Market Update: 110622 4:25 pm : The major market averages had hugged the neutral line for most of the session, but after Fed Chairman Bernanke completed a press conference that featured reduced GDP forecast stocks rolled over to log sizable losses.
Stocks were locked into a sideways drift for most of this morning and early afternoon. Participants were generally uninspired by the latest update from Greece -- that the country's prime minister was able to keep his position after a no-confidence vote was held last evening. No updates on the implementation of new austerity measures have been made available, however.
Range bound trade was also the result of uncertainty ahead of the latest FOMC Policy Statement, which indicated that members unanimously voted to keep the fed funds target between 0.00% to 0.25% and that exceptionally low levels are expected for an extended period of time. It was also stated that the Fed still plans to complete its purchase of $600 billion of longer-term Treasuries by the end of this month.
Trade remained reserved in the wake of the statement. Action was also subdued during Fed Chairman Bernanke's press conference, during which he announced that the Fed now believes 2011 GDP will range from 2.7% to 2.9%, down from the range of 3.1% to 3.3% that was announced in April. Additionally, unemployment for 2011 is now expected to range from 8.6% to 8.9%, up from the range of 8.4% to 8.7%. Core PCE inflation for 2011 is now expected to range from 1.5% to 1.8%, up from the range of 1.3% of 1.6% that had been forecasted before.
Stocks didn't react immediately to the Fed's revisions. Rather, participants waited until the final hour of the session to start applying pressure. The ensuing selling effort was steady and left stocks to settle at session lows.
Tech stocks and consumer discretionary stocks collectively made up the day's worst performers. Both sectors fell 0.8%. Financials didn't fare much better; they fell 0.7%. Not even energy stocks or basic materials plays were able to hold their gains. Instead, both sectors fell 0.4%.
FedEx (FDX 91.44, +2.31) eased off of its session high, but still settled with a heady gain. The stock's strength was underpinned by a better-than-expected earnings report. CarMax (KMX 32.66, +2.14) and Jabil Circuit (JBL 19.45, +0.60) also outperformed after their earnings reports proved pleasing. Adobe Systems (ADBE 30.01, -2.00) had an upside surprise of its own, but that was overshadowed by the company's commentary about weak demand in emerging markets.
3:30 pm : Most of the more closely tracked commodities traded with strength this session, although natural gas prices surrendered an early gain to close pit trade with a 1.6% loss at $4.302 per MMBtu. Crude oil prices bounced to $95.41 per barrel for a 1.3% gain with help from a bullish inventory report.
As for precious metals, gold prices gained 0.5% to close at $1553.50 per ounce, but silver turned a fractional loss in the early going into an even more impressive 0.9% gain to close at $36.70 per ounce. The price of both precious metals has pulled back following the close of pit trade, however. DJ30 -30.35 NASDAQ -5.12 SP500 -2.58 NASDAQ Adv/Vol/Dec 1052/1.21 bln/1443 NYSE Adv/Vol/Dec 1546/534 mln/1431
3:00 pm : A recent retreat by stocks into the red has left the major market averages to trade at afternoon lows. Stocks are still above their worst levels of the day, though.
The pullback by the equity market comes amid an upturn by the dollar, which had spent this morning and early afternoon trading flat against a basket of major foreign currencies. The greenback is now up 0.2% against that basket.
Meanwhile, Treasuries have made an upward turn. The move has put the yield on the benchmark 10-year Note back near 3.00%. DJ30 -35.87 NASDAQ -5.62 SP500 -3.22 NASDAQ Adv/Vol/Dec 1023/1.12 bln/1457 NYSE Adv/Vol/Dec 1520/495 mln/1456
2:30 pm : The major equity averages continue to chop along near the neutral line. They are essentially unfazed by what Fed Chairman Bernanke has stated in his press conference. According to Bernanke, GDP for 2011 is now expected to range from 2.7% to 2.9%, which is down from the range of 3.1% to 3.3% that was announced in April. The cut to the Fed's GDP forecast comes after the minutes from the latest FOMC policy statement were posted about two hours ago. In that statement, the Fed made note that it expected the pace of the still sluggish economic recovery to pick up in coming months.
Bernanke's speech has also indicated that 2011 unemployment is now expected to range from 8.6% to 8.9%, up from the range of 8.4% to 8.7%. Core PCE inflation for 2011 is now expected to range from 1.5% to 1.8%, up from the range of 1.3% of 1.6% that had been forecasted before. DJ30 -6.24 NASDAQ +2.06 SP500 +0.26 NASDAQ Adv/Vol/Dec 1214/1.03 bln/1254 NYSE Adv/Vol/Dec 1748/445 mln/1199
2:00 pm : Stocks have made a modest move up from the flat line. Overall gains remain narrow, though.
Energy stocks have successfully stretched to fresh session highs. The sector now sports a 0.7% gain, which has been helped by a run up in oil prices. Oil was last quoted with a 1.5% gain at $95.55 per barrel. Oil services plays like National Oilwell Varco (NOV 73.45, +1.73) and Baker Hughes (BHI 71.76, +1.12) are leading the sector. DJ30 +14.57 NASDAQ +5.09 SP500 +2.11 NASDAQ Adv/Dec 1297/1147 NYSE Adv/Dec 1891/1054
1:30 pm : The Dollar Index has been flat for the entire session. Underlying action has been more interesting, though. Specifically, the greenback is down by about 0.2% against the euro, which was last quoted at $1.440, but up 0.7% against the sterling pound, which was last quoted at $1.611. The dollar is unchanged against the yen, which was recently priced at 80.22 yen per dollar.
Action, or inaction, in the dollar comes after the FOMC opted to keep its target fed funds rate at 0.00% to 0.25%, and expressed its expectation for exceptionally low interest rate levels for an extended period of time. The Fed also continues to expect that the moderate pace of the economic recovery will pick up in coming months. DJ30 +5.30 NASDAQ +3.14 SP500 +1.29 NASDAQ Adv/Vol/Dec 1274/845 mln/1164 NYSE Adv/Vol/Dec 1888/360 mln/1048
1:00 pm : The stock market has wavered moderately in the wake of the latest FOMC Policy Statement, but has generally held to the neutral line.
Overall action has been generally lackluster all session. Traders were given few cues from overseas markets, which seemed to shrug off the unsurprising victory of Greece's prime minister in a no-confidence vote. Participants were also exercising caution ahead of the Fed's latest commentary.
The Fed continues believe that the economic recovery is continuing at a moderate pace, but the rate will pick up over coming quarters. Even though the Fed acknowledged that the current pace is slower than what had been expected, the near-term forecast was not cut, as some had speculated.
Given low resource utilization rates and a subdued outlook for inflation, the FOMC left the federal funds target rate at 0.00% to 0.25%, and is expected to keep the target at exceptionally low levels for an extended period, as it has stated so many times before.
With regard to the Fed's second quantitative easing effort, the Fed is still planning to complete its purchase of $600 billion of longer-term Treasuries by the end of this month.
Stocks had only a muted response to the statement. In turn, they continue to chop along the neutral line. The dollar hasn't done much either, so it too continues to trade flat.
Although the broad market is mired near the unchanged mark, FedEx (FDX 92.09, +2.96) shares have been fired up in response to a stronger-than-expected quarterly report. In contrast, negative commentary from Adobe Systems (ADBE 30.34, -1.67) has overshadowed its upside earnings surprise, prompting the stock to drop to a new 2011 low.
Natural resource plays are finding favor for the second straight session. Both sectors are up 0.5%, which pales in comparison with the 2% advances booked yesterday, but the move is enough to make them today's top performers. DJ30 -1.74 NASDAQ +1.52 SP500 +1.05 NASDAQ Adv/Vol/Dec 1205/775 mln/1210 NYSE Adv/Vol/Dec 1821/325 mln/1102
12:30 pm : The latest FOMC Policy Statement was just posted. According to the statement, the Fed believes that the economic recovery is continuing at a moderate pace, though somewhat more slowly than the FOMC had expected. However, the FOMC expects that the pace of the recovery will pick up over coming quarters. They did not actually trim the forecast, as some had speculated.
Additionally, the FOMC continues to anticipate that economic conditions are likely to warrant exceptionally low levels for the federal funds rate for an extended period of time. As such, the FOMC has kept its target rate at 0.00% to 0.25%. The Fed is still planning to complete its purchase of $600 billion of longer-term Treasuries by the end of this month.
Neither the stock market nor the dollar has shown much of a reaction to the announcement. That has left both to trade flat. DJ30 -17.29 NASDAQ -2.12 SP500 -0.85 NASDAQ Adv/Vol/Dec 1122/694 mln/1279 NYSE Adv/Vol/Dec 1703/290 mln/1200
12:00 pm : A better-than-expected earnings report from FedEx (FDX 91.61, +2.48) has the stock testing its monthly high. The strength of its report has helped bolster buying interest in the rest of the transportation space. In turn, the Dow Jones Transportation Index is up an enviable 0.7%.
Adobe Systems (ADBE 30.06, -1.95) posted its own upside earnings surprise for the latest quarter, but the company's commentary regarding weaker-than-expected demand in some international and emerging markets was viewed as a negative. The stock has dropped to a new 2011 low in response. DJ30 -1.74 NASDAQ +0.18 SP500 +0.36 NASDAQ Adv/Vol/Dec 590/599 mln/1173 NYSE Adv/Vol/Dec 1821/251 mln/1078
11:30 am : The stock market continues to sit narrowly above the neutral line. The cautious positioning comes as participants prepare for the latest FOMC Policy Statement, which is expected to be posted in an hour. The statement carries added importance because of the upcoming expiration of the Fed's second quantitative easing effort, not to mention the ongoing macro headwinds that continue to stymie the pace of the economic recovery.DJ30 +8.67 NASDAQ +2.67 SP500 +1.80 NASDAQ Adv/Vol/Dec 1193/505 mln/1142 NYSE Adv/Vol/Dec 1876/215 mln/990
11:00 am : A recent pickup in buying interest has lifted the major stock averages to session highs. However, overall gains remain very modest in scope.
Financials remain a primary source of support. The sector is sporting a gain of 0.6%, which has been matched only by the energy sector. Energy stocks achieved strong gains in the prior session despite lower oil prices. Oil prices are up solidly to almost $95 per barrel today. DJ30 +12.45 NASDAQ +2.23 SP500 +2.78 NASDAQ Adv/Dec 1117/1190 NYSE Adv/Dec 1820/1017
10:35 am : At the opening of pit trading, crude oil futures began to trend upwards from around the $93.50 area to current session highs of $95.09/barrel. Ahead of today's inventory data, crude was just below the $95 level. Following the data, which showed a draw of 1.71 million versus the consensus of 1.8 million, crude ticked to new session highs of $95.38/barrel and is now 1.2% higher at $95.28/barrel.
Meanwhile, natural gas futures began to sell-off ahead of the open, falling just below yesterday's closing levels. It managed to move back into positive territory over the next hour, but lost steam again and is currently down 0.8% at $4.35/MMBtu.
Gold and silver have been on a rather steady uptrend this morning after showing some losses in the overnight session. Gold has been in positive territory for the past hour and 45 minutes and is now up 0.7% at $1557.20/oz. Silver showed sharper losses overnight, but has erased those along with gold and is now 0.7% higher at $36.62/oz.DJ30 -22.44 NASDAQ -6.05 SP500 -1.62 NASDAQ Adv/Vol/Dec 877/211.5 mln/1384 NYSE Adv/Vol/Dec 1482/94.7 mln/1217
10:00 am : Financials have made a nice bounce in recent trade. The sector is now up 0.3%, which is only a modest gain, but it is enough to make financials one of the top performing groups this morning. The group is currently led by diversified financial service plays like Bank of America (BAC 10.90, +0.07) and JPMorgan Chase (JPM 41.33, +0.43).
Meanwhile, utilities stocks are cutting their losses. The sector had fallen to a loss of almost 1% in the first few minutes of the session, but it is now down a much more tame 0.4% for the day. DJ30 -11.99 NASDAQ -3.20 SP500 +0.32 NASDAQ Adv/Vol/Dec 829/78 mln/1363 NYSE Adv/Vol/Dec 1441/47 mln/1228
09:45 am : The major market avrerages are down with narrow losses in the opening minutes of trade. Tech, which is the largest sector by market weight, is a drag after it offered leadership in the prior session; the sector is currently down 0.2%.
Utilities stocks are actually in the worst shape this morning. As a group, utilities plays are down 0.8%. Electric utilities like Duke Energy (DUK 18.64, -0.16) and American Electric (AEP 37.57, -0.31) have been the heaviest drags on the sector. DJ30 -20.96 NASDAQ -2.85 SP500 -1.10 NASDAQ Adv/Dec 797/1344 NYSE Adv/Dec 1311/1331
09:15 am : S&P futures vs fair value: -2.50. Nasdaq futures vs fair value: -5.00. A flat to slightly lower open is suggested by broad market stock futures. The tepid tone comes as markets abroad cool after they had staged a strong rally in the prior session. There is also a sense of caution about what will be included in the latest FOMC Policy Statement (12:30 PM ET) with the approaching expiration of the Fed's second quantitative easing effort, ongoing macro headwinds, and eurozone fiscal challenges amid the financial struggles of peripheral countries like Greece. With regard to Greece, the country's prime minister won a no-confidence vote last evening, as had been expected. As for other headlines, a handful of earnings reports have been posted since the prior session's close. Most of them, including FedEx (FDX), Jabil Circuit (JBL), and Adobe (ADBE), have featured upside surprises, but the reaction among premarket participants has been somewhat mixed.
09:05 am : S&P futures vs fair value: -2.50. Nasdaq futures vs fair value: -4.50. Commodities are mixed this morning. Among those that are most widely watched, crude oil was last quoted with a 0.3% loss at $93.90 per ounce. Meanwhile, natural gas prices are up 0.5% to $4.41 per MMBtu. Among precious metals, gold prices are up 0.3% to just above $1550 per ounce, but silver is down fractionally to $36.36 per ounce. Overall action in the space has the CRB Commodity Index down 0.2%.
08:35 am : S&P futures vs fair value: -3.70. Nasdaq futures vs fair value: -7.50. Trade in Europe is mixed following news that Greece's prime minister passed a no-confidence vote last evening. Meanwhile, the euro is essentially flat against the greenback, but the sterling pound is down 0.7% to $1.611 in the wake of news that the Bank of England will keep its target rate at 0.5% and maintain an asset purchase plan of 200 billion British pounds. Britain's FTSE is currently fractionally lower. Capita Group is in the worst shape, but banking plays like Barclays (BCS) and Royal Bank of Scotland (RBS) have been heavy drags after their shares were downgraded by analysts at HSBC. Lloyds Group (LYG) was also downgraded, but the stock has managed to muster a modest gain. France's CAC is currently off by 0.2%. Schneider Electric and Carrefour have weighed most on action, but Renault has been a strong source of support. In Germany, the DAX is currently unchanged. Merck KGAA and Metro AG are the two worst performers by percent lost, while Deutsche Post and BMW are the two top performers by percent gained. As for data, eurozone new industrial orders increased by 0.7% during April after they had fallen by an upwardly revised 1.5% in the prior month.
In Asia, Japan's Nikkei rallied to a 1.8% gain as more than 95% of its components advanced. CSK and Softbank were among the top performers. Shinsei Bank and Tokyo Gas were on the short list of declining issues. Hong Kong's Hang Seng settled unchanged for its latest session. General weakness among banks kept the average mired near the neutral line. In contrast, bank stocks helped prop up mainland China's Shanghai Composite in overnight trade. The Composite closed with a 0.1% gain.
08:05 am : S&P futures vs fair value: -1.50. Nasdaq futures vs fair value: -4.50. Stock futures are flat to slightly lower after the broad market rallied in the prior session to a 1% gain. The coolness comes after last night's news that Greece's prime minister won a no-confidence vote, as had been generally expected. Mixed action among the major equity averages abroad has also made for a relatively muddled backdrop to premarket trade. However, corporate news flow has picked up considerably since the prior session's close. It has been mostly positive in that FedEx (FDX), Jabil Circuit (JBL), Adobe Systems (ADBE), and CarMax (KMX) all recently reported quarterly earnings results that exceeded the consensus forecast. Weekly oil inventory data are due at 10:30 AM ET, but today's calendar is highlighted by the latest FOMC statement, which will be posted at 12:30 PM ET.
06:30 am : [BRIEFING.COM] S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -9.00.
06:30 am : Nikkei...9629.43...+169.80...+1.80%. Hang Seng...21859.97...+9.40...0.00.
06:30 am : FTSE...5742.56...-32.80...-0.60%. DAX...7273.42...-12.10...-0.20%.
5:02PM Benihana reported fiscal Q1 total restaurant sales increased YoY 6% to $26.9 mln from $25.3 mln (BNHN) 9.75 -0.10 : Company-wide comparable restaurant sales increased by 6.7% to $26.9 mln from $25.2 mln . By concept, comparable restaurant sales increased 9.3% at Benihana Teppanyaki (including 7.2% traffic growth) and 2.5% at RA Sushi and decreased 0.3% at Haru.
5:01PM Vanguard Announces Redemption of Notes (VHS) : ...
5:00PM Vertex Pharm reports that, in the ADVANCE study, INCIVEK combination therapy significantly improved viral cure rates in people who were new to treatment compared to those who received pegylated-interferon and ribavirin alone (VRTX) : ...
4:55PM TowneBank announces cash dividend on its TARP preferred stock (TOWN) 12.99 -0.46 : Co announced that its Board of Directors on June 22, 2011 declared a cash dividend of $12.50 per share on its Series B Fixed-Rate Non-Cumulative Perpetual Preferred Stock. This preferred dividend is payable on August 15, 2011, to the shareholder of record as of August 2, 2011. This is the eleventh quarterly dividend payment to the U.S. Department of the Treasury, the shareholder of record, on the preferred stock issued to it by TowneBank under the Capital Purchase Program of the government's Troubled Asset Relief Program. The amount and declaration of future cash dividends are subject to Board of Director's approval in addition to regulatory restrictions.
4:53PM Encore Energy Partners LP to acquire Permian Basin oil and gas properties (ENP) 20.49 +0.27 : Co Encore Energy Partners LP (ENP) announced it has entered into a definitive agreement to acquire an undivided 50% interest in producing oil and gas assets in the Permian Basin of West Texas for a net purchase price of $42.5 mln from a private seller. The other 50% interest in the assets is being acquired by Vanguard Natural Resources, LLC (VNR). VNR is the general partner of ENP. The interests to be acquired by ENP have estimated total net proved reserves of 2.74 mln barrels of oil equivalent, of which ~70% are oil and natural gas liquids reserves. The properties being acquired are 100% proved developed. At closing of this transaction, net production to ENP attributable to the assets being acquired should be ~500 Boe/d. The effective date of the acquisition is May 1, 2011 and the co anticipates closing this acquisition on or before August 1, 2011.
4:51PM Cablevision announces that AMC Networks announces pricing of $700 mln of senior notes (CVC) 35.36 -0.61 : AMC Networks, a subsidiary of Cablevision Systems (CVC), announced that it has priced an offering of $700 mln in aggregate principal amount of 7.75% Senior Notes due 2021. The offering is expected to close on June 30, 2011, subject to customary closing conditions. The senior notes offering is in connection with the previously announced leveraged spin-off of AMC Networks by Cablevision.
4:30PM First PacTrust Bancorp announces commencement of common stock offering of 1.58 mln shares (FPTB) 16.27 +0.01 : Robert W. Baird is serving as the sole book-running manager of the underwritten public offering, and D.A. Davidson, FIG Partners and Wunderlich Securities are serving as co-managers of that offering... Additionally, pursuant to existing contractual rights and subject to completion of the underwritten public offering, St. Cloud Capital Partners II, L.P. and TCW Shared Opportunities Fund V, L.P., each an existing shareholder, have agreed to purchase from the Company in a separate registered offering made directly to them by the Company, an aggregate of 207,360 shares of the Company's voting common stock.
4:27PM Poniard Pharmaceuticals and ALLOZYNE sign definitive merger agreement (PARD) 0.19 -0.02 : Co announced the signing of a definitive merger agreement with ALLOZYNE. Under the terms of the merger agreement, Poniard will issue shares of its common stock to ALLOZYNE stockholders based on an exchange ratio to be determined prior to closing of the transaction. Under the exchange ratio formula in the merger agreement, the former ALLOZYNE stockholders are expected to own ~65% of the combined co, and the former Poniard shareholders are expected to own ~35% of the combined co, each on a fully diluted basis. The exchange ratio has been calculated using the 5-day average closing sales price of Poniard common stock prior to the merger announcement, or $0.2270 per share. The merger will take the form of a stock-for-stock merger intended to qualify as a tax-free reorganization. (PARD is halted)
4:23PM Horsehead Holding to proceed with plans to construct a new zinc production facility (ZINC) 11.56 -0.07 : Co anticipates that its new facility will be capable of producing in excess of 150,000 tons of zinc metal per year. Co believes the investment will produce an attractive net present value of expected cash flows and increase earnings, with benefits that would not change significantly with changes in the price of zinc. Site evaluations and negotiations continue regarding the final location for the new zinc facility. A primary site has been identified for engineering design purposes. A final decision on the site of the facility is not expected until project financing is completed. Construction of the facility could be completed as early as the third quarter of 2013. The existing smelter will continue to operate until such time as the new plant has achieved its targeted production run-rate. The Company is evaluating a range of financing sources for both the new zinc plant and other ongoing expansion and diversification initiatives. Sources could include cash-on-hand, a new revolving credit facility and financing through the debt capital markets.
4:22PM Merit Medical closed a 5.2 mln share common stock offering (MMSI) 17.82 -0.23 :
4:22PM Insulet announces concurrent public offerings of convertible senior notes and common stock issued in previously announced Neighborhood Diabetes Acquisition (PODD) 20.49 +0.02 : Co announced its intention to offer, subject to market and other conditions, $110 mln principal amount of convertible senior notes due 2016 (the "notes") pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission today. Co also intends to grant the underwriters an option to purchase up to an additional $16.5 mln principal amount of notes to cover over-allotments, if any. J.P. Morgan Securities LLC is acting as the sole book-running manager for the notes offering. J.P. Morgan Securities LLC is acting as sole book-running manager and Canaccord Genuity Inc. is acting as lead manager for the common stock offering. Approx. 1.15 mln shares of common stock offered represent shares issued in previously announced neighborhood diabetes acquisition. Co reported that convertible senior notes due 2016 to provide cash for possible repurchase of existing debt securities due 2013.
4:17PM Bed Bath & Beyond beats by $0.10, beats on revs; guides Q2 EPS (BBBY) 54.06 +0.00 : Reports Q1 (May) earnings of $0.72 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.62; revenues rose 9.7% year/year to $2.11 bln vs the $2.07 bln consensus. Co issues guidance for Q2, sees EPS of $0.77-0.82 vs. $0.82 Capital IQ Consensus Estimate. Comparable store sales in the fiscal first quarter of 2011 increased by ~7.0%, compared with an increase of ~8.4% in last year's fiscal first quarter. During the fiscal first quarter of 2011, the Company repurchased ~$245 million of its common stock representing ~4.8 million shares. This included the completion of the $1 billion share repurchase program authorized in 2007. As of May 28, 2011, the balance remaining of the share repurchase program authorized in December 2010 was ~$1.892 billion dollars.
4:14PM Aspen Insurance announces initial loss estimate for April and May weather-related events in the US (AHL) 25.48 +0.10 : Co announced an initial estimate of losses of approximately $60 million, net of applicable reinsurance, reinstatement premiums and tax, related to the series of severe weather events that occurred in the US in April and May 2011. The thunderstorm outbreaks were extensive and highly destructive causing both loss of life and severe damage mainly in the Midwest and Southeast regions of the US. The majority of the Company's net loss estimate emanates from its reinsurance segment. Aspen believes that its loss estimate is consistent with an industry loss for these events of $15 billion.
4:14PM Teekay Offshore signs Brazil shuttle tanker contract to be serviced by four newbuildings (TOO) 28.58 +0.24 : Co announced that it has entered into a new long-term contract with a subsidiary of BG Group plc (BG) to provide shuttle tanker services in Brazil. The contract with BG will be serviced by four Suezmax-size DP2 shuttle tanker newbuildings to be constructed by Samsung Heavy Industries in South Korea. Upon delivery in mid- to late-2013, the vessels will commence operations under 10-year time-charters. The contract with BG also includes certain extension options and vessel purchase options.
4:14PM American Capital Agency announces public offering of 36 mln shares of its common stock (AGNC) 28.85 +0.35 : AGNC reported that in connection with the offering, the co intends to grant the underwriters an option for 30 days to purchase up to an additional 5,400,000 shares of common stock to cover overallotments, if any. AGNC expects to use the net proceeds from this offering to acquire additional agency securities as market conditions warrant and for general corporate purposes. Citi, J.P. Morgan Securities LLC, UBS Securities LLC, and Wells Fargo Securities, LLC are joint book running managers for the offering.
4:08PM IHS misses by $0.04, reports revs in-line; guides FY11 (Nov) EPS in-line, revs in-line (IHS) 87.99 -0.20 : Reports Q2 (May) earnings of $0.83 per share, excl. non-recurring items, $0.04 worse than the Capital IQ Consensus Estimate of $0.87; revenues rose 22% year/year to $325.0 mln vs the $323.49 mln consensus. Co issues in-line guidance; co sees FY11 $3.33-3.43 vs $3.42 Capital IQ Consensus Estimate; sees revs $1.29-1.32 bln vs $1.30 bln Capital IQ Consensus Estimate.
4:08PM ProLogis to offer 30 mln shares of common stock (PLD) 33.00 +0.01 : BofA Merrill Lynch and J.P. Morgan are acting as joint bookrunners for the proposed offering. Co intends to use a portion of the net proceeds to fully repay outstanding borrowing under the existing ProLogis European Properties bridge facility. Co plans to apply any remaining net proceeds to repay borrowings under its global senior credit agreement and for general corporate purposes.
4:07PM Paychex reports EPS in-line, beats on revs; guides FY12 EPS in-line, revs above consensus (PAYX) 29.71 -0.26 : Reports Q4 (May) earnings of $0.33 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.33; revenues rose 5.3% year/year to $522.7 mln vs the $514.7 mln consensus. Co issues mixed guidance for FY12, sees EPS growth of 5-7% whcih calculates to ~$1.49-1.53 vs. $1.50 Capital IQ Consensus Estimate; sees FY12 rev growth of 7-9% which calculates to ~$2.247 - 2.289 bln vs. $2.19 bln Capital IQ Consensus Estimate.
4:06PM Red Hat beats by $0.02, beats on revs (RHT) 43.72 -0.03 : Reports Q1 (May) earnings of $0.24 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.22; revenues rose 26.6% year/year to $264.7 mln vs the $253.8 mln consensus. Operating cash flow was $90.2 mln for the first quarter, as compared to $60.6 mln in the year ago quarter. At quarter end, the company's total deferred revenue balance was $786.0 million, an increase of 26% on a year-over-year basis. Total cash, cash equivalents and investments as of May 31, 2011 was $1.27 bln.
4:06PM Excel Trust is commencing an underwritten public offering of 12.5 million shares of common stock (EXL) 11.89 -0.06 : Morgan Stanley, Barclays Capital, KeyBanc Capital Markets and Wells Fargo Securities are joint book-running managers for the offering.
4:06PM Lincoln National has called for the redemption of all $275 mln in outstanding 6.75% Capital Securities due 2066 (LNC) 27.34 -0.38 :
4:05PM Standard Parking announces $20 mln stock repurchase program (STAN) 14.93 +0.05 :
4:05PM Hampton Roads Bankshares announces agreement to sell Charlottesville branch to The Page Valley Bank; terms not disclosed (HMPR) 16.41 -1.04 : The Page Valley Bank is subsidiary of Blue Ridge Bankshares (Pink Sheets: BRBS).
4:05PM Preferred Bank (PFBCD) appoints Wellington Chen Senior Executive VP; Pending notice of non-disapproval from the FDIC and the California Department of Financial Institutions he will also be appointed COO (PFBC) 7.46 -0.05 :
4:05PM Anacor Pharma Announces GSK Has Initiated Two Phase 2 Trials of GSK '052 in Complicated Urinary Tract Infections and Complicated Intra-Abdominal Infections (ANAC) 5.98 -0.20 : Co has initiated two separate Phase 2b trials of GSK 2251052, or GSK '052 (formerly referred to as AN3365), in complicated urinary tract infections and complicated intra-abdominal infections. GSK '052 is a novel boron-based, systemic antibiotic being developed for the treatment of infections caused by Gram-negative bacteria. Since there are no commercially available antibiotics that target LeuRS, there is no known pre-existing bacterial resistance to the target. Preclinical and Phase 1 studies suggest that GSK '052 is a promising drug candidate for the treatment of infections caused by a broad range of Gram-negative bacteria, including E. coli, K. pneumoniae, Citrobacter spp., S. marcescens, P. vulgaris, Providentia spp., Pseudomonas aeruginosa and Enterobacter spp. as well as other pathogens responsible for both cUTI and cIAI. Anacor licensed this compound to GSK in July 2010 under the companies' ongoing research and development collaboration. Under the collaboration, GSK is responsible for the management and costs of these Phase 2b trials as well as all further development and any resulting commercialization of GSK '052. Anacor is eligible to receive future development milestones up to $69 million, commercial milestones up to $175 million, and double-digit tiered royalties with the potential to reach the mid-teens on annual net sales.
4:04PM Sonic beats by $0.03, reports revs in-line; sees positive Q4 comps (SONC) 10.52 -0.33 : Reports Q3 (May) earnings of $0.21 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.18; revenues rose 4.2% year/year to $152.1 mln vs the $151.2 mln consensus. Sonic sees Q4 comps positive. For the third fiscal quarter ended May 31, 2011, system-wide same-store sales increased 3.9% versus a decline of 6.0% in the third quarter of fiscal 2010. These sales reflected a 3.6% increase in same-store sales at franchise drive-ins compared with a decline of 6.0% in same-store sales for the third quarter of fiscal 2010. Same-store sales at co-owned drive-ins increased 6.5% versus a decline of 6.3% in the third quarter of fiscal 2010. Co sees positive Q4 comps and slightly favorable restaurant-level margins.
4:04PM Fluor awarded contract by The Dow Chemical Company (DOW) to provide basic engineering and design services on its propane dehydrogenation expansion project; undisclosed contract value will be booked in 2Q11 (FLR) 62.27 -0.38 :
4:04PM Herman Miller beats by $0.04, beats on revs (MLHR) 24.00 -0.05 : Reports Q4 (May) earnings of $0.30 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.26; revenues rose 37.3% year/year to $441.5 mln vs the $418.6 mln consensus.
4:03PM GTX to offer and sell shares of its common stock in an underwritten public offering (GTXI) 5.23 -0.14 : Citi and Jefferies are acting as joint book-running managers and underwriters for the proposed offering.
3:41PM Earnings Calendar (SUMRX) : Today after the close look for the following companies to report:
Tomorrow before the open look for the following companies to report:
* CAG, DFS, LEN, and RAD.
3:33PM Afternoon extension brings morning lows into play -- Dow -49, S&P -5, Nasdaq Comp -9.3 (SPY) :
3:28PM CBOT Agriculture and Ethanol and ICE Exchange Sugar Closing Prices; Corn Ends Limit Down (COMDX) : Continuous corn futures closed 30 cents lower (or -4.2%) at $6.78/bushel, wheat fell 36 cents (or -5.3%) to close at $6.38, cont. soybeans fell 19 cents at $13.30, cont. ethanol closed down 7 cents to $2.66, while cont. world sugar futures closed down 0.19% at 0.26 cents.
3:18PM Rent-A-Center & Eolas Technologies reach licensing agreement covering two eolas patents for interactive web applications (RCII) 29.27 -0.39 :
3:09PM Slide in stock indices to lower half of ranges stalls after end to Fed Chair press conference with minor upticks noted -- Dow -21, S&P -1.7, Nasdaq Comp -3.2 (SPY) :
2:57PM New afternoon pullback lows for stock indices -- Dow -31, S&P -3.1, Nasdaq Comp -5 (SPY) : Some minor room before opening/session lows are retested (12134 Dow, 1290 S&P and 2676 Nasdaq Comp).
2:55PM Silver trades into negative territory, while gold approaches flat line, as dollar continues to move higher (COMDX) :
2:41PM Stock indices continue intraday chop, slip back off range/session highs over last 15 min -- Dow -20, S&P -1.4, Nasdaq Comp -1.2 (SPY) : Relative weakness in Reg Bank KRE, Housing XHB, Finance XLF, Airline, Ag/Chem MOO, Silver SLV, Gold GLD in recent trade.
2:41PM Gold to test $1550 as dollar moves higher (COMDX) :
2:35PM NYMEX Energy Closing Price (COMDX) : August crude oil settled higher by $1.24 to $95.41, July natural gas shed 7 cents to close at $4.302, July RBOB gasoline shed 0.3 cents to finish at $2.97, while July heating oil ended lower by 0.2 cents to $2.95.
2:31PM Goodrich selected by Boeing (BA) Defense, Space & Security to work on U.S. Air Force Research Laboratory's Integrated Vehicle Energy Technology program (GR) 93.06 +0.95 :
2:24PM Stock indices pushing against upper end of limited intraday ranges following end of Fed Chair statement -- Dow +12, S&P +2, Nasdaq Comp +4.5 (SPY) :
2:10PM Deere says proposal interferes with GPS Use in agriculture and construction; objects to proposal under consideration by U.S. Federal Communications Commission (DE) 82.34 +0.21 :
2:10PM Rockwell Collins: Bombardier repays $237 mln loan to Rockwell Collins (COL) 61.40 +0.23 :
1:48PM General Electric and unions announce details of proposed labor contracts (GE) 18.72 -0.09 : GE and its two largest unions, IUE-CWA and the United Electrical, Radio and Machine Workers of America (UE) announced details of the proposed four-year labor agreements that will be voted on by union members by June 30, 2011. Today the Conference Board of IUE-CWA endorsed and recommended the labor agreement for ratification by members. The UE Conference Board will be voting on June 23. New four-year agreements were reached Sunday after four weeks of intense bargaining. Ratification votes will be held by June 30 by members of IUE-CWA and UE.
1:47PM IAMGOLD receives $667 mln cash From the sale of its interest in Tarkwa and Damang; gold production guidance remains unchanged (IAG) 19.80 -0.09 : Co announced the closing of the sale of its 18.9% interest in the Tarkwa and Damang gold mines in Ghana, West Africa to Gold Fields for $667 mln in cash. Gold Fields already owned 71.1% of the mines and the Government of Ghana the remaining 10%. Subsequent to the announcement of the Transaction in April, the co revised its 2011 gold production guidance to between 950,000 and 1,050,000 ounces to reflect the inclusion of only first quarter 2011 attributable gold production, (46,000 ounces) from the Tarkwa and Damang mines. This guidance remains unchanged.
1:34PM COMEX Metals Closing Prices (COMDX) : August gold finished higher by $7.16 to $1553.50, July silver gained 32 cents to end at $36.70, while July copper gained 0.1 cents to close at $4.09.
1:24PM Multi-Color to acquire Warszawski Dom Handlowy for $9.3 mln in cash (LABL) 21.75 -0.22 : Co entered into a Share Purchase Agreement to acquire 100% of Consumer Products & Spirit label company, Warszawski Dom Handlowy in Warsaw, Poland for ~$9.3 mln payable in cash. Closing is expected to be on or about July 1, 2011 and the accretion to earnings is expected to be neutral. Warszawski Dom Handlowy had revenues of ~$11 mln in 2010.
12:55PM Crude oil testing highs (COMDX) :
12:50PM Stock indices edge slightly off limited post-Fed statement lows -- Dow +4, S&P +1.2, Nasdaq Comp +2.4 (SPY) : Seeing some minor relative sector strength on this modest intraday push in Semi SMH, Finance XLF, Materials XLB, Copper JJC, Silver SLV.
12:42PM US Airways announced earlier $83 mln aircraft financing in offering of Class C enhanced equipment trust certificates (LCC) 8.65 0.00 : This offering is in addition to the previously announced offering of Class A and Class B enhanced equipment trust certificates. Co intends to use the proceeds from these offerings to refinance five Airbus aircraft currently owned by US Airways, to finance four Airbus aircraft scheduled to be delivered in September, 2011 and October, 2011 and use the balance, if any, for general corporate purposes. The $83 million financing will consist of Class C certificates with a final expected distribution date of April 22, 2016.
12:40PM Regions Fincl trading higher after announcing Morgan Keegan settled regulatory issues; Regions to explore strategic alternatives for Morgan Keegan (RF) 6.45 +0.15 : Co announced earlier that its brokerage and investment banking subsidiary, Morgan Keegan & Company, Inc., and its asset management subsidiary, Morgan Asset Management, have agreed to a settlement of previously disclosed regulatory matters with the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and a group of state securities regulators with respect to issues concerning certain mutual funds and closed-end funds (the RMK Funds), a business that Morgan Asset Management divested in 2008. As part of the settlement, Morgan Keegan and Morgan Asset Management agreed to pay $210 million, of which $200 million will be placed into two Fair Funds for the benefit of investors in the RMK Funds in any state. The full amount of the settlement was previously accrued.
12:36PM Some minor intraday slippage as Fed statement is digested -- Dow -22, S&P -1.9, Nasdaq Comp -3.9 (SPY) :
12:36PM Gold, silver starting to pull back as dollar pushes into positive territory (COMDX) :
12:35PM Corn and wheat futures remain sharply lower as G20 leaders and World Bank put efforts to tackle high food prices; Wheat -7.2%, Corn -4.2% (COMDX) : At the G20 meeting in Paris, which is going on today and Thursday, agriculture ministers from the G20 nations are discussing plans to address high food prices and it includes such measures as 'emergency reserves.' and news yesterday that the World Bank created a program to provide an initial $4 bln in protection from volatile food prices. Wheat futures are currently -7.2% at $6.26/bu and corn is -4.2% at $6.78 (down the exchange limit of 30 cents).
12:29PM Little reaction in stock indices thus far -- Dow -5, S&P +0.04, Nasdaq Comp-0.09 (SPY) :
12:29PM No reaction seen in gold, silver, or crude oil following FOMC release (COMDX) :
12:27PM FOMC Statement (ECONX) : Click here for link.
12:26PM Stock indices vacillating near choppy range mid-points ahead of Fed statement -- Dow -5, S&P -0.07, Nasdaq Comp -0.09 (TECHX) :
12:17PM Oxygen Biotherapeutics announces $4.6 mln private placement of unregistered convertible note and warrants (OXBT) 3.01 +0.31 : Co says the note will bear an interest rate of 15% payable in cash or stock and it matures in three years. The Note is convertible into Common Stock at any time after issuance at $2.255/share. Oxygen expects to use the net proceeds of the offering primarily for general corporate purposes, including Oxygen's dermatology, cosmetics and other businesses, but does not anticipate using a significant portion of the proceeds for patient testing relating to traumatic brain injury indications.
12:03PM Some limited slippage off mid-morning highs in recent trade hovering near range mid-point -- Dow -11, S&P -1, Nasdaq Comp -2.3 (SPY) : Relative sector weakness on this move has been noted in Retail XRT, Housing XHB, Ag/Chem MOO, Solar TAN (FSLR), Gold Miners GDX, Steel SLX, Casino.
12:00PM Corn futures fall the exchange limit after a sharp move lower in recent trading activity, while the dollar index remains slightly lower (COMDX) : Corn futures are down 30 cents, the exchange limit, to $6.78 after a sharp sell-off in the last hour and 30 minutes or so. Wheat is -5% at $6.41/bu and soybeans are -1.2% at "3.32/bu.
11:45AM Asta Funding announces share repurchase program of up to $20 mln of the co's common stock (ASFI) 7.30 +0.10 :
11:38AM Coventry Health Care enters into new $750 mln five-year unsecured revolving credit facility which will be undrawn at issuance (CVH) 14.78 +0.03 : All outstanding balances on the previous credit facility have been repaid from existing parent company cash.
11:12AM Crude reverses back toward flat line, giving up earlier gains; now up 23 cents to $94.40 (COMDX) :
11:11AM Cisco Systems up for third session in a row, pauses at 20 ema again (CSCO) : The stock has lifted roughly 5.9% off last week's 52-wk low at today's high to test its declining 20 day ema (15.62, session high 15.64). The recovery attempt in late May stalled at this average and rotated lower.
11:09AM United Continental subsidiary to resume Sendai, Japan flights (UAL) 24.43 -0.09 : Co announced that wholly owned subsidiary Continental Airlines will resume regular service between Guam and Sendai, Japan, subject to government approval, with twice-weekly flights beginning Oct 2. The new flights mark the first resumption of regular service by a foreign airline at Sendai Airport since the facility reopened on April 13. The airport was temporarily closed after the Great East Japan Earthquake on March 11.
11:06AM Steady push off lows sees S&P +2 and Nasdaq Comp +2.3 inch slightly above yesterday's high, Dow +7 did not confirm this move (SPY) :
10:48AM Starwood Hotels' Sheraton set to open seven properties in China this summer (HOT) 54.42 +0.36 : Co announced that its will open seven more hotels in China before the end of September. News of these openings coincides with a month-long relocation of Starwood's global headquarters to Shanghai, China. This unprecedented managerial endeavor highlights Starwood's evolution as a global company and the development boom in China.
10:37AM Gold to fresh highs as dollar drops from flat line; now up $11.70 to $1558.10 (COMDX) :
10:36AM Ecotality prices 8.5 mln share offering at $2.50/share (ECTY) 2.80 -0.26 : (stock is halted)
10:32AM France Telecom's Orange Business Services and SITA team to build a cloud computing infrastructure (FTE) 20.95 +0.06 : The cloud computing infrastructure will be based on interconnected Tier III+ and Tier IV data centers in five continents, in Atlanta, Frankfurt, Johannesburg, Singapore, Hong Kong and Sydney.
10:31AM Crude oil ticks to highs following inventory data; now up $1.10 to $95.27 (OIH) :
10:31AM Agilysys and Vision-1 partner for development, sale and implementation of Vision-1's patented Customer Response-Ability POS survey process and retail solution (AGYS) 8.22 -0.14 :
10:09AM Modest new session highs for Housing XHB, Home Construct ITB and REITs IYR (TECHX) :
10:07AM Overall bias mixed but Dow -3.4 and S&P +1 set minor new morning bounce highs -- Nasdaq -2.6 (TECHX) :
10:01AM Honeywell secures contract from U.S. Army to provide advanced ballistic materials for combat helmets (HON) 57.44 -0.37 : Co announced that it has been awarded a three-year contract from the U.S. Army to provide advanced ballistic materials that will improve the performance and reduce the weight of combat helmets. Under the contract, Honeywell will deliver helmets made with next-generation Spectra Shield and Gold Shield ballistic materials to the Army for testing and evaluation. Honeywell's goal is to reduce the weight of the Army's current helmet design by 16 to 24%, and also help to improve both the ballistic and non ballistic performance of helmets beyond what is currently available today.
10:00AM MasterCard tests its June bounce high/range top at 275.68 -- session high 275.59 (MA) 274.94 +0.83 :
9:51AM EOG Resources vacillating near yesterday's rebound high (EOG) 103.12 +0.93 : EOG has spent the last week vacillating on both sides of its 200 sma. It bounced to 103.18 yesterday and is probing that recovery attempt high again this morning.
9:45AM Relative sector strength off early lows in Energy XLE, Oil Service OIH, Silver SLV, Gold GLD, Material XLB, Coal KOL, Housing XHB (TECHX) :
9:43AM Jabil Circuit aggressively higher after reporting, sets new high of 19.92 near its 50 ema at 19.98 (JBL) 19.86 +1.01 : Note that its 50 sma comes into play at 20.10.
9:43AM Brinker: TableTop Media signs multi-year contract with Brinker's ERJ Dining (EAT) 24.42 +0.11 : Cos have completed the first phase of deployment for its Ziosk touchscreen devices to 30 Chili's locations in St. Louis, Chicago and Central Illinois.
9:42AM Gold and silver again trade to new highs (COMDX) :
9:40AM Crude to fresh highs at $94.59; now up $0.37 to $94.54 (COMDX) :
9:40AM Dow Transports -TRAN- sets minor new high back above its 50 sma at 5321 -- session high 5325 (TECHX) : FDX +2.5% is leading after earnings with it testing/pausing near its 50 sma at 91.82 (session high 91.89).
9:38AM Mildly weaker bias for S&P -3.2, holds at support zone (SPY) : The index slipped off the open in the wake of yesterday's 1.3% rally and the 3% bounce off last week's low (intraday low to high). Thus far it has held at the first level support zone noted in The Technical Take at 1291/1289. Nasdaq Comp -7.4 is just above a similar area at 2674/2670 (session low 2676).
9:34AM Chipotle Mexican Grill to increase local produce use (CMG) 286.61 +1.36 : Co announced that it expects to use more than 10 million pounds of produce from local farms this year, up from its 2010 goal of about 5 million pounds. Chipotle's local produce will be grown on farms within 350 miles of the restaurants where it will be served. The company began serving locally grown produce in its restaurants in 2008, and has been working to increase its local produce supply each year since beginning the program.
9:34AM Gold to fresh highs at $1553.80; now up $6.20 to $1552.60 (COMDX) :
9:33AM Lan Airlines S.A. signed an agreement to purchase 20 modern, eco-efficient A320neo Airbus A320 family aircraft (LFL) 27.38 +0.15 : Co signed an agreement to purchase 20 modern, eco-efficient A320neo Airbus A320 family aircraft, to be delivered between 2017 and 2018. This order is part of LAN s expansion strategy and fleet renewal program, and is valued at approximately US$1,700 million according to list prices.
9:33AM Apple displays some relative strength, works up toward its 200 sma at 326.89 -- session high 326.19 (AAPL) 325.74 +0.44 :
9:33AM Neptune Technologies secures and increases us food, drug, mass and club distribution (NEPT) 3.50 -0.01 : Co recently finalized agreements with two major US distributors to sell Neptune Krill Oil through their well established network of US national retailers and wholesalers.
9:32AM Reed's completes distribution agreement for the full state of Florida (REED) 2.02 0.00 : Co has completed the construction of a full DSD distribution network for the state of Florida. This new mainstream distribution system in Florida consists of four well established direct store delivery distributors that cover the state of Florida. Under the current agreements, these distributors have already begun distributing Reed's and Virgil's brands in all retail channels.
9:31AM CoreLogic reports shadow inventory continues to decline (CLGX) 16.79 -0.07 : Co reported that the current residential shadow inventory as of April 2011 declined to 1.7 mln units, representing a five months' supply. This is down from 1.9 mln units, also a five months' supply, from a year ago. The decline was due to fewer new delinquencies and the high level of distressed sales, which helped reduce the number of outstanding distressed loans. Of the 1.7 mln current shadow inventory supply, 790K units are seriously delinquent (2.6 months' supply), 440K are in some stage of foreclosure (1.4 months' supply) and 440K are already in REO (1.4 months' supply). In addition to the current shadow inventory, there are 2 mln current negative equity loans that are more than 50 % or $150K "upside down." These current but underwater loans have increased risk of entering the shadow inventory if the owners' ability to pay is impaired while significantly underwater.
9:31AM Century Casinos announced that the Swiss authorities have decided to award the casino license to a different project (CNTY) 2.83 -0.01 : Co announced that the Swiss authorities have decided to award the casino license to a different project. The decision of the Swiss Government will be final and is not appealable.
9:26AM Art's-Way Manufacturing to purchase Imperial Steel Tank Co; anticipate this new business will be fully accretive (ARTW) 8.17 : Co announces it has signed a formal Letter of Intent to acquire Imperial Steel Tank Company. "We are in the process of doing final due diligence and expect to close in early July 2011. We anticipate this new business will be fully accretive..."
9:21AM Fannie Mae appoints Susan McFarland as CFO effective July 11 (FNMA) 0.33 : McFarland joins Fannie Mae from Capital One Financial (COF), where she served as executive vice president, Finance and Principal Accounting Officer.
9:19AM Warren Resources provides operational update; 3 new WTU Oil wells producing 420 BOPD (WRES) 3.78 : Co says The first well of its 2011 drilling program was a sinusoidal horizontal well in the Upper Terminal "J" sand formation. The UT well was placed on production on April 21, 2011 and is currently producing approximately 70 BOPD. The second well was drilled on the east side of the Banning fault to test the Tar D1A productivity. This well was placed on production on May 2, 2011 and has averaged about 185 BOPD in the first 45 days of production. The well is currently producing about 150 BOPD. A second Tar well in this new fault block will be horizontally drilled soon to define new reserve volumes. The Company's third well of 2011 was a sinusoidal horizontal well in the Ranger formation that was drilled in May 2011. A directional drilling assembly became stuck in the hole and after repeated attempts the Company was unable to recover the tools. The well was then successfully sidetracked but the casing failed after having been cemented in the hole. Warren has moved off the well while conducting an investigation into the problems encountered while drilling this well. All casing purchased by Warren is from respected steel mills that supply tubulars to most major oil companies. The Company will make a decision as to the ultimate utility of the well after the investigation is complete. Warren is currently drilling a second sinusoidal horizontal Ranger formation well to the south and parallel to the Ranger well above. The fourth well was horizontally drilled in the Tar formation and placed on production on June 16, 2011. This well has averaged about 200 BOPD during its first week on production.
9:17AM Fibrocell Science announces FDA approval for laViv (FCSC.OB) 1.95 : Co announced that the U.S. Food and Drug Administration approved the Company's Biologics License Application for its lead product, laViv late last night. laViv is the first and only personalized aesthetic cell therapy approved by the FDA for the improvement of the appearance of moderate to severe nasolabial fold wrinkles in adults. In clinical trials, laViv was well tolerated with the majority of adverse events being injection-site reactions that were of mild to moderate intensity and resolved within one week. The FDA approval was based in part on the combined results of two identical Phase III multi-center, randomized, double-blind, placebo-controlled studies of 421 patients. In clinical trials, the most common adverse reactions were injection-site redness, bruising, swelling, pain, hemorrhage, edema, nodules, papules, irritation, dermatitis, and pruritus.
9:17AM Crude oil erases losses as it pops into positive territory; now up a penny to $94.18 (COMDX) :
9:15AM On The Wires (WIRES) :
* TeleCommunication Systems (TSYS) announced that it has been awarded additional incremental funding of $2.4 mln to provide the U.S. Marine Corps with field services support for its Wireless Point-To-Point Link-Delta Solutions. * Alaska Communications (ALSK) announced that it is building Alaska's fastest and most advanced 4G wireless network. * Dex One (DEXO) announced it has secured agreements to bolster the development and distribution of Internet videos on behalf of its customers. * Met-Pro (MPR) announced that the co's Global Pump Solutions business unit has received an order to supply a total of six large Fybroc brand vertical sump pumps to be installed at a mining location outside of the U.S. This order is expected to ship in the third quarter of the Company's current fiscal year. * PAETEC Holding (PAET) announced it has selected Ditech Networks (DITC) PhoneTag platform for voicemail-to-text transcription services. * Boeing (BA) and American Airlines (AMR) announced that the airline will be the launch customer for the evolutionary ecoDemonstrator Program. * Cardium Therapeutics (CXM) announced the selection of the Cedars-Sinai Medical Center Nuclear Cardiology Core Laboratory to serve as the central core lab for the Company's Generx ASPIRE clinical study. * LeCroy (LCRY) launched a MIPI M-PHY test suite tailored specifically to the verification, debug and conformance testing of MIPI Alliance M-PHY and various other signal types using the M-PHY physical layer standard. * Lockheed Martin (LMT) and Carroll Technologies Group have signed a distribution agreement for a new wireless, through-the-earth communications system designed specifically to help the mining industry improve post-accident emergency communications. * Spansion (CODE) announced a collaboration with Freescale (FSL) on a memory expansion module for the Freescale Tower System that provides design engineers more flexibility in prototyping a growing range of embedded applications, including factory automation, industrial computers, medical devices, point of sales, and robotics. * Linc Group, an ABM Industries (ABM) co installed the first electric vehicle charging stations in downtown Laguna Beach, California.
9:08AM Gold trades through $1550, a key level, to put in highs at $1552.80; now up $5.00 to $1551.40 (COMDX) : Silver also traded to fresh highs, at $36.59; now up 8 cents to $36.46.
9:02AM Almaden Minerals has agreed to terms with G4G Resources whereby G4G can acquire a 70% interest in Almaden's 100% owned Yago gold-silver project (AAU) 3.29 : Co announces that, subject to regulatory approval, it has agreed to terms with G4G Resources whereby G4G can acquire a 70% interest in Almaden's 100% owned Yago gold-silver project located in Nayarit State Mexico. To earn a 60% interest in the property, G4G is required to: 1) Pay CAD $50,000 to Almaden immediately upon the execution of the option agreement; 2) Issue 500,000 common shares of G4G to Almaden immediately upon the execution of the option agreement; 3) Complete an aggregate of US$6,000,000 in exploration expenditures on the property over a five year period (of which US$500,000 must be incurred in the first year); and 4) Make aggregate payments to Almaden of 2,500,000 common shares of G4G over 5 years (of which 500,000 must be issued in the first year).
9:02AM Sterling Chemicals to be acquired by Eastman Chemical Company (EMN) for $2.50/share cash (SCHI.PK) 1.53 : The co entered into a definitive merger agreement pursuant to which Eastman Chemical Company (EMN) will acquire all of the outstanding equity of Sterling Chemicals for $100 million in cash. Under the terms of the transaction, the holders of Sterling Chemicals' common stock will receive $2.50 per share in cash. Although, as of April 1, 2011, the aggregate Liquidation Value of Sterling Chemicals' outstanding shares of Series A Convertible Preferred Stock was $110.07 mln, which aggregate Liquidation Value will increase to $114.47 mln on July 1, 2011, the holders of Sterling Chemicals' outstanding shares of Series A Convertible Preferred Stock have agreed to support the transaction and will only receive $92.9 mln in the aggregate in respect of their Series A Convertible Preferred Stock. The merger, which has been approved by the Sterling Chemical's board of directors upon the recommendation of a special committee of independent directors and by the board of directors of Eastman Chemical, is expected to close in the third quarter of 2011.
9:01AM Allete co Minnesota Power accelerates timing of new wind project in North Dakota (ALE) 39.74 : Co announces it has accelerated its plans to build a third wind energy project in North Dakota, citing a competitive turbine market, federal production tax credits and regulatory support as factors for moving up its timeline. The co submitted a plan to the Minnesota Public Utilities Commission this week to build a 105 MW, $157 mln, wind farm in Oliver and Morton Counties in central North Dakota.
9:01AM First Fincl Hldgs unit to acquire the deposits and select loans associated with Liberty's five bank branches located in Hilton Head (FFCH) 10.09 : Co's subsidiary, First Federal Savings and Loan Association of Charleston, signed a purchase and assumption agreement with Liberty Savings Bank, FSB to acquire the deposits and select loans associated with Liberty's five bank branches located in Hilton Head, South Carolina. The deposits associated with these branches totaled approximately $109.5 million as of March 31, 2011. Additionally, as part of this transaction First Federal will purchase approximately $27 million in loans.
8:52AM Robbins & Myers reports EPS in-line, beats on revs; guides Q4 EPS above consensus (raises FY11 guidance) (RBN) 44.70 : Reports Q3 (May) adjusted earnings of $0.53 per share, including a $0.15 charge to reduce the value of certain tax assets in the Process Solutions business, in-line with the Capital IQ Consensus Estimate consensus of $0.53 and $0.45-0.55 guidance; revenues rose 98.1% year/year to $237.1 mln vs the $211.4 mln consensus. Co issues upside guidance for Q4, sees EPS of $0.65-0.75, excluding non-recurring items, vs. $0.63 Capital IQ Consensus Estimate (co raises FY11 guidance). Consolidated Q3 orders were a record $263 mln, or $171 mln excluding T-3, 29% higher than the comparable prior year period. Backlog at the end of the recent quarter stood at $248 mln. These results exclude Romaco, which is included in income from discontinued operations. "Performance across our energy product lines exceeded expectations this quarter due to very strong demand from our oil & gas customers. T-3 booked a record level of orders in the quarter, benefitting from higher drill rig deployments and later-cycle new rig builds. The business has outperformed our expectations since we acquired it in January, and the integration remains on track."
8:45AM MagneTek regains compliance with NYSE listing standards for minimum market capitalization (MAG) 1.66 :
8:41AM On The Wires (WIRES) :
* Foster Wheeler (FWLT) announced that a subsidiary of its Global Engineering and Construction Group has been awarded a contract by Sasol to perform the technical portion of a feasibility study for a planned gas-to-liquids facility in Canada, on behalf of the Sasol/Talisman Energy partnership. The technical portion of the feasibility study is expected to be completed during Q4 of 2011. * Rovi (ROVI) and LG Electronics have signed multi-year licensing agreements that expand their relationship and provide further integration of DivX technology into a wider range of consumer electronics devices. * Jefferies (JEF) announced the establishment of full-service equity capabilities in Mumbai, India as part of the firm's continued expansion of its global equities franchise.
8:36AM Western Liberty Bancorp to resume trading at 9am ET (WLBC) 2.93 :
8:34AM Synthesis Energy Systems and Midas form 50/50 jv SES Resource Solutions (SYMX) 2.04 : Terms of the joint venture agreement include: the jv will have the exclusive right to promote Synthesis Energy Systems gasification technology, Midas will provide expertise to originate and execute the above projects, Synthesis Energy Systems will provide the jv technology licenses and engineering development support for use in developing the joint integrated coal resource projects, the cos will equally contribute to the formation and operation with budgeting $2.0 mln and Midas contributing the equivalent amount in services over a two year period after which the jv should be self-funding, andthe jv will be governed by a four person board of directors, two of which will be appointed by Synthesis Energy Systems and two of which will be appointed by Midas.
8:32AM Western Liberty Bancorp announces strategic moves to enhance shareholder value and boost reserves; deterioration of a few large loans in the second quarter will require co to add a substantial provision for loan losses (WLBC) 2.93 : Co reports it has taken a number of steps to improve shareholder value by exploring potential business changes, initiating a share repurchase program in accordance with current SEC guidance, and also boosting reserves for possible loan losses. has engaged Sandler O'Neill Partners as its financial advisor on strategic alternatives for maximizing shareholder value, which could include a sale or other business combinations. Co adds, the deterioration of a few large loans in the second quarter will require coto add a substantial provision for loan losses, which they currently estimate to be between $4-5 mln. Co states: "Even with this substantial increase in provision expense, we continue to have strong capital ratios, and our tangible book value is expected to remain well above $5 per share." Stock is currently halted.
8:32AM Graymark Healthcare (GRMHD) promotes Dr. Steven Glen Hull to Chief Medical Officer (GRMH) 1.37 :
8:31AM Body Central reaffirms Q2, FY11 guidance in at the Jeffries & Company Global Consumer Conference (BODY) 21.90 : Co reaffirms guidance for Q2 (Jun), sees EPS of $0.28-0.30, excluding non-recurring items, vs. $0.30 Capital IQ Consensus Estimate; sees Q2 (Jun) revs of $71-73 mln vs. $73.35 mln Capital IQ Consensus Estimate. Co reaffirms guidance for FY11 (Dec), sees EPS of $1.12-1.16, excluding non-recurring items, vs. $1.16 Capital IQ Consensus Estimate; sees FY11 (Dec) revs of $286-292 mln vs. $292.74 mln Capital IQ Consensus Estimate.
8:31AM Richmont Mines reports 'more positive' drilling results from Monique project (RIC) 7.05 : Martin Rivard, President and CEO of Richmont Mines commented: "Results from our completed 8,117 metre drill program on the G and J zones of the Monique project continue to be favourable, and provide additional support for our objective of evaluating the potential for a small open pit operation on the Property. All required geotechnical and geomechanical work has been completed, and we will use complete results from the drill campaign to finalize a Regulation 43-101 compliant technical report during the fourth quarter of 2011."
8:30AM Safeguard Sci announces that McKesson (MCK) will acquire Portico Systems for $90 mln (SFE) 18.79 : Co announces that technology partner company Portico Systems has signed a definitive agreement to be acquired by McKesson (MCK). MCK has agreed to pay $90 million, in cash, for Portico, of which $5 million will be contingent upon the achievement of performance milestones. Safeguard expects to receive aggregate cash proceeds of approximately $38 million related to its equity interest in Portico, of which $2 million will be contingent upon performance milestones, representing a 4x cash-on-cash return. In addition, Safeguard will be repaid all amounts owed under its $5 million mezzanine debt facility with Portico.
8:30AM Trimas finalizes debt refinancing (TRS) 22.29 : Co announced the closing of its new senior secured credit facilities. Under the transaction, the Company refinanced its Term Loan facility, while reducing the amount outstanding from $233 mln to $225 mln. In addition, co refinanced its Revolving Credit facility, increasing the commitment from $75 mln to $110 mln.
8:19AM On The Wires (WIRES) :
* Penford Products (PENX) announced the launch of a new line of cost effective, natural binder products, made with Penford's proprietary technology, which replace synthetic latex used in coated paper and paperboard applications. * Life Technologies (LIFE) has led a successful consortium bid for a Technology Strategy Board grant, in partnership with the Oxford NIHR Biomedical Research Centre, AstraZeneca (AZN), and Ortho Biotech Oncology Research & Development unit of Johnson & Johnson (JNJ) Pharmaceutical Research & Development. The grant will fund development of a commercial multi-gene next generation sequencing test that will provide comprehensive molecular profiles of tumours in order to identify therapy options. * Responsys (MKTG) announced popular online retailer Newegg has selected Responsys to provide cross-channel marketing and integration capabilities, and enhance customers' shopping experience leveraging the mobile channel. * AuRico Gold (AUQ) provided an update of drill results from the Ocampo surface drill exploration program during May. * Velti (VELT) has signed a strategic three-year partnership agreement with Vodafone Portugal to launch a Permission Based Advertising program. * Celsion (CLSN) announced that ThermoDox was featured in a special issue of The Open Nanomedicine Journal highlighting recent advances, trends and challenges in the use of regional and local hyperthermia and nanomedicine in oncology. * Velti (VELT) has signed a strategic three-year partnership agreement with Vodafone Portugal to launch a Permission Based Advertising program. The Vodafone Promo4U service enables subscribing customers to receive high-value discounts and exclusive offers from their favourite brands free of charge on their mobile phones. * Gevo (GEVO) presented positive test results from fit for purpose testing of biojet fuel to ASTM's alcohol-to-jet task force. Upon reviewing the results of the test, which was conducted by the Southwest Research Institute and the Air Force Research Lab, the task force had no objection to Gevo proceeding to jet engine testing, the next phase in the certification process. Full certification of Gevo's biojet fuel is expected in 2013. * Ligand Pharmaceuticals (LGND) announced that it has made the strategic decision to internally advance development of its Captisol-enabled melphalan program with the current goal to file a New Drug Application with the U.S. Food and Drug Administration by mid-2013 if the development is successful. * Dynatronics (DYNT) announced the signing of an agreement with the Ohio State Chiropractic Association to promote Dynatronics' electronic patient communications platform, Stream, to the nearly 800 OSCA member facilities across the state of Ohio. The agreement became effective on June 1, 2011. * Rexahn Pharmaceuticals (RNN) announced that it has completed enrollment in its Phase IIb clinical trial of Serdaxin to treat major depressive disorder. The randomized, double blind, and placebo-controlled study began enrollment in January 2011 and enrolled a total of 300 patients at approximately 40 sites in the United States. The co expects to report preliminary findings from the trial in late 2011. * Guidance Software (GUID) announced it will deliver the newest version of its flagship digital forensic solution - EnCase Forensic version 7 on June 30. * Celanese Corporation (CE) announced it has doubled the capacity of its vinyl acetate/ethylene unit at its integrated chemical complex in Nanjing, China.
8:03AM Infinity Pharmaceutical expands clinical development program for IPI-926 (INFI) 7.50 : Co announced that it is expanding its clinical development program for IPI-926, a novel, oral small molecule that inhibits Smoothened, a key component of the Hedgehog pathway. As part of this expansion, Infinity plans to initiate an exploratory Phase 2 clinical trial in patients with myelofibrosis, an incurable malignancy of the bone marrow which is characterized by the replacement of normal bone marrow by fibrotic tissue and the production of blood cells in other organs, such as the spleen and liver.
8:02AM Achillion Pharma priced a 9.6 mln share common stock offering at $5.90/share (ACHN) 6.01 :
8:02AM Rimage: Shareholder Arcadia Capital Advisors issues open letter to shareholders calling for return of cash to shareholders through a large share buyback program, a special dividend, or combination of the two (RIMG) 13.38 :
8:02AM Illinois Tool reaffirms Q2, FY11 guidance; reports March-May rev +18% YoY (ITW) 55.54 : Co reaffirms guidance for Q2 and FY11, sees Q2 EPS of $0.99-1.05 vs. $1.04 Capital IQ Consensus Estimate; with Q2 (Jun) revs of +17-20% YoY to ~$4.77-4.90 bln vs. $4.77 bln Capital IQ Consensus Estimate. Co also reports March-May rev +18% YoY; organic or base revenues contributed 8% to total revenue growth in the three month period. In addition, acquisitions and currency translation added 5% and 5%, respectively, to total revenues. A number of worldwide end markets continued to show solid demand levels for the three month period, especially end markets associated with the co's welding, industrial packaging, automotive OEM, and test and measurement businesses. Co reaffirms guidance for FY11 (Dec), sees EPS of $3.83-4.01, excluding non-recurring items, vs. $3.98 Capital IQ Consensus Estimate; sees FY11 (Dec) revs of +16-18% YoY to ~$18.41-18.73 bln vs. $18.54 bln Capital IQ Consensus Estimate.
8:01AM Ventrus Biosciences has received a response from the FDA to its last Special Protocol Assessment submission for iferanserin; FDA requested that additional information be included in the protocol pertaining to certain details of the trial (VTUS) 15.99 : Co announces that it has received a response from the FDA to its last Special Protocol Assessment submission for iferanserin for the treatment of hemorrhoids, and will update the protocol for the company's first pivotal trial for iferanserin and file it to its investigational new drug application, so that the trial can start as planned. In its response, the FDA requested that additional information be included in the protocol pertaining to certain details of the trial. None of these new recommendations affect the previous recommendations made by the FDA for the endpoints, overall statistical powering and subject number, and the overall clinical design of the trial. Ventrus agrees with all of these new recommendations and will update the protocol accordingly and submit it to the IND.
8:00AM Oritani Financial authorizes a share repurchase program for 10% of its outstanding shares (ORIT) 12.70 : Co announces that its Board has authorized the repurchase of up to 10% of its outstanding shares of common stock, or 5,624,506 shares. The program is eligible to commence on June 27, 2011.
7:53AM FedEx beats by $0.02, beats on revs; guides Q1 EPS in-line; guides FY12 EPS in-line (FDX) 89.13 : Reports Q4 (May) earnings of $1.75 per share, $0.02 better than the Capital IQ Consensus Estimate of $1.73; revenues rose 11.9% year/year to $10.55 bln vs the $10.39 bln consensus. Co issues in-line guidance for Q1, sees EPS of $1.40-1.60 vs. $1.42 Capital IQ Consensus Estimate. Co issues in-line guidance for FY12, sees EPS of $6.35-6.85 vs. $6.49 Capital IQ Consensus Estimate. The capital spending forecast for fiscal 2012 is $4.2 billion, which includes the delivery of aircraft as well as progress payments toward future aircraft deliveries, along with investments in facilities, vehicles and information technology in support of the company's global growth strategy. The company will benefit from the tax expensing/accelerated depreciation provisions included in the Tax Relief Act of 2010 passed last December. The co reported International Priority average daily package volume increased 6%, led by exports from Asia. IP revenue per package grew 8% due to higher fuel surcharges, the favorable impact of exchange rates, improved weight per package and yield management actions. FedEx Ground average daily package volume grew 6% in the fourth quarter driven by increases in the business-to-business market and the FedEx Home Delivery service. Revenue per package increased 7% primarily due to yield management actions and higher fuel surcharges. Less-than-truckload yield increased 13% primarily due to yield management actions and higher LTL fuel surcharges.
7:41AM CarMax beats by $0.08, beats on revs (KMX) 30.52 : Reports Q1 (May) earnings of $0.55 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.47; revenues rose 18.4% year/year to $2.68 bln vs the $2.53 bln consensus. "Comparable store used unit sales increased 6%, fueled by increased customer traffic. While traffic for the current quarter remained solidly above the prior year level, sales conversion dipped somewhat. We are especially pleased with our performance in light of recent economic and market challenges, including higher gas and vehicle prices, the uptick in the unemployment rate and the recent pull-back in consumer confidence. Wholesale unit sales increased 32% compared with the first quarter of fiscal 2011. The improvement reflected a significant increase in appraisal traffic combined with the benefit of a continued strong appraisal buy rate. We believe appraisal traffic benefited from the lift in new car industry sales and related used vehicle trade-in activity and from the strength of used vehicle pricing."
7:33AM Vanguard Health Systems prices 25.0 mln share IPO at $18, below the $21-23 expected range (VHS) :
7:31AM Dril-Quip subsidiary has been awarded a contract valued at approximately US$39 mln by Murphy Sabah Oil to supply drilling and production equipment for the Kikeh Dry Tree Spar Platform (DRQ) 64.62 :
7:31AM Regency Energy & Energy Transfer Partners (ETP) announce new NGL pipeline project from West Texas as part of its Lone Star joint venture (RGNC) 25.22 : Cos announced that Lone Star NGL will construct an approximately 530-mile natural gas liquids pipeline that extends from Winkler County in west Texas to the Jackson County processing plant in Jackson County, Texas. In addition, Lone Star has secured capacity on ETP's recently-announced NGL pipeline from Jackson County to Mont Belvieu, Texas. Lone Star's new pipeline will have a minimum capacity of approximately 130,000 BPD with the potential to upsize the pipeline capacity depending on ongoing negotiations. The project currently has over 65% of the capacity subscribed with key producers and processors under 15-year agreements, and is expected to be completed by the first quarter of 2013. The estimated cost of the project is $700 mln, of which Energy Transfer will pay 70% and Regency will pay 30%.
7:27AM Transocean releases internal investigation report on causes of Macondo Well Incident; report concludes incident was the result of a succession of interrelated well design, construction, and temporary abandonment (RIG) 61.89 : Co releases an internal investigation report on the causes of the April 20, 2010, Macondo well incident in the Gulf of Mexico. The report concludes that the Macondo incident was the result of a succession of interrelated well design, construction, and temporary abandonment decisions that compromised the integrity of the well and compounded the likelihood of its failure. The decisions, many made by the operator, BP, in the two weeks leading up to the incident, were driven by BP's knowledge that the geological window for safe drilling was becoming increasingly narrow. Specifically, BP was concerned that downhole pressure, whether exerted by heavy drilling mud used to maintain well control or by pumping cement to seal the well, would exceed the fracture gradient and result in fluid losses to the formation, thus costing money and jeopardizing future production of oil.
7:17AM Aradigm enters $8.5 million royalty financing agreement (ARDM) 0.18 : Under the terms of the royalty financing agreement, Aradigm received a loan of $8.5 million, less fees, transaction and legal expenses (estimated to be approximately $400,000) and an additional $250,000 set aside for an Interest Reserve Account.
7:14AM On The Wires (WIRES) :
* Mattson Technology (MTSN) announced that it has received follow-on multi-system orders and has already begun shipping the paradigmE etch and SUPREMA strip tools. * VIVUS (VVUS) announced that multiple abstracts have been accepted for presentation at the upcoming American Diabetes Association meeting to be held June 24th to June 28th. Top-line results from the SEQUEL study have been previously presented but the ADA presentations represent the first detailed presentation of glycemic data to ADA members. * Pharmasset (VRUS) announces that the U.S. Patent and Trademark Office has issued U.S. patent titled "Nucleoside Phosphoramidate Prodrugs". This patent generally relates to the composition of matter of PSI-7977 and its diastereomeric mixture for the treatment of hepatitis C virus (HCV). PSI-7977, a uracil nucleotide analogue polymerase inhibitor of HCV, is being studied in multiple phase 2 trials. * National Semiconductor (NSM) announced that at a special meeting of National's stockholders held today, the stockholders approved the adoption of the merger agreement by and among National, Texas Instruments and Orion Merger, a subsidiary of TI. Pursuant to the merger agreement, Merger Sub will be merged with and into National, with National as the surviving corporation and a subsidiary of TI, in exchange for the payment to National's stockholders of $25.00 per share in cash. * VASCO Data Security (VDSI) announced that Indiana University has deployed DIGIPASS authentication to provide secure access to its institutional data and online applications. * EpiCept (EPCT) announced that it has applied for a primary listing on the Nasdaq OMX Stockholm Exchange in recognition of the Company's large Swedish shareholding base and the historical trading volume of the Company's common stock on the Exchange. * Rentrak (RENT) announced an agreement with MediaBank, which provides workflow systems, analytics platforms, and agency financial tools that deliver cross-media intelligence and efficiency for media planners, buyers, and vendors, at all levels of the market. * Lihua International (LIWA) announced that it has received an Environmental Import License from the Ministry of Environmental Protection of the People's Republic of China.
7:03AM Discovery Labs presents data data highlighting co's Proprietary Aerosol Drug Delivery Technology (DSCO) 2.06 : Co announces that scientific data relating to the Company's proprietary aerosolization technology platform was presented at the 2011 International Society for Aerosols in Medicine meeting. The objective of this study was to test a series of proprietary patient adaptors designed to effectively interface with conventional ventilation technologies to optimize delivery of aerosolized medications for patients requiring positive pressure ventilator support. The investigators concluded that the novel patient interface significantly reduced gas dilution when administered during CPAP respiratory support without increasing flow resistance, potentially improving aerosolized drug delivery to patients receiving positive pressure ventilator support.
7:03AM Aurizon Mines reports Deeper Drilling at Marban Reveals Added Upside With 5.3 Grams of Gold Per Tonne Over 12.8 Metres (AZK) 5.50 : Co announces latest drilling results at the Marban Block property, located in the Malartic gold camp, Abitibi region of Quebec. Highlights from 23 new drill holes include 5.3 grams of gold per tonne over 12.8 metres (MB-11-191) obtained along the depth extension of the footwall shear zone at the Marban deposit at approximately 400 metres below surface. The intersection has opened up significant potential to increase the gold resources at depth at Marban.
7:01AM Republic Airways announces Order for 80 Airbus NEO Aircraft (RJET) 4.58 : Co signed a letter of intent with Airbus to purchase 40 A319neo and 40 A320neo aircraft. The aircraft, which will be powered by CFM's LEAP-X engines, will be flown by Republic's Frontier Airlines subsidiary.
6:47AM Realty Income increases common stock monthly dividend to $0.144875/share from $0.1445625/share (O) 33.78 :
6:29AM Carter Holdings to acquire Bonnie Togs for up to ~ $98 mln (CRI) 30.90 : Co says the acquisition is expected to be accretive to Carter's fiscal 2011 adjusted earnings per share, excluding the impact of non-recurring purchase accounting-related charges. The total purchase price is comprised of a cash payment upon closing of the transaction of ~ $62 mln. The balance of the purchase price, or ~ $36 mln, is payable upon attainment of certain earnings objectives over a four-year measurement period. The transaction is expected to close within the next 45 days.
6:12AM On The Wires (WIRES) :
* Acacia Research (ACTG) announced that its Document Generation subsidiary has entered into a license agreement with Allmeds covering patents relating to document generation software. The agreement resolves litigation that was pending in the U.S. District Court for the Southern District of Illinois and the U.S. District Court for the Eastern District of Texas with respect to certain Allmeds products. * Pebblebrook Hotel Trust (PEB) and the Denihan Hospitality Group announced that they have entered into agreements pursuant to which Pebblebrook will invest in a joint venture with affiliates of Denihan that own six upper upscale hotels in Manhattan. * Triangle Capital (TCAP) announced that it closed an $8.0 mln senior subordinated debt investment in PowerDirect Marketing. * China Nutrifruit Group (CNGL) announced that the co is currently making technological upgrades to its glazed fruit production line in Daqing and concentrate juice production line in Mudanjiang. The Company expects to complete the upgrade process by July 2011. Co also announced that they will complete construction of its new concentrate paste production facility in Zhaoyuan, Heilongjiang Province and begin trial production in July 2011.
6:03AM Quanta Services increases stock repurchase plan by $50 mln to $150 mln (PWR) 19.23 : Since the program became effective on May 9, 2011, co has repurchased a total of ~4.9 mln shares in the open market for a total cost of ~$93.8 mln.
5:56AM On The Wires (WIRES) :
* Raytheon (RTN) and its international partners will introduce a new ground-based Evolved SeaSparrow Missile at the Paris Air Show. The ground-based ESSM features multi-use capabilities for both naval and land-based applications. * Elbit Systems (ESLT) announced that it was awarded a contract valued in excess of $15 mln by Elettronica S.p.A to participate in a program to supply the ELT/572 DIRCM system for installation on various platforms of the Italian Air Force, including the C130J, C27J and AW101. The contract will be performed over the next three years. * Flextronics Global Services, a business unit of Flextronics (FLEX), announced that it is expanding its service offering to the medical market in Europe through ISO 13485 medical certification at its Budapest facility. * SeaChange (SEAC) announced an integration and distribution collaboration to offer NexGuard forensic watermarking for premium video-on-demand, critical for cable operators looking to launch Home Premiere services, as mandated by the Hollywood studios to grant access to early window content. * Boeing (BA) and UTair Aviation, Russia announced an agreement for the purchase of 40 Next-Generation Boeing 737 airplanes, comprised of seven 737-900ERs and 33 737-800s. * Harvest Natural Resources (HNR) announced drilling operations have resumed in its Budong-Budong Block. The KD-1 well spud on June 20, 2011, is the second of two planned exploration wells located in the Budong-Budong Block, onshore West Sulawesi.
5:29AM Real Goods Solar and Alteris Renewables to merge (RSOL) 2.48 : Real Goods Solar (RSOL) and Earth Friendly Energy Group Holdings, Alteris Renewables, announce that they have entered into a definitive merger agreement merger. For accounting purposes, Alteris' financial results will be consolidated with Real Goods beginning immediately.
3:01AM Dr. Reddy's launches Levofloxacin tablets (RDY) 34.02 : Co announces that it has launched Levofloxacin tablets (250 mg, 500 mg and 750 mg), a bioequivalent generic version of LEVAQUIN tablets in the US market, following the approval by the FDA of co's ANDA for Levofloxacin tablets. The LEVAQUIN brand (brand of Ortho-McNeil-Janssen Pharmaceuticals) had U.S. sales of ~$ 1.1 bln for the most recent twelve months ending March 2011 according to IMS Health.
2:56AM On The Wires (WIRES) :
* The U-Haul (UHAL) of North Indiana and South Cook County today announced that it has expanded the U-Haul network of self-storage locations with its purchase of Simply Self Storage with more than 700 self-storage units, of which 470 are climate controlled. * New Mexico Public Regulation Commission hearing examiner issued a recommended decision today regarding the ongoing electric rate case proposal for PNM, PNM Resources' (PNM) New Mexico utility. The hearing examiner has recommended that state regulators approve - with modifications - an agreement that includes a two phase, $85 mln rate increase. * Freescale Semiconductor (FSL) introduced a new high-precision pressure sensor for altitude detection designed to help users further leverage advanced navigation capabilities and emerging location-based services such as GPS assist and e911. * Ford (F) is working with its voice technology partner and industry leader Nuance Communications (NUAN) to find a way to make voice recognition even easier and more intuitive for drivers to successfully use. * J.P. Morgan (JPM) has launched a full prime brokerage offering for clients in Europe, the Middle East and Africa. * Biogen Idec (BIIB) and Elan (ELN) announced that the European Commission has approved the inclusion of anti-JC virus antibody status as an additional factor to aid in stratifying patients at risk for developing progressive multifocal leukoencephalopathy in the Summary of Product Characteristics for TYSABRI in the European Union. * McAfee, subsidiary of Intel (INTC), announced that NTT DOCOMO will provide McAfee VirusScan Mobile as an exclusive offering for NTT DOCOMO users of Android smartphones. * China Medical Technologies (CMED) unit has entered into a strategic collaboration with Gaoxin Da An Healthcare Investment to co-market and promote molecular diagnostic technologies for clinical diagnostic applications in China. * Volvo (VOLVY) Aero has signed an agreement with the aircraft engine manufacturer Pratt & Whitney regarding its participation in Pratt & Whitney's PurePower PW1100G engine. For Volvo Aero, the deal is expected to generate sales of around SEK40 bln over a 50 year period. Sales are expected to ramp up in the second half of this decade.
2:21AM Nokia and Accenture (ACN) finalize Symbian software development and support services outsourcing agreement (NOK) 6.06 : Nokia (NOK) and Accenture (ACN) have finalized an agreement for Nokia to outsource Symbian software development and support activities to Accenture. Under the agreement, ACN will provide Symbian based software development and support services to Nokia through 2016. Approximately 2,800 Nokia employees located in China, Finland, India, United Kingdom and the United States, are expected to transfer to Accenture at closing, which is expected to take place in the early part of October, 2011.
2:09AM Dentsply agrees to acquire Astra Tech from AstraZeneca (AZN) for ~1.8 bln; expected to be accretive to adjusted earnings per share by $0.12-0.17 in the first full year (XRAY) 37.61 : Co announces it has signed a definitive agreement to acquire Astra Tech from AstraZeneca for ~$1.8 bln in cash. The co intends to finance the transaction with a combination of cash on hand, commercial paper and long-term debt. The combination with Astra Tech is expected to accelerate DENTSPLY's revenue (~+25% increase of revs) and earnings growth rates. Additionally, the transaction is expected to be accretive to adjusted earnings per share by $0.12-0.17 in the first full year following the close of the transaction; $0.30-0.40 per share by the third year, including the benefits of sales and operational synergies. Including transaction-related amortization, the transaction is expected to be modestly dilutive to earnings per share in the first full year and accretive thereafter.
1:52AM Apogee Enterpr beats by $0.03, beats on revs; guides FY12 revs above consensus (APOG) 12.55 : Reports Q1 (May) loss of $0.08 per share, $0.03 better than the Capital IQ Consensus Estimate of ($0.11); revenues rose 7.2% year/year to $153.3 mln vs the $146.9 mln consensus. Co issues upside guidance for FY12, sees FY12 revs of to exceed 10% growth YoY to ~$641 mln vs. $626.40 mln Capital IQ Consensus Estimate. Backlog ended at $247.0 mln, compared to $237.2 mln at the end of fiscal 2011 and $214.9 mln in the prior-year period. With regard to co's outlook, co states: "Our outlook for fiscal 2012 has improved slightly as we've become more confident that architectural glass price increases should flow through as the year progresses and stronger volume is anticipated for our architectural glass and storefront businesses. For fiscal 2012, we now expect revenue growth to exceed 10 percent, and we expect to be slightly profitable for the year. This outlook, in part, depends on our ability to fill in open fourth-quarter capacity in our architectural segment. We also expect Apogee to generate positive cash flow from operations in fiscal 2012."
1:40AM Yahoo: joint statement from Alibaba Group, Yahoo, and Softbank regarding Alipay (YHOO) 15.35 : In response to inquiries regarding the status of their Alipay discussions, Yahoo, Softbank, and Alibaba Group issued the following statement: "Alibaba Group and its major shareholders, Yahoo! Inc. and Softbank Corp. continue to be engaged in constructive negotiations, and we have made substantive and encouraging progress toward an agreement regarding Alipay. Our objective is to reach an agreement in a timely manner that serves the interests of all stakeholders. The companies will not comment in further detail until it is appropriate to do so."
1:29AM Six Flags files S-3 registration statement to cover additional shares resulting from stock split (SIX) 74.60 :
1:23AM U-Store-It completes $100 mln 3.75% five-year and $100 mln 4.52% seven-year unsecured term loans (YSI) 10.29 :
1:21AM AMAG Pharma provides update to Feraheme Label (AMAG) 16.54 : Co announces it has updated the product label for Feraheme Injection for Intravenous use. This update is based on the FDA's approval of the co's Label Supplement submission, which included additional post-marketing safety data. Feraheme is indicated for the treatment of iron deficiency anemia in adult chronic kidney disease patients. The updated product label, also called a package insert includes, among other things: Modifications to the Contraindications section removing "evidence of iron overload" and "anemia not caused by iron deficiency."
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