4:30 pm : Stocks overcame intraday resistance to settle at session highs for another big gain. The stock market has now scored three strong gains in just as many days.
Financials fueled today's rally, but only after the sector overcame early selling pressure. Following a relatively lackluster performance in the prior session, financials faltered this morning, falling to a loss well in excess of 1%. But bank stocks brought the sector back from the red. Bank of America (BAC 6.28, +0.51), one of the most actively traded names by share volume, rallied nearly 9% to its weekly high. It drove the KBW Bank Index to a 4.5% gain and led the financial sector to a 3.2% gain.
Consumer discretionary stocks also scored strong gains, finishing 2.2% for the better. Retailers were in focus amid a relatively mixed round of same-store sales reports for September. J.C. Penney (JCP 28.42, +0.78) managed to stage a strong gain, even though the company cut its earnings forecast.
While financials drove most of the action for the day, it was a broad push into the close that helped the S&P 500 overcome resistance at the 1160 line, which had rebuffed the broad market measure several times throughout the trading session. Stocks didn't breach the line until the final 30 minutes of action.
Strength among stocks put pressure on Treasuries. The corresponding rise in yields took that of the 10-year Note back to 2.00%.
The dollar dove to a loss of about 0.6% against a basket of major foreign currencies. Its tumble came after the euro rallied out of the red to end the day with a 0.6% gain at $1.344. The sterling pound slashed a loss of more than 1% to settle at $1.544 for a loss of only 0.2%. The pound's initial punishment came in response to a decision by the Bank of England (BoE) to increase its asset purchase plan by 75 billion to 275 billion pounds. The BoE kept its benchmark interest rate at 0.50%, though. The European Central Bank (ECB) kept its target at 1.50%, which surprised many since some sort of accommodative measure had become widely expected among market pundits.
Data had little impact on today's trade. The only item on the docket was the latest weekly initial jobless claims count, which increased by 6,000 week-over-week to 401,000. It barely differed from the Briefing.com consensus call for 402,000 initial claims.
Tomorrow brings the always pivotal official non-farm payrolls report. Participants were given a glimpse of the September number by a better-than-expected ADP Employment Change earlier this week, although the ADP is not always statistically identical. No matter the number, though, the reaction to the report should be telling of market sentiment, especially since stocks have rallied 6% during the course of the past three sessions.
Advancing Sectors: Financials +3.2%, Materials +2.5%, Consumer Discretionary +2.2%, Industrials +2.2%, Tech +1.7%, Energy +1.6%, Utilities +1.6%, Health Care +1.1%, Consumer Staples +1.0%, Telecom +0.6%
Declining Sectors: (None)DJ30 +183.38 NASDAQ +46.31 NQ100 +1.6% R2K +2.4% SP400 +2.5% SP500 +20.93 NASDAQ Adv/Vol/Dec 1934/2.25 bln/596 NYSE Adv/Vol/Dec 2592/1.12 bln/461
3:30 pm : Crude oil futures extended their rally to a second consecutive session after posting a gain of 3.7% to close at $82.59 per barrel. Over the past two sessions futures have now gained 9%, and have recouped close to all of their losses from the recent three session pullback. Strength in equities helped crude oil futures trade to the upside today. Natural gas ended higher by 1% at $3.60 per MMBtu. Futures sold off following this morning's inventory data, which more-or-less came in line with expectations, but managed to rally off of lows to finish the day in positive territory.
Following the volatile trade in gold this morning, it was a relatively quiet session for the precious metal. Futures chopped around the flat line for a majority of the day but managed to push into positive territory heading into the close of pit trade to post gains of 0.7% at $1653.20 per ounce. Silver futures, which gained 5% to close at $32 per ounce, traded steadily higher throughout the session to close near highs.DJ30 +93.09 NASDAQ +24.67 SP500 +15.12 NASDAQ Adv/Vol/Dec 1668/1.7 bln/840 NYSE Adv/Vol/Dec 2383/732.7 mln/671
3:00 pm : For the third time today the S&P 500 struggled to push past the 1160 line. Despite such resistance, stocks continue to sport impressive gains. As things stand, the broad market is on pace for its third straight advance, which has the stock market up about 5% since the close of trade on Monday.
Given the positive tone of recent trade, the Volatility Index, a commonly used statistical index to measure investor sentiment, has dropped to 37 after it had been at a monthly high above 45 earlier this week. DJ30 +115.45 NASDAQ +31.94 SP500 +12.98 NASDAQ Adv/Vol/Dec 1735/1.55 bln/755 NYSE Adv/Vol/Dec 2430/625 mln/575
2:30 pm : The broad market has retraced its recent pullback so that it is back at its session high. Financials continue to lead the effort; the sector is back at its best level of the day, sporting a 2.0% gain.DJ30 +143.15 NASDAQ +35.33 SP500 +15.85 NASDAQ Adv/Vol/Dec 1750/1.43 bln/725 NYSE Adv/Vol/Dec 2435/575 mln/560
2:00 pm : Telecom stocks have trailed the broad market for the past two sessions. Yesterday the telecom sector logged a loss of 0.3%. It is stuck at the flat line today.
The push against telecom stocks comes as participants display a sense of increased confidence and, as a result, favor riskier issues that are often more cyclical in nature. Given telecom's relatively stodgy nature, participants are likely looking for opportunities for capital appreciation over dividend income. DJ30 +100.58 NASDAQ +27.10 SP500 +12.19 NASDAQ Adv/Vol/Dec 1695/1.32 bln/765 NYSE Adv/Vol/Dec 2375/525 mln/635
1:30 pm : Stocks are still shy of their session highs, but they're not exactly backing down after the S&P 500 failed to overcome resistance at the 1160 line. As such, stocks continue to sport strong gains.
Given the stock market's strength, Treasuries are still wrestling with significant selling pressure. The action there has taken the yield on the benchmark 10-year Note to within only a few basis points of 2.00%. DJ30 +79.58 NASDAQ +22.21 SP500 +9.52 NASDAQ Adv/Vol/Dec 1750/1.21 bln/695 NYSE Adv/Vol/Dec 2400/475 mln/580
1:00 pm : Financials have been the driving force in today's action. The sector led an early slide, but its subsequent rebound has boosted the broad market to its third straight gain.
Many participants were disappointed this morning by the lack of accommodative measures taken during the latest meeting by the European Central Bank, which kept its target interest rate at 1.50%. The Bank of England also left its target rate unchanged, at 0.50%, but increased its asset purchase plan by 75 billion to 275 billion pounds. The sterling pound dropped in response, but it has since halved its loss so that it is now down 0.5% for the day. Meanwhile, the euro has rallied out of the red so that it is up 0.3% for the session.
Financials had lagged in the prior session, but got a late lift from the broad market. Sentiment surrounding the sector soured again this morning, resulting in an early drop that took financials down in excess of 1%. However, financials battled back amid leadership from bank stocks. The group's climb to a collective gain of more than 1% has also boosted the broad market.
Although renewed strength in the financial sector has helped inspire broad market buying interest, the S&P 500 has been unable to push past the 1160 line. After two failed attempts to trade above that mark, stocks have drifted to afternoon lows. Nonetheless, the stock market is up for the third straight session and boasting a cumulative gain of about 5% over that time.
Data has had little sway with trade today. The latest weekly initial jobless claims tally of 401,000 was almost spot on with what had been generally expected by economists polled by Briefing.com. Tomorrow brings the latest monthly non-farm payrolls report. In a preview of that report, the ADP Employment Change for September showed yesterday that private payrolls increased by about 90,000, which is double what had been broadly anticipated ahead of that report. DJ30 +83.97 NASDAQ +28.35 SP500 +10.71 NASDAQ Adv/Vol/Dec 1800/1.08 bln/620 NYSE Adv/Vol/Dec 2450/430 mln/510
12:30 pm : Both the Dow and S&P 500 have returned to session highs after a brief pullback. As for the Nasdaq, it is at its best level of the day, sporting a modest lead over each of its counterparts. The Nasdaq's relative strength is consistent with its performances in recent sessions, mostly because large-cap tech has been in favor among market participants.DJ30 +109.74 NASDAQ +34.71 SP500 +14.23 NASDAQ Adv/Vol/Dec 1670/955 mln/705 NYSE Adv/Vol/Dec 2410/385 mln/525
12:00 pm : The S&P 500 recently moved another leg higher so that it came in touch with the 1160 line, but it has been unable to hold that position. In turn, stocks are sitting just shy of their session highs.
Financials continue to provide leadership, which comes in stark contrast to how they started the session. In the early going the financial sector slid to a loss of more than 1%, but it has since rallied to a 2.0% gain. Bank of America (BAC 6.11, +0.34) has been a primary leader. Not only is it the top performing stock in the financial sector by percent gained, it is also the most actively traded name by share volume. Notably, today's trading volume in shares of BAC is already almost half of what the stock averages on a daily basis. DJ30 +93.36 NASDAQ +27.50 SP500 +12.36 NASDAQ Adv/Vol/Dec 1660/860 mln/695 NYSE Adv/Vol/Dec 2380/345 mln/530
11:30 am : The S&P 500 is back near its best level of the day, but it is having a relatively difficult time making much of a move beyond the 1150 line.
The dollar has dropped into negative territory after it had been bid higher in response to statements this morning from the European Central Bank and Bank of England. The sterling pound has since slashed its loss in half so that it trades 0.5% lower on the day at $1.539. Meanwhile, the euro has rallied from a morning loss to a 0.5% gain at $1.342. Germany's Chancellor, Angela Merkel, was recently reported to have stated that the dollar may give way to a multipolar system in time. This concept isn't necessarily anything new, though. DJ30 +63.20 NASDAQ +23.90 SP500 +9.01 NASDAQ Adv/Vol/Dec 1500/700 mln/800 NYSE Adv/Vol/Dec 2240/275 mln/630
11:00 am : Action in the past hour of trade has seen stocks rebound from their morning retreat. The major equity averages are now up with varied gains.
Financials fueled today's rally, but only after the sector overcame early selling pressure. Following a relatively lackluster performance in the prior session, financials faltered this morning, falling to a loss well in excess of 1%. But bank stocks brought the sector back from the red. Bank of America (BAC 6.28, +0.51), one of the most actively traded names by share volume, rallied nearly 9% to its weekly high. It drove the KBW Bank Index to a 4.5% gain and led the financial sector to a 3.2% gain.
Consumer discretionary stocks also scored strong gains, finishing 2.2% for the better. Retailers were in focus amid a relatively mixed round of same-store sales reports for September. J.C. Penney (JCP 28.42, +0.78) managed to stage a strong gain, even though the company cut its earnings forecast.
While financials drove most of the action for the day, it was a broad push into the close that helped the S&P 500 overcome resistance at the 1160 line, which had rebuffed the broad market measure several times throughout the trading session. Stocks didn't breach the line until the final 30 minutes of action.
Strength among stocks put pressure on Treasuries. The corresponding rise in yields took that of the 10-year Note back to 2.00%.
The dollar dove to a loss of about 0.6% against a basket of major foreign currencies. Its tumble came after the euro rallied out of the red to end the day with a 0.6% gain at $1.344. The sterling pound slashed a loss of more than 1% to settle at $1.544 for a loss of only 0.2%. The pound's initial punishment came in response to a decision by the Bank of England (BoE) to increase its asset purchase plan by 75 billion to 275 billion pounds. The BoE kept its benchmark interest rate at 0.50%, though. The European Central Bank (ECB) kept its target at 1.50%, which surprised many since some sort of accommodative measure had become widely expected among market pundits.
Data had little impact on today's trade. The only item on the docket was the latest weekly initial jobless claims count, which increased by 6,000 week-over-week to 401,000. It barely differed from the Briefing.com consensus call for 402,000 initial claims.
Tomorrow brings the always pivotal official non-farm payrolls report. Participants were given a glimpse of the September number by a better-than-expected ADP Employment Change earlier this week, although the ADP is not always statistically identical. No matter the number, though, the reaction to the report should be telling of market sentiment, especially since stocks have rallied 6% during the course of the past three sessions.
Advancing Sectors: Financials +3.2%, Materials +2.5%, Consumer Discretionary +2.2%, Industrials +2.2%, Tech +1.7%, Energy +1.6%, Utilities +1.6%, Health Care +1.1%, Consumer Staples +1.0%, Telecom +0.6%
Declining Sectors: (None)DJ30 +183.38 NASDAQ +46.31 NQ100 +1.6% R2K +2.4% SP400 +2.5% SP500 +20.93 NASDAQ Adv/Vol/Dec 1934/2.25 bln/596 NYSE Adv/Vol/Dec 2592/1.12 bln/461
3:30 pm : Crude oil futures extended their rally to a second consecutive session after posting a gain of 3.7% to close at $82.59 per barrel. Over the past two sessions futures have now gained 9%, and have recouped close to all of their losses from the recent three session pullback. Strength in equities helped crude oil futures trade to the upside today. Natural gas ended higher by 1% at $3.60 per MMBtu. Futures sold off following this morning's inventory data, which more-or-less came in line with expectations, but managed to rally off of lows to finish the day in positive territory.
Following the volatile trade in gold this morning, it was a relatively quiet session for the precious metal. Futures chopped around the flat line for a majority of the day but managed to push into positive territory heading into the close of pit trade to post gains of 0.7% at $1653.20 per ounce. Silver futures, which gained 5% to close at $32 per ounce, traded steadily higher throughout the session to close near highs.DJ30 +93.09 NASDAQ +24.67 SP500 +15.12 NASDAQ Adv/Vol/Dec 1668/1.7 bln/840 NYSE Adv/Vol/Dec 2383/732.7 mln/671
3:00 pm : For the third time today the S&P 500 struggled to push past the 1160 line. Despite such resistance, stocks continue to sport impressive gains. As things stand, the broad market is on pace for its third straight advance, which has the stock market up about 5% since the close of trade on Monday.
Given the positive tone of recent trade, the Volatility Index, a commonly used statistical index to measure investor sentiment, has dropped to 37 after it had been at a monthly high above 45 earlier this week. DJ30 +115.45 NASDAQ +31.94 SP500 +12.98 NASDAQ Adv/Vol/Dec 1735/1.55 bln/755 NYSE Adv/Vol/Dec 2430/625 mln/575
2:30 pm : The broad market has retraced its recent pullback so that it is back at its session high. Financials continue to lead the effort; the sector is back at its best level of the day, sporting a 2.0% gain.DJ30 +143.15 NASDAQ +35.33 SP500 +15.85 NASDAQ Adv/Vol/Dec 1750/1.43 bln/725 NYSE Adv/Vol/Dec 2435/575 mln/560
2:00 pm : Telecom stocks have trailed the broad market for the past two sessions. Yesterday the telecom sector logged a loss of 0.3%. It is stuck at the flat line today.
The push against telecom stocks comes as participants display a sense of increased confidence and, as a result, favor riskier issues that are often more cyclical in nature. Given telecom's relatively stodgy nature, participants are likely looking for opportunities for capital appreciation over dividend income. DJ30 +100.58 NASDAQ +27.10 SP500 +12.19 NASDAQ Adv/Vol/Dec 1695/1.32 bln/765 NYSE Adv/Vol/Dec 2375/525 mln/635
1:30 pm : Stocks are still shy of their session highs, but they're not exactly backing down after the S&P 500 failed to overcome resistance at the 1160 line. As such, stocks continue to sport strong gains.
Given the stock market's strength, Treasuries are still wrestling with significant selling pressure. The action there has taken the yield on the benchmark 10-year Note to within only a few basis points of 2.00%. DJ30 +79.58 NASDAQ +22.21 SP500 +9.52 NASDAQ Adv/Vol/Dec 1750/1.21 bln/695 NYSE Adv/Vol/Dec 2400/475 mln/580
1:00 pm : Financials have been the driving force in today's action. The sector led an early slide, but its subsequent rebound has boosted the broad market to its third straight gain.
Many participants were disappointed this morning by the lack of accommodative measures taken during the latest meeting by the European Central Bank, which kept its target interest rate at 1.50%. The Bank of England also left its target rate unchanged, at 0.50%, but increased its asset purchase plan by 75 billion to 275 billion pounds. The sterling pound dropped in response, but it has since halved its loss so that it is now down 0.5% for the day. Meanwhile, the euro has rallied out of the red so that it is up 0.3% for the session.
Financials had lagged in the prior session, but got a late lift from the broad market. Sentiment surrounding the sector soured again this morning, resulting in an early drop that took financials down in excess of 1%. However, financials battled back amid leadership from bank stocks. The group's climb to a collective gain of more than 1% has also boosted the broad market.
Although renewed strength in the financial sector has helped inspire broad market buying interest, the S&P 500 has been unable to push past the 1160 line. After two failed attempts to trade above that mark, stocks have drifted to afternoon lows. Nonetheless, the stock market is up for the third straight session and boasting a cumulative gain of about 5% over that time.
Data has had little sway with trade today. The latest weekly initial jobless claims tally of 401,000 was almost spot on with what had been generally expected by economists polled by Briefing.com. Tomorrow brings the latest monthly non-farm payrolls report. In a preview of that report, the ADP Employment Change for September showed yesterday that private payrolls increased by about 90,000, which is double what had been broadly anticipated ahead of that report. DJ30 +83.97 NASDAQ +28.35 SP500 +10.71 NASDAQ Adv/Vol/Dec 1800/1.08 bln/620 NYSE Adv/Vol/Dec 2450/430 mln/510
12:30 pm : Both the Dow and S&P 500 have returned to session highs after a brief pullback. As for the Nasdaq, it is at its best level of the day, sporting a modest lead over each of its counterparts. The Nasdaq's relative strength is consistent with its performances in recent sessions, mostly because large-cap tech has been in favor among market participants.DJ30 +109.74 NASDAQ +34.71 SP500 +14.23 NASDAQ Adv/Vol/Dec 1670/955 mln/705 NYSE Adv/Vol/Dec 2410/385 mln/525
12:00 pm : The S&P 500 recently moved another leg higher so that it came in touch with the 1160 line, but it has been unable to hold that position. In turn, stocks are sitting just shy of their session highs.
Financials continue to provide leadership, which comes in stark contrast to how they started the session. In the early going the financial sector slid to a loss of more than 1%, but it has since rallied to a 2.0% gain. Bank of America (BAC 6.11, +0.34) has been a primary leader. Not only is it the top performing stock in the financial sector by percent gained, it is also the most actively traded name by share volume. Notably, today's trading volume in shares of BAC is already almost half of what the stock averages on a daily basis. DJ30 +93.36 NASDAQ +27.50 SP500 +12.36 NASDAQ Adv/Vol/Dec 1660/860 mln/695 NYSE Adv/Vol/Dec 2380/345 mln/530
11:30 am : The S&P 500 is back near its best level of the day, but it is having a relatively difficult time making much of a move beyond the 1150 line.
The dollar has dropped into negative territory after it had been bid higher in response to statements this morning from the European Central Bank and Bank of England. The sterling pound has since slashed its loss in half so that it trades 0.5% lower on the day at $1.539. Meanwhile, the euro has rallied from a morning loss to a 0.5% gain at $1.342. Germany's Chancellor, Angela Merkel, was recently reported to have stated that the dollar may give way to a multipolar system in time. This concept isn't necessarily anything new, though. DJ30 +63.20 NASDAQ +23.90 SP500 +9.01 NASDAQ Adv/Vol/Dec 1500/700 mln/800 NYSE Adv/Vol/Dec 2240/275 mln/630
11:00 am : Action in the past hour of trade has seen stocks rebound from their morning retreat. The major equity averages are now up with varied gains.
The market's bounce has come with help from the financial sector, which tumbled to a loss well in excess of 1% this morning, but has since rallied to a 0.8% gain. The move has been led by large-cap banking and financial services giants like Bank of America (BAC 5.98, +0.21) and Citigroup (C 25.64, +0.93).
For the second straight session, though, materials stocks are out in front. The sector has already run ahead to a 1.5% gain. The move comes coincides with a bounce by commodities, which are collectively up 0.8%, as measured by the CRB Commodity Index. DJ30 +27.62 NASDAQ +14.33 SP500 +4.89 NASDAQ Adv/Vol/Dec 1360/545 mln/875 NYSE Adv/Vol/Dec 2110/215 mln/710
10:35 am : Weakness in the dollar index, which recently fell below the 79.00 level, has provided price support to the commodity complex this morning.
Natural gas futures have been in positive territory for over the past hour now, following a rally from $3.54 to its currently session high of $3.58/MMBtu, hit just minutes ahead of today's inventory data. Following the data, which showed a build of 97 bcf versus consensus of a build of 100 bcf, natural gas are now trading in the red; currently at $3.56, down 0.2%.
Crude oil has been trading between approx. $79-81.15 over the last six hours. About 15 minutes before pit trading began, crude sold off, losing about $1.73/barrel and hitting a new session low of $79.15/barrel about 25 minutes later. The energy component has moved back into positive territory and is currently up 1.3% at $80.69/barrel.
Silver has been in positive territory all session. The precious metal put in its session high of $31.77/oz. in early morning activity and is currently heading back in that direction after its recent $0.80 move higher. Gold futures have been rather choppy and put in a new session low of $1633.20/oz. about 30 minutes ago. It's since moved back into positive territory and is now up 0.5% at $1649.60/oz. Silver is 4% higher at $31.54/oz.DJ30 +41.40 NASDAQ +18.74 SP500 +5.90 NASDAQ Adv/Vol/Dec 1382/499 mln/842 NYSE Adv/Vol/Dec 2124/203 mln/682
Natural gas futures have been in positive territory for over the past hour now, following a rally from $3.54 to its currently session high of $3.58/MMBtu, hit just minutes ahead of today's inventory data. Following the data, which showed a build of 97 bcf versus consensus of a build of 100 bcf, natural gas are now trading in the red; currently at $3.56, down 0.2%.
Crude oil has been trading between approx. $79-81.15 over the last six hours. About 15 minutes before pit trading began, crude sold off, losing about $1.73/barrel and hitting a new session low of $79.15/barrel about 25 minutes later. The energy component has moved back into positive territory and is currently up 1.3% at $80.69/barrel.
Silver has been in positive territory all session. The precious metal put in its session high of $31.77/oz. in early morning activity and is currently heading back in that direction after its recent $0.80 move higher. Gold futures have been rather choppy and put in a new session low of $1633.20/oz. about 30 minutes ago. It's since moved back into positive territory and is now up 0.5% at $1649.60/oz. Silver is 4% higher at $31.54/oz.DJ30 +41.40 NASDAQ +18.74 SP500 +5.90 NASDAQ Adv/Vol/Dec 1382/499 mln/842 NYSE Adv/Vol/Dec 2124/203 mln/682
10:00 am : A flurry of selling has caused stocks to slide into negative territory. The downturn has been led by the financial sector, which has tumbled quickly to a 1.5% loss.
Financials hampered action yesterday, although the broad market was still able to stage a strong gain and ultimately lift the financial sector along with it. The weakness of the financial sector remains underpinned by concerns related to the exposure of banks to the eurozone, which continues to contend with precarious fiscal and financial conditions. Despite such conditions, the European Central Bank opted to keep its benchmark lending rate at 1.50%, and refused to introduce any kind of plans for new accommodations to monetary policy. DJ30 -52.75 NASDAQ -6.22 SP500 -6.77 NASDAQ Adv/Vol/Dec 1025/112 mln/920 NYSE Adv/Vol/Dec 1515/62 mln/1090
09:45 am : The major equity averages are mired near the neutral line, but shares of retailers are up nicely, as measured by the SPDR S&P Retail ETF (XRT 48.03, +0.54), following a flurry of same-store sales results for September. Of the bunch, Buckle (BKE 44.18, +2.33) and Target (TGT 51.96, +2.20) posted surprisingly strong results, which have boosted their shares up to big gains in the early going.DJ30 -5.00 NASDAQ +1.66 SP500 -0.32
09:15 am : S&P futures vs fair value: -6.40. Nasdaq futures vs fair value: -9.60. Stock futures have surrendered their gains as participants react to the decision by the European Central Bank to keep its target interest rate unchanged at 1.50% without taking any kind of new accommodative action. Many market participants and pundits had come to expect some kind of move by the ECB to help bolster conditions in the eurozone, where precarious fiscal and financial conditions have been at the center of investor concerns for months. That said, the Bank of England did make the decision to increase its asset purchase plan by 75 billion pounds to 275 billion pounds, but kept its benchmark interest rate at 0.50%. Other headlines this morning have featured an in-line initial jobless claims for the week ended October 1 and an underwhelming round of same-store sales reports for September.
09:05 am : S&P futures vs fair value: -5.40. Nasdaq futures vs fair value: -8.30. Europe's bourses have forfeited some of their gains, but continue to trade markedly higher for the day. Action comes amid the decision by the European Central Bank to keep its target interest rate at 1.50%. Many had expected some kind of a rate cut, but in a press conference ECB President Trichet said that rates remain appropriate. He did indicate, though, that the ECB will conduct two longer term lending programs. Trichet acknowledged that the region's banking sector needs particular attention, and that countries should move to recapitalize banks. Meanwhile, the Bank of England kept its benchmark interest rate at 0.50%, but increased its asset purchase plan by 75 billion pounds to 275 billion pounds. The sterling pound has tumbled 1% in response to that decision. Britain's FTSE is currently up 2.1%. Buying has been broad, leaving only a few names behind to trade with losses. Admiral Group, BP Plc (BP), and Man Group Plc are among the few that have failed to find positive territory. Lloyds Group (LYG), Standard Chartered, Rio Tinto (RIO), and Xstrata are among the top performers by percent gained. In France, the CAC has climbed to a 1.7% gain. BNP Paribas and Axa (AXA) are top performers. Carrefour and Essilor International have lagged noticeably. Germany's DAX has advanced to a 1.1% gain. Thyssenkrupp, Allianz (AZ), and Commerzbank are atop the list of leaders. Merck KGAA and Fresenius Medical Care are at the opposite end of the spectrum.
Overnight action in Asia was strong. Japan's Nikkei moved 1.7% higher, boosted by broad-based buying. Fujitsu Ltd. was especially strong; it climbed more than 6%. Sony (SNE) also offered leadership by advancing nearly 5%. Earlier this week the electronics company set a 25-year low. Losses were limited in scope. Hong Kong's Hang Seng surged to a 5.7% gain. CNOOC (CEO) spiked more than 8% as it rallied back from a sharp loss suffered earlier this week. Other natural resource related plays also performed well. Mainland China's Shanghai Composite remained closed for holiday observance.
08:35 am : S&P futures vs fair value: +3.50. Nasdaq futures vs fair value: +6.50. Stock futures have reclaimed some of their gains in recent trade. The effort comes despite news that weekly initial jobless claims moved back above the 400,000, though just barely. After last week's surprise decline to an upwardly revised 395,000, the latest initial claims tally increased to 401,000, which is in line with what had been widely expected. On a side note, continuing claims decreased to 3.70 million from 3.75 million.
08:05 am : S&P futures vs fair value: -1.60. Nasdaq futures vs fair value: -4.50. Another bounce by Europe's bourses had helped promote a sense of optimism among premarket participants, such that stock futures were bid makedly higher. However, futures have since drifted off of their morning highs so that a flat start is expected to follow the robust back-to-back gains already booked by the broad market. Early headlines feature the decision by both the Bank of England and the European Central Bank to keep their interest rates at 0.50% and 1.50%, respectively. However, the BoE announced an increase of 75 billion pounds to its asset purchase plan, which now totals 275 billion pounds. That news has put pressure on the sterling pound, which was last quoted with a 1.0% loss at $1.531. ECB President Trichet is scheduled to begin a press conference at the bottom of the hour. Speculation abounds about what plans are in store for European policy, especially since many had expected some kind of rate cut. Only a small dose of domestic data is on tap for today -- weekly initial jobless claims are due at 8:30 AM ET. Same-store sales for September are flooding newswires at the moment. Results, thus far, have been somewhat mixed relative to consensus forecasts. On a separate, and sad note to Apple (AAPL) fans, former Apple CEO and master innovator Steve Jobs has passed away.
06:50 am : [BRIEFING.COM] S&P futures vs fair value: +4.70. Nasdaq futures vs fair value: flat.
06:50 am : Nikkei...8522.02...+139.00...+1.70%. Hang Seng...17172.28...+922.00...+5.70%.
06:50 am : FTSE...5196.61...+94.40...+1.90%. DAX...5595.61...+122.60...+2.20%.
In Play
5:55PM Eldorado Gold announces exploration programs update (EGO) 17.12 +0.34 : Co provides an update on the co's 2011 exploration programs in Turkey, China, and Brazil. The $54M exploration budget includes programs totaling up to 125,000 metres of core drilling and 15,000 metres of RC drilling. Highlights of its 2011 exploration programs to date include: 1) At the White Mountain mine in NE China two new drillholes have confirmed and expanded a deep mineralized lens first discovered in late 2010 (news release dated Dec. 07, 2010). New intercepts here include 10.0 metres at 10.9 g/t Au, and 6.0 metres at 6.6 g/t Au. 2) At the Efemcukuru mine in western Turkey, systematic drilling along strike to the northwest of the North Ore Shoot has defined a new zone of gold mineralization, referred to as the Kestane Beleni Northwest Extension, with intercepts including 1.75 metres at 20.1 g/t Au, and 0.5 metres at 67.3 g/t Au. 3) At the Agua Branca project in the Tapajos gold district in Para State, Brazil, diamond drillhole AB-46, targeting strong auger drilling results at the Camarao Zone, intersected 154.2 metres grading 1.06 g/t Au. Based on encouraging exploration results, Eldorado has made the final payment on this project under the option agreement with Talon Metals Corp., thereby gaining 100% ownership.
5:47PM Joy Global announces pricing of $500 mln of senior notes (JOYG) 69.32 +2.97 : Co announced that it has priced an offering of $500 million aggregate principal amount of its 5.125% Senior Notes due October 15, 2021 (the "Notes"). The Notes will be senior unsecured obligations of Joy Global and will be guaranteed by certain of Joy Global's material domestic subsidiaries. The Notes will be sold at an issue price of 99.151% of the principal amount. Joy Global expects the offering to close on October 12, 2011, subject to customary closing conditions. Goldman, Sachs & Co., J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as joint book-running managers for the offering.
5:46PM Anaren Microwave lowers Q1 revs guidance to ~$38.7 mln vs. $44 mln Capital IQ Consensus Estimates, from prior guidance of $40-46 mln; lowers EPS to $0.19-0.21 vs. $0.25 consensus, from $0.27-0.32 (ANEN) 21.51 +1.02 : Co lowers Q1 EPS and revenue guidance below consensus. "The reduction in expected revenue and profitability for Q1 of FY12 resulted primarily from a decline in demand for Wireless infrastructure component products, unanticipated delays in approvals for shipments of Space & Defense products and poor operational performance at our Unicircuit operation... We believe the decline in Wireless infrastructure component demand is temporary as customer demand forecasts for calendar 2012 remain robust."
5:31PM Chemtura announces supply agreement for thioester antioxidants (CHMT) 9.70 +0.45 : Co has signed a long-term supply agreement with Tianjin Lisheng Chemical of PR China for production of Chemtura's NAUGARD DSTDP, NAUGARD DLTDP and NAUGARD DTDTDP thioester antioxidants. Under the agreement, Lisheng exclusively supplies Chemtura with thioester antioxidants in all regions outside of Northeast Asia.
5:22PM Globalstar announces resignation of CFO Dirk J. Wild (GSAT) 0.50 +0.04 : Co announced that it has accepted the resignation of Dirk J. Wild, Senior Vice President and Chief Financial Officer effective November 11, 2011. Wild has agreed to stay through this date to oversee the Co's next quarterly financial report which is expected to be filed prior to the effective date of his resignation. Wild is leaving to pursue other career opportunities in southern Louisiana and the Co wishes him well in his new endeavors. Globalstar is currently engaged in a search for his replacement and Wild has agreed to help transition his duties.
5:21PM Met-Pro CFO tenders resignation (MPR) 8.95 +0.06 : Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro, announced today that Gary J. Morgan, the Co's Chief Financial Officer and Director has tendered his resignation, effective January 31, 2012, to pursue other opportunities. Morgan's advance notice of his pending resignation will allow the Co to facilitate an orderly transition. De Hont will be leading Met-Pro Corporation's national search for a new Chief Financial Officer.
5:19PM HCC Insurance Holdings announces launch of primary and excess casualty divisions (HCC) 27.52 +0.45 : HCC Insurance Holdings (HCC) announced the opening of the Co's new Primary Casualty and Excess Casualty Divisions led by Chris Day and Phil Joschko, respectively. The Primary Casualty and Excess Casualty Divisions will further expand the Company's specialty focus by extending its underwriting activities into general liability and excess liability insurance for construction, manufacturing, premises and public entity risks. Combined, Mr. Day and Mr. Joschko bring to HCC over 50 years of underwriting and leadership experience.
5:16PM Gannett Chairman and CEO resigns (GCI) 10.45 -0.01 : Co announced that Craig A. Dubow, chairman and chief executive officer, has resigned due to disability. Dubow had taken a leave of absence on September 15 to address continuing issues relating to prior medical conditions. Marjorie Magner, an independent director since 2006 who has been chairman of the audit committee, has been named non-executive chairman of the board. Gracia C. Martore, president and chief operating officer, who has been serving as principal executive officer while Mr. Dubow was on medical leave, has been named president and chief executive officer and joined Gannett's Board of Directors.
5:07PM Illumina drops almost 10 pts to $30.00 after issuing downside Q3 revs guidance and suspending FY11 guidance (sees 17:02 comment) (ILMN) 39.93 -0.08 :
5:02PM Illumina sees Q3 revs of $235 mln vs $277.3 mln Capital IQ Consensus Estimate; sees Q4 revs guidance higher than Q3; suspends FY11 guidance (ILMN) 39.93 -0.08 : Co issues downside revenue guidance and suspends FY11 guidance. "We currently believe the following factors negatively affected our revenue in Q3 compared to our forecast: Continued uncertainty surrounding the levels of research funding in the U.S. and Europe resulted in purchasing delays for both instruments and consumables, particularly among large volume centers; The launch of the V3 sequencing kits in Q2 created excess capacity that customers were unable to fully utilize. This resulted in a decrease in the consumable revenue per instrument due to fewer runs. This impact will diminish as customers scale and gain access to greater numbers of samples; A significant drop in reagent usage by our remaining Genome Analyzer installed base; and Lower than expected upgrades of Genome Analyzers to HiSeq 2000 systems. "Clearly, we are highly disappointed with our revenue for Q3. In the quarter, we saw what we believe to be an unprecedented slowdown in purchasing due to uncertainties in research funding and overall economic conditions, as well as a temporary excess of sequencing capacity in the market. We expect these conditions to continue through at least Q4, while the 2012-2013 U.S. budgets for NIH and other related agencies are determined. In the face of these challenging macro conditions, our execution, competitive position, and new product flow are as strong as ever. As an example, the launch of the MiSeq has gone extremely well with over 45 systems shipped after we commenced broad shipments in mid-September. Additionally, I'm pleased that the system is performing beyond our expectations in the hands of our customers." While we believe that revenue for Q4 2011 will be higher than Q3 levels, we are suspending the financial guidance for the full year 2011 as provided on July 26, 2011, due to the many market uncertainties described earlier, and as such, this guidance should no longer be considered as the Co's current expectations. We will provide a more detailed business update and complete financial information when we report Q3 results after the close of the market on Tuesday, Oct. 25, 2011. We are currently observing a pre-earnings quiet period and will not make further comments about our Q3 results in the interim."
5:01PM American Oriental Bioengineering announced that the co submitted its plan to cure stock price deficiency with respect to the listing standard of the New York Stock Exchange on Oct 5, 2011 (AOB) 0.59 +0.02 :
5:00PM Blackbaud announces acquisition of Everyday Hero (BLKB) 23.72 +0.59 : Co announced that it has acquired Everyday Hero, a privately-owned company based in Brisbane, Australia. Everyday Hero's event fundraising tools are used by tens of thousands of individual fundraisers and 1400 customers in Australia, New Zealand, and the United Kingdom.
4:59PM Eli Lilly reports that the FDA approves Cialis (LLY) 37.23 +0.20 : The U.S. Food and Drug Administration today approved Cialis (tadalafil) to treat the signs and symptoms of benign prostatic hyperplasia (BPH), a condition in which the prostate gland becomes enlarged, and for the treatment of BPH and erectile dysfunction, when the conditions occur simultaneously. Cialis was approved in 2003 for the treatment of ED.
4:54PM ViaSat reported Anik F2 satellite is experiencing an outage (VSAT) 35.93 +0.98 : Co is reporting that WildBlue service from the Telesat Anik F2 satellite is experiencing an outage due to a technical anomaly, as reported by Telesat earlier today. Based on estimates provided by Telesat, ViaSat projects that WildBlue customers receiving service through Anik F2 will be restored by tomorrow morning.
4:51PM Cascade Bancorp names Terry E. Zink as CEO (CACB) 5.58 +0.25 : Co announced that it has named Terry E. Zink Chief Executive Officer effective January 1, 2012 subject to regulatory approval. Zink most recently served as President and Chief Executive Officer of Fifth Third Bank Chicago, an affiliate of the Fifth Third Bancorp network. Prior to joining Fifth Third Bank, Zink served nearly 17 years with Wells Fargo & Company in several senior management positions in California and Arizona.
4:43PM Zix Corp reaffirms Q3 revs of $9.5-9.7 mln vs. $9.75 mln Capital IQ Consensus Estimate; reaffirms EPS of $0.04 vs. $0.04 consensus in an 8-K (ZIXI) 2.81 +0.12 :
4:38PM MetLife reports in an 8-K non-recurring charges that it expects to incur for Q3 of 2011; expects to incur $115-135 charge to adjust reserves and $80-100 mln charge for catastrophe losses in its Auto & Home business (MET) 30.69 +1.49 : Co has identified the following non-recurring charges that it expects to incur for the third quarter of 2011: (1) The co expects to incur a $115-135 mln, after tax, charge to adjust reserves in connection with the co's use of the U.S. Social Security Administration's Death Master File and similar databases to identify certain group life insurance certificates, individual life insurance policies and other contracts where the covered person may be deceased, but a claim has not yet been presented to the co. (2) The co estimates $80-100 mln, after tax, in catastrophe losses in its Auto & Home business. This estimate is $42-62 mln, after tax, higher than the co's plan provision of $38 mln for the quarter. The higher losses are due to severe storm activity during the quarter, including the impact from Hurricane Irene. (3) On Sept 1, 2011, the New York State Insurance Department's Liquidation Bureau filed a liquidation plan for Executive Life Insurance Co of New York (ELNY), which had been under rehabilitation by the Liquidation Bureau since 1991. The plan will involve the satisfaction of insurers' financial obligations under a number of state life and health insurance guaranty associations and also contemplates that additional industry support for certain ELNY policyholders will be provided. The co expects to incur a net charge of ~$40 mln, after tax, related to ELNY.
4:38PM China Biologic Products announced two changes in its board of directors (CBPO) 6.40 +0.43 : Co announced two changes in its board of directors. On October 6, 2011, Dr. Xiangmin Cui resigned from his positions as a director of China Biologic, a member of the Audit Committee, the Compensation Committee, and the Governance and Nominating Committee, and as Chairman of the Compensation Committee, effective immediately. Mr. Cui's resignation was due to personal reasons and not because of any disagreement on any matter relating to the operations, policies, or practices. Co has appointed Mr. David (Xiaoying) Gao as a director of the Company, a member of the Audit Committee, the Compensation Committee, and the Governance and Nominating Committee, and as the Chairman of the Compensation Committee, effective immediately, to fill the vacancies resulting from Mr. Cui's resignation.
4:33PM Arthur J. Gallagher & Co. acquires S. A. Freerks & Associates (AJG) 27.32 +0.48 : Co announced the acquisition of S. A. Freerks & Associates, Inc. headquartered in St. Louis, Missouri. Terms of the transaction were not disclosed.
4:31PM Dynavax reports diabetic subset data from modified intent to treat analysis of the HEPLISAV phase 3 trial, showing the superiority of HEPLISAV vs. Engerix-B(R), at all measured time points (DVAX) 1.89 +0.01 : Co announced the results of a prospective analysis of the diabetic subset population from its Phase 3 trial (HBV-16), showing the superiority of HEPLISAV vs. Engerix-B(R), at all measured time points. The modified intent to treat (MITT) analysis of adults with type II diabetes showed that HEPLISAV given as 2 doses over 4 weeks protected a significantly greater proportion of subjects in a shorter time and with longer-lasting protection than Engerix-B given as 3 doses over 24 weeks. The modified intent to treat (MITT) subpopulations included all diabetic subjects that had received at least one dose of any of the four HEPLISAV lots or Engerix-B and had at least one post vaccination immunogenicity result.
4:30PM IPG Photonics prevails in patent suit brought by IMRA America (IPGP) 47.76 +2.72 : Co announces that a jury in the District Court for the Eastern District of Michigan has determined that the Company does not infringe on IMRA America's patent number 5,818,630 in a suit originally brought by IMRA in 2006. In its ruling, the jury found that the Company did not infringe on the claims asserted by IMRA.
4:24PM Keyuan Petrochemicals will begin trading on the OTC market beginning October 7 under same ticker following Nasdaq delisting notice (KEYP) 4.88 :
4:21PM Hansen Medical announces settlement of SEC investigation (HNSN) 3.35 +0.17 : Co announced that it has entered into a settlement with the United States Securities and Exchange Commission ("SEC") that fully resolves the SEC investigation of the col relating to the issues surrounding the restatement of its financial statements that was first reported in October 2009. Under the settlement, the co has consented to the entry of an administrative order (the "Order"), released today by the SEC. The SEC's Order does not impose a monetary penalty or fine on the co and does not subject the co to an injunction. The co consented to the entry of the Order without admitting or denying the factual findings or legal conclusions contained in the Order. The SEC did not charge any of the co's directors or current officers or employees with any violations.
4:16PM Oasis Petroleum announces redetermination of borrowing base and other changes to credit agreement (OAS) 23.12 +1.02 : Co announced that the lenders under its revolving credit agreement completed their regular semi-annual redetermination of the borrowing base, resulting in an increase to the borrowing base from $137.5 million to $350 million. In addition, the interest rate under the Oasis credit agreement was reduced and now ranges from LIBOR plus 150 bps to LIBOR plus 250 bps depending on borrowing base utilization. The maturity date was extended from February 26, 2015 to October 6, 2016. The size of its revolving credit facility increased from $600 million to $1 billion. As of September 30, 2011, Oasis had no outstanding indebtedness under its revolving credit facility. The next redetermination of the borrowing base is scheduled for April 1, 2012.
4:16PM Alvarion will report one time charge of $7 mln due to open range bankruptcy filing; has not been determined whether this charge will affect Q3 (ALVR) 1.06 0.00 : Co announced that, as a result of the bankruptcy petition filed by Open Range Communication ("ORC"), it expects a one-time charge of approximately $7 million. It has not been determined whether this charge will affect the financial statement for the third quarter, which ended September 30, 2011, which will be reported on November 2, 2011, or if the impact will appear in the fourth quarter results. Alvarion was the turnkey network technology provider to ORC.
4:15PM Clorox CFO Dan Heinrich to retire; Steve Robb named CFO (CLX) 67.34 +1.52 : Daniel Heinrich has announced his retirement from the co effective Nov. 16, 2011. Heinrich, who joined Clorox in 2001 as the co's controller, was appointed chief financial officer and a member of the company's executive committee in 2003. Effective Nov. 17, 2011, Stephen Robb will succeed Heinrich and has been appointed senior vice president - chief financial officer. Robb, who joined Clorox in 1989, is currently Clorox's vice president - finance, with day-to-day responsibility for most operations of the global finance function.
4:15PM Regency Energy Partners LP announced commencement of underwritten public offering of 10 mln common units representing limited partner interests in Regency (RGP) 21.61 +0.17 :
4:11PM AngioDynamics misses by $0.01, beats on revs; reaffirms Q2 EPS guidance, revs guidance; reaffirms Q3 (Feb) EPS guidance, revs guidance; reaffirms FY12 EPS guidance, revs guidance (ANGO) 14.26 +0.46 : Reports Q1 (Aug) earnings of $0.08 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.09; revenues rose 5.6% year/year to $54.4 mln vs the $53.6 mln consensus. AngioDynamics reaffirms Q2, Q3 and Q4 non-GAAP EPS and rev guidance. Co reaffirms guidance for Q2, sees EPS of $0.11-0.13, excluding non-recurring items, vs. $0.12 Capital IQ Consensus Estimate; sees Q2 revs of $55.5-57.5 mln, excluding non-recurring items, vs. $56.09 mln Capital IQ Consensus Estimate. Co reaffirms guidance for Q3 (Feb), sees EPS of $0.11-0.13, excluding non-recurring items, vs. $0.11 Capital IQ Consensus Estimate; sees Q3 (Feb) revs of $54.5-56.5 mln, excluding non-recurring items, vs. $53.89 mln Capital IQ Consensus Estimate. Co reaffirms guidance for FY12, sees EPS of $0.41-0.49, excluding non-recurring items, vs. $0.45 Capital IQ Consensus Estimate; sees FY12 revs of $217-225 mln, excluding non-recurring items, vs. $218.79 mln Capital IQ Consensus Estimate. Gross margin increased to 59.1% compared with 57.7% in the fiscal 2011 fourth quarter and 58.3% a year ago. The increase is primarily attributable to material cost reduction programs and improved manufacturing facility utilization. Co also reported that the Company's Board of Directors has authorized the repurchase, prior to May 31, 2012, of up to $20 million of the Company's common stock.
4:10PM Univest Corp. of PA adopts shareholder rights plan (UVSP) 14.49 +0.39 : Co adopted a Shareholder Rights Plan designed to protect shareholders from abusive takeover tactics and attempts to acquire control of the Company at an inadequate price.
4:09PM Smith & Wesson holding corporation announces plan to divest perimeter security business (SWHC) 2.64 +0.02 : Co announced that they have made the decision to divest its perimeter security business in order to focus on its core firearm business. The co is currently exploring strategic alternatives to accomplish the divestiture. "The decision to divest the security solutions division and focus our financial, managerial, and operational resources toward expanding our presence across our firearm market channels is intended to support our long-term growth opportunities and enhance stockholder value."
4:09PM MarkWest Energy commences a 5 mln common unit offering (MWE) 46.98 +1.05 : MarkWest intends to use the remaining net proceeds to provide working capital for general partnership purposes. Morgan Stanley, BofA Merrill Lynch, Citigroup, RBC Capital Markets and Wells Fargo Securities are acting as joint book-running managers for the offering.
4:06PM Cardiovascular Systems sees Q1 revs of $18.7 mln, lower than previous guidance, Capital IQ consensus $21.6 mln; expects net loss of $0.22 to 0.24, consensus -$0.19 (CSII) 10.30 q+0.10 : Co announced preliminary revenue of approximately $18.7 million for the fiscal 2012 first quarter ended September 30, 2011, compared with $18.2 million in the first quarter of fiscal 2011, Capital IQ consensus $21.2 mln. The fiscal 2012 first-quarter net loss is expected to be in the range of $(3.9) million to $(4.2) million, or $(0.22) to $(0.24) per common share, including approximately $(400,000), or $(0.02) per common share, of expenses related to conversion and valuation changes of convertible debt. Net loss was $(4.3) million, or $(0.28) per common share, in the fiscal 2011 first quarter. "We believe the sluggish first-quarter revenue growth is temporary, and we expect double-digit revenue growth for the full fiscal year. In fact, revenue in the month of September improved significantly as the short-term effect of these factors began to subside, growing 14 percent over September 2010. We remain confident that the strength of our Stealth 360 in an underserved PAD market, supported by unprecedented clinical data demonstrating its excellent safety and effectiveness, will result in attractive, sustainable growth over the long term."
4:05PM Highpower Intl appoints Marcum Bernstein & Pinchuk as new independent registered public accounting firm (HPJ) 1.22 +0.07 : The change in the independent registered public accounting firm is effective as of September 30, 2011. There were no disagreements between Highpower International and Dominic K.F. Chan & Co. on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures.
4:03PM Credit Acceptance Corp. announces completion of $200.5 mln asset-backed financing (CACC) 67.60 +1.07 : Pursuant to this transaction, we contributed loans having a net book value of ~$250.8 million to a wholly-owned special purpose entity which will transfer the loans to a trust, which will issue three classes of notes. The Financing will have an expected annualized cost of ~3.5% including the initial purchaser's fees and other costs, revolve for 24 months after which it will amortize based upon the cash flows on the contributed loans; and be used by us to repay outstanding indebtedness.
4:02PM American Capital invested $15 mln to support BMO Capital Markets' syndication of $100 mln Second Lien Term Loan financing to support purchase of majority stake of Flexera Software by Teachers' Private Capital from Thoma Bravo (ACAS) 6.83 +0.33 :
4:02PM Affymetrix announced commercialization 18 new microarrays for gene expression analysis (AFFX) 5.69 +0.21 : Co announced commercialization of 18 new array designs for whole-transcriptome analysis of model and applied research organisms that will allow scientists to obtain a more complete gene expression view than traditional 3' biased arrays.
4:02PM ServiceSource Intl sees Q3 revenues of 'greater than $49 mln'; forecast was $45-46 mln; raises 2011 rev guidance (SREV) 13.35 +0.45 : Capital IQ consensus stands at $46.1 mln. The Company also expects to report third quarter net income and non-GAAP earnings per share above its prior guidance range. These preliminary results exceed the Company's previous guidance for the third quarter of revenue of $45 to $46 million, adjusted EBITDA of $0.5 to $1.0 million, net loss of $4.5 to $5.0 million, and non-GAAP earnings per diluted share of approximately breakeven to a loss of one cent per share (Capital IQ consensus -$0.01) as provided on July 25, 2011. The Company ended the quarter with over $100 million of cash and short-term securities. The Company also raised its full year 2011 revenue guidance, expecting revenue greater than $195 million, reflecting at least 28% year-over-year growth and which compares to previous guidance of $190 to $192 million for the year, Capital IQ consensus $191.9 mln. The Company said that it expects to raise guidance for adjusted EBITDA, net income and non-GAAP earnings per share when it announces final results for the quarter.
4:00PM Meru Networks announced that President and Chief Executive Officer Ihab Abu-Hakima will transition out of the company (MERU) 8.02 -0.37 : Mr. Abu-Hakima will work closely with the company's Board of Directors to identify a successor specifically suited to lead the company into its next phase of growth.
3:58PM Earnings Calendar (SUMRX) : Today after the close ANGO is scheduled to report. Tomorrow before the open no companies are currently scheduled to report.
3:44PM Stock indices edge to new afternoon/session highs -- Dow +151, S&P +17, Nasdaq Comp +38 (SPY) :
3:31PM Praxair acquires Houston-based gas distributor National Alloy and Equipment; Financial terms of the transaction were not disclosed (PX) 98.07 -0.21 :
3:22PM Modest slippage off afternoon highs -- Dow +93 has pulled back 67 points off its high, S&P +9.4, Nasdaq Comp +23 (SPY) :
2:55PM Pall Board of Directors authorizes $250 mln to repurchase shares (PLL) 44.60 +1.37 :
2:39PM Gold Resource increases third quarter production by 87% with preliminary production results of ~ 25,200 ounces precious metal gold equivalent (GORO) 19.00 +0.37 : Co's 87% production increase keeps it in line with the current annual target of 60,000 to 70,000 ounces AuEq for 2011. The level of production during the third quarter represents a current annual run rate of over 100K AuEq ounces. Continued mill optimization of metallurgical recovery and increasing average head grades from the Arista Mine contributed to these record production levels.
2:36PM NYMEX Energy Closing Prices (COMDX) : Crude oil rallied for $2.91 to settle at $82.59, natural gas closed up 3 cents at $3.60, heating oil rallied for 8 cents to close at $2.86, while RBOB gasoline gained 11 cents to end at $2.68 (all Nov contracts).
1:45PM Midday lateral drift continues -- Dow +69, S&P +8, Nasdaq Comp +18 (SPY) : Watching intraday supports at 1150 and 1146 for a read on the underlying health of today's upside extension.
1:35PM Anixter announced earlier that it is establishing strategic partnership in Saudi Arabia (AXE) 47.70 -0.57 : Co announced earlier that it is establishing a strategic partnership in the Kingdom of Saudi Arabia with Mohawarean Trading Company (MTC), a subsidiary of Mohawarean International Group (MIG), through the formation of a new business entity, Anixter Saudi Arabia Limited. Anixter will have the majority holding in the joint venture.
1:32PM COMEX Metals Closing Prices (COMDX) : Gold ended higher by $10.90 at $1652.50, silver rallied for $1.54 to finish at $31.90, while copper futures ended up a penny at $3.26 (all Dec contracts).
12:51PM Crude oil trades to session highs at $81.43; now up $1.65 to $81.33 (COMDX) :
12:01PM Alaska Air and its aircraft technicians reach tentative agreement on proposed five-year contract (ALK) 57.20 +1.44 : Co announced tentative agreement on a proposed five-year contract for the carrier's 626 aircraft technicians and related employees. The proposed contract includes annual pay raises, additional job protection provisions, and a shared commitment between Alaska Airlines and AMFA to work on minimizing health care cost increases.
12:30 pm : Both the Dow and S&P 500 have returned to session highs after a brief pullback. As for the Nasdaq, it is at its best level of the day, sporting a modest lead over each of its counterparts. The Nasdaq's relative strength is consistent with its performances in recent sessions, mostly because large-cap tech has been in favor among market participants.DJ30 +109.74 NASDAQ +34.71 SP500 +14.23 NASDAQ Adv/Vol/Dec 1670/955 mln/705 NYSE Adv/Vol/Dec 2410/385 mln/525
12:00 pm : The S&P 500 recently moved another leg higher so that it came in touch with the 1160 line, but it has been unable to hold that position. In turn, stocks are sitting just shy of their session highs.
Financials continue to provide leadership, which comes in stark contrast to how they started the session. In the early going the financial sector slid to a loss of more than 1%, but it has since rallied to a 2.0% gain. Bank of America (BAC 6.11, +0.34) has been a primary leader. Not only is it the top performing stock in the financial sector by percent gained, it is also the most actively traded name by share volume. Notably, today's trading volume in shares of BAC is already almost half of what the stock averages on a daily basis. DJ30 +93.36 NASDAQ +27.50 SP500 +12.36 NASDAQ Adv/Vol/Dec 1660/860 mln/695 NYSE Adv/Vol/Dec 2380/345 mln/530
11:30 am : The S&P 500 is back near its best level of the day, but it is having a relatively difficult time making much of a move beyond the 1150 line.
The dollar has dropped into negative territory after it had been bid higher in response to statements this morning from the European Central Bank and Bank of England. The sterling pound has since slashed its loss in half so that it trades 0.5% lower on the day at $1.539. Meanwhile, the euro has rallied from a morning loss to a 0.5% gain at $1.342. Germany's Chancellor, Angela Merkel, was recently reported to have stated that the dollar may give way to a multipolar system in time. This concept isn't necessarily anything new, though. DJ30 +63.20 NASDAQ +23.90 SP500 +9.01 NASDAQ Adv/Vol/Dec 1500/700 mln/800 NYSE Adv/Vol/Dec 2240/275 mln/630
10:50AM S&P +3.2 reaches upper end of first resistance zone and pauses (SPY) : Noted the hold at first level support for the S&P from The Technical Take in the 10:08 update (1134/1132) with the 18 point rebound reaching first level resistance at 1150/1152 (congestion, 50% retrace of the Aug to Oct slide) in recent trade. Intraday supports are moved up to 1145 and 1139.
5:47PM Joy Global announces pricing of $500 mln of senior notes (JOYG) 69.32 +2.97 : Co announced that it has priced an offering of $500 million aggregate principal amount of its 5.125% Senior Notes due October 15, 2021 (the "Notes"). The Notes will be senior unsecured obligations of Joy Global and will be guaranteed by certain of Joy Global's material domestic subsidiaries. The Notes will be sold at an issue price of 99.151% of the principal amount. Joy Global expects the offering to close on October 12, 2011, subject to customary closing conditions. Goldman, Sachs & Co., J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as joint book-running managers for the offering.
5:46PM Anaren Microwave lowers Q1 revs guidance to ~$38.7 mln vs. $44 mln Capital IQ Consensus Estimates, from prior guidance of $40-46 mln; lowers EPS to $0.19-0.21 vs. $0.25 consensus, from $0.27-0.32 (ANEN) 21.51 +1.02 : Co lowers Q1 EPS and revenue guidance below consensus. "The reduction in expected revenue and profitability for Q1 of FY12 resulted primarily from a decline in demand for Wireless infrastructure component products, unanticipated delays in approvals for shipments of Space & Defense products and poor operational performance at our Unicircuit operation... We believe the decline in Wireless infrastructure component demand is temporary as customer demand forecasts for calendar 2012 remain robust."
5:31PM Chemtura announces supply agreement for thioester antioxidants (CHMT) 9.70 +0.45 : Co has signed a long-term supply agreement with Tianjin Lisheng Chemical of PR China for production of Chemtura's NAUGARD DSTDP, NAUGARD DLTDP and NAUGARD DTDTDP thioester antioxidants. Under the agreement, Lisheng exclusively supplies Chemtura with thioester antioxidants in all regions outside of Northeast Asia.
5:22PM Globalstar announces resignation of CFO Dirk J. Wild (GSAT) 0.50 +0.04 : Co announced that it has accepted the resignation of Dirk J. Wild, Senior Vice President and Chief Financial Officer effective November 11, 2011. Wild has agreed to stay through this date to oversee the Co's next quarterly financial report which is expected to be filed prior to the effective date of his resignation. Wild is leaving to pursue other career opportunities in southern Louisiana and the Co wishes him well in his new endeavors. Globalstar is currently engaged in a search for his replacement and Wild has agreed to help transition his duties.
5:21PM Met-Pro CFO tenders resignation (MPR) 8.95 +0.06 : Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro, announced today that Gary J. Morgan, the Co's Chief Financial Officer and Director has tendered his resignation, effective January 31, 2012, to pursue other opportunities. Morgan's advance notice of his pending resignation will allow the Co to facilitate an orderly transition. De Hont will be leading Met-Pro Corporation's national search for a new Chief Financial Officer.
5:19PM HCC Insurance Holdings announces launch of primary and excess casualty divisions (HCC) 27.52 +0.45 : HCC Insurance Holdings (HCC) announced the opening of the Co's new Primary Casualty and Excess Casualty Divisions led by Chris Day and Phil Joschko, respectively. The Primary Casualty and Excess Casualty Divisions will further expand the Company's specialty focus by extending its underwriting activities into general liability and excess liability insurance for construction, manufacturing, premises and public entity risks. Combined, Mr. Day and Mr. Joschko bring to HCC over 50 years of underwriting and leadership experience.
5:16PM Gannett Chairman and CEO resigns (GCI) 10.45 -0.01 : Co announced that Craig A. Dubow, chairman and chief executive officer, has resigned due to disability. Dubow had taken a leave of absence on September 15 to address continuing issues relating to prior medical conditions. Marjorie Magner, an independent director since 2006 who has been chairman of the audit committee, has been named non-executive chairman of the board. Gracia C. Martore, president and chief operating officer, who has been serving as principal executive officer while Mr. Dubow was on medical leave, has been named president and chief executive officer and joined Gannett's Board of Directors.
5:07PM Illumina drops almost 10 pts to $30.00 after issuing downside Q3 revs guidance and suspending FY11 guidance (sees 17:02 comment) (ILMN) 39.93 -0.08 :
5:02PM Illumina sees Q3 revs of $235 mln vs $277.3 mln Capital IQ Consensus Estimate; sees Q4 revs guidance higher than Q3; suspends FY11 guidance (ILMN) 39.93 -0.08 : Co issues downside revenue guidance and suspends FY11 guidance. "We currently believe the following factors negatively affected our revenue in Q3 compared to our forecast: Continued uncertainty surrounding the levels of research funding in the U.S. and Europe resulted in purchasing delays for both instruments and consumables, particularly among large volume centers; The launch of the V3 sequencing kits in Q2 created excess capacity that customers were unable to fully utilize. This resulted in a decrease in the consumable revenue per instrument due to fewer runs. This impact will diminish as customers scale and gain access to greater numbers of samples; A significant drop in reagent usage by our remaining Genome Analyzer installed base; and Lower than expected upgrades of Genome Analyzers to HiSeq 2000 systems. "Clearly, we are highly disappointed with our revenue for Q3. In the quarter, we saw what we believe to be an unprecedented slowdown in purchasing due to uncertainties in research funding and overall economic conditions, as well as a temporary excess of sequencing capacity in the market. We expect these conditions to continue through at least Q4, while the 2012-2013 U.S. budgets for NIH and other related agencies are determined. In the face of these challenging macro conditions, our execution, competitive position, and new product flow are as strong as ever. As an example, the launch of the MiSeq has gone extremely well with over 45 systems shipped after we commenced broad shipments in mid-September. Additionally, I'm pleased that the system is performing beyond our expectations in the hands of our customers." While we believe that revenue for Q4 2011 will be higher than Q3 levels, we are suspending the financial guidance for the full year 2011 as provided on July 26, 2011, due to the many market uncertainties described earlier, and as such, this guidance should no longer be considered as the Co's current expectations. We will provide a more detailed business update and complete financial information when we report Q3 results after the close of the market on Tuesday, Oct. 25, 2011. We are currently observing a pre-earnings quiet period and will not make further comments about our Q3 results in the interim."
5:01PM American Oriental Bioengineering announced that the co submitted its plan to cure stock price deficiency with respect to the listing standard of the New York Stock Exchange on Oct 5, 2011 (AOB) 0.59 +0.02 :
5:00PM Blackbaud announces acquisition of Everyday Hero (BLKB) 23.72 +0.59 : Co announced that it has acquired Everyday Hero, a privately-owned company based in Brisbane, Australia. Everyday Hero's event fundraising tools are used by tens of thousands of individual fundraisers and 1400 customers in Australia, New Zealand, and the United Kingdom.
4:59PM Eli Lilly reports that the FDA approves Cialis (LLY) 37.23 +0.20 : The U.S. Food and Drug Administration today approved Cialis (tadalafil) to treat the signs and symptoms of benign prostatic hyperplasia (BPH), a condition in which the prostate gland becomes enlarged, and for the treatment of BPH and erectile dysfunction, when the conditions occur simultaneously. Cialis was approved in 2003 for the treatment of ED.
4:54PM ViaSat reported Anik F2 satellite is experiencing an outage (VSAT) 35.93 +0.98 : Co is reporting that WildBlue service from the Telesat Anik F2 satellite is experiencing an outage due to a technical anomaly, as reported by Telesat earlier today. Based on estimates provided by Telesat, ViaSat projects that WildBlue customers receiving service through Anik F2 will be restored by tomorrow morning.
4:51PM Cascade Bancorp names Terry E. Zink as CEO (CACB) 5.58 +0.25 : Co announced that it has named Terry E. Zink Chief Executive Officer effective January 1, 2012 subject to regulatory approval. Zink most recently served as President and Chief Executive Officer of Fifth Third Bank Chicago, an affiliate of the Fifth Third Bancorp network. Prior to joining Fifth Third Bank, Zink served nearly 17 years with Wells Fargo & Company in several senior management positions in California and Arizona.
4:43PM Zix Corp reaffirms Q3 revs of $9.5-9.7 mln vs. $9.75 mln Capital IQ Consensus Estimate; reaffirms EPS of $0.04 vs. $0.04 consensus in an 8-K (ZIXI) 2.81 +0.12 :
4:38PM MetLife reports in an 8-K non-recurring charges that it expects to incur for Q3 of 2011; expects to incur $115-135 charge to adjust reserves and $80-100 mln charge for catastrophe losses in its Auto & Home business (MET) 30.69 +1.49 : Co has identified the following non-recurring charges that it expects to incur for the third quarter of 2011: (1) The co expects to incur a $115-135 mln, after tax, charge to adjust reserves in connection with the co's use of the U.S. Social Security Administration's Death Master File and similar databases to identify certain group life insurance certificates, individual life insurance policies and other contracts where the covered person may be deceased, but a claim has not yet been presented to the co. (2) The co estimates $80-100 mln, after tax, in catastrophe losses in its Auto & Home business. This estimate is $42-62 mln, after tax, higher than the co's plan provision of $38 mln for the quarter. The higher losses are due to severe storm activity during the quarter, including the impact from Hurricane Irene. (3) On Sept 1, 2011, the New York State Insurance Department's Liquidation Bureau filed a liquidation plan for Executive Life Insurance Co of New York (ELNY), which had been under rehabilitation by the Liquidation Bureau since 1991. The plan will involve the satisfaction of insurers' financial obligations under a number of state life and health insurance guaranty associations and also contemplates that additional industry support for certain ELNY policyholders will be provided. The co expects to incur a net charge of ~$40 mln, after tax, related to ELNY.
4:38PM China Biologic Products announced two changes in its board of directors (CBPO) 6.40 +0.43 : Co announced two changes in its board of directors. On October 6, 2011, Dr. Xiangmin Cui resigned from his positions as a director of China Biologic, a member of the Audit Committee, the Compensation Committee, and the Governance and Nominating Committee, and as Chairman of the Compensation Committee, effective immediately. Mr. Cui's resignation was due to personal reasons and not because of any disagreement on any matter relating to the operations, policies, or practices. Co has appointed Mr. David (Xiaoying) Gao as a director of the Company, a member of the Audit Committee, the Compensation Committee, and the Governance and Nominating Committee, and as the Chairman of the Compensation Committee, effective immediately, to fill the vacancies resulting from Mr. Cui's resignation.
4:33PM Arthur J. Gallagher & Co. acquires S. A. Freerks & Associates (AJG) 27.32 +0.48 : Co announced the acquisition of S. A. Freerks & Associates, Inc. headquartered in St. Louis, Missouri. Terms of the transaction were not disclosed.
4:31PM Dynavax reports diabetic subset data from modified intent to treat analysis of the HEPLISAV phase 3 trial, showing the superiority of HEPLISAV vs. Engerix-B(R), at all measured time points (DVAX) 1.89 +0.01 : Co announced the results of a prospective analysis of the diabetic subset population from its Phase 3 trial (HBV-16), showing the superiority of HEPLISAV vs. Engerix-B(R), at all measured time points. The modified intent to treat (MITT) analysis of adults with type II diabetes showed that HEPLISAV given as 2 doses over 4 weeks protected a significantly greater proportion of subjects in a shorter time and with longer-lasting protection than Engerix-B given as 3 doses over 24 weeks. The modified intent to treat (MITT) subpopulations included all diabetic subjects that had received at least one dose of any of the four HEPLISAV lots or Engerix-B and had at least one post vaccination immunogenicity result.
4:30PM IPG Photonics prevails in patent suit brought by IMRA America (IPGP) 47.76 +2.72 : Co announces that a jury in the District Court for the Eastern District of Michigan has determined that the Company does not infringe on IMRA America's patent number 5,818,630 in a suit originally brought by IMRA in 2006. In its ruling, the jury found that the Company did not infringe on the claims asserted by IMRA.
4:24PM Keyuan Petrochemicals will begin trading on the OTC market beginning October 7 under same ticker following Nasdaq delisting notice (KEYP) 4.88 :
4:21PM Hansen Medical announces settlement of SEC investigation (HNSN) 3.35 +0.17 : Co announced that it has entered into a settlement with the United States Securities and Exchange Commission ("SEC") that fully resolves the SEC investigation of the col relating to the issues surrounding the restatement of its financial statements that was first reported in October 2009. Under the settlement, the co has consented to the entry of an administrative order (the "Order"), released today by the SEC. The SEC's Order does not impose a monetary penalty or fine on the co and does not subject the co to an injunction. The co consented to the entry of the Order without admitting or denying the factual findings or legal conclusions contained in the Order. The SEC did not charge any of the co's directors or current officers or employees with any violations.
4:16PM Oasis Petroleum announces redetermination of borrowing base and other changes to credit agreement (OAS) 23.12 +1.02 : Co announced that the lenders under its revolving credit agreement completed their regular semi-annual redetermination of the borrowing base, resulting in an increase to the borrowing base from $137.5 million to $350 million. In addition, the interest rate under the Oasis credit agreement was reduced and now ranges from LIBOR plus 150 bps to LIBOR plus 250 bps depending on borrowing base utilization. The maturity date was extended from February 26, 2015 to October 6, 2016. The size of its revolving credit facility increased from $600 million to $1 billion. As of September 30, 2011, Oasis had no outstanding indebtedness under its revolving credit facility. The next redetermination of the borrowing base is scheduled for April 1, 2012.
4:16PM Alvarion will report one time charge of $7 mln due to open range bankruptcy filing; has not been determined whether this charge will affect Q3 (ALVR) 1.06 0.00 : Co announced that, as a result of the bankruptcy petition filed by Open Range Communication ("ORC"), it expects a one-time charge of approximately $7 million. It has not been determined whether this charge will affect the financial statement for the third quarter, which ended September 30, 2011, which will be reported on November 2, 2011, or if the impact will appear in the fourth quarter results. Alvarion was the turnkey network technology provider to ORC.
4:15PM Clorox CFO Dan Heinrich to retire; Steve Robb named CFO (CLX) 67.34 +1.52 : Daniel Heinrich has announced his retirement from the co effective Nov. 16, 2011. Heinrich, who joined Clorox in 2001 as the co's controller, was appointed chief financial officer and a member of the company's executive committee in 2003. Effective Nov. 17, 2011, Stephen Robb will succeed Heinrich and has been appointed senior vice president - chief financial officer. Robb, who joined Clorox in 1989, is currently Clorox's vice president - finance, with day-to-day responsibility for most operations of the global finance function.
4:15PM Regency Energy Partners LP announced commencement of underwritten public offering of 10 mln common units representing limited partner interests in Regency (RGP) 21.61 +0.17 :
4:11PM AngioDynamics misses by $0.01, beats on revs; reaffirms Q2 EPS guidance, revs guidance; reaffirms Q3 (Feb) EPS guidance, revs guidance; reaffirms FY12 EPS guidance, revs guidance (ANGO) 14.26 +0.46 : Reports Q1 (Aug) earnings of $0.08 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.09; revenues rose 5.6% year/year to $54.4 mln vs the $53.6 mln consensus. AngioDynamics reaffirms Q2, Q3 and Q4 non-GAAP EPS and rev guidance. Co reaffirms guidance for Q2, sees EPS of $0.11-0.13, excluding non-recurring items, vs. $0.12 Capital IQ Consensus Estimate; sees Q2 revs of $55.5-57.5 mln, excluding non-recurring items, vs. $56.09 mln Capital IQ Consensus Estimate. Co reaffirms guidance for Q3 (Feb), sees EPS of $0.11-0.13, excluding non-recurring items, vs. $0.11 Capital IQ Consensus Estimate; sees Q3 (Feb) revs of $54.5-56.5 mln, excluding non-recurring items, vs. $53.89 mln Capital IQ Consensus Estimate. Co reaffirms guidance for FY12, sees EPS of $0.41-0.49, excluding non-recurring items, vs. $0.45 Capital IQ Consensus Estimate; sees FY12 revs of $217-225 mln, excluding non-recurring items, vs. $218.79 mln Capital IQ Consensus Estimate. Gross margin increased to 59.1% compared with 57.7% in the fiscal 2011 fourth quarter and 58.3% a year ago. The increase is primarily attributable to material cost reduction programs and improved manufacturing facility utilization. Co also reported that the Company's Board of Directors has authorized the repurchase, prior to May 31, 2012, of up to $20 million of the Company's common stock.
4:10PM Univest Corp. of PA adopts shareholder rights plan (UVSP) 14.49 +0.39 : Co adopted a Shareholder Rights Plan designed to protect shareholders from abusive takeover tactics and attempts to acquire control of the Company at an inadequate price.
4:09PM Smith & Wesson holding corporation announces plan to divest perimeter security business (SWHC) 2.64 +0.02 : Co announced that they have made the decision to divest its perimeter security business in order to focus on its core firearm business. The co is currently exploring strategic alternatives to accomplish the divestiture. "The decision to divest the security solutions division and focus our financial, managerial, and operational resources toward expanding our presence across our firearm market channels is intended to support our long-term growth opportunities and enhance stockholder value."
4:09PM MarkWest Energy commences a 5 mln common unit offering (MWE) 46.98 +1.05 : MarkWest intends to use the remaining net proceeds to provide working capital for general partnership purposes. Morgan Stanley, BofA Merrill Lynch, Citigroup, RBC Capital Markets and Wells Fargo Securities are acting as joint book-running managers for the offering.
4:06PM Cardiovascular Systems sees Q1 revs of $18.7 mln, lower than previous guidance, Capital IQ consensus $21.6 mln; expects net loss of $0.22 to 0.24, consensus -$0.19 (CSII) 10.30 q+0.10 : Co announced preliminary revenue of approximately $18.7 million for the fiscal 2012 first quarter ended September 30, 2011, compared with $18.2 million in the first quarter of fiscal 2011, Capital IQ consensus $21.2 mln. The fiscal 2012 first-quarter net loss is expected to be in the range of $(3.9) million to $(4.2) million, or $(0.22) to $(0.24) per common share, including approximately $(400,000), or $(0.02) per common share, of expenses related to conversion and valuation changes of convertible debt. Net loss was $(4.3) million, or $(0.28) per common share, in the fiscal 2011 first quarter. "We believe the sluggish first-quarter revenue growth is temporary, and we expect double-digit revenue growth for the full fiscal year. In fact, revenue in the month of September improved significantly as the short-term effect of these factors began to subside, growing 14 percent over September 2010. We remain confident that the strength of our Stealth 360 in an underserved PAD market, supported by unprecedented clinical data demonstrating its excellent safety and effectiveness, will result in attractive, sustainable growth over the long term."
4:05PM Highpower Intl appoints Marcum Bernstein & Pinchuk as new independent registered public accounting firm (HPJ) 1.22 +0.07 : The change in the independent registered public accounting firm is effective as of September 30, 2011. There were no disagreements between Highpower International and Dominic K.F. Chan & Co. on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures.
4:03PM Credit Acceptance Corp. announces completion of $200.5 mln asset-backed financing (CACC) 67.60 +1.07 : Pursuant to this transaction, we contributed loans having a net book value of ~$250.8 million to a wholly-owned special purpose entity which will transfer the loans to a trust, which will issue three classes of notes. The Financing will have an expected annualized cost of ~3.5% including the initial purchaser's fees and other costs, revolve for 24 months after which it will amortize based upon the cash flows on the contributed loans; and be used by us to repay outstanding indebtedness.
4:02PM American Capital invested $15 mln to support BMO Capital Markets' syndication of $100 mln Second Lien Term Loan financing to support purchase of majority stake of Flexera Software by Teachers' Private Capital from Thoma Bravo (ACAS) 6.83 +0.33 :
4:02PM Affymetrix announced commercialization 18 new microarrays for gene expression analysis (AFFX) 5.69 +0.21 : Co announced commercialization of 18 new array designs for whole-transcriptome analysis of model and applied research organisms that will allow scientists to obtain a more complete gene expression view than traditional 3' biased arrays.
4:02PM ServiceSource Intl sees Q3 revenues of 'greater than $49 mln'; forecast was $45-46 mln; raises 2011 rev guidance (SREV) 13.35 +0.45 : Capital IQ consensus stands at $46.1 mln. The Company also expects to report third quarter net income and non-GAAP earnings per share above its prior guidance range. These preliminary results exceed the Company's previous guidance for the third quarter of revenue of $45 to $46 million, adjusted EBITDA of $0.5 to $1.0 million, net loss of $4.5 to $5.0 million, and non-GAAP earnings per diluted share of approximately breakeven to a loss of one cent per share (Capital IQ consensus -$0.01) as provided on July 25, 2011. The Company ended the quarter with over $100 million of cash and short-term securities. The Company also raised its full year 2011 revenue guidance, expecting revenue greater than $195 million, reflecting at least 28% year-over-year growth and which compares to previous guidance of $190 to $192 million for the year, Capital IQ consensus $191.9 mln. The Company said that it expects to raise guidance for adjusted EBITDA, net income and non-GAAP earnings per share when it announces final results for the quarter.
4:00PM Meru Networks announced that President and Chief Executive Officer Ihab Abu-Hakima will transition out of the company (MERU) 8.02 -0.37 : Mr. Abu-Hakima will work closely with the company's Board of Directors to identify a successor specifically suited to lead the company into its next phase of growth.
3:58PM Earnings Calendar (SUMRX) : Today after the close ANGO is scheduled to report. Tomorrow before the open no companies are currently scheduled to report.
3:44PM Stock indices edge to new afternoon/session highs -- Dow +151, S&P +17, Nasdaq Comp +38 (SPY) :
3:31PM Praxair acquires Houston-based gas distributor National Alloy and Equipment; Financial terms of the transaction were not disclosed (PX) 98.07 -0.21 :
3:22PM Modest slippage off afternoon highs -- Dow +93 has pulled back 67 points off its high, S&P +9.4, Nasdaq Comp +23 (SPY) :
2:55PM Pall Board of Directors authorizes $250 mln to repurchase shares (PLL) 44.60 +1.37 :
2:39PM Gold Resource increases third quarter production by 87% with preliminary production results of ~ 25,200 ounces precious metal gold equivalent (GORO) 19.00 +0.37 : Co's 87% production increase keeps it in line with the current annual target of 60,000 to 70,000 ounces AuEq for 2011. The level of production during the third quarter represents a current annual run rate of over 100K AuEq ounces. Continued mill optimization of metallurgical recovery and increasing average head grades from the Arista Mine contributed to these record production levels.
2:36PM NYMEX Energy Closing Prices (COMDX) : Crude oil rallied for $2.91 to settle at $82.59, natural gas closed up 3 cents at $3.60, heating oil rallied for 8 cents to close at $2.86, while RBOB gasoline gained 11 cents to end at $2.68 (all Nov contracts).
1:45PM Midday lateral drift continues -- Dow +69, S&P +8, Nasdaq Comp +18 (SPY) : Watching intraday supports at 1150 and 1146 for a read on the underlying health of today's upside extension.
1:35PM Anixter announced earlier that it is establishing strategic partnership in Saudi Arabia (AXE) 47.70 -0.57 : Co announced earlier that it is establishing a strategic partnership in the Kingdom of Saudi Arabia with Mohawarean Trading Company (MTC), a subsidiary of Mohawarean International Group (MIG), through the formation of a new business entity, Anixter Saudi Arabia Limited. Anixter will have the majority holding in the joint venture.
1:32PM COMEX Metals Closing Prices (COMDX) : Gold ended higher by $10.90 at $1652.50, silver rallied for $1.54 to finish at $31.90, while copper futures ended up a penny at $3.26 (all Dec contracts).
12:51PM Crude oil trades to session highs at $81.43; now up $1.65 to $81.33 (COMDX) :
12:01PM Alaska Air and its aircraft technicians reach tentative agreement on proposed five-year contract (ALK) 57.20 +1.44 : Co announced tentative agreement on a proposed five-year contract for the carrier's 626 aircraft technicians and related employees. The proposed contract includes annual pay raises, additional job protection provisions, and a shared commitment between Alaska Airlines and AMFA to work on minimizing health care cost increases.
12:30 pm : Both the Dow and S&P 500 have returned to session highs after a brief pullback. As for the Nasdaq, it is at its best level of the day, sporting a modest lead over each of its counterparts. The Nasdaq's relative strength is consistent with its performances in recent sessions, mostly because large-cap tech has been in favor among market participants.DJ30 +109.74 NASDAQ +34.71 SP500 +14.23 NASDAQ Adv/Vol/Dec 1670/955 mln/705 NYSE Adv/Vol/Dec 2410/385 mln/525
12:00 pm : The S&P 500 recently moved another leg higher so that it came in touch with the 1160 line, but it has been unable to hold that position. In turn, stocks are sitting just shy of their session highs.
Financials continue to provide leadership, which comes in stark contrast to how they started the session. In the early going the financial sector slid to a loss of more than 1%, but it has since rallied to a 2.0% gain. Bank of America (BAC 6.11, +0.34) has been a primary leader. Not only is it the top performing stock in the financial sector by percent gained, it is also the most actively traded name by share volume. Notably, today's trading volume in shares of BAC is already almost half of what the stock averages on a daily basis. DJ30 +93.36 NASDAQ +27.50 SP500 +12.36 NASDAQ Adv/Vol/Dec 1660/860 mln/695 NYSE Adv/Vol/Dec 2380/345 mln/530
11:30 am : The S&P 500 is back near its best level of the day, but it is having a relatively difficult time making much of a move beyond the 1150 line.
The dollar has dropped into negative territory after it had been bid higher in response to statements this morning from the European Central Bank and Bank of England. The sterling pound has since slashed its loss in half so that it trades 0.5% lower on the day at $1.539. Meanwhile, the euro has rallied from a morning loss to a 0.5% gain at $1.342. Germany's Chancellor, Angela Merkel, was recently reported to have stated that the dollar may give way to a multipolar system in time. This concept isn't necessarily anything new, though. DJ30 +63.20 NASDAQ +23.90 SP500 +9.01 NASDAQ Adv/Vol/Dec 1500/700 mln/800 NYSE Adv/Vol/Dec 2240/275 mln/630
10:50AM S&P +3.2 reaches upper end of first resistance zone and pauses (SPY) : Noted the hold at first level support for the S&P from The Technical Take in the 10:08 update (1134/1132) with the 18 point rebound reaching first level resistance at 1150/1152 (congestion, 50% retrace of the Aug to Oct slide) in recent trade. Intraday supports are moved up to 1145 and 1139.
10:30AM Natural gas futures trade into negative territory following data; now off 3 cents at $3.54 (UNG) :
10:24AM Hewlett-Packard sets new session high of 24.35 (HPQ) 24.34 +0.48 : Its two week range top and first thrust high off the Sep/52-wk low established last week comes into play at 24.50.
10:16AM Sector relative strength on recent push (TECHX) : Sector outperforming the S&P on a relative basis in recent action include: Oil Service OIH, Materials XLB, Retail XRT, Solar TAN, Silver SLV, Steel SLX, Ag/Chem MOO, Housing XHB, Discretionary XLY.
10:14AM Stock indices extending push off low with Nasdaq Comp +10 pacing the way -- S&P +0.8, Dow -6 (SPY) : An extension of the bounce off first level supports (see 10:08 update) has allowed the leading Nasdaq Comp to edge slightly above yesterday's high. The S&P are Dow are vacillating slightly under their Wed highs.
10:08AM Choppy trade but S&P -3.1 and Nasdaq Comp +1.7 hold/edge off first level support (SPY) : Noted first level support at 2446/2439 Nasdaq Comp (session low 2446) and 1134/1132 S&P (session low 1134) in The Technical Take and have seen a test/stabilization off these zones in recent trade with some upticks following.
9:55AM DuPont starts up $500 mln Kevlar facility in South Carolina (DD) 41.12 -0.09 :
9:53AM SPDR Retail extends surge off weekly low to 10%, stalls near its 50 sma (XRT) 47.57 +0.08 : Same-store-sales were reported this morning which provided a modest boost bringing the surge off this week's low to 10%. It has stalled in the vicinity of its 50 sma at 47.91 and slipped back in recent trade. KSS +0.8% (stalled near its Sep peak), NFLX +1.3%, GME +1.1%, ROST +2.8%, FOSL +1.5%, PCLN +2.2%, PSS +1.1%, GES +1.2%, TGT +3.7%, ZLC +4.6%.
9:50AM Opening Point Gainers/Losers (TECHX) : Point Gainers: PCLN (+9.63), WYNN (+5.35), RL (+3.21), ESRX (+3.27), MON (+3.01), BIDU (+3.73), MCP (+2.56), MHS (+2.45), ZUMZ (+2.15), IVN (+2.40), TGT (+1.96), BKE (+3.90), WLT (+1.74)
Point Losers: CMG (-9.29), AAPL (-3.05), GS (-2.29), TJX (-2.08), APKT (-1.80), CVX (-1.68), CAH (-1.60), DB (-1.60), WDR (-1.30), CRM (-1.06), APC (-1.32)
Point Losers: CMG (-9.29), AAPL (-3.05), GS (-2.29), TJX (-2.08), APKT (-1.80), CVX (-1.68), CAH (-1.60), DB (-1.60), WDR (-1.30), CRM (-1.06), APC (-1.32)
9:49AM Gold to fresh lows (COMDX) :
9:39AM Mixed open with indices vacillating slightly under Wed highs/closes -- Dow -13, S&P -1.6, Nasdaq Comp +0.5 (SPY) : Sectors underperforming in early trade include: Bank KBE -1%, Finance XLF -1%, Reg Bank RKH -0.9%, Insurance KIE -0.9%, Broker IAI -0.7%, Transports IYT -0.7%.
9:36AM HMS Holdings: Blue Cross and Blue Shield of Minnesota awards data mining contract to HMS (HMSY) 24.69 +0.39 : Co announced that it has been awarded a contract by Blue Cross and Blue Shield of Minnesota to perform data mining, coordination of benefits and cost avoidance, overpayment recoveries, and clinical reviews for BCBSM's government programs.
9:33AM Kohl's firms off open after reporting sales/providing guidance, vacillating near its 200 ema and Sep high at 50.63/50.84 (KSS) 50.84 +1.33 : Note that its 200 sma is at 51.61.
9:24AM On The Wires (WIRES) :
- I.D. Systems (IDSY) received a series of purchase orders from the United States Postal Service for software upgrades and support services related to its wireless industrial vehicle management system.
- Physicians Formula Holdings (FACE) announced it has committed to fund a new $4.0 mln Term Note with Wells Fargo Business Credit by November 15, 2011.
- Top Image Systems (TISA) announced that the Company has sealed a deal with BARMER GEK e.V.
- Harris Corporation (HRS) received a $16 mln order from the U.S. Department of Defense for additional Falcon III multiband manpack radios systems.
- Shaw Group (SHAW) announced a new joint venture between Shaw's Fabrication & Manufacturing Group and Empresa Brasileira de Solda Eletrica.
- Webshots.com, an American Greetings (AM) company, and Animoto have partnered to create Picture Shows for the Webshots community.
9:21AM TJX sees 3Q EPS of $1.03-1.07 vs $1.07 Capital IQ Consensus Estimate (TJX) 56.39 :
9:20AM ProLogis reaffirms disposition and contribution guidance (PLD) 23.21 : In conjunction with its second quarter earnings call, the company provided disposition and contribution guidance of $1.2 billion to $1.5 billion for the second half of 2011, with the substantial majority expected to close in the fourth quarter of 2011. The company is well on its way to achieve its guidance as it has completed more than $720 million in dispositions and contributions in the second half of 2011, achieving more than 50 percent of its guidance midpoint.
9:16AM Tandy Leather Factory reports September 2011 sales up 9% YoY (TLF) 4.74 : Co reported that sales for the month of September were $5.1 mln, up 9% compared to September 2010 sales of $4.7 mln. Year to date sales are up 11% to $47.4 mln in the current year from $42.6 mln last year.
9:14AM Seven Arts Pictures announced earlier that subsidiary executed an agreement with Entertainment One Distribution (SAPX) 0.31 : Pursuant to the distribution agreement, Big Jake Music, will be releasing Seven Arts film soundtracks, along with proprietary recording artists on a national and global basis. The initial soundtrack releases shall be for the Seven Arts films "Night of the Demons" and "The Pool Boys."
9:09AM Alere to acquire Axis-Shield for 235 mln pounds (ALR) 19.54 : The Board of Alere announces that it has reached agreement with the Board of Axis-Shield on the terms of a recommended increased cash offer for the entire issued and to be issued share capital of Axis-Shield. Under the terms of the Revised Offer, Axis-Shield Shareholders will receive 470 pence in cash for each Axis-Shield Share, valuing the entire existing issued share capital of Axis-Shield at ~ 235 mln pounds. In consideration of the Revised Offer, and after consultation with the Takeover Panel, all parties have agreed to extend the timetable for the Revised Offer so that it remains open for acceptances.
9:06AM Crude oil drops sharply into negative territory (COMDX) :
9:03AM Ivanhoe Mines, Rio Tinto (RIO) and the Govt of Mongolia have concluded discussions on the two aspects of the Investment Agreement that were raised by the Government of Mongolia, and are pleased to confirm that all parties have reaffirmed their continued support for the Investment Agreement and its implementation (IVN) 14.98 : The Investment Agreement has also formed the basis for the construction of Oyu Tolgoi, which recently passed the 50% completion mark and is expected to begin initial production during the third quarter of next year. To reach this point, $2.6 bln have been invested by Ivanhoe Mines and Rio Tinto and a significant amount has been committed to bring Oyu Tolgoi into production.
8:57AM Golar LNG Partners announced it will acquire the floating storage and regasification unit Glar Freeze from Golar LNG (GLNG) for $330 mln (GMLP) 23.30 : Golar Freeze is expected to contribute ~$46 mln in additional annual revenues. Under the current financing structure and during the firm contract period the vessel is also expected to contribute ~$39 mln in Adjusted EBITDA and ~$8 mln in Distributable Cash Flow. The transaction is accretive to unit holders in terms of enterprise value to EBITDA, earnings per share as well as in terms of Distributable Cash Flow.
8:53AM Omnicare comments on potential CMS changes related to consultant pharmacists - co believes that the potential change would not have any material adverse effects on its business (OCR) 22.75 : Co commented on the Centers for Medicare and Medicaid Services' request for comments regarding its consideration of changes to the Conditions of Participation for Long Term Care Facilities released on October 3, 2011. Omnicare noted that it is in the process of reviewing the potential change requiring the independence of consultant pharmacists with its regulatory and legal advisors. Although Omnicare's review is not yet complete, at this time the co believes that the potential change would not have any material adverse effects on co's business. Co believes that regulators need to pursue a thoughtful and evidence-based evaluation of the role of consultant pharmacists. Co's concern remains that payors and customers and their residents may be denied these benefits or forced to pay more for them if CMS were to mandate the change it is considering. Co believes that rather than reducing costs, the CMS proposal is likely to add costs.
8:44AM Relm Wireless annouced it has received orders for P25 trunking radios totaling $1.0 mln From multiple branches of the U.S. Military (RWC) 1.01 : Co announced that it has received orders totaling approximately $1.0 million from several different branches of the U. S. Military, all of which are for the co's KNG P25 trunked portable and mobile VHF and UHF radios including related accessories. It is anticipated that the orders will be fulfilled during the fourth quarter of 2011.
8:42AM On The Wires (WIRES) :
- IBM (IBM) announced that it has signed an agreement to provide human resource business process services to Air Canada for a nearly eight-year, $80 mln contract.
- Peregrine Pharmaceuticals (PPHM) announced the completion of enrollment and randomization of 121 patients in a double-blind, placebo-controlled Phase II trial evaluating bavituximab in combination with docetaxel in patients with previously treated locally advanced or metastatic non-small cell lung cancer.
- Honeywell (HON) announced it has been selected by Scottish and Southern Energy to conduct the first automated demand response pilot project for commercial and industrial facilities in Europe.
- GSO Capital Partners, the credit platform of Blackstone (BX) announced the acquisition of Harbourmaster Capital, a European leveraged loan manager which manages and advises on ~ EUR8 bln ($11 bln) of assets.
- DigitalGlobe (DGI) announced that, in connection with its previously announced cash tender offer to purchase any and all of its outstanding 10.5% Senior Secured Notes due 2014.
8:36AM EDAP TMS SA has received marketing clearance from the Russian Federal Healthcare Department for its Sonolith i-move device (EDAP) 1.53 :
8:36AM Duckwall-ALCO Stores reports September same-store basis, excluding fuel, sales increased 3.0% YoY (DUCK) 9.31 : Co announced that sales from continuing operations increased 4.0% to $41.7 million for the fiscal five-week period ended October 2, 2011, compared to $40.1 million during the same period of the prior year. On a same-store basis, excluding fuel, sales increased 3.0% from a year earlier.
8:34AM Robbins & Myers beats by $0.02, beats on revs; guides Q1 EPS in-line; guides FY12 EPS in-line; authorizes 3 mln share additional share repurchase (RBN) 36.51 : Reports Q4 (Aug) earnings of $0.77 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.75; revenues rose 85.1% year/year to $259 mln vs the $254.8 mln consensus. Co issues in-line guidance for Q1, sees EPS of $0.60-0.70 vs. $0.67 Capital IQ Consensus Estimate. Co issues in-line guidance for FY12, sees EPS of $2.85-3.05 vs. $2.96 Capital IQ Consensus Estimate. Additionally, co announces its Board of Directors has authorized the Company to repurchase up to 3 mln of the co's currently outstanding common shares, in addition to the 992K shares currently available for repurchase under the October 2008 authorization.
8:34AM Perrigo confirms FDA tentative approval for Clobetasol Propionate Emulsion Foam (PRGO) 94.49 : Co announced that it received tentative approval from the FDA for its Abbreviated New Drug Application for Clobetasol Propionate Emulsion Foam, 0.05%. Perrigo believes it is first-to-file on this product.
8:33AM Tengion receives Nasdaq notice of minimum bid price non-compliance (TNGN) 0.47 : Co announced that it received notice from the Listing Qualifications Department of the Nasdaq Stock Market indicating that, for the last 30 consecutive business days, the bid price for the co's common stock had closed below the minimum $1.00 per share required for continued inclusion on The Nasdaq Global Market under Nasdaq Listing Rule.Tengion
8:33AM FuelCell Energy announced that the DOE awarded approx $1 mln to it to further develop and demonstrate a highly efficient and reliable method for simultaneously separating and compressing hydrogen for multiple applications utilizing its solid-state electrochemical hydrogen separation and compression tech (FCEL) 0.92 :
8:31AM Pandora Media announced Toyota (TM) offering an embedded version of Pandora on the 2012 Camry and 2012 Tacoma (P) 12.15 :
8:28AM Nordstrom reports Sep same store sales +10.7% vs +5.1% Retail Metrics consensus (JWN) 35.24 : Preliminary total retail sales of $943 mln for September 2011 increased 16.3% compared with total retail sales of $810 mln for the same period in fiscal 2010
8:23AM Constellation Brands beats by $0.11, beats on revs; guides FY12 EPS above consensus (STZ) 18.72 : Reports Q2 (Aug) earnings of $0.77 per share, $0.11 better than the Capital IQ Consensus Estimate of $0.66; revenues fell 20.0% year/year to $690 mln vs the $664.7 mln consensus. Co issues upside guidance for FY12, raises EPS to $2.00-2.10 from $1.90-2.00 vs. $1.95 Capital IQ Consensus Estimate. Reported consolidated net sales decreased 20% due primarily to the divestiture of the Australian and U.K. wine business. North American net sales on an organic constant currency basis were even with the prior year quarter and reflected favorable product mix offset by a decrease in volume and higher promotion costs in the U.S. The minimal decrease in consolidated comparable basis operating income was driven primarily by higher marketing and promotional spend combined with higher transportation costs in North America, partially offset by lower corporate expenses. During second quarter 2012, the company repurchased 9.8 mln shares of common stock at a cost of $188 mln. Subsequent to the end of the second quarter through Sept. 30, 2011, the co repurchased an additional 3.5 mln shares at a cost of $63 mln.
8:20AM Gold trades to its lowest levels following open of pit trade; now off $1.70 to $1639.90 (COMDX) :
8:17AM Towerstream and Boingo (WIFI) have signed an agreement to provide internet to Manhattan (TWER) 2.72 : Cos have signed an agreement that will allow Boingo to manage Internet services across the state-of-the-art Wi-Fi network in New York City's Manhattan borough that is operated by Towerstream. It will be available to Boingo's retail Wi-Fi customers and anyone who wants to purchase Wi-Fi access, as well as the company's wholesale platform service customers, such as KT, Orange France, Skype, recently acquired by Ebay (EBAY) and Verizon (VZ). The agreement includes provisions for Boingo to leverage additional networks that Towerstream may build and launch in the future. The Boingo-managed network in Manhattan is expected to launch before the end of the year.
8:06AM Ecotality awarded $26.4 mln for advanced vehicle testing & evaluation by U.S. Department of Energy (ECTY) 1.65 :
8:05AM Neptune Technologies launches patent infringement litigation against Aker Biomarine, Enzymotec, and others (NEPT) 2.40 : Co announced it has filed complaints in the U.S. District Court for the District of Delaware alleging infringement of its recently issued patent. The action was filed by Neptune for infringement of its recently issued omega-3 composition patent against Aker Biomarine, Aker Biomarine Antarctic, and Schiff Nutritional International. Neptune has launched a separate infringement action against Enzymotec Limited, Enzymotec Mercola.com Health Resources and Azantis.
8:05AM Ashford Hospitality Trust sees Q3 AFFO in-line; guides RevPAR (AHT) 6.77 : Co sees AFFO of $0.36-0.40 vs $0.37 Capital IQ Consensus Estimate. The co expects to report an increase of approximately 5.9% in RevPAR for all Legacy hotels in continuing operations and an increase of approximately 5.5% in RevPAR for all hotels in continuing operations in the Highland Hospitality Portfolio for the third quarter of 2011, compared with the previous year.
8:04AM Celgene releases new information with regard to Article 20 procedure conclusion (CELG) 64.08 : Co announced, that it is rectifying information in its press release of September 23rd, 2011 to provide more complete information on the observed risk of cancer and recommended changes to the product label for REVLIMID in the EU, as a result of the Article 20 Review by the Committee for Medicinal Products for Human Use (CHMP). This new information replaces the information in last week's press release and includes the impending label changes for inclusion in the European prescribing information as follows: "Second Primary Malignancies... An increase of second primary malignancies (SPM) has been observed in clinical trials in previously treated myeloma patients receiving lenalidomide/dexamethasone (3.98 per 100 patient-years) compared to controls (1.38 per 100 patient-years). Non invasive SPM comprise basal cell or squamous cell skin cancers. Most of the invasive SPMs were solid tumour malignancies. In clinical trials of newly diagnosed multiple myeloma, a 4-fold increased incidence of second primary malignancies has been observed in patients receiving REVLIMID (7.0%) compared with controls (1.8%). Among invasive SPMs, cases of AML, MDS and solid tumours were observed in patients receiving REVLIMID in combination with melphalan or immediately following high dose melphalan and ASCT; cases of B-cell malignancies (including Hodgkin's lymphoma) were observed in the clinical trials where patients received REVLIMID in the post ASCT setting. The risk of occurrence of SPM must be taken into account before initiating treatment with REVLIMID. Physicians should carefully evaluate patients before and during treatment using standard cancer screening for occurrence of second primary malignancies and institute treatment as indicated."
8:04AM Hawaiian Holdings reports Sept traffic stats; says RPMs rose 19.4% YoY, ASMs gained 21.6% YoY, while passengers transported rose 5% YoY (HA) 4.05 :
8:04AM Equinix has entered into a new $150 mln unsecured revolving credit facility (EQIX) 91.48 :
8:02AM American Apparel reported its Q3 Sep comparable store sales increased 3% YoY (APP) 0.75 : Wholesale net sales increased 10% between the periods. Total net sales increased 5% to $141 mln in this year's third quarter as compared to net sales of $134 mln in the third quarter last year. The increase in total net sales was achieved despite a decline in the number of stores in operation between the quarterly periods. At September 30, 2011, the co operated 247 stores in 20 countries compared to 278 stores at the end of the third quarter last year.
7:53AM Fluor awarded a contract by North West Redwater Partnership to provide front-end engineering and design services for a new refinery project in Alberta, Canada; Fluor booked the undisclosed contract value in 3Q11 (FLR) 49.79 :
7:47AM Leg higher in dollar, following ECB decision to keep rates unchanged, pushed gold, silver and crude oil futures lower in electronic trade (COMDX) :
7:39AM On The Wires (WIRES) :
- WABCO Holdings (WBC) announced that it has entered into a long term agreement with IVECO to supply innovative anti-lock braking systems with WABCO's breakthrough ESCsmart technology that certifies electronic stability control for commercial vehicles.
- Wizzard Media (WZE) announced that the USDA has chosen LibsynPro to host and publish USDA Podcasts.
- ICF International (ICFI) has been awarded a re-compete contract by the U.S. Department of Health and Human Services, Administration for Children and Families, Children's Bureau to provide clearinghouse services for the Bureau. The contract has a value of $44.6 mln and a term of one base year and four option years. ICF has held this contract for 20 years.
- Kratos Defense & Security Solutions (KTOS) announced that it is on the winning team, led by ICI Services Corporation, that was recently awarded a contract award for supporting the Navy Underway Replenishment Program. The three-year single award contract has a total value over $9 mln.
- TASER International (TASR) announced that it received an order from the Lakeway Police Department in Texas for the new TASER X2 electronic control devices and for the revolutionary evidence capture and management system including Taser axon on-officer cameras.
- Ocean Rig UDW (ORIG) announced that its common shares are expected to commence "regular way" trading today on the Nasdaq Global Select Market under the ticker symbol "ORIG."
- Pier 1 Imports (PIR) announced that it has, through a subsidiary, signed a new, long-term private-label credit card agreement with Alliance Data (ADS).
- Intellicheck Mobilisa (IDN) announces that it closed the third quarter of 2011 with multiple signed contracts for its government identification systems, Fugitive Finder and Defense with $2 million in aggregate revenue this quarter.
7:33AM Helen of Troy misses by $0.12, misses on revs; reaffirms FY12 EPS guidance (HELE) 28.17 : Reports Q2 (Aug) earnings of $0.74 per share, $0.12 worse than the Capital IQ Consensus Estimate of $0.86; revenues rose 58.7% year/year to $277.4 mln vs the $289.3 mln consensus. Co reaffirms guidance for FY12, sees EPS of $3.40-3.50 vs. $3.45 Capital IQ Consensus Estimate. "Consolidated gross profit margin as a percentage of net sales for the fiscal quarter ended August 31, 2011 decreased 5.4 percentage points to 40.5 percent compared to 45.9 percent for the same period last year. As previously announced, the decline in gross profit percentage was anticipated, and is primarily due to the dilutive impact of the Healthcare/Home Environment segment, whose overall gross profit margins are below those of our other two segments. Also contributing to gross profit margin declines for the fiscal quarter ended August 31, 2011 were product cost increases and out of season promotional closeout activity in the Housewares segment, and greater usage of coupon programs in the Personal Care segment to promote retail sales and to provide a form of advertising in a difficult economic environment."
7:31AM Echo Therapeutics announced positive results from its clinical study of its Symphony tCGM System (ECTE) 2.74 : Co announced that data from the study confirm that Symphony successfully monitors patient glucose levels and continues to demonstrate improvements in clinical performance. Echo plans to conduct a study in patients with diabetes during the fourth quarter, followed by a study in critical care patients shortly thereafter.
7:30AM Celgene announced that results from a clinical study of ABRAXANE in combination with gemcitabine in 67 patients with previously untreated advanced pancreatic cancer were published in an online article by the Journal of Clinical Oncology ahead of print (CELG) 64.08 : Co announced that results from a clinical study of ABRAXANE in combination with gemcitabine in 67 patients with previously untreated advanced pancreatic cancer were published in an online article by the Journal of Clinical Oncology ahead of print. After the first phase of the study, the recommended Phase II dose was 125 mg/m2 of ABRAXANE followed by 1000 mg/m2 of gemcitabine on days 1, 8 and 15 of every 28-day cycle. In Phase II, almost half of the patients responded and two-thirds experienced disease control. The median progression-free survival was 7.9 months and the median overall survival was 12.2 months. The one-year survival rate for patients was 48%.
7:27AM Reversal in gold futures back toward highs (COMDX) :
7:21AM Gold futures drop ~6 points from near electronic highs; now up $7.90 to $1649.50 (COMDX) :
7:20AM WellPoint national government services subsidiary wins jurisdiction 6 medicare administrative contract at an estimated value of $273 mln (WLP) 63.94 : Co announced today that its subsidiary, National Government Services has been awarded the Jurisdiction 6 A/B Medicare Administrative Contract by the Centers for Medicare & Medicaid Services. The contract includes a base year and four one-year option periods. The total value of the contract, including all option periods, is estimated at $273 mln. If all options are exercised, CMS estimates that the J6 A/B MAC will process and pay more than 477 mln Medicare claims over the five-year period.
7:15AM Aceto announced that Salvatore Guccione has accepted the position of President and COO (ACET) 5.77 : Most recently Mr. Guccione has served as an Operating Partner at Arsenal Capital Partners, a private equity investment firm based in New York.
7:09AM Commodities seeing muted reaction to BoE announcement (COMDX) :
- Gold currently higher by $11.80 to $1653.40.
- Silver up $1.35 at $31.70.
- Crude oil sporting gains of $1.17 at $80.85.
7:04AM Express Scripts lowers FY11 to $2.95-3.05 from $3.15-3.25 vs $3.14 Capital IQ Consensus Estimate (ESRX) 35.94 : While changes in circumstances, such as significant improvement in the economy during the fourth quarter or other factors, could allow co to achieve results closer to its original guidance range, the co does not believe such results are likely at this time. Co originally estimated that adjusted EBITDA per claim for 2011 would be in the range of $3.70 to $3.90. However, the co now believes that adjusted EBITDA per claim will instead likely be between $3.55 and $3.70.
6:40AM GLG Life Tech: Ready to drink tea market has been slower than expected; OEM production issues to impact Q3 revs (GLGL) 3.46 : Overall the China beverage industry, most notably the Ready-To-Drink (RTD) tea market, this year has been materially weaker than originally expected by industry analysts. AN0C products have not been able to avoid being adversely affected by the other industry-wide factors such as reduced consumer demand in June through August driven by a cooler summer that have impacted the entire industry, most notably the largest players in the China beverage industry who represent over 70% of the product volume. As these KA channels have been slower to switch over to the new bottles, shipments of the new RTD teas in August have also been lower than expected... Through AN0C and its OEM Bottler's review in mid-September, it was determined that the potential batches comprised ~200,000 cases of RTD tea that had been shipped and represented the maximum size of the potential product issue. To date, ~2,000 cases have been actually found to be substandard. OEM production issues have also impacted a significant portion of vitamin enriched water production. GLG's existing distributors did not place any new substantial orders during the third quarter and as a result stevia revenues in the third quarter will be low compared to previous quarterly results in 2011
6:37AM On The Wires (WIRES) :
- Acacia Research (ACTG) announced that a subsidiary has acquired patent rights relating to computer-aided design technology.
- Mitcham Industries (MIND) announced that it has opened a new warehouse, logistics and repair facility in Budapest, Hungary.
- Alexza Pharmaceuticals (ALXA) and Grupo Ferrer International announced that they entered into a commercial partnership for Adasuve.
- TriQuint Semiconductor (TQNT) received the "Huawei Green Partner" award in recognition for its ability to provide an environmental management system that ensures product content and manufacturing processes meet or exceed Huawei's stringent green requirements.
6:31AM Openwave names Mike Mulica as CEO; Anne Brennan, who served as interim CEO, will continue in her role as CFO (OPWV) 1.60 : Prior to joining co, Mulica served as President and Head of Strategy and Corporate Development at Synchronoss (SNCR)
6:27AM Integrated Electrical announced the appointment of James Lindstrom as President and CEO (IESC) 2.03 : Mr. Lindstrom was elected Chairman of IES in February 2011 and has served as a director of the co since May 2010.
6:26AM Pfizer announced last night a licensing agreement With Puma Biotechnolog for the development and commercialization Of Neratinib, an investigational Pan-HER inhibitor (PFE) 17.98 +0.39 : Co announced last night an agreement with Puma Biotechnology for the development and commercialization of neratinib, an investigational oral, multi-targeted inhibitor being studied for the treatment of cancer. Under the terms of the agreement, Puma will assume sole responsibility for global development and commercialization of neratinib. Co will be entitled to receive payments upon Puma's achievement of certain development milestones for neratinib, as well as royalty payments for any sales of neratinib. Specific terms of the agreement were not disclosed.
6:03AM Provident Energy Trust announces 10-year storage agreement at Redwater, a 15% increase in 2011 adjusted EBITDA guidance and increased capital expenditure guidance (PVX) 8.12 : Co announced that it has entered into a long-term storage agreement at its Redwater Facility, increased its 2011 Adjusted EBITDA guidance and increased its capital expenditure guidance. Co is increasing its 2011 Adjusted EBITDA guidance range to $245 mln to $285 mln from the previous range of $210 mln to $250 mln, subject to market and operational assumptions including normal weather conditions. The revised range increases the midpoint of Provident's guidance from $230 mln to $265 mln. This guidance is based, in part, on average price assumptions for September through December 2011 of U.S. WTI crude of $85.00/bbl, AECO natural gas of $3.65/GJ, a Cdn/U.S. dollar exchange rate of $1.00 and a Mont Belvieu propane price at 74% of crude oil. This guidance also assumes that extraction premiums at Empress for 2011 will be near the high end of an updated range of between $5 and $8 per gigajoule. Over the next two years, Co plans to deploy ~ $280 mln in growth capital, $135 mln and $145 mln in 2012 and 2013, respectively. This represents a material increase over the $70 mln per year guidance previously provided.
5:44AM On The Wires (WIRES) :
- TowerJazz (TSEM) announced the availability of additional high speed SiGe, SOI and RF CMOS process design kits for its 0.18um process platform.
- GE (GE) announced a Low Carbon Network Fund project with Western Power Distribution. The research initiative is revealing how carbon-reducing technologies, like distributed solar panels, can impact the electricity network.
- CTC Media (CTCM) announced the launch of an interactive subscription service to CTC Media content on VimpelCom's (VIP) IPTV platform Beeline TV.
- ARM (ARMH) and UMC (UMC) announced a long-term agreement that provides UMC foundry customers with access to the latest advanced ARM Artisan Physical IP solutions validated on UMC's 28HPM process technology.
- The Ensign Group (ENSG) announced that it has acquired The Springs at Pacific Regent La Jolla, a 59-bed Medicare-only skilled nursing facility.
5:33AM Allegiant Travel reports Sep Traffic (ALGT) 47.58 : Co reports Scheduled Service RPMs declined 0.2%, ASMs increased 1%, and load factor declined 1.8 points. Addtionally, co issues Capacity guidance. Oct Scheduled Departures +4% ASMs +5%; 4th Quarter 2011 System Departures +5-9%, ASMs +6-10%; 1st Quarter 2012 System Departures +8-12% ASMs +13-17%.
1:22AM On The Wires (WIRES) :
- California American Water, a wholly owned subsidiary of American Water (AWK), issued a technical memorandum concerning water supply alternatives designed to meet the Monterey Peninsula's water shortage. The memo examines eleven water projects capable of meeting the area's water supply deficit, including the Marina desalination plant, pipeline, and Aquifer, Storage and Recovery project approved by the California Public Utilities Commission.
- Rock-Tenn (RKT) announced that it has reached an agreement to settle the pending Smurfit-Stone shareholder class action lawsuit.
- Sonoco-Alcore, a wholly owned subsidiary of Sonoco (SON), announced the opening of its new paper tube and core manufacturing facility in Grunsfeld, Germany.
- Oracle (ORCL) unveiled a series of new products including Oracle Fusion CRM in the Cloud, Oracle Social Network, and Oracle Public Cloud
1:09AM Akorn enters into an agreement to acquire certain assets of Kilitch Drugs in India; expected to be accretive to 2012 EPS before the impact of transaction-related expenses (AKRX) 7.58 : Co announces it has entered into an agreement to acquire certain assets of Kilitch Drugs for ~$52 mln in cash and future contingent payments totaling up to ~$6 mln based on the achievement of certain milestones and financial targets. The target assets consist of KDIL's plant in Paonta Sahib in Himachal Pradesh, India, along with the associated contract manufacturing and international business, and certain product transfers from KDIL's Navi Mumbai plant and NBZ Pharma. The transaction is expected to be accretive to 2012 EPS before the impact of transaction-related expenses such as purchase accounting charges, integration costs, and the amortization of intangible assets.
1:04AM Cameco signs MOU to improve Cigar Lake Project economics (CCJ) 19.07 : Co announces it has signed a non-binding memorandum of understanding with its joint venture partners to mill all Cigar Lake ore at the McClean Lake mill. The new milling arrangement is expected to result in a significant reduction in the operating cost of the Cigar Lake project, which is 50% owned and operated by Cameco. The other Cigar Lake joint venture partners are AREVA Resources Canada Inc. (37%), Idemitsu Resources Canada Inc. (8%) and Tepco Resources Inc (5%).
