Америка сегодня. Рынки труда и недвижимости.

• On February 15, 2017, the Board of Directors of Franklin Resources (BEN) took action to add Chief Operating Officer to Jennifer M. Johnson's title. Effective as of February 15, 2017, Ms. Johnson's title is President and Chief Operating Officer. Ms. Johnson, age 52, has served as President of the Company since December 31, 2016, and previously served as Co-President of the Company from October 2015 to such date. 
• On February 7 2017, Educational Development (EDUC) and MidFirst Bank entered into a Fourth Amendment Loan Agreement. This amendment granted a waiver related to the «Debt to Worth Ratio» of the co's Loan Agreement with which it was in violation of at the time its financial statements dated November 30, 2016 were filed. In addition, the agreement deleted the «Debt to Worth Ratio» provision and substituted a new covenant «Minimum Tangible Net Worth» calculation, along with a modification in the «Funded Debt to EBITDA Ratio» to an «Adjusted Debt to EBITDA Ratio». The Company has experienced extraordinary growth the past two years. Net revenues in Fiscal Year 2015 were $33 million, Fiscal Year 2016 $64 million, and Fiscal Year ending February 2017 projected to reach $109 million. This growth has required the Company to invest in additional inventory, warehouse fulfillment equipment and software upgrades. Management believes it is in the best interest of the shareholders to suspend the dividend and focus all resources and cash requirements toward financing future growth.
• Sun Life Financial Inc. (SLF) announced that James H. Sutcliffe will retire as Chairman and from the Board of Directors following the Company's Annual Meeting on May 10, 2017. He will be succeeded as Chairman by William D. Anderson who has been a Director since 2010 and currently chairs the Company's Audit and Conduct Review Committee.

• The global equity markets are easing off of recent highs in the overnight session, with the S&P Futures down ~4 pts heading into the open. It was a fairly dull night, however with volume on the lighter side and only a 5 point range.
• China was among the only markets to see strength on Thursday. The PBOC stepped up its Open Operations, stepping up liquidity injections to a sizable amount of CNY250 bln in reverse repos. This may have been in response to the State issued Foreign Direct Investing figure for January, which fell 9.2% YoY. Although the number was likely a disappointment for the domestic economy, it should be noted that this could have been an isolated event, considering most of the recent economic data has been solid and the Lunar New Year was earlier than last year.
• In Japan, the Nikkei traded in its usual pattern of trading lower on yen strength. The index only gave back half of the prior day's gains, closing 0.5% lower on the day. As expected, Exporters were hit hard during the session, while the hot Financial sector could not muster enough strength to support the broader market.
• Across the pond, the major bourses are trading lower for the first time in over a week. Nestle (-2%) is among the heavyweights trading in negative territory, after the consumer giant released year-end results, expressing some caution in its outlook for 2017. The FTSE is biggest laggard this morning, however it should be noted that several of the larger index components (such as BP, Shell, and AstraZeneca) go ex-dividend today.

Market updates:

• S&P Futures vs Fair Value: -4.00 
• 10 yr Note: 2.4717% 
• USD/JPY: 113.57 -0.54 
• EUR/USD: 1.0637 +0.0039
• Europe: FTSE -0.5% DAX -0.2% CAC -0.4% 
• Asia: Hang Seng +0.5% Shanghai +0.5% Nikkei -0.5% 
• Commodities: Gold (1238.50 +5.40) Silver (18.05 +0.08) crude (53.86 +0.26) 

US Econ Data

• January Housing Starts & Building Permits (8:30am)
• Initial Claims (8:30am)
• February Philadelphia Fed (8:30am)
• Natural Gas Inventories (10:30am)

• Cigna (CI) in a regulatory filing confirmed that on February 15, 2017, the Chancery Court granted Anthem's motion for a temporary restraining order and issued an order temporarily enjoining the Company from terminating the Merger Agreement. This is not a decision on the merits of the case, but rather a procedural order to ensure irrevocable actions do not take place before the Chancery Court's substantive review of the issues. Cigna respects the Chancery Court's decision and will continue to abide by terms of the Merger Agreement until the Chancery Court further reviews the case. A hearing will be scheduled the week of April 10 and we look forward to more fully briefing the Chancery Court at that time.
• The European Commission has approved under the EU Merger Regulation the acquisition of joint control of Skytec UMC of Cyprus, by Skytec of Cyprus and Sharp of Japan (SHCAY). Skytec UMC designs, manufactures and distributes TVs under its own brands and under third party brands in the European Economic Area. The Commission concluded that the proposed acquisition would raise no competition concerns because following the sale of Sharp's TV business to Skytec UMC, Sharp no longer had activities in these markets in the EEA.

• Neuralstem (CUR) announced completion of subject enrollment in its Phase 2 clinical trial of NSI-189 for the treatment of major depressive disorder (MDD). NSI-189 is a new chemical entity and the lead compound in Neuralstem's neurogenic small molecule program. Enrollment was completed ahead of schedule and data are expected in 3Q 2017.
• Glaukos Corporation (GKOS) announced the completion of patient enrollment in the pivotal phase of its FDA Investigational Device Exemption trial for the iStent SUPRA Suprachoroidal Micro-Bypass Stent.
• Windtree Therapeutics (WINT) announced that data from a preclinical influenza study showed that aerosolized KL4 surfactant reduced lung inflammation and improved overall survival in a well-established preclinical animal model.

Major European indices trade in the red, but losses have been contained for the time being. The latest policy minutes from the European Central Bank showed that policymakers do not see a convincing upward trend in inflation. Separately, Bundesbank President Jens Weidmann said it would be a mistake to roll back financial market regulations since bad loans triggered the last crisis. Elsewhere, European Commissioner Pierre Moscovici made upbeat comments about an expected bailout review agreement with Greece.

• In economic data:
  • France's Q4 Unemployment Rate 10.0% (expected 9.7%; last 10.1%)
  • Italy's December trade surplus expanded to EUR5.80 billion from EUR4.19 billion (expected surplus of EUR4.00 billion)

---Equity Markets---

• Germany's DAX is lower by 0.3%. Commerzbank is the weakest performer, falling 1.6%. Deutsche Bank also trades in the red, down 0.6%, while exporters like Volkswagen, BMW, and Daimler show losses between 0.4% and 0.8%. Lufthansa outperforms, rising 2.2%.
• France's CAC has given up 0.4%. Schneider Electric leads the retreat with a 4.7% decline in reaction to disappointing results. Consumer names like Danone, L'Oreal, Carrefour, and Klepierre show losses between 0.7% and 2.0%.
• UK's FTSE is down 0.4%. AstraZeneca is down 3.6% while miners like Anglo American, Antofagasta, Glencore, and Fresnillo show losses between 0.8% and 3.1%. On the upside, Shire has jumped 3.9% while peers GlaxoSmithKline and Hikma Pharmaceuticals are both up near 1.1%.

• RBC notes that in 2016 CBS said what it would do, and then it did what it said. This kind of visibility and execution on strategy deserves at least an S&P multiple, so they comfortably value CBS on 17x P/E and raise their price target to $78 from $70; reiterate Outperform. 
• Pivotal notes that CBS reported 4Q16 results with revenues below expectations, profit margins well above expectations and EPS that essentially matched forecasts. With refinements to their model for the year ahead, their price target is unchanged at $67 on a YE2017 basis and they maintain their Hold rating.
• FBR notes that CBS's in-line 4Q16 supported a bankable growth story that they see as the most appealing, on a fundamental basis, in the TV network group. Radio was stripped out as discontinued, due to the pending Entercom merger/split, resulting in revenues and adjusted OI not being comparable to consensus but adjusted EPS being comparable. Versus their ex-radio estimates, revenue of $3,518M, down 2% YOY, was $57M below their estimate of flat, mainly because the comp for a year-ago international licensing deal at Showtime was tougher than we modeled; and Showtime revenues of $501M were $25M light. Reiterate $86 price target and Outperform. 

Shares are trading ~1% lower pre-market

• Clearside Biomedical (CLSD) announced the enrollment of the first patient in a Phase 3 clinical trial («SAPPHIRE») of Zuprata, its proprietary suspension formulation of the corticosteroid triamcinolone acetonide, used together with EYLEA® (aflibercept) for the treatment of macular edema associated with retinal vein occlusion.
• Imprimis Pharmaceuticals (IMMY) announced that it has begun shipping its core sterile ophthalmic medications to select customers from its FDA-registered outsourcing facility without the need for a patient-specific prescription. Over the next few weeks Imprimis' flagship Dropless Therapy injectable and LessDrops topical formulations will become available to all customers.
• A new multi-year agreement between Microsoft (MSFT) and MGM Resorts International (MGM) is a first for both companies. To MGM Resorts, the deal represents the largest single-corporation meeting event ever hosted by the leading global entertainment company. To Microsoft it marks the first time the computer giant has combined four separate annual events, with as many as 30,000 participants, into one signature meeting.
• AdCare Health Systems (ADK) announced it has signed a letter of intent to purchase an assisted living facility with 106 operational beds located in Alabama for $5.5 million.
• TRACON Pharmaceuticals (TCON) announced that it has initiated patient dosing in its Phase 3 TAPPAS (TRC105 And Pazopanib versus Pazopanib alone in patients with advanced AngioSarcoma) trial of TRC105.

• Net profit after tax reduced to $1.8 billion due to planned restructuring costs and increased amortisation associated with shorter asset life for business software.
• The Telstra Board announced an FY17 interim dividend of 15.5 cents per share fully franked, returning $1.8 billion to shareholders.
• Added 200,000 domestic retail mobile services, 90,000 retail fixed broadband customers, 124,000 bundles, 292,000 nbn connections and 322,000 Telstra TV devices.
• Outlook: Telstra today reconfirmed FY17 guidance of mid to high-single digit income growth and low to midsingle digit EBITDA growth. Free cash flow is expected to be in the range of $3.5-4 billion and capital expenditure is expected to be approximately 18 per cent of sal «First half income growth was impacted by lower hardware revenue. Given this, we expect that full year FY17 income growth will be at the bottom end of our mid to high-single digit range. In the second half of FY17, the MTAS impacts in the first half will drop out of the comparison so the full year effect will be smaller, and the nbn rollout is expected to accelerate in accordance with the nbn Corporate Plan,»

Gapping up
In reaction to strong earnings/guidance:

• WINT +16.9%, TIVO +13.6%, CSLT +12.7%, SNPS +7.6%, NTES +7.3%, KATE +6.8%, (also announce it is reviewing strategic alternatives) NTAP +5.3%
• QUIK +4.2%, CRY +4.1%, SRCL +4%, NGD +3.9%, TPX +3.9%, ALXN +3.4%, LBTYA +3.3%, CIR +3.3%, GNCA +2.4%, NMIH +2.1%, GG +2%, ABX +2%
• CHH +1.7%, CSCO +1.6%, SHPG +1.6%, EQIX +1.4%, AMAT +1.4%, SSNC +1.3%, PBFX +1.2%, GFI +1.2%, CVA +1%, TRP +1%

M&A news:

• HGG +17.5% (HHGregg confirms plans to explore strategic alternatives)
• RAD +2.6% (Walgreens (WBA) is optimistic regarding FTC approval for RAD M&A deal due to divesture package, according to NY Post)
• BIDU +0.5% (acquired digital assistant startup Raven Tech, according to TechCrunch)

Other news:

• XTLB +58.4% (continued strength), SCON +42.6% (receives a U.S. Patent enabled by STI's proprietary superconducting wire manufacturing method)
• MDGS +37.4% (announces tha tthe China FDA has approved the commencement of the first multi-center MUSE Clinical Study in China)
• CVRS +22.7% (Corindus Vascular Robotics announces a distribution agreement w/ a subsidiary of Mitsubishi (MSBHY); includes an initial order for 12 CorPath GRX Systems accompanied by an advance of $2 million toward the purchase price), RUBI +11% (still checking), BLDP +7.6% (receives 5-year, $25 mln deal Broad-Ocean Motor Co)
• PGNX +5.6% (to join S&P SmallCap 600), SFLY +3.1% (to join S&P SmallCap 600)
• VRX +2.6% (FDA approves Siliq to treat adults with moderate-to-severe plaque psoriasis)
• TTM +2.3% (Tata Motors and and Microsoft (MSFT) India confirm that cos will collaborate on connected cars)
• FOLD +2.1% (presents additional positive preliminary Phase 1/2 Data; demonstrates improving trends in majority of patients)
• FL +1.3% (increases quarterly dividend to $0.31/share from $0.28/share; approves a new 3-year $1.2 bln share repurchase program extending through January 2020, replacing the previous $1 bln program; approves $277 mln capital expenditure program for 2017)
• GSK +1% (in sympathy with SHPG earnings)
• ALGN +0.9% (announces it has prevailed in proceedings initiated by ClearCorrect Operating that challenged the validity of three of its U.S. patents)

Analyst comments:

• MDCA +4.6% (upgraded to Buy from Hold at Jefferies)

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

Housing starts decreased to a seasonally adjusted annualized rate of 1.246 million units in January, down from a revised 1.279 million units in December (from 1.226 million). The Briefing.com consensus expected starts to decrease to 1.220 million units. Building permits increased to a seasonally adjusted 1.285 million in January from a revised 1.228 million (from 1.210 million) for December. The Briefing.com consensus expected a reading of 1.230 million.

The latest weekly initial jobless claims count totaled 239,000 while the Briefing.com consensus expected a reading of 245,000. Today's tally was above the unrevised prior week count of 234,000. As for continuing claims, they declined to 2.076 million from the revised count of 2.079 million (from 2.078 million).

The Philadelphia Fed Survey for February rose to 43.3 from an unrevised 23.6 in January while economists polled by Briefing.com had expected a reading of 17.5.

European Debt Rallies as ECB Releases Minutes

• European sovereign debt is trading higher across the board this morning as the minutes from the ECB Governing Council's January 19 meeting said that there is «some room for a trade-off between relative deviations from the capital key across jurisdictions and limiting the extent of purchase below the [deposit rate]». More deviation from the capital key, which apportions the bond purchases for the ECB's asset purchase program roughly in proportion to the size of each economy, would allow the ECB to buy more peripheral debt. The release of the minutes sent short-term German debt, like the two-year schatz, lower. In recent weeks, the front end of the German yield curve has moved near to record lows as investors priced in the removal of the deposit-rate floor for asset purchases. That is, since January 1, the ECB's public sector purchase program has been allowed to buy securities yielding less than -0.40%. On the inflation front, the ECB minutes showed little concern about the recent jump in inflation in the eurozone, with most policymakers considering it to be a reflection of rebounding energy prices rather than indicative of broad price pressure. Unemployment remains high in most eurozone countries, Germany being the most obvious exception, so there is reason to believe that a lot of excess capacity remains
• New Issuance:
  
  • Spain sold EUR2.05 bln of five-year Bonos with an average rate of 0.532% and a bid-to-cover of 1.53
  • Spain sold EUR1.02 bln of 10-year ODEs with an average rate of 1.733% and a bid-to-cover of 2.95
  • Spain sold EUR1.48 bln of 11y 8m ODEs with an average rate of 1.894% and a bid-to-cover of 1.67
  • France sold EUR3.25 bln of 3-year BTANs with an average rate of -0.34% and a bid-to-cover of 2.06
  • France sold EUR3.75 bln of 5-year BTANs with an average rate of 0.09% and a bid-to-cover of 2.05
• European Economic Data:
  
  • France's unemployment rate fell less than expected to 10.0% for the fourth quarter from 10.1% for Q3
  • Italy's trade surplus unexpectedly widened to EUR5.8 bln for December from EUR4.19 bln in November
    
    • Separately, Italy's parliament approved the creation of an EUR20 bln fund to recapitalize its banks
  • Sweden's ILO Unemployment Rate remained at 6.9% in January, beating forecasts for an uptick
• Yield Check:
  
  • France, 10-yr OAT: -2 bps to 1.04%
  • Germany, 10-yr bund: -1 bp to 0.37%
  • Greece, 10-yr note: +2 bps to 7.66%
  • Italy, 10-yr BTP: -6 bps to 2.19%
  • Portugal, 10-yr PGB: -9 bps to 3.98%
  • Spain, 10-yr ODE: -8 bps to 1.61%
  • U.K., 10-yr gilt: -2 bps to 1.28%

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

Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note while Japan's Nikkei (-0.5%) underperformed amid an uptick in the yen (113.71), which has added 0.4% against the dollar. Yesterday's TIC data showed that China increased its holdings of U.S. Treasuries for the first time in seven months. Elsewhere, employment data from Australia showed better than expected overall growth, but gains were entirely due to part time employment.

• In economic data:
  • China's FDI -9.2% (expected 1.4%; last 5.7%)
  • Australia's MI Inflation Expectations 4.1% (last 4.3%). January Employment Change 13,500 (expected 10,000; last 16,300) and Full Employment Change -44,800 (last 11,300). January Unemployment Rate 5.7% (expected 5.8%; previous 5.8%).

---Equity Markets---

• Japan's Nikkei lost 0.5%, but remained near this year's high. Toshiba lost 3.4% after it was revealed the stock will be relegated to the second-tier index. Fast Retailing, Olympus, Rakuten, Mitsubishi Motors, Marui Group, and Sony fell between 1.0% and 2.9%.
• Hong Kong's Hang Seng gained 0.5% with financials contributing to the advance. China Construction Bank, Bank of China, HSBC, BoC Hong Kong, and Hang Seng Bank posted gains between 0.2% and 2.9%. Lenovo Group plunged 6.7% in reaction to disappointing earnings.
• China's Shanghai Composite rose 0.5%. Shanxi Coking, Rising Nonferrous Metals Share, Changchun Gas, China Jialing Industrial, and Wanhua Chemical Group gained between 5.4% and 6.8%.
• India's Sensex advanced 0.5%. Sun Pharma jumped 4.3% while Infosys, Maruti Suzuki, Tata Motors, Tata Steel, and Tata Consultancy climbed between 1.3% and 3.0%. On the downside, ITC lost 2.5%.

Major European indices trade in the red, but losses have been contained for the time being. The latest policy minutes from the European Central Bank showed that policymakers do not see a convincing upward trend in inflation. Separately, Bundesbank President Jens Weidmann said it would be a mistake to roll back financial market regulations since bad loans triggered the last crisis. Elsewhere, European Commissioner Pierre Moscovici made upbeat comments about an expected bailout review agreement with Greece.

• In economic data:
  • France's Q4 Unemployment Rate 10.0% (expected 9.7%; last 10.1%)
  • Italy's December trade surplus expanded to EUR5.80 billion from EUR4.19 billion (expected surplus of EUR4.00 billion)

---Equity Markets---

• Germany's DAX is lower by 0.3%. Commerzbank is the weakest performer, falling 1.8%. Deutsche Bank also trades in the red, down 0.5%, while exporters like Volkswagen, BMW, and Daimler show losses between 0.4% and 1.0%. Lufthansa outperforms, rising 2.1%.
• France's CAC has given up 0.4%. Schneider Electric leads the retreat with a 4.6% decline in reaction to disappointing results. Consumer names like Danone, L'Oreal, Carrefour, and Klepierre show losses between 0.6% and 1.9%.
• UK's FTSE is down 0.3%. AstraZeneca is down 3.5% while miners like Anglo American, Antofagasta, Glencore, and Fresnillo show losses between 1.0% and 3.0%. On the upside, Shire has jumped 4.8% while peers GlaxoSmithKline and Hikma Pharmaceuticals are both up near 1.3%.

Filings:

• NGL Energy Partners (NGL) files for mixed securities shelf offering
• Oncobiologics (ONS) files for approx 2.02 mln share common stock offering by holders
• PepsiCo (PEP) files mixed securities shelf offering

Offerings:

• Atkore International (ATKR) commences 8 mln common stock offering by selling stockholder CD&R Allied Holdings, L.P., an affiliate of Clayton, Dubilier & Rice, LLC
• Civista Bancshares (CIVB) commences $30 mln common stock offering

Pricings:

• Evoke Pharma (EVOK 3.40) prices 2,413,793 share offering at $2.90/share
• Martin Midstream (MMLP 18.85) prices 2.6 mln common unit offering at $18.00 per unit
• NGL Energy Partners (NGL 24.15) upsizes offering by 800K units and prices 8.8 mln common units for gross proceeds of $198 mln
• OSI Systems (OSIS 77.59) upsizes offering and prices $250 mln of its 1.25% Convertible Senior Notes due 2022
• Transunion (TRU 37.35) prices secondary offering by certain of its stockholders of 19.85 mln shares of common stock at $36.90
• Windtree Therapeutics (WINT 1.36) completes $10.5 mln private placement of convertible preferred stock units

• Invesco (IVZ) announced that Jemstep, Inc., Invesco's digital advice platform, is partnering with Shareholders Service Group, a brokerage and custodial services firm that works exclusively with independent registered investment advisors. Jemstep Advisor Pro will be made available in Q1 2017 to more than fifteen hundred independent RIA client firms who do business with SSG.
• Mitel (MITL) announced the further expansion of its business and global presence in the ASEAN region through a new distribution agreement with Exclusive Networks Ltd. As part of the agreement, Exclusive Networks will serve as a distributor of Mitel's MiVoice Business and MiContact Center offerings in Singapore, Malaysia and Thailand with other countries to follow.
• As previously disclosed, the Federal Communications Commission announced United States Cellular (USM) as a qualified bidder in the FCC's forward auction of 600 MHz spectrum licenses, referred to as Auction 1002. The Clock Phase of the auction was completed on February 10, 2017. With the completion of the Clock Phase of the auction, U.S. Cellular is now committed to purchase 600 MHz spectrum licenses on which it submitted bids for a minimum amount of $327 million, subject to increase as the FCC completes the Assignment Phase of the auction, which is pending. U.S. Cellular expects to be obligated to pay for the total committed amount, less the $143 million upfront payment made in June 2016, in the second quarter of 2017. U.S. Cellular currently expects to make such payment using cash on hand and/or borrowings under its revolving credit agreement.

• Drexel Hamilton raises their ADI tgt to $93 from $90. ADI delivered a very strong January quarter, with the largest upside coming from a much better than expected Consumer segment, which supplies Apple's Force Touch technology, while its B2B segments also outperformed, seeing broad strength consistent with what they've heard from most peers. They believe the Consumer outperformance is a result of stronger global Apple volumes that drove higher turns business during the quarter, plus about a 30% increase in ADI dollar content in current generation products. With a focus on expanding and diversifying its engagements into additional functionality, they believe ADI has the potential to see further dollar content increases in next-generation platforms.
• RBC raises tgt to $90 from $85. They see the ADI/LLTC transaction as complementary, and see the combined co sustaining higher margins/FCF with potential for revenue acceleration given ability to cross-sell solutions across their customer stack.
• Stifel raises tgt to $90 from $86.after ADI announced substantial upside to F1Q17 results and F2Q17 guidance, as it continues to see healthy, broad-based demand in its B2B businesses, even as Consumer has performed well above seasonal trends. With the impending close of its LLTC acquisition, ADI will achieve top two market share positions in all key analog building blocks—data converters, power management, amplifiers, interface, RF and microwave. Over the intermediate and longer term, they believe the combined company could generate significant revenue synergies not only through greater cross-selling opportunities, but by leveraging their individual technological strengths to bring unique solutions to market. As such, they remain constructive and reiterate Buy rating on ADI shares.
• Wells Fargo downgraded to Market Perform
• ADI indicated slightly lower premarket.

• Review of Next Steps:
  • Shareholder approval for MSR sale to NRZ and PHH Home Loans transaction
    • Targeting approval during second quarter 2017
  • Close sale transactions for MSR and related advances
    • Target closing of initial sale to NRZ in second quarter and final closing in the fourth quarter
  • Monetize investment in PHH Home Loans Joint Venture
    • Target interim closings beginning in June and final closing in the fourth quarter
  • Return of capital to shareholders
    • Anticipated to begin after closing substantially all asset sales
  • Cost re-engineering and transition to PHH 2.0
    • Intend to execute over the next 12 — 18 months
  • Complete exit from PLS
    • Expect to substantially complete by first quarter 2018
    • Estimated total cash operating losses and exit costs of $195 million to $220 million
• PHH 2.0 
  • Near-term profit outlook = Approaching break-even in 2018 and Profitable in 2019
• Key takeaways:
  • Co intends to monetize a substantial amount of its assets for total proceeds of approximately $1.1 billion
  • Co has decided to exit unprofitable business lines
  • Co estimates up to $550 million of excess cash could be available after asset sales and meeting all cash requirements
  • Co has determined that dissolution of the business was suboptimal for shareholders
  • Co is transitioning to smaller, more focused, capital light business comprised of subservicing and portfolio retention («PHH 2.0»)
  • The co believes PHH 2.0 has the potential to earn low double-digit to mid-teen returns after achieving cost re-engineering and organic growth objectives
  • The co intends to begin to return substantially all of its excess cash to shareholders after closing substantially all of its asset sales

• Mondelez Int'l (MDLZ -3.6%), General Mills (GIS -2.0%), Kraft Heinz (KHC -3.9%) and Kellogg (K -1.3%) are all trading lower after David Faber on CNBC noted that 3G Capital will not be looking to roll into the next deal with KHC, if there is one. This is pressuring food/consumer packaged goods companies, where M&A speculation has been prevalant.
• Other stocks in the consumer space to watch include Post (POST), McCormick (MKC), Treehouse (THS), Hain Celestial (HAIN), ConAgra (CAG), Campbell (CPB), Smucker (SJM), Pinnacle Foods (PF), and  B&G Foods (BGS).
• Current changes: KHC -3.8%, MDLZ -3.6%, GIS -1.9%, K -1.5%, CPB -1%, THS -0.9%, POST -0.8%, MKC -0.6%, SJM -0.5%, PF -0.5%, BGS -0.2%, CAG 0%, HAIN +0.2%.

The tech sector — XLK — trades ahead of the broader market. Semiconductors, meanwhile, display relative weakness as the SOX index trades -0.02%. Within the SOX index, CRUS (+1.09%) outperforms, while LRCX (-1.07%) lags. Among other major indices, the SPY is trading 0.11% lower, while the QQQ +0.02% and the NASDAQ +0.03% trade modestly higher on the session. Among tech bellwethers, ORAN (+1.21%) is showing relative strength, while CHA (-1.63%) lags.

Notable gainers following earnings:

• NTES (+9.6%) reported better than expected Q4 EPS and revs, CSCO (+3.0%) reported better than expected Q2 EPS and in-line revs; guided Q3 EPS and revs in-line, EQIX (+0.2%)

Notable laggards following earnings:

• TRIP (-5.0%) reported worse than expected Q4 EPS and revs, GDDY (-4.5%) reported Q4 EPS and in-line revs; guided Q1 revs below market expectations, FY17 revs ahead of market expectations, AMAT (-1.2%)

Gainers on news:

• MSFT (+0.6%) co's India arm and Tata Motors (TTM) confirmed the two parties will collaborate on connected cars.
• QCOM (+0.2%) co's Chief Accounting Officer John Murphy to resign effective March 17 to pursue other opportunities.
• ADBE (+0.2%) co named John Murphy as Chief Accounting Officer effective March 20.

Laggards on news:

• DBD (-1.7%) co appointed Juergen Wunram as Chief Operating Officer; President Eckard Heidloff resigns effective March 31.
• VZ (-0.2%) co acquired Skyward; terms not disclosed.
• TWX (-0.1%) co shareholders approved proposed merger w/ AT&T Inc. (T); co continues to expect the transaction to close before year-end 2017.

Among notable analyst upgrades:

• NTAP (+4.6%) upgraded to Market Perform from Underperform at William Blair
• NTAP (+4.6%) to Buy from Hold at Lake Street
• CAVM (+3.1%) to Buy from Neutral at BofA/Merrill
• SPWR (-3.8%) to Outperform from Perform at Oppenheimer
• SSNC (+4.3%) to Outperform from Neutral at Macquarie

Among notable analyst downgrades:

• GDDY (-4.5%) downgraded to Hold from Buy at Summit Redstone
• ADI (+0.0%) to Market Perform from Outperform at Wells Fargo
• IDTI (-1.7%) to Neutral from Buy at BofA/Merrill
• GRPN (-0.5%) to Neutral from Outperform at Wedbush
• SONS (-1.6%) to Neutral from Buy at DA Davidson
• ANGI (-3.7%) to Sell at Roth Capital
• XXIA (-0.1%) to Hold from Buy at Stifel

Scheduled to report earnings after the bell:

• AIRG MDRX AMBR ANET BCOV CGNX COHU FIVN GLOB PI MCHX TTD TRUE VECO WBMD YUME

Scheduled to report earnings tomorrow morning:

• TYPE

• The co reported Q4 Adj-EPS of $0.55 vs the $0.83 two analyst estimate (GAAP EPS was ($1.08) vs. the $0.32 two analyst GAAP estimate); revs were -11.58% y/y to $238.63 mln vs $217.10 mln two analyst estimate. Fourth quarter 2016 EPS were impacted by an adjustment to increase the effective income tax rate for the first three quarters of 2016 from 20% to 29%. Additionally, the fourth quarter 2016 included a litigation settlement loss of $28.0 million, which is net of an anticipated $4.0 million insurance recovery, related to an agreed upon settlement of a class action lawsuit, subject to final court approval; the fourth quarter 2015 included a non-cash impairment loss of $71.8 million
• The Company also announced that it is actively exploring refinancing its existing $480 million Senior Secured Term Loan to, among other things, extend the maturity date.
• Commentary from earnings slides — Call starts at 11 AM
  • Co sees 2017 Adj-Service revenue unrelated to Ocwen (OCN) of $275-365 mln vs. $236 mln in 2016
  • 2017 Service Revenue Scenario calls for revenues of $790-930 mln
• «In 2016, we continued our transformation from a mortgage services company generating the majority of revenue from Ocwen to a real estate and mortgage marketplace company offering many of the same innovative solutions to a diversified customer base. Because the sales cycle was longer than originally projected, our 22% non-Ocwen service revenue growth and earnings were lower than we anticipated. We are disappointed that we did not achieve our anticipated non-Ocwen revenue growth but the progress made in 2016 positions us for a higher rate of non-Ocwen growth in 2017 and beyond...We believe the ongoing investments we are making in our growth will produce a high return on investment and are critical to the franchise we are building.»

Shares are down 21% following this morning's report

The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

• NTES (289.72 +10.64%): Reports Q4 EPS and revenue beats; increases dividend.
• NTAP (41.2 +5.83%): Reports Q3 EPS and revenue beats; increases dividend.
• SHPG (179.6 +3.1%): Shares rise on Q4 EPS and revenue beats.

Large Cap Losers

• MGM (27.58 -6.82%): Reports Q4 EPS miss.
• AEM (48.1 -2.67%): Shares fall on Q4 EPS and revenue misses.
• SLF (39.13 -2.83%): Reports Q4 EPS and revenue misses.

Mid Cap Gainers

• TIVO (21.13 +10.6%): Shares rise on Q4 revenue beat; increases share repurchase authorization.
• KATE (21.62 +9.94%): Reports Q4 EPS beat; in the process of reviewing strategic alternatives & will not be providing guidance at this time.
• SNPS (72.62 +9.6%): Reports Q1 EPS and revenue beats; guides Q2 & FY17 EPS and revenues above consensus.

Mid Cap Losers

• MOH (49.6 -17.18%): Shares down on Q4 EPS and revenue misses.
• AVP (4.97 -15.15%): Reports Q4 EPS and revenue misses.
• CAR (36.16 -11.07%): Reports Q4 EPS and revenue misses; guides FY17 revenues below consensus.

• Natural gas gave back all of yesterday's notable gains & slid to a fresh 3-month low on a smaller-than-anticipated draw in natural gas inventories
  • Mar 2017 natural gas futures were down about $0.06 (-2.2%) around the $2.86/MMBtu level following the release.
  • Ahead of the release, natural gas futures were down about $0.02 (-0.6%) around the $2.91/MMBtu level.
  • Reminder: Yesterday's initial morning rally was due in large part to news of a pipeline explosion in Texas
  • EIA highlights:
    • Natural gas inventory showed a draw of -114 bcf vs expectations for inventory to be a draw of approx. -124 bcf.
    • Working gas in storage was 2,445 Bcf as of Friday, Feb 10, 2017, according to EIA estimates.
    • Stocks were 303 Bcf less than last year at this time and 87 Bcf above the five-year average of 2,358 Bcf.
    • At 2,445 Bcf, total working gas is within the five-year historical range.
• In precious metals, gold extended yesterday's gains & rallied to a 1-week high on notable dollar index weakness
  • April 2017 gold futures were up about $8.90 (+0.7%) around the $1242.00/oz level
  • Mar 2017 silver futures were up about $0.11 (+0.6%) around the $18.09/oz level
• The dollar index slid -0.7% around the 100.51 level, boosted precious metals
  • Commodities, as measured by the Bloomberg Commodity Index, were -0.3% around the 88.78 level
• Crude oil dropped to its lowest level of the session after seeing an initial spike higher on headlines OPEC may extend or increase production cuts
  • Mar 2017 crude oil futures were down about $0.29 (-0.6%) around the $52.83/barrel level
  • Baker Hughes rig count data will be released tomorrow at 10:30 am ET

• Healthcare: CSLT (3.58 +13.49%), PGNX (10.23 +6.34%), BCRX (6.54 +6.09%)
• Materials: ABX (20.62 +6.73%), VEDL (15.55 +6%)
• Industrials: SRCL (84.13 +8.71%)
• Consumer Discretionary: LILAK (25.14 +15.16%), LILA (25.59 +14.78%), DENN (13.82 +12.36%), KATE (21.99 +11.77%), CHH (63 +8.9%)
• Information Technology: TIVO (21.45 +12.3%), NTES (293.77 +12.19%), EIGI (9.3 +10.06%), SNPS (72.25 +9.05%), QTWO (35.85 +8.97%), RUBI (8.91 +8.07%), SSNC (35.12 +7.04%)
• Energy: CVI (22.94 +6.55%)
• Consumer Staples: ANDE (40.85 +5.97%)

• Healthcare: CFMS (5.76 -32.63%), MOH (49.08 -18.05%), NOVN (5.81 -9.86%), ACHN (4.31 -8.49%)
• Industrials: CAR (35.17 -13.5%)
• Consumer Discretionary: GNC (7.42 -10.82%), LTRPA (15.95 -9.89%), TRIP (48.36 -8.24%)
• Information Technology: SYNT (19.24 -17.53%), HAWK (33.83 -9.44%)
• Financials: PHH (12.63 -15.29%), ONDK (4.79 -14.77%), OZM (2.93 -9.43%), COWN (14.85 -8.62%), OCN (5.41 -7.29%), NMIH (10.73 -7.14%), LC (5.85 -7%)
• Consumer Staples: AVP (4.8 -18.09%), DF (18.93 -7.43%)