4:05 pm : The S&P 500 lost 2.5% this week, and about two-thirds of that loss took place on Monday as concerns intensified about Italy's fiscal situation. Europe's fragile financial state remained in focus throughout the week, but commentary about the potential for QE3 took over mid-week after the FOMC minutes revealed discussion among Fed members about the potential for additional monetary policy stimulus, depending on how economic conditions evolve.
Ben Bernanke reiterated this stance in Wednesday's appearance in front of the House Financial Committee, but on Thursday he acknowledged that the Fed is not prepared to act at this point in time. It seems only natural that the Fed would be discussing such matters given the recent deterioration in economic data, but the mere discussion of the potential doesn't necessarily increase the odds of further accommodation (weakening employment data amid a disinflationary environment would). The market retraced the initial gains made in reaction to the FOMC minutes and day one of the Bernanke speech.
Then toward the end of the week, focus shifted to ratings agency warnings about the U.S. credit rating. Both Moody's and Standard & Poor's said the U.S. was at risk for a downgrade if it isn't able to agree on a debt ceiling increase in time. There was a negative response in the market to each of these actions, but the markets quickly recouped their losses, as the warnings didn't really bring about anything that wasn't already known.
Also today, the market digested the second round of European bank 'stress tests.' The tests showed 82 of 90 banks passed with a total of 20 banks seeing their Core Tier 1 Requirements below the 5% threshold over the two-year time horizon. The count shows five Spanish banks, two Greek banks, and one Austrian bank failing the test. While the test did show some failures, many are already discounting the tests as using unrealistically favorable loss assumptions.
After Monday's large drop, the broader market had a hard time maintaining traction in either direction, but the overarching drift has been to the downside, despite positive earnings reports from Google (GOOG), JP Morgan (JPM) and Citigroup (C). Next week the earnings floodgates open with more than 300 companies reporting their Q2 results, including IBM, MOS, STLD, BAC, KO, GS, JNJ, WFC, AAPL, YHOO, ABT, MO, BLK, USB, UTX, ADS, AXP, BIDU, EBAY, FFIV, INTC, QCOM, T, DO, LLY, F, FCX, MS, PEP, SNDK, WDC, CAT, GE, HON, MCD, SLB, VZ, and XRX, to name a few.
This week's data didn't do much to excite investors either. Looking at today's data, we got a disappointing Empire Manufacturing Survey reading of -3.8 for July. The consensus among economists surveyed by Briefing.com had called for a reading of 1.0 after a reading of -7.8 was posted for the prior month. Consumer price inflation data were also just reported. Overall CPI for June decreased by 0.2%, which is a bit cooler than the 0.1% decrease that had been broadly anticipated. Core CPI increased by 0.3%, which is slightly hotter with the Briefing.com consensus call for a 0.2% increase.
3:35 pm : Crude oil gained steam in the afternoon session and recovered almost one point as it rose through the $97 mark. By the end of today's floor trading session, crude was about $1.55/barrel higher at $97.24/barrel, which is about a half of a point under its session high.
Natural gas extended gains this afternoon and hit new highs on today's session at $4.53/MMBtu. It closed just under that high at $4.52/MMBtu, up 3.7%.
Precious metals continued on the uptrend that began this morning. Gold ran to session highs of $1592.40/oz and remains near that level in electronic trade. Silver saw the same uptrend and finished the day 1% higher at $39.07/oz.
Grains ended the day mixed with corn futures 6 cents higher at $6.85/bu, wheat 12 cents lower at $6.95/bu and soybeans up 3 cents at $13.87/bu.DJ30 +29.74 NASDAQ +16.26 SP500 +5.46 NASDAQ Adv/Vol/Dec 1465/1470 mln/1103 NYSE Adv/Vol/Dec 1650/786 mln/1317
3:00 pm : The major indices trade mixed as the Nasdaq continues to set the pace with a gain of 0.5%.
Thermal imaging company FLIR Systems (FLIR $28.89, -3.22) is lower by 10% today after issuing downside guidance following yesterday's closing bell. The company expects to post revenues of approximately $390 million vs. $410.3 million Capital IQ Consensus Estimates and EPS of approximately $0.35, excluding items, versus the $0.39 consensus. Results for the company's Commercial Systems division remained strong, while continued weak demand in the Government Systems division negatively impacted results for the quarter. DJ30 -6.36 NASDAQ +11.48 SP500 +1.25 NASDAQ Adv/Vol/Dec 1295/1.34 bln/1248 NYSE Adv/Vol/Dec 1441/719.9 mln/1554
2:30 pm : The mixed trade for equities continues with the Nasdaq and S&P holding gains while the Dow holds just below the flat line.
Shares of Bank of America (BAC $9.93, -0.14) slipped below the $10 threshold and now trade at their worst levels since May 2009. The stock moved to its session low following the release of its June card metrics. The company reported June default amount net of recoveries of 6.97% versus 8.03% in May (-106 bps m/m change) and June total delinquencies of 4.16% versus 4.28% in May (-12 bps m/m change).DJ30 -16.05 NASDAQ +13.92 SP500 +0.33 NASDAQ Adv/Vol/Dec 1267/1.24 bln/1264 NYSE Adv/Vol/Dec 1406/675.3 mln/1577
2:00 pm : The major averages are mixed as the Nasdaq leads the way with a gain of 0.6%. The S&P holds a 0.1% gain while the Dow is trading lower by that margin.
Treasuries continue to hold small gains with the complex seeing little reaction to the European 'stress test' results. Action has quieted down dramatically from this morning's torrid pace with maturities trading in a tight range following the move associated with the weak Michigan Sentiment Survey. The 2-yr yield continues to hover within a couple of bps of its 0.32% record low with today's buying dropping it to 0.3589%. A modest gain in the 10-yr has its yield lower by 4 bps to 2.917% while underperformance by the 30-yr has pulled its yield higher by almost 1 bp to 4.265%. Flattening continues along the yield curve with the 2-10-yr spread tighter at 256.9. Meanwhile, precious metals hover near session highs with gold up $1 to $1590 and silver up $0.30 near $39.00.DJ30 -2.50 NASDAQ +20.53 SP500 +2.38 NASDAQ Adv/Vol/Dec 1413/1.15 bln/1110 NYSE Adv/Vol/Dec 1560/633.2 mln/1424
1:30 pm : The market is trading around the middle of its intraday range, just above the flat line as we enter afternoon trade of this expiration Friday. There has been a lot to digest ahead of the weekend, including a Standard & Poors warning on the U.S. debt rating, the European Stress Test results, the political commentary about the lack of progress on debt talks, along with earnings from GOOG (+13%) and C (-1%).
Although there were a few important earnings releases this week (GOOG, C, JPM, AA), the floodgates open up next week with over 300 companies reporting their Q2 results, including the following names of interest:
1:00 pm : The major indices continue to hold gains (Nasdaq +0.7%, S&P +0.2%, Dow UNCH) in afternoon trade as strong earnings from Google (GOOG $597.32, +68.38) and Citigroup (C $38.70, -0.32), coupled with M&A activity, has helped offset this morning's Michigan Sentiment Survey miss.
Google is higher by 12.9% after reporting strong earnings following yesterday's close. Specifically, Google reported Q2 EPS of $8.74 per share, excluding non-recurring items, $0.91 better than the Capital IQ Consensus Estimate of $7.83. Net revenues (subtracting traffic acquisition costs - TAC) rose 36% YoY to $6.92 billion versus the $6.55 billion consensus.
Citigroup has slipped into negative territory, trading down 0.9% after reporting EPS of $1.09 per share, vs. the Capital IQ Consensus Estimate of $0.96. Revenues rose 4.5% year/year to $20.62 billion versus the $19.76 billion consensus.
Several energy names are higher this afternoon after BHP Billiton (BHP $91.09, -1.19) announced it will acquire Petrohawk Energy (HK $38.18, +14.69) for $38.75 per share, representing a 65% premium to yesterday's closing price. Related names seeing a boost include Chesapeake Energy (CHK $32.24, +2.03), Cabot Oil & Gas (COG $67.89, +5.29), and Pioneer Natural Resources (PXD $93.00, +6.91) as analysts scramble to adjust valuations because of the takeout.
European bank stocks are mixed following the results of the second round of European 'stress tests.' The tests showed 82 of 90 banks passed with a total of 20 banks seeing their Core Tier 1 Requirements below the 5% threshold over the two-year time horizon. The count shows five Spanish banks, two Greek banks, and one Austrian bank failing the test. Deutsche Bank (DB $52.54, -0.32) spiked immediately following the results, but has since pared those gains. Barclays (BCS $14.61, +0.05) has fared a little better as it has been able to hold a small gain. DJ30 -0.91 NASDAQ +18.76 SP500 +2.63 NASDAQ Adv/Vol/Dec 1408/1.01 bln/1083 NYSE Adv/Vol/Dec 1548/574.3 mln/1421
12:30 pm : The major market averages pushed higher following the results of the European stress tests. Currently, the Nasdaq is seeing a gain of 0.7% with the S&P and Dow trailing with respective gains of 0.3% and 0.1%.
European bank stocks are on the move following the results of the second round of European 'stress tests.' The tests showed 82 of 90 banks passed with a total of 20 banks seeing their Core Tier 1 Requirements below the 5% threshold for the two-year time horizon. Sixteen of the 90 banks will need to improve their capital buffers as their core Tier 1 Requirements are between 5% and 6%. The count shows five Spanish banks, two Greek banks, and one Austrian bank failing the test. Deutsche Bank (DB $52.57, -0.29) saw a spike immediately following the results, but has since pared those gains. Barclays (BCS $14.68, +0.12) is seeing a similar trading pattern play out in its shares. DJ30 +12.18 NASDAQ +20.32 SP500 +3.68 NASDAQ Adv/Vol/Dec 1443/932.3 mln/1041 NYSE Adv/Vol/Dec 1553/542.3 mln/1373
11:55 am : The major indices continue to hold small gains as trading approaches the noon hour. Strength in technology has the Nasdaq setting today's pace with an advance of 0.6%. The S&P and Dow trail with gains of 0.3% and 0.1% respectively.
The dollar index has slipped back to into negative territory, hammered down in response to the weak Michigan Sentiment Survey number. Currently, the index holds fractional losses as it trades near the session low of 75.11. Foreign exchange markets are relatively quiet with most pairs trading near the flat line. The euro is flat at 1.4145 as markets await the release of the European 'stress tests.' Market commentary is suggesting the tests will adequately test the health of the banks. The Aussie dollar is lower by 75 pips this morning, trading down to 1.0645 as it remains stuck between its 1.05/1.08 trading range that has been in place since mid-May. The pound, the yen, and the Swiss franc all hover near unchanged as the lackluster session progresses.DJ30 +17.59 NASDAQ +17.94 SP500 +4.09 NASDAQ Adv/Vol/Dec 1427/827.0 mln/1040 NYSE Adv/Vol/Dec 1533/492.9 mln/1399
11:30 am : The major market averages are all trading in positive territory with the Nasdaq (+0.7%) setting the pace. Energy shares are posting a collective gain of 1.8% to lead the way higher.
Several energy names are seeing strong gains this morning after the announcement that BHP Billiton (BHP $91.42, -0.86) will acquire Petrohawk Energy (HK $38.19, +14.70) for $38.75 per share, representing a 65% premium to yesterday's closing price. Related names seeing a boost include Chesapeake Energy (CHK $2.38, +2.17), Cabot Oil & Gas (COG $67.77, +5.17), and Pioneer Natural Resources (PXD $93.08, +6.99) as analysts scramble to adjust valuations because of the takeout. DJ30 +24.82 NASDAQ +15.46 SP500 +4.62 NASDAQ Adv/Vol/Dec 1450/734.6 mln/985 NYSE Adv/Vol/Dec 1576/457.3 mln/1312
11:00 am : While the broader market is flat, there are several individual stocks making big moves. Google (GOOG) is +12.0% after reporting strong earnings. Specifically, Google reported Q2 EPS of $8.74 per share, excluding non-recurring items, $0.91 better than the Capital IQ Consensus Estimate of $7.83; net revenues (subtracting traffic acquisition costs -- TAC) rose 36% YoY to $6.92 billion versus the $6.55 billion consensus.
Citigroup (C) is +0.9% after reporting EPS of $1.09 per share, vs. the Capital IQ Consensus Estimate of $0.96; revenues rose 4.5% year/year to $20.62 billion vs the $19.76 billion consensus; the call starts at 11:00 ET.
Petrohawk Energy (HK), is +62.7% on reports indicating that BHP Billiton (BHP) will acquire the company for $38.75/share, representing a 65% premium to yesterday's closing price. Petrohawk Energy is an oil and gas E&P name with exposure to the Haynesville Shale, the Eagle Ford Shale, and the Midland and Delaware Basins. These reports have caused related names to move sharply higher in early trade as market participants readjust valuations based on this potential takeout.
Clorox (CLX) is +6.8% after confirming that it has received an unsolicited conditional proposal from Icahn Enterprises to acquire the co for $76.50 per share, subject to due diligence, financing and other conditions. Clorox's board of directors, in consultation with its financial and legal advisers, will review the proposal in due course. DJ30 -2.39 NASDAQ +11..30 SP500 +1.47 NASDAQ Adv/Vol/Dec 1392/636.3 mln/1009 NYSE Adv/Vol/Dec 1447/409.3 mln/1423
10:30 am : August crude oil rallied to its best levels of the morning, at $97.38 per barrel, shortly after the open of pit trade. However, prices have since illed back close to a point form those levels, pressured by worse-than-expected econ data. Concerns about the debt limit in the US also appear to weighing on prices. August natural gas is higher by $0.13, at $4.50 per MMBtu, this morning, aided by forecasts for warm weather. It notched highs at $4.53 following the open of pit trade, but has since pulled back from those levels.
August gold is currently lower by 0.1% at $1587.40 per ounce, while Sept silver is higher by 0.2% at $38.78 per ounce. Both metals have recouped overnight losses to trade back to near the flat line.DJ30 -24.45 NASDAQ +7.50 SP500 +4.07 NASDAQ Adv/Vol/Dec 1203/507.8 mln/1140 NYSE Adv/Vol/Dec 1323/356.8 mln/1485
10:00 am : Stocks have erased the majority of their gains (Nasdaq +0.4%, S&P +0.2% Dow +0.1%) after a rather disappointing Consumer Sentiment Survey for July from the University of Michigan. The Sentiment Survey came in at 63.8, which is far worse than the reading of 71.4 that had been broadly expected among economists polled by Briefing.com. The July reading is also less than the 71.5 that had been posted for the prior month.DJ30 +4.99 NASDAQ +9.61 SP500 +2.08 NASDAQ Adv/Vol/Dec 1242/308.6 mln/1011 NYSE Adv/Vol/Dec 1409/274.3 mln/1317
09:45 am : The major market averages are holding strong gains in the early going. The Nasdaq leads the way with a gain of 0.7% while the S&P and Dow trail with respective gains of 0.5% and 0.4%. IT and energy are the best performing sectors in the S&P 500 with gains of 1.1% and 1.5% respectively.
Google (GOOG) is higher by more than 12% in response to its blowout quarter while Citigroup (C) is up 2.8% following its strong results. July Michigan Sentiment will be released at 9:55 a.m. ET.DJ30 +47.64 NASDAQ +14.60 SP500 +5.71 NASDAQ Vol 226.7 mln NYSE Vol 237. 8 mln
09:16 am : [BRIEFING.COM] S&P futures vs fair value: +7.70. Nasdaq futures vs fair value: +30.00. Equity futures are pointing to solid gains this morning after Google (GOOG) and Citigroup (C) announced strong results. Google earned $8.74 per share (Capital IQ Consensus Estimate of $7.83) and saw gross revenue surge to $9.03 billion (Capital IQ consensus estimate of $8.63 billion). Citigroup beat on the top and bottom lines as revenues climbed to $20.62 billion (Capital IQ Consensus Estimate of $19.76 billion) and it saw earnings per share of $1.09 (Capital IQ Consensus Estimate of $0.96).
Data has been rather mixed this morning as the Empire Manufacturing Survey disappointed while CPI and Core CPI were relatively in-line. More recently, industrial production for June reportedly increased by 0.2%, which is in-line with expectations. Capacity Utilization was also just released, showing a reading of 76.7% which was weaker than the 76.8% that had been expected by the Briefing.com consensus.
08:59 am : [BRIEFING.COM] S&P futures vs fair value: +4.90. Nasdaq futures vs fair value: +25.00. The major Asian indices closed mixed (Nikkei +0.4%, Hang Seng -0.3%, Shanghai +0.3%) after the beginning of the session saw S&P place the US 'AAA/A-1+' ratings on CreditWatch Negative. The Bank of Korea tweaked its forecast, reducing growth to +4.3% from +4.5% and raising CPI to +4.0% from +3.9%. Energy-related names underperformed in Japan with Inpex slipping 1.5%. Real estate shares were hit hard in Hong Kong as Chinese Overseas Land and Chinese Resources Land shed 4.9% and 2.9% respectively. Weakness in real estate shares was also present in Shanghai as Poly Real Estate fell 2.8% after Beijing announced increased property restrictions.
European indices are mixed in afternoon trade (FTSE UNCH, CAC -0.3%, DAX +0.1%) as markets prepare for the latest European stress tests. Financials across the region are weaker ahead of the results with Commerzbank (-1.5%) and Credit Agricole (-1.5%) leading the way lower in Germany and France. British banks are under less pressure as Barclays trades down 0.6%. Recent strength in German automakers persists with Volkswagen and BMW up 2.0% and 1.6% respectively.
08:32 am : [BRIEFING.COM] S&P futures vs fair value: +4.30. Nasdaq futures vs fair value: +21.00. Equity futures edged higher to their best levels of the morning following the top and bottom line beats by Citigroup (C) before slipping on the data release. The banking giant posted earnings per share of $1.09 (Capital IQ Consensus Estimate of $0.96) and saw revenues climb to $20.62 billion (Capital IQ Consensus Estimate of $19.76 billion).
So far, this morning's data has featured a disappointing Empire Manufacturing Survey reading of -3.8 for July. The consensus among economists surveyed by Briefing.com had called for a reading of 1.0 after a reading of -7.8 was posted for the prior month. Consumer price inflation data were also just reported. Overall CPI for June decreased by 0.2%, which is a bit cooler than the 0.1% decrease that had been broadly anticipated. Core CPI increased by 0.3%, which is slightly hotter with the Briefing.com consensus call for a 0.2% increase.
07:58 am : [BRIEFING.COM] S&P futures vs fair value: +5.00. Nasdaq futures vs fair value: +21.50. Equity futures are pointing to modest gains this morning after Google (GOOG) blew away earnings expectations following yesterday's closing bell on Wall Street. The search engine and advertising giant earned $8.74 per share (Capital IQ Consensus Estimate of $7.83) and saw gross revenue surge to $9.03 bln (Capital IQ consensus estimate of $8.63 bln). Banking giant Citigroup (C) is scheduled to release its second quarter results before the opening bell. Markets have been able to shrug off S&P placing the U.S. 'AAA/A-1+' ratings on CreditWatch Negative. Treasuries are little changed on the news with the 10-yr yield near 2.95%. A plethora of data is out this morning with CPI, core CPI, and Empire Manufacturing being released at 8:30 a.m. ET; industrial production and capacity utilization due out at 9:15 a.m. ET; and Michigan Sentiment crossing the wires at 9:55 a.m. ET.
06:40 am : [BRIEFING.COM] S&P futures vs fair value: +3.00. Nasdaq futures vs fair value: +18.00.
06:39 am : Nikkei...9974.47...+38.40...+0.40%. Hang Seng...21875.38...-64.80...-0.30%.
4:22PM Ameris Bank announces acquisition of One Georgia Bank and High Trust Bank (ABCB) 9.23 +0.09 : Co announced a definitive agreement with the Federal Deposit Insurance Corporation ("FDIC") to assume the deposits and certain assets of One Georgia Bank, a full-service bank with one location in Midtown Atlanta, Georgia, and also to assume the deposits and certain assets of High Trust Bank, a full-service bank with a main office in Stockbridge and a branch location in Leary, Georgia. The Georgia Department of Banking & Finance declared One Georgia Bank in Atlanta, and High Trust Bank, headquartered in Stockbridge closed today and appointed the FDIC as receiver for both financial institutions. The FDIC entered into a loss-share transaction and sold the assets and deposit liabilities of One Georgia Bank and High Trust Bank to Ameris Bank.
4:10PM Whirlpool reports that LG Electronics refrigerator patent case against the co is moving forward (WHR) 75.83 -0.80 : Following a federal court victory for LG Electronics earlier this month, which ordered a retrial in a long-standing refrigerator patent case between LG and Whirlpool Corporation, LG Electronics' USA announced today that the case has been set for an early retrial in the U.S. District Court of Delaware. In a scheduling conference today, Chief Judge Gregory M. Sleet set a trial date of Sept. 28, 2011, on the validity of two of Whirlpool's patents.
4:09PM McCormick & Schmick's reports that Tilman J. Fertitta Terminates Tender Offer for MSSR in Order to Participate in Sale Process (MSSR) 8.80 +0.09 : Tilman J. Fertitta announced that he is terminating, effective immediately, his previously announced tender offer to acquire, through his affiliate LSRI Holdings, Inc., a subsidiary of Landry's, Inc. (collectively, "Landry's"), all of the issued and outstanding shares of common stock of McCormick & Schmick's Seafood Restaurants for $9.25 per share, in order to participate in MSSR's previously announced sale process. Landry's has entered into a confidentiality agreement with MSSR to conduct due diligence in connection with a possible negotiated transaction with MSSR. The confidentiality agreement requires Landry's to terminate its current tender offer. The tender offer had been scheduled to expire at 5:00 p.m., New York City time, on July 29, 2011.
4:06PM Tanger Factory acquires Atlantic City outlets the walk and ocean city factory outlets for a combined acquisition price of $199.3 million (SKT) 28.00 +0.31 : The combined acquisition price of $199.3 mln consists of ~$125.8 mln in cash and the assumption of ~$73.5 mln of indebtedness, and also includes Phase III of Atlantic City Outlets, which is anticipated to close later this year.
4:01PM Liberty Media Capital announces semi-annual payment on 3.5% senior exchangeable debentures due 2031 (LCAPA) 86.83 +1.70 : Co announced a semi-annual payment to the holders of its 3.5% Senior Exchangeable Debentures due in 2031. The amount of the payment is $17.50 per $1,000 of original principal amount of the Debentures.
3:50PM Publicis Groupe SA signed a new EUR 1.2 bln 5-year multi-currency revolving credit facility (PUBGY.PK) 26.32 +0.17 : The Facility will be used for general corporate purposes and will replace co's revolving credit facility. Syndication was launched on June 21, 2011 for EUR 1.0 bln and closed well oversubscribed allowing Publicis Groupe to increase the Facility amount to EUR 1.2 bln.
3:36PM Earnings Calendar for the Week of July 18-22 (SUMRX) : Of the hundreds of companies set to report next week, some of the bigger names include:
3:32PM S&P SPDRs late day push in stock indices back toward early highs -- Dow +36, S&P +6, Nasdaq Comp +23 (SPY) :
3:25PM Apple late push back near opening high of 361.95 (AAPL) 361.84 +4.07 : The next level of note above is at its 52-wk close high from Feb at 363.13 with the Feb/52-wk intraday high at 364.90.
2:57PM NYMEX Energy Closing Prices (COMDX) : Crude oil settled higher by $1.55 to $97.24, natural gas rose 16 cents to close at $4.52, RBOB gasoline ended up 1 cent to $3.13, while heating oil finished higher by 4 cents to $3.12 (all Aug contracts).
2:51PM Index Change Reminder (INDXCH) : General Cable (BGC) will replace SRA International (SRX) in the S&P MidCap 400 index after the close of trading today.
2:28PM Stock indices dip to new afternoon lows -- Dow -22, S&P -0.4, Nasdaq Comp +10.5 (SPY) : Relative weakness (underperforming the S&P) has been noted in: Finance XLF, Reg Bank KRE, Semi SMH, Disk Drive, Airline.
2:27PM Hampton Roads Bankshares: ECB Bancorp (ECBE) announces agreement to purchase seven north carolina branches from Hampton Roads Bankshares; The terms of the transaction were not disclosed (HMPR) 8.15 +0.05 : Under the Agreement, the East Carolina Bank will purchase all deposits and selected assets associated with seven Gateway Bank branches in North Carolina: Preston Corners, Plymouth, Roper, Chapel Hill, Falls of Neuse, Lake Boone and Wilmington. As of June 30, 2011, deposits in these branches totaled $195 mln. Under the terms of the agreement, Bank of Hampton Roads expects to close the Roper branch and consolidate its accounts into the Plymouth branch prior to the completion of this sale.
2:26PM Arch Chemicals: Lonza commences previously announced tender offer to acquire all of the outstanding shares of Arch Chemicals $47.20/share (ARJ) 47.63 +0.28 : The tender offer is scheduled to expire August 11, 2011.
2:22PM Goldman Sachs hovering near session low of 129.50 (GS) 129.56 -0.33 : Note that its 52-wk close low from June is at 129.26 with the 52-wk intraday low at 128.30.
1:57PM Financial Select Sector SPDR slips to minor new session low of 14.78 (XLF) 14.78 -0.10 : As mentioned earlier, its seven month close and intraday lows from June are at 14.73 and 14.62.
1:54PM General Moly resumed trading (GMO) 4.42 +0.23 :
1:52PM COMEX Metals Closing Prices (COMDX) : August gold finished higher by $1.20 to $1590.50, Sept silver ended up 30 cents to $38.99, while Sept copper gained 3.35 cents to close at $4.413.
1:45PM NYSE Euronext: Deutsche Boerse (DBOEY) shareholders approve proposed combination with NYSE Euronext (NYX) 34.21 +0.40 : Deutsche Boerse shareholders have approved the proposed combination with NYSE Euronext. According to final results disclosed by Deutsche Boerse, 82.43% of Deutsche Boerse shareholders tendered their shares by July 13, 2011 surpassing the requisite 75% needed to approve the proposed combination. Completion of the combination is subject to approval by the relevant competition and financial, securities and other regulatory authorities in the U.S. and Europe, as well as customary closing conditions.
1:44PM Univ Elec files patent infringement lawsuit against Logitech (LOGI) (UEIC) 24.51 -0.11 : Co announced it has filed a lawsuit against Logitech for infringement of 17 patents related to remote control technology. From July 1, 2004 until June 30, 2010, Logitech previously licensed certain patented technologies under a renewable license. Prior to the expiration of the license, throughout the remainder of 2010 and until the filing of this complaint, the co sought to negotiate reasonable business terms for the renewal of the license agreement but Logitech was not willing to do so. Meanwhile, Logitech continued selling its products that were previously covered under the license agreement without permission or proper payment, according to the lawsuit. The complaint relates to multiple Logitech remote control products, including the Harmony H300, H650, H700, H900, One, H1100, Logitech Revue (for Google TV), Harmony remote apps for iOS and Android platforms, and other applications and/or programming for touch screen mobile devices.
1:35PM General Moly announces water rights approval for Mt. Hope project (GMO) 4.21 +0.03 : Co says on July 15th, 2011, the Nevada State Engineer issued ruling 6127 granting the co's water right applications for the use of 11,300 acre-feet annually of water for mining purposes, which will facilitate the pumping of ~ 7,000 gallons per minute. The specific water right permits are anticipated to be issued following payment of statutory fees, and, following the State Engineer's approval of a Monitoring, Management, and Mitigation Plan prepared in cooperation with Eureka County, the water will be available for consumptive use. (stock halted)
1:09PM McDonald's underperforming today after setting new multi-year Thursday (MCD) 85.00 -0.81 : MCD broke above last week's intraday peak of 86.29 yesterday to reach a fresh multi-hear high (86.46) but it has underperformed thus far today. It is currently vacillating back above this week's close low at 84.96 (session low 84.92). Its intraday low/two week range low from Wed is at 84.81.
12:53PM Houston Wire & Cable announced new partnership agreement with AmerCable (HWCC) 16.38 +0.16 : Co announcwill be master supplier of their GEXOL brand Type P rig cable. AmerCable's GEXOL brand is a key addition to HWCC's inventory line of electrical and mechanical wire and cable.
12:47PM Stock indices slip back off midday bounce highs with Dow -3.5 and S&P +2 continuing to underperform -- Nasdaq Comp +16 (SPY) :
12:29PM Allied Irish Banks confirms stress test results (AIB) 1.87 +0.22 : The published results confirm that in all scenarios tested, AIB exceeds the EBA stress test threshold of 5% Core Tier 1 capital ratio and a significant capital surplus is evident in both the base and stress scenarios... The EBA 2012 stress scenario expects AIB, post recapitalisation, to have a Core Tier 1 capital ratio of 11.7% (including EUR 1.4 bln contingent capital). There were also additional significant methodology differences applied to AIB in the EBA stress test versus PCAR including future balance sheet size, higher risk weightings, application of higher funding costs and treatment of sovereign and bank credit losses.
12:06PM FLY Leasing correction: FLY Q2 dividend is unchanged QoQ (FLY) 12.84 +0.16 : Earlier we reported that FLY increased its Q2 dividend 25% QoQ to $0.20; the $0.20 dividend declaration is actually unchaged QoQ. The prior comment has been removed
12:04PM Stock indices edge to minor new rebound highs amid Dollar weakness -- Dow +36, S&P +6.4, Nasdaq Comp +21 (SPY) :
11:57AM Crude ticks to new highs at $97.65, testing its 50-day at $97.62; now up $1.89 to $97.58 (COMDX) :
11:54AM Ebix issues commentary on future earnings outlook (EBIX) 17.88 -0.13 : Co announced strong growth in cash during Q2 of ~$19.7 mln. The co started Q2 with $35.6 mln of cash. Co paid ~$23.8 mln in cash in Q2 for stock buybacks, $6.8 mln in cash to Rennes Foundation for retiring a convertible note, $1.67 mln in cash towards debt reduction, $0.6 mln in cash towards earn outs, and 0.7 mln in cash towards non-operating acquisition related severances. After paying ~$33.5 mln in cash in Q2 of 2011 towards non-operating activities, the co's cash balance as of 30th June 2011 was ~$23.8 mln... Co also revised forecasted effective tax rate to increase to 16-20% between now and the 2013. Since co has net operating loss carry forwards of $ 65.8 mln in the United States, any income tax expense is expected to be largely a non-cash expense until the net operating loss carry forwards are utilized... Co says that it believes that the momentum being experienced in its sales activities, coupled with its recent decision to increase its sales staffing considerably, is expected to allow Ebix to continue to grow its EPS consistently, in spite of the increased tax forecast.
11:49AM Delta Air Lines plans to adjust flying in 24 small markets; retires Saab fleet, cites $14 million in annual loss (DAL) 8.47 -0.04 : Airline retires Saab fleet, cites $14 mln in annual loss with average load factor of 52% for 24 underperforming markets, will apply for increased Essential Air Service subsidy in nine markets.
11:38AM Pall Corp acquires Brazilian distribution partner, Engefiltro; terms not disclosed (PLL) 54.42 -0.05 : Co has signed a definitive agreement to acquire its long-time Brazilian distribution partner, Engefiltro. The acquisition will strengthen Pall's capabilities to support customers in the fast-growing Latin American market. The transaction is expected to be completed by the end of the month. Terms of the deal were not disclosed.
11:25AM Financial Select Sector SPDR back to positive ground (XLF) 14.90 +0.02 : The XLF dropped to a new low for the week/month this morning with it attempting to stabilize over the last 45 minutes after holding above its June/seven month close low at 14.73 (session low 14.79). The XLF needs to breach and hold above initial resistances at 14.90 and 15.00 in order to begin to neutralize the negative bias off last week's high -- AXP, BAC, BK, GS, MS, JPM, STT, USB, WFC, BBT.
11:13AM Seeing some relative strength in recent action in Energy/Commodity -- SLV, GDX, JJC, XLB, XLE, OIH, MOO and Rail (TECHX) :
11:13AM SRA Intl shareholders approve merger agreement with affiliates of providence equity partners (SRX) 31.24 +0.02 : The consummation of the acquisition of SRA by an affiliate of Providence remains subject to the satisfaction or waiver of a number of customary closing conditions set forth in the merger agreement.
10:58AM IGI, Inc. appoints Jenniffer Collins to CFO; effective July 21st (IG) 1.05 -0.03 : Collins also served as Corporate Controller for Orchid Cellmark, Inc., a biotechnology company, and Director of Finance and Investor Relations for Tellium, Inc. an optical switching company. Her background also includes seven years of public accounting experience, including a position with Pricewaterhouse Coopers.
10:55AM Comtech Telecom announces a $4.6 mln order to aupport the U.S. Army's MTS program (CMTL) 28.82 -0.17 : Co announced today that its Maryland-based subsidiary, Comtech Mobile Datacom Corporation, received an initial funded order totaling $4.6 mln to support the U.S. Army's Movement Tracking System Program. This order was placed under Comtech's existing $384.0 mln BFT-1 contract. Co anticipates that the value of this order will increase based on final negotiations with the U.S. Army. Total orders received to-date under the $384.0 mln BFT-1 contract are $343.9 mln.
10:49AM Lucas Energy announced that it had gross production in May 2011 of nearly 8,000 bbls of oil and over 4.6 MMCF of natural gas (LEI) 3.05 +0.25 : This production does not include oil and gas production from the two Eagle Ford wells operated by Hilcorp Energy. Lucas is anticipating increasing operated gross production this year due to the new drilling program that includes the Rainey Unit No.1H well currently drilling as a new horizontal well in the Austin Chalk formation. Co is planning at least three new Austin Chalk horizontal wells, and three new Austin Chalk laterals from old well bores. The outside operated Eagle Ford program is anticipated to add another two to three wells.
10:28AM Dow -13 slipped to new low for the week this morning, S&P -0.9 is just above yesterday's low for week at 1306, Nasdaq Comp +7.4 hovering 13 points above (DIA) :
10:23AM Patriot Transportation announces execution of a letter of intent with MidAtlantic Realty Partners for formation of a joint venture (PATR) 24.97 -0.17 : Co announced its execution of a Letter of Intent with MidAtlantic Realty Partners for the formation of a Joint Venture to develop the first phase of the four-phase Master Development known as RiverFront on the Anacostia in Washington, D.C. adjacent to the Washington Nationals baseball stadium. Under the terms of the Letter of Intent the parties have agreed to seek a modification from the District of Columbia authorities to the existing approved plan for the Master Development to change phase I from an office building to residential apartments for which market demand appears to exist today. MRP will contribute capital in the amount necessary for the venture to qualify for a nonrecourse loan for the balance of the estimated construction costs (this MRP contribution is currently estimated to be ~ $4.5 mln.)
10:22AM Crude oil extending pullback from highs; currently higher by 89 cents to $96.58 (COMDX) :
10:20AM Fresh morning pullback lows for Dow -13 and S&P +1.2 -- Nasdaq Comp +10 probing its pullback low (SPY) :
10:17AM FedEx continues to be a drag on Transports, drops to new session low (FDX) 91.73 -1.33 : FDX has extended its breakdown off last week's high to 6.9% in recent trade (session low 91.73) leaving it back near the 50% retracement of the June-July rally (91.72) and its 200 sma at 91.54.
10:04AM Sector Watch -- Lagging sectors hold at/near technical support (TECHX) : Noted lagging performance in Housing XHB and Semi SMH in an earlier update with Retail XRT also on the defensive this morning. However, as noted in the 09:53 update the XHB was back at its 200 ema/sma and this has thus far held. The SMH has flirted with its 7 month low from June at 32.15 (session low 32.20) and lifted while the XRT has held near yesterday's low, its 20 day ema and the 38% retracement of the June-July rally.
10:01AM Cooper Industries announces acquisition of Gitiesse srl, an Italy-based manufacturer of marine and oil and gas communications systems; financial terms not disclosed (CBE) 58.43 -0.24 : Gitiesse will become part of the Cooper Safety division of Cooper Industries.
9:57AM Stock indices slip back off first level resistances following weaker sentiment -- Dow +4, S&P +2, Nasdaq Comp +11.5 (SPY) :
9:53AM SPDR Homebuilders for second session in a row flirts with, attempting to hold near its 200 ema/sma at 17.54/17.51 -- session low 17.55 (XHB) 17.59 -0.09 : LEN, MDC, MTH, PHM, SPF, TOL, HD, LOW, MHK, SHW, DHI, KBH, RYL, HOV.
9:53AM Dell confirms execs reviewed the company's business progress for today's annual stockholders mtg (DELL) 16.81 +0.12 : Brian Gladden, chief financial officer, described key priorities underway to enable the company to deliver on its long-term value creation framework of 5-7% revenue growth, GAAP operating income of more than 7% and cash flow from operations exceeding net income. He also said the company will continue to invest in differentiated enterprise solutions and services to help the company reach its goals.
9:52AM Roper Inds announces senior subordinated convertible notes due 2034 to accrue contingent cash interest (ROP) 81.36 -0.74 : Contingent cash interest of ~$1.29 per Note is expected to be paid on January 16, 2012 to holders of the Note as of December 31, 2011, the record date. Total contingent interest for the semi-annual period is expected to be ~ 200K.
9:50AM Costco slides to new session/weekly low of 79.90, vacillating near its 50 ema at 79.93 (COST) 79.91 -0.42 :
9:45AM Opening Point Gainers/Losers (TECHX) : Point Gainers: GOOG (+61.34), HK (+14.79), PXD (+5.56), SM (+5.19), COG (+5.41), EOG (+5.05), CLX (+5.09), VMI (+5.36), BIDU (+3.79), WLL (+3.25), EQT (+3.16), RRC (+3.11)
Point Losers: FLIR (-3.81), QLIK (-2.65), RAH (-2.05), SGEN (-1.78), GEL (-1.20), BBL (-1.01), EW (-1.27), JBHT (-0.94), BHP (-0.85)
9:42AM Sector Watch (TECHX) : Energy (XLE +1.8%, OIH +1.6%) and Internet (FDN +1.8% GOOG +12%) are providing early leadership while Semi SMH -0.4%, Housing XHB -0.5%, Transports IYT -0.4% are lagging.
9:39AM Stock indices quickly run to first level resistances (SPY) : Solid push out of the starting gate for the major market averages to probe first level resistances noted in The Technical Take at 2779/2789 Nasdaq Comp (session high 2789), 1316/1317 S&P (session high 1317) and 12490/12505 Dow (session high 12504).
9:31AM United Stationers increases share repurchase authorization by $100 mln of common stock (USTR) 35.37 +0.15 : The co currently has less than $100K remaining under the prior authorization approved by its board in October 2010.
9:29AM PharmAthene: Mitchel Sayare to succeed John Pappajohn as Chairman of the co's Board of Directors; effective immediately (PIP) 2.76 : Prior to joining ImmunoGen, Sayare served as Vice President, Development at Xenogen, a biotechnology company specializing in monoclonal antibody-based diagnostic systems for cancer. In this role he oversaw all research and development, corporate development, and investor relations responsibilities for the company.
9:24AM Sprott Physical Gold Trust prices follow-on offering of trust units in an aggregate amount of $266 mln at a price of $14.00/unit (PHYS) 14.17 : Trust announced today that it has priced its follow-on offering of 19 mln transferable, redeemable units of the Trust at a price of US$14.00/unit. The Trust will use the net proceeds of this Offering to acquire physical gold bullion in accordance with the Trust's objective and subject to the Trust's investment and operating restrictions described in the prospectus related to this Offering.
9:20AM AerCap enters into purchase-leaseback arrangement with American Airlines (AMR) to finance up to 35 Boeing (BA) 737-800 next generation aircraft (AER) 12.30 : Co announced that it has entered into a purchase-leaseback arrangement with American Airlines (AMR) to finance up to 35 Boeing (BA) 737-800 Next Generation aircraft, including 29 firm deliveries, scheduled to be delivered to American. Of the 29 firm deliveries, 26 are previously ordered aircraft and three are newly ordered aircraft. Co will purchase the aircraft from American and immediately lease the aircraft back to American under a purchase-leaseback financing arrangement.
9:16AM Cameco announced the appointment of Grant Isaac as senior vice-president and CFO; effective July 15th (CCJ) 25.18 : Isaac replaces O.K. Goheen who decided to retire after 14 years with Cameco.
9:12AM Williams Cos responds to Southern Union's (SUG) decision to engage in discussions (WMB) 29.09 : Williams Says "We are confident that our all-cash, premium proposal is in the best interests of both companies' shareholders, and we are pleased that Southern Union will engage in discussions with Williams," said Alan Armstrong, Williams' President and Chief Executive Officer. "We look forward to working together with Southern Union and to quickly executing a definitive merger agreement."
9:08AM Two Harbors Investment announces pricing of common stock offering at $10.15/share (TWO) 10.51 : The co will have total gross proceeds of ~$426.3 mln. The company expects to use the net proceeds from this offering to make additional acquisitions of residential mortgage-backed securities and other financial assets, and for other general corporate purposes, including to finance acquisitions of residential mortgage loans.
9:04AM Magnum Hunter announced that its Appalachian Basin Division has acquired two new 2011 Schramm T200XD trailer mounted hydraulic drilling rigs (MHR) 6.86 : The two new drilling rigs are being purchased for approximately $5.8 million and are being financed under a secured commercial bank term loan.
9:04AM Immucor: IVD Acquisition commences tender offer for all shares of Immucor for $27.00/share (BLUD) 26.88 :
9:03AM Cooper Cos announced Eugene Midlock indicated intent to retire as CFO on Dec 16, 2011; succession plan in place and successor will be named at that time (COO) 80.30 :
9:02AM AgFeed Industries entered into separate non-binding letters of intent to acquire Pine Ridge Farms (FEED) 1.32 : Co announced organizational changes and acquisitions agreements in fulfillment of its previously announced entry to the harvest and processing segment of the pork business. In connection with the ongoing transformation of the Company, the Board of Directors today announced executive promotions and reassignments. In addition the Board elected a new independent director. These organizational changes are intended to align the Company's personnel with its continued transformation, allowing it to respond to the changing international operating environment and its strategy of operating at numerous points of the pork value/supply chain. The Company also announces that it has entered into separate non-binding letters of intent to acquire Pine Ridge Farms, LLC ("PRF") and Kansas City Sausage Company, LLC ("KCS"). It is expected that the combined businesses will add over $180 million of annualized revenue and over $13 million of EBITDA to the Company's results.
9:01AM Crude to highs following open of pit trade; now up 87 cents to $96.56 (COMDX) :
9:01AM Coeur d'Alene Mines names Mitchell Krebs as President and CEO (CDE) 26.26 : In addition, the Board of Directors also elected Mr. Krebs as a director and Krebs is succeeding Dennis Wheeler, who resigned from co as President, CEO and Chairman of the Board of Directors on July 11, 2011. The appointments follow an exhaustive internal and external search conducted by the Board of Directors as part of the Company's succession planning.
8:58AM Genuine Parts beats by $0.07, beats on revs (GPC) 55.12 : Reports Q2 (Jun) earnings of $0.96 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.89; revenues rose 11.9% year/year to $3.19 bln vs the $3.11 bln consensus. "The Automotive Group produced another period of solid growth, with sales up 9% for the third consecutive quarter. We remain encouraged by the ongoing positive impact of our sales initiatives and the sound fundamentals of the aftermarket. Our Industrial and Electrical businesses continue to produce the strongest growth among our four business segments. Sales for Motion Industries, our Industrial Group, reached the $1 billion mark for the first time in their history and were up 19% in the quarter. EIS, our Electrical Group, generated a 28% sales increase. Both Motion Industries and EIS sell into the manufacturing sector of the economy, which continues to perform well today. S.P. Richards, our Office Products Group, showed a 4% sales increase for the quarter, marking their third consecutive period of sales growth, despite the continued moderation in demand in the office products industry. We believe this positive sales trend reflects the ongoing benefits of their internal growth initiatives... Our priorities for cash include the dividends paid to shareholders, the ongoing reinvestment back into each of our four businesses, strategic acquisitions and share repurchases."
8:52AM On The Wires (WIRES) :
* BioTime (BTX) announced it has been awarded a 10-month, ~$336K Small Business Innovation Research grant from the National Institutes of Health to develop HyStem microcarriers for the propagation of human stem cells and as a means of cell delivery for human clinical applications. * The Timken Company (TKR) announced plans to raise base prices on special bar quality and seamless mechanical tubing products, while also raising its minimum quantities for quench and tempered orders. Price increases range from $40-120 per ton.
8:38AM On The Wires (WIRES) :
* IPC The Hospitalist Co (IPCM) announced that it has acquired North Florida Acute Care Specialists. * Core-Mark Holding Co (CORE) announced that it will be serving as the broadline supplier to the Circle K stores in the Southeastern U.S. leading to the creation of a new division in Tampa, Florida. * FedFirst Financial Corporation (FFCO) announced that it has filed notice with its primary banking regulator to close its Park Centre branch located at 1711 Grand Boulevard, Monessen, Pennsylvania. The proposed closing date is October 21, 2011.
8:33AM Tesoro announces plans to supply Bakken Crude Oil from North Dakota to its Anacortes, Washington refinery (TSO) 22.96 : Co announced its intention to supply crude oil by rail from the prolific Bakken Shale/Williston Basin area in North Dakota to its refinery in Anacortes, WA. Upon completion of the project, co expects to deliver up to 30 thousand barrels per day of Bakken crude oil into the refinery. The cost advantaged crude oil will allow the Company to decrease dependence on foreign water born feedstocks and declining Alaska North Slope production. Co plans to build an unloading facility to accommodate the unit train at the Anacortes refinery continuing the Company's economic contribution to the local community and the state of Washington. This facility will effectively allow co to supply crude oil to the refinery from this "pipeline on rails". Once necessary permits are received, construction of the facility is expected to take approximately nine to 12 months to complete. The Company currently expects to spend about $50 million on this project.
8:32AM Towerstream priced a 9 mln share common stock offering at $4/share (TWER) 4.20 :
8:31AM National Retail Properties increases common dividend to $0.385/share from $0.380/share (NNN) 25.55 :
8:31AM IMAX and AMC Entertainment expand joint revenue sharing relationship with 10 additional IMAX theatres (IMAX) 27.94 : Co announced an expansion of the companies' joint revenue sharing arrangement to include the installation of 10 additional IMAX theatres in the United States. These theatres, which fulfill the rollout of theatres under the June 2010 expansion of the parties' original 2007 joint revenue sharing agreement, are expected to open by the end of 2012. The 10 new IMAX theatre systems are in addition to AMC's existing obligation for 115 IMAX joint revenue sharing theatres, 105 of which are currently in operation.
8:15AM Genesis Energy, L.P. prices public offering of common units at $26.50/share (GEL) 27.25 : Co says net proceeds from the offering by are expected to be used for general partnership purposes, including funding a portion of the purchase price and related transaction costs for our previously announced pending acquisition of the black oil barge transportation business of Florida Marine Transporters. If that acquisition is not consummated, all of the net proceeds of the offering by us will be used for other purposes, including the repayment of borrowings outstanding under our credit agreement.
8:11AM On The Wires (WIRES) :
* Rangeland Energy announced that the co has executed a long-term anchor agreement with Tesoro Corporation (TSO) for handling material crude oil volumes at Rangeland's crude oil loading terminal and pipeline in Williams County, North Dakota. * Oilsands Quest (BQI) is pleased to announce that it has received approval from the Government of Saskatchewan to convert portions of the Axe Lake permits to 15-year leases. These leases, the first oil sands leases in Saskatchewan, are one of the key elements the co needs in place to proceed to development of a commercial oil sands production facility. * Hyperdynamics (HDY) announced today it has issued an Invitation to Tender for a 3-D seismic survey covering approximately 4,000 square km on its exploration block offshore Republic of Guinea.
8:07AM Citigroup beats by $0.13, beats on revs (C) 39.02 : Reports Q2 (Jun) earnings of $1.09 per share, $0.13 better than the Capital IQ Consensus Estimate of $0.96; revenues rose 4.5% year/year to $20.62 bln vs the $19.76 bln consensus.
"We expect to begin returning capital to shareholders next year and end that year with an 8%-9% Tier 1 Common Capital Ratio under Basel III. During the first half of 2011, we added an estimated $9 billion in Basel III regulatory capital through the 'multiplier effect' created by the combined impact of earnings and the utilization of our deferred tax assets. In addition, at the end of 2012, we currently expect Citigroup's risk weighted assets under Basel III to be in the range of 135% of what they would be under Basel I and, more importantly, Citicorp's risk weighted assets to be approximately 120% of what they would be under Basel I."
Citicorp revenues of $16.3 billion in the second quarter 2011 decreased less than 1% from the prior year period. Citi Holdings revenues declined 18% from the prior year period to $4.0 billion. Citigroup's quarterly net income increased 24%, compared to the second quarter 2010, to $3.3 billion as a significant improvement in the cost of credit was partially offset by higher operating costs. Total cost of credit in the second quarter fell 49% to $3.4 billion. The improvement in credit costs was driven by a 35% decline in net credit losses to $5.1 billion and a $2.0 billion release of credit reserves, reflecting a lower level of inherent losses remaining in the portfolio. Operating expenses grew 9% from the prior year period to $12.9 billion, reflecting the impact of foreign exchange translation, volume-related expenses in Citicorp, legal and related expenses and ongoing investment spending, which were partially offset by ongoing reengineering benefits and lower expenses in Citi Holdings.
Citigroup's total allowance for loan losses was $34.4 billion at quarter end, or 5.4% of total loans. The $2.0 billion net release of credit reserves was 37% higher than the prior year period as credit quality continued to improve during the second quarter. More than half of the net credit reserve release was attributable to Citi Holdings.
Book value per share was $60.34 and tangible book value per share was $48.75, 13% and 16% increases, respectively, versus the prior year period. Citigroup's Tier 1 Capital Ratio was 13.6% and its Tier 1 Common Ratio was 11.6%, an increase of 161 bps and 189 bps, respectively, from the second quarter 2010.
8:06AM Valeant Pharmaceuticals agrees to acquire Ortho Dermatologics, division of Janssen Pharmaceuticals for $345 mln; expected to be accretive in 2011 (VRX) 52.61 : Total revenue for the product portfolio was ~$150 million in 2010.
8:03AM Mindray Medical Provides Mid-Year Update on Product Development; co successfully released a total of four products across its three product lines (MR) 25.89 : Co announces updates on new product launches for the first half of 2011. In the first half of the year, the company successfully released a total of four products across its three product lines.
8:03AM Warner Chilcott announces decision in ACTONEL rrbitration; Warner Chilcott and Sanofi (SNY) co-develop and market ACTONEL on a global basis (WCRX) 23.94 : Co announces that it received a decision from the arbitration panel in its previously disclosed arbitration proceeding relating to the termination date of its global collaboration agreement with Sanofi-Aventis (SNY). On July 14, 2011, the arbitration panel rendered its decision, finding that the collaboration agreement will terminate on January 1, 2015, the original expiration date of the agreement. Warner Chilcott had sought a ruling that the termination of its tablet supply agreement with Sanofi would accelerate the termination date of the collaboration agreement to May 2012. The decision maintains the original termination date of the agreement, and does not affect the commercial terms of the collaboration in any way. Under the collaboration agreement, Warner Chilcott and Sanofi will continue to promote ACTONEL and ATELVIA products as described above until January 1, 2015, at which time all of Sanofi's rights under the agreement will revert to Warner Chilcott. Thereafter, Warner Chilcott will have the sole right to market and promote ACTONEL and ATELVIA on a global basis, excluding Japan.
8:03AM Webster Financial beats by $0.01 (WBS) 20.55 : Reports Q2 (Jun) earnings of $0.36 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.35.
8:02AM AutoChina International provides operations update; leased 3,446 commercial vehicles and opened 36 store branches in Q2 (AUTC) 22.97 : Co reports it leased 3,446 commercial vehicles in the second quarter of 2011, compared to 4,130 in the second quarter of 2010autc. During the second quarter of 2011, the co opened 36 new commercial vehicle financing and service centers in the Anhui, Fujian, Gansu, Guangdong, Guizhou, Henan, Hubei, Hunan, Jiangsu, Jiangxi, Liaoning, Shanxi, Sichuan, and Zhejiang provinces, and the Inner Mongolia autonomous region.
8:02AM Oilsands Quest has received approval from the Government of Saskatchewan to convert portions of the Axe Lake permits to 15-yr leases (BQI) 0.21 :
8:01AM Artesian Resrces priced an ~804k share Class A non-voting common stock offering $18.65 per share (ARTNA) 19.29 :
7:56AM Crude oil trades to its best levels of the morning at $96.34; now up 50 cents to $96.20 (COMDX) :
7:51AM Kratos Defense and Security prices offering of $115 mln of tack-on to existing 10% senior secured notes due 2017 (KTOS) 11.63 : The estimated gross proceeds of ~$121 mln, which includes an ~$6 mln of issuance premium, will be used to finance, in part, the cash portion of the purchase price for the acquisition of Integral Systems (ISYS).
7:46AM Capella Education acquires Resource Development International for $14.9 mln; is expected to be accretive to co's earnings by 2013, and modestly dilutive in 2011 and 2012 (CPLA) 43.64 : The transaction will be financed with cash on hand, Under the terms of the agreement, Capella will make an additional payment of ~$6.4 mln if TDAP is granted to Resource Development International.
7:35AM Duncan Energy increases quarterly cash distribution to $0.46/unit from $0.45/unit (DEP) 43.02 : Co also announced it will host a special meeting of unitholders on September 7 to consider and vote upon approval of the Agreement and Plan of Merger with Enterprise Products Partners (EPD) and the merger. The two publicly-traded partnerships announced a definitive agreement to merge on April 29, 2011. Under the terms of the definitive merger agreement, DEP unitholders would receive 1.01 EPD common units in exchange for each DEP limited partner unit they own at closing.
7:32AM Alliance Data reports private label performance update for June 2011; says YoY change in avg receivables was -3%; net charge-offs as a percentage of average receivables was 6.9% (ADS) 95.24 :
7:30AM Enterprise Products Enterprise announces distribution rate increase to $0.605/unit from $0.575/per unit (EPD) 42.77 :
7:30AM Greif has issued euro 200 million aggregate principal amount of its 7.375% Senior Notes due 2021 (GEF) 64.36 : company. The issuer will use the net proceeds from the issuance of the senior notes to repay non-U.S. borrowings under the company's revolving multicurrency credit facility, without any permanent reduction of the commitments, and for general corporate purposes, including the financing of acquisitions.
7:17AM Clorox confirms receipt of unsolicited conditional proposal from Carl Icahn for $76.50/share (CLX) 68.44 : Proposal subject to due diligence, financing and other conditions. Co's board of directors, in consultation with its financial and legal advisers, will review the proposal in due course.
7:05AM Crown Crafts reaches agreement with the Wynnefield Group regarding director nominations (CRWS) 4.80 : Co announces that it has reached an agreement with its largest stockholder, Wynnefield Partners Small Cap Value, and certain of its affiliates, regarding the slate of directors to be nominated for election at the Company's 2011 annual meeting of stockholders, scheduled for Tuesday, August 9, 2011. Under the terms of the agreement, Patricia Stensrud will be included on the Company's slate of nominees for election as Class III directors. Joining Ms. Stensrud for election to the Board will be Dr. Donald Ratajczak, who has served on the Board since 2001. Pursuant to the agreement, the Wynnefield Group has agreed to discontinue its own proxy solicitation in connection with the annual meeting and vote its shares of the Company's common stock in favor of the Company's nominees. As part of the settlement, Joseph Kling, currently a Class III director whose term expires at the annual meeting, is not being re-nominated to the board.
7:04AM First Horizon beats by $0.05 (FHN) 9.48 : Reports Q2 (Jun) earnings of $0.16 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.11. The co delivered solid performance in its core businesses of regional banking through First Tennessee and capital markets through FTN Financial, improved credit quality, maintained strong capital ratios and improved productivity and efficiency throughout the co. Allowance for loan losses, net charge offs, non-performing assets were all down QoQ.
7:03AM China Information Tech reports it secured contract wins of over $30 mln in the 2Q11 (CNIT) 2.30 : Co announces that it signed $30.4 million in new contracts during the second quarter of 2011. The Company's core IT business segment contributed 65%, or $19.8 million, of the total contract wins, while its Digital Display segment contributed 35%, or $10.6 million.
7:03AM Amgen announced that the European Commission has granted marketing authorization for XGEVA for the prevention of skeletal-related events in adults with bone metastases from solid tumors (AMGN) 55.73 : This approval of XGEVA applies to all 27 European Union (EU) member states. The EC also granted XGEVA an additional year of data and market exclusivity in the EU since the indication was considered new for denosumab and based on the significant clinical benefit of XGEVA in comparison with existing therapies.
7:01AM Cracker Barrel announces reduction of management and staff positions; will generate annual pretax savings of ~$10 mln; severance and other charges related to its cost reduction will reduce net earnings per diluted share by between $0.14 and $0.17 (CBRL) 48.34 -0.69 : Co announced that a cost reduction and organization streamlining initiative has resulted in the elimination of ~ 60 management and staff positions. Most of the employees affected by the layoff worked in the Company's home office in Lebanon, Tennessee. policies. The coestimates that severance and other charges related to its cost reduction initiative will reduce income from operations in the fourth quarter of the 2011 fiscal year by between $4 and $5 mln, and reduce net earnings per diluted share by between $0.14 and $0.17. These charges were not included in the Company's previously issued guidance for the fourth quarter.
6:59AM CNinsure affiliated claims adjusting firm granted financial institution headquarter treatment (CISG) 15.17 : With the co's regional headquarter based in Shenzhen, it was granted a RMB8 mln cash bonus including RMB3 mln one-off registration bonus and RMB5 mln tax benefits by Shenzhen Municipal Government. In addition, it will enjoy preferential treatment in the purchase of land and property and housing allowance for its senior management. The cash bonus will be recorded in the financial statement for the third quarter of 2011.
6:19AM CNOOC Ltd announces COPC estimates the amount of fluid spilled from the 2 incidents is ~1,500 barrels of oil and oil-based drilling fluids (CEO) : CNOOC Limited holds 51% of participating interests under the Production Sharing Contract.
6:17AM China Gerui announced that it has commenced operation of two steel production lines with 150,000 tons of annual capacity as well as one additional line with 200,000 tons of annual capacity (CHOP) 3.87 : The newly added facility, which marks the completion of Phase I of the Capacity Expansion Plan, brings cold-rolled steel production up to a total of 400,000 tons per year and raises the co's value-added plating capability to 250,000 tons of total capacity per year. The new capacity is expected to ramp up to a normalized utilization rate of ~75% within six months consistent with China Gerui's 2011 guidance and will help it to maintain a blended gross margin of 30%.
6:07AM Ziopharm Oncology appoints Hagop Youssoufian as Executive Vice President and Chief Medical Officer (ZIOP) 5.89 -0.07 : Youssoufian joined ImClone Systems, a wholly owned subsidiary of Eli Lilly (LLY) in April 2005, most recently becoming Chief Medical Officer and Senior Vice President of Global Clinical Sciences, where he supported or led all aspects of the clinical development of Erbitux and ImClone Systems' pipeline. This effort culminated in the approval of Erbitux for new indications in colorectal cancer and head-and-neck cancer, and an expansion of the pipeline across many indications.
6:04AM Mattel beats by $0.07, beats on revs (MAT) 26.79 : Reports Q2 (Jun) earnings of $0.23 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.16; revenues rose 14.1% year/year to $1.16 bln vs the $1.11 bln consensus.
5:22AM News Corp names Tom Mockridge Chief Executive Officer of News International; following the resignation of Rebekah Brooks (NWS) 15.44 : Co announces the appointment of Tom Mockridge to the role of Chief Executive Officer of News International. Mockridge will assume responsibility for his new role with immediate effect following the resignation of Rebekah Brooks. Mockridge joins News International from Sky Italia where he has been Chief Executive Officer since launch in 2003.
4:08AM Inovio Pharma demonstrates T Cell immune response durability with fourth dose of therapeutic cervical dysplasia and cancer DNA vaccine (INO) 0.74 : Co announces data demonstrating long-term durability of T cell immune responses of up to over 2 years in 7 of 8 evaluated patients following a fourth vaccination of VGX-3100, its investigational SynCon DNA vaccine for treating cervical dysplasia and cancer caused by human papillomavirus that is delivered using intramuscular electroporation. The data further highlights the viability of using multiple booster vaccinations with a DNA vaccine delivered using electroporation, in contrast to other non-replicating vaccine vectors that may induce unwanted immune responses against the vector after multiple vaccinations. Cois now recruiting for its Phase II study, which is designed to enroll 148 patients with CIN 2/3 or CIN 3 at ~25 study centers in the US, Korea, South Africa, Australia, and Canada. This randomized, placebo-controlled study will assess histopathological response to vaccination as the primary endpoint as well as humoral and cell mediated immune responses to VGX-3100.
4:04AM Spectrum Brands prices 6,495,489 shares of common stock by co and selling stockholder at $28.00 per share (SPB) 28.57 :
2:23AM On The Wires (WIRES) :
* Concha y Toro (VCO) announced the creation of Excelsior Wine Company, a marketing and sales partnership between Concha y Toro and Banfi Vintners, the winery's exclusive US importer. * GOLDCORP (GG) announced that it has evacuated a majority of its 380 employees at the Musselwhite mine due to forest fires in northwestern Ontario. Mining operations have ceased and electricity is being provided by site-based generator power due to fires that have destroyed a section of the transmission line supplying power to the site. * Williams Controls (WMCO) announced that it has been awarded new production programs with two Indian commercial vehicle manufacturers for its Electronic Throttle Control and Sensor products. These awards are for new vehicle platforms for the India market and will be supported from Williams' manufacturing facility in Pune, India. Shipments are expected to begin in 2013.
2:12AM Roche Hldg unit Genentech reports that CLEOPATRA met its primary endpoint; plans to seek approval with health authorities based on encouraging results (RHHBY) 41.51 : Co announces that CLEOPATRA, a pivotal Phase III study, met its primary endpoint. The study showed that people with HER2-positive metastatic breast cancer who received the combination of two targeted medicines, pertuzumab and Herceptin, plus docetaxel chemotherapy lived significantly longer without their disease getting worse than people who received only Herceptin and docetaxel. No new safety signals were observed and adverse events were consistent with those seen in previous studies of pertuzumab and Herceptin, either in combination or alone.
2:08AM Electronic Arts prices $550 mln of its 0.75% Convertible Senior Notes due 2016 er (ERTS) 23.51 :
1:45AM Transcept Pharma receives complete response letter from FDA on Intermezzo New Drug Application (TSPT) 4.73 : Co announces it received a Complete Response Letter from FDA regarding the resubmitted New Drug Application for Intermezzo. In the Complete Response Letter, the FDA confirmed that Transcept has adequately demonstrated that Intermezzo is efficacious for use as needed in the treatment of insomnia when a middle-of-the-night awakening is followed by difficulty returning to sleep. However, the FDA stated that it cannot conclude that Intermezzo? can be used safely based on the information in the Intermezzo NDA. In the Complete Response Letter received today, the FDA stated that during its review of the Intermezzo NDA resubmission it became concerned that those patients with higher zolpidem blood levels from Intermezzo could be at risk of unacceptable next-day impairment. The FDA further hypothesized that such patients may belong to distinct and identifiable demographic groups. The FDA remains concerned that some portion of patients will dose with less than four hours remaining in bed, despite proposed packaging and instructions that the FDA viewed as clearly communicating this dosing restriction. To address the risk of inadvertent mis-dosing with less than four hours remaining in bed, the FDA believes that driving performance at 3-3.5 hours after dosing should be considered as part of the safety review of Intermezzo. As a possible path forward, the FDA suggested that Transcept further investigate whether body weight and demographic factors contribute to differentially elevated blood levels the morning after dosing Intermezzo, develop strategies to decrease next-morning zolpidem levels, and, after mitigation strategies are implemented, demonstrate that next-morning blood levels do not present an unacceptable risk of next-day impairment, which may include the conduct of an additional driving study.
1:44AM Omega Health increases quarterly dividend by $0.02 to $0.40; payable August 15 to common stockholders of record as of the close of business on August 1 (OHI) 21.09 :
1:37AM Key Energy provides June 2011 activity data; reports total rig hours up 13.1% YoY; up 3.4% sequentially (KEG) 19.15 : Co provides June activity data. Total Rig Hours of 187,620, +13.1 YoY, +3.4% sequentially. Total Trucking hours of 255,543, up 43.5% YoY, down 1.4% sequentially. Reports Utilization Rate of 62%, down 100 bps Yoy, flat sequentially. Rig Services revenue per work day was up 6% in June compared to May. Co expects to report revenue per workday up in excess of 10% in the second quarter 2011 compared to the first quarter.
1:33AM Pioneer Drilling prices 6 mln shares of common stock at $14.50 (PDC) 14.61 :
1:31AM MI Developments announces of departure of Dennis Mills, Vice Chairman and COO (MIM) 30.36 : Co previously announced on July 6, 2011 the appointment of a new board of directors and senior management team following the completion on June 30, 2011 of co's plan of arrangement to eliminate its dual-class share structure.
1:20AM ConAgra issues statement regarding Ralcorp (RAH) (CAG) 26.26 : Co states: "We have seen the announcement from Ralcorp and we believe our proposed acquisition of all of Ralcorp continues to be in the best interests of their shareholders."
1:09AM United Continental: Furloughed United Pilots offered positions at Continental (UAL) 21.20 : Co announces announced that it will offer ~100-200 positions to pilots currently on furlough from its United subsidiary to fly aircraft for its Continental subsidiary. The positions will meet the needs currently anticipated for the combined company's operation in 2012.
1:03AM Hertz Global files Hart-Scott-Rodino Notification (HTZ) 14.92 : Hertz Global (HTZ) announces that it has filed a Notification and Report Form with the federal antitrust authorities under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, relating to co's exchange offer for all outstanding shares of Dollar Thrifty Automotive Group (DTG).
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