>>> US equities / ADRs:

US equities / ADRs:
- AWAY: Reports Q3 $0.24 v $0.21e, R$130.7M v $130Me; enters agreement to be acquired by Expedia in cash and stock equity value $3.9B; +21.7% afterhours
- SCSS: Reports Q3 $0.62 v $0.41e, R$374M v $356Me; +12.9% afterhours
- HABT: Reports Q3 $0.06 v $0.05e, R$58.6M v $57.5Me; +8.0% afterhours
- FLT: Reports Q3 $1.67 v $1.62e, R$419.8M v $429Me; +8.3% afterhours
- GDDY: Reports Q3 -$0.04 v -$0.09e, R$411M v $408Me; +7.6% afterhours
- FB: Reports Q3 $0.57 v $0.52e, R$4.50B v $4.39Be; +3.8% afterhours
- CTL: Reports Q3 $0.70 v $0.69e, R$4.6B v $4.55Be; reviewing strategic alternatives for global data centers; +1.6% afterhours
- PRU: Reports Q3 $2.40 v $2.43e, R$11.1B v $11.1Be; -0.1% afterhours
- RIG: Reports Q3 $0.88 v $0.67e, R$1.61B v $1.59Be; Announces $40M share repurchase program (3.5% of market cap); -0.5% afterhours
- HOLX: Reports Q4 $0.43 v $0.42e, R$703M v $692Me; -3.1% afterhours
- MRO: Reports Q3 -$0.20 v -$0.42e, R$1.32B v $1.40Be; -3.3% afterhours
- QCOM: Reports Q4 $0.91 v $0.86e, R$5.46B v $5.21Be; -5.3% afterhours
- WFM: Reports Q4 $0.30 (adj) v $0.35e, R$3.44B v $3.48Be; -6.2% afterhours
- CF: Reports Q3 $0.39 v $0.74e, R$927M v $924Me; -9.2% afterhours
- LCI: Reports Q1 $0.99 v $0.89e, R$106.4M v $104Me; -14.4% afterhours
- FEYE: Reports Q3 -$0.37 v -$0.45e, R$165.6M v $167Me; -14.2% afterhours
- GUID: Reports Q3 -$0.03 v -$0.05e, R$26.8M v $28.0Me; -21.5% afterhours

>>> Asian Update

Asian Mid-session Update: Shanghai Composite extending impressive gains; Gov Stevens maintains RBA stands ready to ease


***Economic Data***
- (ID) INDONESIA Q3 GDP Q/Q: 3.2% V 3.3%E; Y/Y: 4.7% V 4.8%E (matches slowest annual pace since 2009)
- (PH) PHILIPPINES OCT CPI M/M: 0.1% V 0.2%E; Y/Y: 0.4% V 0.4%E
- (TW) Taiwan Oct CPI Y/Y: 0.3% v 0.2%e; WPI Y/Y: -8.5% v -8.2%e

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +1.1%, S&P/ASX -1.2%, Kospi -0.3%, Shanghai Composite +2.7%, Hang Seng +0.2%, Dec S&P500 flat at 2,095

***Commodities/Fixed Income***
- Dec gold +0.4% at $1,110/oz, Dec crude oil +0.4% at $46.50/brl, Dec copper flat at $2.32/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 6.2 tonnes to 680.1 tonnes; lowest since Sept 23rd
- (CN) Platts: China oil demand grew 2% y/y in Sept
- JGB: (JP) Japan MoF sells ¥2.18T in 10-yr 0.4% JGBs; Avg yield: 0.318% v 0.336% prior; bid to cover: 2.80 v 3.03x prior
- (CN) PBoC to inject CNY10B in 7-day reverse repos (36th consecutive injection); Maintains neutral position this week v drained CNY25B prior

***Market Focal Points/FX***
- Shanghai Composite is building on yesterday's massive 4.3% jump - the biggest since mid-Sept - with another outsized 3% gains, taking the index to its highest levels since late August. Yesterday, the strength in China (particularly Hong Kong) were attributed to Shenzhen-HK connect being open before the end of the year, even though later reports indicated those comments had been made over 5 months ago. Today, investors are also cheering cross-straits meeting with Taiwan leaders potentially opening the door to more mainland investments higher up the value chain. Investors are also shrugging Q3 NPLs hitting record highs of 1.59%, along with mixed comments from MIIT acknowledging challenging conditions in China industrial sector while also estimating 2015 industrial production growth to be over 6% y/y.

- BOJ's early Oct meeting minutes help explain the policy hold at the more resent decision last week. Many BOJ members agreed the current easing has exerted intended effects, and that inflation continues to improve as expectations are rising on a whole. On the corporate front, Takata shares continue to plummet from its defective airbags scandal, as more mainstream automakers joined Honda in discontinued use of its products. Shares of Honda were softer as well after reporting H1 results overnight that missed consensus.

- RBA Gov Stevens followed up the central bank's "dovish hold" this week with similarly-tilted commentary. Stevens maintained that any new policy move would likely still be an easing, and that the RBA is not constrained by rising inflation. Moreover, he noted uncertainty over growth path in China and the extent of recovery in Australia property markets.

- AUD/USD hit session lows after the Stevens comments below 0.7130, down over 20pips, before seeing a modest bounce. USD/JPY was also in a 20pip range below 121.60, while EUR/USD consolidated a stab below 1.0850 in late US hours - the lowest level in about 3 months. Late in the US hours, Fed's Dudley agreed with Chair Yellen that the December meeting is 'live' for possible rate lift off, but also preferred to see more wage inflation. Fed vice chair Fischer was seemingly less dovish, noting there wasn't much evidence than inflation is too low.

***Equities***
US equities / ADRs:
- AWAY: Reports Q3 $0.24 v $0.21e, R$130.7M v $130Me; enters agreement to be acquired by Expedia in cash and stock equity value $3.9B; +21.7% afterhours
- SCSS: Reports Q3 $0.62 v $0.41e, R$374M v $356Me; +12.9% afterhours
- HABT: Reports Q3 $0.06 v $0.05e, R$58.6M v $57.5Me; +8.0% afterhours
- FLT: Reports Q3 $1.67 v $1.62e, R$419.8M v $429Me; +8.3% afterhours
- GDDY: Reports Q3 -$0.04 v -$0.09e, R$411M v $408Me; +7.6% afterhours
- FB: Reports Q3 $0.57 v $0.52e, R$4.50B v $4.39Be; +3.8% afterhours
- CTL: Reports Q3 $0.70 v $0.69e, R$4.6B v $4.55Be; reviewing strategic alternatives for global data centers; +1.6% afterhours
- PRU: Reports Q3 $2.40 v $2.43e, R$11.1B v $11.1Be; -0.1% afterhours
- RIG: Reports Q3 $0.88 v $0.67e, R$1.61B v $1.59Be; Announces $40M share repurchase program (3.5% of market cap); -0.5% afterhours
- HOLX: Reports Q4 $0.43 v $0.42e, R$703M v $692Me; -3.1% afterhours
- MRO: Reports Q3 -$0.20 v -$0.42e, R$1.32B v $1.40Be; -3.3% afterhours
- QCOM: Reports Q4 $0.91 v $0.86e, R$5.46B v $5.21Be; -5.3% afterhours
- WFM: Reports Q4 $0.30 (adj) v $0.35e, R$3.44B v $3.48Be; -6.2% afterhours
- CF: Reports Q3 $0.39 v $0.74e, R$927M v $924Me; -9.2% afterhours
- LCI: Reports Q1 $0.99 v $0.89e, R$106.4M v $104Me; -14.4% afterhours
- FEYE: Reports Q3 -$0.37 v -$0.45e, R$165.6M v $167Me; -14.2% afterhours
- GUID: Reports Q3 -$0.03 v -$0.05e, R$26.8M v $28.0Me; -21.5% afterhours

Notable movers by sector:
- Consumer discretionary: China Southern Airlines Co 600029.CN +8.2 (Chairman under probe); Alibaba Pictures Group 1060.HK +3.8% (acquisition); Asahi Group Holdings 2502.JP +4.8% (9-momth result); Japan Tobacco Inc 2914.JP +7.5% (9-month result)
- Consumer staples: Warrnambool Cheese & Butter WCB.AU +1.6% (H1 result, no interim div)
- Financials: Central China Real Estate 832.HK -0.6% (Oct result); CITIC Securities 6030.HK +3.7%, Haitong Securities 600837.CN +8.7% (sentiment)
- Industrials: Chongqing Changan Automobile Co 000625.CN +4.2% (Oct result); Beiqi Foton Motor Co 600166.CN +2.5% (awarded contracts); Samsung Heavy Industries 010140.KR -3.3% (revises Q3 result); Mazda Motor Corp 7261.JP +1.1% (H1 result); Fuji Heavy Industries 7270.JP +2.3% (H1 result); Virgin Australia VAH.AU -1.0% (Q1 result, guidance)
- Technology: Toshiba Corporation 6502.JP -4.0% (H1 result speculation); Xero XRO.AU +1.9% (H1 result)
- Materials: Mitsubishi Corp 8058.JP -5.4% (H1 result); Sojitz 2768.JP +2.7% (H1 result)
- Energy: Idemitsu Kosan Co 5019.JP -3.3% (H1 result)
- Telecom: Softbank Corp 9984.JP -1.2% (H1 result); China Unicom 600050.CN +10.0% (MIIT comment)

>>> US After Hours Summary: IO +34.6%, PCOM +21%, CDXS +18.4%, F


After Hours Summary: IO +34.6%, PCOM +21%, CDXS +18.4%, FB +3.6%, XENT -26.5%, GUID -21.5%, LCI -14.5% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: IO +34.6%, AWAY +21.1%, PCOM +21%, CDXS +18.4%, SD +14.4%, AHS +13.1%, GDDY +13%, SCSS +12.9%, CCRN +12.1%, MHGC +10.5%, BOJA +8.8%, FLT +8.3%, MRIN +8.1%, MELI +7.5%, TXMD +7%, HABT +7%, SEDG +6.9%, HDSN +5.9%, POWR +5.8%, LNTH +5.7%, BRKR +5.7%, MCHX +5.6%, ACAS +5.2%, OSUR +4.9%, COHR +3.8%, XPO +3.8%, FB +3.6%, OME +3.5%, KW +2.9%, AHT +2.2%

Companies trading higher in after hours in reaction to news: IO +34.6% (Board authorized $25 mln share repurchase; co also reported earnings), AWAY +21.1% (to be acquired by Expedia (EXPE) for $38.31 per share in cash, or ~$3.9 bln; co also reported earnings), SD +14.4% (acquired the assets of EE3 for $190 mln in cash, adds 136,000 largely contiguous net acres and multiyear niobrara shale drilling inventory in North Park Basin, Colorado; co also reported earnings), NRX +13.3% (announced successful results from a preclinical toxicity study of intravenous Pyridorin), MHGC +10.5% (confirmed details of new strategic plan to create long-term value and is in the process of engaging a new President and CEO; co also reported earnings), ETRM +10.3% (presented two year follow up results from the ReCharge Study of vBloc Neurometabolic Therapy in obesity), ADSK +3.7% (Sachem Head Capital Management discloses 5.7% active stake in 13D filing; Sachem Head intends to engage with management), GLUU +3.2% (Integrated Core Strategies (Millennium International Management) discloses 5.2% passive stake in 13G filing)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: XENT -26.5%, GUID -21.5%, LCI -14.5%, CSLT -14.2%, FEYE -13.8%, AVG -12.8%, FRSH -12%, ACLS -9.2%, FUEL -8.2%, G -7.4%, EPAM -6.9%, TUMI -6.2%, WFM -6.2%, ENVA -5.8%, QCOM -5.1%, PDLI -4.7%, ALR -4.4%, ZUMZ -4.1%, RLYP -3.9%, XNPT -3.3%, MRO -3.3%, HOLX -3.1%, RGR -2.8%, PEIX -2.7%, ETP -2.2%, TWO -2.2%, VVUS -1.9%, HDP -1.8%, BKCC -1.7%, SPPI -1.1%

Companies trading lower in after hours in reaction to news: AVG -12.8% (announced that John Little will transition from his role as Chief Financial Officer; co also reported earnings), TVPT -3.6% (announced an underwritten offering of 6 mln common shares; 850K shares to be sold by the company, and 5.15 mln shares to be sold by selling stockholders), RLYP -2.6% (filed for $300 mln mixed securities shelf offering), SABR -2.5% (announced secondary public offering of 30 mln shares of common stock by existing stockholders; co will repurchase ~$100 mln of the 30 mln shares from the underwriter), VLRS -0.7% (reported October Available Seat Miles rose 28.9% year over year)

>>> Facebook beats by $0.05, beats on revs --> +4% After Hours

Facebook beats by $0.05, beats on revs
* Reports Q3 (Sep) earnings of $0.57 per share, $0.05 better than the Capital IQ Consensus of $0.52; revenues rose 40.4% year/year to $4.5 bln vs the $4.37 bln Capital IQ Consensus.
- Daily active users (DAUs)- DAUs were 1.01 billion on average for September 2015, an increase of 17% year-over-year.
- Mobile DAUs- Mobile DAUs were 894 million on average for September 2015, an increase of 27% year-over-year.
- Monthly active users (MAUs)- MAUs were 1.55 billion as of September 30, 2015, an increase of 14% year-over-year.
- Mobile MAUs- Mobile MAUs were 1.39 billion as of September 30, 2015, an increase of 23% year-over-year.
- Mobile advertising revenue- Mobile advertising revenue represented approximately 78% of advertising revenue for the third quarter of 2015, up from 66% of advertising revenue in the third quarter of 2014.

>>> Marathon Oil beats by $0.20, misses on revs; sees FY15 production at high en

Marathon Oil beats by $0.20, misses on revs; sees FY15 production at high end of range 

* Reports Q3 (Sep) loss of $0.20 per share, excluding non-recurring items, $0.20 better than the Capital IQ Consensus of ($0.40); revenues fell 55.5% year/year to $1.32 bln vs the $1.38 bln two analyst estimate. 
* The Company is tightening its full-year 2015 E&P production guidance range, resulting in a new range of 380,000 to 390,000 net boed. Full-year production guidance for OSM was narrowed to 40,000 to 45,000 net boed. Full-year 2015 guidance for the total Company production growth rate is 7 percent year over year, at the upper end of the previous range of 5 to 7 percent.
* "Last week we announced a reduced quarterly dividend, which is expected to increase annual free cash flow by more than $425 million, and we lowered our 2015 capital, investment and exploration program to $3.1 billion. In addition, based on our current outlook and preliminary plan discussions, we would anticipate a total Company 2016 program of up to $2.2 billion, subject to Board approval, which would give us the flexibility to deliver 2016 annual average production in the U.S. resource plays flat to 2015 exit rate."

>>> Tenaris misses Q3 estimates; sees weak Q4

Tenaris misses Q3 estimates; sees weak Q4

* Reports Q3 (Sep) loss of $0.30 per share, $0.35 worse than the two analyst estimate of $0.05; revenues fell 35.6% year/year to $1.56 bln vs the $1.65 bln Capital IQ Consensus, with our Tubes sales 57% lower in North America and 16% in the rest of the world, reflecting continuing activity reductions, customer inventory adjustments and declining prices for our products. During the quarter, we had a particularly low level of sales of premium OCTG products in the Middle East and other regions around the world.

* "We now expect global demand for OCTG products to fall 36% this year to 11.3 million tons, reflecting lower drilling activity and ongoing inventory reductions. In 2016, demand should show a rising trend compared to the current level, as inventory reductions, particularly in the Middle East, come to an end. For the fourth quarter, we expect our revenues and EBITDA margin to remain weak, with average selling prices continuing to adjust downwards and shipments of premium products and utilization of production capacity remaining at a low level. Going into 2016, we expect to see a gradual recovery in our OCTG shipments and sales in the Middle East and in other regions during the year. Margins should also benefit from higher shipments, with more efficient use of production capacity, and the impact of current low raw material costs."

>>> US Close Dow-0.28% S&P -0.35% Nasdaq -0.05% Russell -0.10%

Closing Market Summary: Energy Sector Leads Stocks Lower

The stock market snapped its two-day streak on Wednesday, but the midweek pullback was fairly modest in scope. The S&P 500 shed 0.4% while the Nasdaq Composite (-0.1%) outperformed, settling just below its flat line.

Equity indices began the day on a modestly higher note, but the slight early strength faded quickly, sending the major averages into the red during the opening hour. In addition, investors heard from Fed Chair Janet Yellen who addressed the House Financial Services Committee to discuss regulation and supervision of financial institutions; however, the Q&A portion drifted towards questions about the upcoming December policy meeting with Fed Chair Yellen reiterating that a rate hike could happen in December if economic data shows improvement.

Eight sectors ended the day in negative territory with energy (-1.0%) spending the bulk of the session behind the remaining nine groups. It is worth noting that today's slide followed a 5.0% gain over the past two days and the sector also had to contend with selling in the commodity market where crude oil fell 3.4%, ending the pit session at $46.32/bbl.

Unlike energy, the remaining decliners posted slimmer losses than 0.7%, but relative weakness among the likes of consumer discretionary (-0.6%) and health care (-0.5%) kept the market in negative territory until the close.

The discretionary sector underperformed with apparel retailers ending mostly lower, which overshadowed a better than expected earnings report from Michael Kors (KORS 42.58, +3.26). Shares of KORS spiked 8.3% after better than expected results and upbeat fiscal-year 2016 guidance overshadowed a cautious outlook for Q3. Elsewhere in the sector, media names also lagged even though CBS (CBS 47.96, -0.28) and Time Warner (TWX 72.19, -5.11) reported better than expected results.

On the upside, the technology sector (+0.1%) outperformed, spending the trading day in the neighborhood of its flat line, which prevented a larger pullback from taking shape. Large cap components ended the day on a mixed note while chipmakers outperformed with the PHLX Semiconductor Index climbing 0.3%.

Similar to stocks, Treasuries retreated with the 10-yr yield rising two basis points to 2.23%.

Today's participation was ahead of average as more than 900 million shares changed hands at the NYSE floor.

Economic data included ADP Employment, Trade Balance, and ISM Services:

  • The ADP National Employment Report revealed that employment in the nonfarm private business sector rose by 182,000 in October while the consensus expected a reading of 180,000
    • The September reading was revised down to 190,000 from 200,000
  • The U.S. trade deficit narrowed in September to $40.80 billion from an upwardly revised $48.00 billion (from -$48.30 bln) in August while the consensus expected a reading of $43.00 billion
    • Notably, the September trade deficit was not that far off from the BEA's estimate of -$40.60 billion that was embedded in the advance Q3 GDP report. Accordingly, revisions to net exports shouldn't have much bearing on the second estimate for Q3 GDP
    • The improvement in September was owed to imports being $4.20 billion less than August imports and exports being $3.00 billion more than August exports
  • The ISM Services index jumped to 59.1 in October from 56.9 in September while the consensus expected a reading of 56.6
    • The October reading was the second-highest mark this year, preceded only by the 60.3 reading in July, which was the highest level since August 2005

Tomorrow, weekly Initial Claims (consensus 262,000) and preliminary Q3 Productivity/Unit Labor Cost data will be reported at 8:30 ET.

  • Nasdaq Composite +8.6% YTD
  • S&P 500 +2.1% YTD
  • Dow Jones Industrial Average +0.3% YTD
  • Russell 2000 -1.1% YTD

WSJ : Facebook Director Andreessen Sells 15% of His Stake

Facebook Director Andreessen Sells 15% of His Stake

Sale nets nearly $31.9 million

Facebook Inc. director Marc Andreessen sold roughly 15% of his stake in the social network in recent days, netting nearly $31.9 million, according to a securities filing late Tuesday.

Mr. Andreessen sold 309,464 shares held in two trusts Friday and Monday, according to the filing. The sales came just days before Facebook is scheduled to report third-quarter financial results Wednesday.

Mr. Andreessen, who has been on Facebook’s board since June 2008, didn’t respond to an email requesting comment. A spokesman for Andreessen Horowitz, the venture-capital firm co-founded by Mr. Andreessen, declined to comment on Mr. Andreessen’s personal investments.

A spokeswoman for Facebook declined to comment.

Mr. Andreessen sold the shares under a prearranged trading plan, according to Tuesday’s filing. He sold the shares in nine transactions at prices ranging from $101.96 to $104.22 per share. Facebook shares closed Tuesday at $102.58, near its 52-week high of $105.12.

As of March 31, Mr. Andreessen owned roughly 1.68 million Class A shares and had claim over 379,429 Class B supervoting shares that were part of Facebook’s 2014 acquisition of Oculus VR, according to Facebook’s most recent proxy statement. Andreessen Horowitz had been an investor in Oculus.