>>> What to look at today - 6th November 2014

US Market Closed Higher, marking record high for S&P 500, the dollar strength did not get in the way of a rally in crude oil. Energy was up 2.0% to $78.73/bbl with an intraday boost after reports of a diesel pipeline explosion in Saudi Arabia. However,
follow-up headlines indicated the pipeline did not explode, but caught fire during maintenance work. Energy sector moved higehr on that..materials sector (+0.9%) outperformed while financials (+0.6%) and industrials (+0.6%) caught up to the S&P 500 during the final hour of the session. For its part, technology (+0.3%) was limited to a small gain as large cap names lagged...countercyclical sectors, consumer staples (+0.7%) and utilities (+2.3%) displayed strength while the telecom services sector (+0.2%) ended little changed. Consumer staples were underpinned by better mthan expected earnings from Mondelez (MDLZ 37.15, +2.12) while utilities rallied with help from Duke Energy (DUK 83.50, +1.27)...volume were ahead @ 770mil sahres ....VIX @ 14.17 -4.84%...US After : PLNR +48.7%, NDLS +10.5%, DATA +9.8%, TSLA +7.2%,SZYM-20.6%, TXTR -17.6%, Z -8.4% following earnings/guidance...Forex was main catalyst in Asia with Few news out except Lenovo numbers...Nikkei -0.86%...Hang Seng -0.02% Shanghai +0.15%

Eur$ 1.2518 S&P -0.20% EuroStoxx -0.26% FTSE -0.05% DAX -0.27% SMI -0.11%

Macro
- China Unlikely to Cut Overall Rates Next Yr: Business News
- Portugal Says Economic Growth Still Weak, Reforms Must Continue

Keep an eye on :
- ADS GY : Adidas 3Q Oper. Profit Beats Ests., Confirms 2014 Outlook
- AM FP : Dassault CEO Says India Rafale Deal to Be Done by March: Reuters
- ANDR AV : Andritz 3Q Net Income EU56.9m vs EU31.9m y/y
- BA/ LN : Rumor BAE Systems $1.7b F-16 Deal With S. Korea Canceled: Reuters, Comment this morning decision not made
- BEI GY : Beiersdorf 3Q Ebit Misses Ests, Confirms 2014 Outlook
- BMPS IM : Paschi Approves Capital Plan, Seeks EU2.5b in Rights Offering
- BMW GY : Brillance (1114 HK) -4.26%...Stock Dwg, Analyst see slowdown {NSN NEJNCQ6K50XZ <go>}
- ByW6 GY : BayWa 3Q Sales Beat Ests., Ebit Misses
- CAP FP : Cap Gemini 3Q Sales Rise; Confirms 2014 Outlook
- CBK GY : Commerzbank 3Q Net Income EU225m; Est. EU185m
- CGG FP : CGG 3Q Net Loss $116m; Takes $64m Charge on Ebit Line
- ACA FP : Credit Agricole 3Q Net Income Rises 4.1%, Beats Estimates. Not Planning Italian Banking Acquisitions: CEO
- ACA FP : Credit Agricole Met With U.S. Authorities Over OFAC Probe: CEO
- DELB BB : Delhaize 3Q Operating Profit Meets Ests. as U.S. Growth Quickens
- DTE GY : Deutsche Telekom 3Q Sales, Ebitda Beat; Broadband Customers Fall
- EBC1V FH : Elektrobit Sees 2014 Net Sales, Op. Result Growing vs 2013
- ELG GY : Elmos Semiconductor 3Q EPS EU0.20/shr vs EU0.16 y/y
- ENE SM : Endesa to Direct 20% of Share Sale to Small Investors: Expansion
- FER SM : Ferrovial May Make Hostile Bid for Transfield, Expansion Says
- FNC IM : Finmeccanica 3Q Sales, Ebita Beat Ests.; Targets Raised
- GLPG NA : Galapagos Says GSK2856184 Shows Higher Efficacy Than Apremilast
- G IM : Generali 9-Mo. Net Rises; Sees Improvement in 2014 Oper. Result
- HAW GY : Hawesko 3Q Rev. In Line With Ests., FY14 Sales to Rise 1%-2%
- HEI GY : HeidelbergCement Confident Will Achieve 2014 Outlook
- RMS FP : Hermes 3Q Leathergoods Sales Beats Ests., Silk Misses
- NK FP : Imerys to Buy Closely Held S&B for EU525m in Cash, Stock, CEO Says S&B Purchase Is Biggest Since Group Creation
- IT IM : Italcementi Offices Said Visited in Insider Trading Probe: Rtrs
- IPN FP : Otonomy Gets Rights From Ipsen for Gacyclidine Data for OTO-311
- KCO GY : Kloeckner Posts 3Q Net Profit, Ebitda Beats; Adjusts Outlook
- KUNN SW : Kuoni 3Q Organic Sales Up 1.5%, Confirms 2014 Ebit Forecast
- LR FP : Legrand 9-Month Rev. Meets Est.; Sees 2014 at Low End of Target
- LXS GY : Lanxess 3Q Ebitda Pre-Items EU210m, Est. EU203.9m; Plans Savings
- LHA GY : German Airlines Risk U.K. Ban Without Passenger Lists: Guardian
- MEDAA SS :Meda 3Q Ebitda Beats Est.; Sees Slightly Better 2014 Margin
- MONT BB : Montea 3Q Adj. EPS EU0.43 vs EU0.51; Keeps 2014 Profit Forecast
- NOBN SW : Nobel Biocare 3Q Op. Profit Below Ests.; Keeps 2014 Forecast
- OSR GY : Osram 4Q Adj. Ebita EU106m vs EU108m
- PSM GY : ProSiebenSat.1 3Q Rev In Line; Confirms Year Positive Outlook
- PTC IM : Portugal Won’t Interfere in Portugal Telecom Process: PM Coelho
- SAN FP : Sanofi/MRK Best Position in Pharma to Boost Returns: Morningstar
- SAP GY : SAP Follows Microsoft, Google in ALEC Exit, Manager Magazin Says
- SCMN VX : Swisscom 3Q Sales, Ebitda Beat; Reiterates FY Forecasts
- SCR FP : Scor 3Q Net Rises 7.1% to EU121 Million, Beating Estimates
- SIE GY : Siemens 4Q Total Sectors Profit EU2.195b, Est. EU2.25b
- SIE GY : Siemens Agrees to Sell Hearing Aids Unit to EQT for EU2.15b
- S92 GY :SMA Solar 3Q Ebit Loss EU10.3m vs Est. EU7.7m Loss (3 Ests.)
- GLE FP : SocGen 3Q Net Income Misses Estimates; FICC Revenue Up 1.4% Y/y
- SPD LN : Sports Direct May Be Seeking Stake in Super Retail, AFR Says
- TATE LN : Tate & Lyle 1H Adj. Pretax Tops Est., Keeps FY Outlook
- TEN IM :Tenaris Net, Rev. Miss Ests.; Sees Ebitda Margin Improving in 4Q
- VEI NO : Veidekke 3Q Revenue NK5.98b vs NK5.62b; Pretax NK370m vs NK358m
- VIE FP : Veolia 9-Month Rev. Grows 5.1%; Reiterates 2014 Forecasts
- O1BC GY : Xing 3Q Sales Rise 20%; Sees 2014 adj. Ebitda of EU28m to EU29m
- XXL NO : XXL 3Q Total Operating Revenues NK1.42b Vs NK1.08b Year Earlier
- YOOX IM : Yoox 3Q Ebitda In Line With Ests, Sees 2014 Sales, Profit Growth
- ZIGGO NA : Liberty Global Declares Ziggo Offer Unconditional
- ZURN VX : Zurich Insurance 3Q Net Income $928m, Est. $1.04b

>>>> Brokers Upgrades & Downgrades - 6th of November 2014

>>> Up
*BAYER ADDED TO GOLDMAN CONVICTION BUY LIST; WAS BUY
*FUGRO RAISED TO CONVICTION LIST BUY VS NEUTRAL AT GOLDMAN
*HARGREAVES LANSDOWN RAISED TO BUY VS HOLD AT JEFFERIES
*MARKS & SPENCER RAISED TO BUY VS NEUTRAL AT UBS
*ORIFLAME RAISED TO NEUTRAL VS UNDERPERFORM AT CREDIT SUISSE

>>> Down
*LLOYDS BANKING CUT TO MARKETPERFORM VS OUTPERFORM: BERNSTEIN

>>> PT Changes
*ECONOCOM PT CUT TO EU5.75 AT ING; MAINTAINED AT `HOLD'

>>> Initiating
*ALDAR PROPERTIES RATED NEW SELL AT UBS
*BIG YELLOW RATED NEW HOLD AT BERENBERG, PT 550P
*DOMINO’S PIZZA RATED NEW BUY AT BERENBERG, 770P
*LOOKERS RATED NEW BUY AT BERENBERG, PT 175P
*PENDRAGON RATED NEW BUY AT BERENBERG, PT 40P
*SAFESTORE RATED NEW BUY AT BERENBERG, PT 260P
*THE RESTAURANT GROUP RATED NEW BUY AT BERENBERG, PT 800P

>>> Call
>> Stock
*BAYER ADDED TO GOLDMAN CONVICTION BUY LIST; WAS BUY
*FUGRO RAISED TO CONVICTION LIST BUY VS NEUTRAL AT GOLDMAN

FT : Broker push helps Vodafone higher

A push from its joint house broker helped lift Vodafone to a six-week high on Wednesday.
UBS argued that Vodafone could switch tack away from acquisitions and start selling assets where it lacks market leadership and fixed-line infrastructure. Withdrawing from Australia, Hungary, the Czech Republic and Romania could raise £4bn, it said.

“Longer term, Vodafone could either be acquired or consider a transformational deal,” said UBS, which named AT&T and SoftBank as logical bidders. A buyer could be able to draw more quickly on Vodafone’s £63bn of tax losses held in its Luxembourg holding company, which might be worth 39.2p per share, the broker calculated.
Operationally, UBS saw Vodafone’s biggest market returning to growth within the next few quarters. While competition has hindered Vodafone in Germany, its network investment is creating a two-tier market where the cheaper operators will not be able to offer fast connections, UBS argued.
Vodafone added 2.4 per cent to 208.5p after UBS raised its target price to 260p and repeated “buy” advice. Since hitting a four-year low last month, the stock has rallied 13 per cent.

>>> US After Hours

After Hours Summary: PLNR +48.7%, NDLS +10.5%, DATA +9.8%, TSLA +7.2%,SZYM -20.6%, TXTR -17.6%, Z -8.4% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: PLNR +48.7%, SWIR +19.8%, ALSK +13.8%, NDLS +10.5%, ACAS +9.8%, DATA +9.8%, TEU +9.4%, UQM +9%, MBI +8.8%, WFM +7.7%, TSLA +7.2%, POWR +6.5%, TERP +6.2%, ABTL +5.9%, DRYS +5.5%, DEPO +5.2%, VVUS +4.7%, FNV +4.6%, QEP +4%, KGC +4%, ORIG +3.9%, NWSA +3.9%, FMI +3.2%, GPL +3%, SSNI +2.8%, SSRI +2.5%, CBS +2.4%, TRUE +2.4%, NVAX +2.3%, TRAK +2.1%

Companies trading higher in after hours in reaction to news: ALSK +13.8% (awarded five-year contract for WAN services to the state of Alaksa employees; co also reported earnings), ACAS +9.8% (announced plans to split into three companies), GSB +2.4% (announced special cash dividend of $0.05 per common share), PPO +1.3% (co and Panasonic (PCRFY) signed a letter of intent for Lithium-Ion battery separator development; co also reported earnings)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: SZYM -20.6%, TXTR -17.6%, CSOD -16.8%, BCOR -16.1%, WWWW -16.1%, TNGO -13.6%, MCP -13.5%, GNW -12.6%, WBMD -9.1%, SB -8.5%, ALXA -8.5%, Z -8.4%, BIOS -6.9%, QCOM -5.7%, CF -5.4%, SUNE -4.3%, MDWD -3.9%, THOR -3.9%, PODD -3.8%, LPSN -3.4%, FOXF -3.1%, ACLS -3%, EXXI -2.6%, PRU -2.4%, SD -2.2%, SCTY -2.1%, RGDO -1.9%, IO -1.9%, EVHC -1.6%, CLR -1.5%

Companies trading lower in after hours in reaction to news: MSTX -13.1% (announced underwritten public offering of common shares), BAH -3.7% (announced the sale of an aggregate of 10 mln shares of Class A common stock by an affiliate of The Carlyle Group), WDC -2.2% (announced secondary offering of 5,434,783 shares of its common stock by Hitachi), PKT -1.1% (to be replaced in the S&P SmallCap 600 by Enova International)

>>> US Close Dow+0,58% S&P+0,57% Nasdaq-0,06%

Closing Market Summary: S&P 500 Marks Record High With Help From Energy

The stock market registered a midweek gain with the S&P 500 climbing 0.6% to a fresh record high at 2,023.57. The benchmark index maintained a ten-point range while the Nasdaq Composite (-0.1%) spent the bulk of the day near its flat line.

Equities climbed at the start after yesterday's midterm elections in the U.S. altered the balance of power in Washington. The GOP picked up seven Senate seats to claim a 52-seat majority while also adding ten seats to their majority in the House of Representatives.

In addition to giving a small overnight boost to index futures, the news helped the Dollar Index (87.45, +0.47) climb to a new multi-year high at the expense of the yen (-105 pips) and the euro (-60 pips).

Strikingly, the dollar strength did not get in the way of a rally in crude oil. The energy component surged 2.0% to $78.73/bbl with an intraday boost following reports of a diesel pipeline explosion in Saudi Arabia. However, follow-up headlines indicated the pipeline did not explode, but caught fire during maintenance work.

The spike in oil served as a supportive factor for the energy sector (+1.7%), which outperformed from the start of the session. Better than expected results from EOG Resources (EOG 96.10, +5.82) also factored into the strength, sending the stock higher by 6.5%.

Meanwhile, the remaining cyclical groups were not nearly as strong. The materials sector (+0.9%) outperformed while financials (+0.6%) and industrials (+0.6%) caught up to the S&P 500 during the final hour of the session. For its part, technology (+0.3%) was limited to a small gain as large cap names like Facebook (FB 74.83, -0.93), Google (GOOGL 555.95, -8.24), and IBM (IBM 161.82, -0.83) weighed. Intel (INTC 33.76, -0.55) also lagged, falling 1.6%, but the broader PHLX Semiconductor Index gained 0.9%.

Even though chipmakers displayed strength, that was not enough to keep the Nasdaq out of negative territory. Biotechnology pressured the index and the group's weakness caused the health care sector (-0.2%) to finish in the red. The iShares Nasdaq Biotechnology ETF (IBB 288.54, -4.80) settled lower by 1.6%.

Elsewhere among countercyclical sectors, consumer staples (+0.7%) and utilities (+2.3%) displayed strength while the telecom services sector (+0.2%) ended little changed. Consumer staples were underpinned by better than expected earnings from Mondelez (MDLZ 37.15, +2.12) while utilities rallied with help from Duke Energy (DUK 83.50, +1.27). The stock gained 1.5% despite missing earnings and revenue estimates.

Treasuries spent the bulk of the session in the red, but returned to their flat lines by the end of the day. The 10-yr yield ended at 2.34%.

Participation was ahead of average with more than 770 million shares changing hands at the NYSE floor.

Economic data included ADP Employment, ISM Services, and the MBA Mortgage Index:

* The ADP National Employment Report revealed that employment in the nonfarm private business sector rose 230K in October while the consensus expected an increase of 220K 

* The September reading was revised up to 225,000 from 213,000 

* The ISM Services Index dropped to 57.1 in October from 58.6 while the consensus expected a decline to 58.0 

* Even though the services sector data softened more than expected, the index remains at an elevated position and in-line with expansionary trends 

* The weekly MBA Mortgage Index fell 2.6% to follow last week's 6.6% drop 

Tomorrow, the Challenger Job Cuts report for October will be released at 7:30 ET while weekly Initial Claims (consensus 285K) and Q3 Productivity/Unit Labor Costs data will cross the wires at 8:30 ET.

* Nasdaq Composite +10.6% YTD  * S&P 500 +9.5% YTD  * Dow Jones Industrial Average +5.5% YTD  * Russell 2000 +0.3% YTD

WSJ : Pimco Sees $48 Billion in Outflows After Gross Departu

Pimco Sees $48 Billion in Outflows After Gross Departure October Withdrawals Include $27.5 Billion From Fund Previously Managed By ‘Bond King’

Investors pulled a net $48 billion from Pacific Investment Management Co.’s mutual funds in October following the departure of star manager Bill Gross , the fund research firm Morningstar said Wednesday.

The amount includes the $27.5 billion that investors pulled from Pimco’s flagship Total Return fund, previously managed by Mr. Gross. That number was reported by Pimco on Tuesday.

In September and October, Pimco’s mutual funds saw net withdrawals of $73.8 billion, according to Morningstar. The total amount investors have pulled from Pimco is likely higher, as flows aren't publicly reported in the firm’s separately managed accounts for institutional investors.

Pimco executives have prepared for up to $100 billion in outflows across the firm, with some anticipating more, the Journal has reported.

Pimco, a unit of Allianz SE , manages $1.87 trillion in assets.

Morningstar also on Wednesday reported an outflow of $32.3 billion from Pimco’s Total Return in October, an amount that is higher than Pimco’s figure because of the way Pimco accounted for assets leaving the fund after Mr. Gross’s departure Sept. 26. Both Morningstar and Pimco say about $50 billion has been pulled by investors from the fund over the last two months.

A Pimco spokesman didn’t immediately return a request for comment. In a statement on Tuesday, the company said most of the outflows in its Total Return fund occurred in the days immediately after Mr. Gross’s exit.