Америка сегодня. Предварительные данные по доверию потребителей и цены на экспорт-импорт.

• Most of the global equity markets are trading higher again this morning, with S&P up a couple of points heading into the open. The Nikkei was the darling of the night, posting a gain of 2.5%.
• Japan's benchmark blasted off right after the open and continued to increase in altitude with the buyers embracing equities after the significant drop in the yen against the dollar yesterday. As expected, exporters benefitted greatly by this. The auto sector took back yesterday's losses and then some with both Toyota and Honda gaining over 3% on the day.
• The Shanghai closed the week on a high note, finishing the day up 0.4% higher. The market was supported by strong Trade Data for January. Although the headline beat was considerable, both Imports and Exports blew away expectations. Probably the most impressive component was the 15.9% growth in Exports, exceeding the +5.2% consensus.
• In Europe, the major bourses are attempting to extend its winning streak to 4-days, although the indices have pulled back from earlier highs. The strength out of the gate stemmed from the robust Trade Data from China, which considerable as China is Europe's largest trading partner.
• Crude oil is ~1% higher this morning. The release of the monthly IEA report provided the spark, after the report indicated OPEC crude production fell 1% in January with Saudi Arabia cut supply more than required. The report also rose its demand expectations for the 3rd straight month for the 2016 calendar year.

Market Updates:

• S&P Futures vs Fair Value: +2.00 
• 10 yr Note: 2.4126% 
• USD/JPY: 113.50 +0.28 
• EUR/USD: 1.0644 -0.0007
• Europe: FTSE +0.3% DAX +0.2% CAC +0.1% 
• Asia: Hang Seng +0.2% Shanghai +0.4% Nikkei +2.5% 
• Commodities: Gold (1227.90 -8.90) Silver (17.60 -0.14) crude (503.46 +0.46) 

US Econ Data

• January Export/Import Prices (8:30am)
• February Michigan Sentiment- Prelim (10am)
• January Treasury Budget (2pm)
• Sat- Fed's Fischer speaks (7:30am)

Equity indices in the Asia-Pacific region ended the week on a higher note with Japan's Nikkei (+2.5%) setting the pace. The Bank of Japan stepped up its bond purchases by JPY20 billion in order to curtail rising longer-term yields. Prime Minister Shinzo Abe will be meeting with President Donald Trump this weekend. On a separate note, better than expected trade data from China also contributed to the upbeat sentiment.

• In economic data:
  • China's January trade surplus $51.35 billion (expected surplus of $47.90 billion; last surplus of $40.71 billion). January Imports +16.7% year-over-year (expected 10.0%; last 3.1%) and Exports +7.9% year-over-year (consensus 3.3%; previous -6.2%)
  • Japan's January PPI +0.6% month-over-month (expected 0.2%; last 0.6%); +0.5% year-over-year (consensus 0.0%; last -1.2%). Tertiary Industry Activity Index -0.4% month-over-month (expected -0.1%; last 0.3%)
  • Australia's December Home Loans +0.4% month-over-month (expected 1.0%; last 1.3%) and December Invest Housing Finance -1.0% month-over-month (last 4.9%)

---Equity Markets---

• Japan's Nikkei spiked 2.5% to end the week with a 2.4% gain. Tokai Carbon surged 14.9% while Yamaha Motor, Yokohama Rubber, Toshiba, Okuma, Mazda Motor, Hino Motors, JTEKT, and Fuji Heavy Industries posted gains between 4.3% and 7.7%.
• Hong Kong's Hang Seng added 0.2%, extending its weekly gain to 1.9%. Financials and energy-related names had a good showing with PetroChina, CNOOC, and China Petrol & Chemical posting gains between 0.8% and 2.0% while Bank of East Asia, HSBC, Bank of China, and Hang Seng Bank advanced between 0.7% and 1.3%.
• China's Shanghai Composite rose 0.4%, ending the week higher by 1.8%. Guanghui Energy, Huaxin Cement, Lingyuan Iron & Steel, and Ningxia Building Materials Group climbed between 6.2% and 10.0%.
• India's Sensex settled just above its flat line, locking in a 1.6% gain for the week. Tata Consultancy, Infosys, and Wipro rose between 0.5% and 3.1% while ITC fell 1.6%. Financials were mixed with AXIS Bank, HDFC Bank, and SBI adding between 0.2% and 0.7% while ICICI Bank lost 1.2%.

---FX---

• USDJPY +0.2% to 113.47
• USDCNY +0.2% to 6.8797
• USDINR +0.2% to 66.898

Stocks with favorable mention: ACC, AGCO, AGN, ALK, CMI, COST, DOW, FB, GOOGL, HON, JPM, LUV, MMM, PEP, REVG, SAP, SHOP, THO, THS

Stocks with unfavorable mention: ADM, EMR, KNOP, KO, NAK, TWTR

Stifel notes expectations of every possible benefit in the world had seemingly been modeled in and discounted over no time at all. This had come at a time when many, if not all truckload carriers had been griping about shorter and shallower peak season volumes moving into 4Q16 earnings season. Nonetheless, earnings expectations looked fairly generous. To date, 9 of the truckload carriers have reported 4Q16 results. On average EPS was down over 30% y/y, against a 4Q15 comparable which was already reflecting weakness in the truckload market. Analysts across the Street for each of these cos have adjusted ests down a couple of additional notches on top of the already downwardly revised ests. So, as expected, despite analysts and investors not expecting much, for the most part, each of the truckload names failed to overcome their expectations for a difficult 4Q16.

Names which move to Hold from Sell: KNX, WERN, MRTN, CGI, LSTR, HTLD

After the major U.S. averages finished at record highs yesterday, most global markets and U.S. futures have maintained the positive posture this morning. The S&P 500 futures trade four points (+0.2%) above fair value.

U.S. Treasuries have extended Thursday's losses this morning. The benchmark 10-yr yield is two basis points higher at 2.41%.

Meanwhile, crude oil is up 1.6% at $53.83/bbl amid reports that initial OPEC supply cut compliance reached a record high. The 11 OPEC members with production targets under the deal complied with a record 92.0% of the targeted volume in January, according to Reuters.

On the data front, investors will receive January Export/Import Prices at 8:30 am ET, February Michigan Sentiment Index (Briefing.com consensus 97.9) at 10:00 am ET, and January Treasury Budget at 2:00 pm ET.

In U.S. corporate news:

• NVIDIA (NVDA 118.30, +1.92): +1.7% after beating top and bottom line expectations and issuing positive guidance. 
• Activision Blizzard (ATVI 43.50, +3.77): +9.5% after reporting better than expected revenues, raising its dividend, and announcing $1 billion buyback.
• Skechers (SKX 25.90, +2.62): +11.3% after beating revenue estimates and issuing upbeat revenue guidance for the first quarter.
• YELP (YELP 37.50, -3.99): -9.6% after below-consensus guidance overshadowed better than expected earnings per share.
• Columbia Sportswear (COLM 55.62, +2.33): +4.4% after upbeat earnings results outweighed a miss on revenues and below-consensus guidance.

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the week on a higher note with Japan's Nikkei setting the pace. Japan's Nikkei +2.5%, Hong Kong's Hang Seng +0.2%, China's Shanghai Composite +0.4%, India's Sensex unch.
  • In economic data:
    • China's January trade surplus $51.35 billion (expected surplus of $47.90 billion; last surplus of $40.71 billion). January Imports +16.7% year-over-year (expected 10.0%; last 3.1%) and Exports +7.9% year-over-year (consensus 3.3%; previous -6.2%)
    • Japan's January PPI +0.6% month-over-month (expected 0.2%; last 0.6%); +0.5% year-over-year (consensus 0.0%; last -1.2%). Tertiary Industry Activity Index -0.4% month-over-month (expected -0.1%; last 0.3%)
    • Australia's December Home Loans +0.4% month-over-month (expected 1.0%; last 1.3%) and December Invest Housing Finance -1.0% month-over-month (last 4.9%)
  • In news:
    • The Bank of Japan stepped up its bond purchases by JPY20 billion in order to curtail rising longer-term yields. Prime Minister Shinzo Abe will be meeting with President Donald Trump this weekend.
    • On a separate note, better than expected trade data from China also contributed to the upbeat sentiment.
• Major European indices trade in mixed fashion with Italy's MIB showing relative weakness. UK's FTSE +0.3%, Germany's DAX +0.2%, France's CAC -0.1%, Italy's MIB -0.9%.
  • In economic data:
    • UK's December trade deficit GBP10.89 billion (expected deficit of GBP11.50 billion; last deficit of GBP11.56 billion). December Industrial Production +1.1% month-over-month (expected 0.2%; last 2.0%); +4.3% year-over-year (consensus 3.2%; previous 2.2%). December Manufacturing Production +2.1% month-over-month (expected 0.5%; last 1.4%); +4.0% year-over-year (consensus 1.8%; last 1.7%). December Construction Output +1.8% month-over-month (expected 1.0%; last 0.4%); +0.6% year-over-year (consensus -0.5%; last 1.8%)
    • France's Q4 Nonfarm Payrolls +0.4% quarter-over-quarter (expected 0.3%; last 0.3%) and December Industrial Production -0.9% month-over-month (expected -0.7%; last 2.4%)
  • In news:
    • Reuters reported that IMF and eurozone officials have agreed on a common stance on Greece. According to the report, Greece will be asked to assume EUR1.80 billion in new measures until 2018, followed by another EUR1.80 billion after 2018. Greece's 10-yr yield has fallen 38 basis points to 7.33%.

January revenue per available seat mile was negatively impacted by ~5 points due to holiday placement and the impact of winter weather last year.

• RBC lowers their price target to $49 from $55, maintains Outperform.  Firm notes that Q4 results were solid, if not spectacular, though Q1 and '17 guidance came in below Street expectations. Nevertheless, they believe the long-term thesis remains unchanged.
• Stifel lowers their price target to $40 from $42, maintains Hold.  Firm notes that Yelp delivered 4Q revenue roughly in line with consensus expectations, while adj. EBITDA came in well above Street forecasts. Despite the steady 4Q performance, Yelp failed to deliver upside similar to prior quarters and the company's 1Q / FY 2017 guidance came in slightly below consensus estimates on both revenue and adj. EBITDA. Expectations for 2017 may have risen in recent months following three straight quarters of accelerating Local Advertising growth and commentary about products like Transactions and Request a Quote, but Yelp is approaching monetization of these products with caution and they are less likely to move the needle on revenue growth this year than developments in the core business.
• Needham raises their price target to $45 from $43, maintains Buy.  Firm notes Yelp reported solid 4Q16 results above expectations, but lower than expected FY17 guidance is likely to result in share weakness. On the positive side, the core local advertising remained strong with National Accounts and Self-Service layering on incremental revenue. They estimate that these advertising growth trends should continue in FY17, propelling Advertising revenue ~25% y/y. Management also intends to focus on growing transaction activity, and they estimate solid mid-20% growth in Transaction revenue. However, they believe EBITDA guidance could prove conservative as Yelp's investment in products and performance advertising should either drive incremental revenue above guidance or if unsuccessful costs are likely to be curtailed.

Shares of Yelp are trading ~9.9% lower in the pre-market

• ICPT may get halted here around the release… stock is testing 2016 lows near 100 premarket.
• NASH is non-alcoholic fatty liver disease.
  • NASH stocks: GLMD, GALT, GNFTF, CNAT; AGN acquired NASH company TBRA last year

• Wedbush stays at hold w/ a tgt of $25. The firm was pleased to see continued growth internationally and apparently improving trends in the US, these are coming at a much higher cost, resulting in greater deleverage and risk to the story should growth slow similar to 2H16. Ultimately, the firm believes shares will likely trade higher (+9% after hour) given the improved revenue outlook and what may have been a low bar on expectations.

SKX shares are up ~10% at the 25.7 in after hours trading. 

European Bond Yields Bounce Back

• European sovereign debt yields are moving higher this morning as declines on Wednesday and Thursday were met with selling pressure this morning that pushed prices lower and yields higher. The standoff between the IMF and Greece's European creditors (the ESM and EFSF) continues but Greece's 10-year yield is still down sharply today. The Greek 2-year note yield jumped by more than 100 basis points on Thursday as an agreement between the two looked further away and nothing has changed this morning. Nevertheless, it is really in nobody's interest (except for maybe Greece) for the country to default on its debt load so while strategic posturing is to be expected, the outcome is always likely to be pretend and extend. In economic data, U.K. industrial production grew at its fastest year-on-year pace since 2011 but the growth was largely due to the volatile pharmaceuticals industry. Italian industrial production growth is also running at a multi-year high but the same data series in France missed expectations in December
• The European Union's financial regulation chief urged the Trump Administration to respect the international financial regulatory structures like the Basel Committee on Banking Supervision. Valdis Dombrovskis, a VP of the European Commission, said that Europe is «sensitive to talk of unpicking financial legislation which applies to carefully negotiated international standards and rules.»
• European Economic Data:
  
  • In the U.K., manufacturing production jumped 2.1% m/m in December (4.0% y/y), beating both expectations and November's 1.4% growth
    
    • Industrial production, which adds in mining and utility output to manufacturing production, increased by 1.1% m/m in December (4.3% y/y, a five-year high). Economists had expected a bigger slowdown after November's 2.0% increase
    • Construction output was up 1.8% m/m (0.6% y/y), also exceeding estimates after 0.4% growth in November
    • The U.K.'s trade deficit narrowed more than expected in December to GBP10.89 bln from GBP11.56 bln in November
  • In France, nonfarm payrolls grew by 0.4% q/q in the fourth quarter, exceeding both expectations and Q3's 0.3% pace
    
    • Industrial production fell by a worse-than-expected 0.9% m/m in December after 2.4% growth in November
  • In Italy, industrial production was up 1.4% m/m in December (6.6% y/y), beating estimates and November's 0.8% rise
    
    • The year-on-year growth (6.6%) was the best since August of 2011
• Yield Check:
  
  • France, 10-yr OAT: +5 bps to 1.04%
  • Germany, 10-yr bund: +2 bps to 0.33%
  • Greece, 10-yr note: -37 bps to 7.34%
  • Italy, 10-yr BTP: +7 bps to 2.26%
  • Portugal, 10-yr PGB: +6 bps to 4.08%
  • Spain, 10-yr ODE: +4 bps to 1.67%
  • U.K., 10-yr gilt: +2 bps to 1.26%

Firm notes Activision Blizzard reports better-than-expected 4Q results with non-GAAP EPS of $0.92 (vs. $0.83) which came in ahead of their $0.73 estimate, and consensus and guidance (implied) at $0.74. The company was able to overcome a disappointing Call of Duty: Infinite Warfare release, through a combination of digital momentum (+94%) and contributions from other franchises (i.e., Overwatch + World of Warcraft). They thought management's preliminary guidance for '17 was in line/slightly better vs. what they perceived to Morning Research Summary February 10, 2017 Page 32 be a very wide range of expectations, and thus they suspect #s will drift higher, and the shares see a positive response to this update.

Shares of ATVI are up ~10.2% in the pre-market

Gapping down
In reaction to disappointing earnings/guidance:

• ONVO -17.2%, RSYS -15.3%, YELP -9.7%, UBNT -9.6%, CATM -7.3%, CERN -7%, MX -6.6%, SGEN -6.5%, IPAS -6.3%, MPWR -5.6%, CYBR -5.4%, MCFT -5%
• ZNGA -4.8%, ZAYO -3.2%, APTI -3.2%, SANW -3.2%, ALDW -2.6%, EGAN -2.4%, P -1.8%, TBBK -1.7%, CARB -1.4%, MHK -1.3%, AXL -0.9%, .

Select financial related names showing weakness:

• DB -2.2%, SAN -2.2%, RBS -2%, ING -1.7%, CS -1.6%, LYG -1.2%

Other news:

• MJN 5.2% (to be acquired by Reckitt Benckiser (RBGLY) for $90 per share)
• BSTG -37.6% (prices public offering with expected total gross proceeds of approx. $8.0 mln at $0.40/share)
• TCON -17.5% ( reports top-line results from a randomized Phase 2 clinical trial of TRC105 in recurrent glioblastoma (GBM) funded and conducted by the Clinical Therapy Evaluation Program (CTEP) of the National Cancer Institute )
• ICPT -11.3% (will provide an update on the Phase 3 REGENERATE trial of obeticholic acid in NASH patients with liver fibrosis during a conference call today)
• NDLS -9% (completes $18.5 mln private placement of Series A Convertible Preferred Stock and warrants to L Catterton, amends credit facility, and preannounces in-line Q4 revs; commences common stock offering; size not disclosed)
• BTX -8.6% (commences common stock offering)
• CLF -5.8% (upsizes offering by 5 mln shares and prices 55 mln shares of common stock at $10.75 per share)
• NBIX -0.8% (Neurocrine Biosci and BIAL enter into an exclusive licensing agreement for the development and commercialization of opicapone in North America)

Analyst comments:

• TWTR -1.9% (downgraded to Sell from Neutral at Citigroup)
• TEVA -1.1% (downgraded to Neutral from Buy at Mizuho)
• GBDC -0.9% (downgraded to Mkt Perform from Outperform at Raymond James)
• SBUX -0.6% (downgraded to Hold from Buy at Argus)

Gapping up
In reaction to strong earnings/guidance:

• CTRL +15%, INFN +11.7%, SKX +10.4%, HDP +10.1%, ATVI +10.1%, QUOT +10.1%, SWIR +9.7%, ASYS +8.1%, TRVG +7.8%, RPD +7.5%, IMMU +7%
• ATEN +7%, ELLI +5.5%, CPN +4.7%, ICHR +4.5%, NE +4.4%, COLM +4.4%, TLND +3.9%, MT +3.6%, FLR +3.3%, ARCW +3.2%, RGC +3.2%, INVA +2.7%
• ESNT +2.7%, NVDA +2.4%, JCOM +2%, LPLA +1.9%, VRSN +1.8%, CPST +1.6%, NWSA +1.6%, NR +1.2%, EXPE +0.9%, AON +0.7%, MIME +0.6%, NTT +0.6%

M&A news:

• MJN +5.2% (to be acquired by Reckitt Benckiser (RBGLY) for $90 per share)

Select metals/mining stocks trading higher:

• FCX +4.2%, VALE +3.9%, GFI +2.4%, RIO +1.9%, HMY +1.5%

Select oil/gas related names showing strength:

• WLL +2.5%, PBR +2.2%, RIG +1.9%, CHK +1.3%, HAL +0.8%

Other news:

• SHLD +35.2% (announces 2nd phase of strategic restructuring program, targeting cost reductions of at least $1.0 billion on an annualized basis and enters into amended credit facility, sees upside Q4 sales)
• CBR +9.4% (Lone Star Value discloses 5.4% active stake, says has engaged, and may continue to engage, in general discussions with the Board and management team, including with respect to the composition of the Board)
• IMMU +9.1% (enters into exclusive global licensing agreement with Seattle Genetics (SGEN))
• HXL +3.4% (authorizes $300 million of additional share repurchases)
• AMD +2.7% (NVDA sympathy)
• AVEO +1.1% (announces updates for its lead drug candidate, tivozanib; 'Pivotal TIVO-3 Trial Enrollment Proceeding Substantially Ahead of Schedule', not revising anticipated topline data time)
• JBLU +0.7% (reports January traffic)

Analyst comments:

• GTE +5.5% (upgraded to Outperform from Neutral at Credit Suisse)
• QEP +0.6% (upgraded to Outperform at Wells Fargo)
• BYD +0.5% (initiated with a Buy at SunTrust)

Gapping down
In reaction to disappointing earnings/guidance:

• ONVO -17.2%, RSYS -15.3%, YELP -9.7%, UBNT -9.6%, CATM -7.3%, CERN -7%, MX -6.6%, SGEN -6.5%, IPAS -6.3%, MPWR -5.6%, CYBR -5.4%, MCFT -5%
• ZNGA -4.8%, ZAYO -3.2%, APTI -3.2%, SANW -3.2%, ALDW -2.6%, EGAN -2.4%, P -1.8%, TBBK -1.7%, CARB -1.4%, MHK -1.3%, AXL -0.9%, .

Select financial related names showing weakness:

• DB -2.2%, SAN -2.2%, RBS -2%, ING -1.7%, CS -1.6%, LYG -1.2%

Other news:

• MJN 5.2% (to be acquired by Reckitt Benckiser (RBGLY) for $90 per share)
• BSTG -37.6% (prices public offering with expected total gross proceeds of approx. $8.0 mln at $0.40/share)
• TCON -17.5% ( reports top-line results from a randomized Phase 2 clinical trial of TRC105 in recurrent glioblastoma (GBM) funded and conducted by the Clinical Therapy Evaluation Program (CTEP) of the National Cancer Institute )
• ICPT -11.3% (will provide an update on the Phase 3 REGENERATE trial of obeticholic acid in NASH patients with liver fibrosis during a conference call today)
• NDLS -9% (completes $18.5 mln private placement of Series A Convertible Preferred Stock and warrants to L Catterton, amends credit facility, and preannounces in-line Q4 revs; commences common stock offering; size not disclosed)
• BTX -8.6% (commences common stock offering)
• CLF -5.8% (upsizes offering by 5 mln shares and prices 55 mln shares of common stock at $10.75 per share)
• NBIX -0.8% (Neurocrine Biosci and BIAL enter into an exclusive licensing agreement for the development and commercialization of opicapone in North America)

Analyst comments:

• TWTR -1.9% (downgraded to Sell from Neutral at Citigroup)
• TEVA -1.1% (downgraded to Neutral from Buy at Mizuho)
• GBDC -0.9% (downgraded to Mkt Perform from Outperform at Raymond James)
• SBUX -0.6% (downgraded to Hold from Buy at Argus)

• Cowen raises tgt to $22 from $20, stays at Outperform. The firm believes the cos still lack a ton of 2H:17 visibility and are taking a conservative tack, but ICHR wouldn't have invested the money to expand quarterly revenue capacity well into the low $200MMs (another ~50% from here!) if customers like LRCX weren't asking for it (even if timing is hard to determine). The firm notes the float here is still small, but the point here is that ICHR still has upside potential.
• RBC raises tgt to $19 from $18, stays at Outperform. The firm believes that the key focus points through the year will be the degree to which ICHR can continue to gain market share in both gas and liquid delivery markets.
• Needham reiterates Buy and raises its PT from $17 to $21. With high exposure to growing segments leveraging technology inflections in WFE and its success in winning at key customers, the firm believes ICHR will continue to outperform the industry.
• Stifel maintain its Buy rating and raises its tgt to $20 from $17. While the company's results and outlook reflected the very favorable industry current trends, the firm believes the company continues to outperform the industry growth rates. The firm believes its strong position with its top two customers (Applied Materials and Lam Research), its increasing presence within them, and new market opportunities (in areas like fluid delivery and process areas like CMP) provide it with a strong tailwind for another above-average growth year in 2017.

ICHR shares are up ~4.5% at 17.5 in after hours trading.

• FBR notes that Viacom put up an impressive F1Q17 beat, which should be very helpful today for this low-expectations equity. But core media nets advertising and affiliate fee trends were close, and a bigger source of upside appeared to us to have been the Telefe acquisition on November 15 (which was not in our estimates or consensus, we believe) and a surprising step-up in ancillary revenues tied somehow to a slate financing deal. Maintains Market Perform, $44 tgt. 
• Needham notes that VIAB's new CEO, Bob Bakish, has a new strategy that calls for VIAB to slim down from 20+ TV channels to 6 «Flagship» channels: Nickelodeon, Nick Jr., MTV, BET, Comedy Central and a new Paramount Channel (called Spike last week). In a world of skinny bundles, this is VIAB's best chance to stay relevant. The new strategy also pivots from being an antagonist to US MVPDs to being a «partner», which is a good action plan since it owns a large, weak, expensive bundle of channels, which has been thrown off by several small MVPDs. Execution hurdles remain, with 2017 requiring extra investment to fund the new strategies, including the rebranding of Spike to become the Paramount Channel. Also, they fear that affiliate fees and ad rev may both decline as 20 channels fall to 6 channels, even though we believe this is the best long-term path for VIAB. Maintains Hold. 
• RBC notes that it was a good day for Viacom as new management delivered a beat and a bonafide strategy. But now comes the hard part and they think content risks are ill appreciated. Maintains $35 tgt, and maintains Underperform.

Shares of Viacom are trading 0.3% higher in the pre-market

• Mizuho notes INTC held its analyst day today. The co will focus more on Data Center and new growth markets such as ADAS, 5G and deep learning, while PC drives strong FCF. INTC sees a low single-digit topline CAGR, with strong FCF and dividends growing inline with EPS. They believe a stable PC market and strength in data center, with strong FCF and dividends, should remain a tailwind. INTC noting 64-L 3D-NAND is expected in 3Q17, a positive for partner MU. They also see positive for QCOM. INTC did not focus much on modems and mobile R&D is likely down 55% through 2021E. ALso positive on Not changing any estimates and maintaining their Buy rating.
• Needham attended INTC's Analyst Day at its Santa Clara Campus. The presentation was upbeat and management walked through its 2016 highlights, reiterated its 2017 financial targets and provided an outlook on its shift from a PC centric company to one that powers the cloud and connected devices. INTC is focusing on the performance segment of CCG to counteract a continuing decline in PCs. Management reiterated its 2017 DCG revenue outlook, but noted segment OM will take a ~5% over the next several years. INTC remains a step ahead of the competition in memory and storage with its investments in 3D NAND and Optane technology. Its IoT unit is focused on high growth areas, including ADAS. Overall, they come away positive and reiterate our Buy rating and $43 price target.

• RBC Capital Mkts raises their NVDA tgt to $130 from $124. Nvidia reported another solid quarter despite increasingly high expectations due to Data Center growth, sustained Gaming trends and higher than expected gross margins. With the Data Center segment continuing to grow at triple digits, they think margins will also continue to benefit.
• Needham notes NVIDIA delivered another stellar quarter and guide. Revenue for the qrt was $2.173B (up 55% Y/Y) stemming from strength in the Gaming and Data center. As they expect revenue growth to decelerate in Gaming to 11% Y/Y from 44% (FY2H17 benefited from 2x the number of product launches), they believe NVDA is aligned to massive revenue TAM opportunities in AI, autonomous vehicles and VR. Data Center is on a $1.2BN revenue-run rate and could accelerate as they see GPU deployments in the cloud, hyperscale and enterprise markets, all of which are benefiting from AI and machine learning.
• Stifel raises tgt to $90 from $76. Nvidia turned in another solid quarter as its GPU platform revenue for gaming, workstations and data centers all grew q/q. Outlook for the 1QFY18 beat their and consensus estimates as the company's gaming business declines with seasonality, though from a higher revenue base. Also the final Intel payment will be recorded in March. Mgmt set expectations for a high teens increase in OpEx to support the many active GPU platforms currently in design. This increase in spending is more than offset by the increase in revenue. They are maintaining their Hold rating based on the shares' valuation with the income model de-levering and revenue growth slowing.
• Mizuho raises tgt to $130 from $115. Firm notes NVDA noted strength in data center and gaming demand as parallel compute drives AI & deep learning and eSports continue to gain popularity. Automotive was up 1% q/q while data center was up 23% q/q and 205% y/y. They believe data center orders have expanded significantly versus the same time last year.
• NVDA +3.8% right near its all time high premarket after initially selling off on the print last night; peer AMD +3%.

• Aegis Capital — Aegis states the premium on-demand product has been launched to industry participants & should be rolled out beginning in Mar. Aegis believes that the market for paid online streaming will continue to expand & Pandora will be one of the primary beneficiaries when they launch the on-demand service. Aegis sees an increasing willingness for users to pay $120/year to stream music, even among millennials. Aegis continues to believe that an acquisition remains part of the bull case on the stock; Buy the stock for success of the on-demand launch, core ad monetization, & potential acquisition; maintains Buy.
• FBR — FBR states after a 4Q16 that was broadly consistent with preannounced upside & came coupled with a minor 1Q17 guidance air pocket, followed by guidance reacceleration in 2H17, Pandora stands at a crossroads. The co is on pace over the next month to have a full rollout of its big bet on entering on-demand. Crucial for the stock will be the early consumer reaction of whether Pandora has built something that is differentiated and appealing relative to a growing list of alternatives.
• Needham — Needham states that assuming execution, the economics of Pandora's stated strategy for 2017 are powerful. P's core biz of 80 mlm ad-driven listeners generates about $14 of rev per listener per year. P will try to shift these to either: a) $60/year from the $5/month existing Plus subscription service; or b) $120/year from the $10/month new Premium subscription service. P will launch its $10/month service in late 1Q17 and is targeting 6-9mm total subscribers by 12/31/17, up from 4.4 mln subs at 12/31/16. If P only converts its $5/month subs into $10/month subs, this would double their profit contribution to $42 each. Needham notes the multiplier is higher if ad listeners buy the $10/month service.
• Wedbush — Wedbush expects losses through most of 2017 as Pandora invests in on-demand music and transitions to a 3-tiered subscription model. In addition to its new live events venture, its on-demand service and increasing ad pricing are Pandora's strategic priorities. Wedbush states that Pandora can convert at least 1 mln Pandora Plus subscribers to on-demand and can attract 1-2 mln net new U.S. on-demand subscribers in 2017, while up-selling ad-supported customers to its Pandora Plus service. They expect international expansion in 2018.
• Mizuho — Mizuho states they were surprised that Pandora did not provide EBITDA guidance for 2017. The co plans to invest in marketing ahead of the Mar launch of the Premium product. Mizuho discusses they believe that marketing spend could continue beyond 1Q. Furthermore, without experiencing the P Premium, Mizuho states they can't have an informed opinion on how it will do. While Mizuho likes the long-term opportunity of subscription & the potential for significantly greater EBITDA dollars driving higher cash flows, proof will be in execution over the next few quarters. Mizuho states they think Pandora's stock will trade side-to-side until there is better clarity on EBITDA profitability.
• RBC — RBC states Pandora posted a solid Q4 result, with Q1 guidance below expectations and 2017 guidance bracketing the Street on the top-line. The key for P will be the Mar launch of its new Pandora Premium (on-demand) product; maintains Sector Perform & raised price target to $16.00/share from $14.00/share.

— Shares of P +0.2% pre-market.

Filings:

• Brookfield Asset Mgmt (BAM) files for $2.5 bln mixed securities shelf offering 
• Cliffs Natural Resources (CLF) files mixed securities shelf offering
• Ignite Restaurant (IRG) files to withdraw registration statement on form S-1 originally filed on July 8, 2013 — says has determined not to utilize the Registration Statement for a public offering at this time citing prevailing market conditions
• LPL Financial (LPLA) files for mixed securities shelf offering and potential offering of common stock by selling stockholders
• Noodles & Co (NDLS) files for $32 mln common stock offering
• Real Goods Solar (RGSE) files for mixed securities shelf offering
• xG Technology (XGTI) files for 416,667 common stock offering by selling stockholders

Offerings:

• BioTime (BTX) commences common stock offering; size not disclosed
• Noodles & Co (NDLS) commences common stock offering; size not disclosed

Pricings:

• Biostage (BSTG 0.51) prices public offering with expected total gross proceeds of approx. $8.0 mln at $0.40/share
• Cliffs Natural Resources (CLF 11.37) upsizes offering by 5 mln shares and prices 55 mln shares of common stock at $10.75 per share
• Noodles & Co (NDLS 4.45) completes $18.5 mln private placement of Series A Convertible Preferred Stock and warrants to L Catterton
• RiceBran Tech. (RIBT 0.99) enters into definitive agreements with a group of accredited investors for the purchase of $6 million of non-convertible original issue discount debentures and $2 million of convertible preferred stock

• Needham notes that with over 40% of Infinera's customer base undergoing merger disruption including XO and Verizon as well as Level 3 and Century Link, they had been braced for rough results. Further, with the new products in the headlights there was even more potential for trouble. They note that despite these concerns, Infinera beat on Revenues and beat GM guidance and beat on EPS. They now believe that the company has troughed, estimates have bottomed out and that INFN is poised to rebound results. They think it could double over the next to 4-8 quarters if it can rebound to Revenue and earnings levels it hit last June. Reiterates Strong Buy Rating, raises tgt to $13.50 from $12.50.
• Stifel notes that Pro forma EPS loss of ($0.12) was in line with their estimate for a loss of ($0.12) and the consensus estimate loss of ($0.13). Guidance for 1Q17 revenue of $167-$177 million was above their estimate of $165.0 million and above consensus of $170.7 million at the midpoint, but guidance for an EPS loss of ($0.16) ± a couple of pennies was below both their and consensus estimates of ($0.09)/($0.11), respectively. They expect 1Q17 to serve as a trough quarter, with revenues ramping sequentially through 2017 as ICE4 (Infinite Capacity Engine) products are brought to market. However, given their expectation for earnings to remain pressured in the intermediate term, and continued risk in the timing of revenue acceleration, they reiterate their Hold rating, $10 tgt.
• Instinet upgraded INFN to Buy from Neutral 
• INFN shares are +15% at $10.80 in the pre-market.

Equity indices hold modest gains this morning to extend Thursday's record levels. The S&P 500 is currently up 0.2%.

All six cyclical sectors trade in the green with energy (+0.8%) leading the advance. The material sector (+0.6%) follows closely while the top-weighted technology and financial spaces hold gains of 0.1% apiece.

On the countercyclical side, consumer staples (-0.1%), real estate (-0.1%), and utilities (unch) all trade in negative territory. Meanwhile, the influential health care space (+0.2%) performs in line with the benchmark index.

Economic Data Summary:

• January Export Prices Ex-Ag 0.1% vs Briefing.com consensus of; December was 0.4%
• January Import Prices Ex-Oil -0.2% vs Briefing.com consensus of; December was revised to -0.1% from -0.2%
  • The key takeaway from the report is that nonfuel import prices remain in check, but nonetheless, inflation concerns could get dialed up just a bit on the notion of a potential pass-through effect should higher fuel prices persist.
• February Michigan Sentiment — Final 95.7 vs Briefing.com consensus of 97.9; January was 98.5
  • The pullback in February was related almost entirely to the Expectations Index, which slipped from 90.3 to 85.7. The Current Economic Conditions Index slipped from 111.3 to 111.2.

Upcoming Economic Data:

• January Treasury Budget due out Friday at 14:00 (December was $55.2 bln)

Other International Events of Interest

• China's January trade surplus $51.35 billion (expected surplus of $47.90 billion; last surplus of $40.71 billion). January Imports +16.7% year-over-year (expected 10.0%; last 3.1%) and Exports +7.9% year-over-year (consensus 3.3%; previous -6.2%)

The tech sector — XLK — trades mostly in-line with the broader market. Semiconductors, meanwhile, display relative weakness as the SOX index trades -0.45%. Within the SOX index, QCOM (+1.15%) outperforms, while CRUS (-2.26%) lags. Among other major indices, the SPY is trading 0.29% higher, while the QQQ +0.29% and the NASDAQ +0.54% trade modestly higher on the session. Among tech bellwethers, ACN (+1.36%) is showing relative strength, while TMUS (-0.71%) lags.

Notable gainers following earnings:

• ATVI (+15.8%) reported Q4 earnings with revs ahead of market expectations; guided Q1, FY17, ZAYO (+2.4%) reported in-line Q2 EPS and revs, VRSN (+1.5%)

Notable laggards following earnings:

• NVDA (-2.7%) reported better than expected Q4 EPS and revs; guided Q1 revs ahead of market expectations, WU (-2.3%), EXPE (-1.3%)

Gainers on news:

• SWIR (+25.5%) co, in addition to reporting quarterly results, announced that Volkswagen (VLKAY) selected Sierra Wireless AirPrime AR Series modules and the Legato platform for its next generation of connected cars.
• VRSN (+1.6%) co, in addition to reporting quarterly results, approved an additional authorization for share repurchases of about $641 mln.
• NTT (+0.4%) co filed application for voluntary delisting of American Depositary Receipts from the NYSE and revising the handling procedures of ADRs.
• NXPI (+0.4%) co announced gross debt will be reduced to $6.5 bln from the $9.2 bln reported at the end of 4Q16.

Laggards on news:

• ECOM (-21.8%) in addition to reporting quarterly results, co's Chief Technology Officer, Aris Buinevicius, resigned effective March 17.
• WINS (-7.5%) co announced it is not aware of reasons for the recent volatility in its stock price; states it is not in possession of any material non-public information.
• MCHP (-0.5%) co announced the pricing of $1.8 billion 1.625% aggregate principal amount of convertible senior subordinated notes due 2027 and $500 million 2.250% aggregate principal amount of convertible junior subordinated notes due 2037.

Among notable analyst upgrades:

• INFN (+27.7%) upgraded to Buy from Neutral at Instinet
• SWIR (+25.5%) to Overweight from Equal Weight at First Analysis Sec
• VECO (+4.2%) to Buy at BofA/Merrill

Among notable analyst downgrades:

• TWTR (-4.4%) downgraded to Sell from Neutral at UBS
• TWTR (-4.4%) to Sell from Neutral at Citigroup
• TWTR (-4.4%) to Hold from Buy at Deutsche Bank
• TWTR (-4.4%) to Sell from Hold at Loop Capital
• TWTR (-4.4%) to Underweight from Neutral at Atlantic Equities
• INTC (-0.8%) to Hold from Buy at Canaccord Genuity
• ZAYO (+2.8%) to Underperform from Mkt Perform at FBR & Co.
• MTSC (-3.8%) to Neutral from Overweight at JP Morgan
• BLKB (-2.0%) to Hold from Buy at Wunderlich
• UBNT (-15.9%) to Underperform from Neutral at Credit Suisse

Scheduled to report earnings Monday morning:

• FDC LIOX TSEM VSM WEX

• Increased positions in: CIVI (to ~1.58 mln shares from ~0.3 mln shares), CPSI (to ~1.38 mln from ~0.87 mln)
• Maintained positions in: ASNA (~14.75 mln shares), BLDR (~8.58 mln shares), UTI (~3.53 mln shares)
• Closed positions in: BKE (from ~0.56 mln shares), WSBF (from ~0.03 mln)
• Decreased positions in: BGFV (to ~0.85 mln shares from ~2.58 mln shares), EXPR (to ~0.04 mln from ~1.74 mln), HSII (to ~0.28 mln from ~0.59 mln), RBCAA (to ~0.16 mln from ~0.41 mln)

Rumor Activity was slow to close out the week.

• Reuters discussed that Blackstone (BX 30.18 +0.01) might acquire Aon's (AON 115.72 +0.55) employee benefits outsourcing unit for $4.8 bln.
• Anadarko Petroleum (APC 69.11 +0.70) renewed M&A speculation circulated.
• The Australian discussed that Rio Tinto (RIO 45.15 +2.01) is preparing to sell $2 bln in Queensland Mine assets.

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

• Trading higher following earnings/guidance: SHLD 27.1% (launches comprehensive restructuring; amends credit facility adding liquidity; announces prelim Q4 results above consensus), SKX +21.7%, QUOT +18.4%, COLM +11.9%, P +4.4%, IPG +4.3%, ZNGA +2.4%, RGC +1.2%
• Trading lower following earnings/guidance: YELP -13.1%, NDLS -6.7% (completes $18.5 mln private placement of Series A Convertible Preferred Stock and warrants to L Catterton, amends credit facility, and preannounces in-line Q4 revs), AXL -3.4%, EXPE -0.7%

Earnings/guidance secondary plays:

• Footwear names are higher following Sketchers (SKX) earnings: BOOT +2.6%, SHOO +2.4%, NKE +1.9%, WWW +1.8%, SCVL +1.1%, DSW +0.8%, GCO +0.7%
• SHOS +5.5% DDS +1% are higher following Sears (SHLD) update. 

• Leaders:  MJN 5% (Mead Johnson Nutrition to be acquired by Reckitt Benckiser for $90 per share), TITN 1.1% (announces the implementation of a restructuring plan to consolidate certain dealership locations and a reorganization of its operating structure; expects $25 million in annual cost savings), RCKY 1.7% (expects to make an internal hire for open CFO role by early March), AMZN 0.7% (WSJ detail that Amazon plans to start selling specialized woman's apparel)
• Laggards: BBBY -0.9% (provides update, discloses that its Board is considering modifications to the Company's governance and executive compensation plans)
• Women's apparel brand J.Jill files for $100 mln IPO, expects shares to trade on the NYSE under the symbol JILL

• Upgrades: F 0.9% (upgraded to Hold from Underperform at Jefferies; tgt raised to $12 from $10)
• Downgrades: YUM 1.1% (downgraded to Neutral from Buy at Longbow), VIAB -0.1% (downgraded to Equal Weight from Overweight at Barclays), SBUX 0.6% (downgraded to Hold from Buy at Argus) 

Looking ahead:

• On the earnings front: QSR reports earnings Monday before the open

The Industrials sector (XLI) is trading +0.6% higher today, higher than the broader market (SPY +0.3%). In the Industrial Sector, JetBlue (JBLU -1.6%) reports January traffic and UK's Serious fraud office confirms probe of ABB Ltd. (ABB +0.4%). 

Earnings/Guidance

• Carlisle Cos (CSL -4.3%) reports Q4 earnings of $1.32 per share, excluding non-recurring items, $0.03 better than the consensus of $1.29; revenues rose 2.0% year/year to $893.5 mln vs the $907 mln consensus.
• Cubic (CUB +6.2%) reports Q4 earnings of $1.32 per share, excluding non-recurring items, $0.03 better than the consensus of $1.29; revenues rose 2.0% year/year to $893.5 mln vs the $907 mln consensus.
• Fluor (FLR +0.3%) sees Q4 adj net profit from continuing operations of $0.82/share vs. the $0.79 consensus.
  • Expects Q4 earnings to include non-cash adverse tax effects of $45 million, or $0.32 per diluted share, as a result of the inability to deduct or otherwise benefit certain foreign losses.
  • Expects to report fourth quarter net profit from continuing operations of $70 million, or $0.50 per fully diluted share.

Additional Industrials reporting earnings/guidance: VVI +4.10% BEAV -0.11% WTS -8.88% CPST -2.44% MCFT -0.20% ARCW -0.53%

News

• JetBlue Airways (JBLU -1.6%) reports January traffic; January prasm -8.5% Y/Y, RPMs +8.6% Y/Y, ASMs +7.7% Y/Y, Load factor of 83.3%, +0.7% Y/Y.
• ABB Ltd (ABB +0.4%): The UK's Serious Fraud Office confirms that it has commenced an investigation into the activities of ABB Ltd's United Kingdom subsidiaries, their officers, employees and agents for suspected offences of bribery and corruption

Broker Research

Upgrades

• Knight Transportation (KNX +1.1%), Werner Enterprises (WERN +2.2%), Celadon Group (CGI +6.7%), Landstar System (LSTR +1.4%), and Marten Transport (MRTN +3.8%) upgraded to Hold ratings at Stifel
• CSX (CSX +1.5%) upgraded to Mkt Outperform at Avondale.

Downgrades

• Ryanair Hldgs (RYAAY -0.9%) downgraded to Hold from Buy at Kepler.

Other

• Stifel raises their Equifax (EFX +1.2%) tgt to $144 from $131.
• Needham raises their Cubic (CUB +6.2%) tgt to $55 from $48 after posting FQ1 results after the close yesterday that were better than firm was expecting.

The Energy Sector (XLE, +1.0%) leads the broader market (SPY, +0.2%) higher for the 2nd consecutive session. Crude oil (USO, +1.8%) futures rally for the third day in a row on a bullish IEA report (summarized below) ahead of today's rig count data. Lastly, natural gas (UNG, -2.8%) futures gave up all of yesterday's post-EIA gains, on track to end the week down about 1.0%.

Mar crude oil futures remained on track to extend their rally into a third consecutive session following the release of the IEA's monthly oil market report.

• Note that OPEC is currently at 90% compliance with their portion of the coordinated OPEC/non-OPEC output reduction agreement.
• IEA raised global oil demand growth expectations for 2017 to 1.4 mln bpd, up 100k bpd from their previous estimate.
• Saudi Arabia exceeded their portion of the promised 490k barrel/day reduction by 70k barrels/day.
• Angola & Qatar also cut more than originally expected.
• IEA also stated the global oil stocks overhang that has weighed on prices should fall by about 600k barrels per day in the next 6 months.

Other notable highlights of the report include:

• Global oil supplies plunged nearly 1.5 mb/d in Jan, both OPEC and non-OPEC countries produced less.
• At 96.4 mb/d, world oil production stood 730 kb/d below a year ago, with OPEC posting its first y/y decline since early 2015.
• OPEC crude production fell by 1 mb/d to 32.06 mb/d in Jan.
• Lower production was partly offset by higher flows from Libya and Nigeria, which are exempt from cuts.
• OECD total oil stocks fell nearly 800 kb/d in 4Q16, the largest fall in three years.
• End-Dec inventories were below 3k mb for the first time since Dec 2015. Stocks continued to build in China and other emerging economies, volumes of oil at sea also increased.
• After falling by 0.8 mb/d last year, non-OPEC output will grow by 0.4 mb/d in 2017.
• Growth is mainly in the Americas, where higher prices are fueling increased investments in US LTO activity and long lead-time projects are coming on stream in Brazil and Canada.

Reminder: Baker Hughes rig count data will be released today at 1 pm ET.

• Last week's data showed a US oil rig count increase for the third consecutive week in a row.
• US oil rigs have been added for 13 out of the past 14 weeks.
  
• The number of active U.S. rigs drilling for oil rose by 17 to 583 rigs last week.
• The rig count is at its highest level since Oct 2015.

Notable Gainers:

• Oil & Gas Drilling & Exploration: Noble (NE, +12%)
• Equipment and services: GulfMark Offshore (GLF, +14%)
• Independent oil & gas: TransGlobe Energy (TGA, +10%)
• Major-integrated: Encana (ECA, +3%)
• Refining & Marketing: BP Prudhoe Bay Royalty Trust (BPT, +4%)
• Pipelines: Cheniere Energy Partners (CQP, +2%)

Notable Laggards:

• Oil & Gas Drilling & Exploration: Breitburn Energy (BBEPQ, -14%)
• Equipment and services: Forum Energy Technologies (FET, -9%)
• Independent oil & gas: Fieldpoint Petroleum (FPP, -5%)
• Major-integrated: Mitsui & Co (MITSY, -1%)
• Refining & Marketing: CVR Energy (CVI, -3%)
• Pipelines: Blueknight Energy Partners (BKEP, -1%)

In Current Trade:

• Mar WTI crude oil futures: up about $1.05 around $54.06/barrel (+2.0%)
• Mar natural gas futures: down about $0.11 around $3.03/MMBtu (-3.6%)
• Mar RBOB gasoline futures: up about $0.03 around $1.60/gallon (+2.2%)
• Mar heating oil futures: up about $0.03 around $1.70/gallon (+1.8%)

Earnings/News

• Buckeye Partners (BPL, +0.2%) missed by $0.23, beat on revs; raised distribution 1% Q/Q
  • Reported Q4 GAAP earnings of $0.78 per share, $0.23 worse than the Capital IQ Consensus of $1.01; revenues rose 10.0% year/year to $924.1 mln vs the $860.16 mln Capital IQ Consensus.
• Forum Energy Tech (FET, -9%) beat by $0.01, reported revs in-line
  • Reported a Q4 loss of $0.16 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of ($0.17); revenues fell 25.0% year/year to $147.1 mln vs the $146.43 mln Capital IQ Consensus.
• Western Gas Partners (WES, -0.4%) entered into an agreement with Williams Partners (WPZ, +0.5%) whereby WES will acquire WPZ's 50% non-operated interest in the assets of Delaware Basin JV Gathering
  • «This highly strategic transaction increases our exposure to the Delaware Basin, enables us to aggressively support our customers' accelerating drilling plans, and advances our objective of providing sustainable distribution growth over time,» said Chief Executive Officer, Don Sinclair. «With this consolidation of ownership in DBJV, we are taking another important step in the development of our fully integrated gas gathering and processing footprint in the Permian Basin. Our ability to develop these types of asset positions has proven to be successful in generating incremental returns for our unitholders, with the DJ Basin being our most notable example.»
• Sanchez Production Partners (SPP, +1%) increased quarterly distribution to $0.4310/unit from $0.4246/unit

Broker Calls

• MEG Energy (MEGEF, 0%) upgraded to Outperform at Raymond James
• Enerplus (ERF, +8%) upgraded to Outperform at BMO Capital Markets
• Gran Tierra Energy (GTE, +4%) upgraded to Outperform at Credit Suisse

• UK's FTSE: + 0.4%
• Germany's DAX: + 0.2%
• France's CAC: + 0.0%
• Spain's IBEX: -0.6%
• Portugal's PSI: + 0.2%
• Italy's MIB Index: -0.5%
• Irish Ovrl Index: -0.1%
• Greece ASE General Index: + 2.5%

• Mgmt is cautiously optimistic. Still long way to go… improved term contracts will signal a positive environment.
• Cameco is managing for difficult environment in the meantime (announced restructuring in January).
• Sees continued growth in reactor construction (currently at 58), which will lead to uranium consumption, but prices remain far from favorable. No one thought the market would get this bad, even after Fukushima.
• Supply/demand balance similar to last year but going in the right direction: Demand ~170 mln lbs/year, supply ~160 mln lbs; plus there is secondary supply of ~20 mln… Cautiously optimistic going forward due to reactor construction and more disciplined production.
• Optimistic Japanese reactors will come back on line this year but mgmt has been disappointed on this front for 5-6 tears in a row.
• China has become a big deal — really good customers.
• Will talk with S&P next week about ratings watch negative outlook (Jan 19) next week.
• Was surprised and disappointed with Tepco  -- believes that co is violating its agreement. The contract price is relatively high, which may be playing a role in Tepco trying to get out of it.
• Cameco reduced FY17 sales guidance from last month, which now excludes the TEPCO contract. Sees FY17 production down 7%. Sees realized price $49 for FY17 with avg. unit cost of $36-38/lb — this assumes current spot and term market prices.

Uranium stocks (URA +1.4%): URRE +3.5%, URG +3%, CCJ +2.7%, UEC +0.9% UUUU +0%

• Immunomedics (IMMU +23.57%) enters into exclusive global licensing agreement with Seattle Genetics (SGEN); agreement provides for potential payments of approximately $2 bln, SGEN to purchase 3 mln shares of IMMU common stock at $4.90/share
• Intercept Pharma (ICPT +6.42%) changed Phase 3 REGENERATE trial co-primary endpoints of 1) NASH resolution or 2) fibrosis improvement to an 'either or', de-riskingd the stud; mgmt remains confident in both primary endpoints
• Mead Johnson Nutrition (MJN +5.18%) to be acquired by Reckitt Benckiser (RBGLY) for $90 per share

• Biostage (BSTG -40.9%) prices public offering with expected total gross proceeds of approx. $8.0 mln at $0.40/share
• Tracon Pharma (TCON -21.65%) reports top-line results from a randomized Phase 2 clinical trial of TRC105 in recurrent glioblastoma (GBM) funded and conducted by the Clinical Therapy Evaluation Program (CTEP) of the National Cancer Institute
• BioTime (BTX -8.64%) prices 6,481,482 shares of its common stock at a public offering price of $2.70/share

• Sonoma Pharma (SNOA +10.77%) reported Q3 EPS from cont ops of $0.18 vs ($1.28) year ago on revs +35% y/y to $3.4 mln.
• Civitas Solutions (CIVI +3.63%) misses by $0.01 (GAAP), misses on revs; reaffirms FY17 guidance
• ICHOR Corporation (ICHR +3.47%) reports EPS in-line, revs in-line; guides Q1 EPS above consensus, revs above consensus

• Organovo (ONVO -14.68%) beats by $0.01, misses on revs; lowers FY17 revs below consensus due to order
• Cerner (CERN -4.47%) reports EPS in-line, revs in-line; guides Q1 EPS below consensus, revs in-line; guides FY17 EPS below consensus, revs in-line
• Taro Pharm (TARO -1.7%) reports Q3 EPS of $3.42 vs $4.41 year ago; revs -14.7% to $220.395 mln (no estimates).

• Spectrum Pharma (SPPI +9.67%) resumed with a Buy at Jefferies
• Medidata Solutions (MDSO +4.48%) upgraded to Buy from Neutral at SunTrust
• Tesaro (TSRO -2.33%) downgraded to Mkt Perform from Outperform at Leerink Partners

• Healthcare: IMMU (5.4 +25.47%), CPSI (27.43 +14.27%), FMI (27.3 +10.75%), ZLTQ (51.3 +8.96%), SPPI (5.57 +8.79%)
• Materials: HBM (8.86 +8.65%)
• Consumer Discretionary: SHLD (7.15 +29.06%), SKX (27.97 +20.15%), COLM (59.42 +11.5%)
• Information Technology: SWIR (23.55 +26.27%), INFN (11.83 +25.85%), QUOT (12.93 +18.58%), ATVI (46.9 +18.05%), ATEN (9.65 +12.21%), WEB (22.14 +12.1%), RPD (13.95 +11.07%)
• Energy: SDRL (1.96 +12.01%), NE (7.35 +10.86%), ERF (9.49 +7.66%)

• Healthcare: BIOB (0 -25.93%), ONVO (3.23 -14.32%), BTX (2.75 -8.64%), PTCT (12.91 -6.58%), CERN (51.66 -4.12%)
• Industrials: EGLE (5.14 -20.43%), WTS (61.1 -7.28%), BGC (16.85 -4.8%)
• Consumer Discretionary: BFAM (68.32 -4.41%)
• Information Technology: UBNT (54.27 -15.38%), YELP (35.98 -13.28%), APTI (15.34 -10.01%), CATM (46.1 -9.41%), MIME (21.59 -6.37%), CARB (19.03 -6.17%), CYBR (52.26 -5.56%), TWTR (15.68 -4.48%), G (24.2 -3.97%)
• Financials: TBBK (4.99 -5.77%)
• Energy: FET (22.28 -8.33%)

• Healthcare: IMMU (38.5 mln +25.47%)
• Materials: CLF (77.18 mln -3.43%), FCX (29.14 mln +4.16%), MT (17.67 mln +6.49%), AKS (15.12 mln -2.42%), VALE (13.22 mln +4.57%)
• Consumer Discretionary: F (11.38 mln +0.69%), JCP (11.34 mln -0.64%)
• Information Technology: TWTR (39.33 mln -4.48%), AMD (32.43 mln +0.45%), ATVI (30.47 mln +18.05%), NVDA (25.15 mln -1.61%), INTC (19.89 mln -0.45%), MU (11.69 mln -1.74%), INFN (10.24 mln +25.85%)
• Financials: BAC (34.6 mln -0.54%)
• Energy: SDRL (18.63 mln +12.01%), CHK (14.17 mln +1.66%), NE (11.77 mln +10.86%)
• Consumer Staples: MJN (39.67 mln +5.12%)

• Healthcare: IMMU (19.79x +25.47%), BTX (6.11x -8.64%), ICPT (3.48x +5.38%), CPSI (3.14x +14.27%), ZLTQ (2.87x +8.96%)
• Materials: CLF (4.99x -3.43%)
• Industrials: EGLE (8.36x -20.43%)
• Consumer Discretionary: SKX (4.47x +20.15%), SHLD (3.83x +29.06%)
• Information Technology: SWIR (12.43x +26.27%), UBNT (11.79x -15.38%), INFN (6.04x +25.85%), YELP (4.82x -13.28%), ATVI (4.16x +18.05%), RPD (4x +11.07%), HDP (3.9x +7.08%), APTI (3.72x -10.01%), CATM (3.27x -9.41%), QUOT (2.71x +18.58%)
• Consumer Staples: MJN (13.59x +5.12%)

The broader market is on pace to close with week with some decent gains on the Friday session, led higher by the Dow Jones Industrial Average which gains about 81 points (+0.40%) to 20252, the Nasdaq Composite is up about 17 (+0.30%) to 5732, and the S&P 500 adds about 7 (+0.30%) to 2314. Action has come on mixed average volume (NYSE 301 vs. avg. of 321; NASDAQ 837 mln vs. avg. of 778), with advancers outpacing decliners (NYSE 2026/939, NASDAQ 1694/1010) and new highs outpacing new lows (NYSE 178/0, NASDAQ 175/17).

Relative Strength:

Copper-JJC +4.5%, Copper Miners-COPX +3.9%, Steel-SLX +2.8%, Base Metals-DBB +2.7%, Mexico-EWW +2.3%, Latin Am. 40-ILF +2.2%, US Gasoline-UGA +2.1%, Greece-GREK +2.0%, Jr. Gold Miners-GDXJ +2.0%, Silver Miners-SIL +1.9%, Brazil-EWZ +1.9%, S. Africa-EZA +1.6%, Australia-EWA +1.4%, Taiwan-EWT +1.4%.

Relative Weakness:

US Nat Gas-UNG -2.4%, Cocoa-NIB -2.2%, Short-Term Futures-VXX -1.9%, Sugar-SGG -1.8%, Turkey-TUR -1.6%, Spain-EWP -0.9%, Social Media-SOCL -0.8%, Platinum-PPLT -0.7%, New Zealand-ENZL -0.6%, Italy-EWI -0.5%, Netherlands-EWN -0.4%, Belgium-EWK -0.3%, Israel-EIS -0.3%, Uranium/Nuclear Energy-NLR -0.3%.

Taking a look at the options market, we found the following names that may be worth watching throughout the day for further indication of investor expectations given their options volume and implied volatility movement.

Stocks seeing volatility buying (bullish call buying/bearish put buying):

Calls:

• SVU Apr 4 calls are seeing interest with 5000 contracts trading vs. open int of 17.8K, pushing implied vol up around 3 points to ~40% — nearly 3K traded in a single transaction. Co reported earnings last month and is expected to report its next quarter late April (likely outside of expiration).
• BBT Feb 46 calls are seeing interest with 2000 contracts trading vs. open int of 3020, pushing implied vol up around 1 points to ~18% — 2K traded in a single transaction. Co is expected to report earnings late April.

Puts:

• FOSL Feb 20 puts are seeing interest after it was downgraded to Underperform from Neutral at Mizuho with 7320 contracts trading vs. open int of 320, pushing implied vol up around 36 points to ~158% — over 4300 contracts traded in a single transaction. We noted activity in the Mar03 27 calls earlier this month (see 2/1 13:29 OPTNX). Co is confirmed to report earnings next week, February 14 after the close.
• BKD Feb 14 puts are seeing interest ahead of earnings next week, Monday February 13 after the close with 10.6K contracts trading vs. open int of 570, pushing implied vol up around 33 points to ~98% — 5K contracts traded in a single transaction.

Stocks seeing volatility selling:

• ALLY Mar 22 puts are active with 1040 contracts trading vs. open int of 60, pushing implied vol down around 2 points to ~24% — we noted activity in the Mar 23 calls last week (see 2/6 13:33 OPTNX). Co reported earnings late January and is expected to report its next quarter late April.
• MT, ZNGA, YELP, EXPE, ELLI implied vol is lower following earnings/guidance

Sentiment: The CBOE Put/Call ratio is currently: 0.89… VIX: (10.62, -0.26, -2.4%).
February 17 is options expiration — the last day to trade February equity options.
*Please use the Talk to Us link at the top of the page to provide feedback on this comment as well as the OPTNX comments.

• Friday (February 10)
  • After-Hours: KNL       
• Monday (February 13)
  • Pre-Market: TEVA, FDC, QSR, NSP, LNCE, HCP, TSEM, WEX, VSM, NNN, STNG, CSWI, USAC, DCIX
  • After-Hours: BKD, NBL, AMKR, FLO, ACGL, OMF, SCI, RCII, VNO, BRKR, MPSX, DCP, AGII, BRX, DDR, FRT, GPOR, CSOD, RNG, CHGG, etc...
• Tuesday (February 14)
  • Pre-Market: AUO, TMUS, DISCA, DPS, DBD, WSO, MLM, AB, CAE, ITT, LECO, TOWR, FLIR, CRL, TRU, GNRC, MGI, STFC, INCY, IPGP, VG, AYR, AMAG, ACOR, CPLA, SALE, TTS, etc...
  • After-Hours: ESRX, AIG, INT, DVN, OMI, ENLK, FOSL, ASGN, BYD, CCS, IOSP, DIOD, LXFT, PAAS, MASI, FANG, CIM, RPAI, CALX, HOLI, SKT, etc...
• Wednesday (February 15)
  • Pre-Market: PEP, BG, USFD, TECK, ETR, HLT, HUN, LAD, WYN, ICL, GRPN, ADI, CIGI, DNOW, ALE, MFS, CBB, OZM, ALKS, FUN, SODA, SHOP, PLAB, etc...
  • After-Hours: CSCO, SLF, KHC, MAR, MOH, CBS, AMAT, ABX, CAR, WMB, NTES, NTAP, CC, ANDE, MRO, GG, SPWR, EQIX, SRCL, CF, KGC, HAWK, IFF, SNPS, CW, CPA, AEM, GDDY, CVA, NLY, etc...
• Thursday (February 16)
  • Pre-Market: YNDX, CHTR, DUK, PCG, PBF, SHPG, TRP, WM, CVE, MGM, LH, FTS, DF, HII, AVP, AEE, CAB, SCG, ZTS, CVI, CVRR, H, TIME, etc...
  • After-Hours: DVA, ED, RSG, TRN, FLS, CPS, MRC, KEYS, NUS, DLR, MEP, AUY, CRC, AMN, MDRX, NWE, ANET, NAVG, LOPE, WBMD, TMST, UEIC, etc...
• Friday (February 17)
  • Pre-Market: ENB, FLR, DE, VFC, CPB, SJM, LPNT, SE, BLMN, MCO, AAN, CTB, WBC, SEP, GVA, POR, MTRN, ROCK, ATRO, etc...
  • After-Hours: None of note