Америка сегодня без значительных новостей.

Asian MarketsNikkei...18891...-246.90...-1.30%.  Hang Seng...22898.5...+12.60...+0.10%.

 

 Overseas Research Calls

Upgrades: 

• Antofagasta plc (ANFGY) upgraded to Buy from Neutral at Citigroup
• Deutsche Telekom (DTEGY) upgraded to Overweight from Neutral at JP Morgan
• Husky Energy (HUSKF) upgraded to Buy from Neutral at Goldman

Downgrades: 

• Unilever PLC (UL) downgraded to Equal Weight from Overweight at Barclays
• Peyto Exploration (PEYUF) downgraded to Equal Weight from Overweight at Barclays
• Britvic (BTVCY) downgraded to Add from Buy at Numis
• Inmarsat (IMASY) downgraded to Neutral from Buy at BofA/Merrill

Miscellaneous: 

• Ocado (OCDGF) initiated with an Underperform at Bernstein
• Orange (ORAN) initiated with a Hold at Berenberg

 Molson Coors Brewing initiated with a Neutral at Credit Suisse; tgt $106  (97.62)

 

 Overnight Summary — World markets stumble out of the gate to begin the week

• The global equity markets are generally lower to begin the week. The S&P is down about 3 points, but has come off lows set earlier in the session.
• The Nikkei was among the worst performing indexes on Monday, dropping 1.3%. A significant factor working against Japanese equities was the executive order by President Trump to withdraw from the Trans-Pacific Partnership. With weakness coming into the dollar, the yen rose in response. As usual, exporters were victims of the strength in the currency. As such, heavyweights such as Honda, Panasonic and Sony all closed down over 1%.
• The Shanghai closed higher, but the activity was muted. Volume has been declining since the start of the year, which seems to imply traders are taking it easy heading into the Lunar New Year, which begins on Friday.
• In Europe, the major bourses are solidly in negative territory. There was no significant macro-data out of the region. Weighing on these indices are bank stocks, with the likes of Deutsche Bank and Lloyd's down over 1%, as well as energy names, which has seen notable declines with crude oil down 1.4%, thus far.

Market Updates:

• S&P Futures vs Fair Value: -3.00 
• 10 yr Note: 2.4670% 
• USD/JPY: 113.70 -0.87 
• EUR/USD: 1.0727 +0.0029
• Europe: FTSE -0.4% DAX -0.3% CAC -0.3% 
• Asia: Hang Seng +0.1% Shanghai +0.4% Nikkei +0.4% 
• Commodities: Gold (11212.10 +7.20) Silver (17.16 +0.13) crude (52.47 -0.75) 

US Econ Data

• Nothing of significance

 CSX, Williams Partners (WPZ) upgraded to Outperform from Market Perform at BMO Capital  (44.33)

 

 

 Santander Consumer USA initiated with a Neutral at Susquehanna  (13.48)

 

 Credit Acceptance Corp. initiated with a Neutral at Susquehanna  (203.26)

 BB&T Corp upgraded to Buy from Neutral at Hilliard Lyons  (45.42)

 

 Southwestern Energy upgraded to Equal Weight from Underweight at Barclays  (9.41)

Williams Cos upgraded to Buy from Hold at Jefferies  (28.21)

 Liberty Global resumed with a Equal-Weight at Morgan Stanley  (34.87)

 Liberty Sirius downgraded to Equal-Weight from Overweight at Morgan Stanley  (35.52)

 On The Wires

• WiLAN (WILN) announced patent license agreements with Nanya Technology Corporation — a leading memory solution provider for products embedded with consumer memory and low power memory who ranks among the top five global suppliers of dynamic random-access memory (DRAM). Terms not disclosed.
• International Game Technology PLC (IGT) announced that its subsidiary, IGT Global Solutions Corporation will undertake a $15 million expansion to house a new, state-of-the-art instant ticket press at its Lakeland, Florida facility. The new servo-controlled TRESU press will increase IGT's printing capacity by approximately 30%.
• Eagle Pharmaceuticals, Inc. (EGRX) announced that it has completed the submission of its 505(b)(2) NDA for Ryanodex for the treatment of exertional heat stroke to the FDA. There is no currently approved drug treatment for EHS. Due to the life-threatening nature of EHS and the unmet need for an effective drug treatment for EHS, Eagle has requested Priority Review of this NDA for Ryanodex. If granted, as anticipated, a Prescription Drug User Fee Act date for a decision on the NDA would be July 2017; otherwise the Company anticipates approval later in 2017.

 Incyte initiated with a Outperform at Credit Suisse  (117.22)

Early premarket gappersGapping up: BIOL +15.6%, CYNO +5.5%, SBGL +4.9%, AU +3.2%, GOLD +2.1%, AG +1.5%, FNSR +1.5%, RIO +1.4%, GFI +1.4%, OCLR +1.4%, BMY +1.3%, ABX +1.3%, BBL +1%, BHP +1%, PAAS +1%, NEM +1%, GDX +1%, CSX +0.9%, CSX +0.9%, HMY +0.8%

Gapping down: CRNT -3.5%, QCOM -1.8%, PRGO -1.7%, SDRL -1.6%, ING -0.8%, BBVA -0.8%, RIG -0.7%

 Asian Markets Close: Nikkei -1.3%, Hang Seng +0.1%, Shanghai +0.4%

Equity indices in the Asia-Pacific region began the week on a mixed note with Japan's Nikkei (-1.3%) showing relative weakness amid strength in the yen (113.69). The Japanese currency has added 0.8% against the dollar, and continued uncertainty surrounding President Donald Trump's policies was cited for the retreat in the buck. President Trump announced that the U.S. will withdraw from the Trans-Pacific Partnership, but New Zealand Prime Minister Bill English said that some form of a free trade agreement with the US remains a possibility.

• In economic data:
  • Japan's All Industries Activity Index +0.3% month-over-month (expected 0.4%; last 0.0%) and Leading Index 102.8 (expected 102.7; previous 102.7)
  • Hong Kong's December CPI +1.2% year-over-year (last 1.2%)
  • Singapore's December CPI +0.2% year-over-year (consensus 0.1% last 0.0%)

---Equity Markets---

• Japan's Nikkei lost 1.3% amid broad weakness. Olympus, JTEKT, Yamaha Motor, Hino Motors, KDDI, Kikkoman, Fast Retailing, Mazda Motor, Casio Computer, and Mitsubishi Motors lost between 2.1% and 3.0%. Toshiba rebounded from recent weakness, spiking 9.1%.
• Hong Kong's Hang Seng edged up 0.1%. Consumer and gaming names outperformed while energy listings were mixed. China Mengniu Dairy, Sands China, Galaxy Entertainment, and Want Want China gained between 1.0% and 1.2% while China Shenhua Energy and China Petrol & Chemical added 1.2% and 0.5%, respectively. PetroChina and CNOOC both lost near 0.8%.
• China's Shanghai Composite gained 0.4%, benefiting from a temporary reserve requirement ratio cut by the People's Bank of China that was announced after Friday's closing bell. Lunar New Year celebrations will begin at the end of this week. China Television Media, Shen Ma Industry, Jiangxi Copper, and Dalian Thermal Power advanced between 4.7% and 6.3%.
• India's Sensex rose 0.3%. GAIL, Tata Steel, and ITC outperformed with gains between 1.4% and 2.4% while financials were mixed. ICICI Bank and AXIS Bank posted respective losses of 2.3% and 1.2% while HDFC Bank and SBI both climbed near 1.1%.

---FX---

• USDJPY -0.8% to 113.69
• USDCNY -0.3% to 6.8545
• USDINR +0.1% to 68.179

 Motorola Solutions upgraded to Buy from Neutral at Citigroup  (82.36)

 Columbus McKinnon upgraded to Buy from Neutral at Seaport Global Securities  (26.19)

 

 KC Southern downgraded to Neutral from Accumulate at Seaport Global Securities  (87.91)

 Varian Medical target raised to $93 at RBC Capital Mkts  (89.92)RBC Capital Mkts raises their VAR tgt to $93 from $91 following their radiation oncologist survey, which suggests that VAR's product portfolio should drive continued share gains for the company. However, given limited valuation upside, they need to see evidence of a sustained uptick in radiation oncology market growth or more aggressive use of capital for M&A to become more positive on VAR shares.

 Campbell Soup target raised to $62 at Stifel  (62.84)Stifel raises their CPB tgt to $62 from $56. They traveled with Campbell Soup management for several days last week meeting with investors. The meetings, while void of any material new news, outlined the progress at Campbell Soup in stabilizing and strengthening its core business as well as expanding into faster growth categories. Their sales and EPS estimates remain unchanged and they continue with their Hold rating for the shares. However, they are increasing the target price to $62 per share to reflect the increased confidence in achieving its guidance in FY17 and the prospect for stronger near-term sales growth and margin improvement (cost savings).

 European Markets Update: CAC -0.2%, DAX -0.3%, FTSE -0.4%

Major European indices trade in negative territory with the UK's FTSE (-0.4%) showing relative weakness. In France, the first round of Socialist primaries was won by Benoit Hamon with round two coming up on Sunday. However, the Socialist candidate is not expected to beat Francois Fillon or Marine Le Pen in the April election. British Prime Minister Theresa May is scheduled to meet US President Donald Trump on Friday to discuss trade and commitments to NATO.

• Investors did not receive any economic data today

---Equity Markets---

• France's CAC is lower by 0.2%. Financials lag with Societe Generale, Credit Agricole, and BNP Paribas down between 0.6% and 1.5%. Nokia Oyj is the weakest performer, down 2.0%, while select consumer names show gains. Danone, Louis Vuitton, L'Oreal, and Pernod Ricard are up between 0.1% and 1.1%.
• Germany's DAX has shed 0.3% amid losses in all but four components. Drugmakers Merck and Bayer are both down near 1.0% while Commerzbank, BMW, and Daimler are down between 0.4% and 1.4%. Volkswagen outperforms, rallying 2.4%, after Goldman Sachs put the stock on its Conviction Buy List.
• UK's FTSE is down 0.4% with bank shares on the defensive. RBS, Barclays, Lloyds Banking, HSBC, and Standard Chartered hold losses between 1.0% and 1.8%. Consumer names like Paddy Power, Tesco, Marks & Spencer, Next, and Dixons Carphone underperform with losses between 0.9% and 2.9%.

 

 Flowserve, Rockwell Collins (COL) upgraded to Buy at Seaport Global Securities  (50.26)

 Cynosure up 8% premarket after Bloomberg reported co is exploring strategic alternatives  (43.85)CYNO has a $1.05 bln market cap; ~14% of the short is sold short.

 Overnight Treasury Summary

Treasuries Climb as Stocks and Oil Dip

• The U.S. Treasury market is trading slightly higher this morning as global equities and oil prices decline. The international economic data releases were very sparse overnight but preliminary purchasing managers' index data for the eurozone and Japan will come out on Tuesday. The U.S. economic calendar for today is empty. The U.S. Dollar Index slipped 0.42% to 100.32 overnight as the euro, British pound, and Swiss franc all traded to one-month highs. Markets continue to digest the transfer of power in the U.S. to the new president, Donald Trump, and there is some uncertainty regarding how much economic policy will deviate from the traditional Republican blueprint. The S&P 500 is set to open down 0.30% to 2,265.6 and WTI crude is unchanged at $52.42/bbl. Gold is up 0.76% to $1,214/troy oz., having touched a seven-week high overnight
• Yield Check:
  
  • 2-yr: -1 bp to 1.18%
  • 5-yr: -1 bp to 1.92%
  • 10-yr: -1 bp to 2.46%
  • 30-yr: -2 bps to 3.03%

• International News:
  
  • Japan's All Industries Activity Index rose by a seasonally adjusted 0.3% m/m in November after no change in October
    
    • Japan's Leading Index was revised up to 102.8 for November from the preliminary reading of 102.7
      
      • The Coincident Index was revised down to 115.0 from 115.1
  • In Spain, industrial orders increased by 6.9% y/y in November, accelerating from October's 3.4% rate
  • Denmark's consumer confidence index jumped to 4.5 in January from -0.3 in December
  • The German Bundesbank said today that the consumer price inflation could hit 2% in January
    
    • The CPI was up 1.7% y/y in December
  • The eurozone's government debt/GDP ratio fell to 90.0% at the end of Q3 2016 from 91.2% at the end of Q2 2016. Key national figures:
    
    • Greece: 176.9%
    • Germany: 69.4%
    • Italy: 132.7%
    • Portugal: 133.4%

• Data out Today:
  
  • (There are no scheduled market-moving events)

 

 Cenovus Energy: Beutel, Goodman & Company discloses 5.19% passive stake  (14.61)

 

 

 

 TerraForm Power & TerraForm Global (GLBL) announce exclusivity agreement with Brookfield Asset Management (BAM) regarding a potential transaction   (12.17)

• TerraForm Power (TERP) announced that the Company has entered into an exclusivity agreement with Brookfield Asset Management (BAM) in connection with its previously disclosed strategic alternatives process to maximize shareholder value. Under the exclusivity agreement, the Company has agreed to negotiate exclusively with Brookfield in connection with a potential business combination between the Company and Brookfield until the earlier of the execution of a definitive agreement for such transaction or 11:59 p.m. New York City time on February 21, 2017.
  • As previously disclosed, TerraForm Power has been engaged in settlement discussions with SunEdison (SUNEQ) as part of its ongoing strategic alternatives process, and announced today that it has entered into a memorandum of understanding with SunEdison. The MOU outlines potential separate settlements of claims between SunEdison and the Company and SunEdison and TerraForm Global (GLBL) in connection with the Chapter 11 bankruptcy case of SunEdison.
  • Under the proposed settlement terms, SunEdison would receive consideration equal to 36.9% of the total consideration paid to all of the Company's shareholders, reflecting the settlement of intercompany claims, cancelation of incentive distribution rights and other factors considered by the Company's Board of Directors. The remaining consideration would be distributed to holders of shares of the Class A common stock of the Company.
  • In addition, under the MOU, TerraForm Power and SunEdison will work toward the terms of an agreement for a sale of all or part of the Company, provided that the final settlement agreement is reached on or before January 27, 2017.
• TerraForm Global (GLBL) announced that the Company has entered into an exclusivity agreement with Brookfield Asset Management (BAM) in connection with its previously disclosed strategic alternatives process to maximize shareholder value. Under the exclusivity agreement, the Company has agreed to negotiate exclusively with Brookfield in connection with a potential business combination between the Company and Brookfield until the earlier of the execution of a definitive agreement for such transaction or 11:59 p.m. New York City time on March 6, 2017. TerraForm Global also noted that, prior to entering into the exclusivity agreement, the Company received a revised bid letter from Brookfield. In its letter, Brookfield proposed four possible transactions, none of which is subject to any financing condition. Under the terms of the consideration, Brookfield would either acquire 100% of the Company for as much as $4.35 per share or replace SunEdison as the Company's sponsor and purchase 50.1% of the Company's outstanding shares for as much as $4.25 per share. However, any aggregate amounts payable to the Company's shareholders will reflect the terms of a final settlement agreement, if any, between the Company and SunEdison as described below.

 SunTrust Banks upgraded to Buy from Hold at Sandler O'Neill  (54.84)

 

 

 Pentair upgraded to Buy at Vertical Research  (58.80)

 Gapping up

Gapping up
In reaction to strong earnings/guidance: N/A 

M&A news:

• CYNO +8.3% (Bloomberg reported co is exploring strategic alternatives)
• KATE +4.7% (speculation on Friday of possible bidders)
• BNCN +4.1% (to be acquired by Pinnacle Financial Partners (PNFP))

Select metals/mining stocks trading higher:

• SBGL +5.1%, AU +3.9%, VALE +3.4%, GOLD +1.9%, AG +1.9%, AUY +1.9%, RIO +1.6%, PAAS +1.4%, NEM +1.3%
• ABX +1.2%, GDX +1.1%, GFI +0.9%, BHP +0.9%, BBL +0.8%, HMY +0.8%

Other news:

• MRNS +31.9% (announces 'positive' prelim data from the initial CDKL5 patients enrolled in its ongoing Phase 2study evaluating ganaxolone as a treatment for orphan, genetic disorders)
• BIOL +13.6% (confirms 510(k) clearance for commercial distribution in the US of its Epic Pro laser system from the FDA)
• ETRM +7.9% (continued momentum higher)
• NQ +4% (enters into non-binding letter of intent for the sale of FL Mobile, announces proposed $100 mln investment at $5.25/share)
• BMY +0.9% (announces settlement and license agreement with Bristol-Myers (BMY) resolving Keytruda patent litigation; co to make a one-time payment to BMY of $625 mln)

Analyst comments:

• CSX +0.9% (upgraded to Outperform from Market Perform at BMO Capital)

 Perrigo target lowered to $70 from $84 at Jefferies after meetings with mgmt; maintain Hold  (75.06)

 On The Wires

• EDAP TMS SA (EDAP) announced that it has signed an exclusive agreement with the Canadian company LABORIE to distribute their urodynamic diagnostic products in Japan, one of the largest global markets for urology.
• Remark Media, Inc. (MARK) announced it has partnered with Alibaba Cloud to provide customers with a new business-to-business (B2B) data solution. Available now, the Enterprise Data Services Solution includes data on tens of millions of businesses in China. It offers real-time risk insights; enterprise development analysis; investor, partner and customer targeting; customized data packages; and more.
• Dextera Surgical Inc. (DXTR) announced that Joel Dunning, M.D, Consultant Thoracic Surgeon at James Cook University Hospital in Middlesbrough, UK, demonstrated how Dextera's MicroCutter 5/80 helped enable the removal of a lung lobe through a single small incision. The presentation was made at The Society of Thoracic Surgeons.
• Numerex Corp. (NMRX) disclosed in a regulatory filing that Chief Revenue Officer Vincent Costello separated from the company as of January 13, 2017.
• Enteris BioPharma announced the initiation of a feasibility study agreement with Sanofi (SNY) to leverage Enteris' proprietary and patented oral peptide and small molecule delivery platform, Peptelligence, to develop an oral formulation of one of Sanofi's preclinical stage peptides.
• Elite Pharmaceuticals (ELTP) reported the Company received official minutes from its December 21, 2016 end-of-review meeting with the FDA for the New Drug Application for SequestOx. The meeting minutes support a plan to address the issues cited by the FDA in the July 14th Complete Response Letter by modifying the SequestOxTM formulation. Elite will proceed immediately to complete in vitro and in vivo bridging studies required and expects to resubmit the SequestOxTM application later this year. The in vivo studies include bioequivalence and bioavailability fed and fasted studies comparing the modified formulation to the original formulation.
• Lannett Company (LCI) announced that the company voluntarily made a $75 mln payment against its existing revolving credit facility.

 S&P futures vs fair value: -4.80. Nasdaq futures vs fair value: -11.10.

The stock market is poised to begin the week on a lower note as the S&P 500 futures trade five points below fair value.

On the earnings front, McDonald's (MCD 122.10, -0.11) is down 0.1% in pre-market trade despite beating earnings per share estimates. Halliburton (HAL 56.10, -0.35) is also lower, losing 0.6%, after reporting worse-than-expected revenues. 

In other corporate news, AMC Entertainment (AMC 34.30, 0.00) will acquire Nordic Cinema Group Holding for $929 million. With the deal, AMC will enhance its position as the leading movie exhibition company in Europe, growing its operational footprint to 15 countries.

U.S. Treasuries have ticked up in recent action, pushing the 10-yr yield down two basis points to 2.45%. 

 

 Gapping up/down: CNYO +8% and KATE +5% on M&A speculation, CSX +1% after upgrade; PETS -3%, HAL and MCD -1% after earnings

Gapping up
In reaction to strong earnings/guidance: N/A 

M&A news:

• CYNO +8.3% (Bloomberg reported co is exploring strategic alternatives)
• KATE +4.7% (speculation on Friday of possible bidders)
• BNCN +4.1% (to be acquired by Pinnacle Financial Partners (PNFP))

Select metals/mining stocks trading higher:

• SBGL +5.1%, AU +3.9%, VALE +3.4%, GOLD +1.9%, AG +1.9%, AUY +1.9%, RIO +1.6%, PAAS +1.4%, NEM +1.3%
• ABX +1.2%, GDX +1.1%, GFI +0.9%, BHP +0.9%, BBL +0.8%, HMY +0.8%

Other news:

• MRNS +31.9% (announces 'positive' prelim data from the initial CDKL5 patients enrolled in its ongoing Phase 2study evaluating ganaxolone as a treatment for orphan, genetic disorders)
• BIOL +13.6% (confirms 510(k) clearance for commercial distribution in the US of its Epic Pro laser system from the FDA)
• ETRM +7.9% (continued momentum higher)
• NQ +4% (enters into non-binding letter of intent for the sale of FL Mobile, announces proposed $100 mln investment at $5.25/share)
• BMY +0.9% (announces settlement and license agreement with Bristol-Myers (BMY) resolving Keytruda patent litigation; co to make a one-time payment to BMY of $625 mln)

Analyst comments:

• CSX +0.9% (upgraded to Outperform from Market Perform at BMO Capital)

Gapping down
In reaction to disappointing earnings/guidance:

• SN -3.1%, PETS -2.7%,MCD -0.8%, HAL -0.6%

M&A news: 

• TRGP -1.7% (acquires Delaware and Midland Basin Assets for $565 mln; commences 7 mln common stock offering), .

Select oil/gas related names showing early weakness:

• SDRL -1.6%, RIG -0.9%, SLB -0.5%, HAL -0.5%, WLL -0.5%

Other news:

• KRNT -4.5% (public offering of 7 mln ordinary shares by its largest shareholder)
• WGO -4.4% (files for offering of 4,586,555 shares of common stock by holders)
• QCOM -3.9% (Apple lawsuit/patent dispute)

Analyst comments: N/A

 Qualcomm downgraded to Underperform from Buy at CLSA  (62.88)

 Vale S.A. upgraded to Buy from Neutral at Citigroup  (10.03)

 European Summary

Schatz Yield Touches 5-Week High

• European sovereign debt yields are moving lower this morning as U.S. Treasuries rally and equity market weakness pushes investors into safe havens. France's 10-year OAT yield again came within a whisker of a one-year high (0.92%). Purchasing managers' indices for Germany, France, and the entire eurozone are due out on Tuesday. The survey data has been very strong lately so these are releases to watch
• The German two-year Schatz yield traded as high as -0.68% this morning after touching a low of -0.84% on December 29 of last year. The benchmark for short-term eurozone interest rates has now almost fully unwound its post-December ECB rally in prices (which move inversely to yields). Given that the European Central Bank's deposit rate (-0.40%) is much higher than the Schatz yield, there are only three reasons to own these securities. First, you think that there will be significant further cuts to the depo rate, which appears quite unlikely at the moment. Eurozone inflation dynamics are improving and the ECB's first move to ease policy would likely by stepped up asset purchases because cutting the deposit rate could (and has) hurt the banks. Second, you own the Schatz for regulatory purposes which could be very important if you are a bank. Third, you want to take a shot on the breakup of the eurozone, in which case your Schatz could be paid back with sharply appreciated Deutsche Marks. Also, the European Central Bank removed its deposit yield floor for the securities that its asset purchase scheme buys at the December 7-8 meeting, so expecting to sell to the ECB's program could be considered a fourth reason. None of these looks very compelling to us and yet the yield first touched its current level in June and has made no progress higher since that time. The 50-day moving average is at -0.73%
• The European Union said today that the U.K. cannot negotiate trade deals with any other countries until after it has left the EU
• European Economic Data:
  
  • In Spain, industrial orders increased by 6.9% y/y in November, accelerating from October's 3.4% rate
  • Denmark's consumer confidence index jumped to 4.5 in January from -0.3 in December
  • The eurozone's government debt/GDP ratio fell to 90.1% at the end of Q3 2016 from 91.2% at the end of Q2 2016
    
    • Greece: 176.9%
    • Germany: 69.4%
    • Italy: 132.7%
    • Portugal: 133.4%
• Yield Check:
  
  • France, 10-yr OAT: -3 bps to 0.89%
  • Germany, 10-yr Bund: -3 bps to 0.39%
  • Greece, 10-yr note: -5 bps to 6.98%
  • Italy, 10-yr BTP: unch at 2.03%
  • Portugal, 10-yr PGB: unch at 3.85%
  • Spain, 10-yr ODE: unch at 1.50%
  • U.K., 10-yr Gilt: -4 bps to 1.39%

 S&P futures vs fair value: -4.80. Nasdaq futures vs fair value: -10.10.

The S&P 500 futures trade five points (0.2%) below fair value.

Equity indices in the Asia-Pacific region began the week on a mixed note with Japan's Nikkei (-1.3%) showing relative weakness amid strength in the yen (113.39). The Japanese currency has added 1.1% against the dollar, and continued uncertainty surrounding President Donald Trump's policies was cited for the retreat in the buck. President Trump announced that the U.S. will withdraw from the Trans-Pacific Partnership, but New Zealand Prime Minister Bill English said that some form of a free trade agreement with the US remains a possibility.

• In economic data:
  • Japan's All Industries Activity Index +0.3% month-over-month (expected 0.4%; last 0.0%) and Leading Index 102.8 (expected 102.7; previous 102.7)
  • Hong Kong's December CPI +1.2% year-over-year (last 1.2%)
  • Singapore's December CPI +0.2% year-over-year (consensus 0.1% last 0.0%)

---Equity Markets---

• Japan's Nikkei lost 1.3% amid broad weakness. Olympus, JTEKT, Yamaha Motor, Hino Motors, KDDI, Kikkoman, Fast Retailing, Mazda Motor, Casio Computer, and Mitsubishi Motors lost between 2.1% and 3.0%. Toshiba rebounded from recent weakness, spiking 9.1%.
• Hong Kong's Hang Seng edged up 0.1%. Consumer and gaming names outperformed while energy listings were mixed. China Mengniu Dairy, Sands China, Galaxy Entertainment, and Want Want China gained between 1.0% and 1.2% while China Shenhua Energy and China Petrol & Chemical added 1.2% and 0.5%, respectively. PetroChina and CNOOC both lost near 0.8%.
• China's Shanghai Composite gained 0.4%, benefiting from a temporary reserve requirement ratio cut by the People's Bank of China that was announced after Friday's closing bell. Lunar New Year celebrations will begin at the end of this week. China Television Media, Shen Ma Industry, Jiangxi Copper, and Dalian Thermal Power advanced between 4.7% and 6.3%.
• India's Sensex rose 0.3%. GAIL, Tata Steel, and ITC outperformed with gains between 1.4% and 2.4% while financials were mixed. ICICI Bank and AXIS Bank posted respective losses of 2.3% and 1.2% while HDFC Bank and SBI both climbed near 1.1%.

Major European indices trade in negative territory with the UK's FTSE (-0.7%) showing relative weakness. In France, the first round of Socialist primaries was won by Benoit Hamon with round two coming up on Sunday. However, the Socialist candidate is not expected to beat Francois Fillon or Marine Le Pen in the April election. British Prime Minister Theresa May is scheduled to meet US President Donald Trump on Friday to discuss trade and commitments to NATO.

• In economic data:
  • Investors did not receive any economic data today

---Equity Markets---

• France's CAC is lower by 0.5%. Financials lag with Societe Generale, Credit Agricole, and BNP Paribas down between 1.3% and 2.2%. Nokia Oyj is the weakest performer, down 2.7%, while select consumer names show gains. Danone, Louis Vuitton, L'Oreal, and Pernod Ricard are up between 0.1% and 1.4%.
• Germany's DAX has shed 0.5% amid losses in all but four components. Drugmakers Merck and Bayer are both down near 1.0% while Commerzbank, BMW, and Daimler are down between 0.3% and 1.6%. Volkswagen outperforms, rallying 3.1%, after Goldman Sachs put the stock on its Conviction Buy List.
• UK's FTSE is down 0.7% with bank shares on the defensive. RBS, Barclays, Lloyds Banking, HSBC, and Standard Chartered hold losses between 1.3% and 2.4%. Consumer names like Paddy Power, Tesco, Marks & Spencer, and Dixons Carphone underperform with losses between 1.4% and 3.6%.

 On The Wires

• Bravo Brio Restaurant Group (BBRG) acknowledged receipt and issued the following response to the letter sent to the Board of Directors by TAC Capital LLC on January 19, 2017. «Bravo Brio Restaurant Group is committed to executing a business strategy aligned with the best interests of the Company and all of its shareholders. The Company regularly engages in open and transparent dialogue with its investors and will always consider constructive input that helps drive long-term shareholder value.»
• Lowe's Companies (LOW) announced that Jocelyn Wong has been appointed to the position of chief marketing officer, effective immediately. Wong most recently served as senior vice president and general merchandising manager for the seasonal business.
• ORBCOMM Inc. (ORBC) selected by B.A.H. Express, Inc. (BAH) to provide an asset tracking solution for its dry van trailer fleet. B.A.H. expects to complete deployment of ORBCOMM's solution in 3Q17.
• EnerNOC, Inc. (ENOC) announced that it will begin providing energy sourcing and advisory services in the recently de-regulated Mexican electricity market. One of EnerNOC's initial engagements in the region includes a procurement contract with a leading automotive systems and components supplier to design and manage a competitive energy sourcing process, as well as provide ongoing market intelligence and consulting services to optimize the company's energy budget and risk management strategy.
• Finjan Holdings, Inc. (FNJN) announced that its subsidiary Finjan, Inc. filed a complaint on January 19, 2017 against its licensee, Avast Software (AVST), and its newly acquired company AVG Technologies, in the U.S. District Court for the Northern District of California (Case No. 3:17-cv-00283). Finjan is suing Avast for breach of contract and breach of the covenant of good faith and fair dealing; and both Avast and AVG for willful infringement of Finjan's patents, including U.S. Patent Nos. 6,154,844; 7,930,299; 7,975,305; 8,079,086; 8,141,154; and 8,677,494.
• PositiveID Corporation (PSID) entered into a new distribution agreement with MedPro Associates. MedPro will market Caregiver primarily to the alternate site and long-term care markets, along with targeted acute care facilities.
• Recon Technology, Ltd. (RCON) announced the recent delivery of furnace equipment to PetroChina Changqing Oilfield Company, China's largest oilfield company and a subsidiary of PetroChina (PTR).
• Immune Pharmaceuticals Inc. (IMNP) announces that it has entered an exclusive sub-license agreement with SATT Sud-Est, a French Technology Transfer Office, to develop, use, manufacture and commercialize mono- and bispecific antibodies targeting components of the tumor microenvironment and angiogenic factors. The research program will be carried out under the responsibility of Inserm, National Center for Scientific Research, University Cote d'Azur, Scientific Center of Monaco, and Immune Pharmaceuticals.
• Novelion Therapeutics Inc. (NVLN) announced that the European Medicines Agency has accepted for review the Marketing Authorization Application for metreleptin as replacement therapy to treat complications of leptin deficiency in patients with congenital or acquired generalized lipodystrophy and in a subset of patients with partial lipodystrophy. The MAA was filed in December 2016. An opinion from the Committee for Medicinal Products for Human Use is expected in December of 2017, and decision is expected in the first quarter of 2018.
• A distribution agreement has been signed between Ewopharma and Biogen (BIIB) to market and sell the company's anti-Tumor Necrosis Factor (anti-TNF) biosimilars. Starting in 2017, Ewopharma will bring BENEPALI (etancercept) and FLIXABI (infliximab) to six countries, Romania, Bulgaria, Croatia, Estonia, Latvia and Lithuania. BENEPALI and FLIXABI are indicated to treat a number of inflammatory diseases, including Rheumatoid Arthritis, Psoriasis, Ankylosing Spondylitis and Inflammatory Bowel Disease.

 FMC Corp downgraded to Neutral from Accumulate at Seaport Global Securities; tgt $60  (60.31)

 Manitex Intl says considering strategic alternatives for A.S.V., LLC, its joint venture with Terex (TEX) (shares halted)  (9.27)The Board's review will include the possibility of a sale of all or a portion of ASV or Manitex's ownership stake (51%) in ASV, as well as the possibility of ASV becoming a public company.

 

 trivago: Norges Bank lowers passive stake to 4.83% (Prior 5.83%)  (11.50)

 Diamondrock Hospitality repeats FY16 guidance in slide presentation  (11.38)

• Co reaffirms guidance for FY16 (Dec), sees funds from operations of $0.99-1.04 vs. $1.01 Capital IQ Consensus Estimate.; DRH is expecting ~2% supply growth in 2017, in line with peer average.

Filings, Offerings and Pricings

Filings:

• Agenus (AGEN) files for 157,513 share common stock offering by selling shareholders
• Cachet Financial (CAFN) files for offering of up to 13.8 mln shares of common stock
• Lee Enterprises (LEE) files for $750 mln mixed securities shelf offering
• Mimecast (MIME) files for $50 mln mixed securities shelf offering and 20,539,000 ordinary shares by selling shareholders
• Nemus Bioscience (NMUS) files for 11,905,500 share common stock offering by selling shareholders
• Pinnacle Financial Partners (PNFP) files for mixed securities shelf offering; size undisclosed
• US Foods (USFD) files for 30 mln share common stock offering by holders in amended S-1 filing
• Winnebago Inds (WGO) files for offering of 4,586,555 shares of common stock by holders
• yatra Online (YTRA) files for offering of 6.3 mln ordinary shares by selling shareholders

Offerings:

• Ares Capital (ARCC) announces $250 mln private offering of its Convertible Notes due 2022
• Kornet Digital (KRNT) announces the launch of a public offering of 7 mln ordinary shares (2 mln by the company, 5 mln by selling shareholders)
• Targa Resources (TRGP) commences 7 mln common stock offering

Pricings:

• Star Bulk Carriers (SBLK 9.06) announces $51.5 mln aggreements for a private placement of common shares at $8.154/share

 Manitex Intl to resume trading at 09:50

 S&P futures vs fair value: -3.30. Nasdaq futures vs fair value: -6.90.

The stock market is on track to begin one of the busiest weeks of the earnings season lower as the S&P 500 futures trade three points below fair value. 

Around 20.0% of the S&P 500 will be reporting quarterly results this week with McDonald's (MCD 121.20, -1.06) and Halliburton (HAL 55.65, -0.80) kicking off the action this morning. The two names show respective pre-market losses of 0.9% and 1.4% after reporting lackluster results. Halliburton missed on revenues while the concern with McDonald's is likely due to uncertainty about first-quarter sales.

In other corporate news, Qualcomm (QCOM 59.71, -3.17) is down 4.9% amid news of a lawsuit, by Apple (AAPL 119.85, -0.15), over patent royalties. Qualcomm issued a statement this morning, saying Apple's claims are baseless.

Crude oil is at a fresh low, down 1.6% at $52.35/bbl. The commodity has seen continued weakness over concerns that U.S. production is ticking up, evidenced by last Friday's rig count data. The report showed the biggest single weekly oil rig count increase in 4 years.

Conversely, U.S. Treasuries are up this morning, climbing closer to their overnight highs in recent action. The benchmark 10-yr yield is down three basis points at 2.44%.

Investors will not be receiving any economic data today.

 Finisar limps into the open, stock down about -6.7% premarket following cautious Rosenblatt comments regarding possible firmware issues with optical transceiver; firm further mentions OCLR/LITE as possible beneficiaries of FNSR weakness  (30.00)

 

 Hearing Citizens Financial Group, SunTrust Banks (STI) were upgraded to Buy ratings premarket at Rafferty   (35.65 -0.17)

 Qualcomm gaps -9% lower, below its 200-day simple moving average, to test its July bullish gap zone near $56 area.  (57.19 -5.69)

 Hearing NRG Energy was upgraded to Outperform from Peer Perform at Wolfe Research  (16.46 +0.35)

 Hearing Calpine was downgraded to Peer Perform from Outperform at Wolfe Research  (12.09 +0.02)

 Auto parts manufacturers/suppliers are under pressure following NYPost report on (AMZN) entering the space — see 7:06 comment

• AZO -4.4%, ORLY -3.9%, AAP -3.1%, AXL -2%, MPAA -1.6%, PAG -1.3%, TWI -1%, SRI -0.6%, ALV -0.6%, TEN -0.6%, ABG -0.6%, LEA -0.5%, GT -0.5%

 Microsoft shows early relative strength as price jumps over last week's «inside range» highs along the 63-level  (63.02 +0.28)

• Note earnings are scheduled for this week, January 26.

 DryShips -15% after completing its 1-for-8 reverse stock split   (6.85 -1.23)As of 1/19, the Company had 69,357,841 common shares issued. Effecting the reverse stock split reduced the number of issued common shares from 69,357,841 shares to approximately 8.7 million shares.

 Pandora Media shares moving slightly higher in recent trade; Hearing renewed Sirius XM (SIRI) for Pandora M&A speculation circulating  (13.37 +0.12)

 

 Targa Resources prices upsized underwritten public offering of 8 mln shares of its common stock at $57.65/share (shares halted)  (60.05)

 Opening Market Summary: Stock Market Opens Week Flat

The stock market opened the week relatively flat as the major averages hover near their flat lines.

Materials (+0.3%), technology (+0.2%), and utilities (+0.2%) have taken the lead early while consumer discretionary (-0.3%) and energy (-0.4%) lag. Energy's underperformance can be credited, in part, to the poor showing from crude oil, which is down 1.3% at $52.53/bbl.

Treasuries have returned to their flat lines after residing in positive territory for most of the overnight session. The benchmark 10-yr yield is unchanged at 2.46%. 

 Economic Summary: No US data today; Existing Home Sales due out tomorrow at 10:00 ET

Upcoming Economic Data:

• December Existing Home Sales due out Tuesday at 10:00 (November was 5.61 M )

Upcoming Fed/Treasury Events:

•  The Treasury is scheduled to auction off new debt this week. 
  • $26 bln in 2 Year Treasury Notes — Tuesday at 13:00 ET
  • $34 bln in 5 Year Treasury Notes — Wednesday at 13:00 ET
  • $28 bln in 7 Year Treasury Notes — Thursday at 13:00 ET

Other International Events of Interest

• Japan's All Industries Activity Index +0.3% month-over-month (expected 0.4%; last 0.0%) and Leading Index 102.8 (expected 102.7; previous 102.7)

 Sector Summary: Technology (XLK -0.16%) trading lower today, mostly in-line with the broader market

The tech sector — XLK — trades mostly in-line with the broader market. Semiconductors, meanwhile, display relative weakness as the SOX index trades -0.74%. Within the SOX index, SWKS (+1.64%) outperforms, while CREE (-1.16%) lags. Among other major indices, the SPY is trading 0.15% lower, while the QQQ -0.05% and the NASDAQ +0.25% trade opposite on the session. Among tech bellwethers, NVDA (+1.12%) is showing relative strength, while HPE (-0.57%) lags.

Gainers on news:

• HMNY (+5.6%) co named Chairman of the Board Theodore Farnsworth as CEO.
• S (+1.2%) co acquired 33% of Tidal; terms not disclosed.
• SLAB (+0.5%) co acquired Zentri; terms not disclosed.
• MIME (+0.4%) co filed for $50 mln mixed securities shelf offering and 20,539,000 ordinary shares by selling shareholders.

Laggards on news:

• QCOM (-11.4%) co issued a comment regarding the reported Apple (AAPL) complaint.
• PRKR (-9.2%) co received notice from Nasdaq Listing Qualifications Department for its market value.
• NCIT (-8.2%) co discovered that its controller, acting alone, embezzled money from the Company.
• IBM (-0.2%) co to acquire Agile 3 Solutions; terms not disclosed.

Among notable analyst upgrades:

• MSI (-0.0%) upgraded to Buy from Neutral at Citigroup
• TSU (+3.5%) to Overweight from Equal Weight at Morgan Stanley

Among notable analyst downgrades:

• QCOM (-11.4%) downgraded to Neutral from Buy at Instinet
• QCOM (-11.4%) to Underperform from Buy at CLSA
• WK (-6.4%) to Equal Weight from Overweight at Morgan Stanley
• TVPT (-3.3%) to Equal Weight from Overweight at Morgan Stanley
• VZ (-0.4%) to Market Perform from Outperform at Wells Fargo

Scheduled to report earnings after the bell:

• MRCY, SIMO, YHOO

Scheduled to report earnings tomorrow morning:

• AVX, GLW, SAP, VZ

 

 Hearing Microsoft was upgraded to Buy from Neutral at Tigress Financial  (62.84 +0.10)

 Targa Resources shares resume trading  (58.31 -1.74)

 

 Morning Commodities: Crude slips 1.5% as rising US output outweighs the first confirmed evidence of compliance with the OPEC/non-OPEC production cut agreement

• Crude oil slid about 1.5% in morning pit trading as rising US output outweighed the first evidence of OPEC/non-OPEC compliance with the production cut accord
  • Feb 2017 crude oil futures were down $0.80 (-1.5%) around the $52.40/barrel level ahead of tomorrow's API — see 7:29 am ET comment
  • Reminder: Friday's rig count data showed the biggest single weekly oil rig count increase in 4 years. The U.S. oil rig count increased by 29 to 551 rigs last week.
  • Highlights of Sunday's OPEC/non-OPEC cut compliance committee meeting:
    • Data from the meeting confirmed that 1.5 mln barrels of oil/day out of the planned 1.8 mln barrels/day have already been cut, & the participating countries remain on track to achieve 1.7 mln barrels/day in total output reductions by the end of this month.
    • Russian Energy Minister Alexander Novak expressed that all countries are sticking to the deal and that results are above expectations.
    • OPEC and other oil producers agreed on a specific method to monitor ongoing production cut compliance at the meeting going forward.
  • Upcoming data reminders:
    • Weekly API data will be released tomorrow after the bell.
    • Weekly EIA data will be released this Wed at 10:30 am ET.
    • Weekly Baker Hughes rig count data will be released this Friday at 1 pm ET.
• Natural gas drifted modestly higher ahead of Thursday's weekly EIA data release
  • Feb 2017 natural gas futures were up about $0.02 (+0.5%) around the $3.23/MMBtu level
  • Weekly EIA data will be released Thursday at 10:30 am ET.
• In precious metals, gold rallied near a 2-month high; gold & silver traded higher & in tandem on notable dollar index weakness following the weekend's comments from President Trump regarding the strength of the dollar
  • Feb 2017 gold futures were up $10.20 (+0.9%) around the $1215.20/oz level
  • Mar 2017 silver futures were up $0.15 (+0.9%) around the $17.19/oz level
• The dollar index was -0.4% around the 100.30 level, boosted precious metals
  • Commodities, as measured by the Bloomberg Commodity Index, were +0.04% around the 88.41 level

 EnteroMedics: CVI Investments lowers passive stake to 0.3% (Prior 9.9%)  (8.05 +0.09)

 Notable movers of interest: QCOM -13.9% following Apple (AAPL) lawsuit

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

• S (9.14 +2.35%): Acquires 33% of music streaming service Tidal; financial terms were not disclosed.
• DISH (61.49 +2.24%): Mogran Stanley Upgrades to Overweight from Equal-Weight. 

Large Cap Losers

• QCOM (54.12 -13.93%): Shares drop on reports the company has been sued by Apple (AAPL) over patent royalties.
• AZO (732.01 -4.94%): Auto parts manufacturers/suppliers are under pressure following NYPost report on (AMZN) entering the space (ORLY, AAP, AXL...)
• HAL (54.45 -3.54%): Reports Q4 EPS beat, and misses on revenues.

Mid Cap Gainers

• KATE (18.55 +4.45%): Shares rise following Friday speculation AH of possible bidders.
• LPL (13.94 +3.72%): Agrees to begin supplying Samsung (SSNLF) with liquid-crystal displays (LCDs), according to a Bloomberg report.

Mid Cap Losers

• FNSR (27.33 -8.9%): Shares fall following cautious Rosenblatt comments regarding possible firmware issues with optical transceiver.
• NBR (17.03 -3.15%): Crude names trade lower after Crude slips 1.5% as rising US output outweighs the first confirmed evidence of compliance with the OPEC/non-OPEC production cut agreement (PTEN, RIG, SPN...). 

 

 Rumor Round Up

Rumor Activity was active today

• Bloomberg reported that Coach (COH 35.41 +0.10) and Michael Kors (KORS 42.59 +0.13) might make a bid for Kate Spade (KATE 18.38 +0.62).
• Renewed Sirius XM (SIRI 4.61 +0.02) for Pandora (P 13.38 +0.13) M&A speculation circulated.
• M&A blogger Ben Harrington (Betaville) teased a potential story later this week regarding ZELTIQ Aesthetic (ZLTQ 42.05 +0.82).
• Semana reported that the Avianca Holdings (AVH 8.17 -1.28) has yet to reach an agreement with a partner amid its pending search for a strategic investor.
• There was a report that Ixia (XXIA 16.00 +0.15) might be subject of potential private equity interest.

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.

 Northwest Bancshares reports Q4 net income per share of $0.24 vs $0.26 Capital IQ Consensus; increases quarterly cash dividend to $0.16/share from $0.15/share  (17.38 -0.12)

 

 Aetna — volume alert  (120.68 -1.85)

 Humana — volume alert  (191.16 -9.37)

 Today's biggest point gainers/losersBiggest point gainers: NTES 247.4(5.06), CYNO 47.95(4.1), TSLA 248.66(3.93), WAT 145.16(3.72), PSA 220.61(2.64), OLED 61.55(2.5), GLBS 11.98(2.28), GOLD 84.97(2.08), STZ 151.99(1.91), DISH 61.79(1.65), BIDU 175.06(1.62), SWKS 90.25(1.58), WYNN 92.33(1.51), SLGN 56.23(1.45), BTI 118.67(1.37), INCY 118.56(1.34), SWIR 17.1(1.3), HD 136.82(1.22), TLT 121.13(1.19), PII 87.49(1.17), EXR 74.57(1.15), AEM 46.76(1.12), TGH 11.4(1.05), CONE 51.02(1.03), BABA 97.08(1.02)

Biggest point losers: ORLY 266(-8.01), QCOM 54.97(-7.91), TDG 222.15(-4.75), AAP 166.95(-4.56), GPC 96.1(-3.64), KSU 85.1(-2.81), PXD 182.36(-2.61), IBB 270.91(-2.52), IONS 44.69(-2.28), SLB 84.38(-2.12), PANW 140.04(-2.07), ANTM 148.6(-2.03), UAL 73.21(-2.03), AGIO 40.35(-1.93), AMGN 152.79(-1.88), TRGP 58.21(-1.84), UNP 106.95(-1.66), PBYI 30.65(-1.6), LMT 256.13(-1.6), ANET 88.21(-1.59), APD 145.03(-1.59), HAL 54.88(-1.58), AMBA 47.33(-1.53), GIMO 32.7(-1.5), EOG 103.98(-1.49)

 Aetna and Humana (HUM) weakness attributed to unfavorable Court ruling regarding merger review  (121.00 -1.53)Other Potential Related Stocks: CI

 Humana follow-up: A judge has blocked the company's pending merger with Aetna (AET), according to reports  (195.80 -4.73)Bloomberg Article (Developing Story) Related Tickers: MOH -2.35%, ANTM -1.89%, HCA -1.39%, WCG -1.24%, CI -0.54%, etc..

 President Trump signs executive order withdrawing from Trans-Pacific Partnership, as widely expected  (225.37 -1.36)

 

 

 European Markets Closing PricesEuropean markets are now closed; stock markets across Europe performed as follows:

• UK's FTSE: -0.7%
• Germany's DAX: -0.7%
• France's CAC: -0.6%
• Spain's IBEX: -0.8%
• Portugal's PSI: -0.9%
• Italy's MIB Index: -0.8%
• Irish Ovrl Index: -0.6%
• Greece ASE General Index: + 0.0%

 

 

 Today's most active stocksThe following are today's most active stocks ranked by volume and relative volume, categorized by sectors (over $300 mln market cap and 100K average daily volume).

Today's top 20 volume

• Healthcare: BMY (12.93 mln +1.75%), VRX (10.48 mln -4.28%), PFE (9.59 mln -0.61%)
• Materials: VALE (17.79 mln +3.79%), AKS (12.22 mln -3.52%), ABX (9.43 mln +2.98%)
• Industrials: GE (24.95 mln -2.72%), CSX (10.23 mln +1.58%)
• Consumer Discretionary: F (13.85 mln -1.01%), JCP (9.24 mln +0.15%)
• Information Technology: QCOM (53.48 mln -11.93%), AAPL (11.29 mln -0.12%), INTC (10.02 mln -0.46%), AMD (9.92 mln +0.88%)
• Financials: BAC (31.72 mln -0.68%), C (10.12 mln -0.84%)
• Energy: CHK (13.71 mln -1.57%), HAL (9.22 mln -4.06%)
• Consumer Staples: RAD (17.81 mln -3.35%)
• Telecommunication Services: S (9.99 mln +3.53%)

Today's top relative volume (current volume to 1-month average daily volume)

• Healthcare: CYNO (4.15x +8.27%), HUM (2.99x -1.32%)
• Industrials: GOGL (2.66x +6.93%), TDG (2.61x -2.5%)
• Information Technology: QCOM (6.57x -11.93%), XXIA (2.89x +1.1%), NQ (1.82x +8.04%), NXPI (1.81x -1.41%), SWIR (1.76x +9.49%), HOLI (1.75x -2.12%), FNSR (1.74x -3.87%), SIMO (1.72x -1.57%)
• Financials: PPT (10.49x +2.99%), BANC (3.16x -6.5%), PNFP (2.62x +0.32%), BNCN (2.2x -0.9%), ACWX (2.16x -0.04%)
• Energy: TRGP (1.88x -3.85%), XCO (1.7x -18.65%)
• Utilities: GLBL (8.17x +11.25%)

 Currency Commentary: DXY Eyeing Test of 100

• The Dollar Index continues to slide toward the 100 psyche level in a key test for support. The DXY has been in a steady decline since last week when President Trump noted his concern about the dollar strength. There is also some questions about the border tax that has been discussed and is viewed as a key element for inflation expectations. Earnings and Executive actions will dominate headlines this week but there is also some key economic data including Existing Home Sales and Preliminary PMIs (Tue) and the first glance at Q4 GDP and Durable Orders (Fri).
• The euro is hitting a seven week high as it climbs above the 1.07 level. A Bundesbank report today suggested the region was seeing inflation picking up. The primary driver was energy prices with the rebound in oil and the comments echo what we heard last week at the ECB meeting. The idea that inflation is picking up has helped boost the single currency as market participants are questioning if the central bank will be able to continue to support markets if pricing pressures fail to abate.
• The pound has continued its move higher as it was able to break above the 50-sma/1.24 resistance area. The 100-sma (1.2527) is moving into focus. This morning it was announced that Theresa May would visit the White House on Friday. The U.S. is the country's second biggest trading partner (behind Germany) and the relationship will be a cornerstone of May's trade renegotiation plans. There is also chatter that she plans on going to China in the next week to begin talks.
• The yen has held its 50-sma and has move back into the 112 area. Buying appears to be a safe haven play. The 112.50 area will be key to watch after it held resistance last week.
• The yuan has remained in a tight range as we approach the Chinese New Year. Capital flight from the region has appeared to cool which is allowing for an easier maintenance of the currency (BONDX, FOREX).

 Market Internals

The broader market is in the midst of a negative bias at the moment, led to the downside by the S&P 500 which loses 14 points at the moment (-0.61%) to 2257, the Nasdaq Composite sheds about 28 (-0.50%) to 5527, and the Dow Jones Industrial Average is lower by 90 (-0.46%) to 19737. Action has come on lower than average volume (NYSE 273 vs. avg. of 344; NASDAQ 716 mln vs. avg. of 802), with decliners outpacing advancers (NYSE 1296/1688, NASDAQ 858/1876) and new highs outpacing new lows (NYSE 72/12, NASDAQ 76/42).

Relative Strength:

Silver Miners-SIL +2.8%, Gold Miners-GDX +2.5%, Jr. Gold Miners-GDXJ +2.5%, Cotton-BAL +2.4%, Philippines-EPHE +2.1%, Coffee-JO +2.1%, Sugar-SGG +1.8%, Short-Term Futures-VXX +1.7%, S. Africa-EZA +1.5%, Japanese Yen-FXY +1.5%, Saudi Arabia-KSA +1.4%, Mexico-EWW +1.4%, Peru-EPU +1.4%, India-INP +1.2%.

Relative Weakness:

Oil Svcs.-OIH -3.3%, US Energy-IYE -1.5%, Energy-XLE -1.5%, Oil&Gas E&P-XOP -1.4%, Transportation-IYT -1.4%, US Healthcare Prov.-IHF -1.3%, Semis-SMH -1.2%, Australia-EWA -0.9%, Greece-GREK -0.9%, Nordic 30-GXF -0.8%, Sweden-EWD -0.7%, Italy-EWI -0.7%, Netherlands-EWN -0.6%, Pacific Ex-Japan-EPP -0.6%.

 Pinnacle Foods in slides sees FY 16 net sales of $3.125-3.13 bln vs $3.124 consensus estimate  (53.22 -0.07)

 Mercer Intl downgraded to Hold from Buy at Standpoint Research  (11.70 +0.30)

 

 AutoNation — volume alert  (52.32 +0.63)

 Earnings Calendar for Monday, January 23rd

• Today after the close look for the following companies to report:
  • YHOO, ZION, RMD, WWD, BRO, JJSF, ELS, SIMO, NBTB, MRCY, HMST
• Tomorrow before the open look for the following companies to report:
  • VZ, JNJ, LMT, MMM, BABA, PHG, SAP, TRV, DD, KMB, DHI, GLW, FITB, AKS, PII, ATI, WAT, PLD, BPOP, AVX, EXP, JNS, NORD, IIVI, HZO, ONB, FBC, PPBI, ABTX

 Biogen: Anthem (ANTM) issues coverage document for BIIB's Nusinersen   (277.52 -3.14)

 

 

 

 Denison Mining: Beutel, Goodman & Company discloses 5.49% passive stake  (0.73 +0.02)

 Teva Pharma shares seeing some weakness in recent trade; move attributed to FTC anti-compeitive lawsuit against pharma cos (see 13:30)  (32.28 -0.95)Related Stocks: ENDP, AGN