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4:17 pm TerraForm Global subsidiary TerraForm Global Operating successfully completed the solicitation of consents from holders of its 9.75% Senior Notes due 2022 to obtain waivers relating to certain reporting covenants (GLBL) :

  • Cowen notes Delta (DAL +0.7%) reports August traffic. PRASM declined by 9.5% y/y. Firm expects management to update operating margin guidance at their conference Wednesday.

12:11 pm YY displays relative strength as it breaks out for a +8% gain above its 200-day sma/August highs along the $53 area today. (YY) : Next area of interest lies above near the early May bearish gap zone between 58.46/59.52.

12:01 pm Dr. Reddy's launches Bupropion HCl extended-release tablets in the United States (RDY) :

11:56 am Currency Commentary: DXY Shakes of Disappointing Jobs Number (:SUMRX) :

  • The Dollar Index fell to 95.18 in reaction to the disappointing jobs report. The DXY would hit its 100-sma before seeing a bounce back up toward the high end of the 95 level. September rate hike expectations in the Fed Funds Futures fell from 27% to 18%. But wee are seeing calls from Goldman Sachs and Bill Gross that the report was strong enough to get the Fed moving. Next week the economic calendar cools off but there are some notables including the latest Fed Beige Book (Wed) which will help set the stage for the September 21 FOMC decision.
  • The euro rallied to 1.1252 but has reversed course and is trading near session lows at 1.1158. Market focus will turn from the jobs number to the Thursday ECB decision. Given the recent low inflation numbers and dip in confidence there is a growing expectation that the central bank may look to increase its QE program.
  • The pound continues to regain some of its Post-Brexit losses. Sterling rallied to 1.3350 following the jobs report, its best level since the Bank of England announcement on August 4. Sentiment data from the region continues to show Brexit fears are overblown as the Construction PMI survey handily beat expectations. Of course the country has yet to invoke Article 50. But the 1.3350 area marks a key resistance level that will have markets watching closely.
  • The yen saw a brief spike to the 102.80 level, just shy of its 50-sma (102.68). It has since reversed course and fallen back to the 104 level. This marks a 5-week low for yen as it trends back toward the key 105 support area (BONDX, FOREX).

11:53 am TICC Capital announces prelim results from Annual Meeting show that stockholders have rejected TSLX's proposal to terminate its investment advisory contract, and supported TICC's board recommendations (TICC) : Final Results will be released after tabulation and certification in the next few business days

10:49 am Notable movers of interest: LULU -9% following a slight miss on Q2 comps (SCANX) :

The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

  • PBR (9.58 +3.9%): Announces non-approval of the leniency agreement signed between Petrobras, SBM Offshore (SBFFF), and Brazilian authorities.
  • BIIB (316.02 +3.26%): Aducanumab was granted Fast Track designation by the FDA.

Large Cap Losers

  • LULU (69.59 -9.22%): Shares fall after issuing a slight miss on comps, Morgan Stanley downgrade; the stock's current P/E is ~37.
  • CCL (46.44 -4.65%): Downgraded to Underweight from Equal-Weight at Morgan Stanley.

Mid Cap Gainers

  • VRSN (81.25 +8.61%): Positive note from Cowen Research.
  • MELI (184.62 +6.3%): Upgraded to Overweight from Neutral at JP Morgan.

Mid Cap Losers

  • PAY (16.26 -19.09%): Reports Q3 revenue miss, guides Q4 EPS and revenues below estimates, guides FY16 EPS below consensus.
  • ENDP (19.88 -1.73%): Biotech names fall in early trade following Hillary Clinton's new drug price plan (MNK, JUNO, ACAD...).

10:40 am Catalyst Pharma confirms that the FDA has granted the company orphan drug designation for Firdapse (CPRX) :

9:58 am Sector Summary: Technology (XLK +0.7%) trading higher today, ahead of the broader market (:SUMRX) :

The tech sector -- XLK -- is outpacing the broader market. Semiconductors, meanwhile, display relative weakness as the SOX index trades lower by 0.1%. Within the SOX index, AMD (+1.7%) outperforms, while AVGO(-3.2%) lags. Among other major indices, the SPY is trading 0.6% higher, while the QQQ +0.6% and the NASDAQ +0.6% trade near the benchmark index. Among tech bellwethers, AAPL (+0.8%) is showing relative strength while QCOM (-0.4%) lags.

Notable gainers following earnings:

Notable laggards following earnings:

  • AMBA (-5.6%) despite beating estimates and guiding in-line
  • AVGO (-3.2%) despite topping earnings and revenue expectations
  • PAY (-18.1%) after cautious guidance overshadowed slim earnings beat

Gainers on news:

  • AAPL (+0.8%) amid headlines reminding that the Irish govenrment plans to appeal EU tax ruling
  • TMUS (+1.5%) suspended sales of Samsung Galaxy Note 7 due to a battery cell issue
  • CY (+0.4%) subsidiary received additional investment of $51.50 million from a leading electronics company

Laggards on news:

  • HPE (-0.1%) after completing the sale of its equity stake in Mphasis Limited to funds managed by Blackstone.

Among notable analyst upgrades:

Among notable analyst downgrades:

  • CIEN (-2.6%) downgraded to Hold at Drexel Hamilton and downgraded to Equal-Weight at Morgan Stanley
  • STM (-3.3%) downgraded to Underperform at BofA/Merrill
  • PAY (-18.1%) downgraded to Neutral at Piper Jaffray

Scheduled to report earnings ahead of Tuesday's open:

9:48 am Opening Market Summary: Averages Extend Weekly Gain (:WRAPX) :

The stock market began the day on a higher note as the Dow Jones Industrial Average (+0.5%) and the S&P 500 (+0.5%) trade slightly ahead of the Nasdaq Composite (+0.4%).

Nine sectors trade in the green with energy (+1.0%) and utilities (+1.2%) leading to the upside. The remaining gainers show upticks between 0.3% (financials) and 0.9% (telecom services). Conversely, heavily-weighted health care (-0.1%) floats narrowly beneath its flat line.

The Dow Jones Transportation Average (+0.8%) demonstrates relative strength as shipping companies outperform. Kirby (KEX 53.08, +1.18) and Matson (MATX 42.62, +1.44) have gained 2.3% and 3.5%, respectively. The broader Transposition Index has climbed 2.0% this week, which compares to an uptick of 0.6% in the benchmark index.

In the consumer discretionary space (+0.4%), retail names underperform, evidenced by the 0.1% gain in the SPDR S&P Retail ETF (XRT 44.25, +0.04). In the group, lululemon athletica (LULU 69.02, -7.64) weighs after reporting in-line earnings and issuing guidance on the low end of expectations.

On the commodities front, WTI crude trades higher by 2.9% ($44.39/bbl; +$1.23) while gold trades higher by 0.8% ($1,327.70/ozt, +$10.60).

9:39 am VeriSign a huge gainer off the opening as price rockets +7% from its late August consolidation, currently eyeing the 50-day sma/June low near $80.50 vicinity. (VRSN) :

9:15 am S&P futures vs fair value: +5.00. Nasdaq futures vs fair value: +16.90. (:WRAPX) :

The stock market is on track for a higher open with S&P 500 futures trading five points above fair value.

Index futures erased modest losses as investors assessed a weaker-than-expected reading of the Employment Situation Report for August. The report showed that 151,000 nonfarm payrolls ( consensus 180k) were added while July's reading was revised higher to 275,000 (from 255,000). The August report also featured a cooler-than-expected average hourly earnings component, which indicated an increase of just 0.1% ( consensus +0.2%).

Participants have dialed back rate hike expectations for the coming months while the U.S. Dollar Index (95.57, -0.08, -0.09%) carved out a new session low. The Treasury complex currently trades on a mixed note with the long end of the curve demonstrating relative weakness. The yield on the 10-yr note has risen one basis points to 1.58% while the yield on the 2-yr note has slipped to 0.78% (-1 bps).

The fed funds futures market currently reflects the odds of a rate hike at the September meeting at 18.0%, slipping from yesterday's estimate of 24.0%. The odds of a rate hike at the December meeting remain close to a coin toss, showing an implied probability of 54.5%. This compares to yesterday's reading of 53.6%. On a side note, Richmond Fed President, and non-FOMC voter, Jeffrey Lacker will be the first member of the Federal Open Market Committee to speak following the employment reading. Mr. Lacker will offer remarks at 13:00 ET.

Today's data will be capped off with July Factory Orders ( consensus +2.0%), which will be released at 10:00 ET.

9:13 am Valmont promotes Steve Kaniewski to the position of COO effective October 1, 2016 (VMI) : Kaniewski has been Group President of Valmont's Utility Support Structures Segment since August, 2015, where under his leadership the utility team successfully transformed its operating model. Prior to that, he was the Utility group's Senior Vice President and Managing Director.

9:08 am British Sky Broadcasting has invested 4 million in Molotov, an over-the-top video platform in France that distributes free and pay TV channels and content to consumers via a freemium model (SKYAY) : This investment is part of a larger Molotov financing round and is the latest in a series of Sky investments in innovative start-up companies.

9:05 am Embraer SA signs an agreement for up to five E190s with Colorful Guizhou Airlines; contract has an estimated value of $249 mln, if all purchase rights are exercised (ERJ) :

Agreement includes two firm orders and three purchase rights.

  • The firm order will be included in its 3Q16 backlog.
  • The contract is worth ~$249 mln at the current list price, if all purchase rights are exercised.
  • The two aircraft will be delivered in 2017.

9:05 am CEL-SCI Corp reports monthly patient enrollment in August for its Phase 3 head and neck cancer trial - enrolled 28 patients (CVM) : Total patient enrollment for the trial is now 905 as of August 31, 2016.

9:04 am Apple Hospitality REIT announces implementation of 10b5-1 share repurchase plan that was established as part of previously announced $475 mln share repurchase program (APLE) : The Plan is intended to comply with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, which will allow the Company, through a designated broker, to repurchase shares at times, beginning on September 2, 2016, when it might otherwise be prevented from doing so by securities laws or because of self-imposed trading blackout periods. Because repurchases under a 10b5-1 plan are subject to certain pricing, market and volume parameters, there is no guarantee as to the exact number of shares, if any, that will be repurchased under the Plan. In addition, the timing of share repurchases under the Plan and overall repurchase program will depend upon prevailing market conditions, regulatory requirements and other factors and may be suspended by the Company at any time.

9:02 am Siebert Financial Corp. announces that Kennedy Cabot Acquisition will acquire approximately 90% of its outstanding common stock from the Estate of Muriel F. Siebert (shares halted) (SIEB) :

  • The Siebert Estate, which currently owns beneficially and of record approximately 87.4% of Siebert Financial's outstanding common stock, will sell all such common stock to Kennedy Cabot Acquisition for an aggregate purchase price of $12,650,000, or approximately $0.66 per share;
  • Kennedy Cabot Acquisition will make a tender offer for all of Siebert Financial's outstanding common stock not owned by the Siebert Estate at an offer price per share of $1.20

Prior to closing, Siebert Financial anticipates paying a dividend to all Siebert Financial shareholders in the amount of approximately $0.20 per share.

9:02 am Masimo announces an amendment to the existing Nelcor royalty agreement initially reachedin January 2006; Medtronic (MDT) will stop paying royalties on October 7 (MASI) : Under the terms of the amendment, Medtronic will continue to pay Masimo a royalty of 7.75% for its current pulse oximetry products sold in the United States through October 6, 2018, after which no further royalties will be due under the agreement.

9:01 am On The Wires (:WIRES) :

  • T-Mobile (TMUS) confirms it has suspended sales of the Galaxy Note7 in all channels after Samsung (SSNLF) announced it stopped sales globally after discovering a battery cell issue.
  • TIM Participaes S.A. (TSU) discloses that at today's Board of Directors' Meeting, the members of the Board elected Mr. Adrian Calaza as CFO, whose investiture is conditional on obtaining all necessary consents to the grant of the respective visa, replacing Mr. Guglielmo Noya, whose contract is approaching to its completion and who remains on this position until the effective investiture of Mr. Calaza

9:01 am Delta Air Lines August PRASM down 9.5%, down 7.5% ex-outage impact (DAL) :

Consolidated passenger unit revenue (:PRASM) for the month of August declined 9.5% year over year, as the company continues to see pressure from close-in domestic yield weakness, the ongoing supply-demand imbalance in the Transatlantic, and headwinds from its Yen hedge positions.

  • Co guided for Aug PRASM near low end of down 4-6% (August came in at -7.5% ex-outage impact).

In addition, the outage Delta suffered in August resulted in 2,300 cancelled flights over a three day period. The outage and subsequent operational recovery efforts negatively impacted August revenue by ~$100 million or 2 points of PRASM.

9:00 am Accuride agrees to be acquired by funds managed by Crestview Partners for $2.58/share in cash (shares halted) (ACW) : The merger agreement contains a customary 35 calendar day "go shop" period during which Accuride and its advisors are permitted to solicit alternative transaction proposals. The transaction is subject to customary closing conditions, including Accuride shareholder approval and antitrust approvals in the United States and Mexico, and is expected to close in the fourth quarter of 2016.

8:59 am S&P futures vs fair value: +4.30. Nasdaq futures vs fair value: +14.80. (:WRAPX) :

U.S. equity futures float near session highs, responding to this morning's below-consensus employment reading. The S&P 500 futures trade four points above fair value.

Equity markets across Asia ended the week on a mostly higher note, but once again, trading ranges remained narrow as participants employed caution ahead of the release of the U.S. Employment Situation Report for August. The report showed that 151,000 nonfarm payrolls ( consensus 180k) were added in August.

  • In economic data:
    • Japan's August Household Confidence 42.0 (expected 41.6; last 41.3) and Monetary Base +24.2% year-over-year (consensus 23.1%; last 24.7%)
    • South Korea's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.3% year-over-year (consensus 3.2%; last 3.2%)
  • Japan's August Household Confidence 42.0 (expected 41.6; last 41.3) and Monetary Base +24.2% year-over-year (consensus 23.1%; last 24.7%)
  • South Korea's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.3% year-over-year (consensus 3.2%; last 3.2%)
  • Japan's Nikkei settled just below its flat line, but gained 3.5% for the week. Industrials (-0.5%) and materials (-0.5%) lagged while utilities (+2.1%), financials (+1.3%), and communications (+0.9%) outperformed. Alps Electric, Minebea, JTEKT, TDK, and Komatsu lost between 1.5% and 4.8%. On the upside, J Front Retailing spiked 5.2%.
  • Hong Kong's Hang Seng gained 0.5%, extending its weekly advance to 1.6%. Financials outperformed with China Life Insurance, Ping An Insurance, Bank of East Asia, Hang Seng Bank, and Bank of China posting gains between 0.6% and 1.8%. Consumer names lagged with Belle International falling 1.7% and Li & Fung surrendering 1.5%.
  • China's Shanghai Composite added 0.1%, narrowing its weekly decline to 0.1%. Baotou Tomorrow Technology, China Television Media, and Shaanxi Yanchang Petroleum Chemical Engineering gained between 3.8% and 5.3%.

Major European indices trade in the green with UK's FTSE (+1.3%) pacing the advance. The euro (1.1221) and pound (1.3336) gained ground against the dollar following the below-consensus reading of the U.S. Employment Situation report for August (151k; consensus 180,000). European economic data was limited in terms of volume, but it is worth noting that UK's August Construction PMI (49.2; expected 46.1) and YouGov Business Confidence (109.7; previous 105.0) surpassed estimates, adding to the list of above-consensus data points received in the wake of the Brexit referendum.

  • In economic data:
    • Eurozone July PPI +0.1% month-over-month (expected 0.1%; last 0.8%); -2.8% year-over-year (consensus -2.9%; last -3.1%)
    • UK's August Construction PMI 49.2 (expected 46.1; last 45.9)
    • Italy's Q2 GDP 0.0% quarter-over-quarter, as expected (last 0.0%); +0.8% year-over-year (consensus 0.7%; last 0.8%)
    • Spain's Unemployment Change 14,400 (expected 15,000; last -84,000)
  • Eurozone July PPI +0.1% month-over-month (expected 0.1%; last 0.8%); -2.8% year-over-year (consensus -2.9%; last -3.1%)
  • UK's August Construction PMI 49.2 (expected 46.1; last 45.9)
  • Italy's Q2 GDP 0.0% quarter-over-quarter, as expected (last 0.0%); +0.8% year-over-year (consensus 0.7%; last 0.8%)
  • Spain's Unemployment Change 14,400 (expected 15,000; last -84,000)
  • Germany's DAX is higher by 0.5%. Countercyclical names like RWE, Merck, E.On, Fresenius, and Deutsche Telekom are up between 0.9% and 2.5%. Exporters and financials lag with Daimler, Volkswagen, and BMW down between 0.1% and 1.2% while Deutsche Bank trades flat.
  • France's CAC trades up 1.2% amid broad strength. Veolia Environnement, Accor, Essilor International, L'Oreal, Carrefour, and Kering show gains between 1.3% and 3.3%. Lafarge is the weakest performer, falling 1.2%.
  • UK's FTSE has climbed 1.3% with consumer and health care names pacing the move. Imperial Brands, British American Tobacco, Unilever, Hikma Pharmaceuticals, GlaxoSmithKline, and AstraZeneca are up between 1.6% and 3.2%. Homebuilders lag...