Market Update: 110617 4:20 pm : A positive response to recent efforts to shore up Greece's fiscal woes helped stocks eek out their first weekly advance in seven weeks.
Both domestic equities and Europe's bourses bounced in response to news this morning that Greece has appointed a new finance minister and that German and French officials support quick implementation of plans to address the country's fiscal woes. However, Moody's reminded investors about the precarious fiscal conditions that exist among countries in the eurozone periphery by announcing that Italy's debt rating is on review for possible downgrade.
Although stocks were able to open on a strong note, support waned as the session progressed. The downward drift took the tech-rich Nasdaq to a modest loss, but the S&P 500 was able to sustain a modest gain, which proved to be enough to give the broad market average a weekly gain of less than one point. Still, that's the stock market's first weekly advance since April.
A 0.9% gain made financials the best performing sector of the session. Telecom, which advanced 0.8%, wasn't far behind. Energy and tech were at the other end of the spectrum; both sectors shed 0.3%. Energy was hurt by a 2% drop in oil prices to about $93 per barrel, while weakness in the tech sector was largely attributable to sharp losses among semiconductor stocks, which fell 1.4% as a group.
Research In Motion (RIMM 27.75, -7.58) was dumped aggressively today. The company's downside guidance took the stock to its lowest level in more than four years.
Participants were dealt a small dose of data today. The Consumer Sentiment Survey for June from the University of Michigan came in at 71.8, which is less than the reading of 73.5 that had been broadly expected among economists polled by Briefing.com. Leading Indicators for May increased by 0.8%, which is greater than the Briefing.com consensus call for a 0.4% increase.
Share volume surged this session, but not because investors rushed in from the sidelines. Rather, quadruple-witching options expiration increased the number of shares traded among regular participants.
3:30 pm : Stocks have slipped toward session lows in response to headlines that suggest analysts at Moody's have put Italy's debt rating on review for possible downgrade. The announcement, which follows news of efforts to shore up Greece's finances, offers a blunt reminder of the precarious fiscal conditions that exist among countries in the eurozone periphery.
Commodities closed the week in mixed fashion as energy prices were pared, but precious metals pushed higher.
Oil prices were under pressure all session. The price of crude oil in the continuous contract came down by 2.0% so that the energy component closed pit trade just a penny above $93 per barrel. Natural gas prices had been up in the early going, but contracts inevitably closed with prices down 1.8% at $4.33 per MMBtu.
Precious metals had been weak early this morning, but were able to make a push higher and settle in positive territory. Specifically, gold gained 0.5% to end the day at $1538.10 per ounce, while silver settled at $35.77 per ounce to score a 0.6% gain. DJ30 +32.93 NASDAQ -9.39 SP500 +2.70 NASDAQ Adv/Vol/Dec 1054/1.66 bln/1414 NYSE Adv/Vol/Dec 1745/848 mln/1242
3:00 pm : Momentum from a recent buying effort has faded, but the S&P 500 is up enough so that it heads into the final hour of Friday's trade with its eye on a fractional gain for the week. The broad market measure hasn't scored a weekly gain since April.
Share volume remains relatively robust, but that's largely because of the quadruple-witching options expiration. Prior to the past few sessions, daily share volume on the NYSE has averaged less than 1 billion shares. DJ30 +60.74 NASDAQ -2.32 SP500 +5.68 NASDAQ Adv/Vol/Dec 1130/1.59 bln/1314 NYSE Adv/Vol/Dec 1885/815 mln/1098
2:30 pm : A recent flurry of buying has helped the S&P 500 and the Dow add to their gains while the Nasdaq has poked back into positive territory. The move coincides with a dip by the dollar, which is now down 0.7% against the euro, and down 0.6% against a bigger basket of major foreign currencies. There are no other apparent catalysts to account for the market's move out of its recent trading range.DJ30 +70.54 NASDAQ +0.27 SP500 +6.72 NASDAQ Adv/Vol/Dec 1184/1.48 bln/1261 NYSE Adv/Vol/Dec 1974/765 mln/998
2:00 pm : The broad equity market continues to trade with a narrow gain. It has been moving sideways in a relatively tight trading range for the past hour. That has the stock market sitting flat for the week.
The dollar continues to trade with a steady loss of about 0.5%, relative to a basket of major foreign currencies. Most of its weakness is owed to a stronger euro, which has rallied in response to recent efforts to shore up Greece's finances. The euro is still up almost 7% against the greenback year to date, despite its weakness ahead of the recent announcements. DJ30 +39.40 NASDAQ -6.05 SP500 +3.16 NASDAQ Adv/Dec 1062/1378 NYSE Adv/Dec 1735/1218
1:30 pm : Stocks continue to drift lower. The downward grind has left the three major equity averages to trade at new session lows.
Amid the stock market's weakening, the Volatility Index is climbing so that it is now down 3% for the session. Just yesterday it set a near three-month high.
Treasuries have started to tick higher in response to the recent action among stocks. In turn, the benchmark 10-year Note is at a session high, although it is still down a single tick. DJ30 +47.65 NASDAQ -3.27 SP500 +4.17 NASDAQ Adv/Dec 1139/1300 NYSE Adv/Dec 1835/1097
1:00 pm : Stocks started the session with solid gains, but support has since waned. The modest gains that remain have put the stock market on the edge of logging another weekly loss.
Trade this morning was broadly positive. The improved tone was brought about by news that Greece has appointed a new finance minister and reports that German and French officials have called for quick implementation of plans to help Greece shore up its finances and fiscal responsibilities. The news also drove buying in the euro.
Data also played a part in early buying interest. Participants were somewhat disappointed by a lower-than-expected reading in the Consumer Sentiment Survey for June from the University of Michigan, but that was overshadowed by a stronger-than-expected increase in the latest Leading Indicators.
Support for stocks has diminished during the course of the past couple of hours. That has let the Dow and the S&P 500 fighting to maintain modest gains. What's more, the downward drift has threatened to give the S&P 500 its seventh consecutive weekly loss.
Energy stocks and tech stocks are currently the heaviest drags on broad market trade. Both sectors are in the red with modest losses. While energy has been hurt by a 2.5% drop in oil prices to $92.60 per barrel, weakness among tech stocks is largely an extension of the sector's downtrend.
On an individual basis, Research In Motion (RIMM 27.88, -7.46) has been this session's worst performing name. Downside guidance prompted the stock's 20% drop, which has put it at its lowest level in more than four years. There haven't been many other major corporate announcements today. DJ30 +41.89 NASDAQ -2.85 SP500 +3.83 NASDAQ Adv/Vol/Dec 1184/1.15 bln/1224 NYSE Adv/Vol/Dec 1881/650 mln/1062
12:30 pm : A flurry of selling pressure has undercut stocks. The effort took the Nasdaq down to the neutral line, but it has yet to cross into the red. Meanwhile, both the Dow and S&P 500 have managed to hold on to modest gains.
Treasuries have had a hard time attracting support this session. That has kept the benchmark 10-year Note stuck in the red with a slight loss; its yield, at 2.95%, is at the mid-point of its weekly range. DJ30 +59.45 NASDAQ +2.22 SP500 +5.63 NASDAQ Adv/Vol/Dec 1362/1.06 bln/1050 NYSE Adv/Vol/Dec 2082/615 mln/850
12:00 pm : Shares of Research In Motion (RIMM 27.43, -7.90) had been declining gradually since February, but today they have plummeted more than 20% so that they now trade at their lowest level in more than four years. The intense selling pressure has come in response to the company's pessimistic earnings forecast, which is considerably less than what Wall Street had expected from the firm. With this session's drop, the stock is now down about 60% from its February high.
Peers of the company have shown a mixed reaction to the announcement. Shares of Nokia (NOK 6.05, +0.11) are up solidly today, although the stock has also succumbed to agressive selling pressure in recent weeks. Meanwhile, Apple (AAPL 322.92, -2.24) which makes the iPhone that rivals RIMM's BlackBerry, is down firmly today. DJ30 +78.11 NASDAQ +7.28 SP500 +8.39 NASDAQ Adv/Vol/Dec 1500/965 mln/900 NYSE Adv/Vol/Dec 2200/580 mln/710
11:30 am : The Dow continues to chop along within a 20-point trading range, but both the Nasdaq and S&P 500 have reclaimed gains in recent action.
Energy stocks and tech stocks continue to trail the broader market. The two sectors are each up only 0.2% at the moment. In contrast, telecom and utilities, both of which are traditionally considered defensive oriented, are sporting gains of 1.1%, which makes them today's top performers. Among telecom plays, Dow component Verizon (VZ 35.85, +0.61) is a primary leader, while American Electric (AEP 37.92, +0.57) is a percentage leader among utilities issues. DJ30 +72.43 NASDAQ +5.74 SP500 +8.16 NASDAQ Adv/Vol/Dec 1471/860 mln/921 NYSE Adv/Vol/Dec 2126/540 mln/765
11:05 am : Choppy action has eaten into the broad market's gain. Still, stocks are up a few points for the week. That's something that hasn't happened since April.
The Nasdaq is having a harder time holding on to its gain, however. Sellers have sent the tech-rich index to a session low, where it has been left to cling to a fractional gain. For the week, though, the Nasdaq is still down about 17 points, or less than 1%. DJ30 +71.75 NASDAQ +3.86 SP500 +6.96 NASDAQ Adv/Vol/Dec 1415/725 mln/954 NYSE Adv/Vol/Dec 2068/500 mln/799
10:35 am : Despite weakness in the dollar index this morning, only a handful of commodities are seeing strength.
Crude oil futures have been in the red all session and hit session lows of $92.12/barrel during the overnight session. Since the open of pit trading, crude has been trading between approx. $93-94/barrel and is currently down 1.3% at $93.72.
Natural gas has been in positive territory for most of this morning's activity and is now up one cent at $4.42/MMBtu.
Gold and silver futures both rallied almost an hour ago, pushing into positive territory. Gold climbed about $13/oz higher (or +0.9%) to new session highs of $1541.80/oz and is now up 0.5% at $1537.20/oz. Silver rallied 49 cents (or +1.4%) to $35.90/oz and is currently up 0.4% at $35.71/oz.DJ30 +67.32 NASDAQ +4.52 SP500 +6.81 NASDAQ Adv/Vol/Dec 1722/543.0 mln/719 NYSE Adv/Vol/Dec 2370/448.2 mln/442
10:05 am : Stocks recently slipped after running into some near-term, upward resistance and receiving a rather disappointing Consumer Sentiment Survey for June from the University of Michigan. The Sentiment Survey came in at 71.8, which is less than the reading of 73.5 that had been broadly expected among economists polled by Briefing.com. The June reading is also less than the 74.3 that had been posted for the prior month.
However, stocks have since made a nice bounce on the back of Leading Indicators for May. Indicators increased by 0.8%, which is greater than the Briefing.com consensus call for a 0.4% increase. Indicators for May also marked a strong turnaround from the 0.3% decline that was posted in the prior month.
09:45 am : Stocks are up with solid gains this morning. The bid has been broad, but financials and health care have garnered the strongest support; both sectors are up by about 1%.
Energy issues are lagging this morning; the sector's 0.3% gain is less than half of what the broad market has already achieved. Such a relatively weak start comes amid lower oil prices, which were last quoted with a 1.6% loss at $93.40 per barrel. DJ30 +84.20 NASDAQ +17.38 SP500 +10.29 NASDAQ Adv/Dec 1582/617 NYSE Adv/Dec 2212/479
09:15 am : S&P futures vs fair value: +11.90. Nasdaq futures vs fair value: +16.00. Planning to stabilize Greece's fiscal condition has helped improve sentiment this morning. In turn, stock futures suggest that the cash market will open with a marked gain that is actually enough to put the S&P 500 in positive territory for the week. Should the move hold, stocks will score their first weekly gain in seven weeks. Still, quadruple-witching options expiration could drive enough volatility to challenge early strength. Also looming is the latest consumer sentiment reading from the University of Michigan (9:55 AM ET) and the latest in leading indicators (10:00 AM ET). Given the jittery nature of the market in recent weeks, any dose of disappointing data could be viewed as an excuse to sell into intraday gains.
09:05 am : S&P futures vs fair value: +13.00. Nasdaq futures vs fair value: +16.20. The tone of trade in Europe has improved markedly since the prior session, thanks to plans to stabilize Greece's fiscal condition. Reports indicate that the country has apponted a new finance minister and that officials from both France and Germany want new programs to be quickly implemented. Greece's Athex 20 is presently up 5.5%. Meanwhile, Germany's DAX is up 1.4%. Deutsche Bank (DB) is a primary leader there. K+S AG, Deutsche Boerse, Infineon Tech, and Henkel AG are the only four names in the bourse that are in the red. France's CAC has put together a 1.2% gain. GDF Suez and Technip are top performers. Carrefour is the only name in the 40-member index that has failed to find higher ground. Britain's FTSE is up a more modest 0.4% in Friday's trade. It has been led higher by metals and mining plays Xstrata, Anglo American, and Rio Tinto (RIO), while Kingfisher Plc has been a laggard. Eurozone data indicated that the region's trade deficit for April totaled 2.9 billion euros. That is greater than the 900 million euro deficit that was recorded in the prior month. Construction output in the eurozone increased by 0.7% in April after it had slipped 0.3% in the prior month.
Overnight action in Asia was weak again. Japan's Nikkei fell to a 0.6% loss. Shimizu Corp was one of the poorest performers. Tokyo Electric also dropped sharply, but Chubu Electric Power was a top performer. Hong Kong's Hang Seng shed 1.2% to settle at its lowest level in about nine months. Tencent Holdings was a primary source of weakness as it tumbled to a loss of more than 4%. Mainland China's Shanghai Composite closed with a 0.8% loss, which took the Composite to a new eight-month low. Weakness was broad, but financials were one of the heaviest burdens.
08:35 am : S&P futures vs fair value: +12.80. Nasdaq futures vs fair value: +13.70. Morning action among commodities is generally weak. Pressure on oil has prices down 1.3% to $93.72 per barrel ahead of pit trade. Natural gas was recently quoted with a 0.4% gain at $4.43 per MMBtu. Among precious metals, gold has limited its loss to just 0.1% so that it trades at $1528.60 per ounce. Silver is down a sharper 0.4% to $35.41 per ounce.
08:05 am : S&P futures vs fair value: +13.60. Nasdaq futures vs fair value: +16.20. Stocks head into Friday on pace for their seventh straight weekly loss, but broad market futures point to a positive start for the final session of the week. The upbeat tone comes as Europe's major bourses bounce in response to reports of progress in creating programs to remedy the fiscal woes faced by Greece. The news has also sent the euro up sharply against the greenback; the currency was last quoted with a 0.6% gain at $1.429. Corporate news flow remains light, but Research In Motion (RIMM) is making headlines for its pessimistic forecast, which has weighed heavily on the stock ahead of the open. As for data, the latest reading on consumer sentiment from the University of Michigan is scheduled for 9:55 AM ET. It will be followed immediately by the latest leading indicators reading at 10:00 AM ET. Separately, quadruple-witching options expiration today will almost certainly stoke share volume, and possibly add to volatility.
06:29 am : [BRIEFING.COM] S&P futures vs fair value: +8.00. Nasdaq futures vs fair value: +10.00.
06:29 am : Nikkei...9351.40...-59.90...-0.60%. Hang Seng...21695.26...-257.90...-1.20%.
06:29 am : FTSE...5691.27...-7.50...-0.10%. DAX...7123.58...+13.40...+0.20%.
4:42PM Brookfield Residential announced that it has entered into an agreement to purchase two million of its own shares from Brookfield Asset Management (BRP) : ...
4:35PM PetSmart announces $450 mln share purchase program and 12% increase to its quarterly dividend (PETM) 43.39 -0.06 : Co approval to increase its quarterly dividend by 12% from $0.125 to $0.14 per share beginning in the second quarter of fiscal 2011. The Board of Directors also authorized a new $450 million share purchase program. This new share purchase program will commence on August 1, 2011, and continue until January 2013, and will replace any unused amount remaining under the June 2010 share purchase program as of the commencement date.
4:33PM Porter Bancorp expects PBI Bank to enter into agreement with FDIC and KDFI (PBIB) 5.21 -0.16 : Porter Bancorp (PBIB), parent co of PBI Bank, announced that PBI Bank expects to enter into a Consent Order in the near future with the Federal Deposit Insurance Corp and the Kentucky Department of Financial Institutions. The Consent Order establishes benchmarks for the bank to improve its asset quality, reduce its loan concentrations and maintain its capital levels.
4:30PM Vitacost.com is scheduled to resume trading on June 20 (VITC) : The NASDAQ Stock Market announced that trading in Vitacost.com (VITC) is scheduled to resume on Monday, June 20, 2011 at 7:30 a.m., Eastern Time. Trading in the company's stock was previously halted on December 7, 2010.
4:26PM Duke Realty redeems series N preferred shares (DRE) 13.45 +0.05 : Co announced that it has called for redemption all of its 434,520 outstanding 7.25% Series N Cumulative Redeemable Preferred Shares, par value $.01 per share, and all of the 4,345,200 Depositary Shares representing such Series N Preferred Shares (DREPRN). The redemption date is July 18, 2011. The cash redemption price for the Series N Preferred Shares is $250.00 per share, which is equivalent to a cash redemption price of $25.00 per Series N Depositary Share.
4:20PM Mylan defeats Teva's motion for summary judgment on copaxone; court orders trial on inequitable conduct defense to commence July 11, 2011 (MYL) 22.27 +0.12 : Co confirmed that the U.S. District Court for the Southern District of New York has denied Teva's motion for a summary judgment finding of no inequitable conduct in relation to Copaxone. In addition, the court set a start date of July 11, 2011, for the trial regarding Mylan's inequitable conduct affirmative defense. The remaining issues will be tried beginning on Sept. 7, 2011.
4:15PM Globecomm Systems reports settlement of C2C/Evocomm earn-out; reaffirms FY11 EPS guidance (GCOM) 14.71 +0.29 : Co announced that it has reached a settlement agreement with Satellite Telecom Holdings Limited (formerly Carrier to Carrier Telecom Holdings Limited) on the remaining earn-out obligation with respect to co's previously-announced acquisition of Carrier to Carrier Telecom B.V. and Evolution Communications Limited. The co will make a final payment of $4.5 mln in July 2011. This will result in a charge of ~$1.8 mln in co's Q4, or $0.08 per diluted share, with no impact on adjusted diluted net income per common share. This settlement will eliminate any future charges for the change in fair value of the earn-out, will save the co up to $1.0 mln in potential future charges based on the continued improved results of the acquired subsidiaries, beyond co's original expectations and will allow the management to focus on synergies as co proceeds with integration of the acquired companies. As a result of the earn out settlement, co currently expects GAAP diluted net income per common share for the fiscal year ending June 30, 2011 to be between $0.35-0.39, down from $0.43-0.47. Co expects adjusted EPS to remain unchanged at between $0.57-0.62 for FY11 vs. the $0.59 Capital IQ Consensus Estimate. Co's other expectations regarding its 2011 fiscal year end results, indicated in its May 9, 2011 press release, remain current.
4:05PM Credit Acceptance announces extension and increase of revolving secured line of credit facility and extension of revolving secured warehouse FacilityCorp. (CACC) 76.71 -1.98 : Co announced that we have extended the maturity and increased the amount of our revolving secured line of credit facility and extended the date on which our $325.0 mln revolving secured warehouse facility will cease to revolve. Extension and Increase of Revolving Secured Line of Credit Facility We have extended the maturity of our credit facility with a commercial bank syndicate from June 22, 2012 to June 22, 2014 and increased the amount of the facility from $170.0-205.0 mln.
4:02PM WD-40 Co announces new three-year credit agreement with Bank of America (WDFC) 40.82 +0.55 : Co announced that it has entered into a $75.0 mln three-year revolving unsecured credit agreement with Bank of America, N.A. The new credit facility replaces an existing $10.0 mln unsecured credit line with Union Bank, N.A. ("Union Bank") executed in September 2008. The Co had no outstanding borrowing under the Union Bank credit line and has not yet drawn on the credit facility with Bank of America. The Co's $75.0 mln, 7.28% fixed-rate term loan financed through Prudential Capital matures in Oct 2011. A balance of $10.7 mln remains outstanding on the Prudential loan.
4:01PM Canterbury Park Holding may be forced to nearly all operations on July 1 if Minnesota budget impasse continues into July (CPHC) 12.76 +0.61 : Co reports that it may be forced to suspend all or substantially all of its operations on July 1, 2011 if the current budget impasse between Minnesota's Governor and Legislature continues into July and if layoff notices recently sent to employees of the Minnesota Racing Commission, which regulates Canterbury Park's gaming operations, remain in effect. "We are working with the MRC to evaluate various options that might allow the Company to keep all or part of its gaming operations open even if the budget impasse continues into July. However, at this time, we can provide no assurance that we will be able to avoid a complete suspension of operations on July 1."
4:00PM Buckeye Tech plans to close Delta nonwovens facility by end of 2012 (BKI) 23.12 +0.15 : Co announced plans to close its Delta, B.C., Canada airlaid nonwovens facility by the end of calendar 2012. The co expects to generate $30 mln cash benefit from closure and expects a non-cash impairment charge of $15 mln and $5 mln restructuring costs.
3:48PM Oil States awarded SCR end termination technology supply contract (OIS) 69.94 +0.21 : Co announced that its Oil States Industries subsidiary has been awarded a contract from Subsea 7 to supply 27 FlexJoint Steel Catenary Riser terminations and 40 receptacle assemblies for the Guara and Lula NE oilfields in Brazil. Delivery of the FlexJoint equipment is scheduled to begin in 2012. Oil States' scope of supply will also incorporate the exclusive field-proven bellows and HPHT FlexJoint technology that Oil States developed for the offshore industry.
3:39PM Preferred Bank announces effective date of 6/17 for reverse stock split (PFBC) 1.49 0.00 :
3:32PM Republic Airways unit announced Pilots Association members approval of agreement; Frontier more than halfway to profitability improvement goal (RJET) 4.52 +0.08 : Frontier Airlines announced that the membership of the Frontier Airline Pilots Association ratified an agreement approving their participation in the restructuring of Frontier Airlines... The co continues to negotiate agreements with key stakeholders, including aircraft lessors, significant suppliers and distribution partners. "We are confident that those efforts will yield the remaining business improvements necessary to achieve our goal of $120 million in annual profitability improvement." Bedford concluded.
3:26PM Fresh afternoon lows for stock indices -- Dow +25, S&P +1.9, Nasdaq Comp -11 sets new session low (SPY) :
2:57PM NYMEX Energy Closing Prices (COMDX) : Crude oil settled lower by $1.94 cents to $93.01, natural gas fell 8 cents to close at $4.33, RBOB gasoline was unchanged at $2.95, while heating oil finished fell by 2 cents to $2.98.
2:44PM Dow +67 and S&P +6.1 lift back into morning range, Nasdaq Comp -1.2 tests morning range lows (SPY) : Noted earlier that the S&P was testing the 50% retracement of the Thur/Fri at 1268.94 and it has put together a modest afternoon bounce after hitting 1269.08 at 13:20 ET.
2:31PM CBOT Agriculture and Ethanol and ICE Exchange Sugar Closing Prices (COMDX) : Continuous corn futures closed unchanged today at $7.02/bushel, wheat fell 2 cents to close at $6.71, cont. soybeans fell 19 cents at $13.31, cont. ethanol closed up 1 cent to $2.65, while cont. world sugar futures closed down 0.08% at 0.26 cents.
2:27PM Apricus Biosciences CEO expects higher revenue if Pfizer (PFE) Viagra litigation is successful (APRI) 5.13 -0.05 : Co's CEO noted today his belief that the co could see higher revenues should Pfizer be successful in its patent litigation battle against the introduction of generic versions of its Viagra product for the treatment of erectile dysfunction "If the recent global litigation effort by Pfizer is successful in extending the life of its Viagra? patents in certain markets, then Apricus Bio and its partners could expect to see the projected per unit price of its Vitaros product for ED increase an average of $1.00 to $2.00 over the next several years in those geographic areas... This could result in higher projected revenues for our product in the future in those markets where Pfizer is successful."
2:26PM AT&T edging back toward its midday/session high at 30.89 (T) 30.86 +0.43 : Note the its 50 day sma and this week's rebound high are at 30.92/30.93.
2:23PM Regeneron Pharms resumes trading (REGN) 57.76 +0.04 : Co's EYLEA received a unanimous FDA recommendation for approval for treatment of wet AMD.
2:19PM United Comm Banks announced its 1-for-5 reverse stock split will become effective after the close today (UCBI) 2.05 -0.02 : The reclassification was previously approved by United's shareholders at the annual shareholder meeting held on June 16, 2011.
2:15PM Symetra Financial unit to acquire renewal rights for American United Life medical stop-loss policies for $26 mln (SYA) 12.78 +0.01 : Symetra Life Insurance Company to acquire the renewal rights for medical stop-loss insurance policies issued by American United Life Insurance Company through its R.E. Moulton underwriting affiliate. The cash deal, valued at $26 mln, is expected to close on July 1, 2011 and be accretive to 2011 adjusted operating income by approximately $0.01 per share. The agreement centers on renewal rights for AUL stop-loss policies representing ~$120 mln in premium. Symetra's medical stop-loss premiums for the 12 months ended March 31, 2011 totaled $386 mln.
2:10PM Aoxing Pharma announces issuance of Chinese patent for midazolam maleate oral film (AXN) +0.84 +0.01 : Co announced that its operating subsidiary in China, Hebei Aoxing Pharmaceutical Group Company, has been granted a patent by the State Intellectual Property Office of The People's Republic of China for midazolam maleate oral film. The Chinese patent covers an oral film formulation of midazolam maleate that can be dissolved rapidly under the tongue.
2:05PM Regeneron Pharms confirms EYLEA (aflibercept ophthalmic solution) receives unanimous recommendation for approval for treatment of wet AMD from FDA Advisory Committee (REGN) 56.72 -1.10 : Under Priority Review, the target date for an FDA decision on the EYLEA BLA is August 20, 2011. (stock remains halted)
2:02PM Pennichuck Corporation announces rate increases for two of its regulated utilities (PNNW) 28.69 +0.12 : Co announced that the New Hampshire Public Utilities Commission has issued permanent rate orders approving rate settlement agreements in effect between the staff of the NHPUC and two of the Company's regulated utility subsidiaries, Pennichuck Water Works and Pittsfield Aqueduct Co. Taken together, these orders make effective a permanent annualized increase in revenues of ~$3.0 mln based on 2009 water usage volumes. The Pennichuck Water order, which was issued June 9, 2011, provides for an annualized increase in revenues of ~ $2.9 mln, or 11.95%, for service rendered from June 2010, and replaces a temporary annualized increase of $2.6 mln, or 10.8%, that has been in effect for service rendered from October 2010.
1:50PM Deer Consumer Products reports no negative corporate developments, announces granting of subpoena power against illegal short sellers (DEER) 5.37 -1.05 : Co affirms that it is conducting its normal course of business and is not aware of any negative developments within the company or in its operations. As previously announced, co approved a $0.05 per share quarterly cash dividend that will be paid on July 15, 2011, to shareholders of record at the close of business on June 30, 2011. Deer also affirms its previously issued financial guidance for 2011 (Note: co previously reaffirmed guidance on May 10--sees FY11 EPS of $1.08-1.12 vs. $1.12 Capital IQ Consensus Estimate). As of Q1/2011, Deer had shareholders' equity of ~$150 mln, or $4.45 per share in net assets and more than $28 mln in cash without any long-term debts. Deer has sufficient cash on hand and has no plan to dilute our shareholders.... As of June 16, 2011, Deer's common stock has been on the NASDAQ's Reg SHO list for 63 consecutive days, which suggests that a large number of Deer shares have not settled for 63 consecutive settlement days, reflecting continued illegal naked short selling in Deer's shares.
1:37PM Johnson & Johnson's Ortho-McNeil-Janssen Pharmaceuticals voluntarily recalls one lot of RISPERDAL Tablets and one lot of Risperidone Tablets (JNJ) 66.37 +0.05 : The recalls stem from two consumer reports of an uncharacteristic odor thought to be caused by trace amounts of TBA (2,4,6 tribromoanisole).
1:34PM COMEX Metals Closing Prices (COMDX) : August gold gained $8.20 to close at $1538.10, July silver ended up 21 cents to $35.77, while July copper ended down 0.2 cents to $4.09.
1:33PM T3 Motion receives total purchase order of $808,000 from South Africa for clean energy vehicles (TTTM) 4.32 -0.23 : Co announced that multiple T3 Series Electric Stand-up Vehicles are deployed for security patrols in South Africa by the South African Police Force and Private Security Agencies. These recent strategic deployments of the ESVs complement the existing number of T3 Series units already deployed by the SAPS; an additional $416,500 order is set to ship incrementally to South Africa throughout the coming year, over and above their initial $391 K demand.
1:26PM Crude testing lows at $91.84; now off $3 to $91.95 (COMDX) :
1:15PM S&P +2.7 cuts Thursday-Friday recovery rally in half (SPY) : The index has extended the slide under the morning range back near the 50% retracement of the Thur-Fri rebound near 1268.94 (pullback low thus far 1270.03). The 62% retrace is at 1266. An intraday push back through 1273/1274 is needed to improve the pattern off the early high.
1:01PM PostRock Energy elected Terry W. Carter as interim President and CEO (PSTR) 5.27 0.00 : Co announced that its Board has elected Terry W. Carter as Interim President and CEO. Mr. Carter has already begun work at the co and will assume his titles and a seat on the Board of Directors upon Mr. Lawler's departure. He and the Board hope to make his position permanent within 60 days.
12:58PM Relative Sector Weakness (TECHX) : Sectors that have underperformed the S&P during the slide off morning highs include: Reg Bank KRE, Semi SMH, Materials XLB, Disk Drive, Gold Miners GDX, Solar TAN.
12:54PM Further slippage off morning highs for stock indices, Nasdaq Comp -2.8 back in the red -- Dow +41, S&P +3.5 (SPY) :
12:38PM Cedar Fair: Q Investments responds to Cedar Fair's claim that Q Investments latest action is "a waste of unitholders' resources" (FUN) 18.35 -0.15 : Q Investments says "Kinzel and the Board claim Q Investments' actions are costing unitholders $3 mln. However, Kinzel and this Board have spent this $3 mln to deny unitholders the rights they have clearly communicated they want. It is Mr. Kinzel who is wasting unitholder money. Further, if unitholders viewed Q Investments' actions and proposals as a costly waste of time, why do they keep overwhelmingly supporting them? We wonder how someone like Mr. Kinzel, who has now been proven wrong so often, can continue to exude such self righteous confidence with a straight face. Q Investments will continue to fight to get unitholders the right to nominate directors to the Board, and it is confident that unitholders will win this fight just as they have in the past, and that all unitholders will be better off as a result."
12:36PM Stock indices slip under morning ranges in midday trade -- Dow +51, S&P +4.4, Nasdaq Comp +0.7 (SPY) : The S&P has pulled back to the 38% retracement of the Thur-Fri rally at 1271 while the underperforming Nasdaq Comp reached back near unch and the 50% retracement at 2624/2623.
12:30PM Seattle Genetics announced today that Eric L. Dobmeier has been promoted to the newly created position of COO (SGEN) 19.43 -0.12 :
12:02PM Celgene reports Phase II data evaluating clinical benefit of REVLIMID; study reports 91% overall response rate and 65% complete remission rate (CELG) 58.82 +0.99 : Co announced that clinical data from a Phase II study evaluating the combination regimen ofREVLIMID plus rituximab in untreated, advanced stage, indolent B-cell non-Hodgkin's lymphomas. The results of this study have encouraged plans for a multi-national, phase III trial investigating the R2 combination compared to standard chemoimmunotherapy regimens in newly diagnosed FL. This trial is designed to validate the concept of using REVLIMID to enhance ADCC in patients being treated with rituximab.
11:39AM Airline Index -XAL- extends to new session high of 41.52, this week's high is at 41.61 (TECHX) : UAL +4.9%, ALK +2.8%, LUV +1.8%, SKYW +1.3%, RJET +5.1%, JBLU +2.8%, LCC +3.4%, AMR +2.3%, DAL +3.6%, TAM +3.5%, CPA +2.4%, GOL +1.1%, RYAAY +1.8%.
11:33AM McDonald's puts together minor upside extension to 82.60, hovering modestly under its May/52-wk close high at 82.72 (MCD) 82.58 +0.77 : It 52-wk intraday high from May comes in at 83.08.
11:30AM American Water increased its quarterly cash dividend payment by five percent from $0.22 to $0.23 per share (AWK) 29.00 +0.22 :
11:26AM Panera Bread sets fresh baked session high of 120.02 (PNRA) 119.95 +1.70 : Note that its 50 ema and this week's recovery high come into play at 120.15/120.39.
11:03AM Under Armour strong run thus far pauses near this week's six week high at 69.90 -- session high 69.83 (UA) 69.51 +1.49 :
11:02AM Vimicro promotes Yundong (Raymond) Zhang to CTO, Jun Zhu to Senior Vice President, and Shuhua (Yvonne) Yang to Acting CFO effective June 15 (VIMC) 2.16 -0.05 : Yang, Financial Controller of the Company, has been promoted to Acting CFO. She replaces Jack Guo, who recently left the Company due to personal reasons.
11:01AM Zebra Tech joins the Navis STAR Technology alliance (ZBRA) 40.41 -0.09 : The alliance allows Navis to develop fully integrated solutions utilizing Zebra's WhereNet hardware, Wheretags, Whereport, and middleware for use in marine ports and terminals.
11:00AM Financial Select Sector edges to minor new high of 14.95, holding just under Wed gap at 14.96/15.02 (XLF) 14.92 +0.17 :
10:51AM lululemon athletica notches new session high, hovering below its June peak from Wed and its 50 day sma at 93.59/93.67 -- session high 93.20 (LULU) 93.15 +2.17 :
10:48AM Goldman Sachs displays some relative strength as it makes a move to modest gap up highs through the $138.50 area to probe its recent high of $138.95 (GS) 138.64 +2.56 :
10:48AM Yuhe International: NASDAQ confirms that trading was halted in Yuhe International for 'additional information requested' from the company (YUII) 1.21 -0.75 : Trading will remain halted until Yuhe International, Inc. has fully satisfied NASDAQ's request for additional information.
10:43AM Corn futures hold gains after trading 1.4% higher overnight to $7.11/bushel; in current trade, corn is up 1.2% at $7.09/bu (COMDX) : Wheat is 0.8% higher at $6.79/bu and soybeans are down 0.2% at $13.48/bu.
10:36AM Tianyin Pharma discusses non-cash non-operational financial impact from warrants (TPI) 1.43 +0.01 : Co previosly disclosed that under ASC 815-40-15, its accounting treatment of the Series A and B warrants from July 1, 2009 until December 31, 2010 is subject to revisions. Due to the presence of certain anti-dilutive (down round protection) clauses, these financial instruments have been re-categorized as liabilities (prior equity)... Co calculated the non-cash impact for the FY10 and the first two quarters FY11. The analysis indicated that non-cash impact from the warrants for fiscal year 2010 ending June 30, 2010 was a loss of ($0.16) mln, or (1.07%) to pretax net income of $14.7 mln; non-cash impact from the warrants for the first two quarters of fiscal year 2011 was a gain of $1.28 mln, or 12.9% to net income for the first two quarters of fiscal year 2011 of $9.9 mln... Management and the Board of Directors discussed this matter with the principal accountants and decided to amend select reporting periods including the comparative prior year period in these filings to reflect the non-cash, non-operational financial impact from the reclassification of the Warrants. Co will also make corresponding revisions to its financial statements for the fiscal year ended June 30, 2010 in the Form 10-K for the fiscal year ended June 30, 2011.
10:30AM Alliance Resource confirmed subsidiary has no intention to longwall mine underneath historic site (ARLP) 70.20 +0.05 : Co confirmed that its wholly-owned subsidiary Penn Ridge has no intention to longwall mine under any part of a property identified as an endangered site by the National Trust for Historic Preservation... During a news conference held yesterday, Walter Gallas, regional director of the National Trust, claimed that the Isaac Manchester Farm, located near Avella, Pennsylvania, was endangered due to proposed longwall mining operations by Penn Ridge beneath the farm. On May 25, 2011, Gallas contacted Penn Ridge and was informed that the company has no plans to longwall mine beneath the 400-acre farm. In fact, Penn Ridge has not applied for a longwall permit to mine underneath any part of the farm and stands by its previous statement to Gallas that it has no plans to conduct longwall mining operations underneath the site.
10:25AM KBW Regional Bank displays relative strength, tests/pauses near its 200 sma at 25.08 -- session high 25.08 (KRE) 25.09 +0.50 : BOH, CVBF, FMER, FULT, MBFI, ONB, PACW, SBNY, SIVB, UMPQ.
10:22AM Stock indices slipping back modestly after minor new post LEI highs for Dow +91, S&P +9.4 (SPY) : Nasdaq Comp +12 has lagged this morning and did not confirm the new post-data high amid Semi SMH -0.4% (INTC -0.6%) weakness with AAPL -0.7%, GOOG -0.8%, CSCO -0.6%, DELL -0.2% also underperforming.
10:15AM Lions Gate Entertainment to expand its regional operations in Hong Kong and reduce its presence in Australia (LGF) 6.30 +0.05 : Co confirmed that Tim Stuart, Vice President Asia Pacific Sales, left the Company effective June 10 as Lionsgate looks to expand its regional operations in Hong Kong and reduce its presence in Australia. The company will seek to hire a Hong Kong-based senior distribution executive within the coming months. In the interim, Wendy Reeds, Vice President International & Home Entertainment Sales, will manage sales for Japan and South Korea. Jenny Suen, Sales Director, based in Hong Kong, will oversee sales for the balance of continental Asia.
10:06AM Research In Motion: After meeting resistance off of the big $30.00 level early on, stock sinks to fresh gap down lows in 5-yr low territory (RIMM) 28.83 -6.48 :
10:01AM Goodrich selected to supply wheels and carbon brakes on Saudi Arabian Airlines' fleet of 12 new Boeing (BA) 777-300ER aircraft (GR) 92.50 +1.73 : Co says Saudi Arabian's first 777-300ER aircraft is scheduled to be delivered in January 2012.
10:01AM Stock indices pop on better than expected LEI, Dow +107 and S&P +12 set new highs, Nasdaq +15 (SPY) :
10:01AM Gold, silver continue upward move as dollar notches new lows (COMDX) :
* Gold now up $10.60 to $1540.60. * Silver higher by 33 cents to $35.88.
9:59AM Semiconductor Hldrs hovering just above yesterday's low and its March low at 32.29/32.32 (SMH) 32.35 -0.18 :
9:57AM Primo Water announced the pricing of an underwritten public offering of 6 mln shares of common stock at $11.26 (PRMW) 13.11 +1.85 : Co announced the pricing of an underwritten public offering of 6 mln shares of common stock, consisting of 3,421,369 shares to be sold by Primo Water and 2,578,631 shares to be sold by certain selling stockholders, at a price to the public of $11.26 per share. The net proceeds to Primo Water, after underwriting discounts and commissions and estimated offering expenses, are expected to be ~$36.1 mln. Primo Water intends to use the net proceeds received by it from the offering to repay all outstanding borrowings under its revolving credit facility and for working capital and general corporate purposes, including establishing new store locations for its water bottle exchange and refill vending services. Stifel Nicolaus Weisel is acting as sole book-running manager for the offering, and BB&T Capital Markets, Janney Montgomery Scott and Signal Hill are acting as co-managers.
9:57AM Stock indices see little pressure develop after weaker sentiment data -- Dow +86, S&P +9, Nasdaq +12 (SPY) :
9:55AM Stock indices stall at first level resistances (SPY) : Highlighted first level resistances at 1277/1279 S&P (session high 1279), 12055/12066 Dow (session high 12062) and 2639/2648 Nasdaq Comp (session high 2648). The indices have paused but overall pressure has remained relatively limited thus far with Nasdaq slightly underperforming amid Semi SMH -0.4% weakness. Watching INTC for a read on this group as its hovers near its 200 ema/range floor after a minor morning penetration.
9:54AM Strong start for stock indices pauses in early trade near first level resistance (SPY) : Highlighted first level resistances at 1277/1279 S&P (session high 1279), 12055/12066 Dow (session high 12062) and 2639/2648 Nasdaq Comp (session high 2648). The indices have paused but overall pressure has remained relatively limited thus far with Nasdaq slightly underperforming amid Semi SMH -0.4% weakness. Watching INTC for a read on this group as its hovers near its 200 ema/range floor after a minor morning penetration.
9:54AM Strong start for stock indices pauses in early trade near first level resistance (SPY) : Highlighted first level resistances at 1277/1279 S&P (session high 1279), 12055/12066 Dow (session high 12062) and 2639/2648 Nasdaq Comp (session high 2648). The indices have paused but overall pressure has remained relatively limited thus far with Nasdaq slightly underperforming amid Semi SMH -0.4% weakness. Watching INTC for a read on this group as its hovers near its 200 ema/range floor after a minor morning penetration.
9:54AM Strong start for stock indices pauses in early trade near first level resistance (SPY) : Highlighted first level resistances at 1277/1279 S&P (session high 1279), 12055/12066 Dow (session high 12062) and 2639/2648 Nasdaq Comp (session high 2648). The indices have paused but overall pressure has remained relatively limited thus far with Nasdaq slightly underperforming amid Semi SMH -0.4% weakness. Watching INTC for a read on this group as its hovers near its 200 ema/range floor after a minor morning penetration.
9:54AM Strong start for stock indices pauses in early trade near first level resistance (SPY) : Highlighted first level resistances at 1277/1279 S&P (session high 1279), 12055/12066 Dow (session high 12062) and 2639/2648 Nasdaq Comp (session high 2648). The indices have paused but overall pressure has remained relatively limited thus far with Nasdaq slightly underperforming amid Semi SMH -0.4% weakness. Watching INTC for a read on this group as its hovers near its 200 ema/range floor after a minor morning penetration.
9:51AM Opening Point Gainers/Losers (TECHX) : Point Gainers: MA (+4.45), FLS (+3.61), AMZN (+2.45), CTSH (+2.86), VFC (+2.38), BLK (+2.41), BIIB (+2.27), GS (+2.14), SA (+2.11), EQIX (+2.07), IBM (+2.09)
Point Losers: RIMM (-6.28), LPS (-2.84), TVIX (-1.99), LFC (-1.57), MIND (-1.49), PANL (-1.58), LFC (-1.58), SINA (-1.70), PNC (-1.32), CF (-1.26), IPGP (-1.33), MCO (-1.12)
9:47AM Intel on defensive but holding slightly above its six day trading range low and 200 ema at 21.27/21.23 -- session low 21.30 (INTC) 21.31 -0.11 :
9:46AM Bankrate IPO opens for trading at $14.04... RATE IPO priced at $15, the mid-point of its expected range of $14-$16 (RATE) 14.00 -1.00 :
9:46AM Gold, silver extend move to upside (COMDX) :
* Gold now higher by $5.60 to $1535.40. * Silver up 25 cents to $35.81.
9:44AM Gold, silver break into positive territory (COMDX) :
9:38AM Energy XLE, Oil Service OIH slip back into the red (TECHX) :
9:37AM Semiconductor Hldrs ETF slides back near unch after positive start (SMH) 32.57 +0.05 :
9:35AM Impressive start for S&P +11 quickly brings 1277/1279 resistance barrier into play with little pressure seen thus far-- session high 1279 (SPY) : This marks chart congestion, its 50 ema/sma -hourly- and the trendline off the June highs.
9:33AM PPG Industries announced before the open that Bankruptcy Court issued ruling on Pittsburgh Corning Reorganization Plan (PPG) 85.10 +0.99 : The United States Bankruptcy Court for the Western District of Pennsylvania issued a decision denying confirmation of the most recent amended plan of reorganization, filed on Jan. 29, 2009, for Pittsburgh Corning Corp. after normal business hours last evening. Although denying confirmation, the decision viewed favorably many features of the plan. The co is studying the bankruptcy court's decision and is encouraged that the bankruptcy court has scheduled a status conference for July 20, 2011, to consider additional steps to be taken in the case, including potential modifications to the plan in accordance with the bankruptcy court's opinion. PPG has owned 50 percent of Pittsburgh Corning since 1937.
9:31AM Volkswagen AG reports 14.6% rise in global vehicle deliveries from January to May (VLKAY) 34.13 +1.07 : The Volkswagen Group reported a further rise in global deliveries from January to May this year. For the first time, deliveries to customers during this period were running at 3.37 mln units or +14.6% YoY. The number of vehicles sold in the North America region grew 19.7% in the period to May to 218,500 units, of which 172,400 vehicles were delivered in the U.S. market. Overall, the Group brands delivered 1.56 mln vehicles, or +9.6% YoY throughout Europe in the first five months.
9:27AM Mitcham Ind priced its public offering of 2 mln shares of its common stock at a price to the public of $14.50 (MIND) 15.99 : Co announced that it has priced an underwritten public offering of 2 mln shares of its common stock at a price to the public of $14.50 per share, for gross proceeds of ~$29.0 mln. Mitcham intends to use the net proceeds from this offering to repay borrowings under its revolving credit facility, to purchase seismic lease pool equipment and for general corporate purposes. Global Hunter Securities, is acting as sole book-running manager, and Ladenburg Thalmann & Co. is acting as the co-manager.
9:25AM Newcastle Investment declares quarterly dividend of $0.10; provides recent investment activity (NCT) 4.40 : Co announces its Board has declared a quarterly dividend of $0.10 per common share for the second quarter of 2011. The dividend is payable on July 29, 2011 to shareholders of record on July 5, 2011. The Board also declared dividends on the co's Series B, Series C and Series D preferred stock for the period beginning May 1, 2011 and ending July 30, 2011. The dividends are payable on July 29, 2011 to shareholders of record on July 5, 2011. The co will pay total dividends of $0.609375, $0.503125 and $0.523438 per share on the 9.75% Series B, 8.05% Series C and 8.375% Series D preferred stock, respectively. Since the May 6, 2011 (Q1 EPS release), the co has invested an additional $59 mln of unrestricted cash, resulting in total unrestricted cash investments since March 31, 2011 of $122 mln at an expected average return of 18%.
9:10AM On The Wires (WIRES) :
* Caterpillar (CAT) announced plans to significantly increase its manufacturing capabilities and capacity for hydraulic excavators that will be produced at a facility now under construction in Victoria, Texas. * Goodrich Corporation (GR) the prime contractor for the ORS-1 satellite has successfully completed all of the major program milestones and the ORS-1 satellite has been delivered to NASA's Wallops Island Flight Facility at the Mid-Atlantic Regional Spaceport in Virginia. * Diageo (DEO) and Southern Wine & Spirits of America announced agreements that appoint Southern Wine and Spirits the new National Broker for Diageo Wine and Spirits in control states. * Alexco Resource (AXU) reports grid power was restored to the Keno Hill Silver District as of June 15th. Mining operations at Bellekeno have resumed underground. Alexco currently anticipates the mill will have returned to pre-outage production levels within the next few days.
9:05AM K-V Pharmaceutical announces divestiture of generics business to Zydus for $60 mln (KV.A) 2.38 : Co announced that it has entered into a definitive agreement to divest Nesher Pharmaceuticals, its generics subsidiary, and the co's generic business and assets to Zydus Pharma for ~$60 mln in cash. The transaction is estimated to close during the second quarter of KV's 2012 fiscal year.
9:02AM Navios Maritime Acquisition announces acquisition of two MR2 product tankers with employment (NNA) 3.52 : Co announces it has agreed to acquire two 50,000 dwt MR2 product tankers built in 2009. The vessels are employed under long-term charter-out contracts with a remaining term of three years. The rates are $22,490 net per day for the first year and $21,503 net per day for the remaining charter out period. Delivery is expected in July 2011. The two vessels will generate ~$11.2 mln annual EBITDA and $34.2 mln of aggregate EBITDA assuming operating expense approximating current operating costs and 360 revenue days per year. The aggregate purchase price for the two new vessels is ~$84.8 mln, to be paid in cash. Co has contracted 98.0% and 63.3% of its available days on a charter-out basis for 2011 and 2012, respectively.
9:01AM Cleveland Biolabs to raise $23.5 mln in registered direct offering; securities will be sold in units at a price of $4.00 per unit (CBLI) 4.45 : Co announced it has received commitments from certain institutional and accredited investors to purchase an aggregate of $23.5 mln of the co's securities in a registered direct offering. The securities will be sold in units at a price of $4.00 per unit, with each unit consisting of one share of common stock, a Series E Warrant to purchase 0.25 shares of common stock and a Series F Warrant to purchase 0.25 shares of common stock. Co intends to use the net proceeds from this offering for general corporate purposes, including, but not limited to, the funding of the continued development of the co's existing drug portfolio and general working capital. Rodman & Renshaw acted as the exclusive placement agent for this transaction, and Wunderlich acted as an advisor.
9:01AM Merit Medical priced a 4.8 mln share common stock offering at $16.75/share (MMSI) 18.57 :
9:01AM Shaw Group awarded contract to operate sediment processing facility for General Electric; named administrator for Wisconsin's Focus on Energy Program (SHAW) 32.04 : Co announces two contract wins. Its Environmental & Infrastructure Group has been awarded a contract to operate the sediment processing facility for the second phase of the General Electric's (GE) Hudson River dredging project. The undisclosed value of the contract will be included in Shaw's Environmental & Infrastructure segment's backlog of unfilled orders in 3Q11. Co also announces it has been awarded a four-year contract by the Wisconsin Statewide Energy Efficiency and Renewable Administration to serve as program administrator for Focus on Energy, an energy efficiency and renewable energy program for eligible residents and businesses. The undisclosed value of the contract will be included in Shaw's Environmental & Infrastructure segment's backlog of unfilled orders in 3Q11.
8:47AM Graham Packaging merger agreement with Silgan Holdings (SLGN) has been terminated; will be acuqired by Reynolds Group for $25.50 per share (GRM) 25.73 : Silgan Holdings (SLGN) announced that its period to negotiate with Graham Packaging (GRM) to make adjustments to its merger agreement has expired and the parties did not reach agreement and the agreement has been terminated. Accordingly, SLGN is entitled to a termination fee of $39.5 mln pursuant to the merger agreement. Additionally, GRM announced the signing of a definitive merger agreement, and an amendment thereto, under which GRM will be acquired by Reynolds Group Holdings in an all-cash transaction for $25.50 per share, or a total of ~$4.5 bln including assumed indebtedness. The offer was increased from $25.00 per share
8:35AM On The Wires (WIRES) :
* Boeing (BA) delivered to GE Capital Aviation Services its 275th Next-Generation 737 yesterday. * Medidata Solutions (MDSO) announced that Synteract has attained the study build accreditation in Medidata's channel partner program. * ARM (ARMH) announced that it has acquired Obsidian Software, a market leader in verification and validation used in the design of increasingly complex processors. * Pacific Ethanol (PEIX) issued a statement from its CEO, Neil Koehler, on yesterday's Senate votes regarding ethanol policy. Koehler stated, "Reforming the Volumetric Ethanol Excise Tax Credit would have virtually no impact on Pacific Ethanol's revenue and margins because, with today's production economics, ethanol prices are cheaper than gasoline even without the tax credit."
8:32AM GenMark Diagnostics priced a ~7.06 mln share common stock offering at $4.25/share (GNMK) 4.62 :
8:32AM Harbin Electric responds to Citron Research's allegations concerning Mr. Yang Tianfu; reaffirms 'Going Private' proposal at $24.00 Per Share (HRBN) 6.98 : Co responded to allegations made by Citron Research in a posting on CitronResearch.com dated June 16, 2011 as "yet another attempt to drive its stock price down that is based on factually incorrect as well as out-of- context information. Mr. Yang Tianfu's brother, Mr. Yang Tianli is not, and has never been, a member of the Board of Directors of Harbin Electric. There has never been a Civil Settlement. The case was settled privately approximately 10 years after the alleged facts with no admission of guilt by Mr. Yang Tianfu or Mr. Yang Tianli. The sole involvement of Mr. Yang Tianfu, in the referenced settlement agreement was to provide financial assistance to his brother, Yang Tianli, to settle a dispute to which neither Mr. Yang Tianfu himself nor Harbin Electric was a party. Mr. Yang Tianfu and the Company reserve the right to bring legal actions against Citron Research for these erroneous allegations"... "The Company has recently reconciled its PRC tax filings with its financial statements reported in the SEC filings for fiscal year 2009 and has not found any inconsistency in any material respect, and stands by the accuracy of its historical filings with the SEC. Finally, through discussions with China Development Bank Corporation Hong Kong Branch held on June 17, 2011 in Hong Kong, CDB confirmed that it would abide the Facility Agreement dated as of June 9, 2011 to provide a $400 million term loan to fund the proposed purchase of all of the outstanding shares of Common Stock of Harbin Electric by Mr. Yang Tianfu, Abax and their respective affiliates, subject to certain conditions."
8:31AM Virgin Media repurchases 325K shares of common stock at $29.66-31.00 (VMED) 29.88 :
8:31AM Dangdang announces senior management stock purchase plan (DANG) 11.26 : Co announces that Ms. Peggy Yu Yu, co's co-founder and executive chairwoman and Guoqing Li, Dangdang's co-founder, director and chief executive officer, intend to use their personal funds to purchase up to an aggregate total of $2 million worth of the Company's American depositary shares in open market transactions within the next six months.
8:31AM QKL Stores announced that COO Mr. Alan Stewart has resigned effective immediately to pursue other opportunities (QKLS) 1.61 : Co's Assistant Chief Operating Officer, Ms. Xishuang Fan has been promoted to the role of Chief Operating Officer, and will be responsible for the Company's operations.
8:24AM On The Wires (WIRES) :
* Watson Pharmaceuticals (WPI) confirmed that the U.S. District Court for the District of Nevada denied Duramed Pharmaceuticals, a unit of Teva (TEVA), request for a preliminary injunction and request for a temporary restraining order preventing Watson's launch of generic SEASONIQUE and ethinyl estradiol. The co is evaluating plans to launch the contraceptive product. * Louisiana-Pacific (LPX) announced its subsidiary, LP South America, acquired the remaining 25% equity interest in LP-Brasil OSB Industria e Comercio S.A. from Masisa do Brasil, a subsidiary of Masisa S.A. in Chile. LPSA's acquisition of the remaining 25% interest was completed for a purchase price of $24 mln. * Alcoa (AA) and VSMPO-AVISMA announced they have signed a Memorandum of Understanding to cooperate in the design and production of innovative light alloy die forgings and extrusions for the commercial transportation market. * QLogic (QLGC) announced it has been selected to provide its 12000 Series switches and 7300 Series adapters for the Department of Energy National Nuclear Security Administration's Tri-Laboratory Linux Capacity Cluster 2.
8:05AM Progressive approved a new authorization for repurchase up to 75 mln of its common shares, in addition to the approximately 12.5 mln shares that remained under its June 2009 authorization as of May 31, 2011 (PGR) 20.05 :
8:05AM PSS World Med authorizes purchase of 5% of common shares (PSSI) 27.29 : Co announces that, at its regularly scheduled June meeting, its Board of Directors authorized the purchase of up to 5% of its total common stock. This is in addition to any shares remaining under existing authorizations previously enacted by its Board of Directors.
8:03AM Delta Petroleum to sell remaining non-core assets for $43.2 mln and provides an update on the 2C well (DPTR) 0.56 : Co announces that it has entered into a Purchase and Sale Agreement with Wapiti Oil & Gas to sell its remaining non-operated interests in various non-core assets for $43.2 mln. The transaction is expected to close by the end of June.
8:02AM United Capital intends to voluntarily delist and deregister its common stock and tender offer (AFP) 27.34 : Co announced that its Board of Directors has approved the voluntarily delisting of its common stock from the NYSE Amex, and the voluntarily deregistration of its common stock under the Securities Exchange Act of 1934, as amended and will cease filing reports with the SEC. United Capital has decided to voluntarily delist and deregister its common stock because its shares are currently held by less than 300 record holders and are thinly traded.
8:00AM Chipmos Technology reports May revenue +8.1% MoM at $57.0 mln (+6.0% YoY) (IMOS) 8.89 :
7:43AM China Sunergy lowers Q2 and FY shipment and GM guidance (CSUN) 1.81 : Co annouces it expects its solar module shipments in the second quarter to be between 100-110 MW, compared to the co's previous guidance of between 120-130MW. The co delayed some of its shipments to July, in line with the co's credit control policy, as a result of delays in the approval of project loans to some of co's customers in Europe. For FY11, the co now expects its solar module shipments to be between 580-600MW, compared to the previous guidance of between 670-690MW. The more conservative guidance reflects that financing delays are becoming more common and may even result in some order cancellations, and therefore the co may not be able to complete as many transactions as it had forecasted, despite robust demand. For the Q2, the co expects its overall gross margin to be ~1% vs previous guidance of between 7.5-8.5%; gross margin relating to the co's in-house module production is expected to be ~3% vs 12-13% previous guidance. The lowered margin guidance reflects a number of short-term factors, including a higher proportion of higher-cost inventory in projected second quarter shipments, an increase in non-silicon costs due to an increase in the cost of silver paste, and a faster than expected drop in solar module average selling price.
7:35AM On The Wires (WIRES) :
* T3 Motion (TTTM) announced that an order for multiple T3 Series ESVs valuing $100K has been placed by Singapore GP Pte. * Groupe d'Etude des Lymphomes de l'Adulte and Celgene (CELG) announced a collaboration to conduct an international randomized study to evaluate the therapeutic potential of the REVLIMID/rituximab combination regimen in patients with newly diagnosed follicular lymphoma.
7:30AM Watson Pharm's Nabumetone tablets receive FDA approval (WPI) 63.82 : Co announces that its subsidiary, Watson Labs has received approval from the FDA for Nabumetone Tablets USP, 500 mg and 750 mg. Co expects to launch the product shortly. Nabumetone had total U.S. sales of $58 mln for the twelve months ending April 30, 2011, according to IMS Health. Nabumetone is indicated for the relief of signs and symptoms of osteoarthritis and rheumatoid arthritis.
7:08AM In overnight trade, crude oil futures traded to $92.12, a fresh +3 month low; it has since bounced off those lows and is currently down $1.24 to $93.71 (COMDX) :
7:06AM Regeneron Pharms says shares are halted today ahead of FDA meeting to discuss its BLA for EYLEA (REGN) 56.72 :
7:04AM Youku.com discusses original content strategy (YOKU) 26.25 : Co laid out its plan to grow Youku Original into a full-fledged platform for producing, distributing, and monetizing compelling original content in a press conference for two upcoming productions at the Shanghai International Film Festival today. Youku Original is a key part of Youku's content strategy, which pursues a combination of licensed professionally produced content, in-house productions from Youku Original, and user-generated content. "Our success over the past year tells us that Youku Original can serve as a platform for young creatives and established talents alike. Moving forward, Youku Original will continue to be more closely integrated with the entire value chain, encompassing the production, distribution, and monetization of original content."
7:02AM Fuel-Tech was awarded a $2.6 million contract to supply equipment and engineering services for an ASCR (FTEK) 7.18 :
7:02AM Lydall entered into an agreement with Bank of America for a 5-year, $35 million revolving credit facility (LDL) 10.45 :
7:01AM A-Power Energy reports Robert Leckie resigned from its Board as a result of concerns that his views on process and best practices were not necessarily shared throughout the co (APWR) 2.25 : Co announced that Mr. Robert B. Leckie resigned from A-Power's Board of Directors on June 14, 2011. Mr. Leckie resigned as a result of concerns that his views on process and best practices were not necessarily shared throughout the Company, but Mr. Leckie has confirmed to the co that his resignation was not prompted by any disagreement with A-Power on any matter relating to the co's operations, policies, or practices.
7:00AM Spreadtrum Comms announces share repurchase program of up to $100 mln and mgmt's intention to repurchase stock (SPRD) 12.99 : Co's Board authorizes a a share repurchase program under which the Company may repurchase up to $100 mln of its ADSs pursuant to a Rule 10b5-1 repurchase plan. The share repurchase program will be funded with the co's cash on hand. Members of the co's management team also intend to purchase the co's pany's outstanding shares through the open market.
6:48AM Vivus reports positive results from Avanafil post-prostatectomy study featured at Cancer Survivorship Meeting (VVUS) 7.84 : Co announces positive results from REVIVE-RP, a phase 3 clinical trial evaluating the safety and efficacy of the investigational drug avanafil for the treatment of erectile dysfunction. Avanafil met all primary endpoints by demonstrating improvements from baseline in erectile function as measured by the Sexual Encounter Profile and improvement in the erectile function domain of International Index of Erectile Function. The study also indicated a favorable safety profile and successful intercourse was observed as early as 15 minutes after dosing, without any restrictions on food or alcohol.
6:19AM On The Wires (WIRES) :
* Acacia Research Corporation (ACTG) announced that a subsidiary has acquired a patent for data compression technology. Co also announced that its DRAM Memory Technologies and DRAM Technologies subsidiaries have licensed patents to Nanya Technology. * Hyperdynamics (HDY) announced that its Board of Directors has appointed Deloitte & Touche as the co's new independent registered public accounting firm.
6:02AM Amdocs signs a definitive agreement to acquire Bridgewater Systems for ~CAD211 mln, does not expect a material impact from the acquisition on FY11 or FY12 non-GAAP EPS (DOX) 29.21 : Co announces announced it has entered into a definitive agreement to acquire all of Bridgewater Systems' outstanding common shares for CAD8.20 per share in cash pursuant to a plan of arrangement that is subject to Bridgewater's shareholder approval and customary closing conditions, including certain regulatory approvals. The transaction is valued at ~CAD211 mln, or CAD128 mln net of Bridgewater's cash as of March 31, 2011. Co does not expect a material impact from the acquisition of Bridgewater, on fiscal year 2011 or fiscal year 2012 non-GAAP earnings per share, which excludes acquisition related costs and equity-based compensation expense, net of related tax effects. The impact on GAAP results will not be known until after Amdocs completes the purchase price accounting for the acquisition. Co may incur acquisition-related expense in fiscal years 2011 and 2012 to account for certain costs related to the acquisition.
6:01AM China Century Dragon Media receives NYSE Amex Panel Discussion; denies co's request request for continued listing (CDM) 4.80 : The co intends to appeal the Panel's determination to the Exchange's full Committee on Securities; however, the co's stock will remain suspended on the Exchange pending the appeal. In the event the co's appeal is not successful, the co's securities would be delisted from the Exchange. There can be no assurance that the co's appeal will be successful.
6:00AM Acorn Intl Board recommends rejection of Bireme's tender offer of $6.00 per ADS (ATV) 5.60 : Among co's consideration, the Board highlights: book value per share, as of December 31, 2010, is ~ $2.04 per Ordinary Share (or $6.13 per ADS). Co has strong cash reserves. As of December 31, 2010, co had cash and cash equivalents of $91.7 mln and no long term debt. This unlevered cash represents ~$1.03 per Ordinary Share, or $3.08 per ADS.
5:49AM On The Wires (WIRES) :
* Omnicom Group (OMC) has formed Omnicom Greater China, a new business unit with executive headquarters in Beijing. Establishing a dedicated business unit for Greater China will support the group's rapidly expanding interests in Mainland China, Hong Kong, Macau and Taiwan. * CTC Media (CTCM) announced the start of a joint campaign with Vkontakte which aims to combat illegal content and promote Videomore, CTC Media's own licensed player. * JinkoSolar Holding (JKS) announced the launch of a new research and development center to focus on improving conversion efficiency of solar cells and next generation photovoltaic technology.
4:06AM Inovio Pharma unit VGX Animal Health DNA reports vaccine for dogs could reduce tumor growth and increase survival (INO) : Co announces that its subsidiary VGX Animal Health has achieved strong T cell responses from VAH-5000D, its DNA vaccine encoding telomerase reverse transcriptase for the treatment of dogs with cancer. This preclinical data was presented. In mouse experiments, vaccinations with a highly optimized TERT DNA vaccine delivered by electroporation induced strong TERT-specific T cell immune responses. Furthermore, vaccination with the TERT vaccine delayed the growth of implanted tumors in mice and increased the survival rate of mice with tumors.
2:53AM Allos Therapeutics presents data suggesting treatment with FOLOTYN reverses trend of progressive resistance observed in patients with drug-resistant relapsed or refractory peripheral T-Cell Lymphoma (ALTH) 2.01 : Co reports results from a retrospective analysis of data from the co's pivotal PROPEL trial which suggested that treatment with single-agent FOLOTYN may result in increased response rates and progression-free survival relative to the immediate prior line of therapy in patients with relapsed or refractory peripheral T-cell lymphoma. In patients who received three or more lines of therapy prior to enrolling in PROPEL, response rates decreased from 56% to 30%; median progression-free survival decreased from 213.5 days to 95 days. In patients who received two or more lines of therapy prior to enrolling in PROPEL, response rates decreased from 38% to 29%; median progression-free survival decreased from 144 days to 89.5 days. Following treatment with FOLOTYN, response rates and progression-free survival increased relative to the previous line of therapy: In patients who received three or more prior therapies, response rates increased from 30% to 40%; median progression-free survival increased from 95 days to 134 days. In patients who received two or more prior therapies, response rates increased from 29% to 40%; median progression-free survival increased from 89.5 days to 119 days.
1:39AM Cell Therapeutics reports publication indicating Pixantrone in combination with Fludarabine, Dexamethasone and Rituximab produces high rates of complete remissions in patients with relapsed or refractory indolent Non-Hodgkins Lymphoma (CTIC) 1.91 : Co announces the the publication of results posted in the online journal of Cancer of a Phase I-II study that evaluated the safety and efficacy of pixantrone when used in combination with fludarabine, dexamethasone and rituximab replacing mitoxantrone in the standard FND-R regimen with FPD-R among 28 patients with relapsed or refractory indolent non-Hodgkin's lymphoma. The Phase I-II study results showed that the FPD-R regimen was highly active in patients with relapsed or refractory INHL and produced complete responses in 63% of patients with an overall response rate of 89%. Responses were long lasting for a median of 23 months with the longest responding patient in remission longer than 40 months, with an estimated 92% survival rate at three years. The primary side effects were hematologic with 89% of patients developing grade 3-4 neutropenia, which was managed with growth factor administration. No patient developed congestive heart failure with no grade 3-4 cardiac side effects observed. The authors concluded the FPD-R regimen was well-tolerated and highly active in patients with relapsed or refractory INHL.
1:34AM Seabridge Gold and Royal Gold (RGLD) agree to private placement/royalty partnership in KSM (SA) 25.11 : Co announces that it has reached an agreement with Royal Gold (RGLD) whereby Royal Gold will take down a private placement in SA common shares at a premium to market and SA will grant to Royal Gold an option to acquire a royalty on production from Seabridge's 100% owned KSM project. The private placement in SA is for 1,019,000 common shares at CAD29.44 per share ($30.39), totaling CAD30 mln in cash. The purchase price for the shares is equal to a 15% premium over the weighted average trading price of SA shares on the TSX for the five day trading period ending 2 days prior to the announcement. The option granted to RGLD is to acquire a 1.25% Net Smelter Royalty on all gold and silver production sales from KSM for CAD100 mln.
1:27AM Evercore prices 4,775,632 shares of its Class A common stock at $32.50 per share (EVR) 33.12 :
1:25AM Central Pacific Financial: US Treasury reduces size of offering and prices 2.85 mln shares of common stock at $12.75; reduced from 5,620,117 shares of the co's common stock held by Treasury (CPF) 12.91 :
1:23AM Celgene receives FDA accelerated approval of ISTODAX as treatment for patients with peripheral T-Cell lymphoma who have received at least one prior therapy (CELG) 57.83 : Co announces that the FDA has granted accelerated approval for its Supplemental New Drug Application for an additional indication for ISTODAX for injection for the treatment of peripheral T-cell lymphoma in patients who have received at least one prior therapy. ISTODAX is also approved for the treatment of cutaneous T-cell lymphoma in patients who have received at least one prior systemic therapy. These indications are based on response rate. Clinical benefit such as improvement in overall survival has not been demonstrated.
1:19AM Bankrate prices 20 mln share IPO at $15.00 per share, at the midpoint of of the $14-16 expected range (RATE) :
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