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SEC fines Liquidnet $2M 3 yrs dark pool badness
What next, the Vatican?? Pocket lint fine.
SEC charges dark-pool operator Liquidnet $2 mln for violations
Today 10:51 AM ET (MarketWatch)Print
NEW YORK (MarketWatch) -- The Securities and Exchange Commission charged a New York-based dark pool operator on Friday for failing to conceal confidential trading information of its subscribers. The SEC found that Liquidnet Inc. violated its regulatory obligations and its own promises to its alternative trading system subscribers during a nearly three-year period. Liquidnet is accused of improperly allowing a business unit outside the dark pool operation to access the confidential trading data. Employees in that unit used the confidential information about Liquidnet's dark pool subscribers during marketing presentations and various communications to other customers, said the SEC. Liquidnet has agreed to settle the SEC's charges and pay a $2 million penalty, without admitting or denying the findings. "We will continue to aggressively police broker-dealers who operate an ATS and fail to rigorously ensure the protection of confidential trading information," said Andrew J. Ceresney, director of the SEC Enforcement Division.
-Sital S. Patel; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
June 06, 2014 10:51 ET (14:51 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
Hertz restate results 3yrs accounting errors
8:14am ET
Hertz Global Holdings Inc. said it would have to restate and correct results from the past three years, according to a regulatory filing Friday that indicated more widespread accounting problems at the auto-rental company than had been thought.
Hertz , citing the results of an internal audit, said its results for 2011, most recently included in its annual report filed for 2013, "should no longer be relied upon," and that the company must restate them.
The disclosure follows the company's detection of reporting errors in March and its naming of a new chief financial officer at the end of last year. Shares of Hertz fell more than 10% Friday as the company also warned that its delayed first-quarter results would come in below estimates.
The company said it must correct its 2012 and 2013 financial statements to further reflect the errors in 2011. The results for those years may also be restated if further adjustments are determined to be material. The company added that it is reviewing if the issues have had any impact on results in 2014.
"It will take time to complete this process, and previously reported information is likely to change, although the actual size of any adjustments has yet to be determined and some adjustments may offset others," the company said in its filing with the U.S. Securities and Exchange Commission .
Hertz said management and the board's audit committee have determined that "at least one material weakness" was present in the company's internal financial-reporting controls, and that disclosure procedures and controls were ineffective at the conclusion of last year.
The company said it is continuing a review that began when it was preparing its first-quarter report. The review " recently identified other errors related to allowances for uncollectable amounts with respect to renter obligations for damaged vehicles and restoration obligations at the end of facility leases," Hertz said.
Hertz said it "expects to receive an adverse opinion" on its internal controls over financial reporting as of Dec. 31 from its external accountant, PricewaterhouseCoopers LLP . A representative for PricewaterhouseCoopers wasn't immediately available for comment.
In March, the company identified $46.3 million in reporting errors that dated back to 2011. At the time, PricewaterhouseCoopers said in the filing that Hertz fairly presented its results and that the company "maintained, in all material respects, effective internal control over financial reporting."
Hertz last month delayed the filing of its first-quarter financial results after identifying errors relating to conclusions about the capitalization and timing of depreciation for some non-fleet assets as well as allowances for doubtful accounts in Brazil , among other items.
At the time, the company expected to release results June 9 but said Friday that it doesn't expect to hold its planned conference call on that date. The company said it would file and report its first-quarter results when it files the amendment to its annual report.
Hertz earlier this year sought more time to file its results for 2013, saying it faced "significant issues" after implementing a system meant to improve financial disclosures. The delayed report came as the company appointed a new chief financial officer, former Hilton Worldwide Inc. executive Thomas Kennedy , who was named to the post following the resignation of Elyse Douglas .
Hertz on Friday also warned that its attempt to resolve its accounting issues could delay the separation of its equipment-rental business, although the plans "remain on track."
In addition, the company said its results for the first quarter of this year are likely to come in below consensus estimates, as they will reflect costs associated with the accounting review. Analysts polled by Thomson Reuters had recently projected per-share earnings of nine cents and revenue of $2.57 billion for the quarter.
Write to Michael Calia at michael.calia@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
06-06-14 0814ET
Copyright (c) 2014 Dow Jones & Company, Inc.
Baltic Dry Index Up 1.2% to 989 em
Appeal judges overrule a SEC case
Notice how the ruling judges laid conditions off on 'the public'.
Translation: Citi Too Big to Fail.
”The appellate court instead outlined a checklist for judges to follow when weighing enforcement cases, saying they must “determine whether the proposed consent decree is fair and reasonable, with the additional requirement that the public interest would not be disserved.”
---------------
Overruled, Judge Still Left a Mark on S.E.C. Agenda
By BEN PROTESS and MATTHEW GOLDSTEIN
June 4, 2014 10:58 am NY Times
Updated, 8:36 p.m. | Jed S. Rakoff is a maverick jurist who picked a three-year fight to make the Securities and Exchange Commission tougher on a Wall Street bank.
While Judge Rakoff of Federal District Court in Manhattan lost that fight on Wednesday, he had already secured a victory of sorts, having set in motion a series of events that swayed public opinion and influenced the S.E.C.’s broader enforcement agenda.
A federal appeals court on Wednesday overturned Judge Rakoff’s decision in 2011 to reject an S.E.C. settlement deal with Citigroup, undercutting the judge’s concerns that the bank got off with little more than a slap on the wrist. In a long-awaited opinion, a three-judge panel of the United States Court of Appeals for the Second Circuit concluded that Judge Rakoff “abused” his discretion “by applying an incorrect legal standard” to the case. The court sent the case back to Judge Rakoff, who is expected to eventually approve the deal.
The panel’s decision, which hands a win not only to Wall Street, but also to its federal regulator, will most likely rein in Judge Rakoff’s criticisms of S.E.C. settlements. For the agency, which came under fire from Judge Rakoff and others for settling without demanding admissions of wrongdoing, it is a moment of validation.
“Trials are primarily about the truth,” the appellate panel wrote in its opinion. “Consent decrees are primarily about pragmatism.”
No judge likes a higher court rebuke. But Judge Rakoff’s effort was not in vain.
His standoff with the S.E.C. inspired other judges to question a handful of securities cases. And to critics of Wall Street, the judge became something of a celebrity, a representative of the effort to crack down on Wall Street misdeeds. Rolling Stone declared him “a sort of legal hero of our time.”
The S.E.C., under its chairwoman, Mary Jo White, has pursued a course change of its own after Judge Rakoff’s decisions. Last year, the agency reversed its longstanding yet unofficial policy of allowing companies to neither “admit nor deny wrongdoing,” signaling that it would force admissions in particularly egregious cases.
“The Second Circuit can’t put the genie back in the lamp,” said Jill E. Fisch, a professor at University of Pennsylvania Law School who specializes in corporate law. “This opinion is not going to turn back the clock.”
Judge Rakoff was not alone in his concerns about the Citigroup case. In 2012, a federal jury rejected the S.E.C.’s case against a midlevel Citigroup employee, prompting the jury foreman to question “Why didn’t they go after the higher-ups rather than a fall guy?”
Known for his quick wit and iconoclastic views, Judge Rakoff did not contain his criticism to the Citigroup case. He also rejected an earlier S.E.C. deal with Bank of America. And when he finally approved that deal — after the regulator agreed to raise the fine — he still called it “half-baked justice at best.”
Outside the courtroom, the judge has been a thorn in the side of prosecutors. He recently wrote an article in The New York Review of Books that questioned why prosecutors never charged a top Wall Street executive over the financial crisis.
Lawyers who practice before Judge Rakoff, speaking on the condition of anonymity, noted that he was nothing if not lively. When taking the S.E.C. to task for filing an insider trading case against Rajat Gupta, a former Goldman Sachs director, in its own administrative court, a move criticized as forum-shopping, Judge Rakoff opened his ruling by remarking that “a funny thing happened on the way to this forum.”
“He is a bit contrarian and that is a good thing,” said Carl Tobias, a professor at the University of Richmond School of Law. “I think he relishes that to some extent.”
The Citigroup case, which captured the attention of Wall Street and the white-collar bar, proved to be one of Judge Rakoff’s biggest moments in the spotlight. As the financial industry faces a growing number of criminal and civil investigation, banks looked to that case as a barometer for the broader crackdown.
Unlike most judges who rubber-stamp settlements, Judge Rakoff rejected what he saw as a sweetheart deal for Citigroup, which the S.E.C. accused of duping investors into buying a complex mortgage deal during the waning days of the housing boom. The bank agreed to pay $285 million to settle the civil fraud case.
The judge, a former federal prosecutor and defense lawyer, called the fine “pocket change” for the bank.
Echoing broader concerns about the government’s response to the financial crisis and its pursuit of financial crime, he also took aim at the S.E.C.’s decision to allow Citigroup to settle the case without admitting wrongdoing, saying the parties deprived the public “of ever knowing the truth in a matter of obvious public importance.”
But the three-judge panel — Rosemary S. Pooler, Raymond J. Lohier Jr. and Susan L. Carney — concluded that it “is not within the district court’s purview to demand ‘cold, hard, solid facts.’ ” The appellate court instead outlined a checklist for judges to follow when weighing enforcement cases, saying they must “determine whether the proposed consent decree is fair and reasonable, with the additional requirement that the public interest would not be disserved.”
The appellate ruling will have an immediate impact on another big case — the settlement of an insider trading lawsuit the S.E.C. filed against SAC Capital Advisors. Judge Victor Marrero, also a federal judge in Manhattan, raised concerns about the “neither admit nor deny” language contained in the settlement.
He approved the deal, but made his decision contingent on the outcome of the appeal in the Citigroup case.
The appellate court, while remanding the Citigroup case back to Judge Rakoff, did not require him to immediately approve the deal. The judge, the court ruled, may still pry loose additional disclosures from the S.E.C. and Citigroup.
“On remand, if the district court finds it necessary, it may ask the S.E.C. and Citigroup to provide additional information sufficient to allay any concerns the district court may have regarding improper collusion” between Citigroup and the S.E.C., the appellate court said in its ruling, written by Judge Pooler.
In a concurring opinion, Judge Lohier called Mr. Rakoff a “very able and distinguished” judge.
Judge Rakoff declined to comment on the ruling, as did Citigroup.
In a statement, the S.E.C.’s enforcement director, Andrew J. Ceresney, said he was “pleased with today’s ruling.” He added that “while the S.E.C. has and will continue to seek admissions in appropriate cases, settlements without admissions also enable regulatory agencies to serve the public interest.”
The prospect of wide-scale admissions initially alarmed Wall Street and the white-collar bar.
At oral arguments before the Second Circuit last year, Brad S. Karp, a lawyer for Citigroup and the chairman of Paul Weiss, seized on concerns about judges suddenly requiring admissions of wrongdoing. The admissions, in theory, could open the floodgates to shareholder lawsuits.
“The federal regulatory enforcement regime would screech to a grinding halt,” Mr. Karp said.
Judge Rakoff, who was appointed to the bench by President Clinton, is no stranger to bucking legal trends. In 2002, he ruled that the death penalty was unconstitutional. The judge — whose friends described him as a renaissance man, an Oxford graduate who spends his free time ballroom dancing — also questioned whether some of the government’s tactics in combating terrorism encroached on civil liberties.
And Judge Rakoff, a die-hard Yankees fan, surprised some New Yorkers when he declined to delay suspensions of four Knicks players during the 1997 N.B.A. playoffs.
“This court is sufficiently parochial,” he remarked at the time, “to wish that the Knicks be in every playoff in every round in every season.”
Michael Corkery contributed reporting.
Check out SEC White's proposals
Also Fed dove speaker making comments about economy.
-------------
Among other things these could be years away.
require high-frequency traders to register with regulators as broker dealers, pulling them further under regulatory scrutiny
SEC Chair White on sweeping trading initiatives
1:30 pm ET
By Scott Patterson
Securities and Exchange Commission Chairwoman Mary Jo White unveiled a sweeping set of initiatives Thursday to address mounting concerns about the impact of computer-driven trading on the stock market, including proposals that would extend oversight of high-frequency traders and dark pools.
White said the agency will launch a new committee to weigh proposed SEC initiatives and rule changes about how the stock market functions. The SEC will also review key market regulations and exchange practices such as the use of complex order types that can give certain investors an advantage, she said.
The proposed measures will help the market "operate openly, fairly and efficiently to benefit investors and promote capital formation," White said.
The new rules, if approved and implemented by the SEC , could force significant changes upon high-frequency traders, who now account for more than half of all stock-market volume, according to analysts.
Among the most significant proposals unveiled by White Thursday is a rule that would require high-frequency traders to register with regulators as broker dealers, pulling them further under regulatory scrutiny. High-frequency traders have largely avoided direct oversight since they are typically private outfits that trade on behalf of their owners.
White also directed SEC staff to develop a new anti-disruptive trading rule to prevent rapid-fire traders from engaging in short-term strategies that can aggravate market volatility.
The proposals will be developed by the SEC's staff in the coming months and will require a vote by the full commission, meaning it could be months--if not years--before they're fully implemented.
White's speech is her most direct response to rising concerns that the growth of high-speed trading and expansion of trading away from public exchanges have substantially changed how the market functions. Critics say the firms at times have access to advantages that give them a leg up over other investors.
Many of the proposals are likely to trigger pushback from some high-speed firms and other market players. Defenders of high-speed trading say the firms help regular investors since the traders stand ready to buy and sell under most market conditions.
FCEL up bit pre on -.04 earnings CC
FuelCell Energy (NASDAQ: FCEL) shares declined on Wednesday after the release of its earnings for the second quarter in 2014.
Despite posting a loss-per-share of $0.04 , management spoke optimistically about the company's performance in the company conference call Wednesday morning, highlighting FuelCell's changing business model, current operations and future operations.
Changing Business Model
CEO Arthur Bottone spoke proudly of FuelCell Enery's new business model to cut down time on projects.
Bottone made note on cutting the due diligence time; FuelCell Energy is in position to increase project completion speed.
Through partnerships with investors or owners of different sites, FuelCell Energy plans to operate fuel cell plants while leaving management of the site to the owner, thus increasing the presence of the firm.
Current Operations
Management spoke about current partnerships with Costco and universities to provide FuelCell Energy goods and services.
The total backlog, in megawatts, was down for FuelCell Energy, but the total dollar value of backlog was up.
Management spoke of having enough liquidity and inventory to cover short-term debts.
The company reported that the smallest project FuelCell Energy does today is $5-6 million .
Future Operations
Through its partnership with Costco, FuelCell is opening a 59 megawatt plant in South Korea .
FuelCell is constructing a university project with a ticket price of $7-8 million and expects commercial operations in the fall.
The company is seeking to convert more operations to a turnkey business model, as it is advantageous to both investors and owners.
Shares of FuelCell Energy closed Wednesday at $2.19 ; the stock is up 0.91 percent in Thursday's pre-market.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
WSJ: 12 highlights from Beige Book
2:37 pm ET Jun 4, 2014
Business Cycles
We Read It So You Don’t Have To: 12 Beige Book Gems
The Federal Reserve’s “beige book” report, out Wednesday, provides a snapshot of economic activity across the nation in recent weeks. Based on anecdotes gathered from the central bank’s 12 districts from early April through late May, the Fed concluded that a pick-up in auto sales, tourism and manufacturing were supporting economic growth. Reports collected from regional business contacts also found that some industries have continued to suffer weather-related disruptions, while others said they were having trouble finding qualified workers.
Here are edited excerpts:
1.Mall Drats: One New York retailer said a surge in sales since mid-April corroborates that weather had been a major restraining factor. However, contacts at major malls in upstate New York report that sales were steady to down slightly in April and early May, as cold and rainy spring weather has continued to restrain shopper traffic.
2.Boston Strong: In April, Boston-area hotel occupancy rates were above 90%, which is unusually high, and observers say they expect hotel revenues to exceed those posted for April 2013. Some of the increase was due to business related to the 2014 Marathon, which had almost 36,000 entrants compared to about 17,600 in 2013, which was struck by twin bombings.
3.Revving Up: A Philadelphia-area auto dealer said sales surged with “phenomenal” growth in April after a strong month in March. Auto dealers remain bullish for the rest of 2014.
4.Hot in Construction: Cleveland construction companies said that they are hiring all types of workers–skilled trades, professionals, and back office, but that skilled trade workers are very difficult to find forcing wages higher.
5.Guzzling Almonds: Many Boston-area companies said new products are driving growth. For example, a dairy-products manufacturer forecast that almond milk will generate “significant” growth.
6.Eating Well: San Francisco restaurateurs said that meat and seafood prices have increased significantly. Drought conditions in California and Arizona have led to reduced herd sizes and decreased plantings of annual crops, driving up prices for cattle and vegetables like tomatoes and rice.
7.Shipping Out: Richmond port traffic grew briskly, in part because shipments are being re-routed there from the West Coast because of expected interruptions from union contract negotiations there. Imports and exports of autos remained strong at the Port of Baltimore, and container shipments bounced back after a weaker first quarter.
8.Train Delays: Chicago manufacturers reported lingering shipment delays of goods and raw materials from the harsh winter weather earlier in the year. A steel industry contact noted that the resulting supply-chain disruptions contributed to the increase in steel prices.
9.Capital Gains: In Washington, D.C., the number of tourists had increased in recent weeks, and the re-opening of the Washington Monument in mid-May was well-attended.
10.Bidding Battles: Real-estate agents in upstate New York said a lack of inventory is restraining home sales and that bidding wars are “fairly common” for prime properties. Home builders in the area said they are feeling more confident about the housing recovery but are still “reluctant” to aggressively ramp up new building projects.
11.Texas is Different: In the Dallas area, employment levels held steady or increased at nearly all responding firms and some contacts noted continued difficulty in finding skilled workers. Food, cement, lumber, primary metals, fabricated metals and transportation equipment manufacturers noted continued hiring.
12.Weakness Overseas: Some Boston-area manufacturers expressed concern about their foreign sales. A firm that sells building equipment said “Europe is still a mess.” Two other manufacturers said sales to China had slowed.
FIVE moves ah on better Q1 info
05:39 PM EDT, 06/04/2014 (MT Newswires) -- Five Below (FIVE) advanced in Wednesday's night trade on the back of better-than-expected Q1 estimates and in-line guidance.
FIVE dropped to a brief, early after-hours low of 35.24 before recovering and surging to a high of 38.48. It held mostly between 37 and 38 deeper into the evening. A pre-market open Thursday may have potential near 37.20 to 37.80. Buyers looked most confident at levels in the 36.50 to 37 range, a possible near-term floor support for longs to watch.
Price: 37.60, Change: +1.07, Percent Change: +2.93
http://www.mtnewswires.com © 2014 MT Newswires, a Division of MidnightTrader, Inc. All rights reserved.
Australia Q1 grew 3.5% > expected
Australia's economy grew 3.5 percent in the first quarter on
-year, above market expectations, data on Wednesday showed. http://www.cnbc.com/id/101728799
Major banks largest black pool traders, Finra.
06-02-14 1738ET
Major banks had the largest amounts of trades and shares in alternative trading systems, according to a first-time data release of weekly data required under new disclosure requirements from the Financial Industry Regulatory Authority .
Finra said UBSA UBS Securities LLC had the most total trades, at about 2.3 million. MLIX Merrill Lynch, Pierce, Fenner & Smith Inc. and CROS Credit Suisse Securities (USA) LLC followed with nearly 2.2 million total trades each. LATS Barclays Capital Inc. had about 1.7 million total trades.
Under a new rule intended to make these trading venues less opaque, banks operating the lightly regulated dark pools are now required to report market data on a weekly basis to Finra, Wall Street's industry financed regulator. Finra in turn publishes some of the data to its website.
Information that must be reported under the rule includes total shares traded and total trading volume on each of the roughly 40 dark pools, also referred to alternative trading systems.
Finra said CROS Credit Suisse Securities ( USA ) was highest in total number of shares traded with 373.6 million. Next were LATS Barclays Capital Inc. with 305.5 million and UBSA UBS Securities LLC with 278.2 million.
Bank of America's MLIX Merrill Lynch, Pierce, Fenner & Smith had a total share count of 213.9 million.
The bank earlier reported a total that was twice as high, with a spokesman for the bank saying it had submitted incorrect trading data to regulators during the initial round of dark-pool data collection.
In January, the Securities and Exchange Commission approved the new Finra rule requiring each alternative trading system, or ATS, to report weekly trading data.
The ATS reporting requirement was implemented beginning May 12, 2014 .
The first ATS reports, for the week of May 12 through May 16 , were due by May 28 .
The data are aggregated on a weekly basis, the agency said on its website.
Write to Bradley Hope at bradley.hope@wsj.com and Michael Calia at michael.calia@wsj.com
(END) Dow Jones Newswires
06-02-14 1738ET
Copyright (c) 2014 Dow Jones & Company, Inc.
ah RTRX, VEEV ++. 4 w/ neg guidance.
Retrophin Ups Revenue Guidance
Thursday, May 29, 2014 4:41:37 PM ET
________________________________________
Retrophin, Inc. (RTRX) said it now expects 2014 revenue of $20.0 million to $22.0 million and 2015 revenue of $60.0 million to $70.0 million. The company's previous guidance was 2014 revenue of $20.0 million to $22.0 million and 2015 revenue of $36.0 million to $41.0 million. The current consensus estimate is revenue of $20.0 million for the year ending December 31, 2014 and revenue of $36.0 million for the year ending December 31, 2015.
Veeva Systems Raises Guidance
Thursday, May 29, 2014 4:02:37 PM ET
________________________________________
Veeva Systems Inc. (VEEV) said it expects second quarter non-GAAP earnings of approximately $0.07 per share on revenue of $68.5 million to $69.5 million. The current consensus earnings estimate is $0.06 per share on revenue of $66.4 million for the quarter ending July 31, 2014. The company also said it expects fiscal year earnings of $0.26 to $0.28 per share on revenue of $277.0 million to $282.0 million. The company's previous guidance was earnings of $0.23 to $0.25 per share on revenue of $270.0 million to $275.0 million and the current consensus earnings estimate is $0.24 per share on revenue of $275.5 million for the year ending January 31, 2015.
Annie's Guides Earnings Below Estimates
Thursday, May 29, 2014 4:30:00 PM ET
________________________________________
Annie's, Inc. (BNNY) said it expects fiscal 2015 earnings of $0.88 to $0.95 per share on revenue of $240.8 million to $244.9 million. The current consensus earnings estimate is $1.14 per share on revenue of $242.1 million for the year ending March 31, 2015.
Infoblox Guides Below Estimates
Thursday, May 29, 2014 4:05:47 PM ET
________________________________________
Infoblox (BLOX) said it expects fourth quarter non-GAAP results to range from breakeven to earnings of $0.02 per share on revenue of $60.0 million to $61.0 million. The current consensus estimate is for earnings of $0.06 per share on revenue of $66.6 million for the quarter ending July 31, 2014.
Express Lowers Guidance.
Thursday, May 29, 2014 4:01:00 PM ET
________________________________________
Express, Inc. (EXPR) said it expects second quarter results to range from a loss of $0.03 per share to earnings of $0.03 per share and now expects fiscal 2015 earnings of $0.74 to $0.90 per share. The company's previous guidance was for fiscal year earnings of $1.03 to $1.23 per share. The current consensus earnings estimate is $0.12 per share for the quarter ending July 31, 2014 and $1.14 per share for the year ending January 31, 2015.
PacSun Guides Below Estimates
Thursday, May 29, 2014 4:00:40 PM ET
________________________________________
Pacific Sunwear of California (PSUN) said it expects a second quarter loss of $0.08 to $0.02 per share on revenue of $200.0 million to $210.0 million. The current consensus earnings estimate is $0.02 per share on revenue of $216.6 million for the quarter ending July 31, 2014.
Japan #s out. mixed, yen unchg
April houshold spend -4.6% vs. year-ago. Unemploy stays 3.6%.
JAPAN MAY CPI, OVERALL TOKYO INCREASE TO +3.1 % VS PREV 2.9 %
4 at 16:30 et EPS. OVTI uppish. C 20.14 -.24 now @24.00
LGF poor, revs were -8.1%.
16:30 News Bot: Express (EXPR) Q1 EPS USD 0.06 vs. Exp. USD 0.14
16:30 News Bot: Avago (AVGO) Q2 Adj. EPS USD 0.85 vs Exp. USD 0.77
16:30 News Bot: Lionsgate (LGF) Q4 Adj. USD 0.42 vs Exp. USD 0.43
16:30 News Bot: OmniVision (OVTI) Q4 Adj. EPS USD 0.40 vs Exp. USD 0.26
DCTH more or played out?
Bear flag run? 2.90 +.11 several days up but bear flag pattern.
41k at 10am. Trades small, 100k or 1M days.
Geez Baltic Dry Index again. -1.5% to 940 pts
08:11 News Bot: Baltic Dry Index falls 1.5% to 940 points
TLYS, GMAN neg guidance < consensus
Tilly's Guides Below Estimates
Wednesday, May 28, 2014 4:01:37 PM ET
________________________________________
Tilly's, Inc. (TLYS) said it expects second quarter earnings of $0.03 to $0.07 per share. The current consensus earnings estimate is $0.13 per share for the quarter ending July 31, 2014.
Gordmans Guides to a Bigger-than-expected Loss
Wednesday, May 28, 2014 4:01:04 PM ET
________________________________________
Gordmans Stores, Inc. (GMAN) said it expects a second quarter loss of $0.16 to $0.13 per share on revenue of $143.0 million to $146.0 million. The current consensus estimate is a loss of $0.01 per share on revenue of $144.0 million for the quarter ending July 31, 2014.
Baltic Dry Index -2% to 954 pts & Gazprom
Noticed DCIX shipper took a dip yesterday. $2.72 now.
08:45 News Bot: Baltic Dry Index falls 2.0% to 954 points
CEO OF RUSSIA'S GAZPROM SAYS UKRAINE WILL OWE $5.2 BILLION FOR GAS AS OF JUNE 7
Baltic Dry Index -2% to 954 pts & Gazprom
08:45 News Bot: Baltic Dry Index falls 2.0% to 954 points
CEO OF RUSSIA'S GAZPROM SAYS UKRAINE WILL OWE $5.2 BILLION FOR GAS AS OF JUNE 7
LAS uppish 1.90 +.11 ARO more flop
ARO just got thumped all day in media.
LIVE monster reversal, price & vol.
Have a fun weekend, much needed.
OXGN down on floating more paper
2.72 -.26 10:12 am ET
09:22 AM EDT, 05/23/2014 (MT Newswires) -- OXiGENE (OXGN), a biopharmaceutical company developing novel cancer therapeutics, is lower in pre-market trading after it said Friday that it has entered into definitive agreements with institutional investors to purchase an aggregate of $16 million of registered shares of OXiGENE common stock in an at-the-market direct offering at $ 2.9625 per share.
Shares are down 5% at $2.83, with a 52-week range of $1.96 - $5.40.
For each share of common stock purchased, investors will receive one-half of an unregistered warrant to purchase a share of common stock at an exercise price of $2.90 per share, which are exercisable immediately and expire five years and three months from the date of issuance.
With this $16 million financing, OXGN significantly increases its cash position, which was $24.7 million as of March 31, 2014. The company intends to use the proceeds from the offering to continue advancing its current development programs and research activities.
Price: 2.83, Change: -0.15, Percent Change: -5.03
http://www.mtnewswires.com © 2014 MT Newswires, a Division of MidnightTrader, Inc. All rights reserved.
INVE Identiv R/S 1:10 at open 5/27 Name Chg
Identiv Announces Reverse Split of Common Stock and Name Change
May 22, 2014 16:30 | Source: Identive Group, Inc.
FREMONT, Calif., May 22, 2014 (GLOBE NEWSWIRE) -- Identiv (Nasdaq:INVE), a global security technology company that provides trust solutions for premises, information and everyday items, announced today that a 1-for-10 reverse split of its common stock will be effective at the open of business on Tuesday, May 27, 2014. The reverse stock split was approved by the company's shareholders at the 2014 Annual General Meeting (AGM) held today. The company's board of directors approved the implementation of a reverse stock split and determined the appropriate reverse stock split ratio to be 1-for-10. Also approved by the company's shareholders was the legal name change of the company from "Identive Group, Inc." to "Identiv, Inc."
"The reverse split establishes a path to maintain our NASDAQ listing," said Jason Hart, chief executive officer of Identiv. "We saw a record voting turnout for our 2014 Annual General Meeting, demonstrating strong support from our shareholders. Approval of our new, shortened name, 'Identiv', signals a new era, as we have successfully transformed into a single, unified technology company focused on trust solutions for high-growth markets," added Hart.
At the effective time of the reverse stock split, every 10 shares of Identiv's issued and outstanding common stock will be converted into one newly issued and outstanding share of common stock, without any change in the par value per share.
The reverse stock split will reduce the number of shares of Identiv's outstanding common stock from 79.91 million to approximately 7.99 million. Proportional adjustments will be made to Identiv's outstanding stock options, outstanding warrants, and equity-compensation plans. The number of authorized shares of the company's common stock will remain unchanged. Once the reverse stock split becomes effective, shareholders holding shares through a brokerage account will have their shares automatically adjusted to the reflect the 1:10 reverse stock split. Existing shareholders holding common stock certificates will receive a letter of transmittal from the company's transfer agent, American Stock Transfer & Trust Company, LLC, with specific instructions regarding the exchange of shares. No fractional shares will be issued in connection with the reverse stock split. Shareholders who would otherwise hold a fractional share of Identiv common stock will receive a cash payment in lieu of such fractional share.
The company's common stock will continue to trade on the NASDAQ Capital Market under the symbol "INVE". A new CUSIP number will be issued to Identiv's common stock after the reverse stock split becomes effective.
For additional information, please refer to the FAQs in the "Investor Relations" section of identiv.com.
About Identiv
Identiv is a global security technology company that establishes trust in the connected world, including premises, information and everyday items. CIOs, CSOs and product departments rely upon Identiv's trust solutions to reduce risk, achieve compliance and protect brand identity. Identiv's trust solutions are implemented using standards-driven products and technology, such as digital certificates, mobility and cloud services. For more information, visit identiv.com.
- See more at: http://globenewswire.com/news-release/2014/05/22/638860/10083001/en/Identiv-Announces-Reverse-Split-of-Common-Stock-and-Name-Change.html?ev=1#sthash.6Llv5Kew.dpuf
LAS yes bit stretched. ARO??
LAS getting quite stretched to point of bounce.
had shareholder letter 8:46am ET Looks up tonight AH 1.82/185 from close 1.79 -.11
Watching the always dangerous retail bummers. ARO awful #s. WSTL down, JOEZ again. Who knows. Scalping /es to stay afloat. Dry bulk shippers in crapper too.
BEIJING , May 22, 2014 /PRNewswire/ --
Dear Shareholders,
China , as a nation, is only beginning its love affair with the road. In 2013, we saw double-digit growth in car sales, rising 14% to 22 million vehicles, according to the China Association of Automobile Manufacturers , after two years of relatively weak, single-digit growth in the world's largest auto market.
This is part of a process, as car ownership spreads from the sophisticated urban base of China's capital, Beijing , and its coastal cities, to the fast-growing second and third-tier cities of China's interior. We expect 2014 to be another strong year. A range of factors is boosting demand – rapid urbanization, economic stimulus measures, and falling car prices. The last phenomenon is an effect of higher levels of local content in cars produced by joint manufacturing ventures under international brands, making car ownership more affordable for China's aspirational middle-class consumers. Based on estimates by the consulting firm McKinsey & Company , by 2022 China's middle class will increase by 100 million people to 357 million, and 54% of Chinese households will have disposable annual income of between RMB 106,000 and RMB 229,000 ( US$17,191 to US$37,141 ).
A good year, and new directions for Lentuo
This is all good news for Lentuo International , as one of China's largest non-state owned auto retailers. For the full year we had net income of RMB 23.8 million ( US$3.9 million ) on revenues of RMB 3.3 billion ( US$540.6 million ). A compelling measure of our success is that we saw increases in gross margin in both auto sales and repair and maintenance services, at 4.9% and 42.4% respectively, even though overall revenues were flat.
To provide more color to our revenue profile, car sales actually increased by 3.9% to 17,561 vehicles in 2013. In previous years, this might have translated into higher revenues with no change in gross margins. In 2013, we saw three parallel developments. As manufacturers responded to competition, they reduced prices by introducing new models with higher margins and lower prices. At the same time, an increasing number of car models previously imported are now manufactured domestically, with lower costs of production translating into lower retail prices. A third piece of the story is that Lentuo introduced discounts on older models in order to clear inventory and stimulate sales on behalf of the auto manufacturers; for which the Company was compensated for.
Our principal market remains Beijing , where nine of our 12 dealerships are located. Beijing is China's largest urban auto market, with about 5.4 million vehicles, or 245 cars per thousand people, roughly 35% the level of the United States . This means that while there is room for additional growth at the high end of the market, car owners from the initial boom in car sales four to five years ago are beginning to look for replacement vehicles as well as the means to realize value through the sale of their existing vehicles. There are plenty of cars available for recycling in China , with a total stock of 137 million as of the end of 2013.
We intend to explore this emerging market for pre-owned vehicles from its epicenter. Beijing , always the trendsetter in China's domestic auto market, over the past few years has emerged as the leader in the pre-owned car business. As early as August 2012 , pre-owned car sales in Beijing exceeded the sales of new vehicles by about 5,000 vehicles per month, according to Automotive News China, the respected industry journal. In 2013, the national market for used passenger sedans rose by 12% to 3 million, while used Sports Utility Vehicle (SUV) sales increased by 50% to 175,000, based on numbers from the China Automobile Dealers Association . The actual number of pre-owned car sales may be much higher, but the ratio of pre-owned car sales to new car sales, with 16 used cars to every 100 new cars sold, is nowhere near the level of the US, where 270 used cars are sold to every 100 new ones.
We believe the emerging pre-owned car market represents a huge opportunity for us, for a number of reasons. First, the Lentuo brand is already associated with the kind of high-end, concierge-like service that customers of high-end brand cars, whether new or pre-owned, have come to want and expect. Second, the existing pre-owned car business offers close to zero protection for consumers, suffers from a lack of transparency and consists mainly of informal markets and deals between family members and friends. We can help the market take a big step up, by providing our trademark immaculate vehicle testing prior to sale and our own certification system for any car that is sold within our network. Third, because we can offer strong assurances of safety, mechanical integrity, and reliability in our pre-owned car business, we are able to bring flexibility to customers in financing their purchases that they may not find elsewhere. Finally, Lentuo is working with its partners to bring a new level of customizable online search capability to pre-owned car customers in an innovative "Online to Offline" (O2O) business associated with its first center for pre-owned cars in Beijing in 2014.
From our perspective, beyond the issue of rising demand for pre-owned cars, and our own unique advantages in the market, there are pull factors that affect all market entrants. These are no secret, and while we have first mover advantage in some respects at the mid and high ends of the market, the market is already crowded at the low end because of these pull factors, or highly attractive characteristics of the market.
On an average unit basis, gross margins in the pre-owned car business range between 10% and 15%. This is much higher than gross margins for new cars, among other things because we share the margins with manufacturers. At the same time, the pre-owned car business generates revenues and profits from ancillary businesses, such as finance, insurance, and warranties. Here too, margins tend to be higher than in the new car market because of the higher risks assumed by the providers in the second-hand market. Because of our vertically integrated business model, these margins will accrue to Lentuo and our partners, rather than third-party service providers.
But, there are push factors in the pre-owned car business that have to be mentioned as well. Currently in eight cities across China , local governments are introducing licensing quotas for new cars, in order to ease congestion as well as air pollution in China's largest cities. The first city to introduce such restrictions was Beijing , which introduced a lottery for new auto licenses in 2011, with an annual quota of 240,000, about one-third the level of car sales the previous year. At the beginning of 2014, Beijing reduced the quota to 150,000. By 2017, the municipal government has said it will offer only 90,000 license plates annually to ordinary cars, while the rest will go to cars using clean fuel or electricity. These restrictions have greatly increased incentives for purchases of pre-owned cars, which do not have to give up their licenses at the time of sale. At Lentuo , we look at this as a healthy development that should over time bring cleaner skies to China's capital as well as better controls and reliability to the secondary market for auto sales.
2013 in review
Before going into more detail on our strategy going forward, it is opportune to mention some of our achievements in the past year.
In May 2013 , we received approval from the Beijing Municipal Commission of Commerce for our joint venture with Itochu Corp. , the trading company that owns 25.7% of Yanase &Co., the auto dealership network that opened the Japanese auto market to western brands. Itochu's RMB 300 million investment in the joint venture gives it 40% equity in the new Beijing Lentuo Autong Automobile Trading Co. , which will help us to expand the sales and service network in the high-end car segment in China . Itochu's investment will also help us complete our new Audi 4S dealership in Beijing , whose construction began in November 2012 .
Also in May, we opened our twelfth dealership. This is the new FAW-Volkswagen dealership, in the Wangsiying township near Beijing's East Fourth Ring Road , next to a high-volume shopping mall and entertainment center as well as a luxury residential district. We expect this new flagship dealer to increase visibility not only for our premium car business but also our emerging pre-owned car business, which will follow the business model and high standards of our existing auto retail operations. It includes a full suite of auto sales, maintenance and repair, after-service, finance, insurance, leasing, and pre-owned car sales, with a 7,000 sq.m. showroom that is able to showcase 22 cars. Service operations at this facility were a significant factor in our return to profitability in 2013, with revenues from automobile repair and maintenance services rising by 8.2% during the year to RMB 351.5 million ( US$58.1 million ), or 10.7% of revenues. The new flagship store is a critical first step in our network expansion, and further deepens our long-term relationship with FAW Group and its subsidiary First Automobile Finance.
As part of our strategy to expand our presence outside Beijing , in June we signed a letter of intent with Hailin City in Heilongjiang Province to develop an auto mall for 4S dealers with a footprint of 266,000 sq m. This will give us a stronghold in northeastern China , in one of three national level development zones in the province. We are in the process of acquiring land rights and seeking strategic investors for this project.
A glimpse of the future
Over the coming year, we expect to devote significant management resources and attention to development of the pre-owned car business. We believe this push is both timely and complements our existing strategy. The pre-owned car market in China reminds us of the free markets that sprang up in the early era of China's market opening. There are no entry barriers, no standard certification, and no guarantees for buyers. If customers want to test the vehicles, they have to drive them elsewhere and pay for mechanics to look them over.
We think the market will respond positively to the paradigm shift that Lentuo offers. People are used to thinking of the pre-owned car market as second class. We will be giving it first-class treatment. Not only will we provide complete testing for our pre-owned cars, we will give them our certificates of guarantee and sell them only if they meet the highest standard of vehicle quality and integrity. In terms of marketing, pre-owned cars will also get premium treatment.
One of the important cornerstones of this new business will be trade-ins. In Europe and North America , vehicle recycling promotes the new car business as much as providing supply for the second-hand market. Buyers of new cars essentially view the trade-in value as part of a discount on a new model. Lack of certification and standards have been major obstacles to this aspect of the secondary auto market in China . We will be removing these obstacles by putting our own name and reputation on the line with each pre-owned car that we sell.
As one example of premium treatment we will provide in this business, we will introduce O2O technology for second hand cars. Online virtual showrooms will be linked to our physical dealership, so that customers can view the profile of our pre-owned vehicles as easily as they can view online profiles and shop our virtual showroom for new cars.
We expect the O2O business will have a first-mover advantage, since O2O channels are relatively new to China and buyers still need to test-drive vehicles from a physical dealership. Web-based auto forums exist that serve as matchmakers for buyers and sellers, but they are essentially online versions of the existing informal markets for second-hand cars.
Our pre-owned car retail strategy will unfold quickly. We plan to convert an existing new car showroom in South Beijing , inside the Beijing Economic and Technological Development Area. This will serve as a flagship store for mid-to-high end cars from Lentuo and a number of high-quality, third-party dealers. We have signed an agreement to finance this new showroom with China Orient Tiantong Capital Management Ltd. , a subsidiary of state-owned financial manager China Orient Asset Management. The expectation is that China Orient will provide the financial depth for this new aspect of our business, as well as support its expansion across China , giving priority to the 26 cities where China Orient maintains branch offices. It will make it possible as well to offer adequate financing to pre-owned car buyers, by leveraging China Orient's institutional reach and financial depth.
In April, we launched our new Lentuo Pre-Owned Car Quality Certification Program. Under the program, all of our mid- to high-end pre-owned cars will receive a complete technical inspection and analysis to ensure that there is no frame or internal damage, are in working order, and meet or exceed standards for a given make or model. Cars will have to pass this inspection before they are offered for sale.
At the same time, we have signed an agreement with one of China's largest online auto information providers to create a fully integrated O2O platform for our pre-owned car business, which will serve as a sales platform for our "Lentuo Certified Quality" pre-owned cars. We announced this new marketing arrangement in March 2014 , under which Lentuo will also serve as the exclusive after-sales service provider for the online platform.
With all these new elements in the mix, we are very confident about the future – from the expansion of domestic demand for autos to new urban markets in the interior, to the emergence of a brand-new paradigm – the Lentuo paradigm – in the pre-owned car industry. With our financial partnerships with China Orient and Itochu , we are in a strong position to carry out the two wings of our strategy – national expansion of our existing premium car auto retail business, as well as creating a new business in pre-owned car sales. It's a very exciting time to be a manager or employee at Lentuo , and we hope that it will be equally rewarding for you as our shareholders. We thank you for your loyalty, and welcome you to join us on the road to come.
Hetong Guo
Founder and Chairman, Lentuo International
SOURCE Lentuo International Inc.
FREE $25M offering to cut CS debts
Ok it's not billions & billions but after back/back R/S 25M shares is a bunch. Effectively a doubling 27M to 50+M. Guess beats a 4th R/S.
AH 16:18 ET
ATHENS, Greece, May 22, 2014 (GLOBE NEWSWIRE) -- FreeSeas Inc. (Nasdaq:FREE) (" FreeSeas' ' or the "Company''), a transporter of dry-bulk cargoes through the ownership and operation of a fleet of five Handysize vessels and one Handymax vessels, announced today that it entered into a placement agent agreement with Dawson James Securities, Inc. on May 21, 2014 , to sell up to $25 million of Series D Convertible Preferred Stock and Series C Warrants. The offering is expected to close on May 28, 2014 . The securities will be sold in 250,000 units, at a purchase price of $100 per unit, with each unit consisting of one share of our Series D Convertible Preferred Stock and Series C Warrants to purchase 200% of the shares of common stock underlying the Series D Preferred Stock, at an exercise price of 130% of the Series D Preferred Stock conversion price on the initial issuance date of the Series D Preferred Stock, rounded to the nearest whole cent.
Each share of Series D Preferred Stock will have a stated value of $100 and will be convertible into a number of shares of common stock equal to $100 divided by the conversion price in effect at the time of conversion. The initial conversion price of each share of Series D Preferred Stock will be the lesser of (i) $1.09 (the closing bid price of our common stock on May 16, 2014 ) and (ii) the greater of (1) the closing bid price of our common stock on the date immediately prior to the closing of this offering (which is expected to be May 28, 2014 ) and (2) $0.981 .
Following the closing of the offering, presuming the maximum offering is completed, FreeSeas will pay approximately $22 million of the offering proceeds to Credit Suisse to eliminate all of its debt obligations owed to Credit Suisse , which are approximately $37 million . Upon Credit Suisse's receipt of such $22 million , Credit Suisse will also cancel all the remaining debt owed by FreeSeas and its subsidiaries, which is approximately $15 million . Following such payment and cancellation, FreeSeas will no longer owe any amounts to Credit Suisse , Credit Suisse will release any and all liens it has on the assets of the Company and its subsidiaries and Credit Suisse will release all corporate guarantees received from the Company's subsidiaries.
Any remaining offering proceeds will be used for general corporate purposes.
Dawson James Securities, Inc. is acting as the exclusive placement agent on a best efforts basis in connection with this offering.
A registration statement on Form F-1 relating to this offering has been filed with the Securities and Exchange Commission and is effective. A preliminary prospectus relating to the offering has been filed with the SEC and is available on the SEC's website at www.sec.gov. Copies of the final prospectus relating to the offering, when available, may be obtained from Dawson James Securities, Inc. , 1 North Federal Highway , Boca Raton, Florida 33432, (561) 391-5555, or from the above-mentioned SEC website.
The foregoing summaries of the offering, the securities to be issued in connection therewith and the full terms and conditions of the Series D Preferred Stock and the Series C Warrant (including, without limitation, the exchange feature and the mandatory exercise feature contained therein) do not purport to be complete and are qualified in their entirety by reference to the definitive documents attached as exhibits to such Form F-1.
Compuware CPWR mixed, down AH
16:23 News Bot: Compuware (CPWR) Q4 Non-GAAP EPS USD 0.09 vs. Exp. USD 0.08
04:23 PM EDT, 05/22/2014 (MT Newswires) -- Compuware Corp. (CPWR) is trading lower after-hours as the company reports a strong Q4 EPS performance but guides fiscal 2015 sales below the consensus of analysts polled by Capital IQ.
Q4 non-GAAP EPS increased 25% year-over-year to $0.10, above the analyst consensus of $0.08. Revenues decreased 0.5% to $183 million, and were below analyst estimates of $211 million.
For fiscal 2015, CPWR sees EPS of $0.41-$0.45 on revenues of $720 million-$735 million, mixed against analyst consensus of EPS of $0.42 on revenues of $762 million.
Shares of CPWR are down 0.5% at $10.34 after-hours.
Price: 10.34, Change: -0.05, Percent Change: -0.5
http://www.mtnewswires.com © 2014 MT Newswires, a Division of MidnightTrader, Inc. All rights reserved.
SCVL halted, to be lifted soon. FREE offer $25M
SCVL looks for Q2 EPS of $0.12-0.16 vs $0.27 analyst estimate. Sees sales of $223.0M-228.0M vs $233.0M estimate. ugh
FREE at close $25M offering prefs & warrs.
SCVL halted, to be lifted soon
Shoe Carnival at close.
SCVL looks for Q2 EPS of $0.12-0.16 vs $0.27 analyst estimate. Sees sales of $223.0M-228.0M vs $233.0M estimate. ugh
INTU guides Q4 earnings lower AC
Intuit Guides Below Earnings Estimates
Tuesday, May 20, 2014 4:00:36 PM ET
________________________________________
Intuit Inc. (INTU) said it expects fourth quarter non-GAAP earnings of $0.06 to $0.08 per share on revenue of $683.0 million to $713.0 million. The current consensus earnings estimate is $0.11 per share on revenue of $712.3 million for the quarter ending July 31, 2014.
Plosser comments on Fed & jobs
1:13 PM EDT, 05/20/2014 (MT Newswires) -- Philly Fed President Charles Plosser said on Tuesday he believes the most encouraging sign of a rebound in the economy comes from the labor market and "expects that the unemployment rate will fall below 6.2% by the end of 2014 [and this] forecast may prove to be too pessimistic. Given the recent trends, an unemployment rate below 6% is certainly plausible."
Plosser was speaking to the Women in Housing & Finance group in Washington.
Regarding the impact this winter has had on the economy, Plosser believes the "stiff winter weather with snowstorms and frigid temps affected every asepct of the economy" but that the economy is on "firmer footing" providing "cause for optimism."
And despite statements to the contrary from Fed Chair Yellen, Plosser believes "the fundamentals of the housing market remain sound, including stronger household formation, solid job growth, and consumers with stronger balance sheets."
The impact from the housing market and labor market growth could leave the Fed behind the curve in regard to interest rate policy. "If the economy continues to improve, though, we could find ourselves still trying to increase accommodation in an environment in which history suggests that policy should perhaps be moving in the opposite direction.
"My own view is that, as we continue to move closer to our 2% inflation goal and the labor market improves, we must be prepared to adjust policy appropriately. That may well require us to begin raising interest rates sooner rather than later."
Plosser is a voting member of the FOMC and one of the more hawkish members of the board.
http://www.mtnewswires.com © 2014 MT Newswires, a Division of MidnightTrader, Inc. All rights reserved.
ECB may go neg deposit rate in June?
By Saumya Vaishampayan , MarketWatch
NEW YORK (MarketWatch) -- The U.S. dollar gained against the Australian currency on Tuesday while moving lower against the British pound, though overall foreign-exchange movements remained limited.
No major U.S. economic data are scheduled for release. Philadelphia Fed President Charles Plosser and New York Fed President William Dudley are expected to speak Tuesday.
The Australian dollar (AUDUSD) fell to 92.61 U.S. cents from 93.27 U.S cents late Monday. That's the lowest level since April 28 , according to FactSet.
The Reserve Bank of Australia's minutes from its latest monetary policy meeting, where it decided to leave interest rates on hold, showed it expects growth to remain "below trend" in the coming quarters.
"AUD is underperforming today, weighed down by RBA minutes which suggested interest rates may remain on hold and unlikely to rise in the near term as the Australian economy faces headwinds from a combination of slowing export growth to a slowing China , the negative impact of slower resource exports on investment in mining, and potential fiscal budget cuts," said Colin Cieszynski , a senior market analyst at CMC Markets , in a note.
The Aussie could fall to 92 U.S. cents over the next week, according to Boris Schlossberg , managing director of foreign-exchange strategy at BK Asset Management.
The pound (GBPUSD) moved up to $1.6845 from 1.6822 late Monday. The annual rate of consumer-price inflation in April rose to 1.8% from 1.6% in March.
The euro (EURUSD) fell to $1.3696 from $1.3710 late in the prior session. Der Spiegel reported the European Central Bank could implement a negative deposit rate in June. Speculation has been building about the potential for easing next month since ECB President Mario Draghi said May 8 he would be "comfortable" taking action in June, if necessary.
The dollar (USDJPY) fell to Yen101.31 from Yen101.41 . Investors continued to watch for a sustained push below the pair's 200-day moving average, currently at Yen101.26 , according to FactSet.
The ICE dollar index (DXY), a measure of the dollar's strength against six other currencies, rose to 80.054 from 80.005 late Monday. The WSJ Dollar Index , which pits the greenback against a wider basket of other currencies, rose to 72.96 from 72.87.
a look at China IPO policy rest of 2014
SHANGHAI--Six months after promising to let the market play a "decisive" role in the economy, China's leaders have backtracked on a high-profile overhaul of initial public offerings.
When China's new leaders released their 20,000-word policy blueprint for the next decade, IPOs were in the middle of a 15-month suspension. But in January the government issued new rules and offerings started flowing again.
Within weeks, regulators added restrictions on valuation and share performance and IPOs again dried up. On Tuesday, Xiao Gang , chairman of the country's securities regulator, further tightened the rules , saying share sales would be limited to 100 through the end of the year.
"When it comes to market reforms, the Chinese authorities have always taken an opportunistic approach, instead of an idealistic one," said Yuan Ding, a professor at the China Europe International Business School . "They find the market useful, but deep down they don't believe it can achieve the most effective allocation of resources."
China has long had a love-hate relationship with markets, using them to bring about necessary reforms but retaining enough levers of control that regulators could effectively undo much of the change. The country has slowly allowed its currency to trade more freely, but in late February, when Beijing became concerned about big bets made by investors that the yuan would keep appreciating, it engineered a devaluation that caused big losses on those trades.
Reforming the IPO process had long been discussed in China and was one of the first policy changes to come out of the Third Plenum of the Communist Party in November. Ten years earlier, the equivalent document said the market should play a "basic" role in the economy.
Under the new rules announced in January, the government would no longer choose which companies went public. In the past, Beijing has consistently picked poorly run but cash hungry state-owned companies, rather than more profitable private firms, for IPOs. The government often flooded the market with listings when shares were rising and halted offerings when markets turned down.
The result was weak performance. The Shanghai stock market is currently down 67% since it reached an high of 6124. 04 Oct. 16 , 2007.
"What the government loves is the performance brought about by the market. What it is afraid of is the loss of its control of the economy," said Ying Yuming, managing director of Hong Kong -based China Eagle Asset Management, which manages around US$40 million in assets.
The latest government move came as the Shanghai Composite Index hit a three-week low and flirted with the psychologically important 2,000 level, which it crossed nearly 14 years ago. The market is down 5.1% this year. Investors are worried about an economic slowdown and property bust in China , as well as a possible flood of IPOs. Huang Cendong, an analyst with Sinolink Securities , said investors had expected 300 to 400 IPOs this year.
The policy shift announced Tuesday will limit offerings to 100 from June through the end of the year. So far this year there have been 48 IPOs in China , but 43 of those occurred in January, right after the new rules were announced. Regulators quickly tightened the reins on the market.
In one case, Jiangsu Aosaikang Pharmaceutical Co. , a small drug maker, pulled its IPO, which was valued at 67 times earnings. Two days after Aosaikang shelved its IPO, the China Securities Regulatory Commission called for stronger supervision of IPOs and asked companies to give investors advance "risk alerts" if valuations of an IPO exceeded industry averages.
"The IPO-related farce in January was the most market unfriendly event in the past few years. By suspending Aosaikang's IPO, the regulator was turning back the wheel of history," said Mr. Ding.
The regulator announced other measures in January, including a probe into 13 underwriters and 44 institutional investors and threatened to carry out random spot checks on IPOs.
On Tuesday, regulators allowed new IPO applications for the first time in more than six months. There are 595 Chinese companies waiting for IPOs.
Beijing has made progress in liberalizing the yuan and interest rates. Controls on lending rates were scrapped in July and regulators have largely stood by as Internet companies such as Alibaba Group Holding Ltd. and Tencent lured depositors from banks with higher-yielding money-market funds.
Regulators loosened their control over the yuan, then reversed course and pushed it down. "They were getting hot money and they didn't such as it," said Tim Condon , economist at ING.
Although the Chinese central bank widened the yuan's trading band for the third time shortly afterward, it continued to push the currency down, more than wiping out the 2.9% gain it accumulated for the whole of 2013.
"The interesting thing about Chinese policy statements is that you really need to pay attention to the first few sentences. As long as words such as 'managed' aren't eliminated, they will really continue to manage the currency," said Liu Dongliang, senior analyst at China Merchants Bank .
Write to Shen Hong at hong.shen@wsj.com
(END) Dow Jones Newswires
05-20-14 0603ET
Copyright (c) 2014 Dow Jones & Company, Inc.
Thai Military Declares Martial Law to Curb Protests, Denies Coup
8:43 pm ET
Asian equity markets were mostly higher on Tuesday, shrugging off Monday's losses, while Thai shares were in focus after the army declared martial law. http://www.cnbc.com/id/101686981
----------------
Bloomberg.net
By Anuchit Nguyen and Tony Jordan May 19, 2014 7:44 PM ET
Thailand’s army imposed martial law nationwide after months of political turmoil that brought down an elected government and tipped the economy into a contraction.
“The military wants to keep order in the country and asks people not to panic and lead normal lives,” according to a ticker running on Channel 5, which is owned by the Thai army. “Martial law is not a coup,” it said.
The latest move is the army’s most direct involvement in the Southeast Asian nation’s politics since 2006, when then-premier Thaksin Shinawatra was removed in a coup. Martial law already is in place in parts of southern Thailand, and then-Prime Minister Abhisit Vejjajiva briefly declared it over Bangkok in 2010 to quell anti-government protests.
Political polarization has escalated in the past decade and a half over the role of Thaksin and his allies in a nation that’s seen 11 coups since the end of direct rule by kings in 1932. Thailand has been without a fully functioning government since December, when then-premier Yingluck Shinawatra, Thaksin’s sister, called snap elections in a bid to ease the unrest.
The February poll was disrupted by anti-government protest leader Suthep Thaugsuban’s followers and the government and election officials were unable to schedule a new one before Yingluck was removed on May 7 after a court ruled she abused her power in office. Anti-government protesters have derailed plans for a July 20 election and the army had said previously it may use force to counter any escalation of violence.
The army acted a day after government data showed gross domestic product shrank 0.6 percent in the first three months of 2014 compared with a year earlier. Thai production and tourism were hurt by unrest that began in November against Yingluck’s government.
“The political divisions run so deep the risks are to the downside” for the economy, Sarah Fowler, an economist at Oxford Economics in Oxford, U.K., wrote in a note yesterday. An end to political disruptions could unleash investment plans that have been on hold amid the turmoil, she wrote. Some $15 billion of domestic and foreign investment plans have been held up, according to Oxford Economics.
To contact the reporters on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net; Tony Jordan in Bangkok at tjordan3@bloomberg.net
some sector financials via stuffit
2:09 pm ET
Raymond James upgrades E Trade Financial (ETFC +0.1%) to Outperform and set $24PT.
Baird cuts its rating on American Realty Capital Properties (ARCP -1.2%) from Outperform to Neutral and set $15PT.
Bank of America downgrades Deutsche Bank (DB -1.6%) to Underperform.
Credit Suisse downgrades Fulton Financial (FULT +2.8%) to $14 Market Perform and set $14PT.
Genworth Financial is downgraded by Morgan Stanley (GNW -0.5%) to Underweight and set $18PT.
NPTN rvsd guidance, neg eps really lowered
Revs ok but loss now seen double current est.
NeoPhotonics Revises Guidance
Monday, May 19, 2014 4:01:39 PM ET
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NeoPhotonics Corporation (NPTN) said it expects a first quarter loss of $0.42 to $0.38 per share on revenue of $67.5 million to $68.5 million. The company's previous guidance was revenue of $67.0 million to $69.0 million and the current consensus estimate is a loss of $0.19 per share on revenue of $68.1 million for the quarter ending March 31, 2014. The company also said it expects second quarter revenue of $73.0 million to $78.0 million. There currently are no revenue estimates for the quarter ending June 30, 2014.
Renegade Libyan general says parliament suspended
50 mins ago Wonder whether will move crude Monday. Price has had some small swings as Libya turned on/off the taps. If they get a better hold on output, OPEC will have to reduce supply to make up for a larger Libyan increase than currently.
https://tinyurl.com/orfuelv
TRIPOLI, Libya (AP) — Forces apparently loyal to a renegade Libyan general said they suspended parliament Sunday after earlier leading a military assault against lawmakers, directly challenging the legitimacy of the country's weak central government three years after the overthrow of dictator Moammar Gadhafi. Libya's leadership condemned the attack and vowed to carry on.
A commander in the military police in Libya read a statement announcing the suspension on behalf of a group led by Gen. Khalifa Hifter, a one-time rebel commander who said the U.S. backed his efforts topple Gadhafi in the 1990s. Hours earlier, militia members backed by truck-mounted anti-aircraft guns, mortars and rocket fire attacked parliament, sending lawmakers fleeing for their lives as gunmen ransacked the legislature.
<more>
9am ET today: presentation 5/20 ah
SAN JOSE, Calif. , May 15, 2014 /PRNewswire/ -- Oclaro, Inc. (Nasdaq: OCLR), a leading provider and innovator of optical communications solutions, today announced that management is scheduled to present at the 15th Annual B. Riley Investor Conference on May 20, 2014 , at 4:00 p.m. Pacific Time .
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|Event: |15th Annual B. Riley Investor Conference |
|_________________|_____________________________________________________|
|Date: |Tuesday, May 20, 2014 |
|_________________|_____________________________________________________|
|Time: |4:00 p.m. Pacific Time |
|_________________|_____________________________________________________|
|Location: |Loews Santa Monica Beach Hotel - Santa Monica, Calif.|
|_________________|_____________________________________________________|
A webcast of the conference presentation will be available in the investor relations section of the Company's website at www.oclaro.com.
About Oclaro Oclaro, Inc. (Nasdaq: OCLR), is a leader in optical components, modules and subsystems for the core optical, enterprise and data center markets. Leveraging more than three decades of laser technology innovation, photonics integration, and subsystem design, Oclaro's solutions are at the heart of the fast optical networks and high-speed interconnects driving the next wave of streaming video, cloud computing, voice over IP and other bandwidth-intensive and high-speed applications. For more information, visit http://www.oclaro.com.
Yellen brief remarks to small biz
WASHINGTON (MarketWatch) -- The U.S. economy has come far since the deths of the financial crisis but "we have further to go to achieve a healthy economy," said Federal Reserve Chairwoman Janet Yellen on Thursday. In brief remarks at a National Small Business Week event at the U.S. Chamber of Commerce, Yellen paid tribute to the important role small firms have played in the recovery. A little more than half of the net number of jobs created since employment began growing in 2010 has been generated by firms with fewer than 250 employees, Yellen said.
- Greg Robb ; 415-439-6400; AskNewswires@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
05-15-14 1832ET
DANG tests <$10 em
Earnings & Broker Guidances
08:41 News Bot: US PRE-MARKET EARNINGS SNAP-SHOT
Large Cap Stocks (USD 20bln+)?
WMT | Wal-Mart Stores Inc | Q1 EPS USD 1.10 vs. Exp. USD 1.15
Small-to-Mid Cap Stocks (USD 1-20bln)?
AAP | Advance Auto Parts Inc | Q1 EPS USD 2.25 vs. Exp. USD 2.15
ATK | Alliant Techsystems Inc | Q4 EPS USD 2.59 vs. Exp. USD 2.41
CA | CA Inc | Q4 EPS USD 0.61 vs. Exp. USD 0.59
FLO | Flowers Foods Inc | Q1 EPS USD 0.29 vs. Exp. USD 0.30
KSS | Kohl's Corp | Q1 EPS USD 0.60 vs. Exp. USD 0.63
MANU | Manchester United Plc | Q3 EPS USD 0.08 vs. Exp. USD 0.06
PBH | Prestige Brands Holdings Inc | Q4 EPS USD 0.35 vs. Exp. USD 0.33
TK | Teekay Corp | Q1 EPS USD 0.05 vs. Exp. USD -0.27
TGP | Teekay LNG Partners LP | Q1 EPS USD 0.56 vs. Exp. USD 0.58
TOO | Teekay Offshore Partners LP | Q1 EPS USD 0.36 vs. Exp. USD 0.39
Earnings from after-market yesterday (14th May 2014)
Acxiom Corp (ACXM) Q4 Adj. EPS USD 0.24 vs. Exp. USD 0.20
Agilent Technologies Inc (A) Q2 EPS USD 0.72 vs. Exp. USD 0.73
Cisco (CSCO) Q3 Adj. EPS USD 0.51 vs. Exp. USD 0.48
Eagle Materials Inc (EXP) Q4 EPS USD 0.45 vs Exp. USD 0.50
Jack in the Box Inc (JACK) Q2 Oper. EPS USD 0.51 vs. Exp. USD 0.52
NetEase Inc ?(NTES) Q1 earnings USD 1.38/ADS vs Exp. USD 1.42
Seaworld Entertainment (SEAS) Q1 Adj. Loss/Shr USD 0.56 vs. Exp. USD 0.49 ?
Vipshop (VIPS) Q1 Adj. EPS USD 0.63/ADS vs. Exp. USD 0.46
WuXi Pharmatech (WX) Q1 non-GAAP EPS USD 0.30 vs. Exp. USD 0.39
(RANsquawk)
08:45 News Bot: Today's major pre-market US broker moves:
Upgrades
ACXIOM (ACXM) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT BMO CAPITAL
EARTHLINK (ELNK) UPGRADED TO OUTPERFORM FROM PERFORM AT OPPENHEIMER
ENLINK MIDSTREAM PARTNERS (ENLK) UPGRADED TO OUTPERFORM AT OPPENHEIMER
HEARTLAND PAYMENT (HPY) UPGRADED TO OUTPERFORM FROM NEUTRAL AT RW BAIRD
KINDER MORGAN (KMI) UPGRADED TO CONVICTION BUY FROM BUY AT GOLDMAN
L-3 COMMUNICATIONS (LLL) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
MIDDLEBY CORP (MIDD) UPGRADED TO BUY AT BB&T
MILLER ENERGY (MILL) ASSUMED WITH A BUY FROM HOLD AT BREAN CAPITAL
NIMBLE STORAGE (NMBL) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN
PARKWAY PROPERTIES (PKY) UPGRADED TO BUY FROM HOLD AT STIFEL
PERNIX THERAPEUTICS (PTX) UPGRADED TO STRONG BUY FROM BUY AT NEEDHAM
PLUG POWER (PLUG) UPGRADED TO OUTPERFORM AT COWEN
RANGE RESOURCES (RRC) UPGRADED TO CONVICTION BUY FROM NEUTRAL AT GOLDMAN
REGAL ENTERTAINMENT (RGC) UPGRADED TO BUY AT TOPEKA CAPITAL
STEEL DYNAMICS (STLD) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT COWEN
TANDEM DIABETES (TNDM) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK (PRE-OPEN)
TWITTER (TWTR) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT ATLANTIC EQUITIES
ZIMMER (ZMH) UPGRADED TO BUY FROM NEUTRAL AT SUNTRUST
Downgrades
AMERICAN CAPITAL MORTGAGE (MTGE) DOWNGRADED TO MARKET PERFORM AT JMP SECURITIES
ANGLO AMERICAN (AAUKY) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE
BE AEROSPACE (BEAV) DOWNGRADED TO NEUTRAL FROM BUY AT UBS
BRISTOL-MYERS (BMY) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BMO CAPITAL
COLUMBIA PROPERTY (CXP) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
HUNTINGTON INGALLS (HII) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL
ITC HOLDINGS (ITC) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
LATAM AIRLINES (LFL) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
PHOTOMEDEX (PHMD) DOWNGRADED TO HOLD FROM BUY AT ASCENDIANT
SOUTHWESTERN ENERGY (SWN) DOWNGRADED TO NEUTRAL FROM CONVICTION BUY AT GOLDMAN
URBAN OUTFITTERS (URBN) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT FBR CAPITAL
VOXX INTERNATIONAL (VOXX) DOWNGRADED TO NEUTRAL FROM BUY AT B. RILEY
VODAFONE (VOD) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN
Initiations
ACADIA (ACAD) INITIATED WITH AN OVERWEIGHT AT JPMORGAN
CHEROKEE (CHKE) INITIATED WITH A BUY AT B. RILEY
GLORI ENERGY (GLRI) INITIATED WITH BUY AT MAXIM
MAGELLAN PETROLEUM (MPET) INITIATED WITH A BUY AT B. RILEY
RACKSPACE (RAX) ASSUMED WITH AN OVERWEIGHT AT JPMORGAN
(RANsquawk)
SA article positive on CSCO, sees near $30
http://seekingalpha.com/article/2218843-cisco-isnt-in-a-death-spiral