>>> UPS on Confrerence Call; Stock trading at $99.51 in pre-market

UPS on Confrerence Call; Stock trading at $99.51 in pre-market

  • Expect base rate to be up 3%.
  • International revenue expected to be up 2-3%.
  • 2015 EPS guidance remainsunchanged at 6-12%.
  • Ground yields were up 3%.
  • Says peak season pricing strategy is already in place.
  • Did not renew some lower yielding customers; helped improve margins.
  • Says a lot of the West Coast port issues have been cleaned up.
  • April saw stable improvements in LTL; expect 3% growth moving forward; does not expect any changes barring any labor disputes.
  • Seeing improvement in inefficiencies in European build out.
  • Expects to see review of FDX, TNTEY deal.
  • Current hedge strategy is protected until the end of 2016; strategy is to use a collar approach to protect currency while business grows.

>>> AMARIN -7% Pre-MArket : Received complete response letter from FDA regarding

Received complete response letter from FDA regarding Vascepa - filing

Amarin Corporation plc announced today receipt of the anticipated Complete Response Letter (CRL) from the U.S. Food and Drug Administration (FDA) regarding its Vascepa(icosapent ethyl) capsules ANCHOR trial supplemental New Drug Application (sNDA). Vascepa remains FDA approved for use as an adjunct to diet to reduce triglyceride (TG) levels in adult patients with severe (>500 mg/dL) hypertriglyceridemia. Current Vascepa labeling remains unchanged. The ANCHOR sNDA sought to expand approved Vascepa labeling to include use as an adjunct to diet to reduce TG levels in adult patients on statin therapy with mixed dyslipidemia (one or more lipid disorder) and triglyceride levels from 200 to 499 mg/dL, the ANCHOR population.As previously guided by Amarin, the CRL has been expected in recent months following Amarins determination to not further appeal the October 2013, FDA ANCHOR Special Protocol Assessment (SPA) agreement rescission after the reconsideration and denial of the rescission appeal at three levels of increasing authority within the FDA. The originally assigned Prescription Drug User Fee Act, or PDUFA, goal date for the completion of the ANCHOR sNDA was December 20, 2013.In the CRL, FDA acknowledged that Vascepa yielded a treatment difference showing reduced TG levels compared to placebo in patients treated in the ANCHOR study. The clinical rationale for reducing serum TGs with Vascepa and modifying other lipid/lipoprotein parameters shown in ANCHOR among statin-treated patients with TGs 200-499 mg/dL is to reduce cardiovascular risk. FDA concluded that, for regulatory approval purposes, there are insufficient data at this time to support a drug-induced change in serum TGs as a surrogate for reducing cardiovascular risk in the ANCHOR population. FDA did not determine that the drug-induced effects of Vascepa, which go beyond TG-lowering, would not actually reduce cardiovascular risk in this population. Amarin had proposed to FDA multiple alternative indications, data presentations, disclaimers and other regulatory pathways to approval under the sNDA, but FDA determined not to approve label expansion reflecting the ANCHOR clinical trial efficacy data at this time. Safety data from the ANCHOR study remains in the currently approved label for Vascepa.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: TCS -25.3%, MDCA -14.8%, IPHS -9.9%, AMKR -8.1%, AI -6.6%, WHR -6.2%, UTHR -5.9%, ALSN -5.8%, OLN -5.4%, PHG -4.8%, COH -4.7%, PRCP -4.3%, TXT -3.8%, HMC -3.4%, CUDA -3.3%, YNDX -3.3%, CHRW -2.8%, AUDC -2.8%, OSTK -2.3%, ORAN -2.1%, AGNC -1.6%, CHA -1.5%, SWFT -1.4%, CR -1.4%, ABX-1.2%, F -1.2%

Select EU financial related names showing weakness following Commerzbank's capital raise: DB -2.8%, CS -1%, HSBC -0.8%

Other news: UNXL -37.2% (disclosed that on April 22, 2015, through its Uni-Pixel Displays subsidiary exercised its right to terminate that certain Manufacturing Facility Installation with Eastman Kodak Company), WBAI -5.7% (confirms it currently is not generating any revenue and that as of the date of the filing, there is no clear indication how long its temporary suspension will last),AMRN -4.7% (discloses receipt of 'anticipated' Complete Response Letter from the FDA regarding its Vascepa), SHLM -3.8% (commences $110 mln offering of Cumulative Perpetual Convertible Special Stock), COR -2.5% ( announces the sale of 4,500,000 shares of its common stock by investment funds affiliated with The Carlyle Group), PRTK -1.7% ( announces proposed public offering of $60 mln of its common stock), LEAF -1.7% (announces public offering of ~22.73 mln shares of common stock; ~3.8 mln shares being offered by selling stockholders and ~18.9 mln shares being offered by the company), GWPH -1.5% (proposed public offering of 1.25 mln ADS shares), ZGNX -1.4% (appointed Stephen Farr, Ph.D as new CEO of Zogenix effective immediately)

Analyst comments: MPEL -2% (downgraded to Underweight from Equal-Weight at Morgan Stanley), DISCA -1.8% (downgraded to Sell from Neutral at UBS; initiated with a Underperform at Credit Agricole), CPRT -1.7% (initiated with a Reduce at Sun Trust Rbsn Humphrey), ERIC -1.1% (downgraded to Neutral from Buy at Goldman)

>>> EU to impose anti-dumping duties on electrical steel imports - RTRS

EU to impose anti-dumping duties on electrical steel imports - RTRS
28-Apr-2015 13:27The Commission will present its proposal to EU member states this week and by May 14 will put in place the duties, which are provisional pending the outcome of an investigation due to end in November. Normally such duties would then continue for five years.

--> TKA higher, barely only name to move with ArcelorMittal

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: RTEC +12.9%, VDSI +11.9%, GIG +10.3%, (thinly traded), RCII +7.2%, MTL +5.6%, MRK +4.4%, ACPW +4.2%, DAC +4%, SIMO +3.6%, WNC +2.9%, (light volume), CMP +2.7%, TOT +2.5%, CNC +2.1%, BP +2.1%, SAN +2.1%, AVB +2%, AET +1.9%, PROV +1.9%, BMY +1.7%, AAPL +1.6%, IIVI +1.6%, UHS +1.5%, MDXG+1.5%, VLO +1.5%, CNX +1.4%, ALLY +1.4%, BSMX +1.1%, WYN +1%

Other news: NLST +22.8% (announces it has entered into a Letter of Intent with LG Electronics to jointly work on a HyperVault Mobile Memory Controller ), VRML +17.7% (announces expanded medical policy coverage for OVA1 Test), KEG +12.1% (still checking), AEZS +12% (Data Safety Monitoring Board Recommends Continuation of Phase 3 Study of Zoptarelin Doxorubicin in Advanced Endometrial Cancer), DGLY +8.3% (in response to the riots in Baltimore), AGEN +7% (publishes study showing GlaxoSmithKline's (GSK) shingles vaccine containing Agenus' QS-21 stimulon adjuvant provides over 97% protection in people over the age of 50), IDN +6.8% (awarded a $300K contract by the U.S. Army Corps of Engineers), PRAN +5.3% (PBT2 recommended for Orphan Designation in Europe), NBG +4.6% (cont vol surrounding Greece default), MRK +4.5% ( Merck announces the trial evaluating cardiovascular outcomes with Sitagliptin Met Primary Endpoint), CVEO +3.5% (still checking), MANT +3% (awarded two IDIQ contracts totaling $7.2 bln to support the U.S. Army INSCOM), TASR +2.6% (in response to the riots in Baltimore; also announced it was selected by the British Transport Police for a body-worn video proof of concept), SYMX +2.2% (cont momentum), VVUS +2.1% (Qsymia capsules will be available on the Sam's Club Extra Value Drug List), FAC +1.1% (still checking), RDS.A +0.8% (in symp with BP and TOT)

Analyst comments: WIN +2.6% (upgraded to Buy from Neutral at Nomura), MELI +2.6% (upgraded to Outperform from Neutral at Credit Suisse), FCX +2.4% (upgraded to Overweight from Equal-Weight at Morgan Stanley), AMAT +1% (resumed with a Buy at Goldman), VIAB +0.6% (initiated with a Buy at Credit Agricole)

>>> Apple: Color on Quarter

Apple: Color on Quarter (132.65)
  • Brean Capital raises their AAPL tgt to $170 from $160; they believe Mar Q results are proof positive that their Buy thesis has teeth; specifically, they continue to believe that Street numbers are materially low through '17. Fundamentally speaking, they believe co stands to deliver material EPS upside from 1) iPhone ships through '17, 2) favorable GM from both iPhones and iPhone mix, and 3) materially more Opex $ leverage through at least '16 as AAPL realizes the benefits from the recent iPhone 6 and iWatch investment cycles. AAPL should continue to return material capital over the next few years that can both catalyze and provide a floor under the stock.
  • FBR Capital notes Apple delivered a solid March quarter/June guidance accompanied by its massive capital return program expansion to $200 billion (from $130 billion previously), and we believe the company remains well positioned to further capitalize on fertile growth areas (e.g., Apps, Apple Pay, etc.), with Apple Watch, its solid iPhone 6 product cycle, and China representing major growth opportunities over the coming quarters/years.
  • RBC Capital Mkts raises their AAPL tgt to $150 from $142. Mar-qtr results came in materially ahead of consensus and buyside expectations driven by robust iPhone demand. AAPL conservatively guided June-qtr inline with expectations. They see i) sustained momentum with iPhone despite the seasonal lull (~20% of install base has migrated), ii) room for gross-margin expansion vs. initial Jun-qtr guide, iii) Revamp and uptick in AppleTV (June-15 likely), and iv) Apple Watch contributions starting June-qtr but likely accelerate through CY15
  • Mizuho raises tgt to $125 from $115. While they are impressed by the company's performance in 2Q and its potential to keep expanding its reach in emerging markets, they remain on the sidelines due to potential headwinds. They think iPhone sales are likely to decelerate meaningfully over the next few quarters creating headwinds for the stock. Although Watch sales are likely to ramp, they are unlikely to offset the void left by slowing iPhone sales and they will likely be margin dilutive.
  • Stifel maintains Buy rating and $150/sh. target following Apple's strong reported F2Q15 results and in-line F3Q15 outlook; their forward revenue estimates remain relatively unchanged and EPS moves slightly higher to reflect GM% increase and larger share repo authorization.
  • Oppenheimer notes Apple delivered another strong quarter, beating consensus with better-than-expected iPhone sales. The company saw strength in emerging markets, where sales grew 58% Y/Y. They continue to believe Apple will gain share as it's in the middle of its best product cycle driven by its compelling ecosystem. They raise FY15/FY16E EPS from $8.73 and $9.76 to $8.94 and $10.37, respectively, based on updated iPhone sales estimates and adjustments for the new share repurchase program. They take up iPhone estimates, but admittedly, they see much slower unit y/y growth. Thus they assign a lower multiple as they believe investors will have to be comfortable with slower growth with near-perfect execution; $155 tgt
  • Maxim notes iPhone channel inventory commentary implies management expects, at best, a 27% q/q decline in iPhone unit sell-through, worst ever. Update to capital return program is simply an extension of current rate from end of CY15 to end of CY17. Projecting a 3% y/y decline in FY16 revenue due to extending iPhone lifecycles in mature markets and digestion period in Greater China; Hold.
  • Piper Jaffray raises target to $162 from $160
  • Cantor target to $195 from $180
  • Susquehanna to $155 from $150
  • BMO to $145 from $135
  • Nomura to $133 from $129 -- time for stock to take a breather
  • Baird to $155 from $135
  • Apple (AAPL) was above $136 one hour ago but is now up ~2% near $135 at an all time high in the premarket; market cap is near ~$790 bln.

>>> AK Steel misses by $0.04, reports revs in-line

AK Steel misses by $0.04, reports revs in-line

Reports Q1 (Mar) loss of $0.28 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus Estimate of ($0.24); revenues rose 26.6% year/year to $1.75 bln vs the $1.74 bln consensus.
  • "Shipments and selling prices in the carbon steel spot market were significantly impacted during the first quarter by the tidal wave of what we believe were unfairly traded foreign steel imports...Despite the negative effects of imports on AK Steel's results, the company experienced strong sales in automotive markets and generated positive adjusted EBITDA of $57.5 million."

>>> Greece 10y @ 10.85 vs 11.4% this morning...Greeks Banks higher...Mkt lower

As we see less tension in Greece through differents indicators (10y yield, Banks) European market continue to Underperform...it looks like Greek issue is not waht is worrying investors in Europe...

RUB traded on lower levels on the 16th (~$49.5)and back on Friday (~$50)...trading above the $52 level now so the move is not huge...

SPX has only outperfprmed europe by 45 on the last 2 weeks...


Oil is trading higher for the last 2 weeks...


Earnings all across look pretty ok...


Only reason for market to underperform will be a rate hike in the US...but economists have cooling down expectation...expectation of a surprise move could be the catalyst for market to make a pause..

I continue to be pretty bullish and think that the market could trade higher...

M&A is still an important catalyst for European market to continue to perform...

>>> Franklin Electric misses by $0.02, misses on revs; guides Q2 EPS below conse

Franklin Electric misses by $0.02, misses on revs; guides Q2 EPS below consensus

Reports Q1 (Mar) earnings of $0.32 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.34; revenues fell 2.5% year/year to $225.7 mln vs the $240.23 mln consensus.
  • Most of the factors that contributed to our Q1 2015 operating results will remain with us in the second quarter. We believe the impact of foreign currency translation will lower our Net Sales and Operating Income by about 8% when compared to Q2 of 2014, and, the continued impact of lower oil and gas prices will reduce sales an additional 3%."
  • Further, unfavorable early season weather and higher than normal inventories in regions of the U.S. will continue to dampen its domestic ground water business. Offsetting these headwinds, are strong organic growth in many of its developing region markets, and, the pricing actions and fixed costs controls that the co has put in place
  • Co issues downside guidance for Q2, sees EPS of $0.54-0.58 vs. $0.59 Capital IQ Consensus Estimate.