Америка сегодня. Ставка, запасы нефти, индекс цен производителей и заявки на покупку домов по ипотеке.

Colfax upgraded to Buy from Accumulate at Seaport Global Securities  (39.00)

 

 The Bancorp downgraded to Mkt Perform from Strong Buy at Raymond James  (5.99)

 21st Century Fox upgraded to Buy from Neutral at MoffettNathanson  (31.38)

 NuStar Energy downgrade details — to Hold at Stifel; tgt raised to $52  (55.31)Stifel downgrades NS to Hold from Buy and raises their tgt to $52 from $50. NuStar Energy L.P. reported results below firm's expectations with Adjusted EBITDA of $141.4 mln compared to firm's estimate of $148.6 mln and the consensus Street estimate of $146.9 mln. Eagle Ford production levels continue to impact cash flows, although mgmt highlighted a potential recovery in 2H17. The partnership maintained 2017 Adjusted EBITDA guidance of $600 mln to $650 mln, although firm's expectations are now at the low end. Growth capex guidance was adjusted lower due to a partial deferral of the PMI JV spending, along with other projects. While NuStar continues to provide stable cash flows with a solid yield, they are lowering rating, and adjusting tgt modestly higher.

 

 Nordson, Oshkosh (OSK) upgraded to Buy at Seaport Global Securities  (113.53)

 

Seaspan initiated with a Underweight at Morgan Stanley  (9.60)

 Audiocodes target raised to $8 from $6 at Needham following earnings; Buy  (6.60)

 On The Wires

• Concordia International Corp. (CXRX) announced that it has paid the second and final installment of its earn-out to Cinven relating to Concordia's October 2015 acquisition of Amdipharm Mercury Limited.  Today's payment of £72 million, plus interest of approximately £1.5 million, was paid with cash on hand.
• Great Basin Scientific, Inc. (GBSN) announced the completion of the clinical trial and 510(k) submission to the FDA of its Bordetella Direct Test. The Company's sample-to-result test detects Bordetella pertussis directly from the patient specimen, identifying the bacterium behind the highly-contagious respiratory disease commonly known as whooping cough. The Company is also seeking a CE mark for this test.

 

 European Markets Update: FTSE +0.6%, DAX +1.0%, CAC +1.2%

Major European indices trade higher across the board with France's CAC (+1.2%) showing relative strength. The euro trades little changed against the dollar after climbing into the 1.0800 area yesterday. Meanwhile, the pound (1.2641) is up 0.5% against the greenback. Not long ago, British Prime Minister Theresa May said a white paper that contains the Brexit strategy will be published tomorrow. Participants received a full slate of PMI readings from the region, but the results were mixed.

• In economic data:
  • Eurozone January Manufacturing PMI 55.2 (expected 55.1; last 55.1)
  • Germany's January Manufacturing PMI 56.4 (consensus 56.5; previous 56.5)  
  • UK's January Manufacturing PMI 55.9, as expected (last 56.1). January Nationwide HPI +0.2% month-over-month (expected 0.3%; last 0.8%); +4.3% year-over-year (consensus 4.4%; previous 4.5%)
  • France's January Manufacturing PMI 53.6 (expected 53.4; previous 53.4)  
  • Italy's January Manufacturing PMI 53.0 (consensus 53.2; last 53.2)  
  • Spain's January Manufacturing PMI 55.6 (expected 55.0; previous 55.3)  
  • Swiss January SVME PMI 54.6 (consenssu 55.8; previous 56.2)

---Equity Markets---

• UK's FTSE has climbed 0.6% with select drugmakers and miners contributing to the strength. Hikma Pharmaceuticals and Shire are both up near 2.0% while Anglo American, BHP Billiton, Rio Tinto, and Fresnillo show gains between 1.1% and 1.6%. On the downside, consumer names like Dixons Carphone, Tesco, Kingfisher, and Diageo show losses between 0.2% and 0.9%.
• Germany's DAX trades up 1.0% with conglomerate Siemens jumping 4.6% after boosting its profit forecast. Deutsche Bank has gained 2.5% while exporters like Volkswagen, Daimler, and BMW are up between 0.8% and 1.6%.
• France's CAC has added 1.2% with help from most components. Growth-sensitive names like Schneider Electric, ArcelorMittal, TechnipFMC, and LafargeHolcim are up between 2.5% and 3.9% while automakers Peugeot and Renault hold gains close to 2.0% apiece.

 Advanced Energy target raised to $70 at Needham  (58.00)Needham raises their AEIS tgt to $70 from $65 after reporting strong 4Q16 results and providing 1Q guidance above consensus. In SemiCap and the greater ThinFilm processing markets, firm believes AEIS's power supplies and RF matches are core technologies enabling critical differentiation in etch and deposition processes, driving demand from its customers and AEIS's organic growth. Coupled with inorganic growth efforts through potential Industrial M&A activity, firm sees good opportunities for AEIS to deliver continuing profitable growth ahead. The stock pulled-back yesterday likely on high expectations and fear for limited upside to margins, but firm is aggressive buyers here; Buy.

 Under Armour downgraded to Underperform from Buy at Buckingham Research  (21.49)

 Howard Bank initiated with a Strong Buy at Raymond James; tgt $20  (17.15)

 F5 Networks added to Short-Term Sell List at Deutsche Bank  (134.03)

 

 Marathon Oil upgraded to Sector Outperform from Sector Perform at Scotia  (16.75)

 

 IPO Radar: Mixed Performance for Pricings This Morning; Pharmaceutical IPO Next in Line to PriceIPOs Opening Today:

• Invitation Homes (INVH): The REIT owning & operating single-family homes for lease focused on Western US and Florida priced its 77.0 million share IPO at $20, towards the high end of the $18-$21 expected range. 

• Laureate Education (LAUR): The operator of the largest global network of degree-granting higher education institutions priced its upsized 35.0 million share IPO at $14, well below the $17-$20 expected range. 

Upcoming IPOs:

• February 2: Braeburn Pharmaceuticals (BBRX) — The commercial stage pharmaceutical company developing long-acting medications for disorders of central nervous system is expected to price its 7.7 million share IPO within a range of $18-$21.

• February 3: IC Power (ICP) — The owner, developer and operator of power facilities located in key power generation markets in Latin America, the Caribbean and Israel is expected to price its 25.9 million share IPO within a range 12-$15.

• February 3: Kimbell Royalty Partners (KRP) — The limited partnership formed to own & acquire mineral royalty interests in oil & natural gas properties in US is expected to price its 5.0 million unit IPO within a range of $19-$21.

• February 3: Ramaco Resources (METC) --The miner of metallurgical coal in West Virginia, Virginia, and southwestern Pennsylvania is expected to price its 6.0 million share IPO within a range of $12-$15.

 International Seaways initiated with a Buy at Clarkson Platou; $27 tgt  (17.38)

 

 Overstock.com target raised to $23 at Maxim Group  (16.60)Maxim Group raises their OSTK tgt to $23 from $20 after 4Q16 sales exceeded firm's expectations, but fell short of the step-function growth suggested by mgmt on its late November 2016 FinTech efforts call. Management attributed some of the variance in sales to incremental competitive pressure from Wayfair (W-$41.56-Buy). Mgmt's comments on the earnings call suggested it was interested in raising additional capital for its FinTech unit and also considering spinning it off, which firm believes could serve as a catalyst for the stock; Buy.

 Cerulean Pharma shares halted for news pending

 On The Wires

• Abeona Therapeutics Inc. (ABEO) announced that the first high-dose subject was enrolled in the ongoing Phase 1/2 trial for ABO-102 (AAV-SGSH). The first-in-man clinical trial utilizes a single intravenous injection of AAV gene therapy for patients with MPS IIIA (Sanfilippo syndrome type A), a devastating lysosomal storage disease that affects every cell and organ resulting in neurocognitive decline, speech loss, loss of mobility, and premature death.
• Jacobs Engineering Group Inc. (JEC) has been awarded a two-year contract by Transport for London to provide integrated impact assessment services to support development and finalization of the revised Mayor's Transport Strategy (MTS) for London, United Kingdom.  The MTS is one of the key plans for the incoming Mayor of London to establish its refreshed policy framework and strategic direction for London's transport to meet projected economic and population growth. TfL is responsible for most aspects of London's transport system. Financial details were not disclosed. 

 

 European Summary

Eurozone Yields Remain near Multi-Year Highs After Strong Factory Surveys

• Eurozone sovereign yields are mostly trading higher this morning after manufacturing PMI data showed strong job creation in the single currency bloc. The survey respondents also reported stronger cost inflation and average selling prices, encouraging news for the European Central Bank. Readings above 50 indicate expansion in activity so even Italy's 53.0 print shows growth and France, Germany, and Spain fared much better. Greece's gauge feel to 46.6 for January from 49.3 in December, its worst level since September 2015
• New Issuance:
  
  • Germany sold EUR4.0 bln of 5-year Bobls at an average yield of -0.28% with a bid-to-cover ratio of 1.31 (2.08% prior)
• European Economic Data:
  
  • Switzerland's SVME PMI fell more than expected to 54.6 for January from 56.2 in December
  • The U.K.'s Markit Manufacturing PMI was revised down to 55.9 for January from the preliminary reading of 56.1, as expected. Manufacturers reported that cost inflation hit a 25-year high
    
    • The U.K.'s Nationwide House Price Index increased by 0.2% m/m in January (4.3% y/y), missing forecasts and slowing from December's 0.8% growth
  • The eurozone's Markit Manufacturing PMI was revised up to 55.2 for January from the flash reading of 55.1. Country-by-country breakdown:
    
    • France: 53.6, 5-year high (preliminary reading 53.4, Prior 53.5)
    • Germany: 56.4, 3-year high (preliminary reading 56.5, Prior 55.6)
    • Italy: 53.0 (Prior 53.2)
    • Spain: 55.6, 18-month high (Prior 55.3)
• Yield Check:
  
  • France, 10-yr OAT: +6 bps to 1.10% (one-year high is 1.11%)
  • Germany, 10-yr Bund: +2 bps to 0.46% (one-year high is 0.50%)
  • Greece, 10-yr note: -16 bps to 7.56%
  • Italy, 10-yr BTP: +5 bps to 2.31% (one-year high is 2.35%)
  • Portugal, 10-yr PGB: +2 bps to 4.20%
  • Spain, 10-yr ODE: +5 bps to 1.65%
  • U.K., 10-yr Gilt: +2 bps to 1.44%

 Cerulean Pharma to resume trading at 08:30

 January ADP Employment Change 246K vs 165K Briefing.com consensus

• By Sector Goods-producing: 46,000
  • Natural resources/mining 6,000
  • Construction 25,000
  • Manufacturing 15,000
• Service-providing: 201,000
  • Trade/transportation/utilities 63,000
  • Information -6,000
  • Financial activities 0
  • Professional/business services 71,000
    • Professional/technical services 8,000
    • Management of companies/enterprises 5,000
    • Administrative/support services 59,000
  • Education/health services 47,000
    • Health care/social assistance 49,000
    • Education -2,000
  • Leisure/hospitality 17,000
• «The U.S. labor market is hitting on all cylinders and we saw small and midsized businesses perform exceptionally well,» said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. «Further analysis shows that services gains have rebounded from their tepid December pace, adding 201,000 jobs. The goods producers added 46,000 jobs, which is the strongest job growth that sector has seen in the last two years.»
• Mark Zandi, chief economist of Moody's Analytics said, «2017 got off to a strong start in the job market. Job growth is solid across most industries and company sizes. Even the energy sector is adding to payrolls again.»

 

 

 Spark Energy initiated with a Buy at Guggenheim; tgt $30  (25.85)

 S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +33.50.

The stock market remains on track for a higher open as the S&P 500 futures trade five points above fair value.

The Fed (FOMC) will release its latest policy decision and statement this afternoon at 2:00 pm ET. However, this FOMC meeting isn't garnering much fanfare as the general expectation is that there won't be any change to monetary policy.

This meeting marks the first meeting with new voting members for 2017 — Chicago Fed President Evans, Philadelphia Fed President Harker, Dallas Fed President Kaplan, and Minneapolis Fed President Kashkari are the new voting members. Mr. Evans is the only one of that group who has voted before on the FOMC.

While no change in policy is expected, the wording of the directive could potentially accentuate the policy divergences between the Fed and other leading central banks, which could result in some market gyrations.

 On The Wires

• GenomeDx Biosciences announced that it has entered into a research collaboration with Astellas (ALPMY) to apply genomic tumor profiling using GenomeDx's Decipher Classifier and Decipher GRID as a potential aid in the identification of prostate cancer patients undergoing active surveillance who may benefit from treatment with XTANDI (enzalutamide).  As part of the agreement, Astellas will provide GenomeDx with tumor samples from its Phase 2 ENACT trial (NCT02799475), which is comparing the time to prostate cancer progression between patients treated with enzalutamide versus patients undergoing active surveillance.
• CB&I (CBI) announced it has been awarded a contract by Shaanxi Yanchang Petrochemical Group for the license and engineering design of an alkylation unit in Yan'an City, Shaanxi, China. The alkylation unit will use CB&I's CDAlky advanced sulfuric acid alkylation technology.
• Salesforce (CRM) announced that the U.S. Department of Agriculture Farm Service Agency will use Salesforce Service Cloud to power a new program for FSA customers known as «Bridges to Opportunity.» The program is designed to provide farmers and ranchers with information on non-USDA programs that will benefit and grow their operations, ultimately helping them meet their goals.
• On January 31, 2017, Symantec (SYMC) informed LifeLock (LOCK) that it had not completed its debt financing and, in accordance with the terms of the Amendment, Symantec was electing to extend the Closing. LifeLock currently expects that the Merger will be completed on February 9, 2017.

 

 Gapping up

Gapping up
In reaction to strong earnings/guidance:

• OSTK +13%, ACXM +6.9%, BDN +5%, AAPL +4.7%, AMD +4.6%, AKER +4%, VNTV +3.6%, OKE +3.2%, FBHS +3.1%, (also CFO Lee Wyatt will retire)
• ALGN +3.1%, (also files patent infringement lawsuit against ClearCorrect and Your Smile Direct in United Kingdom), TUP +2.7%
• CARB +2.3%, (Carbonite acquired Double-Take Software for $65.25 mln and reports prelim Q4 results, issues FY17 guidance with Double-Take Software impact)
• BAX +2.3%, AVY +2.1%, X +1.6%, EQR +1.3%, USG +1.3%, ALGT +1.2%, MTSI +0.9%, ANTM +0.6%

M&A news:

• OKS +28.7% (ONEOK (OKE) to acquire all of the outstanding common units of ONEOK Partners it does not already own for $9.3 bln in common stock)
• CERU +11.1% (announces that its Board is conducting a comprehensive review of strategic alternatives)
• OPHT +1.9% (initiates plan to review its strategic alternatives in order to maximize shareholder value)

Select Apple suppliers/related names showing strength:

• CRUS +2.8%, SWKS +2.1%, AVGO +2.1%, MU +1%, QRVO +0.5%, QCOM +0.4%

Other news:

• GALT +20.2% (says has generated sufficient financing to cover currently planned expenditures through 2017, remains on track to present top line data from its NASH-CX Phase 2 clinical trial by early December), VCEL +17.3% (announces the first implant of MACI in the US)
• DRYS +12.7% (DryShips confirms will release its results for the fourth quarter on February 7 after the close)
• XOMA +8.9% (established proof-of-concept for its product candidate 358 in congenital hyperinsulinism and hypoglycemia post-bariatric surgery)
• NSTG +8.8% (announces that Humana has issued a positive coverage decision for the Prosigna Breast Cancer Gene Signature Assay)
• SDRL +7% (rebounding following yesterday's declines)
• OPXA +3.2% (further reduces workforce, terminates the employment Chief Scientific Officer)
• TEVA +2.3% (rebounding following yesterday's declines)
• MFIN +2.2% (Medallion Fincl provides long-term strategic update in ongoing transition away from medallion lending; to restructure Freshstart Venture Capital debentures, reducing Medallion exposure )
• PMD +2% (following late move higher after co issued press release claiming no ownership interest in Psychemedics Brasil-- still closed significantly lower)
• FB +1.2% (Facebook working to develop an app for TV set-top boxes, according to the WSJ )

Analyst comments:

• IDRA +5% (assumed with a Outperform at Wedbush)
• MRVL +3.9% (upgraded to Buy from Sell at UBS)
• MRO +1.9% (upgraded to Sector Outperform from Sector Perform at Scotia)
• COH +1.1% (upgraded to Buy from Hold at Evercore ISI)
• AMGN +0.9% (upgraded to Buy from Neutral at BofA/Merrill)
• FOXA +0.8% (upgraded to Buy from Neutral at MoffettNathanson)

 

 

 Gapping up/down: AAPL +5%, AMD +5%, BAX +2% and X +1.6% after earnings, OKS +29% after M&A news, COH and AMGN +1% after upgrades; JCI -4%, ADP -3%, EA -2% and MO -1% after earnings

Gapping up
In reaction to strong earnings/guidance:

• OSTK +13%, ACXM +6.9%, BDN +5%, AAPL +4.7%, AMD +4.6%, AKER +4%, VNTV +3.6%, OKE +3.2%, FBHS +3.1%, (also CFO Lee Wyatt will retire)
• ALGN +3.1%, (also files patent infringement lawsuit against ClearCorrect and Your Smile Direct in United Kingdom), TUP +2.7%
• CARB +2.3%, (Carbonite acquired Double-Take Software for $65.25 mln and reports prelim Q4 results, issues FY17 guidance with Double-Take Software impact)
• BAX +2.3%, AVY +2.1%, X +1.6%, EQR +1.3%, USG +1.3%, ALGT +1.2%, MTSI +0.9%, ANTM +0.6%

M&A news:

• OKS +28.7% (ONEOK (OKE) to acquire all of the outstanding common units of ONEOK Partners it does not already own for $9.3 bln in common stock)
• CERU +11.1% (announces that its Board is conducting a comprehensive review of strategic alternatives)
• OPHT +1.9% (initiates plan to review its strategic alternatives in order to maximize shareholder value)

Select Apple suppliers/related names showing strength:

• CRUS +2.8%, SWKS +2.1%, AVGO +2.1%, MU +1%, QRVO +0.5%, QCOM +0.4%

Other news:

• GALT +20.2% (says has generated sufficient financing to cover currently planned expenditures through 2017, remains on track to present top line data from its NASH-CX Phase 2 clinical trial by early December), VCEL +17.3% (announces the first implant of MACI in the US)
• DRYS +12.7% (DryShips confirms will release its results for the fourth quarter on February 7 after the close)
• XOMA +8.9% (established proof-of-concept for its product candidate 358 in congenital hyperinsulinism and hypoglycemia post-bariatric surgery)
• NSTG +8.8% (announces that Humana has issued a positive coverage decision for the Prosigna Breast Cancer Gene Signature Assay)
• SDRL +7% (rebounding following yesterday's declines)
• OPXA +3.2% (further reduces workforce, terminates the employment Chief Scientific Officer)
• TEVA +2.3% (rebounding following yesterday's declines)
• MFIN +2.2% (Medallion Fincl provides long-term strategic update in ongoing transition away from medallion lending; to restructure Freshstart Venture Capital debentures, reducing Medallion exposure )
• PMD +2% (following late move higher after co issued press release claiming no ownership interest in Psychemedics Brasil-- still closed significantly lower)
• FB +1.2% (Facebook working to develop an app for TV set-top boxes, according to the WSJ )

Analyst comments:

• IDRA +5% (assumed with a Outperform at Wedbush)
• MRVL +3.9% (upgraded to Buy from Sell at UBS)
• MRO +1.9% (upgraded to Sector Outperform from Sector Perform at Scotia)
• COH +1.1% (upgraded to Buy from Hold at Evercore ISI)
• AMGN +0.9% (upgraded to Buy from Neutral at BofA/Merrill)
• FOXA +0.8% (upgraded to Buy from Neutral at MoffettNathanson)

Gapping down
In reaction to disappointing earnings/guidance:

• BBOX -13.9%, BOOT -10.6%, MANH -7.7%, PBI -5.8%, BABY -5.2%, JCI -4.5%, MTCH -4.4%, (also sells non-dating business The Princeton Review to ST Unitas)
• ARAY -4.3%, TNAV -3.4%, ADP -3%, D -3%, UNVR -2.7%, (announces the sale of 15,000,000 shares of common stock by selling shareholders; sees Q4 EPS $0.23-0.27 vs $0.10 Capital IQ Consensus Estimate; revs $1.8-1.85 bln vs $1.90 bln Capital IQ Consensus Estimate )
• ILMN -2.4%, BBVA -2.3%, KTCC -1.8%, EA -1.7%, MDC -1.4%, MO -1.3%, NEU -1.2%, MSTR -1.1%, CACC -1.1%, OMN -1.1%, PPL -1%

Other news:

• CATB -65.6% (Catabasis Pharmaceuticals announces top-line safety and efficacy results for Part B of the MoveDMD trial of edasalonexent (CAT-1004) for the treatment of Duchenne muscular dystrophy)
• SGYP -12% (prices 20,325,204 common stock offering at $6.15/share)
• CCJ -10.6% (announces that Tokyo Electric Power Company Holdings has issued a termination notice for a uranium supply contract with Cameco)
• GALE -10.3% (Galena Biopharma announces Pres/CEO Mark W. Schwartz will resign effective today and the evaluation of strategic alternatives)
• UNVR -2.7% (prices previously announced public offering of 15,000,000 shares of Univar's common stock by selling shareholders at $29.00/share)
• MCRN -2.4% (prices offering of 12 mln shares of common stock by selling shareholders at $16.25 per share)
• SN -2% (prices 10 mln shares of common stock at $12.50 per share)
• FHB -1.1% (prices secondary offering of 25 mln shares by selling shareholders at $32.00 per share)
• TMHC -0.8% (prices offering of 10 mln shares of common stock at $19.00 per share)

Analyst comments:

• MBLY -3.6% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
• NCMI -2.8% (downgraded to Underperform at Credit Suisse)
• GLW -1.7% (downgraded to Mkt Perform from Outperform at Bernstein)
• IMAX -0.6% (downgraded to Neutral from Outperform at Credit Suisse)

 Under Armour downgrade details — to Hold at Canaccord Genuity; tgt lowered to $20  (21.49)Canaccord Genuity downgrades UAA to Hold from Buy and lowers their tgt to $20 from $44 noting, «While UA is taking steps to rectify the assortment missteps in apparel by increasing its lifestyle offering, we are not likely to see a significant improvement before 2018. Given the macro challenges facing the industry and the time it will take for these initiatives to reignite NA apparel, we believe 2017 will be a reset year for UA and thus see little upside to the stock from current levels.»

 S&P futures vs fair value: +5.00. Nasdaq futures vs fair value: +33.90.

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

Equity indices in the Asia-Pacific region ended Wednesday on a mixed note while China's Shanghai Composite remained close for Lunar New Year. In Japan, Koichi Hamada, who advises Prime Minister Shinzo Abe, said President Donald Trump's arguments on border tax and currencies are destructive to Japan and the world economy.

• In economic data:  
  • China's January Manufacturing PMI 51.3 (expected 51.2; last 51.4) and Non-Manufacturing PMI 54.6 (last 54.5)
  • Japan's January Manufacturing PMI 52.7 (consensus 52.8; previous 52.8)
  • South Korea's January Nikkei Manufacturing PMI 49.0 (last 49.4). December Industrial Production -0.5% month-over-month (expected 0.3%; last 3.6%); +4.3% year-over-year (consensus 3.0%; last 5.3%). January trade surplus KRW7.00 billion (previous surplus KRW3.20 billion). January Imports +7.3% year-over-year (consensus 8.5%; last 18.6%) and Exports +6.4% year-over-year (consnsus 8.7%; last 11.2%)
  • Australia's Q4 Unemployment Rate 5.2% (consensus 4.8%; last 4.9%). Q4 Labor Cost Index +0.4% quarter-over-quarter (expected 0.5%; last 0.4%). Q4 Employment Change +0.8% qurater-over-quarter, as expected (last 1.4%)

---Equity Markets---

• Japan's Nikkei added 0.5% with Mitsubishi Motors surging 11.9% after boosting its guidance. Hino Motors jumped 7.3% while Fujitsu, Alps Electric, Kyocera, Komatsu, Konami, JTEKT, and Suzuki Motor climbed between 2.0% and 4.3%.
• Hong Kong's Hang Seng shed 0.2% to begin an abbreviated trading week. Consumer and gaming names lagged while property names outperformed. Want Want China, Galaxy Entertainment, Sands China, and Li & Fung posted losses between 1.2% and 3.8%. On the upside, Hang Lung Properties, Sino Land, and New World Development gained between 0.6% and 1.5%.
• China's Shanghai Composite remained closed for Lunar New Year.
• India's Sensex gained 1.8%, climbing to levels not seen since late October. India's largest automaker, Maruti Suzuki, spiked 4.7% after reporting solid January sales. Mahindra&Mahindra climbed 4.6% while financials ICICI Bank, SBI, AXIS Bank, and HDFC Bank advanced between 1.5% and 4.4%.

Major European indices trade higher across the board. The euro (1.0770) is down 0.3% against the dollar after climbing into the 1.0800 area yesterday. Meanwhile, the pound (1.2641) is up 0.5% against the greenback. Earlier this morning, British Prime Minister Theresa May said a white paper that contains the Brexit strategy will be published tomorrow. Participants received a full slate of PMI readings from the region, but the results were mixed.

• In economic data:
  • Eurozone January Manufacturing PMI 55.2 (expected 55.1; last 55.1)
  • Germany's January Manufacturing PMI 56.4 (consensus 56.5; previous 56.5)  
  • UK's January Manufacturing PMI 55.9, as expected (last 56.1). January Nationwide HPI +0.2% month-over-month (expected 0.3%; last 0.8%); +4.3% year-over-year (consensus 4.4%; previous 4.5%)
  • France's January Manufacturing PMI 53.6 (expected 53.4; previous 53.4)  
  • Italy's January Manufacturing PMI 53.0 (consensus 53.2; last 53.2)  
  • Spain's January Manufacturing PMI 55.6 (expected 55.0; previous 55.3)  
  • Swiss January SVME PMI 54.6 (consenssu 55.8; previous 56.2)

---Equity Markets---

• UK's FTSE has climbed 0.6% with select drugmakers and miners contributing to the strength. Hikma Pharmaceuticals and Shire are both up near 2.5% while Anglo American, BHP Billiton, Rio Tinto, and Fresnillo show gains between 1.2% and 2.1%. On the downside, consumer names like Dixons Carphone, Kingfisher, and Diageo show losses between 0.1% and 1.2%.
• Germany's DAX trades up 1.3% with conglomerate Siemens jumping 4.7% after boosting its profit forecast. Deutsche Bank has gained 3.3% while exporters like Volkswagen, Daimler, and BMW are up between 1.0% and 1.8%.
• France's CAC has added 1.4% with help from most components. Growth-sensitive names like Schneider Electric, ArcelorMittal, TechnipFMC, and LafargeHolcim are up between 2.7% and 4.5% while automakers Peugeot and Renault hold gains close to 2.2% apiece.

 On The Wires

• Digital Turbine (APPS) announced a strategic partnership with Axiata Digital, the digital services unit of Axiata Group Berhad, one of Asia's largest telecommunications groups. As part of a multi-year agreement, Digital Turbine will integrate its carrier billing solution, Pay, with Axiata's Mobile Internet Fulfillment Exchange platform, enabling content providers access to new subscribers.
• Iteris (ITI) announced the appointment of Joe Boissy as Chief Marketing Officer. He joins Iteris from Vendavo where he was CMO since 2013, building a strong brand and solid go-to-market strategy that yielded double digit growth and the acquisition of the company by Francisco Partners.
• Network-1 Technologies (NTIP) announced that the U.S. Patent and Trademark Office issued U.S. Patent No. 9,558,190 («System and Method for Taking Action with Respect to an Electronic Media Work») to Network-1. The claims in the newly issued patent are generally directed towards systems of content identification and performing actions following therefrom.
• Mobile TeleSystems (MBT) announced that it has increased the price range it will offer to pay for its shares of Common Stock in its previously announced Tender Offer from a Minimum Price of RUB 253.00 and Maximum Price of RUB 283.00 to a Minimum Price of RUB 270.00 and a Maximum Price of RUB 290.00 per share of Common Stock. The Company also announced that the Tender Offer in respect to ADSs has been extended, in accordance with applicable rules and regulations governing tender offers, until 11:59 p.m., New York City time, on February 14, 2017, unless further extended or terminated.

 Filings, Offerings and Pricings

Filings:

• CenterPoint (CNP) files mixed securities shelf offering
• Digital Power Corporation (DPW) files for $5 mln mixed securities shelf offering 
• Immune Pharma (IMNP) files to withdraw registration statement on Form S-3 filed on December 2, 2016; intends to make changes to the terms of the agreements for which the Registration Statement was filed

Offerings:

• CNB Financial (CCNE) enters into an At Market Issuance Sales Agreement with Keefe, Bruyette & Woods, to act as the Corporation's sales agent with respect to the issuance and sale of up to $20 mln of common stock 
• Smart Sand (SND) commences 4 mln common stock offering, of which 1.5 mln shares to be sold by the co and 2.5 mln shares to be sold by selling stockholders
• Tsakos Energy (TNP) enters into an At-The-Market Equity Offering Sales Agreement under which it may sell, from time to time, an aggregate of up to $40 mln of its common shares and Cumulative Redeemable Perpetual Preferred Shares 

Pricings:

• Greenbrier (GBX 43.75) increases and prices its previously announced offering of Senior Convertible Notes due 2024 to an aggregate principal amount of $250 mln
• First Hawaiian (FHB 32.99) prices secondary offering of 25 mln shares by selling shareholders at $32.00 per share 
• Milacron Holdings (MCRN 16.54) prices offering of 12 mln shares of common stock by selling shareholders at $16.25 per share 
• Synergy Pharma (SGYP 7.07) prices 20,325,204 common stock offering at $6.15/share
• Sanchez Energy (SN 13.26) prices 10 mln shares of common stock at $12.50 per share 
• Taylor Morrison Home (TMHC 19.40) prices offering of 10 mln shares of common stock at $19.00 per share 
• Univar (UNVR 29.82) prices previously announced public offering of 15 mln shares of its common stock by selling shareholders at $29.00/share

 Luxoft Holding acquires IntroPro; terms not disclosed  (58.85)IntroPro is an engineering consultancy w/ expertise spanning the complete lifecycle of enterprise and embedded software architecture, development, testing and QA, maintenance and managed services for content delivery and management specifically focused on TV, Media, and Entertainment industry.

 Xylem downgraded to Hold at Gabelli & Co on valuation  (49.31)Gabelli & Co downgrades XYL to Hold from Buy ahead of earnings. Having appreciated 40% during the past year, the margin of safety has been reduced considerably for Xylem. While firm thinks highly of the company's products, strategy, and mgmt, they are lowering recommendation. Although hope springs eternal for an industrial recovery in the US, the sluggish envm't is likely to continue elsewhere, impacted by political uncertainty and commodity prices. Municipal markets, in particular the US, have been very strong for the past year, creating difficult comparisons heading into 2017. Taken together, they see more downside than they do upside at the current valuation, and would become more favorable on purchasing shares at a lower price/valuation.

 Seres Therapeutics target lowered to $18 at FBR & Co. — Core issues identified support confirming patient diagnosis and optimizing dose  (9.89)FBR & Co. lowers their MCRB tgt to $18 from $23 after Seres Therapeutics announced results from its completed in-depth analysis of a Phase II ECOSPOR study with SER-109 in patients with recurrent Clostridium difficile infection (CDI). They think key observations support a potential path forward for SER-109. For example, confirmation of patient diagnosis for CDI using an appropriate assay would optimize the study patient population. They also look for further confirmation of microbiome changes from SER-109 treatment as being meaningful and associated with a decreased rate of CDI recurrence. The in-depth analysis necessitated a delay in SER-109's advancement. However, they conclude that the core issues identified in the analysis favor moving forward with another Phase II study and think high value continues to exist in SER-109; Outperform.

 

 

 Howard Bank initiated with an Equal Weight at a boutique firm  (17.15)

 Sprouts Farmers Market upgraded to Mixed from Negative at OTR Global  (18.67)

 SM Energy upgraded to Outperform from Peer Perform at Wolfe Research  (30.51)

 

 On The Wires

• Genius Brands International (GNUS) extends the reach of its Kid Genius Cartoon Channel today by approximately 20 million households as the channel «goes live» on OTT platforms, including Roku, Apple TV, and Amazon's Fire, boosting the channel's reach to an estimated 50 million U.S. households. Additionally, the company is launching new apps for its signature Baby Genius and SpacePOP brands on Roku and Apple TV, augmenting the audiences' entertainment experience with multiplatform engagement opportunities.
• MannKind Corporation (MNKD) announced the launch of a new Titration Pack containing 60 — 4 unit cartridges, 60 — 8 unit cartridges and 60 — 12 unit cartridges of Afrezza (insulin human) Inhalation Powder.
• RingCentral (RNG) announced that The Salvation Army USA, an organization that has been helping those in need in the United States for the past 130 years, has selected RingCentral Office as its cloud communications solution. Leveraging RingCentral's integration with Microsoft Office 365, The Salvation Army employees at the national headquarters office located in Washington D.C. will now have access to powerful communications capabilities within their main productivity suite, enhancing their ability to efficiently communicate and collaborate with co-workers.
• The Nordex Group (NRDXF) is acquiring SSP Technology A/S, a developer and manufacturer of rotor blade moulds and the holder of numerous patents for the production processes for this component. The acquisition includes IP rights, around 70 employees and the facilities with a floor area of some 10,000 square metres in Kirkeby (Denmark).

 Hearing Eaton was initiated with a Mkt Perform at Avondale; tgt $72  (70.96 +0.18)

 Hearing Packaging Corp was downgraded premarket to Outperform at CLSA  (91.67 -0.51)

 Opening Market Summary: Stock Market Opens Wednesday Higher

The major averages opened Wednesday's session higher, with the Nasdaq (+0.7%) showing relative strength. The S&P 500 currently sports a gain of 0.3%.

Cyclical spaces lead the advance with the heavily-weighted technology (+0.9%) and financial (+0.9%) sectors at the top of today's leaderboard. Countercyclical groups lag with consumer staples, utilities, and real estate posting losses between 0.1% and 1.1%.

Selling pressure persists in the Treasury market, pushing the 10-yr Note below its overnight low. The benchmark 10-yr yield is three basis points higher at 2.49%.

 Twilio showing early strength after an upgrade, nearing last week's/Jan highs and the 50-day sma near 30.40/30.50 area  (30.28 +1.45)

• Earnings scheduled for Feb 7.

 Invitation Homes opens for trading at $20.10 after pricing IPO at $20