Market Update
4:30 pm : Stocks extended their prior session slide in the opening minutes of trade, but a combination of technical support and leadership from financials led stocks back to higher ground. The effort was extended in response to word that eurozone officials agreed to boost bailout funds, although that story was called into question at the close.
The stock market scored a 2.0% gain today, offsetting a move of similar degree to the downside yesterday. Participants were initially inclined to cut down stocks this morning. Negative sentiment was stirred by news that China, which carries the burden of being the primary supporter of global growth amid tenuous macro conditions, experienced a slowdown in economic growth during the third quarter. The 9.1% growth rate was also less than the 9.3% clip that many had anticipated.
Early selling interest was also ushered in by the threat of a future downgrade of France's pristine debt rating, which was put on negative watch by analysts at Moody's. The notion that the countries in the core of the eurozone, not just those in the region's periphery, face precarious fiscal and financial conditions put pressure on Europe's major bourses and further undermined the morning mood.
The S&P 500 was down about 1% within the first 30 minutes of trade, but it was able to bring buyers back in by holding steady at its 50-day exponential moving average.
Financials also offered leadership. The sector's refusal to turn negative in conjunction with the broad market's early dive convinced many that the sector's strength was sustainable, prompting many to push back into the space. Financials finished the session with a 5% gain.
Bank of America (BAC 6.64, +0.61) was one of the strongest performers. Not only did the stock boast the most robust share volume on the Big Board, but it also swung to a 10% gain. The move made for the stock's best one-day bounce in almost two months. The stock's surge came even though the company's latest quarterly report was muddled with numerous items. Even Goldman Sachs (GS 102.25, +5.35) staged an enviable gain, although the company reported a loss that was worse than what most of Wall Street had expected.
While financials offered leadership, the broad market got an additional boost amid news that leaders from France and Germany agreed to balloon the region's rescue fund to 2 trillion euros, although specifics continue to elude the leaders. Some doubt was cast on the report shortly before the close, causing stocks to surrender a portion of their gains.
The broad market's late bounce failed to carry shares of IBM (IBM 178.90, -7.69) to higher ground. The stock's loss came in the face of an upside earnings surprise and strong forecast. Fellow large-cap tech plays like Intel (INTC 23.40, +0.12) and Apple (AAPL 422.24, +2.25) stayed out of the red, but also lagged ahead of their latest reports.
Not to be ignored, Dow components Johnson & Johnson (JNJ 64.42, +0.63) and Coca-Cola (KO 66.74, -0.26) both bested bottom line expectations, but only JNJ shares were bid higher at the end of the day.
No sector logged a loss, but defensive-oriented issues like utilities, telecom, consumer staples, and health care were the only groups that failed to generate gains greater than 1%. Such relative weakness came as market participants showed an increased appetite for risk.
Advancing Sectors : Financials +5.0%, Energy +3.0%, Industrials +2.9%, Materials +2.4%, Consumer Discretionary +1.8%, Tech +1.0%, Health Care +0.8%, Consumer Staples +0.8%, Telecom +0.8%, Utilities +0.7%
Declining Sectors : (None)DJ30 +180.05 NASDAQ +42.51 NQ100 +1.3% R2K +3.0% SP400 +2.6% SP500 +24.52 NASDAQ Adv/Vol/Dec 1982/1.93 bln/595 NYSE Adv/Vol/Dec 2562/1.09 bln/487
Advancing Sectors : Financials +5.0%, Energy +3.0%, Industrials +2.9%, Materials +2.4%, Consumer Discretionary +1.8%, Tech +1.0%, Health Care +0.8%, Consumer Staples +0.8%, Telecom +0.8%, Utilities +0.7%
Declining Sectors : (None)DJ30 +180.05 NASDAQ +42.51 NQ100 +1.3% R2K +3.0% SP400 +2.6% SP500 +24.52 NASDAQ Adv/Vol/Dec 1982/1.93 bln/595 NYSE Adv/Vol/Dec 2562/1.09 bln/487
3:30 pm : Stabilization in the euro allowed for commodities to move higher throughout the session. Gold, which shed 1.3% to finish at $1652.80 per ounce, and silver, which finished near flat at $31.83 per ounce, rallied off morning lows throughout the session. Gold futures managed to trade back to the $1660 mark, a key level, while silver futures were able to recoup all of their losses and end just above flat on the day.
Crude oil, which settled higher by 2.3% at $88.34 per barrel, rallied off of the $85.50 mark in mid-morning trade and never looked back. Futures traded as high as $88.6 heading into the close and ended just shy of those levels. A pullback in the dollar, coupled with strength in equities, helped crude end higher ahead of tomorrow's inventory data. Natural gas fell 3.6% at $3.55 per MMBtu , finished sharply lower today, pressured by expectations for milder weather forecasts. DJ30 +171.05 NASDAQ +39.75 SP500 +24.73 NASDAQ Adv/Vol/Dec 1940/1.5 bln/633 NYSE Adv/Vol/Dec 2555/704.3 mln/500
3:00 pm : Stocks are starting to spike as they enter the final hour of today's trade. The effort has all three major equity averages at session highs. The recent bout of buying has been broad based, but financials remain out in front by a comfortable margin. The sector is now up 4.5%. Industrials, up 3.0%, are the next best performing group. Telecom is bringing up the rear; the sector is up only 0.5%. DJ30 +132.41 NASDAQ +24.57 SP500 +17.83 NASDAQ Adv/Vol/Dec 1690/1.17 bln/860 NYSE Adv/Vol/Dec 2300/535 mln/700
2:30 pm : Stocks have resumed their upward climb. The effort has both the Dow and the S&P 500 at their best levels of the day. Meanwhile, the Nasdaq has returned to the top end of its trading daily range.
Financials remain out in front of the rest of the market. The sector is now up nearly 4%. Bank stocks have provided the most boost to the sector. As such, the KBW Bank Index is up almost 5%. Its bounce today comes after it set a weekly low at the prior session's close. DJ30 +122.34 NASDAQ +21.33 SP500 +16.29 NASDAQ Adv/Vol/Dec 1715/1.06 bln/810 NYSE Adv/Vol/Dec 2320/485 mln/680
2:00 pm : Shares of Apple (AAPL 420.91, +0.92) are barely positive today. The stock's incremental increase precedes the company's latest quarterly report, which will be posted after the close of today's trade. Fellow large-cap tech outfit Intel (INTC 23.33, +0.05) is also slated to report after the close, along with Yahoo! (YHOO 15.48, -0.22).
Tomorrow morning brings the latest from a bevy of notable names, like Abbott Labs (ABT 51.90, -0.14), Morgan Stanley (MS 16.05, +0.80), US Bancorp (USB 24.21, +0.60), Travelers (TRV 50.93, +1.35), and United Technologies (UTX 73.92, +1.80). A complete list of companies scheduled to report quarterly results is always available directly from Briefing.com. DJ30 +94.15 NASDAQ +18.25 SP500 +13.44 NASDAQ Adv/Vol/Dec 1650/970 mln/845 NYSE Adv/Vol/Dec 2250/440 mln/720
1:30 pm : Gains have started to taper off. The pullback by the major averages comes without any clear catalyst or headline, but follows some waffling by the S&P 500 in the face of secondary intraday resistance near the 1215 line.DJ30 +76.82 NASDAQ +14.13 SP500 +11.68 NASDAQ Adv/Vol/Dec 1660/900 mln/835 NYSE Adv/Vol/Dec 2275/410 mln/690
1:00 pm : Financials are leading stocks higher after the broad market endured a substantial slide in the prior session. The major equity averages are currently taking a breather at session highs. Sentiment was weak early this morning as global participants responded to news that China's economy downshifted to a slower-than-expected growth rate in the third quarter. Word that France could have its pristine debt rating put on negative watch by analysts at Moody's aroused concern for the core eurozone countries, rather than just those in the region's periphery.
Although the mood among morning participants improved with the appraoch of the open, sellers were quick to step back in. Their efforts sent the S&P 500 down as much as 1.0%, but leadership from the financial sector has helped the broad market measure swing to a 1% gain.
Financials were able to fend off sellers in the early going, resisting efforts to take the sector into negative territory. Its resilience has been rewarded with additional buying interest. In turn, the sector now sports a 3% gain.
Diversified banking and financial services giant Bank of America (BAC 6.44, +0.41) has been especially strong. The stock's spike comes even though the company posted a somewhat muddled quarterly report. Goldman Sachs (GS 99.33, +2.43) has also staged an impressive performance, even though the firm posted a loss that was even steeper than what had been widely anticipated.
Tech stocks have lagged all session. Even now the sector is only up 0.2%. IBM (IBM 176.83, -9.76) has been a primary source of weakness, despite its upside earnings surprise and forecast.
Fellow Dow component Johnson & Johnson (JNJ 63.93, +0.14) has also had a hard time winning support in the wake of its better-than-expected earnings report. Blue chip Coca-Cola (KO 67.01, +0.01) also bested the consensus, but has been having a lackluster day, too. DJ30 +91.62 NASDAQ +18.70 SP500 +13.60 NASDAQ Adv/Vol/Dec 1695/845 mln/800 NYSE Adv/Vol/Dec 2285/+380 mln/670
12:00 pm : Stocks spent nearly an hour dancing along just above the neutral line, but they recently bounded to fresh session highs.
Materials stocks had been down more than 1.5% at their session low, but the sector has since rallied to a 0.6% gain with help from AK Steel (AKS 7.71, +0.56), which was recently upgraded by analysts at Goldman Sachs. Fellow metals and mining giant Alcoa (AA 9.87, +0.29) has also benefited from some positive analyst commentary. Despite their strength, many other metals plays continue to wrestle with sellers. DJ30 +64.94 NASDAQ +18.66 SP500 +10.71 NASDAQ Adv/Vol/Dec 1525/645 mln/890 NYSE Adv/Vol/Dec 2050/300 mln/835
11:30 am : Stocks have struggled to sustain momentum from their move off of session lows. That has left the major equity averages to trade with only modest gains. Tech stocks, which collectively make up the largest sector by market weight, have weighed on broad market trade. The sector remains mired in negative territory with a narrow loss. The sector attempted to push into positive territory earlier, but was rebuffed at the flat line. IBM (IBM 178.00, -8.59) has bogged down the sector since the start of the session. DJ30 +16.65 NASDAQ +0.63 SP500 +3.66 NASDAQ Adv/Vol/Dec 1415/550 mln/970 NYSE Adv/Vol/Dec 1920/255 mln/915
11:00 am : Stocks have rallied back after grappling with sellers in the first 30 minutes of trade. The effort has been led by financials, which are now collectively up about 2%. Diversified banks and financial services stocks continue to lead the effort.
Utilities, which did the best job of limiting losses in the prior session, are lagging today. The sector is currently down 0.6%, which makes it today's worst performing group. The push against the defensive-oriented sector comes as participants show an increased appetite for risk. DJ30 +7.46 NASDAQ +1.21 SP500 +3.70 NASDAQ Adv/Vol/Dec 1250/445 mln/1030 NYSE Adv/Vol/Dec 1725/200 mln/1055
10:35 am : Commodities are lower this morning on the broad market weakness. The dollar index hit a new session high of 77.55 about 30 minutes ago, which helped pull the CRB Commodity Index to a new session low around the same time (falling to 310.91). Aluminum and lumber futures appear to be the only commodities showing any gains this morning. Lean hogs are at the unchanged line
Crude oil futures have shown some volatility this morning. The energy component hit a new session high of $87.19/barrel about one hour ago, but fell back below the $86 level following that. In more recent activity, crude is back into positive territory and now up 0.4% at $86.75/barrel. Natural gas is down 2.0% at $3.61/MMBtu.
Gold and silver have trended lower all session. Gold fell as far as $1628.60/oz about 30 minutes ago and is currently just above the low, now down 2.30% at $1638.20/oz. Silver Hit a session low this morning of $30.43, but the precious metal is now back above the $31 level, now at $31.06, down 2.3%
DJ30 -28.87 NASDAQ -3.66 SP500 +0.98 NASDAQ Adv/Vol/Dec 1150/400 mln/1141 NYSE Adv/Vol/Dec 1599/184 mln/1177
Crude oil futures have shown some volatility this morning. The energy component hit a new session high of $87.19/barrel about one hour ago, but fell back below the $86 level following that. In more recent activity, crude is back into positive territory and now up 0.4% at $86.75/barrel. Natural gas is down 2.0% at $3.61/MMBtu.
Gold and silver have trended lower all session. Gold fell as far as $1628.60/oz about 30 minutes ago and is currently just above the low, now down 2.30% at $1638.20/oz. Silver Hit a session low this morning of $30.43, but the precious metal is now back above the $31 level, now at $31.06, down 2.3%
DJ30 -28.87 NASDAQ -3.66 SP500 +0.98 NASDAQ Adv/Vol/Dec 1150/400 mln/1141 NYSE Adv/Vol/Dec 1599/184 mln/1177
10:00 am : Sellers have stepped in to drop stocks for marked losses. Their efforts come even though the financial sector had displayed signs of early leadership. As a group, financials were up by about 1.5% in the first few minutes of trade, but the sector is now holding on to a gain of only 0.2%. It is actually the only major sector still in positive territory.
Basic materials stocks are in the worst shape. The sector has already slumped to a 1.8% loss, which comes on top of its 3.1% tumble in the prior session. Diversified metals and miners continue to be cut down aggressively. DJ30 -81.06 NASDAQ -21.00 SP500 -7.55 NASDAQ Adv/Vol/Dec 1275/75 mln/650 NYSE Adv/Vol/Dec 1620/45 mln/920
09:45 am : Overall action in the early going has been choppy, despite leadership from the financial sector, which is already up 1.5%. The sector's bounce comes amid newfound strength among diversified financial services stocks like Bank of America (BAC 6.31, +0.28) and investment banks and brokerages like Goldman Sachs (GS 98.65, +1.75).
In contrast, tech has been a drag. The sector is currently down 0.7% as heavyweight IBM (IBM 177.98, -8.61) tumbles in an extension of its downturn from the record high that it set late last week. DJ30 -44.58 NASDAQ -7.49 SP500 -1.89 NASDAQ Adv/Vol/Dec NA/NA/NA NYSE Adv/Vol/Dec NA/NA/NA
09:15 am : S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: +5.00. Stock futures have recovered from some early morning selling. Pressure initially came amid more losses in Europe, where the major bourses reacted to the idea that one of the region's core countries, France, could be given a negative outlook by analysts at Moody's. Also of concern was news that China's GDP downshifted in the third quarter to its slowest pace in about two years. It also came short of what many economists had come to expect. There was also some headline shock associated with news that Goldman Sachs (GS) suffered a much steeper-than-anticipated loss for the latest quarter, but the stock has since been bid higher. Bank of America (BAC) shares have also bounced ahead of the open. The stock's strength comes even though its latest report was relatively messy, featuring a number of items. Fellow blue chip IBM (IBM) reported a better-than-expected bottom line and issued upside guidance, but it has been unable to shake free from sellers, who already sunk the stock yesterday after it had set a new record high this past Friday. Domestic data featured a hotter-than-expected increase in overall producer prices, but core prices made only an incremental increase that was in line with what had been expected.
09:05 am : S&P futures vs fair value: -1.80. Nasdaq futures vs fair value: +2.70. Stock futures continue to improve their position. However, no real response was made to news that Treasury International Capital Flows for August totaled $57.8, which is up sharply from the downwardly revised $9.1 billion posted in the prior month. Precious metals prices are under pressure this morning. Specifically, gold prices are down 1.9% to $1644 per ounce, while silver prices have fallen to $30.90 per ounce for a 2.9% loss. In the energy complex, oil prices are currently fractionally higher at $86.50 per barrel, but natural gas prices are down 0.8% to $3.66 per MMBtu.
08:35 am : S&P futures vs fair value: -4.10. Nasdaq futures vs fair value: -3.30. A recent bounce by financial stocks ahead of the open has helped broad market stock futures trim their losses. Stock futures haven't really reacted to the latest dose of data, though. Overall producer prices spiked by 0.8% during September, but core producer prices increased by a much more tepid 0.2%. The consensus among economists polled by Briefing.com had called for a 0.2% increase in overall prices and a 0.1% increase in core prices.
08:05 am : S&P futures vs fair value: -7.20. Nasdaq futures vs fair value: -8.00. The prior session's slide, which represented the stock market's worst single-session performance in two weeks, has extended into this morning's premarket trade. Amid ongoing concerns about the fundamentals of financial firms, Goldman Sachs (GS) posted a steeper-than-anticipated loss for its latest quarter. Shares of GS are down more than 1% this morning. Meanwhile, Bank of America (BAC) bested expectations for its bottom line, but its shares have been looking for direction ahead of the open. Dow component Johnson & Johnson (JNJ) reported an upside earnings surprise, winning its shares modest support ahead of the open. Fellow blue chip IBM (IBM) also posted a beat, but complemented it with an upside forecast. The stock has still fallen about 4% this morning, though. Coca-Cola (KO) shares are unchanged after the company narrowly exceeded the consensus earnings estimate. Weakness in Europe is in the backdrop. Word that analysts at Moody's could take a negative outlook on France indicated that the problems of the eurozone are not limited to its periphery. News that China's economy grew at a slightly less-than-expected 9.1% has also dampened sentiment. Domestic data features monthly producer prices at the bottom of the hour. Treasury International Capital numbers follow at 9:00 AM ET. The latest Housing Market Index at 10:00 AM ET.
06:30 am : Nikkei...8741.91...-137.70...-1.60%. Hang Seng...18076.46...-797.50...-4.20%.
06:30 am : FTSE...5386.15...-50.60...-0.90%. DAX...5837.49...-21.90...-0.40%.
06:30 am : S&P futures vs fair value: -5.20. Nasdaq futures vs fair value: -3.00.
In Play
3:45PM Earnings Calendar (SUMRX) : Today after the close look for the following companies to report:
- AAPL, CREE, CCK, CSX, FSII, FULT, HA, INFN, INTC, ISRG, JNPR, LLTC, MRTN, PNFP, PTP, RNST, RLI, SONC, SON, URI, WCN, WERN, and YHOO.
- ABT, APH, AMR, APOL, ATMI, BK, BLK, CMA, DRH, FCFS, FCX, KCG, KNL, LUFK, MTB, MEG, MS, NYB, NTRS, PJC, PNC, BPOP, ROC, SEIC, ST, STJ, SVU, TIN, TXT, TRV, USB, UTX, VCBI, and WNS.
3:16PM Crestwood Midstream Partners also declared quarterly distribution of $0.48 per unit, prior $0.46 per unit (CMLP) 26.33 +0.53 :
3:14PM Crestwood Midstream Partners to acquire Tristate Sabine for $65 mln of cash at closing and deferred payment of ~$8 mln (CMLP) 26.36 +0.56 : Co announced the signing of a definitive agreement to acquire Tristate Sabine, from affiliates of Energy Spectrum Capital, Zwolle Pipeline, and the Tristate management for $65 million of cash to be paid at closing and a deferred payment of approximately $8 million one year following the closing date, subject to customary post-closing adjustments.
3:13PM Fresh highs for crude oil at $89.03 as dollar plunges on euro-zone bailout story (COMDX) :
3:13PM Dow +250 lagging behind S&P but joins above Fri/Mon highs and its 200 ema at 11643/11646 -- session high 11652 (DIA) :
3:10PM Visa probes its 52-wk close high at 93.92 (V) 93.87 +2.68 : The Oct and Sep/52-wk highs are at 94.65/94.75
3:07PM S&P +23 edges just above Friday/Monday highs (SPY) :
3:04PM New highs for start the final hour for the stock indices -- Dow +161, S&P +21, Nasdaq Comp +32 (SPY) : The Dollar Index are broken below its midday-early afternoon range providing a lift for Energy/Commodity. Finance XLF, KIE, KRE, KBE continues to pace the way.
2:57PM Goldman Sachs: Stock extends its premarket reversal higher intraday as it lifts back through the $100.00 "psychological" level to challenge its recent 3-wk high of $101.13 (GS) 101.04 +4.15 : 2:35PM NYMEX Energy Closing Prices (COMDX) : Crude oil settled higher by $1.95 at $88.34, natural gas shed 13 cents to end at $3.55, heating oil ended higher by a penny at $3.03, while RBOB gasoline closed near flat at $2.75 (all Nov contracts).
2:30PM Andersons Completes updates to facility operations at five locations - The Delphi facility has increased its storage capacity (ANDE) 33.69 +0.82 : The Reading facility has completed three updates to its operations that include an increase in storage capacity to 3.8 mln bushels with the addition of two grain bins, a new dump pit that allows up to 15,000 bushels to be unloaded per hour and a new leg that will efficiently move 30,000 bushels per hour. The addition of a new 10,000 bushel per hour Zimmerman Dryer will double the drying capacity and improve the output quality of grain as it is being handled because it is being dried with less heat.
2:25PM CBOT Agriculture, Ethanol and Sugar Closing Prices (COMDX) : Corn settled higher by 3 cents to $6.44, wheat rose 2 cents to end at $6.26, soybeans were 3 cents lower at $12.50, ethanol fell 1 cent to close at $2.61, while sugar fell 0.68% to $0.28.
2:21PM Hertz Global announced that Hertz On Demand signed a partnership with BAA's Heathrow Airport to provide a business car share program for selected airport employees (HTZ) 10.46 +0.05 : As part of the agreement, Hertz On Demand is supplying Heathrow with fleet of Ford (F) Fiestas for use as employee pool cars.
2:18PM Stock indices extend to another round of new highs -- Dow +115, S&P +15, Nasdaq Comp +18 (SPY) : New afternoon lows in the Dollar Index has allowed Energy/Commodity to provide leadership.
2:13PM Cardiovascular systems predator 360 Data demonstrates favorable 12-month results treating peripheral arterial disease (CSII) 7.60 +0.04 : According to Principal Investigator Prakash Makam, Cardiovascular Research of Northwest Indiana, Munster "Twelve-month data shows the Predator 360 is a durable solution, resulting in modified lesion compliance. This is reflected by short treatment times, low-pressure balloon inflations post orbital atherectomy treatment, and elimination of bailout stenting. The Predator's unique orbital mechanism of action with differential sanding safely removes resistant plaque, reducing the need for high-pressure balloon inflation and stenting."
2:01PM Hologic: FDA clears Hologic's Specimen radiography system (HOLX) 14.76 -0.03 : Co announced that the FDA has cleared the Company's Trident specimen radiography system. The system uses Hologic's proprietary direct digital detector technology to produce high quality images for rapid verification of tissue specimens such as breast biopsy samples.
1:35PM Regis Urges shareholders to vote the Gold Proxy Card and to disregard the ISS recommendation (RGS) 16.31 +0.52 : Co issued the following statement in response to Institutional Shareholder Services' recent report regarding the Company's 2011 Annual Meeting of Shareholders. The statement said "We are disappointed in ISS' recommendation and strongly believe that the firm reached the wrong conclusion in failing to recommend that Regis shareholders vote FOR all of Regis' director nominees at the Company's 2011 Annual Meeting of Shareholders. We reiterate our Board's unanimous recommendation that shareholders support the Company's plans for future growth and enhanced shareholder value by voting FOR Regis' director nominees on the GOLD proxy card" (see our 11:00 comment)
1:32PM COMEX Metals Closing Prices (COMDX) : Gold ended lower by $22.80 at $1653.80, silver closed higher by 8 cents at $31.90, while copper shed 1.8 cents to finish at $3.36 (all Dec contracts).
1:02PM Agenus reports 'positive' results shown with Agenus' QS-21 Stimulon Adjuvant in Phase 3 Trial of GlaxoSmithKline's (GSK) malaria vaccine (AGEN) 3.49 +0.77 : Co announced that the New England Journal of Medicine published results of a Phase 3 trial of GlaxoSmithKline Biologicals' RTS,S malaria vaccine candidate containing the Company's QS-21 Stimulon adjuvantQS-21 is a component of AS01B, which is one of GSK Biologicals' proprietary adjuvant systems used in RTS,S. Results of the study demonstrate that RTS,S provided young African children with significant protection against clinical and severe malaria - reducing risk by 56% and 47% , respectively, for the 12-month period following vaccination. The overall incidence of serious adverse events in this trial was comparable between the RTS,S candidate vaccine (18%) recipients and those receiving a control vaccine (22%)... These results were also announced today at the Malaria Forum. 12:42PM S&P +13 and Dow +86 notch new session highs, Nasdaq Comp +20 hovering just below (SPY) :
12:39PM Fresh highs for crude; now up $1.66 at $88.04 (COMDX) :
12:26PM Silver turns positive on the session, aided by the dollar pullback; now up 5 cents at $31.87 (COMDX) :
12:10PM AMR and Etihad Airways expand frequent flyer agreement (AMR) 2.79 +0.02 : American Airlines and Etihad Airways, the Abu Dhabi-based national airline of the United Arab Emirates, announced they will offer passengers the opportunity to redeem frequent flyer miles on flights booked on each other's networks.
12:07PM Kingold Jewelry entered into an agreement with Wuhan Rural Commercial Bank for the distribution of Kingold's investment-related products (KGJI) 1.25 +0.02 : It is anticipated that Kingold's investment-related products will be available for purchase by customers throughout the Bank's network of 230 branches across Wuhan. "This push into suburban China is complementary to our existing relationships with two of China's largest national banks, China Merchants Bank and the Bank of Communications, who are currently rolling out our investment products across their network of over 3,000 branches. We anticipate that Kingold's investment related business will start to significantly impact revenues by the end of this year, and become a meaningful contributor in 2012."
11:40AM Crude to fresh highs on quick pullback in dollar; now up $0.87 to $87.24 (COMDX) :
11:38AM Stock indices edge to minor new recovery/session highs -- Dow +47, S&P +7.6, Nasdaq Comp +9 (SPY) : Sector relative strength in recent action in Finance XLF, Housing XHB, Industrial XLI, Airline, Rail, Disk Drive, Networking, Casino (LVS, WYNN).
11:33AM Natural gas drops ~3 cents to fresh lows at $3.57; now off 10 cents at $3.58 (COMDX) :
11:08AM S&P +4.8 retraces portion of slide off recent high (SPY) : Mixed to slightly favorable start elicited no follow through interest with the index extending the slide off Friday/Monday highs. The S&P held at support noted in The Technical Take at 1191/1190 (50 ema/congest) with a solid bounce bringing first level resistance into play at 1206/1208 (session high 1207). Short term patterns raise the possibility that this could be the first leg up off 1191 but also that the move may be a corrective bounce (Click for chart)
11:00AM Regis: Institutional Shareholder Services recommends Regis shareholders vote for all three of Starboard's nominees (RGS) 16.12 +0.33 : Starboard urges all Regis shareholders to follow ISS' recommendations for change on the Regis Board by voting the white proxy card today.
10:55AM Crocs: Following lowered guidance, stock slips back toward the lows off of its deep gap down open as it begins to peel back toward the $15.00-16.00 support vicinity (CROX) 16.26 -10.39 : 10:51AM Magellan Midstream raises quarterly cash distribution to $0.80/share from $0.785/share in the prior quarter (MMP) 62.60 -0.06 :
10:46AM Relative sector strength on rebound (TECHX) : Housing XHB, Reg Bank KRE, Oil Service OIH, Energy XLE, Transports IYT, Ag/Chem MOO, Solar TAN, Silver SLV, Rail, Computer-Hardware, Disk Drive.
10:43AM Stock indices extend bounce off lows back into the black -- Dow +2.5, S&P +3.9, Nasdaq Comp +1.5 (TECHX) :
10:39AM Perrigo Confirms filing for generic version of PATANASE Nasal Spray and announcement of patent infringement lawsuit by Alcon Laboratories (PRGO) 97.34 -0.18 : Co announced that it has filed with the FDA an Abbreviated New Drug Application for olopatadine hydrochloride nasal spray and that it has notified Alcon Laboratories, the owner of the New Drug Application. The ANDA filing involved contributions from Perrigo's partner, Impax Laboratorie (IPXL) who will share costs and benefits of this project. On October 14, 2011, Alcon Labs filed suit against Perrigo in the United States District Court for the Northern District of Texas, alleging patent infringement. This action formally initiates the process under the Hatch-Waxman Act.
10:38AM Diageo plc renews open state agreements with Southern Wine & Spirits (DEO) 80.06 +0.34 :
10:24AM Anadarko Petro notches new session high of 75.56, yesterday's peak is at 75.58 with its 200 sma following at 75.74 (APC) 75.56 +1.12 :
10:18AM Apple slides to new session low of 414.99, the low of yesterday's 52-wk high bar is at 415.94 (AAPL) 416.50 -3.56 :
10:06AM Dollar Index set minor new high, Energy/Commodity sectors displaying relative weakness during recent downside extension (TECHX) : OIH, XLE, XLB, SLX, KOL, JJC, SLV, GDX, GLD, MOO.
10:05AM Baldwin Lyons reported earlier Q3 catastrophe pre-announcement (BWINA) 24.35 -0.15 : Co provided an initial estimate of losses related to Hurricane Irene and other storms that impacted the United States during the third quarter of 2011. The Company expects after-tax losses of approximately $4.4 million for these events, without consideration of reinstatement premium. The majority of this total relates to Hurricane Irene, with an after-tax loss estimated at $2.7 million. In addition, recently updated information from ceding reinsurers has resulted in an after-tax increase in the Company's estimated losses associated with the Tohoku, Japan earthquake of $5.1 million without consideration of reinstatement premium. Management cautions that the Company's current loss estimates are based on evaluations of numerous recently occurring events as reported to-date, as well as emerging information from prior events. Much of the information in both categories is heavily dependent on portfolio modeling, as well as ongoing evaluations by and discussions with cedents and brokers. Consequently, the actual net impact on the Company's results arising from these catastrophes could differ from the current estimates.
10:02AM Regeneron Pharms announces pricing of offering of convertible senior notes due October 1, 2016 (REGN) 60.07 -4.56 : Co announced the pricing of its offering of $400 mln 1.875% convertible senior notes due October 1, 2016. The notes will pay interest semi-annually on April 1 and October 1 at an annual rate of 1.875%, and will mature on October 1, 2016, unless earlier converted or repurchased. The initial conversion rate for the notes will be 11.9021 shares of common stock per $1,000 principal amount of the notes, which is equal to an initial conversion price of approximately $84.02 per share, representing a conversion premium of approximately 30% above the closing price of the Company's shares of common stock of $64.63 per share on October 17, 2011... In connection with the offering of the notes, the Company has entered into convertible note hedge and warrant transactions with multiple counterparties. The warrant transactions will have a dilutive effect to the extent that the market price per share of the Company's common stock exceeds the applicable strike price of the warrants on any expiration date of the warrants.
10:01AM Air Products signed MOU and a joint R&D agreement with Huazhong University of Science and Technology in China on clean energy (APD) 81.98 -0.66 : The collaboration between Air Products and the State Key Laboratory of Coal Combustion (SKLCC) of HUST will accelerate the development and application of clean energy technology in China, with initial focus on advanced combustion technology through experimenting and theory testing of oxy-fuel combustion under the joint R&D agreement.
10:00AM S&P pulls back near support and pauses (SPY) : First level support from The Technical Take at 1191/1190 (50 ema/congest) was approached in recent action with the index holding just above (session low 1192) and lifting slightly
9:56AM Relative sector weakness (TECHX) : Sectors that are underperforming as the stock indices reversed early upticks and broke Monday's low include: Retail XRT (AMZN), Internet FDN, Materials XLB, Oil Service OIH, Energy XLE, Commodity Index, Copper JJC, Networking IGN, Silver SLV, Gold Miners GDX, Gold GLD, Coal KOL, Steel SLX. Early leader Finance (XLF) is back hovering slightly above the flat line, roughly 1.5% off its opening high.
9:50AM Stock indices extend slide off early high below Monday lows -- Dow -65, S&P -5.3, Nasdaq Comp -16 (SPY) :
9:49AM Opening Point Gainers/Losers (TECHX) : Point Gainers: GWW (+4.06), DVA (+2.82), SWK (+2.05), STT (+1.55), DPZ (+1.26), GS (+0.85), PNC (+1.02), HALO (+1.02), BRO (+0.99), HGSI (+1.08), TZOO (+1.13), PH (+0.78)
Point Losers: CROX (-10.12), IBM (-8.62), HSP (-7.36), BIDU (-6.26), SINA (-5.15), EDU (-4.46), REGN (-4.33), WYNN (-4.43), FOSL (-4.35), RL (-4.07), DECK (-4.22), UGL (-4.22), GMCR (-3.51)
Point Losers: CROX (-10.12), IBM (-8.62), HSP (-7.36), BIDU (-6.26), SINA (-5.15), EDU (-4.46), REGN (-4.33), WYNN (-4.43), FOSL (-4.35), RL (-4.07), DECK (-4.22), UGL (-4.22), GMCR (-3.51)
9:48AM Bank of America slides more than 3% off its morning high in recent trade (BAC) 6.22 +0.19 :
9:47AM O'Charley's is trading 10% higher after announcing it completed $105 million sale-leaseback transaction (CHUX) 6.34 +0.64 : Co announced that it has completed a sale-leaseback of 50 O'Charley's restaurant properties, which produced gross proceeds of approximately $105 million. The Company is using the net proceeds from the sale-leaseback of approximately $103.8 million and approximately $11.4 million of available cash to redeem at par all of its $115.2 million principal amount of 9% senior subordinated notes due November 2013 (the "Senior Notes"), leaving the Company with virtually no long-term debt on its balance sheet. The impact of the two transactions will be a decrease in annual interest expense associated with the Senior Notes of approximately $10.0 million which will be offset by approximately $8.8 million of incremental annual rent expense. The full impact of these changes will be reflected in the Company's 2012 results.
9:45AM Stock indices slip into the red after modest opening upticks -- Dow -32, S&P -0.9, Nasdaq Comp -4 (SPY) :
9:42AM Sector Watch (TECHX) : Finance continues to outperform (XLF, KBE, KRE, KIE) with relative strength also noted in Housing XHB, REITs IYR, Transports IYT, Industrial XLI, Machinery (NAV, URS, CAT, CBE).
9:37AM Ecology and Environment awarded $21.5 million contract with u.s. army corps of engineers (EEI) 14.96 +0.01 : Co has been awarded a $21.5 mln , unrestricted, indefinite delivery contract with the United States Army Corps of Engineers Kansas City District to provide architect-engineer services for hazardous, toxic, and radioactive waste programs within EPA Region 2 and the USACE Northwestern Division.
9:32AM IBM: Following earnings, stock gaps lower as it dips down to probe the modest $177.00 support vicinity (IBM) 177.95 -8.55 : Wider support zone below down near $173.00-176.00 next to the 50-day ema at $175.50.
9:32AM Avis Budget announces expansion and extension of its principal U.S. Asset-Backed Bank Conduit Facility (CAR) 11.62 +0.11 : Co announced today that its Avis Budget Rental Car Funding (AESOP) LLC subsidiary has renewed its U.S. asset-backed bank conduit facility, expanding its borrowing capacity by $450 million to $2.5 billion. The date until which the Company may borrow under the entire facility has been extended to October 2013.
9:32AM Telvent: BP (BP) Solar selects Telvent control technology for global operations center (announced prior to open) (TLVT) 39.77 +0.04 : Co announced before the open that it has been selected by BP Solar International an alternative energy subsidiary to BP (BP) and one of the world's leading solar companies, to deploy control technology for BP Solar's Global Operations Center initiative.
9:22AM On The Wires (WIRES) :
- Oracle (ORCL) announced that it has entered into an agreement to acquire privately held Endeca Technologies. Terms not disclosed.
- Boston Scientific (BSX) has completed enrollment in a clinical trial to evaluate its WallFlex Biliary RX Fully Covered Stent for the treatment of benign bile duct strictures.
- Zhone Technologies (ZHNE) announced its participation at TelcoTV 2011 at the Morial Convention Center in New Orleans, Oct. 25-27.
- Couchbase announced that DOCOMO Capital, subsidiary of NTT DOCOMO (DCM) has made a strategic investment in the company. Couchbase also announced a strategic customer relationship with DOCOMO Innovations to develop and deploy mobile services using Couchbase's NoSQL database software.
- Euroseas (ESEA) subsidiary entered into a two-year time charter agreement, until September 2013, for the vessel, M/V Monica P at a gross daily rate of $12,375.
- Duke Energy (DUK) announced agreements with Siemens (SI) and Mitsubishi Heavy Industries to provide wind turbines for the two phases of Duke Energy's Los Vientos Windpower Project in Willacy County, Texas. Construction at both project sites will begin in December 2011, with commercial operation of the wind farms anticipated by late 2012.
9:20AM Atwood Oceanics subsidiary entered into a turnkey construction contract with Daewoo Shipbuilding and Marine Engineering to construct an ultra-deepwater drillship at the DSME yard in South Korea (ATW) 40.36 : The Atwood Achiever is expected to be delivered by June 30, 2014 at a total cost, including project management, drilling and handling tools and spares, of approximately $600 million. Financing for the construction of the Atwood Achiever is expected to be provided from a combination of available cash, cash flows from operations and borrowings, as necessary, from the current senior credit facility of Atwood Offshore Worldwide Limited, a wholly-owned subsidiary of the Company. Upon delivery, the Atwood Achiever will become the sixteenth mobile offshore drilling unit owned by the Company.
9:15AM Active Power appoints Jan Lindelow as Interim President and CEO; effective immediately; reaffirms Q3 rev and EPS guidance (ACPW) 1.42 : Co appointed company director Jan Lindelow as interim president and CEO effective immediately. Lindelow succeeds Jim Clishem who has resigned as president and CEO and as a member of the company's board of directors to pursue other interests. Prior to ABB, Lindelow was president of Worldwide Sales and Service at Unisys/Sperry Computer Systems. As previously announced, Active Power expects Q3 2011 guidance to be between $18 mln and $21 mln in revenues with earnings per share between $(0.02) and $0.02. Any changes in cash and investments are expected to be due to changes in working capital requirements.
9:15AM Crude oil futures trade to highs at $86.87; now up 45 cents at $86.83 (COMDX) :
9:14AM Genuine Parts beats by $0.03, beats on revs (GPC) 54.21 : Reports Q3 (Sep) earnings of $0.97 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.94; revenues rose 11.4% year/year to $3.29 bln vs the $3.2 bln consensus. "The Automotive Group posted its fourth consecutive quarter of 9% sales growth. Automotive's strong and consistent growth reflects the positive impact of our sales initiatives and the sound fundamentals that continue to be evident in the automotive aftermarket. Our Industrial and Electrical businesses once again produced the strongest growth among our four business segments. Sales for Motion Industries, our Industrial Group, reached over $1 billion for the second straight quarter and were up 18%. EIS, our Electrical Group, generated a 22% sales increase."
9:09AM Revett Minerals announced third quarter 2011 production from its Troy Mine in northwestern Montana of ~ 402K ounces of silver and over 3.28 mln pounds of copper, a 45% increase in silver and 39% increase in copper YoY (RVM) 3.45 : Mill throughput of 4,370 tons per day and silver production at ~ 402K ounces are the highest quarterly numbers since the mine reopened in late 2004. Cash costs per ounce of silver and per pound of copper improved significantly with the improved production levels. Cash costs for the Q3 of 2011, calculated on a net of by-product basis, were US $4.32 per ounce silver and US $0.69 per pound copper.
9:07AM Tibet Pharma has engaged Sherb & Co. as its new independent auditor (TBET) 1.25 : Co has engaged Sherb & Co. as its new independent auditor. Sherb & Co. will commence its work immediately with the review of the Company's third quarter financial statements, which are to be included in the Company's upcoming form 10-Q. The Company did not have any disagreements with its previous auditor, Acquavella, Chiarelli, Shuster, Berkower & Co., LLP, on any matter of accounting principles or practices, financial statement disclosures or auditing scope or procedure.
9:03AM Echelon appoints Ron Sege as New Chairman of the Board (ELON) 6.98 : Sege follows M. Kenneth Oshman, who passed away in August 2011, as Echelon's chairman of the board. Robert J. Finocchio, Jr. will continue to serve as the lead independent director, or presiding director, for Echelon's board, acting as the principle liaison between Echelon's independent directors and the CEO, as well as between Echelon's independent directors and its shareholders; presiding over meetings of the independent directors; and leading reviews of the governance activities of the Board.
9:02AM Uranium Resources License to Produce Up to 3 Million Pounds of Uranium Gets Reactivated by the NRC (URRE) 0.78 : Co announced that the Nuclear Regulatory Commission reactivated its Source Materials License to conduct in-situ recovery uranium mining in McKinley County, New Mexico. The license, which was originally issued in 1998 to Hydro Resources, Uranium Resources' wholly-owned subsidiary, has been in timely renewal status since 2003. The reactivation effectively enables the use of the license by the Company for the production of uranium as defined in the license.
9:02AM RTI Intl Metals announces agreement to acquire Titanium Forming Division of Aeromet International (RTI) 24.46 : Co announce the signing of a Stock Purchase Agreement with Aeromet International pursuant to which RTI will acquire Aeromet's Forming Division for cash consideration of $34.0 mln. This unit, located in Welwyn Garden City, United Kingdom, engages in hot forming, super plastic forming, diffusion bonding and fabrication of titanium sheet and plate for the aerospace and defense markets. The transaction is expected to close in the fourth quarter of 2011 and be accretive to earnings in 2012.
9:02AM Euroseas subsidiary has entered into a 2-yr time charter agreement, until Sept 2013, for the vessel, M/V Monica P, a 46,667 dwt, 1998 built Handymax bulk carrier at a gross daily rate of $12,375 (ESEA) 3.18 :
9:01AM Hospira sees Q3 EPS and rev below consensus, lowers FY11 EPS guidance below consensus following quality issues brought up by FDA in 2010 (HSP) 37.36 : Co sees preliminary Q3 results below consensus; sees adj. EPS of $0.66 vs $0.95 Capital IQ Consensus Estimate; revs $977 mln vs $1.07 bln Capital IQ Consensus Estimate; co also lowers FY11 adj. EPS to $2.95-3.05 from $3.90-4.00 vs. $3.92. Lower than anticipated results were primarily due to certain quality actions taken in response to a U.S. FDA 2010 warning letter and subsequent observations related to the co's manufacturing facility in Rocky Mount, North Carolina, and device quality and supply-related issues. "While recently launched product sales continue to drive top-line growth, we were extremely disappointed in the third quarter by developments related to our quality-improvement initiatives that resulted in a significant slowdown of production and an associated impact on our operating performance."
9:01AM GeoEye signed a multi-year enterprise agreement with Google (GOOG) to license access to Google Earth Builder (GEOY) 33.92 : Co announced it signed a multi-year enterprise agreement with Google (GOOG) to license access to Google Earth Builder, Google's cloud-based map publishing platform. GeoEye will be using Google Earth Builder to deliver a new set of imagery services that will make it easy for any Google Earth or Google Maps user to access imagery across GeoEye's vast archive. GeoEye will position these new imagery services as an extension of its EyeQ online access portfolio.
9:01AM Teva Pharma: Par Pharmaceutical (PRX) Acquires Three Generic Products From Teva Pharmaceuticals (TEVA) 39.29 : Co announced that it acquired rights to three products from Teva Pharmaceuticals in connection with Teva's acquisition of Cephalon. Under terms of the agreement, Par will own the ANDAs of fentanyl citrate lozenges, a generic version of Actiq, and cyclobenzaprine ER capsules, the generic version of Amrix, as well as the U.S. rights to market modafinil tablets, the generic version of Provigil. According to IMS Health data, annual sales in the U.S. for Actiq and the equivalent generic products are $173 mln. Annual sales in the U.S. for Provigil and Amrix are ~$1.1 bln and $125 mln, respectively.
8:53AM Nuance Communications raises Q4 EPS, rev guidance above consensus (NUAN) 23.60 : Co raises Q4 guidance; raises non-GAAP EPS guidance to $0.41-0.42 from $0.38-0.41 vs $0.40 Capital IQ Consensus Estimate; raises non-GAAP revs to $396-400 mln from $380-395 mln vs $383.39 mln Capital IQ Consensus Estimate (GAAP rev to $363-367 mln from $355.3-370.3 mln). "Year-over-year growth in our mobile, imaging and healthcare businesses, as well as improving trends in our enterprise business, helped to produce strong results in the quarter. We maintained strict focus on our operations and strategic investments while achieving our revenue goals."
8:48AM Nuance Communications announces proposed $600 mln offering of senior convertible debentures (NUAN) 23.61 : Co announced that it intends to offer, subject to market and other considerations, $600.0 mln aggregate principal amount of senior convertible debentures due 2031 through an offering to qualified institutional buyers. In connection with this offering, NUAN intends to grant the initial purchasers a 30-day over-allotment option to purchase up to an additional $90.0 mln aggregate principal amount of Debentures. Proceeds to be used for concurrent share repurchases, potential acquisitions and general corporate purposes.
8:42AM India Globalization Capital signs definitive agreement to acquire a Chinese iron ore processing company (IGC) 0.18 : Co announced acquisition target has fiscal year end March 31, 2011, Audited revenue of 13.5 mln and net after-tax earnings of $5.9 mln, and significant Synergies Between Indian Operations and Chinese Operations. Ram Mukunda, CEO of IGC, said, "PRC Ironman has audited revenues of ~ $13.5 million and ~ $5.9 million in net after tax earnings for FYE March 31, 2011 and a good liquid balance sheet." At closing, which is subject to customary closing conditions including completion of due diligence and approval of the IGC shareholders, IGC will issue 31.5 mln shares of IGC common stock for the purchase of 95% of the equity in PRC Ironman. In addition, the stock purchase agreement provides for a contingent payment by IGC to PRC Ironman's majority shareholder of $1 million payable within 30 days of closing and upon satisfaction of certain post closing covenants. The agreement further provides for certain contingent payments by IGC to PRC Ironman shareholders, as follows $1.5 mln in cash or stock, which is contingent on IGC achieving an earnings growth of at least 30% from the previous year's closing audit and $1.5 mln in cash or stock, which is contingent on IGC achieving an earnings growth of at least 30% from the previous year's closing audit.
8:40AM On The Wires (WIRES) :
- Premier Exhibitions (PRXI) announced it entered into an agreement to purchase the assets of a Titanic-themed exhibition in Orlando, Florida.
- Accenture (ACN) and Conexao announced that the Accenture Foundations have awarded Conexao an additional grant of $1.1 mln to help the organization expand its efforts to provide employment skills for underprivileged young people and mentor local entrepreneurs in Brazil.
- AuthenTec (AUTH) announced that Sky Deutschland has chosen AuthenTec's DRM Fusion Downloadable client to deliver content services to Apple (AAPL) tablets via its new Sky Go application.
- Zipcar (ZIP) announced a further expansion of the company's collection of social and mobile applications and services with the launch of its new "Reserve a Zipcar" Facebook application as a public beta test.
- A new comprehensive economic study of Taseko Mines' (TGB) proposed $1.5 bln New Prosperity Gold Copper Project located in British Columbia reveals that the project would provide a significant economic stimulus to the economy, and create thousands of new jobs for Canada over its 20 year mine life.
- Jacobs Engineering Group (JEC) announced that it received a contract from Arkema to provide engineering procurement and construction management services for two projects, an acrylic acid expansion and a methyl acrylate project, at the company's Clear Lake, Texas operations.
- Eaton (ETN) announced an $8.1 mln contract to provide electrical power distribution system equipment for Abengoa Solar's 280 MW Solana Generating Station, which upon completion, will be one of the largest solar power plants in the world.
- Boston Scientific (BSX) has completed enrollment in a clinical trial to evaluate its WallFlex Biliary RX Fully Covered Stent for the treatment of benign bile duct strictures
8:36AM Hanwha SolarOne will license module mounting and grounding technology from Zep Solar (HSOL) 2.12 : The patented system includes the Zep Groove feature, which is integrated directly into the module frame, and mounting and grounding hardware that connects to the groove, reducing balance of system costs for a quicker, easier and safer installation process.
8:35AM ModusLink Global Solutions has adopted a tax benefit preservation plan to help preserve the value of its net operating losses and other deferred tax benefits (MLNK) 3.99 : Co has adopted a tax benefit preservation plan to help preserve the value of its net operating losses and other deferred tax benefits. As of October 18, 2011, ModusLink had cumulative net operating loss carryforwards of approximately $2.0 billion, which can be utilized in certain circumstances to offset future U.S. taxable income.
8:34AM Dover has acquired Oil Lift Technology; Terms of the transaction were not disclosed (DOV) 51.79 : Co has acquired Oil Lift Technology, designer and manufacturer of progressive cavity pump products within the artificial lift systems market, based in Calgary, Alberta, Canada. Terms of the transaction were not disclosed.
8:33AM FirstEnergy and Boich Companies subsidiaries announced that Pinesdale has purchased a one-third interest in the venture for $400 mln (FE) 44.08 : Co and Boich Companies subsidiaries that jointly own the Signal Peak coal mine in Montana announced that Pinesdale, a fully owned subsidiary of the Gunvor Group, has purchased a one-third interest in the venture for $400 million. As part of the transaction, FirstEnergy will receive nearly $260 million of the proceeds. Additionally, the transaction will reduce FirstEnergy debt by approximately $360 million due to deconsolidation and will result in an estimated gain for FirstEnergy of $390 million due to the revaluation of the asset.
8:33AM Crosshair Exp. & Mining announced it has drilled 0.08% eU3O8 over 7.5 feet at Bootheel (CXZ) 0.49 : Co says "The drilling is progressing well and the initial results are consistent with the broad outlines of the known mineralization. Drilling and hydrological testing to be carried out this month will increase our knowledge and the data in preparation for the 2012 PEA." The initial independent NI 43-101 Mineral Resource estimate on the Bootheel Property includes an indicated resource of 1.09 million pounds of uranium oxide (1.44 million tons at 0.038% eU3O8) and an additional inferred resource of 3.25 million pounds of uranium oxide (4.40 million tons at 0.037% eU3O8).
8:32AM Flamel entered into a multi-year supply agreement with GlaxoSmithKline (GSK) for the production of Coreg CR microparticles (FLML) 4.76 : Co announced that it has entered into a multi-year supply agreement with GlaxoSmithKline (GSK) for the production of Coreg CR microparticles. Flamel Technologies is the sole supplier of Coreg CR microparticles for GSK. Under the agreement, Flamel will receive guaranteed minimum payments to supply Coreg CR microparticles over a period of several years. The agreement defines the manufacturing relationship between the two companies following the expiration of the previous supply agreement on December 31, 2010. Pursuant to the agreement, Flamel received a payment of EUR1.3 MM during the third quarter and anticipates a further EUR1.3 MM payment to be paid in the next ten days, as well as the higher
8:31AM PAETEC Holding: ISS recommends stockholders vote for proposed merger with Windstream (WIN) (PAET) 5.55 :
8:12AM PPG Industries finalizes agreement to purchase Dyrup A/S, sets January closing date; final transaction value, including assumed debt set at EUR115 mln (PPG) 77.81 : Co announced that it has finalized the purchase agreement to acquire European coatings company Dyrup A/S, based in Copenhagen, Denmark, from its owner, Monberg & Thorsen, a public holding company. The final transaction value, including assumed debt, has been set at EUR115 mln ($160 mln), based on final due diligence. Both parties have agreed on a closing date of Jan. 5, 2012.
8:07AM SYSWIN announced the appointment of Mr. Ray Han to the position of Chief Financial Officer (SYSW) 1.97 : Mr. Kai Li, the current Chief Financial Officer, is leaving the Company to pursue a new opportunity, and will hand over responsibilities including financial planning and management, internal control, investor relations and corporate communications to Mr. Han in a transition period.
8:07AM W.W. Grainger beats by $0.11, reports revs in-line; raises FY11 EPS above consensus, raises revs, in-line (GWW) 155.09 : Reports Q3 (Sep) earnings of $2.44 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus Estimate of $2.33; revenues rose 11.4% year/year to $2.12 bln vs the $2.1 bln consensus, consisting of 8 percent volume growth, 3 percentage points from price, 2 percentage points from acquisitions and 1 percentage point from foreign exchange. Sales growth for the quarter was negatively affected by 3 percentage points due to sales in 2010 related to the oil spill clean up in the Gulf of Mexico. On a daily basis, sales increased 10 percent in July, 10 percent in August and 14 percent in September. Excluding Fabory, sales on a daily basis in September grew 10 percent. Co issues guidance for FY11, raises EPS to $8.80-9.00 from $8.40-8.70 vs. $8.75 Capital IQ Consensus Estimate; raises FY11 revs growth to +11-12% to ~$7.97-8.04 bln from +9-10%, vs. $8.01 bln Capital IQ Consensus Estimate.
8:05AM Tudou announced that it has entered into an agreement with Leshi Internet Information & Technology to form a joint venture company in Shanghai (TUDO) 16.40 : Co announced that it has entered into an agreement with Leshi Internet Information & Technology through its affiliate Shanghai Quan Toodou Network Science and Technology to form a joint venture company in Shanghai. The newly established joint venture company will be primarily engaged in licensing video content to meet internet users' growing demands and evolving preferences, supplementing each company's independent content acquisition strategies. Under the agreement, LeTV and Tudou will receive a 51% and 49% equity interest in the joint venture company, respectively, in exchange for cash investment of RMB510,000 and RMB490,000, respectively. LeTV and Tudou will together assess which video content to purchase based on the quality of the content as well as viewer preferences. The joint venture company will seek exclusive licensing rights as well as sub-licensing rights for a majority of the purchased content.
8:05AM Kodiak Oil & Gas says ten new high-working-interest wells provide production growth 187% and 53% quarterly and sequential sales volume growth (KOG) 5.53 : Co notes that ten new high-working-interest wells provide production growth 187% and 53% quarterly and sequential sales volume growth. The Company took delivery of its fifth operated rig in early October. Kodiak's five operated drilling rigs are presently drilling ahead on multi-well drilling pads, with three rigs in McKenzie County, N.D. and two in Dunn County, N.D. During September and continuing into early October, Kodiak completed five gross (four net) operated wells, bringing total third quarter completions on operated wells to seven gross (five net) wells. Initial production results from the wells completed in September and October are included in the table below. The results from wells completed earlier in the third quarter have previously been released. "With the addition of these new wells, our current production is approximately 7,500 to 8,000 BOE/d. With the six net operated wells scheduled for completion during the fourth quarter, as well as the ongoing non-operated completion work within the Dunn County AMI area, we feel confident in our earlier 2011 exit rate guidance of 9,000 BOE/d. These volumes do not include volumes associated with our pending acquisition, which is on track to close in late October."
8:05AM China Botanic Pharma appoints Zack Zibing Pan as an Independent Director and Chairman of its Audit Committee (CBP) 0.79 : Pan is currently the Chief Financial Officer of Biostar Pharmaceuticals.
8:05AM Full House Resorts expects to take a Q3 non-cash goodwill impairment charge of ~ $4.5 mln ($2.7 million on an after-tax basis) related to its Stockman's Casino (FLL) 2.73 : The charge is being recognized due to a decline of operating results at Stockman's resulting from the weak economic conditions in Northern Nevada and slower than expected improvement from changes made in marketing programs. In addition, the co expects to record a valuation charge against its remaining tribal receivables in the amount of $420,000 ($257,000 on an after-tax basis) as a result of slower than expected progress by the Nambe Pueblo in securing financing for their proposed casino facility amid a weak credit environment.
8:04AM PMFG Inc announced that it has filed a registration statement with the SEC which will allow the Company to sell, from time to time, up to $120 million of the co's equity securities in one or more offerings (PMFG) 17.24 : Co announced that it has filed a registration statement with the SEC/ When declared effective by the SEC, this registration statement will allow the Company to sell, from time to time, up to $120 mln of the Company's equity securities in one or more offerings. The proposed registration statement is intended to give the Company greater flexibility to raise funds from the offering of its equity securities, subject to market conditions and the Company's capital needs. The terms of any offering under the registration statement will be established at the time of the offering.
8:03AM Allied Nevada provide highlights from recent drilling at its wholly owned Hasbrouck project; recent assay results indicate extension of the previously discovered higher grade Saddle, Franco and Crossroad zones (ANV) 36.59 : Co provided highlights from recent drilling at its wholly owned Hasbrouck project, located five miles south of Tonopah, Nevada. Recent assay results indicate extension of the previously discovered higher grade Saddle, Franco and Crossroad zones. To date, Allied Nevada has drilled 26,023 meters in 106 holes at Hasbrouck. The drill program has been primarily directed towards resource expansion and further definition of the high grade potential. Allied Nevada concluded its second round of follow up drilling at Hasbrouck to define the higher grade zones. This drilling (holes 73, 82, 83 & 91) confirmed continuity of the Saddle Zone to the west including 24 meters of 2.1 g/t Au and 9 g/t Ag.
8:03AM Forest Labs misses by $0.08, beats on revs; reaffirms FY12 EPS guidance (FRX) 32.13 : Reports Q2 (Sep) earnings of $0.91 per share, $0.08 worse than the Capital IQ Consensus Estimate of $0.99; revenues rose 7.4% year/year to $1.17 bln vs the $1.15 bln consensus. Co reaffirms guidance for FY12, sees EPS of $3.60-3.70 vs. $3.73 Capital IQ Consensus Estimate.
8:03AM Spectrum Brands approves new $30 mln common stock repurchase program; effective for 12 months (SPB) 24.77 :
8:02AM UniFirst beats by $0.05, beats on revs; guides FY12 EPS below consensus, revs in-line (UNF) 50.05 : Reports Q4 (Aug) earnings of $0.90 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.85; revenues rose 14.1% year/year to $290.9 mln vs the $281.8 mln consensus. Co issues mixed guidance for FY12, sees EPS of $3.65-3.95 vs. $4.00 Capital IQ Consensus Estimate; sees FY12 revs of $1.195-1.220 vs. $1.2 bln Capital IQ Consensus Estimate.
8:01AM Gasco Energy provides third quarter 2011 operations update; currently has an inventory of 18 operated wells with up-hole recompletions (GSX) 0.21 -0.01 : Estimated cumulative net production for the quarter ended September 30, 2011 was 930.3 million cubic feet equivalent (MMcfe), an 18.4% decrease from Q310 production of 1,140 MMcfe. The 16.0% decline in sequential quarterly equivalent production, 930.3 MMcfe in Q311, as compared to 1,108.1 MMcfe in Q211, is attributed to a third-party gathering company's high line pressures (8%), unusually high compressor downtime (2%) and to the normal decline associated with tight sand reservoirs. Normal sequential quarterly decline would be approximately 4%. Gasco understands that the gathering system operator has devised a plan to reduce the line pressures and that it expects to implement the plan during the fourth quarter 2011. Gasco had decreased liquids volumes due to workover operations, compressor downtime and normal production declines. Gasco produced approximately 8,424 barrels of liquids during Q311. This compares to 12,904 barrels of liquids production during Q211, or a 34.9% decline.
8:01AM CB Richard Ellis announces plans for $250 mln equivalent senior secured sterling term loan A-1 facility (CBG) 14.32 : The new facility, which will mature in May 2016, enables the co to capitalize on the current low interest rate environment, and enhance its overall financial flexibility.
7:52AM Silver futures now at fresh lows at $30.66; currently lower by $1.17 to $30.65 (COMDX) :
7:49AM Johnson & Johnson beats by $0.03, reports revs in-line; raises FY11 EPS, in-line (JNJ) 63.79 : Reports Q3 (Sep) earnings of $1.24 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $1.21; revenues rose 6.8% year/year to $16 bln vs the $16.02 bln consensus. Co issues in-line guidance for FY11, raises EPS to $4.95-5.00, excluding non-recurring items, from $4.90-5.00 vs. $4.96 Capital IQ Consensus Estimate. Worldwide Consumer sales of $3.7 bln for the third quarter represented an increase of 4.9% vs. the prior year consisting of an operational increase of 0.5% and a positive impact from currency of 4.4%. Domestic sales declined 4.5%. International sales increased 10.1%, which reflected an operational increase of 3.3% and a positive currency impact of 6.8%. Worldwide Pharmaceutical sales of $6.0 bln for the third quarter represented an increase of 8.9% vs. the prior year with operational growth of 4.9% and a positive impact from currency of 4.0%. Domestic sales declined 6.1%. International sales increased 27.5%, which reflected an operational increase of 18.5% and a positive currency impact of 9.0%.
7:48AM Further selling in gold futures, with fresh lows at $1645; now off $27.90 to $1649 (COMDX) :
7:42AM On The Wires (WIRES) :
- KMT Waterjet Systems has successfully resolved a patent infringement challenge from Flow International (FLOW) on their U.S. Patent No. 6,802,541 pertaining to gasketless sealing of high pressure cylinders.
- DigitalOptics (TSRA) announced that it has partnered with Celluon to deliver a custom diffractive optical element that projects a virtual computer keyboard.
- Dollar Thrifty Automotive (DTG) announced it has extended its agreement with Orbitz Worldwide (OWW) to distribute its Dollar Rent A Car and Thrifty Car Rental brands through Orbitz sites until the end of 2014.
- ICF International (ICFI) has been awarded a re-compete contract to support a major utility energy efficiency new construction program. The contract has a value of $6.7 million and a term of 17 months.
- Triple-S Management (GTS) announced that its Triple-S Salud subsidiary signed yesterday a definitive agreement with the Puerto Rico Health Insurance Administration to administer healthcare services for the Metro North, North, San Juan, Northeast and West regions of Puerto Rico's health insurance program known as MiSalud.
- Microsemi (MSCC) announced that its technology has once again been chosen by the Umicore Belgian Solar Team to help fuel its bid to win the grueling Veolia World Solar Challenge, an endurance event from Darwin to Adelaide for solar powered cars.
- Rogers Corporation (ROG) and Hitachi Chemical announced that they have entered into a strategic collaboration agreement to expand global adoption and improve customer support of printed circuit board materials for use in high speed digital applications.
- EMCOR Group (EME) announced that its Harry Pepper & Associates subsidiary has been awarded a contract by the U.S. Army Corps of Engineers for $42 mln to replace two culverts that control water flow for Lake Okeechobee.
- Alliance Data Systems (ADS) announced that it has signed a long-term extension agreement with a subsidiary of Express (EXPR) to continue providing private label credit card and marketing services for Express.
7:42AM Coca-Cola beats by $0.01, beats on revs (KO) 67.00 : Reports Q3 (Sep) earnings of $1.03 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.02; revenues rose 45.4% year/year to $12.25 bln vs the $12.02 bln consensus. with comparable net revenue also up 45%. This reflects a 5% increase in concentrate sales, a 5% currency benefit, positive price/mix and the acquisition of CCE's former North America operations, partially offset by the effect of structural changes. Concentrate sales in the quarter were in line with unit case sales and were slightly ahead of unit case sales year-to-date. The positive price/mix in the quarter reflects international and Bottling Investments Group price/mix of 2%. In North America, we achieved 2% positive pricing to retailers in the quarter, driven by 3% positive pricing on sparkling beverages. This reflects our fundamental belief in executing pricing within a disciplined commercial framework that considers rate increases in concert with occasion-based package mix levers, balancing overall category health with volume, value and pricing growth. As a result, we grew global NARTD value share for the 17th consecutive quarter, driven by global share growth across sparkling and still beverages. Reported cost of goods sold was up 67% in the quarter. Q3 reported operating income increased 17%, with comparable operating income up 21%. Coca-Cola Refreshments integration efforts are on plan, with expected 2011 net cost synergies of $140 to $150 million. Co-wide productivity initiatives are well on track to exceed the upper end of the original target range of $400-500 mln in annualized savings by year-end 2011, the final year of the four-year program. "On a year-to-date basis, our net share repurchases stand at $2.2 bln. We are now planning to increase our share repurchase program with a plan to purchase at least $2.5 bln to $3.0 bln in net shares by year end."
7:41AM Goldman Sachs misses by $0.68, misses on revs (GS) : Reports Q3 (Sep) loss of $0.84 per share, $0.68 worse than the Capital IQ Consensus Estimate of ($0.16); revenues fell 60% year/year to $3.59 bln vs the $4.31 bln consensus. "CEO and investor confidence as well as asset prices across markets were lower in the third quarter given the uncertain macroeconomic and market conditions. Our results were significantly impacted by the environment and we were disappointed to record a loss in the quarter," said Lloyd C. Blankfein, Chairman and Chief Executive Officer.
Net revenues in Investment Banking were $781 million, 33% lower than the third quarter of 2010 and 46% lower than the second quarter of 2011. Net revenues in Financial Advisory were $523 million, up slightly from the third quarter of 2010. Net revenues in the firm's Underwriting business were $258 million, 61% lower than the third quarter of 2010. Net revenues in both equity underwriting and debt underwriting were significantly lower than the third quarter of 2010, reflecting a significant decline in industry-wide activity. The firm's investment banking transaction backlog increased compared with the end of the second quarter of 2011.
Net revenues in Institutional Client Services were $4.06 billion, 13% lower than the third quarter of 2010 and 16% higher than the second quarter of 2011. Net revenues in Fixed Income, Currency and Commodities Client Execution were $1.73 billion, 36% lower than the third quarter of 2010. During the quarter, global economic uncertainty intensified, resulting in volatile markets and significantly wider credit spreads. Although these factors contributed to difficult market-making conditions, particularly in credit products, mortgages and currencies, activity levels were generally consistent with the prior quarter. The decline in net revenues compared with the third quarter of 2010 reflected significantly lower results in credit products, mortgages and, to a lesser extent, currencies. Net revenues in Equities were $2.33 billion, 18% higher than the third quarter of 2010. This increase was primarily due to significantly higher commissions and fees, reflecting higher transaction volumes.
Operating expenses were $4.32 billion, 29% lower than the third quarter of 2010 and 24% lower than the second quarter of 2011. The accrual for compensation and benefits expenses (including salaries, estimated year-end discretionary compensation, amortization of equity awards and other items such as benefits) was $1.58 billion for the third quarter of 2011, a 59% decline compared with the third quarter of 2010. The ratio of compensation and benefits to net revenues for the first nine months of 2011 was 44.0%.
As of September 30, 2011, total capital was $245.74 billion, consisting of $70.09 billion in total shareholders' equity (common shareholders' equity of $66.99 billion and preferred stock of $3.10 billion) and $175.65 billion in unsecured long-term borrowings. Book value per common share was $131.09 and tangible book value per common share (9) was $120.41, both essentially unchanged compared with the end of the second quarter of 2011.
Net revenues in Investment Banking were $781 million, 33% lower than the third quarter of 2010 and 46% lower than the second quarter of 2011. Net revenues in Financial Advisory were $523 million, up slightly from the third quarter of 2010. Net revenues in the firm's Underwriting business were $258 million, 61% lower than the third quarter of 2010. Net revenues in both equity underwriting and debt underwriting were significantly lower than the third quarter of 2010, reflecting a significant decline in industry-wide activity. The firm's investment banking transaction backlog increased compared with the end of the second quarter of 2011.
Net revenues in Institutional Client Services were $4.06 billion, 13% lower than the third quarter of 2010 and 16% higher than the second quarter of 2011. Net revenues in Fixed Income, Currency and Commodities Client Execution were $1.73 billion, 36% lower than the third quarter of 2010. During the quarter, global economic uncertainty intensified, resulting in volatile markets and significantly wider credit spreads. Although these factors contributed to difficult market-making conditions, particularly in credit products, mortgages and currencies, activity levels were generally consistent with the prior quarter. The decline in net revenues compared with the third quarter of 2010 reflected significantly lower results in credit products, mortgages and, to a lesser extent, currencies. Net revenues in Equities were $2.33 billion, 18% higher than the third quarter of 2010. This increase was primarily due to significantly higher commissions and fees, reflecting higher transaction volumes.
Operating expenses were $4.32 billion, 29% lower than the third quarter of 2010 and 24% lower than the second quarter of 2011. The accrual for compensation and benefits expenses (including salaries, estimated year-end discretionary compensation, amortization of equity awards and other items such as benefits) was $1.58 billion for the third quarter of 2011, a 59% decline compared with the third quarter of 2010. The ratio of compensation and benefits to net revenues for the first nine months of 2011 was 44.0%.
As of September 30, 2011, total capital was $245.74 billion, consisting of $70.09 billion in total shareholders' equity (common shareholders' equity of $66.99 billion and preferred stock of $3.10 billion) and $175.65 billion in unsecured long-term borrowings. Book value per common share was $131.09 and tangible book value per common share (9) was $120.41, both essentially unchanged compared with the end of the second quarter of 2011.
7:38AM Gold futures trde to lows at $1655.10; now off $21.40 to $1655.20 (COMDX) :
7:35AM Parker-Hannifin beats by $0.22, beats on revs; raises FY12 EPS guidance above consensus (PH) 72.71 : Reports Q1 (Sep) earnings of $1.91 per share, $0.22 better than the Capital IQ Consensus Estimate of $1.69; revenues rose 14.3% year/year to $3.23 bln vs the $3.2 bln consensus. Co issues upside guidance for FY12, raises EPS to $7.25-7.85 from $6.70-7.50 vs. $7.08 Capital IQ Consensus Estimate. Q1 orders +9% YoY. "We are increasing diluted earnings per share guidance for the year largely based upon our strong first quarter performance, a lower share count and growth in order entry... Record first quarter sales were driven by strong organic sales growth of 10 percent, while foreign currency translation contributed 3 percent and acquisitions contributed 1 percent. I am particularly pleased that we generated an all-time quarterly record for total segment operating margins of 16.1 percent reflecting our focus on driving operational excellence across the organization. Segment operating margins were particularly strong in our North America Industrial segment at 18.5 percent, while our Aerospace segment demonstrated the strongest year-over-year improvement in operating margins."
7:33AM Domino's Pizza beats by $0.02, beats on revs (DPZ) 27.86 : Reports Q3 (Sep) earnings of $0.36 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.34; revenues rose 8.3% year/year to $376.3 mln vs the $372.3 mln consensus. Domestic same store sales rose 3.0% versus the year-ago period. The International division posted another outstanding quarter with same store sales growth of 8.1% in the third quarter. During the third quarter of 2011, the co repurchased and retired 3,163,060 shares of its common stock under its open market share repurchase program for a total cost of ~$81.9 mln, or an average price of $25.87 per share.
7:31AM CPI Corp is currently out of compliance with the NYSE listing standards (CPY) 6.86 : Co intends to submit its plan within the required time frame. During this period, the Company's shares will continue to be listed on the NYSE, subject to compliance with other NYSE continued listing standards.
7:31AM Lexmark acquires BPM, DOM and process mining software co Pallas Athena for $50.2 mln in cash transaction (LXK) 29.28 : Pallas Athena is a provider of BPM, DOM and process mining software, with industry experience in the insurance, government and life sciences segments. Pallas Athena's software products enable a broad range of BPM capabilities, which includes dynamic case management and customer communications management. Key differentiators of its software products include ease of implementation and an intuitive user interface.
7:30AM RF Industries Board of Directors allocates $1.25 mln for repurchase of the company's outstanding common stock (RFIL) 2.99 :
7:30AM Harbin Electric: Glass Lewis recommends that Harbin Electric shareholders vote for proposed $24 per share cash 'going private' transaction (HRBN) 22.44 :
7:29AM State Street beats by $0.07, beats on revs (STT) 33.87 : Reports Q3 (Sep) earnings of $0.96 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.89; revenues rose 12.0% year/year to $2.41 bln vs the $2.39 bln consensus. Total assets were $208.2 bln and $190.5 bln and included $33.7 bln and $22.1 bln of excess deposits held at the Federal Reserve and other central banks at September 30, 2011 and June 30, 2011, respectively. Co's Tier 1 capital ratio was 18.0% vs 18.9% in Q2. Regarding its outlook, co states: "As we approach the end of 2011 and plan for 2012, we expect to face a prolonged, worldwide low interest-rate environment, constrained economic growth, anticipated higher capital requirements, and increased regulatory and compliance costs. We are addressing these challenges by remaining focused on our clients and growing our business, while controlling expenses with a goal of continuing to generate positive operating leverage."
7:23AM Ampio Pharma announces a Proof of Concept trial of Danazol in the treatment of allergic rhinitis supports mechanism of action of optina (AMPE) 7.54 : Co announced that it has demonstrated in an IRB approved, randomized, placebo controlled, double-blinded proof of concept study, that low dose intranasal danazol has an impact on allergic rhinitis, a clinical condition in which increases in vascular permeability and edema are hallmark signs. The study was not powered to show statistical significance as an effective treatment for rhinitis but rather intended to investigate the effect of danazol in a clinical condition associated with vascular permeability and edema. After a 7 day washout period, patients were treated twice a day for 14 days with either placebo or low-dose intranasal danazol and assessed two times per day using the validated Total Nasal Symptom Score. A larger decrease in TNSS indicates a greater improvement in symptoms. A comparison of the PM score showed a strong trend toward efficacy, with a total mean change between washout and treatment of -2.39 for the treatment group compared to -0.34 for the placebo
7:07AM Harley-Davidson beats by $0.02, misses on revs; reiterates FY shipments; lowers GM guidance (HOG) 37.21 : Reports Q3 (Sep) earnings of $0.78 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.76; revenues rose 13.4% year/year to $1.23 bln vs the $1.29 bln consensus. On a worldwide basis, third-quarter retail Harley-Davidson new motorcycle sales grew 5.1 percent compared to last year's third quarter to 61,838 units. Co continues to expect to ship 228,000-235,000 Harley-Davidson motorcycles to dealers and distributors worldwide in 2011, including 45,500-52,500 motorcycles in the fourth quarter. For the full year, co now expects gross margin to be between 33.5-34.5%, compared to previous guidance of 34.0-35.0%. The co continues to expect capital expenditures of between $210-230 mln, which includes $70-85 mln to support restructuring activities.
7:04AM Primero Mining announces commencement of advance tax ruling process in Mexico and provides update on tax strategies; seeking taxes be based on realized revenue (PPP) 2.85 : Co announced that it has filed a formal application to the Mexican tax authorities for an advance ruling on the Company's restructuring plan that, if successful, would result in paying income taxes in Mexico based on realized rather than spot revenue. When completed, the advance tax ruling process will provide certainty and resolution to the Company's restructuring plan. It will also ensure the Company will avoid tax penalties that could arise should the Mexican tax authorities disagree with the restructuring plan... The Company has received "should-level" opinions from three professional advisors in support of its restructuring plan (meaning in their opinion the expected chance of success is considered to be greater than 70%). Although these opinions are encouraging, there remains uncertainty at this time about the likelihood of a successful outcome. The Company will provide regular updates in the future as the APA process progresses.
7:02AM Given Imaging announces new study shows impact of PillCam SB on Management of symptomatic IBD cases; more than 60% of Crohn's patients had a change in medication within three months of pillcam Capsule Endoscopy (GIVN) 16.18 : The study's authors found that among the patients in the study with Crohn's disease, 61.6% of them had their medications changed within three months of receiving PillCam capsule endoscopy. 39.5 percent of patients with Crohn's disease had a new IBD medication initiated. 66.7% of indeterminate colitis patients had a change in medication management. Co stated " "This study adds to the large body of clinical evidence supporting the updated FDA clearance for PillCam SB to detect and monitor lesions that may indicate Crohn's disease,"
7:02AM Omnicom beats by $0.02, beats on revs (OMC) 41.80 : Reports Q3 (Sep) earnings of $0.72 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.70; revenues rose 12.9% year/year to $3.38 bln vs the $3.31 bln consensus.
6:53AM EMC beats by $0.01, beats on revs; guides FY11 EPS above consensus, revs in-line (EMC) 22.68 : Reports Q3 (Sep) earnings of $0.37 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.36; revenues rose 18.2% year/year to $4.98 bln vs the $4.93 bln consensus. Co issues upside EPS guidance for FY11, sees EPS of to exceed $1.48 vs. $1.48 Capital IQ Consensus Estimate; sees FY11 revs of to exceed $19.8 bln vs. $19.88 bln Capital IQ Consensus Estimate. Co expects to repurchase $2 bln of the common stock in 2011.
6:45AM Conceptus announced last night that it has won a favorable verdict in patent litigation against Hologic (HOLX) - Jury awards Conceptus $18.8 mln (CPTS) 10.47 : Co announced last night that it has won a favorable jury verdict in its patent infringement lawsuit against Hologic (HOLX) in the United States District Court, Northern District of California. The jury has awarded Conceptus $18.8 mln in monetary damages. The jury found that use of Hologic's Adiana Permanent Contraception system infringed two claims of Conceptus' U.S. Patent related to the Essure procedure, and that Hologic indirectly infringed those claims. The jury also upheld the validity of the claims.
6:33AM JAKKS Pacific misses by $0.13, misses on revs; guides FY11 EPS below consensus, revs below consensus (JAKK) 18.35 : Reports Q3 (Sep) earnings of $1.11 per share, excluding non-recurring items, $0.13 worse than the Capital IQ Consensus Estimate of $1.24; revenues fell 4.7% year/year to $332.4 mln vs the $356.3 mln consensus. Co issues downside guidance for FY11, sees EPS of $1.32-1.35 vs. $1.43 Capital IQ Consensus Estimate; sees FY11 revs of $770-775 mln vs. $778.80 mln Capital IQ Consensus Estimate.
6:31AM Socket Communications enters into new bank revolving credit line agreements (SCKT) 2.29 : Co reported that it has entered into new domestic and international working capital revolving credit line agreements with Silicon Valley Bank and has activated the lines. Pursuant to these agreements, the co may borrow up to $2.5 mln, of which up to $1.5 mln is based on qualified receivables from U.S. based customers and up to $1.0 mln is based on qualified receivables from international customers.
6:09AM On The Wires (WIRES) :
- Acacia Research (ACTG) announced that its subsidiary Advanced Processor Technologies has entered into a settlement and license agreement with Digi International.
- Lockheed Martin (LMT) announced a $383 mln contract to maintain, operate and sustain the Persistent Threat Detection Systems.
6:06AM UnitedHealth beats by $0.05, reports revs in-line; guides FY11 EPS above consensus, revs in-line (UNH) 46.60 : Reports Q3 (Sep) earnings of $1.17 per share, $0.05 better than the Capital IQ Consensus Estimate of $1.12; revenues rose 6.8% year/year to $25.28 bln vs the $25.43 bln consensus. Co issues upside EPS guidance for FY11, sees EPS of $4.40-4.45 vs. $4.38 Capital IQ Consensus Estimate; sees FY11 revs of to exceed $101 bln vs. $101.51 bln Capital IQ Consensus Estimate. Co's quarter-end debt to debt-plus-equity ratio of 30% was consistent year-over-year. Year-to-date, annualized return on equity was 19.2%. UnitedHealth Group paid $172 mln in dividends in the third quarter of 2011, an increase of 24% year-over-year. The third quarter 2011 medical care ratio of 80.7% increased 60 basis points year-over-year. Favorable reserve development of $200 mln in third quarter 2011 included $90 mln from prior years as compared to $230 mln in the third quarter of 2010, $80 mln of which related to prior years. Medical cost trends continue to be driven principally by unit cost increases. Co repurchased nearly 18 mln shares for $839 mln in the third quarter, bringing year-to-date repurchase activity to 46 mln shares for $2.1 bln.
6:02AM Susser expects to report same-store merchandise sales growth for the Q3 of 2011 of ~ 7.4% versus the Q3 of 2010 (SUSS) 19.98 : Retail average per-store fuel volumes are expected to increase by 5.6% YoY. For the first three quarters of 2011, Co expects same-store merchandise sales growth of 6.3% and retail average per-store fuel volume growth of 4.1% versus the comparable period in 2010.
6:01AM Range Resources provides operations update; Q3 production volumes averaged 537.2 Mmcfe net per day, a 7% increase over the prior-year quarter (RRC) 72.94 : In April of this year, Range sold its Barnett Shale properties which, at that time, represented ~20% of the co's total production. Adjusting for the Barnett sale, Q3 production volumes would have increased 27%. Q3 production volumes also materially exceeded Company guidance of 515 - 520 Mmcfe per day due to infrastructure build-out proceeding faster than anticipated. Q3 production was 76% natural gas, 17% natural gas liquids and 7% crude oil. Year-over-year, oil production increased by 13%, NGL production rose 11%, while natural gas production increased 5%. The greater relative increase in oil and NGL production is due to Range's capital spending emphasis in its liquids-rich plays. Co also announced its preliminary Q3 2011 commodity price realizations averaged $5.73 per mcfe. Preliminary Q3 production and realized prices by each commodity are: natural gas - 410.5 Mmcfe per day, natural gas liquids - 15,429 barrels per day ($49.52 per barrel) and crude oil - 5,681 barrels per day ($81.70 per barrel).
5:36AM On The Wires (WIRES) :
- Level 3 Communications (LVLT) announced that it has been selected to provide content delivery network services to support the online delivery of game content for Tahadi Games, a leading online games publisher in the Middle East.
- LDK Solar (LDK) announced that the co has signed an engineering, procurement and construction agreement with Guodian Longyuan Zhangye New Energy Limited for a project located in Zhangye City in the Gansu province of China.
- CommVault (CVLT) is partnering with UK-based IT solution provider Softcat to launch its Service Provider License Agreement programme.
- ARM and TSMC (TSM) announced that they have taped out the first 20nm ARM Cortex-A15 MPCore processor.
- Western Union (WU) announced an agreement with FOREX Bank to offer money transfer services in Europe's Nordic region. FOREX will offer the Western Union service at 100 Agent locations in Denmark, Finland, Norway and Sweden.
- China TechFaith Wireless Communication Technology (CNTF) announced it will re-enter the Japanese market in the fourth quarter of 2011.
- Tranzyme Pharma (TZYM) announced the appointment of Franck Rousseau, M.D. to the newly created position of Chief Medical Officer.
5:25AM Check Point Software beats by $0.03, reports revs in-line (CHKP) 58.03 : Reports Q3 (Sep) earnings of $0.72 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.69; revenues rose 12.8% year/year to $308.3 mln vs the $307.1 mln consensus. With regard to co's share repurchase program during the third quarter of 2011, the co repurchased 1.37 mln shares at a total cost of $75 mln.
2:16AM On The Wires (WIRES) :
- Lear (LEA) reported that it, along with several other suppliers of automotive wire harnesses, has been sued in civil litigation alleging violations of federal and state antitrust and related laws. The co believes that the claims against it alleging anti-competitive behavior are completely without merit, and will vigorously defend itself in any litigation related to such claims.
- Quad/Graphics (QUAD) announced that it will cease production at its Richmond, Virginia, and Stillwater, Oklahoma, facilities as part of its ongoing plan to integrate operations following the Company's July 2, 2010, acquisition of Worldcolor.
- Granite City Food & Brewery (GCFB) announced that it is in the process of enhancing four of its higher margin stores with the expectation that the improvements will be completed for the upcoming holiday season. The upgrades are consistent with the Company's goal to improve the customer experience and drive continued growth through strategic investment in existing and new stores.
- Conceptus (CPTS) announced that it has won a favorable jury verdict in its patent infringement lawsuit against Hologic (HOLX) in the United States District Court, Northern District of California. The jury has awarded Conceptus $18.8 mln in monetary damages.
- Entropic Communications (ENTR) and H3C Technologies, a wholly-owned subsidiary of Hewlett-Packard (HPQ) announced a partnership to deliver next generation broadband access solutions to enable the delivery of both video and broadband services to subscribers in multi-dwelling units over the existing coaxial cable.
- Western Copper and Gold (WRN) announced the spin-out of Copper North Mining and NorthIsle Copper and Gold and the re-naming of Western Copper from Western Copper Corporation to Western Copper and Gold have been completed. Copper North and NorthIsle have also received conditional listing approval from the TSX Venture Exchange.
- AES (AES) announced that the co has redefined its operational management and organizational structure around two business lines - Utilities and Generation.
- DTS (DTSI) announced today the opening of its newest office: the DTS Singapore Technology Center. This is a key strategic move to establish an R&D and customer response facility in Asia with close proximity to many of the company's significant customers.
1:23AM Equity Lifestyle Properties beats by $0.03, beats on revs (ELS) 62.32 : Reports Q3 (Sep) funds from operations of $0.73 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.70; revenues rose 20.3% year/year to $161.4 mln vs the $129.2 mln consensus.
1:19AM Halozyme Therapeutics provides results from Roche's (RHHBY) subcutaneous herceptin Phase 3 Trial (HALO) 6.20 : Co announces that the Phase 3 HannaH trial, conducted by Roche, showed that women with HER2-positive early breast cancer who received a new, investigational subcutaneous injection of Herceptin, experienced comparable results to Herceptin given as an intravenous infusion. The SC administration takes around 5 minutes to administer whereas the IV formulation takes around 30 minutes to infuse. Since the subcutaneous administration is an injection under the skin it may allow patients to spend less time in hospital receiving their treatment versus the intravenous method. The ready to use formulation may also significantly reduce pharmacy time as no medicine preparation time is required. No new safety signals were observed and adverse events were overall consistent with Herceptin IV.
1:17AM Valeant Pharmaceuticals reports results of friendly offer for Afexa Life Sciences; takes-up 73.8% of the outstanding common shares of Afexa on a fully-diluted basis (VRX) 36.22 : Co announces that a total of 80,929,921 common shares of Afexa were validly deposited at the expiry time of the offer by its wholly-owned subsidiary to acquire all outstanding common shares of Afexa Life Sciences. the Offeror has taken up all of the deposited common shares. Afexa's shareholders who tendered to the offer will receive CAD0.85 per share in cash which will be paid to Afexa's shareholders in accordance with the terms of the offer. Accordingly, co holds ~73.8% of the outstanding common shares of Afexa on a fully-diluted basis. As a result, the Offeror is in a position to privatize Afexa by completing a subsequent acquisition transaction as contemplated in the offer documents. extends offer until 5:00 p.m. (Edmonton time) on October 27, 2011.
1:12AM Mosaic prices $450 mln 3.75% notes due 2021 and $300 mln 4.875% notes due 2041 (MOS) :
1:08AM Griffon acquires Southern Patio; expected to be immediately accretive (GFF) 8.79 : CO announces that it has closed on the acquisition of the pots and planters business of Southern Sales & Marketing Group, Inc. The acquired business, which markets its products under the Southern Patio brand name had revenues for the fiscal year ended September 30, 2011 exceeding $40 mln . Total purchase consideration ~$23 mln. Co expects the transaction to be immediately accretive to cash flow and earnings per share.
1:06AM Benchmark Elec updates impact of Thailand flooding; expects that the flooding of its Ayudhaya facility will have a significant impact on its revenues and operations for Q4 (BHE) 14.23 : Co announces that flood waters breached the south-side levee protecting the industrial park and the waters have now inundated the Benchmark campus. The Company has extended its suspension of operations in Ayudhaya. The co has begun utilizing capacity in the Asia Pacific region, including re-starting its Korat, Thailand facility, to support the transfer of customer production. The co expects that the flooding of its Ayudhaya facility will have a significant impact on its revenues and operations for the fourth quarter. Benchmark has insurance coverage for the flood/water damage to its facility and also carries business interruption coverage.
1:00AM Forbes Energy Services commences exchange offer of $280 mln 9% Senior Notes due 2019 (FES) 5.40 : 