>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: IPAR -6.8%, CVA -6.4%, URI -5.6%, SHPG -3.5%, CAT -3.5%, VAC -3%, PLCM -2.6%, CYS -2.6%, AGEN -2.6%, CAB -2.6%, POOL -2.4%, AXP -2.1%, QCOM -1.9%, ( announces strategic realignment plan), TSCO -1.9%, TCBI -1.5%, DFS -1.3%, DFRG -1.3%, MMM -1.1%, DLB -1%, XLNX -1%, DNKN -0.9%, ATTU -0.9%,CMCSA -0.8%

M&A news: MYL -1.8% (Bloomberg discusses that Mylan (MYL) independent foundation wants to stop hostile takeover by TEVA), TEVA -1.3%

Other news: TEX -2.5% (in symp with CAT), JOY -1.6% (in symp with CAT), PEGI -1.1% (prices 5,435,000 shares of common stock at $23.00 per share), ATTU -0.9% (filed for $50 mln mixed securities shelf offering; also filed for offering of ~850k ordinary shares for selling shareholders), DE -0.8% (in symp with CAT)

Analyst comments: HTZ -2.2% (downgraded to Underweight from Equal-Weight at Morgan Stanley), WDC -1.3% (downgraded to Equal-Weight from Overweight at Morgan Stanley), BT -0.9% (downgraded to Underperform to Neutral at Macquarie), QLGC -0.9% (downgraded to Equal-Weight from Overweight at Morgan Stanley)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: UCTT +24.7%, CARA +19.9%, VGGL +16.3%, FTK +14.2%, ASPS +13.5%, SNDK +12.6%, AFOP +12.3%, AFOP +12.3%, LOGI +11.9%, FTNT +11.1%, CRUS +10.6%, MRGE +10.1%, STM +7.5%, CS +7.4%, CY +6.3%, INFN +6%, FFIV +5.8%, CLB +5.8%, LUV +4.6%, USG +4.5%, AOS +4.4%, LVS +3.7%, ZHNE +3.4%,VRX +3.4%, DWCH +3.3%, GPI +3.2%, CVTI +2.8%, UA +2.8%, BMY +2.8%, KKR +2.7%, RTN +2.6%, FBHS +2.5%, NEM +2.3%, UAL +2.3%, MLNX +2.2%, EFX +1.7%, HNI +1.7%, UL +1.7%, DOW +1.7%, CAKE +1.6%, LLY +1.5%, SCSS +1.4%, OII +1.4%, PDS +1.4%, IMAX +1%, HBAN +0.9%

M&A news: MU +2.4% (discusses comments from Holdings exec who says company is still in takeover talks with MU), PSO +2.2% (confirmed that it is in advanced discussions regarding the potential disposal of FT Group)

Select metals/mining stocks trading higher: IAG +6.3%, AUY +4.2%, GFI +4.1%, CLF +2.8%, AU +2.8%, GG +2.5%

Other news: ITEK +60.6% (announces the Phase 3 development strategy of Trabodenoson), CUR +10.1% (announces that a US District Court has dismissed StemCells' (STEM) patent infringement case with prejudice), CI +5.1% (WSJ reporting that co is close to being acquired by Anthem (ANTM) for ~$187 per share), PACD +3.9% (discloses updated 2015 guidance in July investor update), CLBS +3.2% (receives notice of an award from the National Eye Institute of the National Institutes of Health for a project to investigate 3D retinal constructs for vision restoration in patients with age-related macular degeneration), WYNN +2.7% (following LVS results), SURG +2.6% (Synergetics Announces an Early Renewal of the Supply Agreement With Stryker ), GTE +2.6% (announced normal course issuer bid; co would be able to purchase for cancellation up to approximately 5% of its issued and outstanding shares of common stock for a one year period at prevailing market prices), SRPT +2.5% (announced New England Journal of Medicine publication of Phase 1 data of Marburg drug candidate AVI-7288; no clinical or toxicologic safety concerns), CUDA +2.3% (following FTNT / FFIV results), MGM +2% (following LVS results), ACFC +1.3% (disclosed receipt of a written notice of termination of the Supervisory Agreement with the Board of Governors of the Federal Reserve System)

Analyst comments: ARMH +3.7% (upgraded to Buy at Charles Stanley), EMC +1% (upgraded to Outperform from Market Perform at Wells Fargo
)

>>> FTNT; Fortinet: Color on Qtr




Fortinet: Color on Qtr (42.30)

  • FBR notes FTNT delivered eye-popping June quarter results as the company handily beat the Street on the top line, bottom line, and billings fronts with major strength from the enterprise, and on the heels of a string of robust quarterly performances, with the company showing no signs of slowing its increasing product/service proliferation in the fast-growing next-generation cybersecurity arena. Fortinet also gave September and FY15 top-line/billings guidance that were above expectations, as its sales force ramp (coupled with a "white-hot" cybersecurity spending environment) is leading Fortinet to capitalize on penetrating further at existing customers and adding new ones. Firm is maintaining Outperform and raising its tgt to $52 from $44.
  • Wunderlich Securities notes it is increasing tgt to $56 from $48 following a strong 2Q print in which the company outperformed across all major metrics including: revenue, billings, EPS, cash flow, and operating margin. Most notably, FTNT produced 40% billings growth, which outpaced revenue growth at 30%. This is a strong positive indicator of future growth and visibility.
  • Topeka Research notes, while FTNT is certainly on a roll as the decision to bite the bullet on margin expansion is paying off, it maintains Hold rating and raise tgt to $46 from $39. The question is whether 2016 is another "investment" year. 
  • Needham Research reiterates Buy rating following a strong revenue "beat" in JuneQ and a material increase in CY15 guidance. Firm believes the franchise is benefiting from overall strong secular IT spending on network security, which also benefits other coverage names PANW, CHKP, and IMPV. Firms recent upgrade was focused on the "change in perception" of FTNT that we detect in the field, going from UTM "well rounded player" to a high-end, high-performance firewall in the Corporate Datacenter. Needham reiterates its Buy rating and raises tgt to $54 from $48. 
Shares of FTNT are trading up approx 11%.

>>> Sika employee representatives are requiring assurances of Saint-Gobain

Sika employee representatives are requiring assurances of Saint-Gobain

Bad Urach (AWP / SDA) - The European Works Council of the building materials manufacturer Sika Zuger has turned with an open letter to Saint-Gobain CEO Pierre-André de Chalendar. This call for the employees' representatives binding commitments for employees in the event of a takeover of Sika.
The council expresses its concern about a possible reduction of jobs in the letter. De Chalendar have repeatedly tried to portray the advantages of a takeover, citing, in particular on the use of synergies, the workers' representatives wrote in the letter, which was published on Thursday, and thus one day before the Extraordinary General Meeting of Sika.
"It is our fear that those synergies can only be achieved through the loss of jobs and ultimately be to the detriment of workers," wrote the council. The Council therefore calls for commitments by Saint-Gobain, that in the first three years after the acquisition, employment for all locations is ensured and the existing wage structure and the respective location-based social services are not impaired.
The council asks the Saint-Gobain CEO to relate to the demands clear and binding position in writing.
Against the takeover
Further, the council feared but also that parts of Sika could be spun off and sold to compensate for the high investment costs of the acquisition.
"Because of these unresolved issues for us, we remain of the opinion that it would be for Sika and its employees the best solution is to continue to exist as an independent Swiss company," provide the workers' representatives clearly. Therefore, the Council continues to be the search for alternatives on the part of the Sika Board of Directors in favor.
In order to take over the control of Sika with its French competitor Saint-Gobain rages a fierce dispute, which is now being fought through legal means. In December, the Sika-heirs had decided its shareholding in Sika and thus the majority of CHF 2.75 billion to Saint-Gobain to sell. By contrast, minority shareholders, the management and the Board of Directors of the group vehemently.

(UBS) China by the Numbers (July 2015) - see attached


* China's headline GDP growth stayed flat at 7%y/y in Q2, as its sequential growth picked up from Q1's
~5%q/q (annualized) to +7%, helped by stronger services sector activities, underpinned by both a buoyant
equity market and strong recovery in property sales.
* Overall credit growth stabilized in June, as higher new corporate loans, rebounding corporate bond
issuance and a pick-up in local bond issuance more than offset soft shadow banking credit growth.
* China’s H2 growth outlook remains challenging. While infrastructure investment may improve with
additional policy and funding support in Q3 and a modest export recovery, it will unlikely offset the
continued deceleration in property construction and softer growth of financial services after recent market
gyrations. We expect GDP growth to stabilize in sequential terms in Q3 but fade in Q4, and see y/y growth
decelerating in H2. We maintain our 2015 GDP growth forecast of 6.8%.