Америка сегодня. Индекс производственной активности.

Blackhawk Network downgraded to Neutral from Buy at Citigroup  (37.45)

 Navient downgraded to Neutral from Overweight at JP Morgan  (16.85)

 TPI Composites initiated with a Buy at ROTH Capital; tgt $23  (17.48)

 European Summary

European Bonds Rally

• European sovereign debt yields are moving lower this morning as U.K. Prime Minister May's speech about her Brexit strategy has sent the British pound to its largest gain since 2008 (+2.23% to $1.2320). Consumer price inflation in the U.K. ran hotter than expected in December (1.6% y/y) and it appears that the U.K.'s departure from the EU's single market has already been priced in by cable traders. In Germany, the ZEW Insitute's index of economic sentiment missed forecasts but the Current Conditions Index rose more than expected. The European Central Bank's Governing Council announces its next rate decision on Thursday. The council is widely expected to maintain monetary policy on its current course
• ECB Governing Council member Ewald Nowotny said today that rising energy prices may eventually move core inflation higher in the eurozone
• New Issuance:
  
  • Germany sold EUR4.03 bln of 2-year Schatz at an average yield of -0.75% with a bid-to-cover ratio of 1.26
    
    • December 7's Schatz auction drew a bid-to-cover of 1.81 so by that measure, demand was much weaker this month
• European Economic Data:
  
  • In the U.K., consumer price inflation rose to 1.6% y/y in December (0.5% m/m), exceeding both forecasts and November's 1.2% rate. December's reading was the highest since August 2014
    
    • The core CPI was up 1.6% y/y
    • The House Price Index grew by 6.7% y/y in November, accelerating from an upwardly revised 6.4% increase in October
  • The ZEW Institute's eurozone Economic Sentiment Index rose less than expected to 23.2 for January from 18.1 for December
  • In Germany, the ZEW Economic Sentiment Index also rose less than expected to 16.6 for January from 13.8 for December
    
    • The Current Conditions Index jumped by more than expected to 77.3 from 63.5
  • France's government budget deficit widened to EUR93.3 bln for November from EUR85.5 in October
• European Yields:
  
  • France, 10-yr OAT: -4 bps to 0.76%
  • Germany, 10-yr Bund: -4 bps to 0.30%
  • Greece, 10-yr note: +4 bps to 6.98%
  • Italy, 10-yr BTP: -2 bps to 1.88%
  • Portugal, 10-yr PGB: -5 bps to 3.78%
  • Spain, 10-yr ODE: -2 bps to 1.38%
  • U.K., 10-yr Gilt: -1 bp to 1.31%

 On The Wires

• ForeverGreen Worldwide Corporation (FVRG) announced that it will begin to transition several existing products into the global Xpress model. FrequenSea, a flag-ship product will be the first product changed to the model, as FrequenSea Pro, which will become available this spring.
• TESARO, Inc. (TSRO) announced the opening of an expanded access program (EAP) in the United States for the investigational PARP inhibitor, niraparib. Through this program, niraparib is being made available for eligible women with recurrent epithelial ovarian, fallopian tube, or primary peritoneal cancer following a complete or partial response to platinum-based chemotherapy. An EAP for niraparib in Europe is planned to open in the first half of 2017, and will be initiated on a country-by-country basis.
• Callidus Software Inc. (CALD) announced a new strategic OEM agreement with SAP (SAP) to help customers sell more, faster with integrated solutions to drive sales performance, productivity and effectiveness.
• AgigA Tech, a subsidiary of Cypress Semiconductor Corp. (CY), announced the production release of its AGIGARAM family of JEDEC-compliant DDR4 NVDIMM-N solutions. The solutions join AgigA's market-leading, pre-JEDEC DDR4 NVDIMM products already in volume production to provide a broad portfolio of full turnkey module products and controller solutions that adhere to the recent publicly released JEDEC standards around NVDIMM-N solutions (JESD248 and JESD245A).
• Zimmer Biomet Holdings (ZBH) announced that it has implemented a leadership transition that capitalizes on the strength of the Zimmer Biomet management team. Effective January 23, 2017, Robert D. Delp will assume the position of President, Americas and join the executive leadership team of the Company. Mr. Delp previously served as Zimmer Biomet's Vice President of U.S.Sales, leading sales for the Knee, Hip, Bone Cement, Biologics, Extremities, Sports Medicine, Foot and Ankle, Surgical and Trauma categories. Stuart G. Kleopfer, following a distinguished career at Zimmer Biomet and pre-merger Biomet, has decided to retire from his position as President, Americas. Mr. Kleopfer will continue with the Company for a period of time and work closely with Mr. Delp to fully transition responsibilities.
• Canadian Solar Inc. (CSIQ) announced that its wholly owned subsidiary Recurrent Energy has reached commercial operation of the adjacent 100 MWac/131 MWp Astoria and 75 MWac/100 MWp Astoria 2 solar projects located in Kern County, California.
• FLIR Systems, Inc. (FLIR) announced three product families including thermal handhelds, weapon sights, and clip-ons featuring FLIR's latest compact, uncooled thermal camera core, FLIR Boson, at the 2017 Shooting Hunting Outdoor and Tactical Show in Las Vegas. All new thermal imagers allow users to detect heat and see in complete darkness, and when combined with precision optics, deliver unmatched imaging and functionality for the tactical and outdoor enthusiast markets.
• MediaValet Inc. announced that Gartner (IT) has named MediaValet, in its first ever «Market Guide for Digital Asset Management,» as a Representative Vendor for mid-size to enterprise organizations looking for a SaaS-based DAM.
• MakeMyTrip (MMYT), MIH Internet SEA Pte. Ltd. and MIH B2C Holdings B.V. entered into an Amendment No. 1 dated January 13, 2017, to the Transaction Agreement dated October 18, 2016, by and among MakeMyTrip, Parent and, solely for the purposes of Article XIII thereof, Guarantor. Amendment No. 1 extends the Outside Date (as defined in the Transaction Agreement) from January 16, 2017 to April 1, 2017.
• Tetraphase Pharmaceuticals (TTPH) announced dosing of the first patient in IGNITE3, the Company's phase 3 clinical trial evaluating the efficacy and safety of once-daily intravenous (IV) eravacycline compared to ertapenem in complicated urinary tract infections.
• InVivo Therapeutics Holdings Corp. (NVIV) announced that the University of New Mexico Hospital has been added as a clinical site for The INSPIRE Study: InVivo Study of Probable Benefit of the Neuro-Spinal Scaffold for Safety and Neurologic Recovery in Subjects with Complete Thoracic AIS A Spinal Cord Injury.
• Qorvo (QRVO) received continued Trusted Source Category 1A accreditation through 2018 from the U.S. Department of Defense. 
• Veritable, LP. and Moelis Asset Management LP, an affiliate of Moelis & Company (MC), announced they have entered into a joint venture agreement establishing Archean Capital Partners, a private market investment platform that will provide new portfolio managers with the initial capital, advice and infrastructure necessary to launch their own funds.

 

 

 Noble Corp PLC upgraded to Overweight from Equal Weight at CapitalOne  (7.28)

 S&P futures vs fair value: -5.80. Nasdaq futures vs fair value: -11.80.

The stock market is poised for a lower open as the S&P 500 futures trade six points below fair value.

On the corporate front, Tiffany & Co (TIF 77.60, -4.32) has dropped 5.3% in pre-market trade after reporting lackluster holiday sales. Conversely, Walt Disney (DIS 109.00, +0.94) has climbed 0.9% after the company's stock was upgraded to 'Buy' from 'Neutral' at Goldman.

Just released, the Empire Manufacturing Survey for January fell to 6.5 from the prior month's reading of 9.0. The Briefing.com consensus estimate was pegged at 8.3.

 

 

 On The Wires

• Cryoport, Inc. (CYRX) announced that it will be providing its advanced cryogenic logistics solutions to support ProMab Biotechnologies' new chimeric-antigen receptors, and specifically CAR-redirected T-cells.
• CGI (GIB) announced it has been awarded a task order by the General Services Administration's Federal Acquisition Service on behalf of the U.S. Department of Homeland Security. The Credential Management Task Order provides identity management services for 26 federal agencies. Issued under the Continuous Diagnostics and Mitigation Continuous Monitoring as a Service Blanket Purchase Agreement and GSA IT Schedule 70, the total contract value is US$102 million over two years.
• Itron (ITRI) and Halifax Regional Water Commission have entered into a contract to modernize the utility's water distribution system. The utility, which provides water, wastewater and stormwater services to residents of the Halifax Regional Municipality, the capital of Nova Scotia, Canada, will deploy Itron's smart water solution and analytic software-as-a-service as part of its Advanced Metering Infrastructure Project. The project aims to provide more customer-focused and efficient services to residents and improve overall system infrastructure.
• Papa Murphy's Holdings (FRSH) announced that it has expanded the scope of its relationship with Franchise Performance Group, a strategic franchise recruiting advisory firm, to include the refranchising of Company-owned stores in select markets.
• Airborne Wireless Network (ABWN) and Air Lease Corporation (AL) announced they have entered into a Memorandum of Understanding with regards to a strategic marketing partnership for Airborne Wireless Network's proposed broadband wireless network, trademarked as «Infinitus Super Highway.»

 S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -8.80.

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

Equity indices across Asia-Pacific saw a modest pickup in activity last night, with traders returning to action in US following the MLK Holiday weekend. Unfortunately, the tone has been mostly negative with most of the major averages closing lower on Monday. There was only a few minor regional economic releases in Asia today with none having a profound impact upon release.

• In economic data:
  • Japan's November Final Indus Prod +1.5% vs +1.5% prelim. November Capacity Utilization +3.0% vs +1.4% in October
  • Aus's ANZ Roy Morgan Weekly Consumer Confidence Index 119.3 vs 120.1 last week. December New Motor Vehicle Sales +0.3% vs -0.7% in November In news:There wasn't any notable news out of the Asia-Pacific region.

---Equity Markets---

• Japanese shares were hit for a second straight day on Tuesday, with the Nikkei shedding an additional 1.5% loss to a 1% decline on Monday. Trading desks cited continued strength in the yen after the currency gained over 1% against the dollar. As such, exporters took it on the chin with shares of Honda losing 2.7%, while Panasonic dropped 1.3%.
• In China, the Shanghai closed the day 0.2%, nearly managing to get back the 0.3% loss seen on Monday. Trading was light overall. With Crude futures suggesting a 1% gain, energy was among the best performing sectors across the mainland. Sinopec set the pace with an advance of 2%, while PetroChina close the session with a 1.1% gain.
• Hong Kong's Hang Seng climbed 0.5% with only 13 of the 50 stocks making up the index closing in the red. Energy-related names were notably stronger (similar to the Shanghai) but so were property names. CK Property was the leader by day's end, finishing the day up 2.2%. Meanwhile China Res Land and Sino Land finished the session higher by 0.8% and 0.7%
• India's Sensex posted loss of 52.51 pts, to finish 0.2% lower. Many of the key heavyweights saw declines today, keeping India's benchmark in negative territory for the bulk of the session. As such, Tata Steel (-0.9%), Tata Motors (-0.6%) and Wipro (-0.5%) were among the most notable laggards of the day.

Major European indices are on the defensive, but have cut their losses following a somewhat conciliatory Brexit speech from UK Prime Minister May, who confirmed Britain will leave the single market, but is aiming for a flexible and phased Brexit transition, which will be put to a parliamentary vote.  The British pound has been really strong today, underpinned as well by a higher-than-expected CPI print for December.

• In economic data:
  • UK CPI +0.5% month-over-month (expected +0.3%; last 0.2%); +1.6% year-over-year (expected +1.4%; last +1.2%)
  • UK House Price Index +6.7% year-over-year (expected +6.3%; prior +6.9%)
  • German ZEW Economic Sentiment for January at 16.6 (expected 18.3; prior 13.8)
  • Eurozone ZEW Economic Sentiment for January at 23.2 (expected 24.2; prior 18.1)
  • Italian Trade Balance for November 4.200B (expected 3.840B; last 4.290B)

---Equity Markets---

• UK's FTSE is down 0.9%, having been pressured early by concerns surrounding Prime Minister May's Brexit speech and a report showing consumer inflation rose at its fastest pace year-over-year in December since July 2014.  Losses are being led by Vodafone (-2.2%), Tui (-1.2%), and Intertek Group (-3.5%). Rolls Royce (+5.9%) leads the winners after reporting a better-than-expected profit for 2016.  In M&A news, Reuters reported that British American Tobacco is going to acquire 57.8% of Reynolds American for $59.64 per share.
• Germany's DAX trades flat. Automakers have seen an uptick after falling under pressure Monday when President-elect Trump threatened a 35% border tax on German cars made in Mexico and imported to the U.S. BMW (+0.5%), Volkswagen (+0.2%), and Daimler (+0.3%) are all up while Bayer (-0.5%) and adidas (-1.1%) are among the major DAX laggards.
• France's CAC is down 0.1%, following form with its European counterparts. Arcelor Mittal (-1.2%), Bouygues (-1.0%), and Publicis Groupe (-1.3%) pace the decliners while Accor (+1.5%) and Engie (+0.7%) sit atop a short list of winners.

 

 Gapping up/down: CWEI +32%. LUX +8% and RAI +4% after M&A news; NFLX +1% after upgrade; TIF -5% after earnings, CMG -1% after downgrade

Gapping up
In reaction to strong earnings/guidance: EDU +2.3%, UNH +0.5%

M&A news:

• CWEI +32% ( to be acquired by Noble Energy (NBL) for approx value of $139 per share), LUX +8.2% (Essilor and Delfin sign agreement of merger through a combination of Essilor (ESLOY) and Luxottica), RAI +4% (British American Tobacco (BTI) to acquire RAI common stock it does not currently own for $59.64 per share)

Select metals/mining stocks trading higher: KGC +4.8%, AU +4.7%, SBGL +4.5%, PAAS +3.7%, GG +3.4%, ABX +3.1%, NEM +3%, SLW +2.8%, GFI +1.7%

Other news:

• BVXV +27.5% (still checking), BLRX +8.9% (initiaties a second Phase 2a trial investigating BL-8040 in combination with KEYTRUDA for Pancreatic Cancer), MUX +5.5% (reports FY16 production in-line with guidance), AG +4.4% (reports 2016 production +16%), IAG +4.3% (reports Q4 production above guidance), HMY +3.2% (reports H1 gold production rose 8% YoY), RIO +1.8% (reports Q4 production; iron ore shipments in-line with guidance)

Analyst comments:

• LAMR +1.1% (upgraded to Buy from Neutral at Goldman), NFLX +1% (upgraded to Buy from Neutral at Mizuho), AXP +0.6% (upgraded to Overweight from Neutral at JP Morgan), DIS +0.5% (upgraded to Buy from Neutral at Goldman)

Gapping down
In reaction to disappointing earnings/guidance:

• CBK -16.2%, TIF -4.7%, PLG -3.9%

M&A news:

• NBL -0.5% (to acquire CWEI for $139 per share)

Other news:

• ADHD -52.6% (reports that the Phase 3 clinical trial of MDX in adults with ADHD missed the primary endpoint)
• GLBS -26.1% (announced that its previously disclosed private placement/conversion of debt will not occur as planned (previously described on November 28, 2016))
• UEC -11.9% (confirms underwritten public offering of units of the company at price of $1.50/unit)

Analyst comments:

• VOD -2.7% (downgraded to Hold from Buy at HSBC)
• NVS -1.6% (downgraded to Hold from Buy at Berenberg)
• CMG -1.4% (downgraded to Neutral from Overweight at JP Morgan)
• TWTR -1.1% (downgraded to Neutral from Buy at UBS)
• NAVI -1.1% (downgraded to Neutral from Overweight at JP Morgan )
• ING -1% (downgraded to Neutral from Buy at Goldman)

American Vanguard acquires the FFIII fungicide product line from The Andersons (ANDE); terms not disclosed  (17.45)FFIII contains three active ingredients which work together to provide long lasting turf disease protection.

 Artesian Resrces upgraded to Long-term Buy from Neutral at Hilliard Lyons  (29.83)

 Filings, Offerings and Pricings

Filings:

• Concho Resources (CXO) files for offering of 2,177,300 shares of common stock by selling stockholder
• Ener-Core (ENCR) files for offering of 4.73 mln shares of common stock on behalf of seeling stockholders
• Qumu (QUMU) files for offering of 314,286 shares of common stock issuable upon exercise of warrants by selling shareholders
• Smart Sand (SND) files for $100 mln common stock offering

Offerings:

• AdvancePierre Foods (APFH) commences 12.5 mln common stock offering by stockholders, including funds managed by Oaktree Capital Management (OAK) and members of its mgmt
• Globus Maritime Limited (GLBS) announced that its previously disclosed private placement/conversion of debt will not occur as planned (previously described on November 28, 2016)
• New York Mortgage Trust (NYMT) announces $100 mln debt offering of its senior convertible notes due 2022
• Xtant Medical (XTNT) announces registered direct offering pursuant to a shelf registration statement

Pricings:

• Golden Star Resources (GSS 0.88) announces CAD$30 mln bought deal financing at CAD$ 1.10
• Professional Diversity Network (IPDN 9.38) to sell 312,500 shares of its common stock to Cosmic Forward at $9.60/share
• Uranium Energy (UEC 1.68) announces an upsized underwritten public offering of units (one share, one-half of one Warrant to purchase one share) at $1.50/unit to raise up to $26 mln

 EPR Properties increases monthly dividend to $0.34/share from $0.32/share  (73.22)

 Bonanza Creek Energy +40% ahead of the open after Bill Barrett (BBG) disclosed in a regulatory filing that it had entered into a confidentiality agreement with Bonanza and has indicated its interest in a combination transaction involving a reorganized BCEI  (1.99)

 On The Wires

• WPCS International Incorporated (WPCS) announced $1.5 million new contracts signings in December 2016. Since April 30, 2016, the end of the Company's last fiscal year, backlog has increased 31.3% to $17.3 million as of December 31, 2016.
• Verizon (VZ) has redesigned the My Fios App with a simplified design and new features that include Facebook Messenger and a Wi-Fi Analyzer tool. Customers can also manage their accounts, resolve service issues, and connect to live and on-demand streaming Fios TV content on Fios Mobile.
• RCI Hospitality Holdings (RICK) announced the sale of the first of several non-income producing properties owned by subsidiaries.  RCI said a subsidiary closed on the sale of the property off US 820 in Fort Worth for $2.2 million in cash. Proceeds were used to pay off the remaining $1.5 million balance of a related 11% balloon note, due in 2018, and related fees. Balance of the proceeds will be used to repurchase stock, fund growth, or repay debt.
• Automatic Data (ADP) acquires The Marcus Buckingham Company; terms not disclosed. The Marcus Buckingham Company is an innovator in human capital management. 
• At the end of 2016, Magirus, a brand of CNH Industrial (CNHI), achieved 'two important results, which further strengthen its production schedule for 2017.' The Firefighting Brigades of the Italian Ministry of Home Affairs awarded Magirus the frame contract for up to 100 firefighting vehicles. At the end of November, the Fire Department Institute of North Rhine-Westphalia IdF, one of the largest German training centers for firefighters, chose Magirus for a major order of up to 109 units.

 Apple: Hearing Morgan Stanley out lowering their 2017 iPhone ests on lower iPhone 7 demand, partially offset by better ASPs  (118.59 -0.45)

 Altria acquires the privately-held Sherman Group Holdings and its subsidiaries; financial details not disclosed  (67.63 +0.05)Nat Sherman was founded in 1930 as a family-owned and operated business. Nat Sherman cigarettes are manufactured in Greensboro, North Carolina and are currently in limited distribution throughout the U.S. 

 Medtronic announces the CE mark and European launch of the CoreValve Evolut R 34 mm valve  (75.03 -0.06)The new Evolut R 34 mm valve is approved for severe aortic stenosis patients who are at intermediate, high or extreme risk for surgery with an annulus size ranging from 26-30 mm.

 Hearing Valero Energy was downgraded to Neutral from Buy at Citigroup  (67.41 +1.02)

 Hearing HollySys was downgraded to Hold from Buy at Deutsche Bank  (18.84 -0.34)

 

 Consumer Discretionary Spdr/Retail showing early relative strength...  (84.09 +0.13)

• A handful of Retailers showing relative strength against broader market weakness off the open… PVH, DLTR, RL, WMT, DG, BBY, DKS, COST, KSS, LB, TGT, MAT, NKE, XRT, RTH, TJX, GPS.

 Retailers seeing some strength following comments from President-Elect Trump that he believes current GOP border adjustment tax plan is 'too complicated' — see 7:14 Early Morning Reading Summary  (44.88 +0.87)

• Retailers seeing strength in today's session include: SSI +7.5%, SHLD +7.3%, MIK +6%, ZUMZ +6.1%, FRAN +5.5%, ANF +5.3%, JCP +4.7%, GPS +4.5%, PIR +4.3%, PVH +4.4%, PLCE +4.2%, DECK +4.2%, TUES +4.2%, GES +4%, KSS +3.8%, DDS +3.8%, BKE +3.3%, VRA +3.7%, BBY +3.7%, DLTR +3.5%, SPWH +3.5%, CATO +3.3%, RL +3.4%, DSW +2.9%, WWW +2.9%, WMT +2.9%, BIG +2.3%, EXPR +2.3%, AEO +2.6%, HBI +2.6%, PVH +5.1%, BBY +4.3%, KSS +3.8%, DLTR +3.6%, DKS +3.4%, RL +3.4%, WMT +3.1%, TGT +2.6%, DG +2.3%, PSMT +1.5%.
• Note: Retailers would benefit if there were no border tax plan. However, President-Elect Trump has been very clear throughout his campaign that he is in favor of border taxes on imports. He said in WSJ on Monday that the current GOP plan is too complicated. The next step will for Congress to tweak the current plan or come with with a different tax reform package.

 GoPro ticking slightly higher in recent trade; Hearing renewed M&A speculation circulating  (9.97 +0.20)

 Economic summary: Empire Manufacturing below expectations; December CPI out tomorrow at 8:30 ET

Economic Data Summary:

• January Empire Manufacturing 6.5 vs Briefing.com consensus of 8.3; was 9.0%

Upcoming Economic Data:

• Weekly MBA Mortgage Applications due out Wednesday at 7:00 (Briefing.com consensus of; Last Week was 5.8%)
• December CPI due out Wednesday at 8:30 (Briefing.com consensus of 0.3%; November was 0.2%)
• December Core CPI due out Wednesday at 8:30 (Briefing.com consensus of 0.2%; November was 0.2%)
• December Industrial Production due out Wednesday at 9:15 (Briefing.com consensus of 0.6%; November was -0.4%)
• December Capacity Utilization due out Wednesday at 9:15 (Briefing.com consensus of 75.4%; November was 75.0%)
• January NAHB Housing Market Index due out Wednesday at 10:00 (Briefing.com consensus of; December was 70)
• January Fed's Beige Book due out Wednesday at 14:00 (Briefing.com consensus of; December was )
• January Net Long Term TIC Flows due out Wednesday at 16:00 (Briefing.com consensus of; December was $9.4 bln)

Upcoming Fed/Treasury Events:

• Fed's Williams to speak today at 18:00 ET

Other International Events of Interest

• UK CPI +0.5% month-over-month (expected +0.3%; last 0.2%); +1.6% year-over-year (expected +1.4%; last +1.2%)

 J. C. Penney announces new Nike (NKE) shops in 600+ stores  (7.05 +0.29)Co has dedicated 500 sq. ft. of space to Nike (NKE) in a prominent location within the men's department.

 Hearing American Water Works was upgraded to Long-term Buy from Neutral at Hilliard Lyons  (71.93 +1.11)

 Fed's Brainard says domestic economy closer to balanced; may hike faster if fiscal policy pushes inflation; gradual path will remain in place if inflation remains muted

 eritage Growth Properties +4% after updating on its leasing and development activity as of December 31, 2016  (41.41 +1.61)

Highlights include:

• Signed new leases totaling 2.2 million square feet since the Company's formation, including 890,000 square feet during the fourth quarter of 2016
  • Increased third-party rental income by $41 million, or approximately 94%, since the Company's formation
  • New rents at 4.4x prior rents upon releasing, with new average rent of $18.62 PSF compared to $4.20 PSF for space currently or formerly occupied by Sears Holdings (SHLD)
• Completed or commenced 48 wholly-owned redevelopment projects with projected cost of over $460 million since the Company's formation, including eight new projects commenced in the fourth quarter of 2016
  • Projected incremental returns of approximately 12% on 33 new projects initiated solely on the Seritage platform with projected cost of $400 million
• Initiated recapture of Sears building in downtown Santa Monica for redevelopment during the fourth quarter of 2016

 

 Retail, metals, energy, staples and REITs strong with financials, biotech, the dollar and small caps weak vs. SPY -0.2%  (226.52 -0.53)

• XRT +2.02% SLV +1.69% XOP +1.51% GLD +1.29% USO +1.14% XLP +1.09% XME +0.83% XLRE +0.68%
• KRE -2.31% XBI -2.25% KBE -2.21% IBB -1.76% XLF -1.25% UUP -0.84% XLV -0.79% IWM -0.75%

 

 Hyatt Hotels: Madrone GHC lowers passive stake to 6.9% (Prior 8%)  (55.14 -0.17)

 X

 

 Bayer AG: Following meeting with President-Elect Trump, Bayer plans $8 bln in new US R&D, per transition spokesperson  (107.85 -0.12)

• Note: Fox Business reported earlier today that this might have been a condition to gain approval for Bayer / Monsanto (MON) M&A deal — see 1/17 9:12. Close of merger expected by the end of this year.

 Forward Pharma A/S confirms settlement and license agreement with Biogen (BIIB), says evaluating the 'most efficient way' to deliver directly to its shareholders a substantial portion of the cash it will be receiving  (27.70 +9.35)

 Sector Summary: The Healthcare sector (-0.80%) is trading lower today, lagging the S&P 500 (-0.31%)Gainers on news:

• Benitec Biopharma (BNTC +76.76%) BB-301 receives Orphan Drug Designation in EU
• Pulmatrix (PULM +63.26%) announces that its drug candidate for treating fungal infections in the lungs of CF patients, PUR1900, has been designated as a QIDP by the FDA
• Forward Pharma (FWP +50.9%) enters into settlement and license agreement with Biogen (BIIB), will receive $1.25 bln

Decliners on news:

• Alcobra Pharma (ADHD -53.09%) reports that the Phase 3 clinical trial of MDX in adults with ADHD missed the primary endpoint
• Concert Pharma (CNCE -12.23%) provides further details on CTP-656 development in U.S. and Europe; FDA requiring adequate washout period
• Medigus (MDGS -9.68%) receives non-compliance notice from NASDAQ for inability to maintain minimum bid price

Decliners on earnings:

• UnitedHealth (UNH -1.53%) beats by $0.04, reports revs in-line; reaffirms FY17 EPS guidance, revs guidance

Upgrades/Downgrades:

• Aeterna Zentaris (AEZS +15.69%) Maxim Group Reiterated BUY — Price Target: 10 (from 7)
• HCA (HCA +2.66%) upgraded to Mkt Outperform from Mkt Perform at Avondale
• Agios Pharma (AGIO +0.55%) upgraded to Outperform from Perform at Oppenheimer
• Chiasma (CHMA -3.75%) downgraded to Underweight from Equal Weight at Barclays
• Novartis AG (NVS -1.45%) downgraded to Hold from Buy at Berenberg
• Perrigo (PRGO -1.07%) RBC Capital Mkts Reiterated SECTOR PERFORM — Price Target: 85 (from 92)

 Rumor Round Up

Rumor Activity was active to start out the week.

• GoPro (GPRO 9.40 +0.13) renewed M&A speculation circulated.
• NYPost report that says Verizon (VZ 52.75 +0.20) is looking to acquire a large cable company, possibly Charter (CHTR 301.32 +2.89) or Comcast (CMCSA 72.57 -0.20).
• NY Post detailed that the Dow (DOW 57.06 -0.74) and Dupont (DD 72.57 -1.03) merger might face obstruction by the EU.
• FT discussed recent takeover speculation in ITV (ITVPY 25.27 -0.12).

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.

 

 Stocks/ETFs that traded to new 52 week highs/lows this session — New highs (98) outpacing new lows (21)Stocks that traded to 52 week highs: AAPL, ABG, ACP, AFAM, AGD, ALB, ALK, AOD, ASG, ASMB, ASML, ASUR, AXGN, BBL, BCX, BGH, BHP, BIP, BKEP, BNS, BSBR, CEB, CENX, CHE, CHTR, CIBR, CMO, CNI, CNP, COBZ, COHR, COMT, CWEI, DLX, ECPG, ENH, EVG, FMSA, FRA, FTSL, GDOT, GEO, GER, GLOG, GMZ, GPI, HNR, ICON, INFO, IRDM, KAR, KB, KIN, KOPN, LAD, LAMR, LBRDA, LBRDK, MAN, MPET, MPLX, MXL, NFLX, NGL, NHF, NXRT, PAM, PBA, PCI, PLT, PME, PSEC, PTR, PZE, QQQX, RAI, REN, RIO, ROBO, SAH, SBLK, SCCO, SHOP, SLF, SN, SNOW, SNP, TAC, TCX, TLI, TLLP, TSE, UCTT, UVV, VMW, VVC, WLDN, WPZ

Stocks that traded to 52 week lows: ACUR, ADHD, AVGR, COSIQ, DRYS, ECYT, EVC, FENX, FTEK, GBSND, ICLD, IFON, KOF, KONA, MACK, PRGO, SMRT, TV, TWER, VLRS, VNCE

Thinly-Traded Stocks (ADV below 45k) that traded to 52 week highs on High Volume: BNTC, CBFV, CLRO, CVV, DAIO, DAX, FEUZ, FWP, GGM, GSH, GULF, HFBL, KFS, MLVF, MPB, MVO, OFS, ONEQ, OTEL, OVLY, OXBR, PNTR, QCLN, RMCF, SAL, SBCP, SHI, TPL, TRK, WAYN

Thinly-Traded Stocks (ADV below 45k) that traded to 52 week lows on High Volume: AXSM, CGG, GSIH, SPI

ETFs that traded to 52 week highs: DBC, EWC, EWG, GULF

 Sector Summary: S&P Consumer Discretionary Index +0.3%, outperforming the broader marketThe consumer discretionary group is slightly outperforming the broader market in early trade. The retail group is seeing notable strength amid Trump commentary on border taxes. The Retail HOLDRS Trust (RTH) is +1.1% and the SPDR S&P Retail ETF (XRT) +2%.

Notable earnings/guidance: 

• Trading higher following earnings/guidance:
  • EDU +2.9%
  • TUES 0.9% (Tuesday Morning sees Q2 revenue just above consensus; COO Melissa Phillips resigns)
• Trading lower following earnings/guidance: 
  • CBK -33.3% (Christopher & Banks CEO LuAnn Via departs; names Joel Waller interim CEO; lowers Q4 guidance)
  • TIF -1.2% (Tiffany & Co reports its sales results for the two months ended December 31 of $966 million vs. $961 million a year ago; worldwide comparable store sales declined 2%; expects FY16 EPS to decline by no more than a mid-single-digit percentage)

In the news:

• Leaders: JCP 4.2% (announces new Nike shops in 600+ stores),  WMT 3.1% (announced plans to create American jobs and invest in local communities across the country), GM 0.2% (General Motors confirms $1 bln US investment & will create 7000 jobs),  LOW 1.4% (Lowe's CFO to retire; Marshall A. Croom, a 20-year Lowe's veteran, to take over), MAT 3.7% (Mattel appoints Margaret Georgiadis as CEO effective February 8), BURBY 0.6% (confirms that Marco Gobbetti to become Group CEO in July), DLPH 0.8% (Delphi Automotive expects to record pre-tax charge of $300 million in Q4 related to litigation against the former Delphi Corporation)
• Laggards: GTN -4.3% (Gray Television stations dropped by Dish Network),ANGI -2.9% (Angie's List reports membership increased over 50% in 2016 to over 5 mln members), CONN -2.1% (names Coleman Gaines as President and Chief Operating Officer of Retail)
• M&A related: VZ 0.3% CHTR 1% CMCSA -0.2% (NYPost report that says Verizon is looking to acquire a large cable company, possibly Charter or Comcast)
• Limited Stores, parent company of women's fashion apparel retailer The Limited, files voluntary petition for relief under chapter 11 of the United States Bankruptcy Code.

Analyst related:

• Upgrades: DIS 0.1% (upgraded to Buy from Neutral at Goldman; tgt raised to $134 from $109), TXRH 1.1% (upgraded to Equal-Weight from Underweight at Morgan Stanley), MIK 6% (upgraded to Overweight from Equal-Weight at Morgan Stanley), LGF.A 1.5% (upgraded to Outperform from Mkt Perform at Bernstein)
• Downgrades: TCS -7% (downgraded to Underweight from Equal-Weight at Morgan Stanley), BLMN -0.9% (downgraded to Underweight from Equal-Weight at Morgan Stanley), EAT -0.9% (downgraded to Underweight from Equal-Weight at Morgan Stanley), CMG -0.6% (downgraded to Neutral from Overweight at JP Morgan), JWN 1.7% (downgraded to Hold from Buy at Stifel)

Looking ahead:

• On the earnings front: NFLX reports earnings Jan 18 after the close, BSET Thursday Jan 19 before the open.

 

 Today's biggest % gainers/losersThe following are today's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

Today's top 20 % gainers

• Healthcare: XBIT (10.89 +8.57%), THC (19.52 +7.14%), CYH (7.33 +5.77%)
• Materials: FSM (6.89 +6.49%), KGC (3.55 +5.51%)
• Consumer Discretionary: PVH (96.05 +7.55%), SHLD (9.38 +7.28%), GIII (28.75 +6.11%), MIK (21.76 +6.04%), GES (13.16 +5.92%), ZUMZ (20.9 +5.29%), RH (30.84 +4.97%)
• Financials: SRG (42.38 +6.48%)
• Energy: CWEI (142.54 +37.09%), SN (12.85 +14.3%), PBF (25.06 +5.69%), NBL (39.28 +5.05%)
• Consumer Staples: AVP (5.84 +5.8%)
• Utilities: NRG (15.54 +6.44%), CIG (2.74 +5.19%)

Today's top 20 % losers

• Healthcare: FOLD (5.45 -8.4%), SCMP (11.6 -7.2%), ALNY (38.93 -6.43%), SGMO (4.13 -6.25%), CHRS (25.46 -6.22%), SUPN (23.55 -6.18%), LCI (19.1 -5.91%), ARWR (1.95 -5.58%), TGTX (4.68 -5.56%), AIMT (20.17 -5.2%)
• Materials: RYI (10.46 -7.43%)
• Industrials: TGI (25.35 -5.94%)
• Consumer Discretionary: EVC (5.4 -16.28%)
• Information Technology: PRGS (27.81 -13.77%), ZEN (22.26 -10.1%), HOLI (17.26 -10.01%), ANET (91.33 -8.92%), AMD (10 -5.53%)
• Financials: CMA (65.93 -5.71%)