4:20 pm : Stocks were slapped by sellers again this session. The subsequent slide sent stocks to a new low for July.
The three major equity averages sank steadily in the first couple of hours. All three were down in excess of 1% before pressure started to ease. The market's push up from its session low came after the S&P 500 had managed to resist extending its slide much below the 1300 line. June was the last time the S&P 500 traded below that line. The
broad market never really managed to make any kind of meaningful run higher, however. That left the major equity averages to settle with marked losses.
Tech stocks and energy stocks did a good job of staving off sellers. The two sectors logged losses of 0.3% and 0.4%, respectively. Tech was helped by Apple (AAPL 373.80, +8.88), which printed a record high. Halliburton (HAL 53.12, +0.04) helped oil and gas services stocks after it posted an upside earnings report.
Financials were down more than 2% at their session low, but managed to lessen that to a 1.4% loss. The sector was bogged down by weakness among banks and diversified financial services names like Bank of America (BAC 9.72, -0.28), which is scheduled to report its latest results tomorrow morning.
European bank stocks were especially weak amid lingering concern regarding fiscal conditions and sovereign debt in their home continent. Stress tests throughout the region late last week failed to quell concerns over the state of finances there. Threats of the matter imbued the broader market.
Financial media also focused on the lack of progress in raising the U.S. debt ceiling. The deadline for a decision is still a few weeks away.
Safe havens like gold and the greenback were on the short list of strong performers this session. Gold prices set a record high of almost $1608 per ounce in the face of a stronger dollar, which was up 0.4% at the end of the trading day. However, the dollar had been up close to 1% at its session high.
3:30 pm : For 10 straight sessions gold prices have advanced. The latest round of action took the precious metal to $1603 per ounce for a 0.8% gain. The yellow metal actually set a record high of almost $1608 per ounce along the way. As for silver, prices climbed as high as $40.73 per ounce, but eased back to settle at $40.23 per ounce for a 2.9% gain. Silver hasn't settled above $40 per ounce in more than two months.
Oil prices were pressured all session. The energy component closed pit trade with a 1.3% loss at $95.93 per barrel. It had been down in excess of 2%, for a time. Natural gas traded as low as $4.48 and as high as $4.61, but finished the day flat at $4.54 per MMBtu.
In the backdrop, the dollar was strong all session, and was recently quoted with a 0.5% gain against a basket of major foreign currencies. Its strength comes as the euro turns lower in response to ongoing concerns related to sovereign debt in Europe, although lawmakers continue to struggle to raise the debt ceiling. DJ30 -113.72 NASDAQ -28.12 SP500 -12.62 NASDAQ Adv/Vol/Dec 545/1.38 bln/2034 NYSE Adv/Vol/Dec 398/575 mln/2631
3:00 pm : Stocks have resumed their upturn. The effort has them at their best level since morning as they head into the final hour of trade. There still isn't a single sector in positive territory, though.
Participation has been moderate for most of the session. As such, only a half billion shares have traded hands on the NYSE so far. The lack of participation comes in part because of the sluggish pace of summer, when many are on vacation, but also because of uncertainty surrounding the sovereign debt of Europe. DJ30 -110.52 NASDAQ -31.76 SP500 -12.34 NASDAQ Adv/Vol/Dec 492/1.27 bln/2083 NYSE Adv/Vol/Dec 385/529 mln/2641
2:30 pm : The stock market's recent upturn has stalled. That has left the S&P 500 to remain mired near the 1300 line. Meanwhile, the dollar has drifted back a bit in recent action. It now trades with a 0.5% gain, but it had been up about twice that amount this morning.DJ30 -133.47 NASDAQ -31.54 SP500 -14.56 NASDAQ Adv/Vol/Dec 492/1.18 bln/2072 NYSE Adv/Vol/Dec 406/486 mln/2607
2:00 pm : Stocks are starting to turn upward. The effort has the major market averages up to their best levels since late morning. They are all still down with losses of about 1%, though.
Bank of America (BAC 9.72, -0.28), which will report Tuesday morning ahead of the open, is still down nearly 3%, but the stock has actually climbed about 2% from the 52-week low that it set earlier today.
In the face of this session's losses, Apple (AAPL 369.64, +4.72) has pushed up to a gain of more than 1% for a fresh record high. The company is scheduled to report its latest quarterly results on Tuesday after the close of trade. DJ30 -120.60 NASDAQ -36.06 SP500 -13.07 NASDAQ Adv/Dec 410/2610 NYSE Adv/Dec 491/2051
1:30 pm : Stocks continue to trade along their lows for the day. The sideways drift comes as the S&P 500 crosses the critical 1300 line, but encounters support just below it. Assuming that this session's loss will hold, it will represent a poor follow-up to last week's 2.1% weekly loss.DJ30 -151.98 NASDAQ -40.16 SP500 -16.38 NASDAQ Adv/Dec 346/2682 NYSE Adv/Dec 442/2097
1:00 pm : Stocks have been under pressure all session. The effort has left the S&P 500 to fall more than 1% to a new July low.
Initial selling interest this morning came amid lingering concerns about fiscal conditions and sovereign debt in Europe. Stress tests throughout the region failed to quell those concerns, so the continent's collective weakness took the EuroStoxx 50 down 2.0% to a new 2011 low.
The inability of lawmakers to reach a compromise on raising the debt ceiling is also being widely cited as a growing cause for concern among market participants. That likely explains why Treasuries have traded flat today, even though buyers have favored safe havens this session.
A preference for capital preservation has the dollar up 0.6% against a basket of major foreign currencies. In spite of the greenback's gain, gold has advanced almost 1% to $1604 per ounce, which puts it just off of the record high that it set earlier today.
The gain by gold bullion has helped drive higher shares of metals and mining players in the face of broad market weakness, which has taken all 10 major sectors in to the red to trade with losses of about 1% or more.
Financials have been the poorest performers for virtually the entire session. The sector's 2.0% loss is largely due to weakness among heavyweights in the diversified financial service space.
With stocks under such heavy pressure, the S&P 500 has slipped below the 1300 line for the first time this month. It has yet to extend the move below that mark by any more than a few points, though. DJ30 -156.33 NASDAQ -40.79 SP500 -17.18 NASDAQ Adv/Vol/Dec 440/945 mln/2102 NYSE Adv/Vol/Dec 340/380 mln/2642
12:30 pm : The stock market's slide has steadied, leaving stocks to trade alongside session lows.
Despite the widespread weakness, Treasuries have succumbed to selling pressure after spending most of the morning trading with narrow gains. In turn, the yield on the benchmark 10-year Note is now back above 2.90%. Weakness among Treasuries comes as lawmakers continue to wrangle with raising the debt ceiling ahead of the deadline that is just a few weeks away. DJ30 -152.50 NASDAQ -41.84 SP500 -17.16 NASDAQ Adv/Vol/Dec 414/844 mln/2122 NYSE Adv/Vol/Dec 333/335 mln/2638
12:00 pm : During the first leg of the stock market's slide, the S&P 500 once again broke below its 50-day moving average of about 1313. However, continued selling pressure has taken the S&P 500 beneath 1300, which had appeared to provide some technical support during the past hour. Violating the line has not only left the stock market to sit at a new session low, but the benchmark average is also now at its lowest level of the month.DJ30 -170.90 NASDAQ -40.75 SP500 -19.10 NASDAQ Adv/Vol/Dec 420/750 mln/2093 NYSE Adv/Vol/Dec 365/297 mln/2593
11:30 am : Of the major sectors, energy is in the best shape. It's 0.5% loss is not even half of what the broad market has suffered. Among energy plays, Halliburton (HAL 53.42, +0.34) is a source of strength following its latest quarterly report, which featured a better-than-expected bottom line.
Meanwhile, financials are at the other end of the spectrum. Their 2.2% loss makes them the worst performing sector of this session. Banks have been a big burdon on the group; their weakness has led to a 2.4% loss in the KBW Bank Index. DJ30 -141.98 NASDAQ -36.88 SP500 -14.70 NASDAQ Adv/Vol/Dec 400/615 mln/2070 NYSE Adv/Vol/Dec 380/240 mln/2545
11:00 am : Increased selling pressure has left all three major equity averages to suffer losses in excess of 1%. In the meantime, the dollar has attracted additional support, which has it up 0.8% against a basket of competing currencies.
Despite the greenback's gain, safety seekers have bid up gold prices 0.9% to a new record high above $1604 per ounce. That has helped shares of metals and miners plays like Newmont Mining (NEM 58.52, +1.14) and Barrick Gold (ABX 49.01, +0.70) sporting heady gains in the face of this session's broad market slide. DJ30 -149.02 NASDAQ -31.05 SP500 -15.47 NASDAQ Adv/Vol/Dec 453/490 mln/1980 NYSE Adv/Vol/Dec 408/195 mln/2481
10:30 am : Commodities are trading lower this morning with the majority showing notable losses, while the dollar index is near recently-hit session highs.
Crude oil futures have been in the red all morning and have been steadily trending lower since pit trading began in the energy markets. Crude just hit new session lows of $94.97/barrel and is currently 2.0% lower at $95.34/barrel. Natural gas fell as far as $4.46/MMBtu this morning, but has erased more than half of its losses. In current activity, natural gas is trading 0.3% lower at $4.51/MMBtu.
Precious metals are showing gains, but silver is notably stronger strength than gold this morning. Gold has been in positive territory all morning and rose as high as $1603.80/oz, but is now 0.6% higher at $1599.80/oz. Silver futures rose to session highs of $40.47/oz. earlier this morning and are now up 3.3% at $40.36. DJ30 -125.71 NASDAQ -28.39 SP500 -12.84 NASDAQ Adv/Vol/Dec 442/405 mln/1955 NYSE Adv/Vol/Dec 390/168 mln/2473
10:00 am : Stocks had started to trim their losses in the first few minutes of trade, but they have since turned downward to set new morning lows. The reversal comes amid broad selling pressure, but financials are eperiencing some of the most pronounced selling pressure, which has the sector down 1.1%.
Among financials, diversified service plays are having the most damaging effect on the overall sector. As such, shares of Bank of America (BAC 9.82, -0.18) are down almost 2% to a new 52-week low. DJ30 -119.43 NASDAQ -9.15 SP500 -10.15 NASDAQ Adv/Vol/Dec 610/102 mln/1565 NYSE Adv/Vol/Dec 500/55 mln/2140
09:45 am : The major equity averages have managed to pare some of their losses so that they are now down modestly this morning. Pressure remains broad based, though; all 10 major sectors are in the red.
Tech issues have done a good job of limiting losses, though. The sector is down just 0.1% at the moment. Among tech issues, IBM (IBM 176.29, +0.75) is sporting a modest gain ahead of its quarterly report this evening. The Capital IQ earnings estimate calls for $3.02 per share. Big Blue generated earnings of $2.61 per share for the same period one year ago. DJ30 -69.56 NASDAQ -9.00 SP500 -5.88
09:15 am : S&P futures vs fair value: -5.30. Nasdaq futures vs fair value: -10.80. Stock futures are off of their morning lows, but the cash market is still expected to open in negative territory. Pressure comes in response to renewed weakness in Europe, where a series of stress tests late last week failed to quell concern about the precarious fiscal conditions in the eurozone's periphery. Those same concerns have undercut the euro, which currently trails the dollar by about 0.3% at $1.408. Favor for the relative safety of the dollar has helped it move higher, even though there is still no agreement related to raising the U.S. debt ceiling. The greenback's gain hasn't deterred precious metals from pushing higher. In fact, gold has been trading above $1600 per ounce for most of this morning and silver is back above $40 per ounce. As for Treasuries, the yield on the benchmark 10-year Note is back below 2.90%.
09:05 am : S&P futures vs fair value: -4.20. Nasdaq futures vs fair value: -9.00. Oil prices are down 1.1% to $96.20 per barrel in the first few minutes of trade. Meanwhile, natural gas prices are down a more moderate 0.3% to $4.50 per MMBtu. Precious metals have benefited from an interest in safety. As such, gold prices are up 0.7% to $1601.00 per ounce, while silver prices have soared 3.3% to $40.35 per ounce. Overall action among commodities has the CRB Commodity Index down 0.5%. In the backdrop, the greenback is up 0.5% against a basket of major foreign currencies.
08:30 am : S&P futures vs fair value: -5.90. Nasdaq futures vs fair value: -12.00. Stress tests late last week have failed to calm concern that precarious fiscal conditions continue to linger in various pockets of the eurozone. In turn, both the euro and the region's major bourses have turned lower to trade with marked losses. Specifically, the euro is off by 0.5% against the greenback, but the EuroStoxx 50 has fallen 1.1%. Germany's DAX is currently down 1.1%. Financial plays Deutsche Bank (DB) and Commerzbank are the two heaviest drags on trade there. Adidas and Volkswagen have offered support to broad market trade, however. Meanwhile, France's CAC is off by 1.5%. All 40 of its components are in the red, but financial outfit Societe Generale is in the worst shape as it contends with a 5% loss. Britain's FTSE has fallen to a 1.0% loss. Banks like Royal Bank of Scotland (RBS) and Lloyds Group (LYG) have been the heaviest drags on trade, but Standard Chartered has managed to muster an incremental gain. Only a handful of other names, including Rangold Resources and Fresnillo Plc, have found higher ground.
In Asia, overnight action took mainland China's Shanghai Composite down just 0.1%. Weakness among financials proved to be the difference between a net gain and a net loss for China's broad market measure. In contrast, financials were among the better performers in Hong Kong's Hang Seng. Still, the Hang Seng shed 0.3%. Japan's Nikkei was closed for holiday observance, but it will re-open tomorrow.
08:05 am : S&P futures vs fair value: -5.70. Nasdaq futures vs fair value: -13.80. Stock futures are under pressure this morning. The negative tone comes amid more selling in Europe, where tenuous fiscal conditions continue to trigger higher sovereign debt yields, and the contentious wrangling related to raising the U.S. debt ceiling. Even though a resolution on the U.S. debt ceiling continues to elude lawmakers, the dollar has benefited from this morning's bid for safety. Specifically, the greenback has gained 0.5% against a basket of major foreign currencies. An interest in safety has also helped gold prices push 0.8% higher to trade above $1600 per ounce. Only a handful of quarterly announcements have been made this morning. Among them, Halliburton (HAL) posted an upside earnings surprise. The stock has responded by pushing higher in premarket trade, despite the breadth of weakness ahead of the open. No major economic items are on the calendar for today.
06:57 am : [BRIEFING.COM] S&P futures vs fair value: -8.00. Nasdaq futures vs fair value: -18.00.
06:57 am : Nikkei...Holiday......... Hang Seng...21804.75...-70.60...-0.30%.
06:57 am : FTSE...5780.25...-63.40...-1.10%. DAX...7130.26...-89.90...-1.20%.
6:25PM First BanCorp announces increase in the amount of the proposed capital raise and rights offering (FBP) 4.60 +0.25 : First BanCorp (FBP), the bank holding co for FirstBank Puerto Rico ("FirstBank" or "the Bank"), announced it has entered into amended agreements with Thomas H. Lee Partners, L.P., funds managed by Oaktree Capital Management, L.P. and other institutional investors to increase the maximum size of the previously announced proposed capital raise from $515 mln to $525 mln. The amended agreements also will enable the Corp to increase the size of the proposed rights offering from $35 mln to $37.3 mln, which will allow each stockholder of record on the record date (which has not yet been established) to purchase one share of the Corp's common stock for every two shares of the common stock held on the record date at $3.50 per share.
6:20PM Avery Dennison guides Q2 and FY11 below consensus (AVY) 37.81 -0.60 : Co issues downside guidance; co sees Q2 EPS, ex-items, of $0.74-0.79 vs. $0.88 Capital IQ Consensus Estimates; sees revs of ~$1.7 bln vs. $1.83 bln consensus. Co issues downside FY11 guidance, co sees EPS of $2.45-2.75 vs. $3.15 consensus, sees revs of $6.8-6.9 bln vs $7.1 bln consensus. Co announced that the it expects to report unaudited second quarter 2011 net sales of approximately $1.7 billion, a decline versus the same period last year of 2 percent excluding the impact of currency. Unit volume was down an estimated 5 percent, driven primarily by declines in the Company's largest segments--Pressure-sensitive Materials and Retail Branding and Information Solutions. Second quarter results for the Company's Office and Consumer Products segment were in line with internal expectations.
6:12PM Exar extends gains on thin volume after hours after raising Q1 guidance; stock now 11.7% higher at $6.90 (EXAR) 6.18 -0.02 :
6:09PM Exar pops 5.3% to $6.51 after raising Q1 guidance (see 18:07 comment) (EXAR) 6.18 -0.02 :
6:07PM Exar raises Q1 guidance above consensus (EXAR) 6.18 -0.02 : Co raises Q1 revs guidance to ~$37 mln vs. $35.1 Capital IQ Consensus Estimates, up from $34-36 mln prior guidance. Exar also expects to achieve non-GAAP operating income of ~$0.1 mln as compared to the midpoint of the previous guidance of a non-GAAP operating loss of ~$1.7 mln. On a GAAP basis, the co expects an operating loss of ~$2.2 mln. "We are excited about reaching non-GAAP profitability one quarter ahead of our operating plan; during the quarter we saw improvement in all four product areas."
5:45PM Clorox falls 0.4% to $72.75 following the news that the co rejected Carl Icahn's offer (CLX) 73.04 -1.51 :
5:40PM Clorox rejects Carl Icahn's offer; Board of Directors unanimously affirms commitment to strategic plan; Board concludes Icahn's proposal is not in best interest of stockholders (CLX) 73.04 -1.51 : CLX announced that the co's board of directors, in consultation with its independent legal and financial advisers, has unanimously determined that the continued implementation of the company's strategic plan is the best way to generate significant value for all Clorox stockholders. The board also determined that the unsolicited, conditional proposal from Icahn Enterprises L.P. ("Icahn") to acquire Clorox substantially undervalues the co. "Our board has unanimously determined Mr. Icahn's unsolicited proposal is neither credible nor adequate," said Lead Director Gary Michael. In a separate release, the co announced that its board of directors has unanimously adopted a stockholder rights plan (the "Rights Plan" or "Plan") and declared a dividend of one right on each outstanding share of Clorox's common stock.
5:34PM Gold is up $3.10 to $1605.50/oz. in after hours trading (COMDX) :
5:32PM Lindsay Corp increases cash dividend 6% to $0.09, from $0.085; The new annual indicated rate is $0.36 per share, up from the previous annual indicated rate of $0.34 per share (LNN) 68.61 -2.10 :
5:30PM Alexander & Baldwin and KIUC announce largest solar facility on Kaua'i (ALEX) 48.82 -0.93 : Alexander & Baldwin (ALEX) and Kaua'i Island Utility Cooperative (KIUC) jointly announced plans for a 6 MW utility-scale solar PV (photo-voltaic) facility on Kaua'i's sunny south shore. A subsidiary of A&B will be the developer and operator of the facility and will sell the power to KIUC under a 20-year, fixed-rate power purchase agreement signed today by the parties.
5:29PM Crude oil moves back above the $96.00/barrel level; up $0.22 to $96.15/barrel in after hours trading (COMDX) :
5:23PM Stanley Black & Decker earnings color: Actual Q2 EPS for SWK is $1.18, excluding M&A charges and excluding $0.28 in gains, $0.08 worse than the Capital IQ Consensus Estimate of $1.26 (SWK) 68.61 -1.08 :
5:03PM Packaging Corp beats by $0.04, beats on revs; guides Q3 EPS below consensus (PKG) 27.11 -0.57 : Reports Q2 (Jun) earnings of $0.39 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.35; revenues rose 8.1% year/year to $665.5 mln vs the $632.7 mln consensus. Co issues downside guidance for Q3, sees EPS of ~$0.43 vs. $0.50 Capital IQ Consensus Estimate. "Looking ahead to Q3, we expect higher sales volumes and increased mill production with less downtime than the second quarter, but Counce will be slowed back as a result of the recovery boiler rebuilds. Costs for recycled fiber, fuels and electricity are expected to be higher. Considering these items, we expect Q3 earnings to be about $0.43 per share."
5:01PM PepsiCo reports that GEUPEC, Empresas Polar and PepsiCo join together to create a nationwide beverage co in Mexico (PEP) 68.00 -0.53 : Grupo Embotelladoras Unidas, S.A.B. de C.V. (GEUPEC), Empresas Polar and PepsiCo today announced that they have entered into an agreement under which they will form a new joint venture, creating a nationwide beverage company in Mexico. The joint venture will combine PepsiCo-owned beverage manufacturing and distribution operations in Mexico with those of GEUSA, the other Pepsi bottler in Mexico and a subsidiary of GEUPEC. Empresas Polar, the largest food and beverage company in Venezuela and a longtime leading bottler of Pepsi-Cola products in that country, will have an equity stake in the joint venture.
5:00PM Golub Capital BDC announces $113.8 mln in new middle market originations for its Q3 (GBDC) 15.19 -0.26 : Co announced that it originated $113.8 mln in new middle market investment commitments during the three months ended June 30, 2011. Of these new investment commitments, $102.9 mln funded at close. Overall, total investments at fair value increased by $61.0 million during the three months ended June 30, 2011 after factoring in debt repayments and net purchases and sales of broadly syndicated loans.
5:00PM Thermo Fisher: Magellan Biosciences sells TREK Microbiology Business to Thermo Fisher Scientific (TMO) 62.50 -0.72 : Co announced that it has sold its microbiology business, TREK Diagnostic Systems, to Thermo Fisher Scientific (TMO). The sale will enable Magellan to focus all its resources on its LeadCare and Dynex businesses, both of which have been experiencing strong growth. Terms of the sale were not disclosed.
4:56PM Brown & Brown misses by $0.04, misses on revs (BRO) 23.84 -0.58 : Reports Q2 (Jun) earnings of $0.26 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.30; revenues rose 1.3% year/year to $246.8 mln vs the $258.7 mln consensus.
4:45PM First Financial Holdings reclassifies $155 mln of loans as held for sale at June 30, 2011 (FFCH) 9.25 +0.01 : FFCH announced that the co reclassified ~$155 mln (book value) of certain nonperforming and performing loans to loans held for sale as of June 30, 2011. The co is pursuing potential loan sale alternatives that are expected to result in the disposition of these assets prior to the calendar year end. On a pro forma basis, adjusting for the loan reclassification, nonperforming loans are estimated to total less than $50 mln in the aggregate as of June 30, 2011 in comparison to total nonperforming loans of $156 mln as of March 31, 2011. Additionally, nonperforming assets, excluding assets covered under a loss-share agreement with the FDIC, ("non-covered NPAs") as a percentage of total assets are estimated to equal ~1.40% compared to non-covered NPAs to assets of 4.84% at March 31, 2011.
4:45PM Costamare announces the acquisition and charter of a secondhand vessel, new charter arrangements for certain existing vessels and a dividend increase to $0.27 from $0.25 (CMRE) 16.54 -0.03 : Co announced that it has agreed to purchase and charter a secondhand containership and furthermore that it has concluded charter extensions for three existing vessels and new charter agreements for two existing vessels. Co announced that it has agreed to purchase and charter a secondhand containership and furthermore that it has concluded charter extensions for three existing vessels and new charter agreements for two existing vessels. Fleet Developments: The co has reached an agreement to acquire a 5,000 TEU, 2003-built containership from Mediterranean Shipping Company S.A. ("MSC") for a purchase price of ~$55 mln. The acquisition is expected to be financed by cash from operations and the use of a currently committed undrawn credit line. Co has also agreed to the terms of a time charter agreement with MSC for the employment of the vessel, immediately upon delivery, for a duration of 63 months, at a daily rate of $28,000. Co also has entered into agreements for charter extensions for the following three existing vessels and new charter agreements for the following two existing vessels. 1) The time charter agreement with MSC for the 1988-built, 4,828 TEU c/v MSC Mykonos, has been extended as from July 14, 2011 until September 1, 2017, at a daily rate of $20,000. 2) The time charter agreement with MSC for the 1988-built, 4,828 TEU c/v MSC Mandraki, will be extended from November 2, 2011 until July 1, 2017, at a daily rate of $20,000. 3) The time charter agreement with Hapag-Lloyd for the 1987-built, 3,152 TEU c/v Akritas, will be extended from September 30, 2011 for 36 months, at a daily rate of $12,500. 4) On July 3, 2011, the 1990-built, 3,351 TEU c/v Rena, commenced a five-year time charter agreement with MSC at a daily rate of $15,000. 5) On July 19, 2011, the 1995-built, 1,162 TEU c/v Zagora will commence an eight month time charter agreement with MSC at a daily rate of $7,000.
4:44PM Penske automotive acquires Mercedes-Benz of Greenwich (PAG) 23.05 -0.43 : Co announced the acquisition of Mercedes-Benz of Greenwich, located in Greenwich, Connecticut. This franchise complements the Co's existing operations in the Connecticut market, which include Audi, Mercedes-Benz and Porsche in Fairfield and Honda in Danbury. Mercedes-Benz of Greenwich represents ~$150 mln in estimated annual revenue. The transaction was financed using cash flow from operations and availability under the Co's U.S. revolving credit facility.
4:33PM Equity Residential announces redemption and optional repurchase of 3.85% exchangeable senior notes due 2026 (EQR) 61.50 -0.25 : Co announced that its operating partnership, ERP Operating Limited Partnership (the "Operating Partnership"), is calling its 3.85% Exchangeable Senior Notes due 2026 (the "Notes") for redemption on August 18, 2011. Redemption of Notes The Operating Partnership is calling for redemption, on August 18, 2011, all of its outstanding Notes. The Notes will be redeemed in cash at a price of 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest up to, but excluding, the redemption date. As of the close of business on July 15, 2011, there were $482,545,000 of Notes outstanding.
4:33PM Lincare misses by $0.06, reports revs in-line (LNCR) 28.49 -0.45 : Reports Q2 (Jun) earnings of $0.45 per share, $0.06 worse than the Capital IQ Consensus Estimate of $0.51; revenues rose 7.3% year/year to $449 mln vs the $449 mln consensus. The co estimates that the 7.3% increase in net revenues in 2Q11 was comprised of ~12.3% internal and acquisition growth offset by approximately 5.0% negative impact from $21.0 mln of Medicare payment changes during the second quarter of 2011. The Medicare payment changes impacting the quarter include reductions in average payment rates for respiratory medications, the impact of new Medicare payment rates in the nine markets affected by the competitive bidding program, and the ongoing effect of Medicare oxygen customers reaching the 36-month rental payment cap. In addition to the ongoing effects of the Medicare payment changes in 2011, the Company incurred higher costs and expenses in the second quarter of 2011 compared with the first three months of this year. These include higher costs of goods sold of $18.1 million attributed to increases in specialty pharmacy drug volumes and other non-rental items, such as inhalation drugs and CPAP supplies, and increases in certain operating and other expenses attributable in part to the expansion of new strategic business lines.
4:32PM MSC Industrial announces the acquisitions of American Tool Supply and its affiliate; terms of the transactions were not disclosed; expects the acquisitions in total will become approximately $0.02 to $0.03 accretive to earnings in fiscal 2012 (MSM) 65.37 : Co announces that it has acquired American Tool Supply, and its affiliate, American Specialty Grinding. The two cos together generate approximately $50 million in annual sales. Terms of the transactions were not disclosed. MSC will use some of its available cash for these transactions and expects the acquisitions in total will become approximately $0.02 to $0.03 accretive to earnings in fiscal 2012 and more accretive in succeeding years. The Company also expects earnings dilution of approximately $0.01 per share in the fourth quarter of fiscal 2011, primarily due to the expenses related to the transactions.
4:31PM Zogenix closes $30 mln royalty financing with Cowen Healthcare Royalty Partners II (ZGNX) 4.71 -0.32 : Co announces it closed its previously announced royalty financing with Cowen Healthcare Royalty Partners II, L.P. Zogenix received the $30 million revenue investment advance from Cowen Royalty today. In addition, today, Zogenix issued to Cowen Royalty 388,601 shares of its Common Stock, for aggregate gross proceeds of $1.5 million, and issued warrants to Cowen Royalty that are exercisable for 10 years into 225,000 shares of its Common Stock at an exercise price of $9.00 per share.
4:30PM XL Capital announces tender offer for Series C preference ordinary shares at $25.00/share (XL) 20.83 -0.37 : Co has commenced a cash tender offer for any and all of its ~2.9 mln outstanding Series C Preference Ordinary Shares, liquidation preference $25.00 per share.
4:21PM Mosaic beats by $0.05, beats on revs (MOS) 66.46 -0.29 : Reports Q4 (May) earnings of $1.45 per share, $0.05 better than the Capital IQ Consensus Estimate of $1.40; revenues rose 53.7% year/year to $2.86 bln vs the $2.6 bln consensus. Co reports Q4 phosphate sales volume of 2.8 mln vs. 2.5-2.9 mln co guidance; reports DAP pricing of $574 versus $560-590 per tonne co guidance. Mosaic reports Q4 potash sales volume of 2.2 mln vs. 1.9-2.2 mln co guidance; reports MOP pricing of $404 versus $385-415 per tonne co guidance. Mosaic's gross margin for the fourth quarter of fiscal 2011 was $995 mln, or 35% of net sales, compared to $688 mln, or 37% of net sales, a year ago. Fourth quarter operating earnings were $825 mln compared to $548 mln a year ago. Guidance: Total sales volumes for the Potash segment are expected to range from 1.7-1.9 mln tonnes for Q1 of FY12. Mosaic's realized MOP price, FOB plant, for Q1 of FY12 is estimated to range from $430-455 per tonne. Total sales volumes for the Phosphates segment are expected to range from 3.0-3.3 mln tonnes for the first quarter of FY12. Mosaic's realized DAP price, FOB plant, for the first quarter of FY12 is estimated to range from $560-590 per tonne.
4:20PM Silicon Graphics selected by CSC to meet National Oceanic and Atmospheric Administration requirements (SGI) 15.70 -0.34 : Co announced that a new SGI high performance computing system has been selected by CSC (CSC) to meet National Oceanic and Atmospheric Administration requirements for weather and climate forecast modeling. This system will be installed in NOAA's Environmental Security Computing Center in Fairmont, West Virginia.
4:19PM Xerox's Global Imaging Systems has acquired Miller Technology Solutions, managed services company specializing in financial IT services; other details not disclosed (XRX) 9.92 -0.09 :
4:16PM Con-way will institute a general rate increase averaging 6.9% applicable to non-contractual business effective Aug 1 (CNW) 38.64 -0.99 :
4:16PM ION Geophysical expands AfricaSPAN regional seismic program (IO) 9.69 -0.37 : Co announced that it has successfully acquired 8,700 km of regional seismic data offshore Tanzania, Mozambique, and Comoros, adding to the 14,000 km of data the company previously acquired in the region in the first two phases of its East AfricaSPAN(TM) program.
4:13PM IBM beats by $0.07, beats on revs; guides FY11 EPS above consensus (IBM) 175.28 -0.26 : Reports Q2 (Jun) earnings of $3.09 per share, $0.07 better than the Capital IQ Consensus Estimate of $3.02; revenues rose 12.4% year/year to $26.67 bln vs the $25.32 bln consensus. IBM reported Q2 gross margin of 46.8% vs 46.0% street expectations. Co issues upside guidance for FY11, sees EPS of at least $13.25 vs. $13.19 Capital IQ Consensus Estimate, up from prior guidance for "at least $13.15"... The estimated services backlog at June 30 was $144 billion, up $15 billion year over year at actual rates ($2 billion, adjusting for currency). Services revenue was up 10%, 2% adjusting for currency. Growth markets revenue was up 23%, 13justing for currency. Business analytics revenue was up more than 20% in the first half. Cloud revenue are on track to double in 2011.
4:12PM Cisco Systems announces additional details on comprehensive action plan; will reduce global workforce by ~6500 employees (CSCO) 15.43 -0.16 : Cisco will reduce its global workforce across all functions by ~6,500 employees, which includes ~2,100 employees who elected to participate in a voluntary early retirement program. In connection with this plan, Cisco estimates that it will recognize total pre-tax restructuring charges to its GAAP financial results in an amount not expected to exceed $1.3 bln over several quarters, consisting of severance and other one-time termination benefits. Substantially all of these charges are cash-based. Cisco expects that ~$750 mln of these charges will be recognized during the fourth quarter of fiscal 2011, including ~$500 mln relating to the voluntary early retirement program. The remaining balance of the charges is expected to be recognized during fiscal 2012.
4:11PM Star Bulk announces public offering of 16.5 mln common shares (SBLK) 2.01 +0.01 : Co announced that it intends to offer and sell 16,500,000 common shares in an underwritten public offering. All of the shares in the offering are to be sold by Star Bulk. As part of the offering, the co has granted the underwriters a 30-day option to purchase an additional 2,475,000 common shares to cover over-allotments, if any. The Co expects to use the net offering proceeds to fund a portion of the aggregate purchase price for two secondhand drybulk carriers it has contracted to acquire by August 31, 2011 and for general corporate purposes. Deutsche Bank Securities Inc. and RBC Capital Markets, LLC are acting as joint book-running managers for this offering
4:10PM Neostem announces it intends to offer and sell shares of its common stock and warrants in an underwritten public offering (NBS) 1.32 -0.09 : Co announces that it intends to offer and sell shares of its common stock and warrants in an underwritten public offering. All of the shares and warrants in the offering will be sold by NeoStem. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. The shares will be issued pursuant to a prospectus supplement filed as part of an effective shelf registration statement previously filed with the SEC on Form S-3. Lazard Capital Markets, and JMP Securities are acting as joint book-runners of the offering.
4:09PM Wynn Resorts beats by $0.57, beats on revs (WYNN) 164.89 +2.27 : Reports Q2 (Jun) adj. earnings of $1.60 per share, $0.57 better than the Capital IQ Consensus Estimate of $1.03; revenues rose 32.3% year/year to $1.37 bln vs the $1.27 bln consensus. Macau: Q2 net revenues were $976.5 mln, a 36.7% YoY. Adjusted property EBITDA in Q2 was $314.3 mln, up 45.4% YoY. Table games turnover in the VIP segment was $32.7 bln for the second quarter of 2011, a 50.6% YoY. Mass market table games win percentage (calculated before discounts) of 27.8% was in-line with their revised range and higher than the 22.9% generated in the 2010 quarter. They have increased their expected mass market range from 21-23% to 26-28% based on their experience since the opening of Encore. Las Vegas: Q2 net revs for their Las Vegas operations were $390.8 mln, 22.8% higher than in the second quarter of 2010. Adjusted property EBITDA of $132.7 mln (with a 34.0% EBITDA margin on net revenues) was up 103.7% versus the $65.1 mln generated in the comparable period in 2010. Vegas table games win percentage of 27.6% was above the property's expected range of 21% to 24% and the 20.0% reported in the 2010 quarter.
4:07PM Cisco Systems announces transfer of Juarez, Mexico manufacturing operation to Foxconn (CSCO) 15.43 -0.16 : The agreement brings Cisco's video equipment manufacturing in line with the company's overall strategy of partnering with world-class contract manufacturers to deliver the highest-quality products to customers. The agreement also positions the companies to further expand their strategic partnership in North America.
4:06PM Marina Biotech announced appointment of James Karis as Chairman of the Board effective July 14 (MRNA) 0.20 0.00 :
4:06PM American Reprographics announces appointment of John Toth as Chief Financial Officer (ARC) 6.97 -0.12 : Most recently, Mr. Toth was a strategy consultant in new business development to Chiquita Brands International. From 2008 until 2010, Mr. Toth was Chief Financial Officer of Bell-Carter Foods. From 2006 to 2008, Mr. Toth was Chief Financial Officer of Fresh Express, Inc. and Vice President Finance of the Salads and Healthy Snacking division of Chiquita Brands International. In 2001, he founded Tennyson WestPrior to Tennyson West, Mr. Toth was a Vice President in the investment banking division of J.P. Morgan. He started his investment banking career with Goldman Sachs.
4:05PM Alphatec receives Japanese regulatory Shonin approval for Illico SE posterior fixation percutaneous screw system for minimally invasive surgery (ATEC) 3.39 -0.17 :
4:05PM Stone Energy announces LaPosada prospect discovery (SGY) 30.93 -0.31 : Co announced a discovery at its LaPosada Prospect (also called La Cantera) located in Vermilion Parish, LA. Stone has an ~ 33% working interest in the well, which reached a depth of 18,550 feet and logged 176 feet of highly resistive sand within the primary Cris R Massive objective. As a result of stuck pipe in the bottom 550 feet of the well, the operator PetroQuest(PQ) was only able to obtain porosity information in the upper portion of the logged sands which confirmed 37 feet of net commercial pay. The operator is preparing to side track the wellbore in order to fully evaluate the entire sand package and test deeper objectives. The well has a proposed vertical depth of 19,300 feet and Stone expects to be on production by early 2012. (SGY is halted)
4:02PM ICU Medical beats by $0.11, beats on revs; guides FY11 EPS in-line, revs below consensus (ICUI) 45.15 -0.26 : Reports Q2 (Jun) earnings of $0.67 per share, $0.11 better than the Capital IQ Consensus Estimate of $0.56; revenues rose 12.9% year/year to $77.8 mln vs the $74.6 mln consensus. Co issues mixed guidance for FY11, sees EPS of $2.35-2.50 vs. $2.48 Capital IQ Consensus Estimate; sees FY11 revs of $297-305 mln vs. $306.08 mln Capital IQ Consensus Estimate.
4:01PM FriendFinder Networks announces acquisition of PerfectMatch.com (FFN) 4.65 +0.26 : Co announces the acquisition of PerfectMatch.com from Matrima. Terms not disclosed."This is the first step in an acquisition strategy that will strengthen our business and continue our growth."
4:01PM PetroQuest Energy announces a discovery at its La Cantera Prospect (PQ) 7.15 -0.28 : Co announced a discovery at its La Cantera Prospect located in Vermilion Parish, LA. The co has an ~16% net revenue interest in the well, which reached a total depth of 18,550 feet and logged 232 gross feet (176 feet net) of highly resistive sand within the primary Cris R Massive objective. As a result of stuck pipe in the bottom 550 feet of the well, the co was only able to obtain porosity information in the upper portion of the logged sands which confirmed 37 feet of net commercial pay. The co is currently side tracking the wellbore in order to fully evaluate the entire sand package and test deeper objectives. The well has a proposed vertical depth of 19,300 feet and is expected to be on production during Q4. In Oklahoma, the co recently completed six operated Woodford horizontal wells. In addition to the above completions, the co has reached total depth on six Woodford operated wells and expects to complete all six plus two additional Woodford operated wells during Q3. The Co is currently running three operated rigs and expects to add a fourth operated rig during Q3. In East Texas, the Co recently completed its first operated horizontal Cotton Valley well (NRI -39 %). The Co's third Classic operated horizontal Cotton Valley well (WI - 30%) has reached total depth and the Co's fourth Classic operated horizontal Cotton Valley well (WI - 30%) is nearing total depth. In the Niobrara, the Co's first SM Energy Co operated well (NRI -10%) was recently completed and achieved an initial 24 hour gross daily production rate of 837 barrels of oil. In South Texas, the Co's first operated Eagle Ford Shale well (NRI - 37%) located in Dimmit County was recently completed and achieved an initial 24 hour gross daily production rate of 253 barrels of oil.
3:57PM Commonwealth Bankshares named Donald Price as chief credit officer after receiving approval from federal and state banking authorities (CWBS) 0.39 +0.04 :
3:49PM Earnings Calendar (SUMRX) : Today after the close look for the following companies to report:
* BRO, ELS, IBM, ICUI, LNCR, MOS, PKG, SWK, STLD, WYNN, and ZION.
Tomorrow before the open look for the following companies to report:
3:48PM MEMC Elec and its SunEdison subsidiary join Flextronics (FLEX) to to create ~ 400 new jobs supporting solar module production (WFR) 7.41 -0.22 : Co announced the creation of ~400 jobs to ramp production of MEMC solar panels being manufactured at Flextronics' facility in Newmarket, Ontario.
3:23PM Gladstone Investments announces two independent proxy advisory firms recommend NAV proposal (GAIN) 7.32 -0.09 : Co announced two independent proxy advisory firms -- ISS Corporate Services and Glass Lewis recently issued a report recommending that stockholders of the Company vote for the proposal included in the proxy statement for 2011 Annual Meeting of Stockholders, which would allow the Company to issue and sell shares of its common stock below its then current net asset value per share.
3:01PM Fresh afternoon rebound highs for stock indices -- Dow -110, S&P -12, Nasdaq Comp -27 (SPY) : Relative sector strength in recent trade has been noted in Reg Bank KRE, Finance XLF, Semi SMH, Technology XLK, Biotech IBB, Industrial XLI.
2:33PM Commodities (COMDX) : Crude oil finished down $1.31 at $95.93, natural gas ended off 0.2 cents to $4.54, RBOB gasoline shed 3 cents to finish at $3.10, while heating oil closed down 4 cents to $3.08 (all Aug contracts).
2:17PM South Jersey Inds unit to sell certain Marcellus Shale assets to Endeavour International (END) for ~$9 mln in cash proceeds (SJI) 53.04 -0.99 : The transaction involves the co's working interests and its interests in the gathering system held through its 30% ownership in Potato Creek. Since 2008, Potato Creek has leased the deep mineral rights on the 21,000 acres to SM Energy (SM). Currently, three producing wells are located on this acreage and are included in the sale. SJI will retain its interest in the minerals and will continue to earn royalties on all gas production under the existing lease agreement. The closing is expected to occur in the fourth quarter of 2011.
1:35PM Stock indices push to minor new intraday rebound highs in recent action -- Dow -144, S&P -15, Nasdaq Comp -38 (SPY) :
1:31PM COMEX Metals Closing Prices (COMDX) : August gold closed higher by $12.90 to $1603.00. It traded to a new all-time high at $1607.90 earlier in the session. Sept silver ended up $1.15 to $40.23. Silver futures traded back above the $40 level for the first time since May 4. Sept copper ended lower by 10 cents to $4.403.
1:29PM Lannett receives FDA approval for Diethylproprion HCl tablets (LCI) 4.60 -0.13 : Diethylproprion HCl Tablets, 25 mg, is therapeutically equivalent to the reference listed drug, Tenuate Tablets, 25 mg, of Watson Pharmaceuticals (WPI)... Retail pharmacy sales of Diethylproprion HCl Tablets, 25 mg, at Average Wholesale Price were ~$3.3 mln for the year ending May, 2011, according to Wolters Kluwer. Additional sales of this drug are made through bariatric clinics. The company expects to commence shipping the product shortly.
1:01PM Transglobe Energy Corporation announces Block S-1 Yemen production back on line (TGA) 11.65 -0.34 : Co was advised on July 16th that the export pipeline from Marib to the Ras Issa facility on the Red Sea was repaired on July 15th. The operator of Block S-1 began shipping sales crude oil on July 16th and commenced production from the An Nagyah field. The operator is currently ramping up production from the field and is producing ~8,300 Bopd Gross this morning.
12:58PM Fresh intraday bounce highs for Finance XLF, Reg Bank KRE, Bank KBE in recent trade (XLF) :
12:49PM China Natural Gas successfully completed trial operation of its Jingbian liquefied natural gas plant on July 16 and has commenced production (CHNG) 3.50 +0.01 :
12:27PM Gamestop down for ninth day in a row in early trade, attempts to stabilize (GME) 23.66 +0.07 : Stock has dropped as much as 16.6% off its early July high to this morning's low (23.18) leaving its down for the ninth session in a row. It has bounced off the low as it attempts to stabilize near/above its 200 day ema (23.52).
12:18PM Seeing some limited relative strength in Rail -- CSX, NSC, UNP--, Networking, Disk Drive, Finance XLF on push off midday lows (TECHX) :
12:03PM New lows in stock indices -- Dow -171, S&P -19, Nasdaq Comp -43 (SPY) : The Nasdaq Comp has probed support noted in The Technical Take at 2743/2732 (session low 2744) with the S&P near support at 1294/1292 (session low 1295).
11:49AM iShares DJ Telecom vacillating near its its June low of 23.94 -- session low 23.93 (IYZ) 23.96 -0.54 : T, CTL, LUK, PCS, Q, S, VZ, WIN, NIHD, VMED, CCI, FTR. AMT.
11:45AM China Cablecom elects to voluntarily delist from the NASDAQ Capital Market (CABL) 0.22 +0.01 : Upon delisting from NASDAQ and following the expected filing of the annual report on Form 20-F, the Company expects that trading of its common shares by shareholders may be effected through quotations on the OTC Bulletin Board.
11:41AM Fractional new session low for S&P -17 and Nasdaq Comp -39, Dow -165 hovering just above its low (SPY) : Relative weakness in recent trade in Reg Bank KRE, Telecom IYZ.
11:37AM Transmontaigne Partners declared distribution of $0.62 per unit, representing a $0.01 increase over the previous quarter (TLP) 35.77 -0.19 :
11:33AM Merck announces VICTRELIS, first-in-class oral Hepatitis C Virus Protease Inhibitor, approved in the European Union for treatment of chronic Hepatitis C (MRK) 35.18 -0.44 :
11:32AM Optimer Pharma launches DIFICID (fidaxomicin) tablets for treatment of Clostridium difficile-associated diarrhea in patients 18 years of age and older (OPTR) 11.22 -0.20 : In two large Phase 3 clinical studies, DIFICID had clinical response rates at the end of the 10-day treatment period that were non-inferior to oral vancomycin. In addition, DIFICID was superior to vancomycin in sustained clinical response, defined as clinical response at the end of treatment and survival without proven or suspected CDAD recurrence through 25 days beyond the end of treatment. With the commercial availability of DIFICID, Optimer is initiating a Patient Assistance Program to help eligible uninsured and underinsured patients gain access to this important treatment option. DIFICID is the only FDA-approved treatment for CDAD that has demonstrated superiority to vancomycin in sustained clinical response and the first new drug approved for the treatment of CDAD in more than 25 years.
11:23AM Wireless Ronin to implement digital signage solution with Ford (F) retail sales (RNIN) 1.36 +0.03 : Co announced it is one of three providers that will offer a digital signage solution to Ford Motor Company's Ford and Lincoln dealerships. Wireless Ronin and Alteris Group have teamed up to create Alteris Group Powered by RoninCast to offer Ford and Lincoln dealerships with a service menu board solution. Wireless Ronin will provide hardware, software development, content engineering, training, solution implementation, and support. Alteris Group is a supplier to Ford and will provide sales and marketing experience services.
11:13AM Crude oil back above $95 after bouncing off of session lows at $94.69; now lower by $1.90 to $95.34 (COMDX) :
11:09AM $1607.70 new all-time highs for gold; currently higher by $15.70 to $1605.70 (COMDX) :
11:04AM General Motors will invest $328 mln to prepare its plant in Flint, Mich. to build the next generation of Chevrolet and GMC full-size pickup trucks (GM) 29.00 -0.76 :
11:01AM Ameresco signed agreement with Las Animas County, Colorado to begin the implementation of Energy Savings Performance Contract (AMRC) 14.34 -0.17 : As part of the ESPC, Ameresco will demonstrate how the improvements will generate energy and water savings that will cover the associated costs of the project over the term of the contract. In addition, Ameresco assisted the County's solicitation of bids from banks to finance the renovations over the next 10 years, alleviating upfront financial burdens on the County and allowing for near-immediate savings once the upgrades are completed.
11:01AM S&P -15 tests 1298 support amid extended/divergent posture and attempts to stabilize -- session low 1298.67 (SPY) : The 1298 level noted in The Technical Take marks the first thrust high off the June low with intraday indicators extended and divergent (new low index not confirmed by technical indicator).
10:58AM Fresh all-time highs for gold at $1604.50; now up $13.60 to $1603.70 (COMDX) :
10:58AM LDK Solar announced resignation of Louis Tung-jung Hsieh; Bing Xiang will take up the role as the acting chairman of the audit committee (LDK) 6.26 -0.26 : Xiang will take up the role as the acting chairman of the audit committee of the LDK board in place of Hsieh until Ngai assumes the chairmanship. Ngai has signed a service agreement with LDK Solar today. Ngai is joining the LDK Solar board as a class I director with an initial term to expire upon the conclusion of the annual general meeting of the LDK Solar shareholders later this year and is eligible for re-election for a term of three years at such annual general meeting. Effective today, the audit committee of the board of directors of LDK Solar will consist of the following three independent directors: Bing Xiang (acting chairman and audit committee financial expert), Liang Junwu and Maurice Ngai (audit committee financial expert). Similarly, effective today, Ngai will replace Hsieh as a member of the compensation committee and the corporate governance and nominating committee of the LDK Solar board. (stock is halted)
10:55AM Stock indices slide to fresh session lows -- Dow -163, S&P -17, Nasdaq Comp -38 (SPY) : Seeing relative sector weakness in Materials XLB, Disk Drive, Semi SMH, Internet FDN, Finance XLF, Housing XHB.
10:50AM Caterpillar vacillating near last week's low and its seven day range low at 106.67 -- session low 106.68 (CAT) 106.71 -2.19 :
10:46AM Gold and silver (GLD, SLV) staging moves to modest gap up highs here (TECHX) :
10:33AM Crude again testing the $95 level; currently off $2.14 to $95.10 (COMDX) :
10:32AM Dollar Index edges above its overnight high of 75.66 to test a resistance at 75.70 -- session high 75.69 (TECHX) : The 75.70 level marks the 50% retracement of the slide off last week's high and congestion.
10:27AM Magellan Petroleum Corporation begins Bakken and deeper formations development effort with Vaalco Energy (EGY) (MPET) 1.70 +0.02 : Cos signed a letter of intent to begin work on developing the Bakken formation and deeper horizons within the East Poplar Unit and Northwest Poplar Field in Roosevelt County, Montana. VAALCO has agreed to acquire 65% in return for cash consideration and for bearing 100% of the cost to drill three wells by the end of 2012. Parties would then move forward together as 65% / 35% owners respectively to further develop the prospects. (see 8:30 prior comment)
10:25AM S&P -12.7 attempting to stabilize after test of second level support (SPY) : The two day range breakdown and extension in the S&P has tested second level support noted in The Technical Take at 1300/1298 (psych, initial thrust high off June low) with a modest bounce in recent trade -- session low 1300.86. A rebound back to/through the 1306/1308 area is needed to improve the short term chart patterns. Next support below on on failure is at 1296/1294 (congest/62% retrace of June/July run, April/lat Feb lows -- see The Technical Take for chart).
10:17AM Michael Baker awarded a $26 mln contract from Tennessee Department of Transportation (BKR) 22.18 -0.44 : Contract is to perform construction management, construction engineering and inspection, surveying, as well as erosion prevention and sediment control inspections on a five-mile stretch of State Route 75 between State Route 35 in Washington County to State Route 375 in Sullivan County.
10:15AM JPMorgan Chase slips slightly under its June/ previous July low at 39.24 to set a new seven month low of 39.22 (JPM) 39.23 -0.75 :
10:10AM Crimson Exploration announces successful completion of Oil Rich Liberty County Well, Q2 production results and a 30% increase in its 2011 capital program (CXPO) 3.55 -0.12 : Co approved increasing its 2011 capital budget to $78 mln, a 30% increase, to accelerate oil weighted drilling activities. Crimson produced ~4.4 Bcfe of natural gas equivalents, or an ~48,740 Mcfe per day, during the Q2 2011, compared with 2.7 Bcfe, or 30,084 Mcfe per day YoY, a 62% increase. The Q2 production results were in line with management's guidance.
10:10AM Semiconductor Hldrs holding slightly above last week's low, its June low and late Dec reaction low at 32.20/32.13 -- session low 32.22 (SMH) 32.28 -0.30 :
10:07AM Orbital Sciences announced that the SES-3 satellite, built by the company for SES, was successfully launched into orbit (ORB) 16.38 -0.38 :
10:05AM Russell 2000 cash index broke below its 50 ema at 821, probing its 50 sma at 818 -- session low 818 (IWM) :
10:04AM Air Products to expand nitrogen capacity in Korea's Gumi national industrial complex (APD) 93.62 -0.69 : Co announced that it will increase production of gaseous nitrogen and expand its nitrogen pipeline in the Gumi National Industrial Complex, North Gyeongsang Province, Korea to serve the increasing demand of its electronics customers in the country's largest inland industrial complex. Air Products will build a new nitrogen plant at its site in the Gumi National Industrial Complex 2 and will expand its nitrogen pipeline to Complex 5. The new plant is expected to be onstream in the summer of 2012 and will serve the increasing needs of existing customers as well as new demand in Complex 5.
10:03AM Verisk Analytics announces additional $150 million share repurchase authorization (VRSK) 33.28 -0.03 : The authorization has no expiration date and may be suspended or terminated at any time. Repurchased shares will be recorded as treasury stock but will be available for future reissuance.
10:01AM General Dynamics acquires Network Connectivity Solutions; expected to be accretive to General Dynamics' earnings beginning in 2012 (GD) 69.44 -0.92 : The value of the transaction was not disclosed
10:01AM Stock indices see limited push off fresh session lows after housing data -- Dow -102, S&P -9.1, Nasdaq Comp -17 (SPY) :
10:01AM The Phoenix Cos announces strategic partnership with legacy marketing group (PNX) 2.37 -0.04 : Co announced a strategic alliance with the Legacy Marketing Group. This collaboration will allow the two organizations to combine their expertise in developing innovative annuity products and bring these solutions to a larger universe of consumers. In conjunction with this announcement, Legacy is announcing the launch of the CommandMarkSM fixed indexed annuity series. Designed for both pre-retirees and retirees, the CommandMarkSM Series is available exclusively through the Phoenix and Legacy alliance.
10:00AM Intersil announced opening of new enhanced low dose rate sensitivity testing facility (ISIL) 11.85 -0.33 : Co announced its continued commitment to the global space community by introducing its new Palm Bay, Florida ELDRS testing facility. The facility will perform low dose rate total ionizing dose acceptance testing for all Intersil radiation hardened products regardless of process technology on a wafer by wafer basis.
9:58AM Lagging Dow drops to new low of 12360, its 50 sma/ema come into play at 12345/12339 (DIA) :
9:54AM STMicroelectronics and Soundchip announced collaboration aimed at bringing HD-PA to market (STM) 8.78 -0.14 : The cos plan to deliver HD-PA Platforms and HD-PA Ready components that present an unbeatable combination of performance, reliability and speed to market.
9:53AM Crude to fresh lows at $95.75; now lower by $1.45 to $95.79 (COMDX) :
9:51AM Financial Select Sector sets new session/July low of 14.69, its eight month low from June is at 14.62 (XLF) 14.69 -0.16 : BAC, TRV, JPM, AXP, BK, GS, MS, STT, USG, WFC.
9:51AM Revett Minerals provides Q2 operations and Rock Creek litigation update (RVM) 4.90 +0.01 : Co announced Q2 2011 production from its Troy Mine in northwestern Montana of 342,822 oz of silver and over 3.03 mln lbs of copper production; 65% increase in silver and 60% increase in copper production YoY and 40% increase in silver and 51% increase in copper QoQ. Net cash provided from operations before capital expenditures for the Q2 of 2011 totaled $7.5 mln... Co annouces Oral litigations arguments were held in the U.S. Court of Appeals on July 14th in litigation regarding Rock Creek Alliance. The US Fish & Wildlife Service and Revett prevailed in the Federal District Court on the issues related to the Endangered Species Act in May of 2010 and the environmental groups have subsequently appealed that part of the District Courts ruling to the Ninth Circuit.
9:50AM Top Image Systems publishes tender offering to repurchase outstanding convertible debentures; co is offering a price of 0.93 NIS for every 1 NIS par value (TISA) 2.33 -0.02 : The offer is valid until August 1, 2011. The debentures are currently traded on the Tel Aviv Stock Exchange for the price of 0.94 NIS for every 1 NIS par value, and during the last three months were traded at an average price of 0.91 NIS for every 1 NIS par value.
9:48AM Relative sector weakness (TECHX) : Lagging groups thus far include Airline FAA -1.9%, Solar TAN -1.8%, Insurance KIE -1.14%, Crude Oil USO -1.4%, Steel SLX -1.1%, Bank KBE -1%, Telecom IYZ -1%.
9:48AM Opening Point Gainers/Losers (TECHX) : Point Gainers: WLT (+6.15), EDU (+5.78), PPDI (+4.64), AAPL (+4.43), TZOO (+3.84), GHL (+2.67), BVN (+2.46), CHKP (+1.88), RGLD (+2.03), WYNN (+183), JVA (+1.61), NUGT (+1.35), NEM (+1.33)
Point Losers: WBMD (-12.81), NFLX (-9.19), LNKD (-4.61), NABI (-3.92), SI (-2.42), CF (-1.59), SKYW (-1.68), CLX (-1.55), INFA (-1.48), HAS (-1.56), SNI (-1.37), DB (-1.46)
9:42AM Miller Industries' Miller Industries Towing Equipment awarded add-on order to manufacture 140 recovery units for a prime contractor under a government-related order (MLR) 17.97 +0.08 : These units are scheduled to be delivered through the end of 2011.
9:40AM IBM displaying relative strength, vacillating near last week's range top high at 176.32 after slight penetration (IBM) 176.23 +0.69 :
9:38AM S&P 500 -7.6 testing first level support (SPY) : A late low from Friday and its two day range low/last week's low noted in The Technical Take are at 1308/1306 (session low 1308).
9:35AM Stock indices weak off open with Dow -81 underperforming as it slipped under last week's low -- S&P -7.2, Nasdaq Comp -13.4 (SPY) :
9:33AM Early relative strength in Gold Miners GDX +1.2%, Silver SLV +2.6%, Gold GLD +0.4% (TECHX) :
9:28AM Amazon.com announced the launch of Kindle Textbook Rental (AMZN) 212.87 : Kindle Textbook Rental offers the ability to customize rental periods to any length between 30 and 360 days, so students only pay for the specific amount of time they need a book.
9:20AM On The Wires (WIRES) :
* GE (GE) wind turbine technology is making its debut in Estonia, one of Europe's most promising wind sectors, by supplying 18 wind turbines for the Paldiski Wind Farm. * Harris Corporation (HRS) received a $5.3 mln order from the Federative Republic of Brazil for Falcon VHF tactical radios. * Kyocera Mita Corporation together with EFI (EFII) announced that its new TASKalfa color multifunctional products available to customers worldwide, can now include an optional EFI Fiery Printing System 11/12. These new Fiery controllers are the result of a year-long partnership with EFI and further enhance the already robust capability of the TASKalfa color MFPs. * Great Wolf Resorts (WOLF), North America's leading family of indoor waterpark resorts, today announced that it has closed on a $56 million mortgage loan on its Concord, North Carolina property. The loan is scheduled to mature in July 2014. * Progenitor Cell Therapy, a wholly-owned subsidiary of NeoStem (NBS) announced that two existing clinical stage biopharmaceutical corporate clients have chosen to expand their development activities with PCT.
9:05AM NABI Biopharma reports result of First NicVAX Phase III Clinical Trial; did not meet its primary endpoint in first of 2 confirmatory trials (NABI) 5.63 : Co announces that NicVAX did not meet its primary endpoint in the co's first of two confirmatory Phase III clinical trials. A preliminary assessment of the trial data showed that subjects treated with NicVAX quit smoking at a similar rate of ~11% compared to subjects who received placebo. Abstinence was evaluated by self-reported cigarette consumption and biologically verified by exhaled carbon dioxide. Secondary endpoints included the abstinence rate at various time intervals, safety and immunogenicity, and the effect of NicVAX on withdrawal symptoms, cigarette consumption, smoking satisfaction and nicotine dependency. Co adds: "Data from this second trial may provide clues that could help explain the disappointing results from the first trial. In the meantime, the board of directors is actively evaluating any and all appropriate strategic alternative actions to preserve shareholder value, while management is working to further control the operational expenses of the company."
9:04AM Paragon Shipping entered into fixed rate time charter agreements for two of its Handysize newbuildings with Cargill International (PRGN) 1.86 : Co announces that it has entered into fixed rate time charter agreements for two of its 37,200 dwt, Handysize newbuildings with Cargill International S.A. Both vessels have been fixed for a period of two years at a gross daily rate of $12,125 commencing upon their delivery to the Company, which is expected to take place in the first quarter of 2012. In addition, the charterers have an option to extend the charter period for an additional year at a gross daily rate of $15,500.
9:03AM American Tower and Millicom International Cellular (MIICF) announce the sale of passive tower infrastructure in Colombia; sells up to 2,126 towers to a to-be-formed Colombian subsidiary for $182 mln in cash (AMT) 53.23 : Millicom and Colombia Movil's other shareholders will have an option to acquire an indirect, substantial minority equity interest in ATC Infraco. The towers are expected to be transferred in a series of closings beginning during the fourth quarter of 2011, subject to customary closing conditions.
9:02AM Aviat Networks appoints Michael Pangia as President & CEO; raises low end of Q4 revs guidance range (AVNW) 3.83 +0.10 : Co announced that effective today Michael Pangia, who was Aviat Networks' SVP and Chief Sales Officer, has been appointed President & CEO and a member of the Board of Directors. Chuck Kissner will continue as Chairman of the Board of Directors. Prior to joining Aviat Networks, Pangia held a number of executive positions at Nortel Networks... Although we have not yet finalized and completed all reviews of the financial results for the fourth quarter, co sees Q4 revs of $115-120 mln vs. $112.66 mln Capital IQ Consensus Estimate... In addition, co expects to report that the orders book-to-bill ratio was greater than 1 and that cash balance increased from end of the previous quarter. Also, given the need to complete the year end audit, this is the only guidance co intends to provide at this time.
9:01AM Thermo Fisher Scientific acquires TREK Diagnostic Systems; financial terms not disclosed (TMO) 63.24 : Co announced that it has acquired TREK Diagnostic Systems, a global provider of microbiology solutions, including blood culture, microorganism identification and antibiotic susceptibility testing products, from Magellan Biosciences. Based near Cleveland, Ohio, the co had full year revenue in 2010 of $34 mln and has 150 employees.
8:58AM On The Wires (WIRES) :
* Texas Instruments (TXN) introduced the industry's first fully integrated battery protection and cell-balancing solution for Li-Ion and lithium iron phosphate battery packs. * The Andersons (ANDE) announced it has entered a grain merchandising agreement with Trotter, Inc., of Arcadia, Neb.
8:51AM ServiceSource Intl filed a registration statement for a proposed follow-on public offering; a substantial majority of the shares to be sold in the offering will be sold by existing stockholders (SREV) 20.38 : Morgan Stanley and Deutsche Bank Securities are acting as the joint book-running managers for the offering. William Blair, JMP Securities, Lazard Capital Markets, Piper Jaffray, Oppenheimer, Wells Fargo Securities, and Credit Agricole Securities are acting as co-managers.
8:48AM Charles Schwab reports EPS in-line, revs in-line (SCHW) 15.01 : Reports Q2 (Jun) earnings of $0.20 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.20; revenues rose 10.2% year/year to $1.19 bln vs the $1.19 bln consensus. "Our valued clients are showing a resiliency in this environment that bodes well for the future. Although the economic recovery is progressing slower than hoped, clients remain solidly engaged with their investments, as cash holdings at Schwab have declined to pre-crisis levels. While trading activity is relatively soft, our diverse suite of investment products and services is propelling our ongoing growth, as clients increasingly opt to enroll in our advisory solutions. Client assets enrolled in Schwab retail advisory offerings increased to $113 bln at month-end June, up 20% year-over-year. Adding in assets under the guidance of an independent fee-based advisor brings total advised assets at quarter-end to $811 bln, up 17%. Overall, we ended June serving 8.1 mln active brokerage accounts, 745,000 banking accounts and 1.44 mln retirement plan participants. Despite a challenging environment, net new assets totaled $15.4 bln for the second quarter, up 10% from the second quarter of 2010 after adjusting for a large clearing outflow last year, and total client assets reached $1.66 trln at quarter-end, up 22% YoY."
8:41AM On The Wires (WIRES) :
* Ebix (EBIX) announced the addition of large distributors and insurance companies to its Annuity Exchange in the second quarter of 2011. * Digital Realty Trust (DLR) has signed a lease agreement with Adobe Systems (ADBE) in its 29A International Business Park data centre in Singapore. This Turn-Key Datacentre lease agreement provides Adobe with world-class data centre infrastructure to support its mission critical computing systems. * JDSU (JDSU) introduced the T-BERD/MTS-2000, an innovative compact modular test set that is capable of conducting the widest range of test applications for virtually every type of optical fiber network.
8:36AM Seracare Life Sciences has retained Lazard to provide advisory services to the Board of Directors (SRLS) 4.08 :
8:36AM Crude trades to lows of the morning at $96.23; now lower by $1.00 to $96.24 (COMDX) :
8:34AM Temple-Inland rejects International Paper's (IP) unsolicited tender offer at a price of $30.60/share in cash (TIN) 31.42 : Co announced that its Board of Directors, after careful consideration with its independent financial and legal advisors, voted unanimously to reject the unsolicited tender offer from International Paper Company (IP) to acquire all outstanding common shares of Temple-Inland at a price of $30.60 per share in cash. The Board unanimously determined that the offer grossly undervalues Temple-Inland and is not in the best interests of Temple-Inland's stockholders. The Board unanimously recommends that Temple-Inland stockholders not tender their shares into IP's offer.
8:32AM Bacterin International acquired the assets of Robinson MedSurg (BONE) 2.32 : For consideration of $1 million in Bacterin common stock at the closing date, Bacterin acquired ~$500,000 in inventory, existing commercial agreements and intellectual property, including a number of patents and patent applications. Upon the achievement of certain revenue goals generated by the assets over a two-year period, additional Bacterin common stock valued at $1 million will be paid to RMS. "We expect to be the only company in the space that can offer this technology with anti-microbial coatings, which we believe has an estimated $600 million market potential."
8:31AM Walter Energy: Audley Capital Advisors urges Walter Energy Board to explore sale (WLT) 110.94 : Audley Capital Advisors LLP, one of the largest investors in WLT and architect of last year's merger with Western Coal, announced that it has corresponded directly with WLT to share its belief that in the absence of a central executive management and a well-functioning board of directors, Walter's prevailing discount to fair value should be addressed through a sale to a trade buyer. In a letter sent directly to Michael T. Tokarz, Chairman of the Board at Walter Energy, and signed by Audley Managing Partner Julian Treger, Audley urged the Board to retain an investment bank and commence a managed sales process without delay. Audley holds ~900,000 shares in WLT representing ~1.5% of the co's issued share capital. They note the recent Macarthur Coal deal values WLT at $240/share.
8:31AM Endologix enter early termination agreement for European distribution rights of Endologix products; reaffirms FY11 rev guidance (ELGX) 9.36 : Co and LMAT announced that the companies have entered into an early termination agreement for LeMaitre's distribution rights of Endologix's aortic endovascular products in Europe. Under the terms of the agreement, Endologix will pay LeMaitre $1.3 million to begin selling direct on September 1, 2011. Previously, LeMaitre held distribution rights in certain European countries for Endologix's Powerlink System, and related products, through June 30, 2013. Co also reaffirms FY11 rev guidance of $78-82 mln vs. the $81.2 mln consensus.
8:31AM China Shengda Packaging announces $5 mln common stock repurchase; reiterates 2011 guidance (CPGI) 1.45 : Co announced that its board of directors has approved a share repurchase program for up to $5 million of its common stock over the next twelve months, subject to market and other conditions. Under this plan, the Company can repurchase shares from time to time for cash in open market purchases, block transactions, and privately negotiated transactions in accordance with applicable US federal securities laws. This share repurchase program may be modified, suspended, terminated or extended by the Company at any time without prior notice. The repurchases will be funded with available cash on hand. The Company also reiterated previous guidance expecting fiscal year 2011 revenues of between $115 million and $125 million (No estimates available), net income of between $11.5 million and $12.5 million, and diluted earnings per share of between $0.29 and $0.32 (No estimates available).
8:31AM Ener1 and Wanxiang receive Chinese government approval for joint venture (HEV) 0.79 : The joint enterprise is expected to achieve annual cell manufacturing capacity of 300 million Ampere hours annually by 2014.
8:30AM Vaalco Energy signs letter of intent to purchase additional bakken acreage from Magellan Petroleum (MPET) (EGY) 6.67 +0.35 : Co announced the signing of a letter of intent with Magellan Petroleum Corporation (MPET) to acquire and develop an operating working interest in approximately 23,000 net mineral acres of oil, gas and mineral leases covering the Bakken and deeper formations in the East Poplar Unit and the Northwest Poplar Field in Roosevelt County, Montana. VAALCO expects to complete the transaction during the next sixty days. Under the terms of the acquisition, VAALCO expects to acquire a 65% working interest in the Bakken and deeper rights of the Poplar Field. VAALCO will operate its deep rights in the subject acreage in return for cash consideration at closing and its funding of 100% of the cost to drill three wells by the end of 2012, including one well by June 1, 2012, at a cost to VAALCO of ~$5 mln per well.
8:18AM On The Wires (WIRES) :
* Seagate (STX) announced it has began distribution channel shipments of the Pulsar XT.2 solid state drive that combines outstanding and consistent performance with the data integrity and drive endurance needed for the most demanding enterprise environments, and is on track to commence channel shipments of the Pulsar.2 SSD, the first Multi-Level Cell Flash-enabled SSD from an enterprise hard drive maker. * Cadence Design Systems (CDNS) announced that China's HiSilicon Technologies Co achieved dramatic results in its verification flow using the Cadence Virtuoso Accelerated Parallel Simulator. * NetLogic Microsystems (NETL) and EZchip Semiconductor (EZCH) announced that the companies are collaborating to deliver the industry's highest performance, merchant, packet-processing solutions for IPv6-ready Terabit class systems. * Accenture (ACN) has secured a three year contract with Enel Energia, the leading supplier in the liberalized Italian energy market, to provide business process outsourcing services in support of Enel Energia's customer care operations. The financial terms of the contract were not disclosed. * Broadridge Financial Solutions (BR) and Compliance Technologies International jointly announced that they have entered into a partnership that integrates Broadridge's Tax Managed Services with CTI's Tax Withholding software. * Education Realty Trust (EDR) and the Edwards Companies announced the closing of financing and commencement of construction on a $41 mln apartment community adjacent to the eastern edge of the University of Alabama campus in Tuscaloosa. * Navios Maritime Acquisition (NNA) announced that the Buddy, a 2009-built MR2 product tanker vessel of 50,470 dwt, was delivered today to Navios Acquisition's owned fleet. * Yongye International (YONG) announced that it recently provided exclusive support to the "2011 Yongye Shengmingsu - Technology Caravan, A Thousand People Sending Farming Technology to the Countryside" project, which is hosted by the China Agriculture University and China Central Television Agricultural Channel. * Varian Medical Systems (VAR) announced its ARIA software for electronic medical records and clinical practice management in radiation oncology has been certified for clinics that can now use it to qualify for federal funding under the U.S. * Synageva BioPharma and Trimeris (TRMS) announced that Trimeris has filed a Form S-4 Registration Statement with the SEC pertaining to the previously announced merger of Trimeris and Synageva.
8:17AM Heading into the open of pit trade, gold futures are pulling back modestly from their new all-time highs at $1603.80; currently higher by $11.60 at $1601.70 (COMDX) :
8:16AM Gannett beats by $0.01, reports revs in-line (GCI) 13.48 : Reports Q2 (Jun) earnings of $0.58 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.57; revenues fell 2.2% year/year to $1.33 bln vs the $1.33 bln consensus.
8:14AM Gannett board of directors approved a 100% increase in its regular quarterly dividend to $0.08/share from $0.04/share; board authorized the resumption of share repurchases under the $1 bln share repurchase program (GCI) 13.48 :
8:07AM Hutchinson Tech announces results of exchange offer (HTCH) 3.13 : Co announced the final results of its previously announced offer to exchange for new securities and cash, at the election of each holder and subject to certain limitations, up to $50 mln of its 3.25% Convertible Subordinated Notes due 2026. The exchange offer for the Old Notes expired at midnight, New York City time, on July 15, 2011. In accordance with the terms of the exchange offer, the company will issue ~$45.1 mln aggregate principal amount of its 8.50% Convertible Senior Notes due 2026, and will make aggregate cash payments of $3 mln, plus cash amounts to be paid for fractional interests, in exchange for the ~$45.6 mln in aggregate principal amount of Old Notes tendered for exchange. A total of $76.2 mln principal amount of Old Notes will remain outstanding after completion of the exchange offer.
8:06AM Chipmos Technology reports Q2 $162.2 million (no ests), an increase of 4.5% from Q1 and an increase of 3.8% YoY (IMOS) 8.13 : Co reports June 2011 revenue of $53.0 mln, a decrease of 6.5% from May 2011 and a decrease of 3.2% YoY.
8:04AM Bionovo announces publication of Bezielle effect on metabolic fluxes in breast cancer (BNVI) 0.93 : Co announced the publication of a study of the metabolic effects of its drug candidate, Bezielle, on cancer cells in the International Journal of Cancer. The study describes how Bezielle induces selective death in cancer cells using a combined proteomic and metabolomic analysis. The study identified that Bezielle regulates important proteins controlling proliferation and death, such as Jab1, p27, p21 and nucleophosmin and prohibitin. The study concludes that the mechanism of action for Bezielle's cell killing effect is thereby confirmed by the concordance between the proteomic and metabolomic approaches. The paper, entitled, Bezielle induced oxidative stress damage followed by redistribution of metabolic fluxes in breast cancer cells.
8:03AM Nektar Therapeutics says NKTR-102 receives positive opinion from EMA COMP for Orphan Medicinal Product designation in ovarian cancer (NKTR) 7.64 : Co announces that the European Medicines Agency Committee for Orphan Medicinal Products has issued a positive opinion on its application for orphan medicinal product status for the company's lead oncology candidate, NKTR-102, for the treatment of women with ovarian cancer. "We are pleased to have received a positive opinion from COMP for orphan medicinal product status in Europe to augment the U.S. Orphan Drug Designation recently received in April, as we continue the treatment of patients in our Phase 2 study of NKTR-102 in women with platinum-resistant ovarian cancer."
8:02AM PetMed Express misses by $0.02, reports revs in-line (PETS) 11.58 : Reports Q1 (Jun) earnings of $0.22 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.24; revenues fell 1.1% year/year to $73.6 mln vs the $74.1 mln consensus. "Although our sales were slightly down due to our more aggressive flea & tick product pricing, we had a slight increase in orders, which was a positive. Additionally, our online sales increased by 3.4% to $54.1 million for the quarter, compared to $52.3 million for the quarter the prior year, with ~73% of our orders being generated from our website during the quarter compared to 70% for the quarter the prior year. During the quarter we bought back ~1.1 million shares of our common stock for $13.6 million, an average price of $12.67 per share."
8:02AM Sino Clean Energy to control 60% stake in Foshan Nan Hai CWSF through acquisition (SCEI) 2.03 : Co announced that it has entered into a non-binding, preliminary agreement to acquire 100% stake in Crown Energy Limited, an investment company registered in Hong Kong, which as its sole business holds a 60% stake in Foshan Nan Hai CWSF Co., Ltd.. If after due diligence the Company decides to complete the acquisition, Sino Clean Energy will control a 60% stake in Foshan Nan Hai, a producer and distributor of CWSF in China.
8:01AM Valence Tech sees Q1 revs of revs $13.5-14 mln vs $12.49 mln Capital IQ Consensus Estimate (VLNC) : Co sees Q1 revs of revs $13.5-14 mln vs $12.49 mln Capital IQ Consensus Estimate. "Our first quarter revenue is projected to be above our May 25, 2011 guidance of $8.5 to $10.5 million, principally due to significant shipments to Smith Electric Vehicles. In addition, we continue to see a positive trend in orders from both existing and new customers. This includes dozens of customers in diverse markets worldwide... We believe our products' performance, safety, durability, cycle life, and energy density offer a compelling solution. With five years of on-the-road experience and a family of standard and custom products, Valence is well positioned in pursuing a broad base of emerging worldwide markets. In addition, due to our experience and vertical integration Valence can quickly scale as markets mature and grow," continued Kanode.
7:51AM Great Panther Silver purchases new silver-gold project in Guanajuato for $1.5 mln (GPL) 3.90 : Co announced the acquisition of four mining concessions, totaling 1,514 hectares, ~10-15 kilometres northeast of Guanajuato, Mexico. The claims are located on the north-west extension of a system of multiple northwest-southeastern trending parallel structures that could be part of the "La Sierra" vein system. The La Sierra system is the most easterly of the three structural systems in the prolific Guanajuato district along with the main Veta Madre and the La Luz trends. Presently the Company is mining on the Veta Madre system at its Guanajuato Mine and exploring on the westerly La Luz system at the San Ignacio project.
7:46AM Ducommun announces contract for bombardier CSeries aircraft fuselage skins (DCO) 21.59 : Co announced that its Ducommun AeroStructures unit has been awarded a contract to manufacture fuselage skins for the Bombardier CSeries aircraft. Ducommun will deliver the fuselage skins, composed of advanced aluminum alloys, to Bombardier's China-based supplier and partner Shenyang Aircraft Corporation. The initial contract will cover a period of performance through 2015. All work will be performed at the DAS Gardena and Orange, California, facilities.
7:42AM Leap Wireless: Leading proxy advisory service glass lewis recommends Leap stockholders vote "FOR" Leap's Board nominees and proposals (LEAP) 14.73 : Co announced that Glass, Lewis & Co., a leading independent proxy advisory firm, recommends that stockholders vote in favor of all of Leap's nominees at the Company's July 28th Annual Meeting of Stockholders, and not in favor of nominees proposed by Pentwater Capital Management. Leap believes that Pentwater is an opportunistic investor with no long-term commitment to the Company and that Pentwater has failed to articulate any specific plan for Leap's business that the Company is not already pursuing. Leap continues to recommend that stockholders discard any gold proxy card they have received from Pentwater, and instead vote to elect the Company's slate of directors by voting FOR all of the Company's nominees on the WHITE Leap proxy card.
7:41AM On The Wires (WIRES) :
* China TechFaith Wireless Communication Technology (CNTF) today announced it will ship its TecFace branded mobile phone "Jungle" to the Middle East market in the third quarter of 2011. * Southern Union Company (SUG) announced that its Trunkline Gas Company subsidiary has completed the initial phase of construction to isolate its South Texas system to provide bi-directional flow for liquids-rich gas service. * Telvent (TLVT) announced that the Finnish utility company Fortum has selected Telvent to design, develop and implement a smart metering system for its Norwegian customers. * TASER International (TASR) announced that it received two orders for its revolutionary new evidence capture and management platform. These orders for the TASER AXON on-officer camera and EVIDENCE.COM service include orders from the Danbury Police Department and the Morristown Police Department. * Navistar International's Navistar Defense (NAV) announced that it received a delivery order for 140 International MaxxPro Recovery vehicles with rocket-propelled grenade nets from the U.S. Marine Corps Systems Command. The order for $142 million also includes parts and support for the Mine Resistant Ambush Protected vehicles. * CenturyLink (CTL) plans to invest at least $20 million to improve and expand broadband communications services in New Mexico now that it has merged with Qwest Communications. * VSE Corporation (VSEC) is pleased to announce that Federal Program Integrators, LLC an SBA approved protege of VSE, was approved as a prime contractor for a Seaport Enhanced contract vehicle by the U.S. Navy. * Maxim Integrated Products (MXIM) announced it has acquired SensorDynamics, a privately held semiconductor company that develops proprietary sensor and microelectromechanical solutions. * Echelon (ELON) announced Fortum Norway awarded a smart grid project to Echelon partner Telvent to deploy Echelon's smart metering system to Fortum Norway's 100,000 electricity customers.
7:30AM Ceradyne has received a delivery order for approximately $36.2 million for ESAPI ceramic body armor plates (CRDN) 33.99 :
7:26AM Publicis Groupe SA takes majority stake (51%) in social agency Big Fuel; has the possibility of increasing its participation to 100% from 2014 (PUBGY.PK) 26.42 :
7:25AM CCA Industries reached a tentative settlement of its trademark license dispute with Alleghany Pharmacal for a one-time payment to Alleghany of $600K (CAW) 6.05 : The co late Friday afternoon announced that it has reached a tentative settlement of its trademark license dispute with Alleghany Pharmacal Corporation in which it agreed to a one-time payment to Alleghany of $600K, an increase in the royalty rate from 1% to 2.5%, and a minimum annual royalty of $250K in order to settle this matter in full. Although management believed that the co had a meritorious defense and could prevail in a court of law, it was decided to settle the dispute as it did not want to risk the loss of two very profitable core brands, "Nutra Nail" and "Hair Off" and possible substantial liabilities which the co estimated could be as high as $1.9 mln. While the settlement has not been finalized, a contingent liability of $695K was recorded in the second quarter of fiscal 2011 to reflect the anticipated cost of settling this matter, which had a material effect on the second quarter results. The Company's results were also impacted by legal fees of ~$304K for the first half of fiscal 2011.
7:18AM Semi Manufacturing appoints Zhang Wenyi as Chairman, Executive Director, and acting CEO (SMI) 3.92 : Co announces that Zhang Wenyi has been appointed as co's Chairman, Executive Director, and acting CEO with effect from July 15th. The co will continue its search for a suitable candidate to fill the CEO position. Zhang previously served as the Chairman of the Board of Shanghai Hua Hong.
7:16AM Anadarko Petro announced finalization of a unitization agreement with Exxon Mobil (XOM) and co-owners to develop the Lucius field. (APC) 40.37 : The unitization includes portions of Keathley Canyon blocks 874, 875, 918 and 919 in the deepwater Gulf of Mexico. Anadarko will operate the unit with a 35% working interest. Following the unitization agreement, the Lucius interest owners entered into an agreement with the Hadrian South co-venturers whereby natural gas produced from the Hadrian South field will be processed through the Lucius facility in return for a production-handling fee and reimbursement for any required facility upgrades. Anadarko and the co-owners also recently completed an extended well test at the Lucius discovery that provided assurance regarding the flow rates and excellent reservoir characteristics of the field. With equipment-constrained rates in excess of 15,000 BOPD of high-quality oil the test provided additional confidence in Anadarko's previous resource estimates and indicated that Lucius can be developed with a minimal number of wells. Co-owners in the Lucius unit include Plains Exploration & Production Company (PXP) with a 23.3% working interest; Exxon Mobil Corporation (XOM) with a 15-percent working interest.
7:08AM Kodiak Oil & Gas proposes public offering of 20 mln shares common stock (KOG) 6.58 : Co intends to use the net proceeds of the offering to repay debt outstanding under its revolving credit facility, to fund capital expenditures related to drilling, development and infrastructure, principally in the Bakken play located in North Dakota, and for general corporate purposes, including financing the potential acquisition of oil and gas properties in certain core areas, such as the Bakken play.
7:07AM Chesapeake Energy Buffalo Creek well in Oklahoma reaches rare 60 bcf production milestone (CHK) 32.96 : Co announces its Buffalo Creek 1-17 well located in Beckham County, Oklahoma, recently surpassed cumulative gross production of more than 60 bln cubic feet of natural gas. Chesapeake operates the well with an 82.6% working interest and a 65.8% net revenue interest. Total gross capital expenditures to drill and complete the well were $8.5 mln and subsequent operating expenses have been $1.4 mln, or $0.024 per thousand cubic feet of natural gas equivalent. Total gross revenue has been ~$320 mln, which includes ~$65 mln paid to royalty owners and ~$15 mln paid in severance tax to the state of Oklahoma.
7:06AM Barrick Gold: Carpathian Gold Inc. Announces $20 Million Strategic Placement by Barrick Gold Corporation (ABX) 48.25 +0.36 : Carpathian Gold announced that it has concluded an agreement with Barrick Gold (ABX) for a CDN$20 million private placement to purchase 38,461,538 common shares of the Corporation at a price of $0.52 per share.
7:05AM Shire plc: Lialda now approved in U.S. for maintenance of remission of ulcerative colitis (SHPGY) 99.67 : Co announes the FDA approved Lialda Delayed Release Tablets for the maintenance of remission in patients with ulcerative colitis. This approval follows the previous indication of Lialda approved by the FDA in 2007 for the induction of remission in patients with active, mild to moderate ulcerative colitis.
7:05AM MGIC Investment misses by $0.62, beats on revs (MTG) 6.00 : Reports Q2 (Jun) loss of $0.75 per share, $0.62 worse than the Capital IQ Consensus Estimate of ($0.13); revenues fell 9.7% year/year to $367 mln vs the $351.6 mln consensus. At June 30, 2011, the percentage of loans that were delinquent, excluding bulk loans, was 13.40%, compared with 14.94% at December 31, 2010, and 14.97% at June 30, 2010. Including bulk loans, the percentage of loans that were delinquent at June 30, 2011 was 15.80%, compared to 17.48% at December 31, 2010, and 17.59% at June 30, 2010.
7:05AM Entergy sees Q2 EPS above consensus; reaffirms FY11 EPS guidance (ETR) 67.34 : Co issues upside guidance for Q2 (Jun), sees EPS of ~$1.75 vs. $1.61 Capital IQ Consensus Estimate. Co reaffirms guidance for FY11 (Dec), sees EPS of $6.35-6.85 vs. $6.60 Capital IQ Consensus Estimate. The 2Q11 earnings improvement was due to higher earnings at Utility and Parent & Other, partially offset by lower results at Entergy Wholesale Commodities. Second quarter 2011 earnings also reflect accretion from Entergy's share repurchase programs. The increase in Utility 2Q11 earnings was driven by higher sales volume and pricing adjustments from previous rate actions, as well as lower interest expense. Utility sales volume growth reflected a favorable QoQ weather variance and continued strength in the industrial sector. Well above-normal temperatures were recorded throughout the service territory in the current quarter. The quarter-over-quarter decrease in earnings at Entergy Wholesale Commodities was driven by lower net revenue. Lower pricing on its nuclear fleet was the primary factor in net rev. Also contributing to the lower results was a higher effective income tax rate arising out of a Michigan state tax law change.
7:02AM Cyclacel Pharma amends its sapacitabine license agreement with Daiichi-Sankyo (DSKYF) (CYCC) 1.22 : Co announces DSKYF has irrevocably waived a termination right it possessed under a provision of the License Agreement that required the co to obtain regulatory approval to sell sapacitabine in at least one country by September 2011.Co has been released from all claims and liability of any kind arising under such provision. Future net sales of sapacitabine excpected to increase by ~1.25% to 1.50%.
7:01AM Fuel-Tech awarded air pollution control orders totaling $6.9M (FTEK) 6.98 : Co announced receipt of multiple air pollution control orders totaling $6.9 mln. The largest of these orders, placed by a major utility and an existing customer, was an award of a Selective Non-Catalytic Reduction project utilizing a combination of NOxOUT and HERT High Energy Reagent technologies for a large coal-fired unit located in the midwestern U.S.
7:00AM Halliburton beats by $0.08, beats on revs (HAL) 53.08 : Reports Q2 (Jun) earnings of $0.81 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus Estimate of $0.73; revenues rose 35.3% year/year to $5.93 bln vs the $5.7 bln consensus. These increases were primarily attributed to improved pricing and equipment utilization in United States land, where nearly all product service lines have benefited from the shift to unconventional oil and liquids-rich basins. "I am extremely pleased with our second quarter results as total revenue set yet another co record. North America continues to deliver very strong growth in revenue and profitability, while international profit recovered modestly. As a whole, our level of operating margin was the highest it has been since 2008. North America revenue grew by 16% sequentially compared to United States rig activity growth of 6%, with incremental operating margins of greater than 50% for both divisions. This was driven by the execution of our North America growth strategy in liquids-rich basins, and our customers' continued adoption of our integrated solutions."
7:00AM Endeavour Intl offers $110 mln convertible senior notes due 2016 in a private placement (END) 16.39 : Endeavour intends to use substantially all of the net proceeds of this offering to fund its pending acquisition of acreage and related midstream assets in the Marcellus shale play. The remainder, if any, will be used for general corporate purposes, including funding a portion of Endeavour's 2011 capital program.
6:56AM Kodiak Oil & Gas recently completed two gross wells; co expects to begin completion work on an additional eight gross operated wells during the 3Q of 2011 (KOG) 6.57 : Co announced drilling and completion operations are ongoing with 10 gross operated wells scheduled to be completed or where completion operations will commence during the third quarter of 2011. Co expects to begin completion work on an additional eight gross operated wells during the 3Q of 2011. The operated wells are comprised of: a four-well pad in Dunn County, where oil and gas pipelines have been laid into the location, and completions are expected to commence in the next few weeks; a two-well pad in Dunn County; and a two-well pad in the Smokey Project area in McKenzie County. In addition, the co announced with respect to the first lien senior secured revolving credit facility, the amount available to the Company for borrowing was increased to $110 mln from the previously available $75 mln.
6:41AM SM Energy enters into agreements to divest of Marcellus Shale Assets (SM) 77.77 : Co announces it has entered into agreements with a subsidiary of Endeavour International (END) to sell its Marcellus shale assets in McKean and Potter Counties, Pennsylvania for total cash proceeds of ~$80 mln. The transactions include the co's entire leasehold position in the play of ~42,000 net acres as well as associated pipeline assets. There are currently three producing wells on the acreage with average first quarter production of 2 MMCFE/d.
6:35AM On The Wires (WIRES) :
* Akamai Technologies (AKAM) announced its NetAlliance Partner Program designed for global IT solution providers to integrate Akamai services into their offerings, and to pass the value of Akamai's globally-distributed platform on to customers. * Uroplasty (UPI) announced that two additional private insurance payers will cover posterior tibial nerve stimulation using its Urgent PC Neuromodulation System for the treatment of overactive bladder and associated symptoms.
6:31AM GLG Life Tech announces FDA issuance of two letters of no objection for BlendSure and PureSTV stevia extracts (GLGL) 7.09 : Co announced the FDA has issued a Generally Recognized as Safe Letter of No Objection & GRN000349 for GLG's high purity stevia extracts: PureSTV and BlendSure. These high purity extracts both contain greater than 95% steviol glycosides. The GRAS process is a legal and FDA-approved process that allows companies to conduct their own GRAS determinations by consulting with an independent panel of scientists to determine if an ingredient meets the FDA's criteria for safety.
6:10AM On The Wires (WIRES) :
* Move (MOVE) announced its acquisition of SocialBios, an award-winning social search platform. * Kamylon Capital, has sold substantially all of the assets of its portfolio company, Forgitron Technologies, to Accuride Corporation (ACW). Assets included an 80,000 square foot forging facility located in Camden, SC. Kamylon restarted the once-shuttered plant after acquiring the company through a 363 bankruptcy process in 2008.
6:02AM Range Resources 2Q production volumes averaged 508.0 Mmcfe net per day, an 8% increase YoY (RRC) 61.78 : Co announced production was 76% natural gas, 17% natural gas liquids and 7% crude oil. Co also announced 2Q drilling expenditures of $280 mln funded the drilling of 91 wells and 4 recompletions. A 100% success rate was achieved. YTD drilling expenditures for 2011 have been $547 mln. For the first six months of 2011, Range has drilled 146 wells. Of these wells, 26 wells have been placed on production while 120 wells are currently in various stages of completion or waiting on pipeline connection. The co also announced that its preliminary second quarter 2011 commodity price realizations averaged $5.63 per mcfe. This represents an 11% increase over the prior-year period.
5:34AM Eli Lilly new data showed minimal potential for drug interaction between cholesterol drug LIVALO and a common antiretroviral therapy (LLY) 38.33 : Co and its partner Kowa Pharma released new study results that investigated the potential interaction of cholesterol drug LIVALO 4 mg in healthy volunteers taking the protease inhibitor combination lopinavir/ritonavir, a fixed dose combination drug for the treatment of HIV infection. A second objective of the study was to investigate any potential effect on the safety of LIVALO by the addition of lopinavir/ritonavir. No significant safety issues were observed. Eighteen of 24 patients reported at least one treatment emergent adverse event, with the highest percentage coming from subjects receiving lopinavir/ritonavir only. All TEAEs were mild in severity, except for four subjects who had TEAEs after lopinavir/ritonavir only that were moderate in severity.
5:31AM New Oriental Education & Technology beats by $0.13, beats on revs; guides Q1 revs above consensus (EDU) 123.02 : Reports Q4 (May) earnings of $0.37 per share, $0.13 better than the Capital IQ Consensus Estimate of $0.24; revenues rose 58.7% year/year to $137.4 mln vs the $120 mln consensus. Co issues upside guidance for Q1, sees Q1 revs of $255.8-265.4 mln vs. $254.91 mln Capital IQ Consensus Estimate. Total student enrollments in academic subjects tutoring and test preparation courses increased by 11.9% year-over-year to ~489,100, from ~437,200 in the same period of the prior fiscal year.
5:27AM Check Point Software beats by $0.02, beats on revs (CHKP) 56.58 : Reports Q2 (Jun) earnings of $0.68 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.66; revenues rose 15.1% year/year to $300.6 mln vs the $295.9 mln consensus. Additionally, during Q2, the co repurchased 1.38 mln shares at a total cost of $75 mn.
4:28AM On The Wires (WIRES) :
* ProconGPS has announced the acquisition of the patents governing the repossession of automobiles in the Vehicle Finance Industry from CalAmp (CAMP). * Lattice Semiconductor (LSCC) announced release 6.1 of its PAC-Designer mixed signal design software, with updated support for Lattice's Platform Manager, Power Manager II and ispClock devices. * Logitech (LOGI) introduced HD video and audio security solutions for small businesses: the Logitech Alert B700i PoE Camera and Logitech Alert B700e PoE Outdoor Camera. * Cimatron (CIMT) announced that it has released CimatronE 10 after several months of highly successful beta testing. * The Export-Import Bank of the United States announced that it is providing a $16 mln long-term loan to support the exports of First Solar (FSLR) in Tempe, AZ, to Azure Power Rajasthan in New Delhi.
2:51AM Greenhill beats by $0.36, beats on revs (GHL) 46.50 : Reports Q2 (Jun) earnings of $0.69 per share, $0.36 better than the Capital IQ Consensus Estimate of $0.33; revenues rose 8.7% year/year to $90.8 mln vs the $73.3 mln consensus.
2:44AM Amarin provides Q2 update on cash position; cash and cash equivalents as of June 30, 2011 totaled ~$131.5 mln, up from $129.5 mln on March 31, 2011 (AMRN) 13.63 :
2:38AM SkyWest expects Q2 financial results for Q2 to be lower than it previously anticipated (SKYW) 14.72 : Co announces that it expects its financial results for the quarter ended June 30, 2011, to be lower than it previously anticipated. Due primarily to the reasons discussed below, SkyWest currently estimates that its financial performance will be breakeven for the quarter ended June 30, 2011. First, co's operating airlines have experienced additional crew costs during the quarter ended June 30, 2011. Co currently anticipates that the aggregate impact of the additional crew costs for the quarter ended June 30, 2011 will be ~$14.5 mln (pre-tax). Second, SkyWest incurred merger related costs attributable to the integration of ExpressJet's operations into Atlantic Southeast's operations, and other cost increases, such as health care, in the aggregate amount of ~$7.0 mln. Lastly, co estimates that it will recognize a loss attributable to the operations of such entities in the aggregate amount of ~$3.0 mln (pre-tax) for the quarter ended June 30, 2011. In connection with these the items outlined and as a result co's financial results for the third and fourth quarters of 2011 will be significantly lower than SkyWest management previously anticipated.
2:30AM On The Wires (WIRES) :
* Garmin (GRMN) announced that it has received antitrust clearance from Germany's Federal Cartel Office in connection with the planned acquisition of privately held navigation provider Navigon AG by a subsidiary of Garmin. * Novartis (NVS) announced that the co has started shipping seasonal influenza vaccine to its US customers for the 2011-2012 influenza season. Co plans to ship over 30 mln doses of Fluvirin vaccine to US customers for 2011-2012 season with sufficient supply to meet customer demand. * Southwest Airlines (LUV) announced an agreement in principle between the Southwest Airlines Pilots' Association, the union representing Southwest Airlines Pilots and the Air Line Pilots Association, the union representing the pilots of AirTran Airways. * ComEd, a unit of Exelon (EXC), announced that it has restored power to virtually all of the 850,000 customers (99%) who were affected by one of the most severe storms the co has faced in recent history. * MovieTickets.com, a joint venture between AMC Entertainment, Hollywood Media (HOLL), National Amusements, Cineplex Entertainment, Marcus Theatres (MCS), Viacom (VIA) and Time Warner (TWC), reports that Harry Potter and the Deathly Hallows: Part 2 has shattered multiple online advance ticketing records. In addition to overall records, the final installment of the franchise sold at least twice the amount of tickets than any other movie in 2011. * Logitech (LOGI) disputed the merit of a patent infringement lawsuit filed by Universal Electronics regarding remote control technology. Additionally, co states four of the seventeen patents in the lawsuit were never raised by UEI in the license renewal discussion. * Emmis Communications (EMMS) announced that New York rock station WRXP-FM will continue to live on, streaming online through the station's website, 1019RXP.com as well as through existing mobile applications. * Adobe Systems (ADBE) announced that it has acquired EchoSign, a leading Web-based provider of electronic signatures and signature automation. * Accenture (ACN) has been selected by the Ministry of Internal Affairs to design and deliver Automated Border Control Systems at Schiphol airport in Amsterdam. * Suntech Power (STP) unveiled the Suntech 300W Vd series, a new generation high-efficiency solar module, for Israel, available immediately. * iGATE Patni, the integrated technology and operations brand of iGATE (IGTE) and Patni, providing Business Outcomes-based solutions, announced it has signed a $30 mln contract to provide managed IT infrastructure service operations to the Weyerhaeuser (WY). * Pursuant to the Belgian Law relating to the publication of major shareholdings in listed companies, Delhaize Group (DEG) has received a notificationof the threshold of 3% being crossed downwards by AllianceBernstein which owns 2.98% of Delhaize Group's voting rights.
2:16AM Forest Labs and Pierre Fabre Medicament announce positive Phase III results with Levomilnacipran in patients with major depressive disorder (FRX) 38.46 : Co announces preliminary top-line results from a Phase III study of levomilnacipran for the treatment of adults with major depressive disorder. Analyses of the data indicate a statistically significant improvement was achieved for levomilnacipran treated patients for all dose groups compared to placebo on the primary efficacy endpoint which was change from baseline to end of week 8 in the Montgomery-Asberg Depression Rating Scale-Clinician Rated total score. Further analyses of the data are ongoing. Levomilnacipran was generally well-tolerated in the study. The most common adverse events observed in the levomilnacipran dose groups were: nausea, constipation, increase in heart rate, and hyperhidrosis.
2:08AM EpiCept announces publication in Journal Blood of a new meta-analysis examining lack of efficacy of Interleukin-2 as monotherapy in AML remission maintenance; provides pivotal role for co's Celpene (EPCT) 0.53 : Co announces the publication of a new meta-analysis which concluded that interleukin-2 monotherapy is not effective as a maintenance therapy for acute myeloid leukemia patients in first complete remission. The authors highlight the view that the efficacy of IL-2 monotherapy could be hampered by the activity of other immune cells. Several preclinical studies have established a role for Ceplene to protect the viability and function of anti-leukemic lymphocytes. A Phase III randomized trial of AML patients in complete remission with Ceplene/IL-2 combination therapy resulted in a significant prolongation of LFS and a trend towards improvement in OS. The authors conclude that the suggestion that IL-2 has the potential to improve LFS and OS in AML may be valid, but for IL-2 to exert a significant clinical effect on relapse prevention in this disease, its activity may need to be protected by Ceplene. Co states, "The conclusion of this meta-analysis validates our approach that Ceplene in combination with IL-2 is effective in remission maintenance therapy. Our clinical trial is the only remission maintenance trial to show a clear benefit in prolonging LFS in AML patients."
2:00AM Validus Holdings provides Transatlantic (TRH) Board with supplemental materal underscoring superiority of Validus merger proposal (VR) 28.25 : Validus Holdings (VR) announces that it provided the Board of Transatlantic Holdings (TRH) with supplemental information highlighting the superior nature of its proposal to merge Validus and Transatlantic as compared with the proposed acquisition of Transatlantic by Allied World Assurance (AWH). The highlights are:
* Validus proposal provides superior upfront value than AWH acquisition * Emphasis on short tail lines positioned to maximize profitability and drive superior book value growth * Validus expects combination to generate substantially more than $80 mln in synergies and increase Validus' excess capital by over $500 mln * Combination will create $1.1 bln of Pre-Synergy, Precatastrophe Earnings Power Available for Expanded Share Repurchases * Validus expects to actively manage capital consistent with its past practices * Validus and Transatlantic brands will continue on in their respective markets after a merger and Validus will seek to retain the Transatlantic management team
1:52AM Hertz Global to acquire Donlen in $930 mln transaction; immediately accretive to earnings (HTZ) 14.88 : Co and Donlen announced they have signed a definitive agreement for Hertz to acquire Donlen, a leading provider of fleet leasing and management services. Co is purchasing Donlen for $250 mln , and will be assuming ~$680 mln of Donlen's outstanding fleet debt. Co expects to refinance Donlen's debt at improved financing terms. Co believes the acquisition will be credit neutral and will strengthen its business profile given Donlen's business mix and diversified lease portfolio. This transaction is immediately accretive to co's earnings and is EVA positive in year one. Hertz has identified $20 mln of synergies, primarily fleet-related.
1:47AM Cellcom Israel files Shelf Prospectus in Israel; no decision has been made as to the execution of any such offering, nor as to its scope, terms and timing (CEL) 26.23 :
1:43AM Elbit Medical Imaging concludes off-market takeover bid for the Units of the $ 1.4 bln listed Real Estate Trust EDT (EMITF) 6.09 :
1:34AM Indonesia volcano erupts over the weekend causing increased ash, according to reports out over the weekend (IDX) 32.91 : Click here for AP story.
1:33AM Liz Claiborne in discussions to sell Mexx unit, according to reports out on Friday (LIZ) 5.14 : Click here for Bloomberg.com story.
1:28AM Transcept Pharma plans to reduce expenses by decreasing staff following Complete Response Letter from FDA on Intermezzo New Drug Application (TSPT) 4.87 : Co announces plans to reduce operating expenses by eliminating ~45% of its workforce following notification from the FDA that the resubmitted NDA for Intermezzo, the co's lead product candidate, cannot be approved in its present form. Intermezzo is being developed for use as-needed in the treatment of insomnia when a middle-of-the-night awakening is followed by difficulty returning to sleep. Co expects to record a restructuring charge of ~$1.1 mln in the third quarter of 2011, representing severance and benefit continuation expenses, the majority of which will be paid in the third quarter of 2011. Co also expects to record a stock compensation charge associated with the modification of certain stock options in connection with the restructuring that will be determined and recorded in the third quarter of 2011. Co expects the organizational change will reduce current annualized payroll and benefit expenses by ~$2.1 mln.
1:20AM Lakeland Industries reports termination of DuPont (DD) licensing agreement (LAKE) 8.76 : Co announces that due to its successful overall global growth strategy, co does not expect the termination of its licensing relationship with DuPont (DD) to have a significant impact on co earnings in FY12 or FY13. Co states "...while there will doubtless be some impact on the remainder of FY12 and early FY13, overall FY12 and FY13 earnings should not be significantly impacted. We are still projecting much improved operating earnings over FY11 for both years."
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