>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: CEVA +11.3%, CLX +6%, EL +5%, DO +4.6%, CAH +3.1%, SYY +0.8%

M&A news: DYAX +33.7% (to be acquired by Shire (SHPG) for $37.30/share), CTCT +21.1% (Constant Contact to be acquired by Endurance International Group (EIGI) for $32/share), CAG +4.8% (to acquire ConAgra Foods' (CAG) private brands operations for $2.7 billion; expects dilution in year one, and accretion thereafter; preannounces Q3)

Other news: UNXL +50.5% (reports receiving a pre-production order, from a major PC OEM for a 10 inch tablet product), ACAD +9.1% (announces FDA Priority Review of NUPLAZID (Pimavanserin) New Drug Application for Parkinson's Disease Psychosis), SORL +5.2% (confirms non-binding proposal to be acquired for $2.84 per share), VRX +4.5% (continuing to rebound after recent decline), NEO +3.4% (General Electric (GE) discloses 7.7% active stake in 13D filing ), FIT +2.9% (favorable commentary on Friday's Mad Money), WYNN +2.6% (Macau Oct gaming revs released), BLDP +2.6% (signs agreement with Tangshan Railway Vehicle Co for development of a new fuel cell module; valued at $3 mln), MGM +2.4% (Macau Oct gaming revs released), PFE +0.7% (Pfizer (PFE) and AGN plan to secure deal this month, according to Bloomberg )

Analyst comments: WEN +3.7% (upgraded to Outperform at RBC Capital Mkts), RAX +2.5% (upgraded to Buy from Neutral at BofA/Merrill ), MGM +2.4% (upgraded to Buy from Neutral at UBS), ABBV +2.4% (upgraded to Overweight from Equal-Weight at Morgan Stanley), RBS +2.1% (upgraded to Outperform from Neutral at Exane BNP Paribas), KEY +1.8% (upgraded to Outperform from Mkt Perform at Keefe Bruyette
)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: EIGI -17.5%, CCJ -9.5%, GRBK -6.2%, L -5.4%, CRNT -2.3%, V -2.2%, THLD -1.6%

M&A news: PMCS -1.4% (receives proposal from Microsemi; reiterates commitment to Skyworks (SWKS) transaction; proposal from Microsemi (MSCC) is not a superior proposal), MY -0.9% (receives non-binding 'going private' offer for $2.51 per ADS)

Select metals/mining stocks trading lower: RIO -1.6%, BBL -1.1%, BHP -1.1%, HL -1%, FCX -0.3%

Other news: MNKD -5.4% (cont weakness), CMG -3.9% (shut down 43 restaurants in Washington/Oregon in relation to an E. coli outbreak), KMI -2.9% (Barron's profiles cautious view on Kinder Morgan), SZYM -2.7% (terminates operating agreement with Archer-Daniels (ADM)), VRTX -2.5% (discloses in 10-Q filing that it received a subpoena from the U.S. DoJ related to co's marketed medecines), JD -2.2% (Shanghai down nearly 2% overnight)

Analyst comments: JMEI -3.2% (downgraded to Neutral from Buy at Goldman), ANET -1.9% (downgraded to Sell from Neutral at Goldman), ATVI -0.9% (downgraded to Neutral from Buy at BofA/Merrill), KATE -0.8% (downgraded to Neutral at Monness Crespi & Hardt), STX -0.5% (downgraded to Hold at Maxim Group
)

>>> US Early premarket gappers

Early premarket gappers

Gapping up: DYAX +34.4%, CAG +13.1%, NBG +8.8%, MGM +5.3%, SORL +4.7%, VRX +3.4%, FIT +3.3%, WYNN +2.2%, NVO +2.2%, BCS +2.1%, RBS +2.1%, DB +2%, PRGO +1.6%, ING +1.5%, SAP +1.3%, MU +1.2%, PFE +1.2%, TWTR +1%, DEO +0.9%

Gapping down: CMG -4.9%, MNKD -4.2%, JMEI -3.2%, SDRL -2.9%, KMI -2.4%, JD -2.2%, RIO -2%, BBL -1.4%, MY -1.4%, BP -1%, FCX -0.9%, MA -0.8%

>>> Merck receives Breakthrough Therapy Designation from FDA for KEYTRUDA (pembr

Merck receives Breakthrough Therapy Designation from FDA for KEYTRUDA (pembrolizumab) in advanced colorectal cancer

Co announces that the FDA has granted Breakthrough Therapy Designation to KEYTRUDA (pembrolizumab), the company's anti-PD-1 therapy, for the treatment of patients with microsatellite instability high (MSI-H) metastatic colorectal cancer. This is the third Breakthrough Therapy Designation granted for KEYTRUDA. Merck is conducting a Phase 2 registration study (KEYNOTE-164) to evaluate the efficacy and safety of KEYTRUDA based on microsatellite instability status in patients with previously treated advanced colorectal cancers, and is also planning a Phase 3 study (KEYNOTE-177) in a treatment naïve patient population. Registration-enabling trials of KEYTRUDA are currently enrolling patients in melanoma, NSCLC, head and neck cancer, bladder cancer, gastric cancer, colorectal cancer, esophageal cancer, breast cancer, Hodgkin lymphoma, multiple myeloma and other tumors, with further trials in planning for other cancers.

>>> Uber Pulls Out Of Three German Cities After Court Ban Shrinks Driver Pool

Uber Pulls Out Of Three German Cities After Court Ban Shrinks Driver Pool

Despite raising a warchest of some $8 billion thus far, on-demand ride sharing platform Uber is retrenching its operations in Germany — pulling out of three cities (Frankfurt, Hamburg and Düsseldorf), leaving active operations in just Berlin and Munich.

The move follows a Frankfurt regional court ban on Uber using unlicensed drivers, issued back in March. The court ruled that each violation of the ban would be subject to a €250,000 ($270,000) fine. The legal challenge was driven by German taxi operator group Taxi Deutschland targeting the lower cost UberPop service.

At the time Uber had said it would continue operations in the cities, offering its limousine service and licensed taxi drivers, but has now decided it’s not able to run a reliable service with only those fall-back options because it can’t get enough drivers.

“For many prospective Uber partners the process of registering an independent rental car enterprise has proved as too costly and time consuming,” Uber said in a statement picked up by Reuters on Friday.

Writing in an email sent to Uber driver in Hamburg the company notes it has found the “local conditions difficult to build a reliable switching platform for car rental companies”, saying it has therefore been unable to guarantee both high demand for its service and enough drivers to supply passengers wanting to use Uber in the city.

It goes on to say it has decided to “pause Uber in Hamburg temporarily”, as of November 9, adding that is working “with politicians and local authorities” to try to find a long term solution for its business in Germany.

Although it is continuing to operate in Berlin, the UberPop service has also been banned there — with a Berlin court upholding an ban on the service back in April on passenger safety grounds. So in Berlin Uber runs a service that uses regular licensed taxis to fulfill rides hailed via its app.

In a statement provided to TechCrunch, Uber’s Christian Freese, GM for Germany, added: “We’ve found the requirements, even for licensed services, to be very complex. Uber is increasingly popular in Munich and Berlin so we have decided to focus our efforts there and suspend our operations in Frankfurt, Düsseldorf and Hamburg.

“We know this will be disappointing for riders and our partner drivers in those three cities, so we are looking at how we can support them. Uber remains committed to expanding its services in Germany, and will therefore continue its engagement and dialogue with politicians and regulators.”

The UberPop service has also been banned in multiple other locations in Europe, including France, Belgium, Italy, Spain and the Netherlands (although Uber has continued to operate the service in some markets, flouting court rulings). Meanwhile in the U.K., London’s transport regulatory body is currently consulting on proposed changes to regulations governing private hire vehicles which could result in strict new limits on how Uber can operate in the city next year.

>>> Estee Lauder beats by $0.12, beats on revs; guides Q2 EPS below consensus; r

Estee Lauder beats by $0.12, beats on revs; guides Q2 EPS below consensus; reaffirms FY16 guidance

  • Reports Q1 (Sep) earnings of $0.82 per share, $0.12 better than the Capital IQ Consensus of $0.70; revenues rose 7.7% year/year to $2.83 bln vs the $2.78 bln Capital IQ Consensus.
    • Adjusting for the impact of the accelerated orders, net sales and diluted earnings per common share in constant currency for the quarter ended September 30, 2015 would have increased 8% and 16%, respectively.
  • Co issues downside guidance for Q2, sees EPS of $1.04-1.08 vs. $1.20 Capital IQ Consensus Estimate.
    • Net sales are forecasted to increase between 6% and 7% in constant currency. Reflecting the strength of the U.S. dollar, foreign currency translation is expected to negatively impact sales by ~5% to 6% versus the prior-year period. The acquisitions the Company made beginning in the second quarter of fiscal 2015 are forecast to contribute ~70 basis points to the Company's overall sales growth in its fiscal 2016 second quarter. Acquisitions are estimated to dilute earnings per share by ~$.01.
  • Co reaffirms guidance for FY16, sees EPS of $3.10-3.17 vs. $3.17 Capital IQ Consensus Estimate.
    • Net sales are forecasted to grow between 8% and 10% in constant currency. Reflecting the strength of the U.S. dollar, foreign currency translation is expected to negatively impact sales by ~4% to 5% versus the prior-year period. The accelerated retailer orders will affect the comparison between the fiscal 2016 and fiscal 2015 full year sales by ~2%. Net sales adjusting for the effect of the accelerated retailer orders are forecasted to grow between 6% and 8% in constant currency.