11:56 am S&P -1.7 and Dow -6.2 extend to new intraday rebound highs -- Nasdaq Comp -1 is nearing a similar level (:TECHX) :
11:52 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:
- UK's FTSE:-0.1%
- Germany's DAX:+0.0%
- France's CAC:-0.2%
- Spain's IBEX:+0.6%
- Portugal's PSI:0.0%
- Italy's MIB Index:-0.2%
- Irish Ovrl Index:-0.2%
- Greece ASE General Index: -0.9%
Euronav NV announces the formation of a commercial joint venture with Diamond S Management LLC and Frontline Ltd.
- The aim of the joint venture is to create a single point of contact for cargo owners to access a large fleet of 43 modern Suezmax vessels, including newbuildings, operated on the spot market. The joint venture will be named Suezmax Chartering.
- A larger fleet will provide more flexibility and more options for cargo owners, reduce voyage related expenses through optimisation of voyages and thereby reduce greenhouse gas emissions as a direct consequence of using less fuel for cargo movements.
- The joint venture will commence operation today from the existing offices of Euronav, Diamond S and Frontline Management AS.
11:24 am Oracle issues official statement in response to lawsuit brought by former employee (
11:09 am Currency Commentary: DXY Remains Rangebound (:SUMRX) :
- The Dollar Index has spent the majority of the session trading in the lower band of the 95 range. The DXY has been trading in the 95-96 area since May 19 as it consolidates ahead of key economic events including 1) Tomorrow's jobs number; 2) Fed Chair Yellen's June 6 speech; 3) the June 15 FOMC meeting; 4) Bank of Japan meeting; 5) Fed Chair Yellen's Humphrey Hawkins on June 21-22; and 6) the U.K. referendum on June 23. Expectations for tomorrow's jobs number is low so that should put some pressure on the lower band of the current trading range. If we break it, then the 50-sma (94.63) would move into play.
- As widely expected the ECB meeting was a non-event. The central bank did introduce two important dates to the markets as June 8 will mark the start of its corporate bond purchase program and June 22 will be the next TLTRO. But it left its rates unchanged and only made slight adjustments to its forecasts. Commentary of a week Q2 and that the program had yet to have any major impact on the economy will be cause for concern but the markets are still waiting to see what the full impact from the plan will be.
- The pound is seeing a small bid today as it bounces off the 50-sma (1.4407). Construction PMI came in below expectations offsetting some of the Manufacturing PMI beat from yesterday. But the Brexit vote remains front and center as we are now three weeks away. Polls promise to sway cable moving forward.
- The yen has seen a steady bid this week as we approach the Bank of Japan meeting. The move suggestions a risk off trade ahead of some of the uncertainty facing markets in the month of June. Yen hit 108.60 this morning, its lowest level since May 16. If it continues to see buying then the 18-month high of 105.54 set on May 3 will come into focus (BONDX, FOREX).
11:03 am Air Products signs license agreement with Air Liquide (
10:55 am Oracle set a new session low of 38.07, tests its 200 day sma (
10:22 am Covisint: Dialectic Capital Management delivers letter to Board expressing 'serious concerns' with performance, nominates 5 candidates for election to the Board at the annual meeting of shareholders (
- Expresses serious concerns with performance shortcomings and lack of clear strategy under the direction of the current management team and Board
- Believes a reconstituted board is required to improve accountability and determine the best path forward to maximize value for all covisint shareholders
- Has nominated a slate of five highly qualified candidates for election at covisint's 2016 annual meeting
- Remains open to continuing constructive dialogue with the company to reach a mutually agreeable resolution to reconstitute the board in a manner that is in the best interests of all shareholders
10:21 am Biotech (XBI +1.2%, IBB +0.8%) extends break out to five month high (
10:16 am Ocean Power Tech prices registered direct offering of common stock and warrants (
Co announced the pricing of a registered direct offering of 417,000 shares of common stock and warrants to purchase an aggregate of 145,950 shares of its common stock.
- Each share of common stock is being sold together with a warrant to purchase 0.35 shares of common stock of the Company at a combined purchase price of $4.60 per share. The warrants will be exercisable beginning six months and one day after the date of issuance at a price of $6.04 per full share of common stock and will be exercisable for a period of five years from closing, which is expected to occur on June 7, 2016.
- The Company expects to receive net proceeds of approximately $1.6 million from the offering, after deducting placement agent fees and estimated offering expenses payable by the Company. The Company intends to use the net proceeds from the sale of securities for general corporate purposes.
10:16 am S&P -7 and Nasdaq Comp -12 hold at first level supports (:TECHX) : A weaker tone off the open extended to first level supports from The Technical Take at 2090/2088 S&P (session low 2088) and 4932/4923 Nasdaq Comp (session low 4924). We have seen some upticks develop off the lows/supports but the S&P needs to initially sustain a push through intraday resistance at 2095/2096 to improve the early price pattern.
10:00 am Market averages slide to new session lows but are still above yesterday's troughs -- Dow -76, S&P -9, Nasdaq Comp -20 (:TECHX) :
10:00 am FBR & Co: Voce Capital Management announces that ISS recommends shareholders vote for all of Voce's Director nominees (
9:53 am Marina Biotech Chairman, President and CEO J. Michael French to resign effective June 10 to pursue other opportunities (
9:52 am FBR & Co issues statement in response to report by Institutional Shareholder Services relating to the election of its Board, 'strongly believes ISS reached the wrong conclusion' (
9:44 am Opening Market Summary: Oil Leads Averages Lower at Open (:WRAPX) :
As expected, the stock market opened on a lower note as the Dow Jones Industrial Average (-0.3%) and the S&P 500 (-0.3%) trail the Nasdaq Composite (-0.2%).
Nine sectors trade in the red with energy (-1%), technology, (-0.6%), and materials (-0.5%) leading the downside. The remaining decliners sport losses between 0.1% (consumer discretionary) and 0.3% (financials). Conversely, countercyclical health care (+0.4%) sports the only gain.
In the energy space (-1.0%), independent oil and gas names lead the losses with Anadarko Petroleum (APC 51.66, -0.74) declining by 1.5%. Separately, Dow component Exxon Mobil (XOM 87.88, -1.36) is the worst performer in the price-weighted index.
On the flipside, biotechnology outperforms in the health care space (+0.4%), evidenced by the 0.8% gain in the iShares Nasdaq Biotechnology ETF (IBB 283.27, +2.09).
On the commodities front, WTI crude has fallen 1.4% to $48.33/bbl while gold has ticked down 0.1% ($1,213.70/ozt).
9:42 am UnitedHealth pushes above its April high (
9:35 am Weaker start for market averages -- Dow -61, S&P -6, Nasdaq Comp -12 (:TECHX) : Early sector laggards include: Crude Oil USO, Mining XME, Oil Service OIH, Energy XLE, Solar TAN, Gold Miners GDX, Software IGV, Airline JETS, Steel SLX, Technology XLK.
9:29 am Prudential commences cash tender offer for up to $500 mln of its medium-term notes (
9:26 am Aratana Therapeutics receives a technical section complete letter for chemistry, manufacturing and controls for NOCITA from the FDA; plans to submit the administrative NADA in the coming weeks (
- The technical section complete letter for CMC is the last of three major technical section complete letters required to file an administrative NADA for approval with the CVM.
- Co plans to finalize the product label, complete the other minor sections and submit the administrative NADA in the coming weeks.
- If Nocita receives FDA approval, co expects to commence commercialization in late-2016.
9:24 am Kinder Morgan subs receive authorization from the FERC for the Elba Liquefaction Project (
- Co announced that subsidiaries Elba Liquefaction Company and Southern LNG Company have received authorization from the Federal Energy Regulatory Commission for the Elba Liquefaction Project. The approximate $2 billion project will be constructed and operated at the existing Elba Island LNG Terminal near Savannah, Georgia. As previously announced, the first of 10 liquefaction units is expected to be placed in service in the second quarter of 2018, with the remaining nine units coming online before the end of 2018. This project is supported by a 20-year contract with Shell.
- KMI also announced today that Elba Express Company and Southern Natural Gas Company have received from FERC Certificates of Public Convenience and Necessity for the EEC Modification Project and SNG Zone 3 Expansion Project, respectively. Together these projects total $306 million and include additional compression and related work for north-to-south capacity expansions on Elba Express Pipeline that will supply additional gas to industrials and utilities in Georgia and Florida and to Elba Island for liquefaction. Facilities for these pipeline projects are expected to be placed in service late in the fourth quarter of 2016.
9:23 am On The Wires (:WIRES) :
- Genisphere, a provider of the 3DNA drug delivery platform, announces it has executed a collaborative research and option to license agreement with MedImmune, the biologics R & D arm of AstraZeneca (AZN). Under the agreement, MedImmune and Genisphere will develop nanoparticles utilizing its 3DNA dendrimer scaffold with up to six MedImmune oncology molecules, as the nanoparticle configuration may help to improve targeting of the drug, according to the co.
- Zayo Group Holdings (ZAYO) has been selected by Link11, a German infrastructure provider and CDN specializing in DDoS protection and server hosting, to provide an Ethernet 'solution'. The network for Link11 will span London, Frankfurt, Miami, New York, and Los Angeles; financial terms undisclosed.
- Gen9 and Amyris (AMRS) announce an agreement for the supply of multiple megabases of synthetic DNA content; terms undisclosed.
- Energy Focus (EFOI) announces that it has been selected by St. John's University to retrofit its main Queens, NY Campus with tubular LED technology, Intellitube; terms undisclosed.
- MSA Safety (MSA) announces it has been awarded a multi-year contract to supply, service, and maintain 3,600 AirGo eXXtreme self-contained breathing apparatus for Fire and Rescue New South Wales in Australia. The contract is valued at ~$4 mln.
9:23 am Hovnanian reports Q2 (Apr) results, beats on revs; lowers FY16 guidance (
- Reports Q2 (Apr) GAAP loss of $0.06 per share, including land charges, may not be comparable to the Capital IQ Consensus of $0.03; revenues rose 39.6% year/year to $654.7 mln vs the $643.05 mln two analyst estimate.
- The dollar value of consolidated net contracts increased 9.6% to $768.1 million for the three months ended April 30, 2016 compared with $700.7 million during the same quarter a year ago. The dollar value of net contracts, including unconsolidated joint ventures, during the second quarter of fiscal 2016 increased 5.1% to $789.3 million compared with $750.9 million in last year's second quarter.
- Consolidated deliveries were 1,598 homes in the second quarter of fiscal 2016, a 30.7% increase compared with 1,223 homes in the second quarter of fiscal 2015. For the three months ended April 30, 2016, deliveries, including unconsolidated joint ventures, increased 27.8% to 1,647 homes compared with 1,289 homes in the second quarter of the prior year.
- Homebuilding gross margin percentage, before interest expense and land charges included in cost of sales, was 16.1% for both the second quarter ended April 30, 2016 and 2015.
- Co issues in-line guidance for FY16, lowers FY16 revs to $2.7-2.9 bln from $2.7-3.1 bln vs. $2.78 bln Capital IQ Consensus Estimate. Adjusted EBITDA is expected to be between $200 million and $225 million and income before income taxes, excluding land related charges, gains or losses on extinguishment of debt and other non-recurring items such as legal settlements, is expected to be between $25 million and $50 million for all of fiscal 2016, down from $40-100 mln.
- "we continue to believe that we will have the liquidity to pay off the remaining debt maturities through the end of 2017. We are certain that we are taking the correct steps that will best position our company for future success. While it is discouraging to report a loss for the first half of fiscal 2016, it is nevertheless a significantly reduced loss, and we anticipate our profitability in the second half of the year will more than offset this loss."
9:19 am S&P futures vs fair value: -6.20. Nasdaq futures vs fair value: -7.60. (:WRAPX) :
The stock market is on track for a lower open as the S&P 500 futures trade six points below fair value.
Equity futures have been under pressure in recent action as investors look to potential development from OPEC's biannual meeting. The energy component slipped from the $48.95/bbl price level amid reports alleging that the group has been unable to agree on an output target. Currently, WTI crude trades lower by 1.8% ($48.14/bbl).
On the central bank front, the European Central Bank recently left its interest rate corridor unchanged, as expected. ECB President Draghi is currently taking part in a press conference where he stated that he expects interest rates to remain at their present level, or lower, for an extended period of time. Furthermore, he stated that low interest rates may persist past the horizon for the asset purchase program. The program is expected to be carried out until March 2017.
In company specific news, Qlik Tech (QLIK 30.05, +1.08) has gained 3.7% after agreeing to be acquired by Thoma Bravo for $30.50 per share in cash. The deal is valued at approximately $3 billion and is expected to close in the third quarter of 2016. Oracle (ORCL 39.00, -1.26) has fallen 3.1% as investors continue to respond to allegations that a former accountant at the company was told to change sales figures.
The U.S. Dollar Index (95.43, -0.03) has climbed in recent action as the greenback gains against commodity currencies and slides against the safe haven yen. The dollar/Canadian dollar pair trades higher by 0.5% (1.3136) while the dollar has lost 0.7% against the yen (108.80).
9:16 am Mattersight announces issuance of patent that further refines its pairing process (
9:12 am GoPro announced an exclusive partnership with Reliance Digital, India's largest Consumer Electronics retailer; GoPro's cameras, mounts and accessories will be available at 1800 Reliance Digital spread across 500 cities (
9:09 am Nelnet subsidiary FACTS acquires the business of Private School Aid Service; terms not disclosed (
9:08 am NASDAQ to commence a public offering of U.S. dollar-denominated senior notes pursuant to an effective shelf registration (
9:06 am Elephant Talk receives a non-compliance notice from the NYSE; expects to take the necessary steps to regain compliance (
Notice b/c co has fallen below the stockholders' equity standards of Section 1003(a)(iii) of the NYSE MKT Company Guide and may no longer be in compliance with the financial impairment standards of Section 1003(a)(iv) of the NYSE MKT Company Guide and the stock price standards of Section 1003(f)(v) of the Guide.
- In order to maintain its listing, co is required to submit a specific plan of compliance by June 27, 2016 addressing how it intends to regain compliance with the continued listing standards of NYSE by November 27, 2017.
- Co states, "This notification was not unexpected given the impact of the restructuring and we expect to take the necessary steps to regain compliance."
9:01 am S&P Global acquires RigData; terms not disclosed (
9:01 am Open Text to acquire privately-held Recommind - provider of eDiscovery and information analytics; transaction purchase price is ~$163 mln (
9:01 am Delta Air Lines May PRASM -5% vs. -4% in April (
Consolidated passenger unit revenue (:PRASM) for the month of May declined 5.0% year over year due to persistent close-in domestic yield weakness and continued pressures from foreign exchange. April PRASM fell 4%. RPM +3.3% +5.3% domestic and +0.2% Intl.
- DAL recently cut capacity for Q4 as it aims to be first airline to return to positive PRASM.
8:59 am On The Wires (:WIRES) :
- GOL Linhas Areas Inteligentes (GOL) announces that it is extending the Expiration Time for its previously announced private Exchange Offers until 11:59 p.m., New York City time, on June 8, 2016.
- RELM Wireless (RWC) announces that the Transportation Security Administration of the U.S. Department of Homeland Security has exercised a portion of the first option year for its contract with RELM, and placed an order for additional equipment and services totaling ~$1.9 mln. Also, the contract term has been extended for one additional year to Sept 27, 2017.
- Noble Energy (NBL) announces that it has received approval from the Petroleum Commissioner in the Ministry of National Infrastructure, Energy, and Water Resources for the development of the Leviathan project offshore Israel. The fixed platform's initial capacity is anticipated to start at 1.2 billion cubic feet of natural gas per day (Bcf/d) and is expandable to 2.1 Bcf/d. Leviathan is expected to provide a second source of supply and entry point into Israel's domestic natural gas transport system, while also delivering exports to regional countries.
- Marrone Bio Innovations (MBII) announces that it has obtained a waiver from the lenders of its $40 mln senior secured promissory notes, dated Aug 20, 2015, terminating the requirement that the co maintain a $15 mln min cash balance.
8:58 am S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -5.50. (:WRAPX) :
The S&P 500 futures trade five points below fair value as crude oil extends its loss.
Equity indices in the Asia-Pacific region ended Wednesday on a mostly higher note while Japan's Nikkei (-2.3%) lagged. The index was pressured by continued yen strength, which resulted in weakness for exporters. Recent concerns about the Japanese economy have not stopped Standard & Poor's from raising its forecast for 2017 Japanese GDP to 1.0% from 0.4%.
- In economic data:
- Japan's May Household Confidence 40.9 (expected 40.4; last 40.8) and Monetary Base +25.5% year-over-year (consensus 27.2%; last 26.8%)
- Australia's May AIG Manufacturing Index 51.0 (previous 53.4) and April Retail Sales +0.2% month-over-month (expected 0.3%; last 0.4%). April trade deficit narrowed to AUD1.58 billion from AUD1.97 billion (expected deficit of AUD2.00 billion)
- South Korea's Q1 GDP +0.5% quarter-over-quarter (expected 0.4%; last 0.4%); +2.8% year-over-year (consensus 2.7%; last 2.7%)
- Japan's Nikkei lost 2.3% with all ten sectors ending in the red. Financials (-3.3%), industrials (-2.9%), and technology (-2.7%) paced the slide while consumer staples (-0.8%) outperformed. Mitsui Engineering & Shipbuilding, TDK, Honda Motor, Denso, Konica Minolta, and Mazda Motor fell between 3.2% and 5.7%.
- Hong Kong's Hang Seng added 0.5%. Consumer and gaming names contributed to the advance with China Mengniu Dairy, Tingyi, Galaxy Entertainment, and Belle International rising between 1.3% and 6.3%. Lenovo fell 4.0% after Alphabet said it plans to sell more than $200 million in Lenovo shares.
- China's Shanghai Composite ticked up 0.4%. Deluxe Family, Wuxi Taiji Industry, and IRICO Display added between 1.1% and 5.9%.
Major European indices trade flat, but have ticked lower following remarks from European Central Bank President Mario Draghi and developments at the biannual OPEC meeting. The central bank head recently stated that the ECB has raised its 2016 GDP estimate to 1.6% (from 1.4%). Meanwhile, crude oil extended its loss when reports suggested that OPEC did not reach a new supply agreement. Official results from the meeting will be released later in the day. The euro (1.1205) and the pound (1.4458) have gained a respective 0.1% and 0.3% against the dollar.
- In economic data:
- Eurozone April PPI -0.3% month-over-month (expected 0.1%; last 0.3%); -4.4% year-over-year (consensus -4.1%; last -4.1%)
- UK's May Construction PMI 51.2 (consensus 52.0; last 52.0)
- Spain's Unemployment Change -119,800 (expected -110,000; prior -83,600)
- France's CAC has lost 0.5%. Financials are mixed with Credit Agricole and Societe Generale up 2.2% and 1.3%, respectively, while BNP Paribas has given up 2.7%. Exporters are among the leaders with Peugeot, Renault, and Michelin up between 0.9% and 1.8%.
- Germany's DAX has ticked down 0.2% with heavyweights Deutsche Bank, Volkswagen, BMW, and Daimler up between 0.3% and 1.8%. On the downside, Munich Re and Vonovia hold respective losses of 2.6% and 1.2%.
- UK's FTSE has inched lower by 0.1%. Barclays, Standard Chartered, RBS, HSBC, and Prudential have added between 1.6% and 1.9%. Select consumer names appear among the laggards with Marks & Spencer, Associated British Foods, and Dixons Carphone up between 0.3% and 0.5%.
8:47 am Gapping down (
In reaction to disappointing earnings/guidance: CONN -16.3%, (also appoints Lee Wright as CFO; will succeed Tom Moran) BOX -8.2%, CCCL -5.4%, COST -1.8%, (reported flat comps for May (vs +0.9%e) WUBA -1.2%, AMWD -0.5%
Other news: DEA -4.1% (announces 6.13 mln share offering), CPST -3.2% (modestly pulling back following recent strength), ORCL -2.5% (reports that former accountant has filed lawsuit - allegedly was told to change sales figures), OPTT -2.3% (modestly pulling back following recent strength), TEGP -1% ( files for ~109.5 mln class A share shelf offering by selling shareholders; proposed max offering price of $23.94/share ), BUD -1% (reports results of consent solicitation), WFT -0.7% (upsizes and prices offering of $1.1 bln of Exchangeable Senior Notes), BABA -0.5% (agrees to purchase 27,027,027 ordinary shares from SoftBank (
Analyst comments: CMC -2% (downgraded to Underperform from Neutral at BofA/Merrill), XLNX -1% (downgraded to Neutral from Buy at Goldman), XOM -0.8% (downgraded to Neutral from Buy at BofA/Merrill), WSM -0.8% (initiated with a Sell at BTIG Research)
8:46 am Easterly Government Properties prices ~6.126 mln share public offering of common stock by the co & selling shareholders at $18.00/share (
- The pricing of a public offering of an aggregate of 6,126,967 shares of its common stock, consists of 3,800,000 shares offered directly by the co, 1,500,000 shares offered on a forward basis in connection with forward sales agreements, and 826,967 shares offered by certain selling stockholders.
- The co intends to contribute the net proceeds from this offering to its operating partnership, which intends to use a portion of the net proceeds to fund the previously announced pending acquisition of a four-property portfolio.
- The balance of the net proceeds, if any, may be used to repay borrowings outstanding under the co's senior unsecured revolving credit facility, to fund other potential acquisition opportunities, for general corporate purposes, or a combination of the foregoing.
- The co will not receive any proceeds from the sale of the shares of its common stock by the selling stockholders in this offering.
8:46 am Ampliphi Biosciences announces that the European Patent Office has issued a decision to grant its patent titled 'Beneficial effects of bacteriophage treatments' (
- A corresponding patent has been granted in Australia and a species-specific patent for Pseudomonas aeruginosa has been granted in the United States.
- Additional patents are pending in Canada, Japan and the United States.
- The claims of the patent cover the treatment of antibiotic-resistant infections through the staged use of bacteriophage preparations followed by the antibiotic to which the bacteria were initially resistant.
8:43 am Crude oil futures tick to lows; headlines circulating suggesting OPEC has not reached a new supply agreement (
8:43 am Gapping up (
In reaction to strong earnings/guidance: CIEN +9.5%, JOY +8.9%, MGCD +8.8%, DCI +6.7%, GWRE +3.5%, LB +2%, (May same store sales were flat vs -3.5%e) OLLI +1.1%, SMTC +0.8%
Select financial related names showing strength: BCS +2.2%, ING +2.2%, DB +1.9%, HSBC +1.5%, PUK +0.9%, .
Other news: RPRX +20.1% (remains on track for MAA submission for enclomiphene for the treatment of secondary hypogonadism with anticipated registration decision expected fall 2017),PPHM +17.5% (highlights latest developments for contract manufacturing and drug development),XGTI +10.4% (continued volatility in pre-mkt trade),AKAO +9.5% (receives $20 mln for an additional option on its existing contract with the Barda to 'support' the development of plazomicin & announces $25 mln private placement to new investors),KERX +5.9% (Baupost Group shows 42.53% active stake following conversion of $125 mln aggregate principal amount of notes),DERM +4.7%...