been doing from the beginning -- driving growth and market share to maximize long-term operating profit and free cash flow dollars. Should we now start debating whether it is over this time or just buy the dip and move on to more legitimate debates? They think the latter -- buy the dip, it won't last.
  • Needham notes Amazon reported 4Q15 results slightly below consensus, which did not measure up to the high expectations. While some of the short fall was attributable to FX, they believe the holiday ecommerce trends likely tailed off faster than expected and the rev mix favored Amazon's third-party (3P) business. Thestrength of 3P propelled the adoption of Fulfillment by Amazon (FBA), which lifted variable costs above expectations. Consequently, operating income fell below expectations despite the strong growth of high-margin AWS revenue. Q1 guidance was mixed with rev upside likely driven by Prime and AWS, but lower than expected operating income as Amazon continues to invest in Prime, as well as ongoing investment in fulfillment, marketing and technology and content; Hold.

>>> AbbVie beats by $0.01, reports revs in-line; reaffirms FY16 EPS guidance (5

--> -4.21% pre open

AbbVie beats by $0.01, reports revs in-line; reaffirms FY16 EPS guidance
  • Reports Q4 (Dec) adj. earnings of $1.13 per share, $0.01 better than the Capital IQ Consensus of $1.12; GAAP rev rose 17.4% year/year to $6.4 bln vs the $6.38 bln Capital IQ Consensus. On an operational basis, adjusted net revenues increased 24.4%, excluding a 6.0% unfavorable impact from foreign exchange rate fluctuations. Global HUMIRA sales increased 16.0% on an operational basis, excluding the impact of foreign exchange.
    • Exceptional U.S. HUMIRA growth of 20.7% was driven by continued momentum across all three major market categories - rheumatology, dermatology and gastroenterology. International HUMIRA sales growth was also strong in the fourth quarter, up 9.7% on an operational basis. Reported international HUMIRA sales growth in the quarter was reduced by 13.1% due to FX; total Humira sales +18% to $3.7 bln.
    • Q4 global IMBRUVICA net revenue was $343 million, with U.S. sales of $295 million and international profit sharing of $48 million for the quarter.
    • Total co rev growth was also driven by $554 million in global VIEKIRA sales in the quarter, as well as strong operational growth from Duodopa, Creon and Lupron.
  • Co reaffirms guidance for FY16, sees EPS of $4.90-5.10, excluding non-recurring items, vs. $5.03 Capital IQ Consensus Estimate.