Блог компании DayTraderClub | Америка сегодня. Запасы нефти и газа.

• Co reported Q4 EPS of SEK 2.37 vs SEK 1.27 last year; revs +3% YoY to SEK 82.559 bln.
• «In total, we delivered 50,489 trucks in the fourth quarter, which is 10% less than the preceding year. However, sales in our service business picked up and grew by 2% in local currencies. Profitability in Trucks improved and the adjusted operating margin was 8.7% (7.9).»

The global equity markets are trading slightly higher this morning. S&P Futures have skirted the flat-line for majority of the night.

• Although the PBOC continued to remain on the sidelines with regard to adding liquidity to the markets, the Shanghai managed to gain 0.4% on Wednesday. Traders may have felt some relief from a research note suggesting that the Central Bank's lack of conduction its open market operations should not be interpreted as an implied increase in the benchmark interest rates.
• In Japan, the Nikkei rose 0.5% with the yen retreating from the strength seen during the prior trading session. The index was held back by weakness in the Energy sector, which saw names such as JX Holdings and Inpex falling over 1%.
• Across the pond, the major bourses are generally higher, albeit not by much. Several of Europe's heavyweights released earnings this morning, lending way to a wide range of take-aways. While Rio Tinto, Vinci and Vestas are all trading in the neighborhood of up 3% after reporting their respective updates, names like AP Moeller Maersk (-6%) and ABB (-2%) are keeping gains across the EU indices in check.
• Crude oil is trading lower, but has rebounded off of earlier lows. The initial move followed the release of the weekly API Inventory data, which showed a build of 14.23 mln barrels vs. last week's build of 5.83 mln barrels.

Market updates:

• S&P Futures vs Fair Value: +1.00 
• 10 yr Note: 2.3840% 
• USD/JPY: 112.25 -0.13 
• EUR/USD: 1.0647 -0.0036
• Europe: FTSE +0.1% DAX +0.1% CAC +0.4% 
• Asia: Hang Seng +0.7% Shanghai +0.4% Nikkei +0.5% 
• Commodities: Gold (1239.30 +3.20) Silver (17.76 Unch) crude (51./86 -0.31) 

US Econ Data

• Crude Inventories (10:30am)
• 10-year Note Auction (1pm)

Robert W. Baird upgraded THO to Outperform from Neutral and raises their tgt to $120 from $105. Now seven years into a remarkable RV cycle, firm still sees an opportunity for investors to get ahead of a strong RV season. They like Thor as the RV market leader with a heavy investment in American workers and consumers. Although an inventory de-stocking cycle will mark the end of the trade, firm's checks suggest dealers are optimistic and willing to restock. They see LT upside to margin and like the chances that tax reform will boost consumer demand and corporate profits.

• International Game Technology PLC (IGT) announced that its subsidiary, GTECH Sweden Interactive AB, has signed an eight-year contract extension with SYNOT Group to continue providing system software and game content for SYNOT's interactive video terminals (IVTs) in the Czech Republic and Slovakia through 2026.
• The label for Eli Lilly and Company's (LLY) once-weekly Trulicity (dulaglutide) is now updated to include use in combination with basal insulin for adults with type 2 diabetes. The U.S. Food and Drug Administration (FDA) included the changes to the approved product labeling to reflect this important information for prescribers. Trulicity is available in a prefilled pen in 0.75 and 1.5 mg doses.
• Iron Mountain Incorporated (IRM) announced Fidelma Russo as its Chief Technology Officer. Russo will officially join the company in mid-March after leaving Dell EMC, where she served as senior vice president and general manager for the technology company's Enterprise Storage and Software business.
• Avis Budget Group (CAR) has signed an agreement with Uber Technologies (Private: UBER) to supply Uber's driver partners, and those who want to make money driving with Uber, with cars through Zipcar, the world's leading car sharing network.
• Ecopetrol S.A. (EC) announced that, as established in the Offering Notice of Second Stage, the Company published the offering notice regarding the fourth auction for the second stage of Ecopetrol's equity divestment plan for its shares in Empresa de Energía de Bogota S.A. E.S.P. in a newspaper widely circulated in Colombia. The fourth auction is part of the second stage of the equity divestment plan and the purpose is to offer publicly, in Colombia and/or abroad, the shares that were not acquired during the first, second and third auctions.

Equity indices in the Asia-Pacific region ended the midweek session on a higher note. The People's Bank of China lowered the yuan fix to a two-week low of 6.8849 and decided to forego reverse repurchase operations for the fourth consecutive day. China Information Daily commented on monetary policy, saying the PBoC has no conditions for a rate hike and will remain flexible instead. Separately, the Reserve Bank of India kept its repurchase rate at 6.25% despite calls for a 25-basis point cut.

• In economic data:
  • Japan's January Economy Watchers Current Index 49.8 (expected 51.9; last 51.4). December current account surplus narrowed to JPY1.67 trillion from JPY1.80 trillion (expected surplus of JPY1.71 trillion). January Bank Lending +2.5% year-over-year (expected 2.7%; last 2.6%)

---Equity Markets---

• Japan's Nikkei climbed 0.5%, returning to its closing level from Monday. Dainippon Screen Manufacturing, NGK Insulators, JTEKT, Olympus, Fanuc, Yamato Holdings, Yamaha Motor, Isuzu Motors, and Konica Minolta ended among the leaders with gains between 1.7% and 7.0%.
• Hong Kong's Hang Seng rose 0.7% to a fresh three-month high. Property-related names led the way with China Resources Land, China Overseas, Henderson Land, and Hang Lung Properties rising between 1.1% and 6.8%. Casino names struggled with Sands China and Galaxy Entertainment both losing near 1.7%.
• China's Shanghai Composite added 0.4%. China CSSC Holdings, Ningxia Building Materials Group, China United Network Communications, and Harbin Dongan Auto Engine posted gains between 4.3% and 6.5%.
• India's Sensex shed 0.2%. Drugmakers Sun Pharma and Dr Reddy's Labs underperformed with respective losses of 1.1% and 1.4%. Infosys and ITC lost close to 0.9% apiece while Coal India outperformed, rising 2.0%.

---FX---

• USDJPY -0.1% to 112.25
• USDCNY -0.1% to 6.8737
• USDINR -0.2% to 67.193

Stocks with favorable mention: AMGN, BCS, CHKP, CNC, CSCO, CYBR, FI, HAS, JBL, MB, NYCB, ORCL, PANW, SAN, UNH

Stocks with unfavorable mention: BWLD, ESRX, FTNT, HBI, KORS, NWL, SHLD, TGT, UPS

Major European indices trade near their flat lines while France's CAC (+0.5%) outperforms. Bank stocks have shown relative weakness across the region while energy names also trade in the red amid a decline in crude oil. The euro (1.0650) is down 0.3% against the dollar while the pound (1.2492) has shed 0.1% versus the greenback.

• Economic data was limited:
  • Spain's December Industrial Production +1.9% year-over-year (expected 2.9%; last 2.8%)

---Equity Markets---

• UK's FTSE is lower by 0.1% with Royal Dutch Shell falling 1.7% while financials like Old Mutual, HSBC, Prudential, Barclays, and Lloyds Banking are down between 0.3% and 0.8%. Homebuilders trade near the top of the leaderboard with Persimmon, Taylor Wimpey, and Barratt Developments up between 2.6% and 3.7%.
• Germany's DAX hovers just above its flat line, looking to secure its second consecutive advance. Lufthansa has jumped 3.7% after French peer Air France reported solid January metrics. Exporters are mixed with BMW and Daimler up 1.0% and 0.4%, respectively, while Volkswagen has shed 0.2%. Deutsche Bank has given up 0.8% while Merck is the weakest performer, falling 1.7%.
• France's CAC trades up 0.5%, on track to snap its two-day skid. Vinci leads with a gain of 4.9% in reaction to strong results and guidance. Automakers Renault and Peugeot are both up near 1.4% while most financials trade lower. AXA is off 0.1% while Societe Generale, BNP Paribas, and Credit Agricole show losses between 1.3% and 1.8%.

• Prospect Capital Corporation (PSEC) announced that Prospect recently purchased $136 million of first lien senior secured floating rate notes issued by Centerfield Media Holding Company, a portfolio company of H.I.G. Growth Partners. Centerfield issued these notes to Prospect to support the refinancing of existing debt and the acquisition of Qology Direct Holdings, Inc. by Centerfield. Centerfield is a digital media company that leverages its proprietary technology platform, Dugout, to optimize the customer acquisition process by identifying high value and intent driven consumers at scale across a variety of digital media platforms including search, display, social and others. Qology's customer acquisition and conversion capabilities will enable Centerfield to offer a fully integrated sales and marketing solution controlling the consumer experience from initial touch point all the way through completed sale, delivering new customers at scale to some of the biggest brands worldwide.
• inContact, a NICE company (NICE) announced the appointment of Marcus Daley as chief technology officer. In this role, Daley will be responsible for the company's product research and development, technology strategy and its overall advancement of enterprise-scalability and functionality of cloud operations.  Daley joins the inContact team from S&P Global where he served as CTO, leading the technology organization for the $1.4B Market Intelligence division and managing more than 1,500 employees.
• Can-Fite BioPharma Ltd. (CANF) announced today the Company is ready to commence patient enrollment in the second quarter of 2017 in its global Phase III trial of its lead drug candidate Piclidenoson as a first line treatment for rheumatoid arthritis. The trial, titled ACRobat, will enroll approximately 500 patients in Europe, Canada and Israel. The estimated cost of the entire Phase III study is approximately $5 million. This includes the cost of the global clinical research organizations that have been engaged to help conduct ACRobat. The required supply of Piclidenoson has already been manufactured and paid.
• ClubCorp (MYCC) announced the acquisition of Eagle's Nest Country Club, a premier member-owned country club located in Maryland, just north of Baltimore. ClubCorp plans to spend more than $1 million on capital projects that will bring new amenities, improvements and upgrades to the club.
• Six Flags Entertainment Corporation (SIX) and Samsung Electronics America (SSNLF) announced its renewed collaboration on virtual reality roller coasters with the unveiling of a bold, innovative twist on the experience at Six Flags parks. Last spring, the two companies joined forces to introduce North America's first Virtual Reality Roller Coasters using Samsung Gear VR powered by Oculus, and now in 2017— for the first time ever, riders will be offered a one-of-a-kind mixed reality experience that only Six Flags can deliver.
• Kelso Technologies (KIQ) reports that further to our press release of November 17, 2016 the Company has filed a United States provisional patent application and a corresponding Canadian patent application for an Active Suspension Control System and Method for No-Road Vehicles. The ASCS patent applications owned by Kelso cover numerous new technologies. Kelso anticipates filing further patent applications relating to the ASCS technology as Kelso continues to develop and improve the ASCS technology.
• The Multitest business of Xcerra Corporation (XCRA) announced the introduction of the mmWave contactor, an innovative and robust, patent pending contacting solution for the testing of extremely high frequency semiconductors in high volume production environments.

Upgrades: 

• ABB Ltd (ABB) upgraded to Buy from Neutral at Natixis
• Neste Oyj (NTOIF) upgraded to Neutral from Underperform at Credit Suisse
• ASML (ASML) upgraded to Neutral from Underperform at Exane BNP Paribas
• Aberdeen Asset Management (ABDNY) upgraded to Sector Perform from Underperform at RBC Capital Mkts
• Delta Lloyd (DLLLF) upgraded to Equal Weight from Underweight at Barclays
• Air France-KLM (AFLYY) upgraded to Hold from Sell at Societe Generale
• easyJet (ESYJY) upgraded to Hold from Sell at Societe Generale
• Deutsche Lufthansa AG (DLAKY) upgraded to Buy from Hold at Societe Generale

Downgrades: 

• Hannover Ruckversich (HVRRY) downgraded to Market Perform from Outperform at MainFirst
• Adecco S.A. (AHEXY) downgraded to Underperform from Hold at Jefferies
• Bankia (BNKXF) downgraded to Underperform from Market Perform at Keefe Bruyette
• Daimler AG (DDAIF) downgraded to Neutral from Buy at Citigroup

Miscellaneous: 

• Just Eat plc (JSTLF) initiated with an Add at Numis

Treasuries Rally as Oil Drops and Dollar Strengthens

• U.S. Treasuries are moving higher this morning in a curve-flattening trade as the S&P 500 gets set to open down 0.06% to 2,291.6. On Tuesday afternoon, the American Petroleum Institute reported that crude oil stockpiles rose by the second largest amount on record last week (14.2 million barrels) and that is pushing WTI crude 0.84% lower to $51.73/bbl. Internationally, the Reserve Bank of India unexpectedly kept its policy rate unchanged at 6.25%. Elsewhere, domestic investors in Japan sold more U.S. Treasuries in December than in any month since May 2013 and Spanish and Turkish industrial production growth missed forecasts in December. The U.S. Dollar Index is up 0.26% to 100.52 and gold is at a three month high, up 0.42% to $1,241.2/troy oz.
• Yield Check:
  
  • 2-yr: unch at 1.16%
  • 5-yr: -2 bps to 1.83%
  • 10-yr: -2 bps to 2.37%
  • 30-yr: -3 bps to 2.99%

• International News:
  
  • Japan's current account surplus narrowed more than expected to a seasonally adjusted JPY1.67 tln in December (Prior JPY1.80 tln)
    
    • Bank lending grew by 2.5% y/y in January, unexpectedly slowing from December's 2.6%
  • Separately, Japan's domestic investors sold JPY2.4 tln of U.S. Treasuries in December, the highest monthly net sales since May 2013
  • Japan's Economy Watchers Current Index unexpectedly fell to 49.8 for January from 51.4 for December
  • The Bank of Thailand kept its main policy rate at 1.5%, as expected
    
    • Thailand's GDP was up 3.2% y/y in Q3 2016
  • The Reserve Bank of India kept its main policy rate at 6.25%, defying expectations for a cut
    
    • Analysts had been looking for monetary easing after Prime Minister Narenda Modi's move to eliminate 86% of the country's cash last November reduced economic growth
    • India's consumer price inflation ran at 3.4% y/y in December, well below the RBI's target of 5%
  • Industrial production in Turkey grew 1.3% y/y in December, missing forecasts after 2.7% growth in November
  • Poland's central bank kept its benchmark 7-day reference rate at 1.5%, as expected
  • Spanish industrial production rose 1.9% y/y in December, missing forecasts for a bit of acceleration after November's 2.8% growth
  • Portugal's unemployment rate remained at 10.5% in Q4 from the prior quarter, as expected
  • Brazil's consumer price index increased by 0.38% m/m in January (5.35% y/y) after 0.30% growth in December

• Data out Today:
  
  • MBA Mortgage Index for the week ending 2/4: Actual 2.3% w/w, Prior -3.2%
    
    • 30-year fixed mortgage rate: Actual 4.35%, Prior 4.39%
  • Crude Inventories for the week ending 2/4 (10:30 ET)
• Treasury Auction:
  
  • $23 bln 10-year Treasury auction (results at 13:00 ET)

• Concho Resources (CXO) announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as it applies to the previously announced sale of the Company's ownership interests in Alpha Holding Company, LLC, the owner of the Alpha Crude Connector system, to Plains All American Pipeline, was terminated early by the United States Federal Trade Commission on February 6, 2017. While the ACC sale remains subject to various closing conditions, Concho expects to close the transaction the week of February 13, 2017.
• Accuray Incorporated (ARAY) announced that it has received Shonin approval from the Japanese Ministry of Health, Labor and Welfare to market its Radixact Treatment Delivery System, Accuray Precision Treatment Planning System and iDMS Data Management System. Together, the treatment delivery system and software solutions enable clinicians to provide highly precise treatment, efficiently, for a wider range of cancer patients, including those undergoing retreatment. This new Radixact platform is now available in Japan, in certain markets in the European Union, and in the U.S. market.
• Summit Midstream Partners (SMLP) announced the commencement of an offer to purchase by its wholly owned subsidiaries Summit Midstream Holdings, LLC, a Delaware limited liability company, and Summit Midstream Finance Corp., a Delaware corporation for cash any and all of the issuer's outstanding 7.50% Senior Notes due 2021. As of February 7, 2017, there was $300.0 million aggregate principal amount of Notes outstanding. The tender offer is being made pursuant to an Offer to Purchase dated February 8, 2017 and the related Letter of Transmittal and Notice of Guaranteed Delivery. The tender offer will expire at 5:00pm ET on February 14, 2017, unless extended. Tendered Notes may be withdrawn at any time before the Expiration Time.
• An extended 60-day public consultation on recommendations to decommission the Brent oil and gas field in the North Sea has begun today following submission by Shell U.K. Limited (RDS.A), the field's operator, of a comprehensive decommissioning programme to the Department for Business, Energy and Industrial Strategy (BEIS). The field, located 115 miles north-east of the Shetland Islands has produced around three billion barrels of oil equivalent since production commenced in 1976, which is almost 10% of UK production.

Equity futures are flat this morning following a generally positive performance overseas. The S&P 500 futures currently trade three points below fair value.

U.S. Treasuries are in positive territory this morning, extending yesterday's gains. The benchmark 10-yr yield is two basis points lower at 2.37%.

Conversely, crude oil has continued Tuesday's downward trend. The energy component is currently down 0.8% at $51.73/bbl amid reports that indicate an uptick in U.S. production and a slump in Chinese demand.

The weekly MBA Mortgage Index, which was released earlier this morning, increased 2.3% to follow last week's 3.2% decline.

Investors will not receive any other economic data on Wednesday.

In U.S. corporate news:

• Walt Disney (DIS 108.95, -0.05): -0.1% after beating on earnings but missing revenue estimates.
• Gilead Sciences (GILD 68.51, -4.62): -6.3% after the company's downbeat guidance overshadowed better than expected earnings and revenues. The company also announced that it will be increasing its dividend. 
• Allergan (AGN 235.61, +3.00): +1.3% after reporting better than expected earnings and revenues.
• Mondelez (MDLZ 43.36, -0.57): -1.3% after missing on both the top and bottom lines.
• Panera Bread (PNRA 219.90, +5.63): +2.6% after reporting better than expected earnings.
• Buffalo Wild Wings (BWLD 144.00, -5.80): -3.9% after missing revenue and earnings estimates. The company also issued downbeat guidance.

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the midweek session on a higher note. Japan's Nikkei +0.5%, Hong Kong's Hang Seng +0.7%, China's Shanghai Composite +0.4%, India's Sensex -0.2%.
  • In economic data:
    • Japan's January Economy Watchers Current Index 49.8 (expected 51.9; last 51.4). December current account surplus narrowed to JPY1.67 trillion from JPY1.80 trillion (expected surplus of JPY1.71 trillion). January Bank Lending +2.5% year-over-year (expected 2.7%; last 2.6%)
  • In news:
    • The People's Bank of China lowered the yuan fix to a two-week low of 6.8849 and decided to forego reverse repurchase operations for the fourth consecutive day. China Information Daily commented on monetary policy, saying the PBoC has no conditions for a rate hike and will remain flexible instead.
    • The Reserve Bank of India kept its repurchase rate at 6.25% despite calls for a 25-basis point cut.

• Major European indices trade near their flat lines while France's CAC outperforms. UK's FTSE -0.1%, Germany's DAX unch, France's CAC +0.5%.
  • Economic data was limited:
    • Spain's December Industrial Production +1.9% year-over-year (expected 2.9%; last 2.8%)
  • News was limited:
    • Bank stocks have shown relative weakness across the region while energy names also trade in the red amid a decline in crude oil.

• RBC notes that Disney beat quarterly results on strong margins while the digital cable environment may be unfolding more quickly and favorably than they'd initially anticipated. This adds to their conviction in a DIS re-rating, which is why it's their top long among media stocks.  Reiterate Outperform, $130 tgt.  
• Stifel notes Disney reported ahead of consensus results, though the weaker than expected Cable contributions likely offsets investor enthusiasm regarding a beat at Parks and Broadcast. They found the commentary around reduced ad loads, DTC opportunities in sports and in kids and VMVPD distribution as highlighting both the opportunities afforded the premier content provider but at the same time indicative of the expansive manner in which SVOD has permanently changed consumer expectations and the challenges which the sector has in evolving to meet these changes given current distribution infrastructure contracts/investments. Remain Hold, $100 tgt.
• Needham notes that DIS's FY1Q17 revenue of $14.78B was down 3% y/y and 4% below their estimate. DIS's EPS was $1.55, down 5% y/y and 4% above their estimate. Key conference call points: 1) DIS's planned launch in 2017 of a direct-to-consumer sports service that will combine the digital sports rights of ESPN and BAM (pricing unclear so far): 2) new Avatar land in Animal Kingdom should drive Orlando parks attendance: 3) Tougher comps for Film and Parks (Easter shift) in FY2Q17: 4) Scatter prices 25% above up-fronts; and 5) consumer products comps should improve in 2H17, tied to Cars and Spiderman films. Remain Hold.  
• FBR notes that DIS's F1Q17 was a little better than we feared, mainly because of impressive parks margins. Despite the headline EPS beat, their estimates are little changed, and their price target is unchanged, at $116.

Shares of Disney are trading flat in the pre-market

Gapping up
In reaction to strong earnings/guidance:

• COHR +15.3%, MYGN +13.6%, JIVE +10.1%, PSDV +9.6%, MCHP +7.7%, CTSH +5.1%, CNO +4.5%, ALK +4.3%, PIR +3.8%, (reiterates Q4 guidance)
• CAMT +3.3%, YUMC +3.1%, (also announces $300 mln buyback; promotes KFC CEO to COO), TWLO +2.9%, PNRA +2.7%, SNY +2.2%, EMKR +2.1%
• IPHI +2.1%, GNW +2%, SYT +1.9%, GRA +1.7%, CALD +1.6%, AGN +1.4%, NUAN +1.3%, FARM +0.5%, LUV +0.5%, ARCH +0.5%, TWX +0.5%

M&A news:

• TIME +2.1% (Meredith (MDP) and group of investors might move ahead with acquisition of TIME, according to WSJ)

Select metals/mining stocks trading higher:

• HMY +4%, KGC +2.5%, AG +2.1%, AU +1.7%, GDX +1.4%, NEM +1.2%, GFI +1.1%, ABX +1.1%

Other news:

• APOP +11.5% (treated the first blood cancer patient in the recently initiated Phase I/II trial of its stem cell technology ApoGraft)
• GALT +6.3% (announces combination immunotherapy with Galectin-3 inhibitor GR-MD-02 'enhances' effects in pre-clinical models and early results of phase 1 clinical trials; data presented at the GTCBio Immunotherapeutics Conference)
• CRCM +4.2% (continued strength)
• HT +3.5% (will replace WCI Communities in the S&P SmallCap 600)
• CTB +2.6% (will replace comScore in the S&P MidCap 400)
• EIX +1% (California Utilities' settlement agreement)

Analyst comments:

• USAK +3% (upgraded to Mkt Perform from Mkt Underperform at Avondale)
• TWTR +2.4% (upgraded to Buy at BTIG Research)
• MOMO +1.1% (initiated with a Buy at Jefferies)
• PNC +0.8% (added to Conviction Buy List at Goldman)

The stock market is on track to open Wednesday's session slightly lower as the S&P 500 futures trade two points below fair value.

A handful of household names reported earnings results between yesterday's close and today's open, including Walt Disney (DIS 108.95, -0.05), Zillow (ZG 34.52, -2.35), Panera Bread (PNRA 219.90, +5.63), Buffalo Wild Wings (BWLD 144.00, -5.80), Goodyear Tire & Rubber (GT 32.24, 0.00), and Time Warner (TWX 97.20, +0.98), among others.

Panera Bread and Time Warner are up 2.6% and 1.0%, respectively, after PNRA reporting better than expected earnings and TWX beat top and bottom line estimates.

On the other hand, Zillow also had a positive earnings report, beating revenue and earnings estimate, but its shares have slid 6.4% regardless. Buffalo Wild Wings is also lower, losing 3.9%, after missing top and bottom line estimates and issuing downbeat guidance.

Lastly, Walt Disney and Goodyear currently trade flat in pre-market action after the companies' better than expected earnings have been balanced by their worse than expected revenues.

European Government Bonds Jump

• European sovereign bonds are trading sharply higher this morning as the tailwind from strong gains in Treasuries this week begins to be felt in the U.K. and eurozone. One day after Germany's Industrial Production report for December disappointed investor expectations, Spanish industrial production repeated the trick. Spanish industrial production growth slowed to 1.9% y/y in the final month of 2016, missing forecasts for improvement on November's 2.8% growth. There are a variety of data series that justify optimism over eurozone growth — manufacturing and services PMIs immediately come to mind — and eurozone yields have moved sharply higher over the past two weeks, but currency investors are so far unimpressed (EUR/USD: -0.05% to 1.0665). Another concern is that higher sovereign debt yields in eurozone countries like France, Italy, and Spain are a result of greater credit risk rather than inflation risk. The 10-year German bund yield is back down to 0.30% today, a level it traded only two days after the November 8 U.S. election which supposedly sent the reflation trade into high gear. And yet, the growth picture in the eurozone looks encouraging and there is really no prospect of meaningful tightening in monetary policy for at least six months
• New Issuance:
  
  • Germany sold EUR3.00 bln of 10-year bunds at an average yield of 0.33% with a bid-to-cover ratio of 2.15
• European Economic Data:
  
  • Poland's central bank kept its benchmark 7-day reference rate at 1.5%, as expected
  • Spanish industrial production rose 1.9% y/y in December, missing forecasts for a bit of acceleration after November's 2.8% growth
  • Portugal's unemployment rate remained at 10.5% in Q4 from the prior quarter, as expected
• Yield Check:
  
  • France, 10-yr OAT: -4 bps to 1.06%
  • Germany, 10-yr bund: -5 bps to 0.30%
  • Greece, 10-yr note: -8 bps to 7.63%
  • Italy, 10-yr BTP: -5 bps to 2.31%
  • Portugal, 10-yr PGB: -8 bps to 4.14%
  • Spain, 10-yr ODE: -3 bps to 1.71%
  • U.K., 10-yr gilt: -5 bps to 1.24%

Gapping down
In reaction to disappointing earnings/guidance:

• USNA -19.2%, TDW -16.7%, (also updates status of discussions with lenders and notehoders), SPSC -13.3%, TCX -11.5%, ORBK -9.3%, WAIR -6.7%
• DRYS -6.6%, ZG -6.5%, GILD -6.3%, CG -5.5%, NTGR -4.8%, ULTI -4.5%, PAA -4%, BWLD -4%, AKAM -3.7%
• URBN -2.9%, (reports prelim Q4 (Jan) sales of $1.03 bln vs. $1.05 bln Capital IQ Consensus Estimate), TCS -2.8%
• ABB -2.8%, AWRE -2.7%, MDLZ -1.3%, LPX -1.3%, NEWR -1.2%

M&A news:

• PE -7.3% (to acquire oil/gas properties in Midland Basin from Double Eagle Energy Permian for approx $2.8 bln, prices 36 mln shares of Class A common stock for total gross proceeds $1.116 bln)

Select EU financial related names showing weakness:

• CS -3.3%, SAN -2.2%, BBVA -2.1%, DB -1.9%, HSBC -0.8%

Select oil/gas related names showing early weakness:

• PBR -1.7%, RDS.A -1.5%, RIG -1.1%, CHK -0.8%, SDRL -0.6%

Other news:

• GALE -22.1% (to issue/sell shares of common stock and warrants to purchase shares of common stock; amends Purchase Agreement with Lincoln Park Capital to decrease the value of common stock of the Company that it may sell to Lincoln Park from $55 mln to $15.6 mln)
• EYES -12.7% (pulling back following yesterday's 78% move higher)
• CHRS -9% (commences an underwritten public offering of $125,000,000 of shares of its common stock)
• GMLP -6.7% (prices offering of 4.5 mln common units for gross proceeds of $103.5 mln)
• DCIX -4.4% (DRYS sympathy)
• AMC -4.3% (upsizes and prices offering of 19,047,619 shares of Class A common stock at $31.50 per share)
• FXCM -4.3% (Gain Capital enters into definitive agreement to acquire the client base of FXCM's U.S. operations; terms not disclosed)
• NE -2.1% (possibly TDW sympathy)
• PVG -0.8% (is offering $90,000,000 aggregate principal amount of unsecured convertible senior subordinated notes due 2022 pursuant to private placement)

Analyst comments:

• YY -0.8% (initiated with Hold at Jefferies)

Gapping up
In reaction to strong earnings/guidance:

• COHR +15.3%, MYGN +13.6%, JIVE +10.1%, PSDV +9.6%, MCHP +7.7%, CTSH +5.1%, CNO +4.5%, ALK +4.3%, PIR +3.8%, (reiterates Q4 guidance)
• CAMT +3.3%, YUMC +3.1%, (also announces $300 mln buyback; promotes KFC CEO to COO), TWLO +2.9%, PNRA +2.7%, SNY +2.2%, EMKR +2.1%
• IPHI +2.1%, GNW +2%, SYT +1.9%, GRA +1.7%, CALD +1.6%, AGN +1.4%, NUAN +1.3%, FARM +0.5%, LUV +0.5%, ARCH +0.5%, TWX +0.5%

M&A news:

• TIME +2.1% (Meredith (MDP) and group of investors might move ahead with acquisition of TIME, according to WSJ)

Select metals/mining stocks trading higher:

• HMY +4%, KGC +2.5%, AG +2.1%, AU +1.7%, GDX +1.4%, NEM +1.2%, GFI +1.1%, ABX +1.1%

Other news:

• APOP +11.5% (treated the first blood cancer patient in the recently initiated Phase I/II trial of its stem cell technology ApoGraft)
• GALT +6.3% (announces combination immunotherapy with Galectin-3 inhibitor GR-MD-02 'enhances' effects in pre-clinical models and early results of phase 1 clinical trials; data presented at the GTCBio Immunotherapeutics Conference)
• CRCM +4.2% (continued strength)
• HT +3.5% (will replace WCI Communities in the S&P SmallCap 600)
• CTB +2.6% (will replace comScore in the S&P MidCap 400)
• EIX +1% (California Utilities' settlement agreement)

Analyst comments:

• USAK +3% (upgraded to Mkt Perform from Mkt Underperform at Avondale)
• TWTR +2.4% (upgraded to Buy at BTIG Research)
• MOMO +1.1% (initiated with a Buy at Jefferies)
• PNC +0.8% (added to Conviction Buy List at Goldman)

Gapping down
In reaction to disappointing earnings/guidance:

• USNA -19.2%, TDW -16.7%, (also updates status of discussions with lenders and notehoders), SPSC -13.3%, TCX -11.5%, ORBK -9.3%, WAIR -6.7%
• DRYS -6.6%, ZG -6.5%, GILD -6.3%, CG -5.5%, NTGR -4.8%, ULTI -4.5%, PAA -4%, BWLD -4%, AKAM -3.7%
• URBN -2.9%, (reports prelim Q4 (Jan) sales of $1.03 bln vs. $1.05 bln Capital IQ Consensus Estimate), TCS -2.8%
• ABB -2.8%, AWRE -2.7%, MDLZ -1.3%, LPX -1.3%, NEWR -1.2%

M&A news:

• PE -7.3% (to acquire oil/gas properties in Midland Basin from Double Eagle Energy Permian for approx $2.8 bln, prices 36 mln shares of Class A common stock for total gross proceeds $1.116 bln)

Select EU financial related names showing weakness:

• CS -3.3%, SAN -2.2%, BBVA -2.1%, DB -1.9%, HSBC -0.8%

Select oil/gas related names showing early weakness:

• PBR -1.7%, RDS.A -1.5%, RIG -1.1%, CHK -0.8%, SDRL -0.6%

Other news:

• GALE -22.1% (to issue/sell shares of common stock and warrants to purchase shares of common stock; amends Purchase Agreement with Lincoln Park Capital to decrease the value of common stock of the Company that it may sell to Lincoln Park from $55 mln to $15.6 mln)
• EYES -12.7% (pulling back following yesterday's 78% move higher)
• CHRS -9% (commences an underwritten public offering of $125,000,000 of shares of its common stock)
• GMLP -6.7% (prices offering of 4.5 mln common units for gross proceeds of $103.5 mln)
• DCIX -4.4% (DRYS sympathy)
• AMC -4.3% (upsizes and prices offering of 19,047,619 shares of Class A common stock at $31.50 per share)
• FXCM -4.3% (Gain Capital enters into definitive agreement to acquire the client base of FXCM's U.S. operations; terms not disclosed)
• NE -2.1% (possibly TDW sympathy)
• PVG -0.8% (is offering $90,000,000 aggregate principal amount of unsecured convertible senior subordinated notes due 2022 pursuant to private placement)

Analyst comments:

• YY -0.8% (initiated with Hold at Jefferies)

The S&P 500 futures trade four points below fair value.

Equity indices in the Asia-Pacific region ended the midweek session on a higher note. The People's Bank of China lowered the yuan fix to a two-week low of 6.8849 and decided to forego reverse repurchase operations for the fourth consecutive day. China Information Daily commented on monetary policy, saying the PBoC has no conditions for a rate hike and will remain flexible instead. Separately, the Reserve Bank of India kept its repurchase rate at 6.25% despite calls for a 25-basis point cut.

• In economic data:
  • Japan's January Economy Watchers Current Index 49.8 (expected 51.9; last 51.4). December current account surplus narrowed to JPY1.67 trillion from JPY1.80 trillion (expected surplus of JPY1.71 trillion). January Bank Lending +2.5% year-over-year (expected 2.7%; last 2.6%)

---Equity Markets---

• Japan's Nikkei climbed 0.5%, returning to its closing level from Monday. Dainippon Screen Manufacturing, NGK Insulators, JTEKT, Olympus, Fanuc, Yamato Holdings, Yamaha Motor, Isuzu Motors, and Konica Minolta ended among the leaders with gains between 1.7% and 7.0%.
• Hong Kong's Hang Seng rose 0.7% to a fresh three-month high. Property-related names led the way with China Resources Land, China Overseas, Henderson Land, and Hang Lung Properties rising between 1.1% and 6.8%. Casino names struggled with Sands China and Galaxy Entertainment both losing near 1.7%.
• China's Shanghai Composite added 0.4%. China CSSC Holdings, Ningxia Building Materials Group, China United Network Communications, and Harbin Dongan Auto Engine posted gains between 4.3% and 6.5%.
• India's Sensex shed 0.2%. Drugmakers Sun Pharma and Dr Reddy's Labs underperformed with respective losses of 1.1% and 1.4%. Infosys and ITC lost close to 0.9% apiece while Coal India outperformed, rising 2.0%.

Major European indices hold modest losses while France's CAC (+0.2%) outperforms. Bank stocks have shown relative weakness across the region while energy names also trade in the red amid a decline in crude oil. The euro (1.0671) is down 0.1% against the dollar while the pound (1.2510) is flat versus the greenback.

• Economic data was limited:
  • Spain's December Industrial Production +1.9% year-over-year (expected 2.9%; last 2.8%)

---Equity Markets---

• UK's FTSE is lower by 0.2% with Royal Dutch Shell falling 1.8% while financials like Old Mutual, HSBC, Prudential, Barclays, and Lloyds Banking are down between 0.8% and 1.0%. Homebuilders trade near the top of the leaderboard with Persimmon, Taylor Wimpey, and Barratt Developments up between 2.1% and 3.5%.
• Germany's DAX has also shed 0.2%. Lufthansa has jumped 3.2% after French peer Air France reported solid January metrics. Exporters are mixed with BMW and Daimler up 0.6% and 0.1%, respectively, while Volkswagen has shed 0.7%. Deutsche Bank has given up 2.3% while Merck has dropped 2.0%.
• France's CAC trades up 0.2%, on track to snap its two-day skid. Vinci leads with a gain of 5.0% in reaction to strong results and guidance. Automakers Renault and Peugeot are both up 1.0% and 0.6%, respectively, while most financials trade lower. AXA is off 1.1% while Societe Generale, BNP Paribas, and Credit Agricole show losses between 2.0% and 2.3%.

Filings:

• Cardinal Health (CAH) files mixed securities shelf offering; size not disclosed
• EZCORP (EZPW) files to withdraw registration statement on Form S-3 initially filed on February 3, 2017, says the statement was filed in error as an initial Form S-3, rather than a pre-effective amendment as intended
• Halliburton (HAL) files mixed securities shelf offering; size not disclosed
• Highwoods Prop (HIW) files mixed securities shelf offering; size not disclosed

Offerings:

• Pieris Pharmaceuticals (PIRS) terminates $35 mln at-the-market offering program with Cowen and Company
• Pretium Resources (PVG) offering $90 mln aggregate principal amount of unsecured convertible senior subordinated notes due 2022

Pricings:

• AMC Entertainment (AMC 32.50) upsizes and prices offering of 19,047,619 shares of Class A common stock at $31.50 per share
• Coherus BioSciences (CHRS 26.65) prices underwritten public offering of 5,154,640 shares of its common stock at a price to the public of $24.25 per share
• Galena Biopharma (GALE 1.40) prices $17 mln underwritten public offering of units at $1.00/unit
• Golar LNG Partners (GMLP 24.54) prices offering of 4.5 mln common units for gross proceeds of $103.5 mln
• Parsley Energy (PE 33.33) prices 36 mln shares of Class A common stock for total gross proceeds $1.116 bln

• Mimecast Limited (MIME) announced that it has achieved certification to ISO 22301:2012, the international standard for business continuity management systems. Issued by Certification Europe, an accredited certification body which provides International Organization for Standardization (ISO) management system certification and other management standards to organizations globally, the ISO 22301 standard stipulates the requirements for a management system to protect against, reduce the likelihood of and ensure a business recovers from disruptive incidents.
• Almaden Minerals Ltd. (AAU) announced  further assay results from Almaden's ongoing exploration and development program at the Company's Tuligtic project, Mexico. Results reported today are from drill holes TU-16-487, 489, 491 and 493 drilled on sections 10+600 and 10+775 East. The holes intersected significant mineralisation and veining inside or immediately outside of the Amended PEA pit including the previously defined subvertical Ixtaca North vein zone, as well as potential new zones of veining.
• Corning Incorporated (GLW) announced that it has collaborated with Micromax for its Vdeo smartphones, designed for the «value-segment» consumer. The recently launched devices are among the first across India's mobile phone entry segment to incorporate Corning Gorilla Glass to help protect against damage.
• Cresud SA (CRESY) reports that its subsidiary Brasilagro, controlled by the Society, communicated to the market that it has entered into a Purchase and Sale Agreement and Agricultural Partnership for a property located in the municipality of São Raimundo das Mangabeiras, in the state of Maranhão — Brazil. The Purchase and Sale Agreement consists in the acquisition of 17,566 hectares, 10,000 hectares of which are arable, have already been develop and will be cultivated with grains. The other 7,566 hectares are permanent preservation and legal reserve areas. The acquisition price is R$100.0 million (R$10,000/ha arable), which will be fully paid when the sellers meet certain conditions precedent.

• No IPOs Opening Today.
  

Upcoming IPOs:

• February 10: Foundation Building Materials (FBM) — The second largest specialty distributor of wallboard & suspended ceiling systems in the US & Canada is expected to price its 12.8 million share IPO within a range of $17-$19.

• February 10: Clipper Realty (CLPR) -- The REIT owning and managing multi-family residential and commercial properties in New York is expected to price its 7.1 million share IPO within a range of $13.50-$15.50.

• February 10: Sachem Capital (SACH) -- The REIT specializing in originating, underwriting, funding, and servicing a portfolio of short-term loans secured by first mortgage liens is expected to price its 3.0 million share IPO at $5.

The S&P 500 futures currently trade four points below fair value, indicating a modestly lower open for Wednesday's session.

Earnings reports have been the focal point this morning with a ream of names reporting between yesterday's close and today's open. Gilead Sciences (GILD 67.98, -5.15) has been one of the most notable movers in pre-market action, dropping 7.0%, after downbeat guidance overshadowed the company's better than expected earnings results. Goodyear Tire & Rubber (GT 31.34, -0.90) has also slipped, losing 2.8%, in reaction to worse than expected revenues.

On the flip side, Alaska Air (ALK 96.30, +2.20) has pushed 2.3% higher in pre-market trade after beating top and bottom line estimates in addition to raising its dividend. Similarly, Allergan (AGN 237.50, +4.89) and Time Warner (TWX 97.05, +0.83) have seen a nice bump, adding 2.2% and 0.9%, respectively, on the companies' better than expected earnings and revenues.

U.S. Treasuries hold solid gains this morning, continuing Tuesday's positive momentum. The benchmark 10-yr yield is lower by three basis points at 2.36%.

The weekly MBA Mortgage Index, which was released earlier this morning, increased 2.3% to follow last week's 3.2% decline. The report is the only item on today's economic calendar.

Economic Data Summary:

• Weekly MBA Mortgage Applications 2.3% (Last Week was -3.2%).

Upcoming Economic Data:

• Weekly Initial Claims due out Thursday at 8:30 (Briefing.com consensus of 250K; Last Week was 246K)
• Weekly Continuing Claims due out Thursday at 8:30 (Briefing.com consensus of; was 2.046 M )
• December Wholesale Inventories due out Thursday at 10:00 (Briefing.com consensus of 1.0%; 1.0% was 1.0% )

Upcoming Fed/Treasury Events:

• The Treasury is expected to auction off new debt this week.
  • Wednesday: $23 bln in 10 Year Treasury Note Auction
  • Thursday: $15 bln in 30 Year Treasury Bond Auction

Other International Events of Interest

• The People's Bank of China lowered the yuan fix to a two-week low of 6.8849 and decided to forego reverse repurchase operations for the fourth consecutive day. China Information Daily commented on monetary policy, saying the PBoC has no conditions for a rate hike and will remain flexible instead.

• CNN is the number 1 news network among adults 18-49.
• Believes CNN is positioned for another record breaking year in 2017.
• HBO
  • HBO recently surpassed 2 million domestic OTT subscribers.
  • Emphasizing capitalizing on HBO subscriber growth.
• AT&T (T) Merger
  • Regulatory review process is underway, co is confident the deal will be approved later this year.
• In Q1 expects advertising revenue to be flat. 
• Expects solid domestic affiliate revenue growth at Turner.
• On basketball deals and sports ratings
  • Feels very confident in sports they are in.
  • Ratings in general have improved since the election, seeing better matchups and more competitive games.
  • Seeing strong advertiser demand for both the NBA and NCAA basketball championships.
  • Optimistic about ability to continue growing ratings.
• Believes they can create more sustainable pipeline in their video game business, and grow mobile.
• Believes there is a big opportunity in china to create local language content and export content.

The S&P 500 opened Wednesday's session with a modest 0.2% loss as six of its eleven sectors trade in the red.

Countercyclical groups have the upper hand in early action with consumer staples, utilities, telecom services, and real estate holding gains between 0.2% and 0.4%. However, the largest defensive space by weight, health care (-0.6%), trades lower after Gilead Sciences (GILD 66.07, -7.00) issued negative guidance following yesterday's close.

On the cyclical side, five of the six spaces trade lower with energy (-1.0%) leading the retreat. The consumer discretionary sector (+0.2%) bucks the bearish trend with Walt Disney (DIS 110.69, +1.87) up 1.6% after the company's better than expected earnings per share results have overshadowed a miss on revenues.

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

• MCHP (74.24 +6.63%): Reports Q3 EPS and revenue beats; guides Q4 EPS above consensus, revs above consensus.
• CTSH (55.6 +3.36%): Reports Q4 EPS beat; guides Q1 revenues above consensus.
• TWTR (18.29 +0.05%): Upgraded to buy at BTG research.

Large Cap Losers

• GILD (65.85 -9.95%): Guides FY17 revenue below consensus; downgraded to Neutral from Buy at Citigroup.
• PAA (31 -4%): Reports Q4 EPS miss.
• ABB (22.58 -3.73%): Shares fall on Q4 EPS miss.

Mid Cap Gainers

• COHR (190.35 +17.98%): Reports Q1 EPS and revenue beats.
• LITE (43 +6.97%): Reports Q2 EPS beat; guides Q3 EPS midpoint above estimates
• PNRA (226.49 +5.7%): Shares rise on Q4 EPS beat; Q4 comparable net bakery-cafe sales increased 3.0%.

Mid Cap Losers

• ZG (34.05 -8.37%): Down despite reporting Q4 EPS and revenue beats; guides Q1 revenues in-line, guides FY17 revenues in-line.
• PE (30.57 -8.3%): To acquire oil/gas properties in Midland Basin from Double Eagle Energy Permian for approx $2.8 bln, prices 36 mln shares of Class A common stock for total gross proceeds $1.116 bln.
• GRUB (38.15 -7.65%): Shares fall on Q4 EPS miss.

The tech sector — XLK — trades modestly ahead of the broader market. Semiconductors, meanwhile, display relative strength as the SOX index trades +0.07%. Within the SOX index, SIMO (+4.85%) outperforms, while NVDA (-1.85%) lags. Among other major indices, the SPY is trading 0.10% lower, while the QQQ -0.02% and the NASDAQ -0.16% trade modestly lower on the session. Among tech bellwethers, VOD (+1.72%) is showing relative strength, while QCOM (-0.71%) lags.

Notable gainers following earnings:

• COHR (+17.5%) reported better than expected Q1 EPS and revs, SCSC (+10.2%) reported mixed Q2 results and gave in-line Q3 guidance, MCHP (+6.4%), CTSH (+3.0%)

Notable laggards following earnings:

• AKAM (-12.4%) reported better than expected Q4 EPS and revs; guided Q1 EPS ahead of expectations, revs in-line, CSRA (-7.0%), ULTI (-5.3%), BR (-1.0%)

Gainers on news:

• CTSH (+2.6%) co entered into a cooperation agreement with Elliott Management.

Laggards on news:

• SITO (-2.2%) co sold remaining portion of its legacy Wireless Applications business to 3Cinteractive for $400k in cash.
• PCLN (-0.4%) co to acquire the Momondo Group for $550 mln.
• ACN (-0.4%) co to acquire US federal govt services business of Endgame, a privately held endpoint detection and response cybersecurity software company; Terms not disclosed .

Among notable analyst upgrades:

• FIS (+2.4%) upgraded to Outperform from Neutral at Credit Suisse
• IPHI (-2.4%) to Outperform from Market Perform at Cowen
• TWTR (+0.1%) to Buy from Neutral at BTIG Research
• MCHP (+7.2%) to Strong Buy from Buy at Needham

Among notable analyst downgrades:

• SPSC (-22.8%) downgraded to Market Perform from Outperform at William Blair
• SPSC (-22.8%) to Sector Weight from Overweight at Pacific Crest
• SPSC (-22.8%) to Hold from Buy at Canaccord Genuity
• YNDX (-2.1%) to Hold from Buy at Raiffeisen
• MBT (-1.3%) to Reduce from Hold at Raiffeisen
• NTGR (-8.8%) to Mkt Perform from Outperform at Raymond James

Scheduled to report earnings after the bell:

• AOSL BLKB CTL CMP CRAY ECHO FISV FORM FORR GLUU IMPV NSIT KS LLNW LPSN MXL MB PAYC QLYS QNST SNCR TRMB TTMI TYL VRNS WSTL ZEN

Scheduled to report earnings tomorrow morning:

• APPS LQDT MMS TU TDC TZOO TRMR TWTR VRTU WILN

Production: U.S. crude oil refinery inputs avgd 15.9 mln barrels per day during the week ending February 3, 2017, 54,000 barrels per day less than the previous week's avg. Refineries operated at 87.7% of their operable capacity last week. Gasoline production increased last week, averaging 9.8 mln barrels per day. Distillate fuel production increased last week, averaging 4.8 mln barrels per day.

Imports: U.S. crude oil imports avgd about 9.4 mln barrels per day last week, up by 1.1 mln barrels per day from the previous week. Over the last four weeks, crude oil imports avgd about 8.5 mln barrels per day, 10.0% above the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week avgd 811,000 barrels per day. Distillate fuel imports avgd 209,000 barrels per day last week.

Inventory: U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 13.8 mln barrels from the previous week. At 508.6 mln barrels, U.S. crude oil inventories are above the upper limit of the avg range for this time of year. Total motor gasoline inventories decreased by 0.9 mln barrels last week, but are above the upper limit of the avg range. Both finished gasoline inventories and blending components inventories decreased last week. Distillate fuel inventories remained unchanged last week and are above the upper limit of the avg range for this time of year. Propane/propylene inventories fell 6.9 mln barrels last week but are in the middle of the avg range. Total commercial petroleum inventories increased by 1.4 mln barrels last week.

Demand: Total products supplied over the last four-week period avgd about 19.9 mln barrels per day, up by 0.3% from the same period last year. Over the last four weeks, motor gasoline product supplied avgd over 8.3 mln barrels per day, down by 6.0% from the same period last year. Distillate fuel product supplied avgd about 3.9 mln barrels per day over the last four weeks, up by 7.6% from the same period last year. Jet fuel product supplied is up 6.4% compared to the same four-week period last year.

• The Dollar Index saw steady selling pressure starting at 7am but the DXY is showing some signs of holding the 100 level. This will set up as a key test for support as the 100-sma (99.85) has also been in play and providing support over the past week. It has been a quiet night on the economic front so there has been no notable change to the narrative.
• The euro has been able to rally back for a test of 1.07 but is having difficulty holding the level. This morning Germany held a sale of its 10-year bunds and saw its yields slip 3 bps to 0.33% from the prior month sale. The bid/cover increased to 2.2x from 1.8x suggesting investors were starting to search around for some safe haven plays. 
• The pound has pressed back to the 1.25 level as it sees a bounce back from yesterday morning's slide. Sterling has broken back above the 20-, 50-, and 100-smas (1.2425-1.2450). That range and the 1.27 area will set up as a key bookend for a potential consolidation pattern in the coming weeks. The Brexit Bill is expected to pass its final hurdle in the U.K. Parliament which should clear the way for Article 50 to be involved at the end of March.
• The yen broke below the 112 resistance level as it presses to 11.85. The Bank of Japan released its latest Summary of Opinions and noted a concern over the new Trump Administrations view on foreign trade. This will set the tone for the Friday meeting between PM Abe and President Trump. Bank Lending in the region, the Current Account surplus, and Economic Surveys all fell short of expectations.
• The yuan has held stout in the 6.84 area and has seen little change since China returned from its New Year celebrations. The latest round of economic reports will be released over the next week which will be the focus for markets (BONDX, FOREX). 

• Healthcare: FMI (24.56 +12.12%), MYGN (17.08 +10.91%), PBYI (36.9 +9.01%), GBT (17.88 +6.4%)
• Materials: NGD (3.03 +7.07%), SSRI (12.14 +5.66%)
• Industrials: CSTE (33.8 +12.67%), BCO (48.15 +10.44%)
• Consumer Discretionary: PNRA (229.72 +7.21%)
• Information Technology: COHR (190.04 +17.79%), LITE (45.14 +12.29%), JIVE (4.39 +11.14%), SCSC (44.1 +9.98%), CALD (20.4 +8.22%), MCHP (74.91 +7.59%)MOMO (24.27 +6.59%), MOBL (4.55 +5.81%)
• Financials: WD (35.72 +11.28%), CHI (10.82 +8.31%)
• Consumer Staples: UVV (79.6 +12.99%)

• Healthcare: CHRS (23 -13.7%), GILD (66.34 -9.28%), CRIS (2.59 -5.13%), FGEN (22.8 -4.6%)
• Industrials: WAIR (13.1 -12.67%)
• Consumer Discretionary: GCI (8.89 -4.31%), AMC (31.15 -4.15%), YUMC (26.94 -4.13%)
• Information Technology: ORBK (30.47 -12.27%), AKAM (62.77 -11.74%), NTGR (52.6 -8.28%), ZG (34.33 -7.62%), CMCM (9.56 -7.45%), Z (34.27 -7.05%), CSRA (30.4 -6.61%)
• Financials: AIZ (90.54 -6.66%), CG (16.23 -5.34%), ICE (57.33 -4.34%)
• Energy: PE (30.9 -7.29%), GMLP (23.14 -5.7%)

• Healthcare: GILD (27.15 mln -9.28%)
• Materials: FCX (13.68 mln +0.99%), VALE (10.64 mln +1.19%), GPK (9.6 mln +1.38%)
• Industrials: GE (10.72 mln -0.85%)
• Information Technology: AMD (36.66 mln +3.23%), ZNGA (19.33 mln -3.11%), NUAN (18.32 mln +4.15%), TWTR (11.56 mln +0.55%), MU (9.16 mln -1.42%), FB (8.98 mln +1.67%), CTSH (8.89 mln +3.87%)
• Financials: BAC (48.08 mln -1.4%)
• Energy: PE (21.05 mln -7.29%), CHK (20.02 mln -0.16%), SDRL (10.32 mln +0.54%), ESV (9.98 mln -1.99%), PBR (8.57 mln -0.25%), WFT (8.14 mln +0.51%)
• Telecommunication Services: S (8.28 mln +3.66%)

• Healthcare: CHRS (9.33x -13.7%), FMI (3.09x +12.12%)
• Industrials: CSTE (3.59x +12.67%)
• Consumer Discretionary: AMC (19.68x -4.15%), BWLD (4.45x +1.37%), CTB (3.63x +2.31%), HOME (3.17x -1.46%)
• Information Technology: NUAN (7.01x +4.15%), ORBK (6.52x -12.27%), AKAM (5x -11.74%), IPHI (4.41x +2.15%), GRUB (4.25x -3.17%), COHR (3.8x +17.79%)CSRA (3.54x -6.61%)
• Financials: VMBS (6.68x +0.15%), KBWB (3.46x -1.14%)
• Energy: GMLP (7.35x -5.7%), PE (6.22x -7.29%)
• Telecommunication Services: DCM (3.2x +0%)

• UK's FTSE: + 0.0%
• Germany's DAX: -0.1%
• France's CAC: + 0.3%
• Spain's IBEX: 0.0%
• Portugal's PSI: -0.1%
• Italy's MIB Index: + 0.6%
• Irish Ovrl Index: + 0.1%
• Greece ASE General Index: -2.0%

Rumor Activity was active today

• WSJ reported that Meredith (MDP 60.55 -0.65) and group of investors might move ahead with acquisition of Time (TIME 18.80 +0.15).
• Bloomberg detailed that Barrick Gold (ABX 19.56 +0.23) potential sale of its stake in the Kalgoorlie Super Pit mine has stalled.
• Reuters reported that some acquires might be interested in Tesaro (TSRO 163.21 +20.56).
• NYPost reported that Henkel AG (HENKY 106.34 +2.31) is in talks to acquire Sealed Air (SEE 50.26 +0.76) professional cleaning unit.
• FT detailed that LOreal (LRLCY 37.07 +0.34) might sell The Body Shop.

While many rumors circulate during the day, and the validity of the source of these rumors can be questionable, the speculation may increase volatility in the near term

The broader market is split at the moment, with only the Nasdaq Composite in the green, up now less than a point (+0.00%) to 5674, the Dow Jones Industrial Average for its part declines by 41 (-0.20%) to 20049, and the S&P 500 sheds less than one point (-0.03%) to 2292. Action has come on higher than average volume (NYSE 333 vs. avg. of 321; NASDAQ 895 mln vs. avg. of 771), with decliners outpacing advancers (NYSE 1410/1560, NASDAQ 964/1755) and new highs outpacing new lows (NYSE 57/22, NASDAQ 79/37).

Relative Strength:

US Gasoline-UGA +2.8%, Turkey-TUR +2.3%, Jr. Gold Miners-GDXJ +1.9%, Copper-JJC +1.7%, China Lg. Cap-FXI +1.5%, Silver Miners-SIL +1.5%, Base Metals-DBB +1.4%, Gold Miners-GDX +1.4%, Platinum-PPLT +1.2%, Hong Kong-EWJ +0.9%, Mexico-EWW +0.9%, Indian Rupee-ICN +0.8%, India-INP +0.8%, Emrg. Mkts.-EWX +0.8%.

Relative Weakness:

Greece-GREK -2.5%, Emrg. Mkts. M. East&Africa-GAF -2.2%, Shipping-SEA -1.9%, US Broker/Dealers-IAI -1.7%, Reg. Banking-KRE -1.6%, Banking-KBE -1.6%, US Fincl. Svcs.-IYG -1.2%, Colombia-GXG -1.0%, Infrastructure-GRID -0.9%, Oil Svcs.-OIH -0.9%, Russia-RSX -0.5%, Austria-EWO -0.5%, Spain-EWP -0.4%, S. Korea-EWY -0.3%.

The Industrials sector (XLI) is trading -0.2% lower today, lower than the broader market (SPY +0.0%). In the Industrial Sector, Southwest Air (LUV -0.9%) and Air France-KLM (AFLYY +4.3%) report January preliminary traffic.

Earnings/Guidance

• ABB Ltd (ABB -3.4%) reports Q4 earnings of $0.33 per share, $0.02 worse than the $0.35 consensus; revenues fell 2.7% year/year to $8.99 bln vs the $9.03 bln consensus.
  • Macroeconomic and geopolitical developments are signaling a mixed picture with continued uncertainty. Some macroeconomic signs remain positive in the United States and growth in China is expected to continue. The overall global market remains impacted by modest growth and increased uncertainties, e.g., Brexit in Europe and geopolitical tensions in various parts of the world. Oil prices and foreign exchange translation effects are expected to continue to influence the company's results. With this and the ongoing transformation of ABB, we expect 2017 to be a transitional year.
• Mitsui & Co., Ltd. (MITSY +2.1%) reported fiscal YTD 2016 EPS of JPY 128.50 vs JPY 74.98 last year; revs +13.3% YoY to JPY 3.175 trillion
• Moller Maersk (AMKBY -4.1%) reports Q4 underlying net loss of $63 mln; revs declined 2.6% YoY to $8.89 bln.
  • Co expects an underlying profit above 2016 ($711 mln as reference) in 2017.
  • Gross capital expenditure for 2017 is expected to be $5.5-6.5 bln (up from $5.0 bln this year)
• Alaska Air (ALK +2.5%) reports Q4 earnings of $1.56 per share, excluding non-recurring items, $0.16 better than the consensus of $1.40; revenues rose 10.7% year/year to $1.52 bln vs the $1.45 bln consensus.
  • Q1 guidance: capacity +6%, adj. cost/unit ex-fuel flat, fuel +6%.
  • FY17 capacity +8.5%, cost flat with fuel +7%.
• Jacobs (JEC -3.3%) reports Q1 earnings of $0.68 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.63; revenues fell 10.4% year/year to $2.55 bln vs the $2.63 bln consensus.
  • «The continuing positive trends in unit margins, cash flows, and working capital reflect the cultural change and added financial rigor we are seeing at Jacobs. While our outlook for the year remains unchanged, we are committed to enhancing shareholder value and are very pleased to return excess capital to our shareholders in the form of our inaugural $0.15 quarterly dividend that was recently announced, as well as the continuation of our share repurchase program.»

Additional Industrials reporting earnings/guidance:  VLVLY -1.6% AMKBY -4.1% OC -1.6% GWR -1.1% HCSG -0.1% BCO +9.9% ROLL -1.8% FLOW -3.3% ESE -7.1% WAIR -12.8% LABL -2.2% ARCB -2.9% KFRC +17.2% THR -2.7% POWL -8.6% SPA -1.9% OESX +0.00%

News

• Emerson's (EMR -0.3%) acquisition of Pentair's (PNR %) valves and controls business cleared by the EU.
• Southwest Air (LUV %-0.9) reports January preliminary traffic statistics:
  • Flew 9.4 billion revenue passenger miles (RPMs) in January, +4.6% y/y.
  • Available seat miles (ASMs) increased 6.2% to 12.3 billion in January 2017, compared with January 2016 ASMs of 11.5 billion.
  • The January 2017 load factor was 76.3%, compared with 77.5 percent in January 2016.
• Air France-KLM (AFLYY +4.3%) reports Jan traffic increased 5.3% YoY
  • 6.1 million passengers +4.7%
  • Load Factor 86.0% (+0.7pp)

Broker Research

Upgrades

• UPS (UPS +0.5%) upgraded to Buy from Hold at Aegis Capital.
• USA Truck (USAK +4.8%) upgraded to Mkt Perform from Mkt Underperform at Avondale.
• Emerson (EMR -0.3%) upgraded to Neutral from Sell at UBS and raises their target to $64 from $51.
• kforce.com (KFRC +17.1%) upgraded to Mkt Outperform from Mkt Perform at Avondale.
• ABB Ltd (ABB -3.4%) upgraded to Buy from Neutral at Natixis

Other

• Cowen raises their Spirit Airlines (SAVE -2.9%) tgt to $59 from $58.
• RBC Capital Mkts raises their Ametek (AME +1.1%) tgt to $60 from $57.
• RBC Capital Mkts raises their Atkore (ATKR -0.3%) tgt to $30 from $28.

• Today after the close look for the following companies to report:
  • PRU, SU, WFM, CTL, YUM, PPC, NSIT, FISV, CINF, CAA, GPRE, LGF.A, BGC, EFX, KS, UHAL, AHL, TBI, WGL, TTMI, BHE, ENS, HNI, TRMB, AEL, DNB, FLT, OII, CXW, ENSG, ECHO, CMP, CLW, PRI, CRAY, MTRX, SCSS, FWRD, IRBT, MC, TYL, BLKB, OHI, RLGT, PSEC, CDE, SNCR, REG, PDM, RYN, FORM, CUZ, AOSL, ZEN, MXL, PAYC, FORR, IO, FTK, IMPV, QNST, LPSN, VRNS, QLYS, QDEL, GLUU, LLNW, MB, GBDC, OSUR, PNNT, MTGE, MNR, FLDM, WSTL, GEOS, ALNY, AGTC
    
• Tomorrow before the open look for the following companies to report:
  • CVS, MFC, KO, BAM, CMI, TU, VIAB, TRI, OXY, DTE, COTY, BWA, WLTW, SEE, MAS, THS, NLSN, FAF, DAN, UFS, SON, ROP, GCI, TWTR, VSTO, CLF, BGCP, WOOF, TKR, TDC, MMS, ALLE, STC, LCII, BZH, WMS, PDS, IVC, MNI, KKR, PTEN, VRTU, DNKN, WWE, MPW, MANU, AGI, MDSO, ETM, COR, MPAA, USPH, PRLB, LQDT, TRMR, ARRY, TZOO, WILN, AHH, APPS

• Nasdaq:
  • Highs (66): AKAO, ADBE, ADES, ADI, AMAT, ARIA, AUDC, BEAV, BKMU, BBGI, ITEQ, AVGO, CDW, CAMT, TAST, CRNT, CZWI, CIVB, COHR, EMKR, ECPG, ESPR, FGBI, FUSB, FLL, GLAD, IAC, IIVI, IRTC, SOXX, KLXI, KMDA, KFRC, TREE, LOXO, LITE, MSBF, MBUU, MAR, MASI, MTLS, MXIM, MCHP, NEOT, UEPS, NTCT, NUVA, ON, PNRA, PCYG, PME, PXLW, QQQ, TQQQ, RDWR, SCSC, SHLO, SLAB, SAMG, TSRO, TTMI, TTWO, VIAV, WCST, YHOO, ZLTQ
  • Lows (30): ACET, AOBC, ANGI, AGTC, BSTG, CCIH, CROX, DCTH, DXLG, ECYT, XOG, FCEL, GALE, GIII, GILD, ENT, GPOR, HIMX, LFVN, NK, PLUG, METC, RGSE, SRSC, SHLD, SHOS, SFM, TVIA, TST, XOMA
• NYSE:
  • Highs (38): A, ALK, ARE, RESI, MO, AM, APO, ARNC, ATH, ATHM, BCO, CDI, DPZ, EVG, ENIA, GKOS, HRG, HGV, HMC, HBM, IPHI, ITUB, KKR, MXL, MC, MPSX, RAI, ROL, SWX, SCM, TSU, EMF, THO, TCI, UVV, VNTV, WD, WYN
  • Lows (21): ADPT, EAT, CGG, TCS, DECK, DIN, FIT, FRO, GNC, FRAC, KEP, LN, OXM, RRTS, STNG, SIG, SSI, TPX, TEVA, TDW, VFC
• NYSE MKT:
  • Highs (2): CET, INTT
  • Lows (1): VII

• Healthcare: FMI (24.56 +12.12%), MYGN (17.08 +10.91%), PBYI (36.9 +9.01%), GBT (17.88 +6.4%)
• Materials: NGD (3.03 +7.07%), SSRI (12.14 +5.66%)
• Industrials: CSTE (33.8 +12.67%), BCO (48.15 +10.44%)
• Consumer Discretionary: PNRA (229.72 +7.21%)
• Information Technology: COHR (190.04 +17.79%), LITE (45.14 +12.29%), JIVE (4.39 +11.14%), SCSC (44.1 +9.98%), CALD (20.4 +8.22%), MCHP (74.91 +7.59%)MOMO (24.27 +6.59%), MOBL (4.55 +5.81%)
• Financials: WD (35.72 +11.28%), CHI (10.82 +8.31%)
• Consumer Staples: UVV (79.6 +12.99%)

• Healthcare: CHRS (23 -13.7%), GILD (66.34 -9.28%), CRIS (2.59 -5.13%), FGEN (22.8 -4.6%)
• Industrials: WAIR (13.1 -12.67%)
• Consumer Discretionary: GCI (8.89 -4.31%), AMC (31.15 -4.15%), YUMC (26.94 -4.13%)
• Information Technology: ORBK (30.47 -12.27%), AKAM (62.77 -11.74%), NTGR (52.6 -8.28%), ZG (34.33 -7.62%), CMCM (9.56 -7.45%), Z (34.27 -7.05%), CSRA (30.4 -6.61%)
• Financials: AIZ (90.54 -6.66%), CG (16.23 -5.34%), ICE (57.33 -4.34%)
• Energy: PE (30.9 -7.29%), GMLP (23.14 -5.7%)