Америка сегодня. Данные по ИПЦ и промпроизводству

Asian MarketsNikkei...19365...+63.20...+0.30%.  Hang Seng...22935...+190.50...+0.80%.

 European MarketsFTSE...7291.98...+16.50...+0.20%.  DAX...11622.62...+39.30...+0.30%.

 SC Industrial beats by $0.02, reports revs in-line; guides Q2 EPS above consensus, revs in-line  (92.17)

• Reports Q1 (Nov) earnings of $0.95 per share, $0.02 better than the Capital IQ Consensus of $0.93; revenues fell 2.9% year/year to $686.3 mln vs the $685.46 mln Capital IQ Consensus.
  • Gross margin of 45.0% reflects continued stabilization in a 'challenging' pricing environment.
• Co issues guidance for Q2, sees EPS of $0.86-0.90 vs. $0.86 Capital IQ Consensus Estimate; sees Q2 revs of $688-701 mln vs. $679.02 mln Capital IQ Consensus Estimate.
• «We have operated in the midst of a prolonged industrial recession, one that was particularly acute in our primary end markets of metalworking manufacturing. We are, however, seeing signs of greater optimism. At present, it appears that there is a leveling in manufacturing occurring and, in December, we saw greater spending on categories that are indicative of customer optimism. We are certainly more positive than even a few short months ago. Even so, we would need to see sustained increases in order activity before we declare that the environment has turned.»

 First Industrial Realty downgraded to Neutral at Robert W. Baird; tgt lowered to $28  (27.75)Robert W. Baird downgrades FR to Neutral from Outperform and lowers their tgt to $28 from $29 largely as a function of valuation. Firm's NAVs has largely come down across their coverage as a result of increased cap rates. The stock has traded nearer firm's new target price, and thwey believe the shares are fully valued at this point.

 Alibaba initiated with a Outperform at Bernstein; tgt $117  (96.75)

 Ctrip initiated with a Mkt Perform at Bernstein; tgt $41  (43.71)

 Baidu.com initiated with a Underperform at Bernstein; tgt $150  (180.31)

 Netease.com initiated with a Underperform at Bernstein; tgt $200  (239.98)

 ignet Jewelers lowers Q4 guidance; holiday comps fell 4.6%  (87.46)

• Lowers Q4 adj. EPS to $4.00-4.05 from $4.00-4.20 vs $4.05 Capital IQ Consensus; lowers Q4 comps to (4.3-4.8%) from (2-4%).
• Nine week holiday comps fell 4.6% vs. +5.1% last year.
  • Merchandise categories and collections were broadly lower most notably in the mall and e-commerce selling channels, while select merchandise and other selling channels performed relatively well such as diamond fashion jewelry, bracelets, earrings, Ever Us, Vera Wang Love, and the off-mall and kiosk selling channels. Signet's e-commerce sales in the holiday season were $142.5 million, down $3.5 million or 2.4% compared to $146.0 million in the prior year.
• «Signet's disappointing holiday results were driven principally by underperformance in its Sterling division e-commerce business. A preliminary view of market data suggests that the jewelry category was broadly flat to modestly down with in-store sales down mid-single-digits and e-commerce sales up double-digits. Signet's in-store results were in-line with the jewelry market, but technical performance issues in Sterling's e-commerce platform largely led to Signet's lower-than-expected results. Sterling's challenges in its e-commerce platform were due to recent enhancements that did not perform as expected when exposed to high holiday volume. We are investing and directing more resources to improve the functioning of the platform and the overall customer digital journey. „Select categories, collections, and other selling channels performed relatively well.“

 Golden Star Resources reports Q4 gold production of 53,403 ounces; guides for FY 17 gold production of 255k-280k oz, +31-44% Y/Y  (0.81)

• Gold production of 194,054 ounces in 2016, in the top half of the guidance range of 180,000 to 205,000 ounces
• Gold production by asset in 2016, as follows: 
  
  • Wassa Main Pit: 93,319 ounces 
  • Wassa Underground Gold Mine: 11,062 ounces 
  • Prestea Open Pits: 89,673 ounces
• Wassa Underground's mining rates accelerated strongly during the quarter, culminating in the declaration of commercial production on January 1, 2017
• Cash and cash equivalents balance of $21.7 million as of December 31, 2016, which does not include the receipt of the $10 million scheduled advance payment on January 3, 2017 from RGLD Gold
• FY 17 guidance of: 
  • 255,000-280,000 ounces of gold production 
  • $780-$860 per ounce cash operating cost1
  • $970-$1,070 per ounce All-In Sustaining Cost

 Ethan Allen sees Q2 EPS $0.38-0.39 vs $0.59 Capital IQ Consensus Estimate; revs $194.7 mln vs $213.67 mln Capital IQ Consensus Estimate  (34.95)

 On The Wires

• Albemarle Corporation (ALB) announced that it intends to redeem all of its outstanding 3.000% Senior Notes due 2019 (CUSIP No. 012725AB3, ISIN No. US012725AB30) issued by it on February 10, 2017. The Notes will be redeemed at a redemption price equal to the greater of (1) 100% of the principal amount of the Notes and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes from the Redemption Date through the Par Call Date, as defined in the Notes, in each case discounted to the date of redemption on a semi-annual basis at the Treasury Rate plus 25 basis points, plus in each case, accrued and unpaid interest on the Notes redeemed to, but not including, the Redemption Date.
• CytoDyn Inc. (CYDY) announced the Company filed a request for Breakthrough Therapy Designation with the FDA for PRO 140 as a treatment for HIV-1 infection in treatment-experienced patients with virologic failure. Based on results from four completed and ongoing clinical trials, the Company believes the PRO 140 treatment option addresses the unmet medical need for therapy options for HIV-1 infected patients with uncontrolled viral load, despite conventional Antiretroviral Therapy.
• WEX (WEX) announced that it has signed a new agreement with Enterprise Fleet Management in Canada. The partnership supports Enterprise's growth in the Canadian market through WEX's Canadian fleet capabilities.
• B Communications Ltd. (BCOM) announced a private placement of NIS 118,000,000 par value of its Series C Debentures to Israeli institutional investors for an aggregate consideration of approximately NIS 118 million (approximately US$ 31 million).

 Upland Software acquires Omtool for $19.2 million (net of cash acquired), expects total revenue and Adjusted EBITDA for the quarter ended December 31, 2016 to be at the upper end of previously-announced guidance ranges.  (9.30)

«Q4 came in strong with continued success in expanding our customer relationships allowing us to affirm our healthy Q4 outlook and to provide record Q1 guidance that reflects both the Omtool acquisition and the continued growth in our core business,» said Mr. McDonald. «Finally, we are raising our long term Adjusted EBITDA margin target to 35% to reflect the increased customer loyalty and operating efficiency we are seeing as we scale.»

• The purchase price paid for Omtool was $19.2 million (net of cash acquired), within Upland's target range of 5-8x pro forma Adjusted EBITDA.
  • Upland expects the acquisition to generate approximately $11 million in revenue in 2017, subject to reductions for a deferred revenue discount as a result of GAAP purchase accounting.
  • The transaction will be immediately accretive to Upland's Adjusted EBITDA per share.
• In addition, for the quarter ending March 31, 2017, Upland expects reported total revenue to be in the range of $20.0-20.8 mln including recurring revenue in the range of $17.5 million to $18.1 million vs. the $19.09 mln Capital IQ Consensus.  
• Adjusted EBITDA is expected to be in the range of $5.0 million to $5.5 million, for an Adjusted EBITDA margin of 26% at the mid-point, representing growth of 162% at the mid-point over the quarter ended March 31, 2016.
• Upland raised its long term Adjusted EBITDA margin target from 30% to 35%.

 Fortuna Silver Mines announces FY16 total production of 7.4 mln oz of silver & 46.6 k oz of gold; issues guidance for FY17  (6.54)

• FY16 production highlights:
  • Silver and gold production were 5% and 9% respectively above 2016 guidance.
  • Silver production of 7,380,217 ounces; 11% increase over 2015.
  • Gold production of 46,551 oz; 17% increase over 2015.
  • Zinc production of 43,204,154 pounds; 21% increase over 2015.
  • Lead production of 32,673,479 pounds; 37% increase over 2015.
• «In 2017, our expansion plans are going to be underpinned by our solid low-cost production base providing financial flexibility to execute engineering and development plans for Lindero and continue exploring for new compelling precious metal opportunities in the Americas and abroad.»
• FY17 guidance:
  • 2017 silver equivalent production guidance of 11.2 mln oz.
  • 2017 consolidated AISC of $9.8/oz Ag.

 Asian Markets Close: Nikkei +0.3%, Hang Seng +0.8%, Shanghai -0.8%

Markets in the Asia-Pacific region ended Wednesday on a mixed note, but the trading day was fairly quiet. The World Bank did lower its GDP growth outlook for 2017 and 2018, but the adjustment only reduced the previous forecast by 10 basis points. The forecast for 2017 was lowered to 2.7% from 2.8%. The U.S. growth forecast for 2017 was maintained at 2.2% due to the expected impact of fiscal stimulus under the new administration.

• In economic data:
  • Japan's November Leading Index 102.7 (expected 102.6; previous 100.8). November Coincident Indicator +1.6% month-over-month (last 1.0%)
  • South Korea's December Unemployment Rate declined to 3.4% from 3.6%. December Import Price Index +9.2% year-over-year (last 3.6%) and December Export Price Index +6.3% year-over-year (last 3.5%)

---Equity Markets---

• Japan's Nikkei added 0.3%. Growth-sensitive names like SUMCO, Nippon Sheet Glass, Kobe Steel, Sumitomo Metal Mining, Japan Steel Works, Mitsubishi Materials, and Ebara posted gains between 2.0% and 4.4%.
• Hong Kong's Hang Seng climbed 0.8% amid strength in property names and financials. Sino Land, New World Development, Hang Lung Properties, Cheung Kong Property Holdings, China Overseas, Bank of China, Ping An Insurance, and HSBC added between 0.8% and 3.8%. China Unicom Hong Kong lagged for the second day in a row, falling 2.0%.
• China's Shanghai Composite lost 0.8%. Shang Gong Group, Tianjin Global Magnetic Card, Wuhan Hanshang, and Shen Ma Industry registered losses between 5.4% and 6.8%.
• India's Sensex added 0.9% with help from most components. Coal India spiked 5.4% while other growth-sensitive names like Tata Steel, Larsen & Toubro, Power Grid, and Mahindra&Mahindra rallied between 1.3% and 4.0%. Bajaj Auto was the weakest performer, falling 0.9%.

---FX---

• USDJPY +0.4% to 116.24
• USDCNY +0.2% to 6.9341
• USDINR UNCH at 68.350

 Edwards Lifesciences among stocks with favorable commentary on Tuesday's Mad Money  (99.14)

Stocks with favorable mention: ADI, AMD, AVGO, BHP, CAT, CMG, CMI, CWH, EW, FRT, HD, MU, NUE, SLB, TXN, WDC

Stocks with unfavorable mention: AA, ESV, KIM, NVDA, SWKS, TEVA, TWOU, USG, WOR, WTW

 European Markets Update: DAX +0.4%, CAC +0.1%, FTSE +0.1%

Major European indices trade near their flat lines with Germany's DAX (+0.4%) showing relative strength while Italy's MIB (-0.3%) underperforms. Although equity markets have maintained narrow ranges so far, the euro has retreated steadily, falling 0.5% against the dollar to 1.0508. The decline leaves the single currency in the bottom half of its trading range that dates back to early December. The British pound has also retreated against the dollar, surrendering 0.5% to 1.2121, despite above-consensus economic data. On balance, economic data received since the Brexit vote has been strong relative to expectations.

• In economic data:
  • UK's November Industrial Production +2.1% month-over-month (expected 0.8%; last -1.1%); +2.0% year-over-year (consensus 0.6%; previous -0.9%). November Manufacturing Production +1.3% month-over-month (expected 0.5%; last -1.0%); +1.2% year-over-year (consensus 0.4%; last -0.5%). November Construction Output -0.2% month-over-month (expected 0.3%; last -0.6%); +1.5% year-over-year (consensus 2.0%; previous 0.7%). November trade deficit widened to GBP12.16 billion from GBP9.89 billion (expected deficit of GBP11.20 billion)
  • Spain's November Industrial Production +3.2% year-over-year (consensus 1.0%; last 0.6%)

---Equity Markets---

• Germany's DAX is higher by 0.4% with heavyweights Volkswagen, Deutsche Bank, Daimler, and Merck among the leaders. The four names are up between 1.0% and 3.7%. On the downside, Siemens and BMW are down 1.0% and 0.2%, respectively.
• France's CAC has added 0.1% amid relative strength in automakers. Peugeot and Renault hold respective gains of 3.1% and 1.0% while Michelin has added 1.1%. Financials trade in the red with BNP Paribas, Societe Generale, and Credit Agricole down between 0.4% and 0.7%.
• UK's FTSE is higher by 0.1% thanks to gains in consumer names. Dixons Carphone, Sainsbury, Marks & Spencer, and Unilever show gains between 0.4% and 3.6%. Select financials lag with RBS, Barclays, Standard Life, and RSA Insurance down between 1.0% and 1.8%.
• Italy's MIB has shed 0.3%. Financials like Banco Bpm, Banca Pop Emilia Romagna, Unicredit, Mediobanca, Intesa Sanpaolo, and UBI Banca are down between 0.6% and 2.7%.

 Early premarket gappersGapping up: BIOC +36.5%, ENPH +19.5%, ICHR +15.4%, AKAO +13.1%, WBGS +9.3%, CTSO +6.3%, KERX +4.8%, CUR +4%, RAD +3.4%, UAL +2.8%, PTN +2.1%, DSCI +2%, MRK +1.9%, DE +1.2%, DB +1.1%, GFI +0.9%, SYK +0.8%, MX +0.8%, VRX +0.6%

Gapping down: NVDQ -16.3%, ETRM -9.7%, SGNL -8.5%, PFGC -5.8%, ADM -5.6%, BRG -5.5%, GNVC -5.5%, TERP -4.8%, SIG -4.5%, PE -3.8%, CTIC -3.6%, BMY -3.3%, HIMX -3%, VECO -3%, JNPR -2.5%, BBVA -2.2%, RBS -2%, BWA -1.9%, BCS-1.8%, LMNR -1.6%, AZN -1.5%, SHPG -1.3%, F -0.8%, GST -0.7%

 Overnight Treasury Summary

Treasuries Tick Higher as Dollar Jumps

• U.S. Treasuries are moving higher early this morning as the U.S. Dollar Index adds 0.34 to 102.36, seemingly drawing a line under the index's consolidation that took it down to 101.40 last Thursday. European equities are trading with a positive bias after the U.K., Spain, and Denmark posted strong industrial production growth for November. Manufacturing sector purchasing managers' indices for the U.K. and the eurozone suggest that December will also be a good month for goods-producing businesses. Some of the pressure on eurozone periphery debt has subsided this morning and Portugal's 10-year PGB yield is down by eight basis points to 3.97% after trading up to 4.13% earlier in the session. The only two notable events for the U.S. session are the crude stockpile data (10:30 ET) and the $20 bln 10-year Treasury auction (13:00 ET). The S&P 500 is set to open down 0.07% to 2,267.2 and WTI crude is up by 0.31% at $50.98/bbl. Gold is up 0.30% to $1,189.1/troy oz. 
• Yield Check:
  
  • 2-yr: -1 bp to 1.18%
  • 5-yr: -1 bp to 1.87%
  • 10-yr: unch at 2.38%
  • 30-yr: -1 bp to 2.96%

• International News:
  
  • Korea's unemployment rate fell to 3.4% in December from 3.6% in November
  • Japan's foreign reserves edged lower to $1,216.9 tln in December from $1,219.3 tln in November
  • Japan's leading index rose more than expected in November to 102.7 from a prior reading of 100.8
    
    • The coincident index increased to 115.1 from 113.5
  • In Spain, industrial production jumped by 3.2% y/y in November, beating both economists' estimates and October's 0.6% growth
  • In the U.K., manufacturing production rose by a better-than-expected 1.3% m/m in November (+1.2% y/y), exceeding expectations and reversing October's 1.0% slide
    
    • Industrial production, which adds in mining and utility production, was up 2.1% m/m in November (2.0% y/y), also beating expectations and October's change (-1.1% m/m)
    • Separately, construction output grew 1.5% y/y in November (prior chanage was 0.7%)
    • The U.K.'s trade deficit widened more than expected to GBP12.16 bln in November from GBP9.89 bln in October
  • Brazil's consumer price index was up 6.29% y/y in December, missing forecasts and slowing markedly from November's 6.99% rate

• Data out Wednesday:
  
  • MBA Mortgage Index for the week ending 1/7: Actual 5.8% w/w, Prior 0.1% w/w
    
    • The average 30-year fixed mortgage rate was 4.32%, down from 4.39% in the prior week
  • Crude Inventories for the week ending 1/7 (10:30 ET)
• Treasury Auction:
  
  • $20 bln 10-year Treasury reopening (results at 13:00 ET)

 Overseas Research Calls

Upgrades: 

• L'Oreal (LRLCY) upgraded to Buy from Neutral at UBS
• ProSiebenSat.1 (PBSFF) upgraded to Buy from Hold at Berenberg
• Wolters Kluwer N.V. (WTKWY) upgraded to Hold from Sell at Berenberg
• RWE AG (RWEOY) upgraded to Equal Weight from Underweight at Barclays
• Burberry plc (BURBY) upgraded to Overweight from Equal Weight at Barclays
• BT Group plc (BT) upgraded to Overweight from Equal Weight at Morgan Stanley
• ASOS (ASOMF) upgraded to Equal Weight from Underweight at Morgan Stanley
• Eni S.p.A. (E) upgraded to Neutral from Underperform at Exane BNP Paribas

Downgrades: 

• Thomas Cook (TCKGY) downgraded to Neutral from Outperform at Credit Suisse
• Hugo Boss AG (BOSSY) downgraded to Hold from Buy at HSBC
• DNB ASA (DNBHF) downgraded to Hold from Buy at HSBC
• UBM plc (UBMOF) downgraded to Sell from Hold at Berenberg
• Beiersdorf AG (BDRFF) downgraded to Sell from Neutral at UBS
• Reckitt Benckiser (RBGLY) downgraded to Neutral from Buy at UBS
• Henkel AG (HENKY) downgraded to Sell from Neutral at UBS
• easyJet (ESYJY) downgraded to Underweight from Neutral at JP Morgan
• Siemens AG (SIEGY) downgraded to Sell at Goldman

Miscellaneous: 

• Tencent (TCEHY) initiated with a Market Perform at Bernstein
• YPF Soc. Anonima (YPF) initiated with an Outperform at Raymond James
• Volvo (VLVLY) initiated with an Underweight at Barclays
• LATAM Airlines (LFL) resumed with a Neutral at JP Morgan

 On The Wires

• Amazon.com (AMZN) and Chase (JPM) introduced the new Amazon Prime Rewards Visa Signature Card, the only card that offers 5% Back on all Amazon.com purchases and rewards everywhere else you shop, including 2% Back at restaurants, gas stations and drugstores, and 1% Back on every other purchase, available exclusively for eligible Prime members.
• Viacom Inc. (VIAB) announced the appointment of David Lynn as President and CEO of Viacom International Media Networks (VIMN).

 S&P futures vs fair value: -1.80. Nasdaq futures vs fair value: +0.10.

Equity futures point to a slightly lower open on Wednesday morning as the S&P 500 futures trade two points below fair value. Global markets are mixed with Asia closing on a mostly higher note while European indices hover near their flat lines.   

Crude oil is up for the first time in three days amid reports that Saudi Arabia, the world's top exporter, plans to cut supply to Asia. The commodity is higher by 0.4%, trading at $51.03/bbl.

U.S. Treasuries are flat this morning amid an uptick in the U.S. dollar. The 10-yr yield remains unchanged at 2.38%, while the U.S. Dollar Index (102.39, +0.38) is up 0.4%.

Today's only economic data was the MBA Mortgage Index, which crossed the wires at 7:00 am ET this morning. The index came in at 5.8%.

In U.S. corporate news of note:

• Tesla Motors (TSLA 229.00, -0.87): -0.4% after the company named Apple (AAPL 118.75, -0.36) engineer Chris Lattner vice president of autopilot software.
• Ford Motor (F 12.72, -0.13): -1.0% despite reaffirming positive guidance for 2017.
• Citigroup (C 59.80, -0.43): -0.7% after the stock was downgraded to 'Sell' at UBS. 

Reviewing overnight developments:

• Markets in the Asia-Pacific region ended Wednesday on a mixed note, but the trading day was fairly quiet. Japan's Nikkei +0.3%, Hong Kong's Hang Seng +0.8%, China's Shanghai Composite -0.8%, India's Sensex +0.9%.
  • In economic data:
    • Japan's November Leading Index 102.7 (expected 102.6; previous 100.8). November Coincident Indicator +1.6% month-over-month (last 1.0%)
    • South Korea's December Unemployment Rate declined to 3.4% from 3.6%. December Import Price Index +9.2% year-over-year (last 3.6%) and December Export Price Index +6.3% year-over-year (last 3.5%)
  • In news:
    • The World Bank lowered its GDP growth outlook for 2017 and 2018, but the adjustment only reduced the previous forecast by 10 basis points. The forecast for 2017 was lowered to 2.7% from 2.8%. The U.S. growth forecast for 2017 was maintained at 2.2% due to the expected impact of fiscal stimulus under the new administration.

• Major European indices trade near their flat lines with Germany's DAX showing relative strength while Italy's MIB underperforms. Germany's DAX +0.2%, France's CAC unch, UK's FTSE unch, Italy's MIB -0.4%.
  • In economic data:
    • UK's November Industrial Production +2.1% month-over-month (expected 0.8%; last -1.1%); +2.0% year-over-year (consensus 0.6%; previous -0.9%). November Manufacturing Production +1.3% month-over-month (expected 0.5%; last -1.0%); +1.2% year-over-year (consensus 0.4%; last -0.5%). November Construction Output -0.2% month-over-month (expected 0.3%; last -0.6%); +1.5% year-over-year (consensus 2.0%; previous 0.7%). November trade deficit widened to GBP12.16 billion from GBP9.89 billion (expected deficit of GBP11.20 billion)
    • Spain's November Industrial Production +3.2% year-over-year (consensus 1.0%; last 0.6%)
  • In news:
    • Although equity markets have maintained narrow ranges so far, the euro has retreated steadily, falling 0.4% against the dollar to 1.0514. The decline leaves the single currency in the bottom half of its trading range that dates back to early December.
    • The British pound has also retreated against the dollar, surrendering 0.5% to 1.2121, despite above-consensus economic data. On balance, economic data received since the Brexit vote has been strong relative to expectations.

 RBC highlights bank picks ahead of earnings season  (43.74)RBC believes investors should continue to own three types of bank stocks: «Return of Capital (RC) Stocks», «Risk On (RO) Stocks», and «Multiple Revaluation (MR) Stocks.» RC stocks include MTB, PNC, and STI; RO stocks include BAC, BPOP, C, JPM, and KEY; and MR stocks include BBT and PNC.

 Superior Ind reaffirms FY16 guidance & guides FY17 sales in-line in slides ahead of the Deutsche Bank Global Auto Industry Conference presentation  (26.00)

Reaffirms FY16 guidance:

• Continues to remain 'comfortable' with:
  • Adj EBITDA between $80-88 mln; sees net sales between $715-725 mln, vs. the $721.68 Capital IQ Consensus
  • FY16 unit volume (000s): 12,031-12,143
  • Capex of ~$40 mln
  • Sees dividend payments of about $20 mln

Issues FY17 guidance:

• Adj EBITDA between $97-105 mln; sees net sales between $730-750 mln, vs. the $739.46 mln Capital IQ Consensus.
• FY17 unit volume (000s): 12,000-12,250
• Capex of ~$50 mln
• Sees dividend payments of about $18 mln

 On The Wires

• IBM Watson Health (IBM) has signed a research initiative with the FDA aimed at defining a secure, efficient and scalable exchange of health data using blockchain technology. IBM and the FDA will explore the exchange of owner mediated data from several sources, such as Electronic Medical Records, clinical trials, genomic data, and health data from mobile devices, wearables and the «Internet of Things.» The initial focus will be on oncology-related data.
• Bird Rock Bio announced that it has received approval for the initiation of a two-part Phase 1 clinical trial for namacizumab, a novel therapeutic antibody to the cannabinoid 1 receptor. In addition, Bird Rock Bio has entered into an agreement with GE Healthcare (GE) for process development, formulation, and manufacture of namacizumab in preparation for Phase 2 studies. Furthermore, the Phase 1 trial, process development, and Phase 2 preparation will be funded under a collaboration and option agreement with Janssen Pharmaceuticals (JNJ). 
• The J. M. Smucker Company (SJM) announced an increase in the list price for the majority of its packaged coffee products sold in the United States, primarily consisting of items sold under the Folgers, Dunkin' Donuts, and Café Bustelo brand names. Prices increased an average of six percent on impacted items in response to sustained increases in green coffee costs. The Company's K-Cup pods were excluded from the price increase. 
• Subsidiaries of Imperial Brands PLC (IMBBY) and China Tobacco have established a dynamic long-term Joint Venture business which will look to develop a variety of growth opportunities in China and international markets. Global Horizon Ventures Limited is initially focused on: leveraging the expertise of China's largest tobacco company, Yunnan Tobacco, to drive the sustainable growth of Imperial's Growth Brands West and Davidoff in China; and maximising the potential of two Yunnan brands, Jadé and Horizon, in markets outside of China.
• At its board meeting, SNCF selected the Alstom (ALSMY)-Bombardier (BDBRF) consortium to renew the trains on lines D and E of the Île-de-France network. This contract for 255 trains (130 for the RER D and 125 for the RER E), worth an estimated 3.75 billion euros, is the largest contract ever financed by STIF.

 Gapping up

Gapping up 
In reaction to strong earnings/guidance:

• ICHR +9%, (sees Q4 revs $131 mln vs $117.90 mln Capital IQ Consensus Estimate, expects Q1 sales to be higher than Q4)
• MSM +2.5%, DE +1.2%, (light volume; releases December retail sales update)
• MX +0.8%, (MagnaChip Semi reports prelim Q4 sales at high end of guidance / above consensus; announces proposed $65 mln private offering of exchangeable senior notes and stock repurchase)
• VRX +0.5%, (reiterates FY16 guidance)

M&A news:

• DSCI +41% (to be acquired by Integra LifeSciences (IART) for $7.00 per share)
• RAD +4% (NY Post discusses that regulators might complete review of Walgreens (WBA) and Rite Aide (RAD) merger before President Obama leaves office), ;

Other news:

• BIOC +43.1% (continued strength)
• ENPH +22.1% (announces a $10 mln private placement of its common stock to T.J. Rodgers and John Doerr, chairman of Kleiner Perkins Caulfield & Byers)
• TGTX +10% (completion of enrollment in part 1 of its phase II study of TG-1101)
• AKAO +9.3% (Baker Bros discloses 13.1% passive stake)
• SGMO +6.8% (granted orphan designation by the FDA for its compound for the treatment of mucopolysaccharidosis type I )
• CTSO +6.3% (light volume; CytoSorbents and the U.S. Air Force determine to close the Company-sponsored, 30 patient, single site, randomized controlled human pilot study of the CytoSorb product to evaluate patients with severe trauma and rhabdomyolysis)
• ARLZ +4.2% (USPTO has issued patent covering Yosprala which will expire in late 2032 with possible patent term adjustment into early 2033)
• MRK +3.1% (receives FDA acceptance of supplemental biologics license application for Keytruda in combo with chemotherapy for first-line treatment of metastatic non-squamous non-small cell lung cancer)
• RDHL +2.9% (RHB-104 has been granted QIDP designation by the FDA for the treatment of Nontuberculous Mycobacteria infection)
• UAL +2.8% (expects Q416 consolidated passenger unit rev to decline 1.25-1.75% (prior 3-4%) compared to Q416)
• GST +2.1% (declares special cash dividends on 8.625% Series A Preferred Stock and 10.75% Series B Preferred Stock; enters into related amendment of credit agreement)
• AAL +1.6% (reports December traffic, raises Q4 TRASM, pre-tax margin; RPMs -0.8% y/y)
• MYL +1% (FDA has accepted Mylan's biologics license application for MYL-1401O, a proposed biosimilar trastuzumab)

Analyst comments:

• KERX +4.8% (upgraded to Neutral from Sell at Citigroup)
• BT +2.7% (upgraded to Overweight from Equal Weight at Morgan Stanley)
• ESV +1.7% (upgraded to Buy from Neutral at Citigroup)
• WRD +1.7% (initiated with a Strong Buy at Raymond James)
• PANW +0.8% (initiated with Outperform ratings at Wells Fargo)

 Great Panther Silver announces Q4 production highlights; co expects 2017 production level of 4.0-4.1 million Ag eq oz (at a 70:1 ratio) from its Mexico operations  (1.87)

2016 Production Highlights (Compared to Full Year 2015)

• Consolidated metal production -7% to 3,884,960 silver equivalent ounces 
• Silver production -14% to 2,047,260 silver ounces 
• Gold production +2% to 22,238 gold ounces 
• Ore processed was steady at 376,739 tonnes

4Q16 Production Highlights (Compared to Fourth Quarter 2015)

• Consolidated metal production decreased 12% to 883,772 Ag eq oz 
• Silver production decreased 17% to 460,571 Ag oz 
• Gold production decreased 8% to 5,206 Au oz 
• Ore processed decreased 2%, with 92,869 tonnes milled

 Gapping down

Gapping down
In reaction to disappointing earnings/guidance:

• NVDQ -17.3%, (sees Q4 rev below consensus; sees FY17 rev below consensus), SVU -8.1%, SIG -4.6%, BWA -1.9%, LMNR -1.6%

M&A news:

• ADM -5.6% (to acquire Crosswind Industries; terms not disclosed)

Select pharma related names showing weakness:

• BMY -3.6%, AZN -1.6%, SHPG -1.1%

Other news:

• SGNL -12.8% (pulling back following recent strength)
• ETRM -11.2% (pulling back following recent strength)
• GNVC -7.4% (pulling back following recent strength)
• PTN -5.3% (Palatin Technologies to hold call following closing of licensing agreement with AMAG Pharmaceuticals for North American rights to Rekynda)
• PFGC -5% (prices 10 mln common stock offering by certain of its stockholders, including affiliates of The Blackstone Group (BX) at $22.85/share )
• BRG -4.7% (commenced a public offering of 4,000,000 shares of its Class A common stock)
• TERP -4.5% (Brookfield Asset Management affirms 12.12% active stake, discloses the submission of alternative proposals to the company's advisors with respect to a potential transaction involving the company and/or TerraForm Global)
• PE -2.9% (announces Midland Basin and Delaware Basin acquisitions and introduces 2017 capital program and operating guidance; expects ~60% annual production growth in 2017; commenced an underwritten public offering of 20,000,000 shares of Class A common stock), .

Analyst comments:

• HIMX -2.5% (downgraded to Neutral from Buy at ROTH Capital)
• WUBA -1.6% (initiated with a Underperform at Bernstein)
• JD -1% (initiated with an Underperform at Bernstein )
• C -0.8% (downgraded to Sell at UBS)
• BIDU -0.7% (initiated with a Underperform at Bernstein)

 European Summary

European Bonds Rally

• European sovereign debt yields are broadly lower this morning although the economic data out of Europe continues to be strong. The U.K.'s industrial production rebounded in November and the weak sterling should support continued strength there. Some of the pressure is coming off of Portugal today, whose bond prices have been indicating a significant chance for debt restructuring in recent months. The 10-year PGB yield touched 4.13% this morning but subsequently reversed sharply lower. Germany held an auction for EUR5.00 bln of 10-year Bunds which was met with somewhat tepid demand. The bid-to-cover ratio declined from the last auction and the finance ministry retained 19% of the debt, down from just 16% at the last auction. The European Central Bank's Governing Council meets next Thursday
• Italy's constitutional court rejected one of three referendum requests in Prime Minister Matteo Renzi's jobs act. Analysts say that this makes an election in Italy more likely this year
  
  • Background from Business Insider
• The Turkish lira hit a fresh record low of 3.88 to the dollar today
• New Issuance:
  
  • Germany's finanzagentur sold EUR4.02 bln of 10-year Bunds with an average yield of 0.36%. The bid-to-cover ratio was 1.78, down from 2.03 at the previous auction
  • Italy's Dipartimento del Tesoro sold EUR7.0 bln of 12-month BOTs with an average yield of -0.250% with a bid-to-cover ratio of 1.66
• European Economic Data:
  
  • In Spain, industrial production jumped by 3.2% y/y in November, beating both economists' estimates and October's 0.6% growth
  • In Denmark, industrial production jumped by 11.4% m/m in November after growing by 5.1% in October
  • Greek CPI growth was 1.0% m/m in December (0.0% y/y) while Portugal's was 0.0% m/m (0.9% y/y)
  • In the U.K., manufacturing production rose by a better-than-expected 1.3% m/m in November (+1.2% y/y), exceeding expectations and reversing October's 1.0% slide
    
    • Industrial production, which adds in mining and utility production, was up 2.1% m/m in November (2.0% y/y), also beating expectations and October's change (-1.1% m/m)
  • Separately, construction output grew 1.5% y/y in November (prior chanage was 0.7%)
  • The U.K.'s trade deficit widened more than expected to GBP12.16 bln in November from GBP9.89 bln in October
• Yield Check:
  
  • France, 10-yr OAT: -4 bps to 0.77%
  • Germany, 10-yr Bund: -3 bps to 0.26% 
  • Greece, 10-yr note: +4 bps to 6.85%
  • Italy, 10-yr BTP: -6 bps to 1.85%
  • Portugal, 10-yr PGB: -13 bps to 3.92%
  • Spain, 10-yr ODE: -5 bps to 1.40%
  • U.K., 10-yr Gilt: -3 bps to 1.43%