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Earnings release

Jun 24/a MARA
Jun 25/b MFG LEN KEP FDS WEI BNED


In Play from Briefing.com

Updated: 25-Jun-19 20:00 ET

18:00  QD Qudian proposes to offer up to US$250 mln of convertible senior notes due 2026 (8.46 -0.26)

The Company intends to use the net proceeds from the Notes Offering to pay the cost of certain capped call transactions.
17:36  TGT Target announces two-day Target Deal Day event (July 15-16) featuring same-day delivery and pickup options (85.70 -1.02)

"Last year's Target.com One-Day Sale was one of our biggest days of the year for online sales... This year, we're giving guests more discounts across even more of our assortment with two days to save on hundreds of thousands of items and offering the best options in retail for delivery and pick up on their terms, including same-day."
17:31  FTI TechnipFMC reaches global resolution of U.S. and Brazilian legacy investigations; agreed to pay a total of $301.3 mln to authorities (24.96 +0.22)

  • As part of this resolution, TechnipFMC entered into a three-year Deferred Prosecution Agreement with the DOJ related to charges of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) related to conduct in Brazil and with Unaoil. In addition, Technip USA, Inc., a U.S. subsidiary, pled guilty to one count of conspiracy to violate the FCPA related to conduct in Brazil. The Company will also provide the DOJ reports on its anti-corruption program during the term of the DPA.
  • As previously disclosed, TechnipFMC has also been cooperating with an investigation by the French Parquet National Financier (PNF) related to historical projects in Equatorial Guinea and Ghana. To date, this investigation has not reached resolution. TechnipFMC remains committed to finding a resolution with the PNF and will maintain a $70 million provision related to this investigation.
17:08  NBRV Nabriva Therapeutics entered into $50 mln "Open Market Sale Agreement" with Jefferies (2.11 +0.01)

 
16:58  MU Micron on Conference Call- Sees revenue in the range of $4.3-4.7 bln, S&P Capital IQ consensus $4.558 bln; Sees EPS in the range of $0.38-0.52, Cap IQ consensus $0.70

 
16:42  BBVA Banco Bilbao Vizcaya Argentaria files mixed securities shelf offering (5.52 -0.05)

 
16:31  GBCI Glacier Bancorp increases quarterly dividend to $0.27/share from $0.26/share (39.22 -0.09)

 
16:29  INXN InterXion announces public offering of 4 mln common shares (75.11 -0.40)

 
16:26  CRCM Care.com CFO Michael Echenberg tenders his resignation, effective on August 30, 2019 (14.09 +0.18)

The company expects that Michael Goss, the company's Vice President of Finance, will be appointed acting Chief Financial Officer of the company upon the effectiveness of Mr. Echenberg's resignation. Mr. Echenberg will assist in the transition of the Chief Financial Officer role until his departure from the company.
16:25  CRTO Criteo COO Mollie Spilman resigns effective July 5 to pursue a new career opportunity (17.96 -0.11)

Ms. Spilman has decided to leave the company to pursue a new career opportunity. She will continue with the company through the end of 2Q19 and depart on July 5, 2019. With Ms. Spilman's departure, CEO JB Rudelle will directly manage the sales and operations teams to ensure faster execution of Criteo's transformation plan.
16:22  LILA Liberty Latin America proposes offering of $350 mln aggregate principle amount of Convertible Senior Notes due 2024 in private placement (18.08 -0.51)

Liberty Latin America expects to use a portion of the net proceeds from the sale of the notes to fund the cost of certain capped call transactions and to use the remaining funds for other general corporate purposes.
16:20  BIG Big Lots appoints Jonathan Ramsden as EVP-Chief Financial and Administrative Officer effective August 5; reaffirms Q2 / FY EPS and sales guidance (27.78 +0.31)

  • Mr. Ramsden will succeed Timothy A. Johnson, who will transition away from his roles effective August 5, 2019, to pursue other opportunities in the for-profit and not-for-profit arenas. Mr. Johnson has agreed to continue in an advisory role through Labor Day to provide the opportunity for a smooth transition for the business. Mr. Ramsden spent over seven years with Abercrombie & Fitch (ANF), joining as Chief Financial Officer in 2008 and later serving as the company's Chief Operating Officer. 
  • In connection with today's announcement, Big Lots reaffirmed its financial forecast for the second quarter and full year of fiscal 2019, as previously disclosed on May 31, 2019. Prior Guidance: Q2 EPS of $0.35-0.45 vs. $0.42 S&P Capital IQ Consensus and FY20 EPS of $3.70-3.85 vs. $3.78 S&P Capital IQ Consensus.
16:20  HFFG HF Foods enters into merger agreement with B&R Global Holdings, a food wholesaler and distributor for Asian restaurants (25.27 +1.25)

Co and B&R Global Holdings announce that they have entered into a merger agreement pursuant to which they will combine their operations. Pursuant to the terms of the merger agreement, at the closing of the merger, B&R Global Holdings will merge into HFFF's wholly owned subsidiary, resulting in B&R Global Holdings becoming a wholly owned subsidiary of HF Foods.

HFFG will issue approximately 30.7 mln of its shares of common stock to the former shareholders of B&R Global Holdings as consideration for the transaction.

The combined business will serve in excess of 10,000 restaurants in 21 states and had revenues in excess of $800 mln in 2018.

16:20  WRAPX Closing Stock Market Summary

The S&P 500 lost 1.0% on Tuesday, as subdued expectations for next month's Fed rate decision and the upcoming G-20 summit contributed to a risk-off mindset. Shares of technology companies, particularly the mega-cap stocks, underperformed the broader market. 

The Nasdaq Composite lost 1.5%, the Dow Jones Industrial Average lost 0.7%, and the Russell 2000 lost 0.6%.

St. Louis Fed President James Bullard (FOMC voter), who was the lone dissident in this month's FOMC meeting, said he didn't think it was necessary to cut the fed funds rate by 50 basis points. Instead, he favored a 25 basis points reduction, viewing it as an "insurance" cut. 

This stance from one of the Fed's most vocal doves, in addition to comments from Fed Chair Powell, tempered the market's hopes for a 50 basis points cut next month. Fed Chair Powell reminded the market that monetary policy should not overreact to any individual data point or short-term swings in sentiment. 

Expectations for the upcoming G-20 summit were also lowered after a White House official told Reuters that the U.S. will not accept any new tariff conditions and that the U.S. is not willing to concede to the Chinese on trade. The goal is to simply reopen talks, which was not the constructive tone the market was anticipating. 

These subdued expectations, along with some disappointing economic data, contributed to some broad-based profit taking in equities. Ten of the 11 S&P 500 sectors finished lower, led by the mega-cap stocks within the information technology (-1.8%), communication services (-1.6%), and consumer discretionary (-1.1%) sectors. The materials sector was unchanged. 

Regarding economic data, new home sales for May and consumer sentiment for June both declined below expectations. On a related note, home construction company Lennar (LEN 48.22, -3.19, -6.2%) provided investors with downside Q3 guidance. 

In M&A news, the health care sector (-0.4%) was home to a mega-merger deal on Tuesday. AbbVie (ABBV 65.70, -12.75, -16.3%) announced it will acquire Allergan (AGN 162.43, +32.86, +25.4%) for about $63 billion, or $188.24 per share, in cash and stock. With shares of AbbVie losing over 16%, the premium was reduced to 37% over AGN's closing price on Monday.

U.S. Treasuries finished on a mostly higher note. The 2-yr yield was unchanged at 1.74%, and the 10-yr yield declined three basis points to 1.99%. The U.S. Dollar Index increased 0.2% to 96.16. WTI crude was unchanged at $57.81/bbl. 

Reviewing Tuesday's economic data:

  • The Conference Board's Consumer Confidence Index fell to 121.5 in June (Briefing.com consensus 132.0) from a downwardly revised 131.3 (from 134.1) in May. The index is at its lowest level since September 2017.
    • The key takeaway from the report is that it reflects growing concern about trade tensions among consumers that had been previously lacking, but which had been showing up in business confidence surveys. Flagging confidence on the part of businesses and consumers alike, if it is sustained, is an adverse development for the growth outlook.
  • New home sales declined 7.8% m/m in May to a seasonally adjusted annual rate of 626,000 (Briefing.com consensus 683,000) from an upwardly revised 679,000 (from 673,000) in April.
    • The key takeaway from the report is that demand was relatively soft despite a drop in mortgage rates and a 2.8% yr/yr decline in the median sales price of $308,000.
  • The FHFA Housing Price Index for April increased 0.4% (Briefing.com consensus 0.2%) following an unrevised 0.1% increase in March.
  • The S&P Case-Shiller Home Price Index for April increased 2.5% as expected after increasing a revised 2.6% in March (from 2.7%).

Looking ahead, investors will receive the following reports on Wednesday: Durable Goods Orders for May, the weekly MBA Mortgage Applications Index, and the Advance reports for International Trade in Goods, Retail Inventories, and Wholesales Inventories for May.

  • Nasdaq Composite +18.8% YTD
  • S&P 500 +16.4% YTD
  • Russell 2000 +12.8% YTD
  • Dow Jones Industrial Average +13.8% YTD
16:19  FDX FedEx beats by $0.18, reports revs in-line, guides FY20 EPS below consensus (156.01 -4.90)

  • Reports Q4 (May) earnings of $5.01 per share, excluding non-recurring items, $0.18 better than the S&P Capital IQ Consensus of $4.83; revenues rose 2.8% year/year to $17.81 bln vs the $17.85 bln S&P Capital IQ Consensus.
    • Q4 was hurt by lower FedEx International Priority package and freight revenues at FedEx Express, higher costs at FedEx Ground and business realignment costs primarily associated with the U.S.-based voluntary employee buyout program. Partially offsetting these factors were the benefits from US volume growth, increased revenue per shipment at FedEx Freight and FedEx Ground, lower variable incentive compensation expenses and a favorable net impact of fuel at all transportation segments.
  • Outlook: Co guides to FY20 non-GAAP EPS being a mid-single-digit percentage point decline (prior to the year-end MTM retirement plan accounting adjustment and excluding estimated TNT Express integration expenses). Current consensus is at $16.16, and FY19 actual was $15.52. So consensus is estimating 4% EPS growth, so the guidance of a mid-single-digit decline is a good bit below consensus estimates.
16:19  JAZZ Jazz Pharma will host webcast on July 2 at 4:30 p.m. EDT to provide investors with an update on Sunosi (136.50 +5.19)

Sunosi (solriamfetol) was approved by the U.S. Food and Drug Administration on March 20, 2019 to improve wakefulness in adult patients with excessive daytime sleepiness associated with narcolepsy or obstructive sleep apnea (OSA). Sunosi is the first dual-acting dopamine and norepinephrine reuptake inhibitor approved to treat excessive daytime sleepiness in adults living with narcolepsy or OSA. Beginning early July, Sunosi will be commercially available in the U.S. following the recent scheduling decision by the U.S. Drug Enforcement Agency.
16:19  GBT Global Blood Therapeutics announces public offering of approx. $200.0 mln of shares of its common stock (62.43 -0.86)

GBT intends to use proceeds to fund its clinical development of voxelotor for the treatment of sickle cell disease. GBT may also use a portion of the net proceeds to in-license, acquire or invest in new business, technology or assets, although it has no material agreements, commitments, or understandings in place.
16:18  PGRE Paramount Group enters into agreement to acquire 55 Second Street ni San Francisco for $408 mln (14.23 -0.15)

Co announces that it has entered into an agreement to acquire 55 Second Street, a 387,000 square foot office building located in San Francisco's South Financial District, for approximately $408 mln or $1,054 per square foot.

The transaction, which is subject to customary closing conditions, is expected to close in 3Q19. In connection with the transaction, the company expects to bring in a joint venture partner prior to closing.

The property is currently 87.4% leased primarily to accounting, legal and technology tenants.
16:17  CFMS ConforMIS has secured up to $30 mln in debt financing from Innovatus Capital Partners and East West Bank and $3 mln in equity financing from Innovatus (3.84 -0.03)

In addition, Innovatus purchased $3 million of the Company's common stock from the Company at the previous day's closing price.
16:16  APLE Apple Hospitality REIT appoints Rachael Rothman to position of Executive Vice President and CFO, effective July 1, 2019 (15.70 -0.02)

Ms. Rothman will succeed Bryan Peery as Executive Vice President and Chief Financial Officer. As previously announced, Mr. Peery plans to retire from the company in 1Q20. Mr. Peery will continue as Executive Vice President and, effective July 1, 2019, will become Chief Accounting Officer for the company.
16:16  COWN Cowen Group names CEO Jeffrey Solomon as Chairman (16.63 +0.35)

Outgoing Chairman Jerome S. Markowitz is now serving as Lead Independent Director.
16:14  MU Micron --CORRECTION-- MU beat by 26 cents; we previously reported the GAAP number which was a 5 cent miss; guidance will be released shortly with a conference call starting at 4:30pm ET; we have corrected the original comment

 
16:14  INXN InterXion files for ordinary share shelf offering (75.10 -0.44)

 
16:13  AVAV AeroVironment beats by $0.02, beats on revs; guides FY20 EPS in-line, revs in-line (61.31 -0.61)

  • Reports Q4 (Apr) earnings of $0.26 per share, $0.02 better than the S&P Capital IQ Consensus of $0.24; revenues fell 25.1% year/year to $87.9 mln vs the $82.57 mln S&P Capital IQ Consensus.
  • Gross margin decreased to 42% from 45%. The decrease in gross margin percentage was primarily due to the decrease in sales volume and an increase in the proportion of service revenue to total revenue.
  • As of April 30, 2019, funded backlog was $164.3 mln compared to $164.4 mln as of April 30, 2018.
  • Co issues in-line guidance for FY20, sees EPS of $1.47-$1.67 vs. $1.64 S&P Capital IQ Consensus; sees FY20 revs of $350-$370 mln vs. $360.50 mln S&P Capital IQ Consensus.
16:06  PDLI PDL BioPharma announces resignation of CFO, effective August 15, 2019 (3.08 +0.09)

Co announces the resignation of Chief Financial Officer, Peter Garcia, who will be leaving the company effective August 15, 2019. He will continue in his role through the filing of the company's second quarter 10-Q in August and is committed to ensure a smooth transition of duties.
16:06  PRTK Paratek Pharma promotes Evan Loh, M.D. to CEO, effective June 25 (3.76 -0.02)

  • Dr. Loh has nearly 20 years of experience as a senior executive in the pharmaceutical industry, most recently serving as Paratek's Chief Operating Officer since January 2017 and as President and Chief Medical Officer and member of the Board of Directors since June 2014.
  • Michael Bigham, who has served as Paratek's Chairman and CEO since 2014, will remain active with the company in the newly created role of Executive Chairman.
16:05  MU Micron beats by $0.26, beats on revs; Seeing early signs of demand improvement but will reduce 2020 CapEx spend (32.68 -0.51)

  • Reports Q3 (May) earnings of $1.05 per share, excluding non-recurring items, $0.26 better than the S&P Capital IQ Consensus of $0.79; revenues fell 38.6% year/year to $4.79 bln vs the $4.7 bln S&P Capital IQ Consensus.
  • "Micron's improved competitive position and strong execution helped us deliver solid results despite a challenging environment," said Micron Technology President and CEO Sanjay Mehrotra. "While we are seeing early signs of demand improvement, we plan to reduce our capital expenditures in fiscal 2020 to help improve industry supply-demand balance."
16:03  SSTK Shutterstock announces that Co-Chief Operating Officer and CFO will depart; co's Chief Accounting Officer appointed to fill role of Interim CFO (39.62 -0.89)

  • Co-Chief Operating Officer and Chief Financial Officer Steven Berns will depart from his roles at SSTK to pursue other opportunities, effective immediately. Mr. Berns' departure is not due to a dispute or any matter relating to the company's accounting and financial policies and operations.
  • The company's Chief Accounting Officer, Steve Ciardiello has been appointed to the role of interim Chief Financial Officer until a successor has been named. Mr. Ciardiello will also continue in his existing role as Chief Accounting Officer.
  • SSTK also announces that Stan Pavlovsky, who had been serving as Co-Chief Operating Officer and Head of Strategic Operations, has been named President and Chief Operating Officer.
16:01  ODT Odonate Therapeutics commences underwritten public offering of $100 mln common stock (28.12 +0.04)

 
15:49  SCS Steelcase discloses entry into stock repurchase agreement with an independent third party broker under which the broker is authorized to repurchase up to 1.5 mln shares of common stock on behalf of the Company between June 26-December 26 (16.03 +0.46)

The shares will be purchased pursuant to the Company's previously announced share repurchase program.
15:44  SUMRX Closing Commodities: Oil and gold settle the day flat: API oil data out after the close

  • Metals Settlement Prices:
    • Aug gold settled today's session $0.30 higher at $1418.45/oz
    • July silver settled today's session $0.08 lower (-0.5%) at $15.29/oz
    • Sept copper settled $0.02 higher (+0.7%) at $2.73/lb
  • Agriculture Settlement Prices:
    • July corn settled unch at $4.52/bushel
    • July wheat settled $0.03 lower (-0.6%) at $5.40/bushel
    • July soybeans settled $0.06 lower (-0.7%) at $9.08/bushel
  • Energy Settlement Prices:
    • July Crude Oil futures fell $0.01 to $57.81/barrel
    • July Natural Gas settles unch at $2.28/MMBtu
    • July RBOB Gasoline settled $0.02 higher (+1.1%) at $1.83/gallon
    • July Heating oil futures settled $0.01 higher (+0.5%) at $1.93/gallon
15:37  SAFM Sanderson Farms issues statement, says has not been subpoenaed in connection with Department of Justice investigation (131.62 -2.38)

"The United States Department of Justice filed a motion on Friday, June 21, 2019, in In re Broiler Chicken Antitrust Litigation stating that it is conducting a criminal investigation regarding the broiler industry. The Company has not been subpoenaed in connection with the Department of Justice investigation. The Company continues to believe the civil plaintiffs' claims as to Sanderson Farms are wholly without merit, and we are committed to defending the case vigorously."
15:27  SUMRX Earnings Confirmed for this afternoon and tomorrow morning

Earnings out this afternoon: AVAV FDX MU SNX

Earnings out tomorrow morning: ATU BB GIS INFO PAYX SCHN UNF

15:12  BONDX Treasury Market Summary

Treasuries Climb Again

  • U.S. Treasuries ended Tuesday on a mostly higher note, but not before seeing some intraday volatility. Treasuries started the cash session just above yesterday's closing levels, spending the first hour of the action in a narrow range. The opening gains were extended amid early weakness on the equity side, with Treasuries rising to highs after the release of weaker than expected New Home Sales for May (actual 626,000; Briefing.com consensus 683,000) and weaker than expected Consumer Confidence for June (actual 121.5; Briefing.com consensus 132.0). Midday action saw a pullback from highs, as the market responded to speeches from St. Louis Fed President James Bullard and Fed Chairman Jay Powell. The St. Louis Fed President was up first, and while he said that this is a good time for an "insurance cut", he ruled out the need for a 50-basis point cut. Fed Chairman Powell struck a similar tone, noting that the outlook has changed since early May, but monetary policy should not overreact to short-term swings in sentiment. The midday pullback was most visible in shorter tenors while the long bond remained near its high until the close. Today's $40 bln 2-yr Treasury note auction was met with strong demand. The U.S. Dollar Index rose 0.2% to 96.13, recording its first gain in five days.
  • Yield Check:
    • 2-yr: UNCH at 1.74%
    • 3-yr: -1 bp to 1.68%
    • 5-yr: -2 bps to 1.73%
    • 10-yr: -3 bps to 1.99%
    • 30-yr: -2 bps to 2.53%
  • News:
    • The implied probability of a 50-bps rate cut at the July meeting decreased to 36.4% from 42.6% after today's speeches from FOMC voters Bullard and Powell.
    • Reuters reported that President Trump will meet with China's President Xi Jinping in Japan on Saturday.
    • U.S. envoy to NATO, Kay Bailey Hutchinson, reiterated that Turkey will be excluded from the F-35 program if the country takes delivery of a Russian-made anti-aircraft weapon system.
    • Chinese press reported that local government bond issuance could hit a record high in June due to continued stimulus.
    • South Korea's Consumer Confidence decreased to 97.5 in June from 97.9, hitting a five-month low.
    • The new British Prime Minister will be named on July 23.
    • European Central Bank Vice President Luis de Guindos said that the effects of negative rates must be watched closely, and that falling growth expectations could weaken the banking sector.
    • $40 bln 2-year Treasury note auction results (prior 12-auction average):
      • High yield: 1.695% (2.572%)
      • Bid-to-cover: 2.58 (2.63)
      • Indirect bid: 48.5% (46.3%)
      • Direct bid: 24.2% (15.6%)
  • Today's Data:
    • New home sales declined 7.8% m/m in May to a seasonally adjusted annual rate of 626,000 (Briefing.com consensus 683,000) from an upwardly revised 679,000 (from 673,000) in April.
      • The key takeaway from the report is that demand was relatively soft despite a drop in mortgage rates and a 2.8% yr/yr decline in the median sales price of $308,000.
    • The Conference Board's Consumer Confidence Index fell to 121.5 in June (Briefing.com consensus 132.0) from a downwardly revised 131.3 (from 134.1) in May. The index is at its lowest level since September 2017.
      • The key takeaway from the report is that it reflects growing concern about trade tensions among consumers that had been previously lacking, but which had been showing up in business confidence surveys. Flagging confidence on the part of businesses and consumers alike, if it is sustained, is an adverse development for the growth outlook.
    • The FHFA Housing Price Index increased 0.4% in April (Briefing.com consensus 0.2%) after increasing 0.1% in March.
    • The S&P Case-Shiller Home Price Index increased 2.5% in April (Briefing.com consensus 2.5%) after increasing a revised 2.6% (from 2.7%) in March.
  • Commodities:
    • WTI crude: UNCH at $57.81/bbl
    • Gold: UNCH at $1418.45/ozt
    • Copper: +0.7% to $2.73/lb
  • Currencies:
    • EUR/USD: -0.2% to 1.1373
    • GBP/USD: -0.3% to 1.2696
    • USD/CNH: +0.1% to 6.8842
    • USD/JPY: -0.2% to 107.11
  • The Day Ahead:
    • 7:00 ET: Weekly MBA Mortgage Index (prior -3.4%)
    • 8:30 ET: May Durable Orders (Briefing.com consensus -0.3%; prior -2.1%) and Durable Orders ex-transportation (Briefing.com consensus 0.1%; prior 0.0%), May Advance International Trade in Goods (prior -$72.10 bln), May Advance Retail Inventories (prior 0.5%), and May Advance Wholesale Inventories (prior 0.7%)
    • 10:30 ET: Weekly crude oil inventories (prior -3.1 mln)
  • Treasury Auctions:
    • 13:00 ET: $41 bln 5-yr Treasury note auction results
  • Fed Speakers:
    • 11:30 ET: San Francisco Fed President (non-voter) Mary Daly
15:09  SCANX Large cap notable movers of interest -- Allergan (AGN) rises on premium acquisition by AbbVie (ABBV) in the latest major combination for the pharmaceutical sector -Technical-

The following are some of today's most notable large cap movers of interest ($10 bln - $200 bln market cap), ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

  • AGN (163.57 +26.24%): To be acquired by AbbVie (ABBV) in a cash-and-stock deal with a transaction equity value of approx. $63 bln, based on ABBV's closing price of $78.45 yesterday; co's shareholders will receive 0.8660 ABBV shares and $120.30/share in cash for each AGN share held. The transaction represents a premium of +45% relative to co's closing price yesterday. Co's shareholders will own approx. 17% of AbbVie on a fully diluted basis following the closing of the acquisition. Shares reach their highest levels since November.
  • ELAN (34.67 +3.4%): Various pharmaceutical companies and other healthcare names see strength in the wake of the AbbVie/Allergan deal.
  • CAG (29.02 +3.27%): Posts moderate gains a few days in advance of its next quarterly results, which will be reported before the open on Thursday; in recent press, co today announced several product expansions for its Healthy Choice and Birds Eye brands. Consumer staples sector sees modest relative strength.

Large Cap Losers

  • ABBV (66.04 -15.83%): Acquiring Allergan (AGN), as detailed above. Co sees the deal as providing immediate scale and profitability to its growth platform and significantly expanding and diversifying its global commercial scale and revenue base with new therapeutic areas, including medical aesthetics. Co expects the acquisition to provide annual pre-tax synergies and other cost reductions of at least $2 bln in year three as a result of optimizing the research and early stage portfolio, reducing overlapping R&D resources, and driving SG&A efficiencies, among other factors. It is expected to be 10% accretive to adj. EPS over the first full year, with peak accretion of greater than 20%. Annual combined revenue for 2019 is estimated at approx. $48 bln. Sinks to two-year lows.
  • SHOP (284.44 -8.78%): Downgraded to Neutral from Outperform at Wedbush, citing valuation; the firm also increased co's price target to $305. The stock, which reached new all-time highs last week a bit shy of $340 and which continues to hold gains of circa +105% year-to-date, was also downgraded yesterday at ROTH Capital and last week at CIBC.
  • ATHM (82.13 -7.73%): Chinese stocks generally underperform, with the Shanghai Composite Index having today ended a streak of gaining action, as the crucial G-20 meeting looms. (Related: TME, CTRP...)
14:57  TALKX Market Briefing: Re-thinking some bullish-minded matters

The major indices have extended today's losses, pressured by a reality check that its most hopeful outlook isn't going to be satisfied in the near term.

To that end, St. Louis Fed President Bullard -- the lone dissenter at the recent FOMC meeting and most ardent dove on the FOMC -- said today that he thinks a rate cut is coming in July, but that he doesn't think a 50 basis points rate cut is necessary at the July 30-31 meeting. Fed Chair Powell didn't say anything either in a speech today to stoke expectations that the Fed is leaning at this juncture toward a 50 basis points cut at the July meeting.

The other selling catalyst has been acknowledgment from White House officials that the goal for the G-20 meeting is to reopen trade talks, but that the U.S. will not accept any tariff conditions. That could be a stumbling block right out of the gate for China, which wants the U.S. to roll back existing tariffs. Separately, there was also an acknowledgment from White House officials that the trade talks could go on for months or years, which left an impression that the trade spat could be a prolonged one.

Up to this point, there was some budding hope that the U.S. and China wil at least agree to forestall new tariff actions at this weekend's meeting. That's possible, but clearly, no guarantee has been given.

Effectively, then, a short-term overbought market is finding reason to consolidate some strong June gains that were helped along in part by a hope the G-20 Summit would strike a constructive tone and that the Fed would cut rates by 50 basis pints in July. Those views are being called into question today, however, which is leading to the broad-based selling interest.

The Russell 2000 is down 0.5%; the Dow Jones Industrial Average is down 0.6%; the S&P 500 is down 0.8%; and the Nasdaq Composite is down 1.5%.

13:51  FDX FedEx to report this evening (157.17 -3.73)

FedEx (FDX 157.17, -3.73, -2.3%) will report its Q4 results after today's closing bell, followed by the management's conference call at 17:30 ET.

  • The Capital IQ consensus expects the company to report an 18.3% yr/yr decrease in EPS to $4.83 on a 3.1% yr/yr increase in revenue to $17.85 bln.
  • Last quarter, FedEx reported weaker than expected results and lowered its guidance to account for a slowing global economy. The weak outlook briefly pressured the stock, but FedEx was able to climb to a fresh 2019 high in mid-April. However, that push was followed by a return to the December low earlier this month.
  • Continued relative strength in the U.S. economy should support FedEx's domestic business, but the international segment could see softness associated with slowing growth in Asia and Europe.
    • FedEx's international segment accounts for roughly 30% of revenue.
  • The company has had a difficult time integrating TNT Express into its business. Investors have known about this issue for a while, so any improvement on this front would be a positive.
  • South China Morning Post reported today that the Chinese government may put FedEx on its list of unreliable foreign entities. Global Times speculated about this possibility on Sunday.

FedEx trades at 9.9x forward earnings expectations, which represents a discount to UPS's (UPS 97.47, -2.25, -2.3%) 12.9x forward multiple.


Editor's note: A previous version of this comment included the GAAP EPS estimate instead of the non-GAAP estimate. The comment has been corrected.

13:50  SCANX Mid cap notable movers of interest -- Brighthouse Financial (BHF) sinks on analyst downgrades -Technical-

The following are some of today's most notable mid cap movers of interest ($2 bln - $10 bln market cap), ranked by % change (all stocks over 100K average daily volume).

Mid Cap Gainers

  • TEVA (8.8 +6.67%): Various biotech/pharma names move higher following AbbVie's (ABBV) premium acquisition of pharmaceutical peer Allergan (AGN). (Related: JAZZ, MYL...)
  • GRUB (76.18 +5.52%): Upgraded to Buy from Neutral and price target raised to $91 at Citigroup, citing factors including co's continued gains in gross food sales and reports that co is in early tests with certain large chains. Posts three-month highs.
  • SAM (361.78 +3.59%): Now up by circa +7% over the past week, the stock today achieves a new all-time high on slightly above average volume.

Mid Cap Losers

  • BHF (33.63 -11.78%): Downgraded to Sell from Neutral at Goldman, which lowers co's target to $32 from $39, and to Underperform from Neutral at Credit Suisse, which cuts co's price target to $22 from $35, with both firms calling attention to sources of pressure to co's capital plans. Drops to five-month lows.
  • UNIT (9.88 -7.58%): In recent items, co announced the planned offering by its subsidiary Uniti Fiber Holdings, Inc. of $300 mln aggregate principal amount of exchangeable senior notes due 2024, and it signaled that it has entered into an amendment to its credit agreement to extend the maturity date of its revolving credit facility. Co also yesterday announced that PEG Bandwidth Holdings, the holder of co's 3.00% Series A Convertible Preferred Stock, has elected to convert all of its shares.
  • JOBS (69.88 -6.18%): Dropped to its lowest levels since December in early trade; though now well off those morning lows, the stock continues to underperform on more than 3x average volume, lagging alongside Chinese peers generally ahead of the weekend's G-20 meeting. (Related: HUYA, LX, BZUN...)
13:32  OPTNX Unusual Options Activity

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

  • BHC Jul 24 calls (volume: 7970, open int: 100, implied vol: ~47%, prev day implied vol: 36%). Co is currently presenting at a BMO conference. Co is expected to report earnings early August.
  • ATVI Jun 46.5 calls (volume: 6230, open int: 990, implied vol: ~41%, prev day implied vol: 38%). Co is expected to report earnings early August.
  • MCD Jun 207.5 calls (volume: 5030, open int: 1490, implied vol: ~16%, prev day implied vol: 2%). Co is confirmed to report earnings July 26 before the open.

Bearish Put Activity:

  • HRL Sep 42.5 puts (volume: 4060, open int: 10, implied vol: ~24%, prev day implied vol: 22%).  2K traded in a single transaction. Co is expected to report earnings mid-to-late August.

Sentiment: The CBOE Put/Call ratio is currently: 0.92, VIX: (16.12, +0.86, +5.6%).
July 19 is options expiration -- the last day to trade July equity options.
*Please use the Talk to Us link at the top of the page to provide feedback on this comment as well as the OPTNX comments.

13:16  SCANX Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (68) outpacing new lows (59) -Technical-

Stocks that traded to 52 week highs: ABT, AEM, AGCO, AGI, AJRD, ANIP, AON, ARQL, ATO, AU, BFAM, BHP, BKH, BLL, CL, CMS, CNMD, DTE, EL, FCFS, GFI, GNRC, HIG, HMY, IT, JCI, KGC, KL, MAA, NEE, NVS, PG, PNM, RARX, RGLD, RSG, SAM, SAND, SBUX, SE, STE, SYK, TMO, TRV, V, WM, WTR, YUM, BEP, EDD, EMD, FNV, GBT, GOLD, MMT, NAD, NEA, NG, NZF, PVG, QSR, SHV, SHY, SLQD, UTF, VCSH, VGIT, VGM

Stocks that traded to 52 week lows: ABEO, ACLS, ADS, AERI, AFI, AHT, AMAG, AMC, ANAB, ANGI, AR, ASNA, ATRA, BNFT, CNX, CUK, DF, ECOM, MR, ENDP, EPC, EQT, EROS, GHL, GPRE, GTE, AMRX, KR, KSS, MATW, MYGN, OMN, QUAD, RAD, RYAM, RYTM, SBH, SCOR, SEMG, SFM, SFNC, SFUN, SIG, SKT, SPN, TV, TX, UNFI, URGN, VICR, WDR, WWW, ABBV, AVYA, CCL, ENR, GTT, IGT, WPG

Thinly-Traded Stocks (ADV below 100k) that traded to 52 week highs on High Volume: BFZ, EHI, GHY, MOSC, MUA, WIW

Thinly-Traded Stocks (ADV below 100k) that traded to 52 week lows on High Volume: CEL, SHI

ETFs that traded to 52 week highs: BWX, ENZL, FXY, GDX, GDXJ, GLD, HYD, IAU, MUB, SHY
13:15  TALKX Market Briefing: Fed Chair Powell also tempering market's scope of rate-cut hopes?

In a speech on the Economic Outlook and Monetary Policy Review given at the Council of Foreign Relations today, Fed Chair Powell said much of what he said last week following the FOMC meeting.

In that sense, one could see it as a dovish speech. The problem today perhaps is that Fed Chair Powell's remarks didn't necessarily make it clear that the Fed is inclined to cut the target range for the fed funds rate by 50 basis points at the July meeting.

That sense of matters is wrapped up in the following two observations made in the speech:

  1. "Against the backdrop of heightened uncertainties, the baseline outlook of my FOMC colleagues, like that of many other forecasters, remains favorable, with unemployment remaining near historic lows."
  2. "But we are also mindful that monetary policy should not overreact to any individual data point or short-term swing in sentiment."

This speech followed on the heels of St. Lois Fed President Bullard saying that he thought a rate cut would be coming in July, but that he doesn't think a 50-basis points rate cut is necessary.

Accordingly, the Powell speech served as another focal point that tempered the market's growing, and pent-up, hope that the Fed would cut by 50 basis points at the July 30-31 meeting. It could still if events, and data, unfold in the interim that suggest such a cut is necessary, but for now, there appear to be some emerging hints in the Fed commentary that suggest the market is probably getting greedy with the expectation that a 50 basis points cut is on the way.

13:09  SCANX Today's most active stocks -Technical-

The following are today's most active stocks ranked by volume and relative volume, categorized by sectors (over $300 mln market cap and 100K average daily volume).

Today's top 20 volume
  • Healthcare: ABBV (57.23 mln -15.46%), AGN (23.25 mln +26.5%), TEVA (21.69 mln +7.27%), BMY (14.02 mln +0.45%)
  • Materials: GOLD (17.35 mln -2.4%), GOLD (17.35 mln -2.4%), KGC (14.76 mln -2.78%), HMY (12.99 mln -5.16%)
  • Industrials: GE (20.66 mln -0.68%)
  • Consumer Discretionary: CZR (57.76 mln +2.27%)
  • Information Technology: AMD (29.78 mln -0.38%), NOK (17.49 mln -0.79%), MSFT (15.84 mln -2.75%), MU (14.28 mln +1.27%)
  • Financials: BAC (27.1 mln -0.66%), ITUB (15.37 mln -1.11%), BBD (13.41 mln -1.52%)
  • Energy: CHK (31 mln -4.97%), SWN (13.3 mln -5.57%)
Today's top relative volume (current volume to 1-month average daily volume)
  • Healthcare: ABBV (11.7x -15.46%), AGN (7.08x +26.5%), XNCR (4.81x +13.29%), ATRS (4.04x +4.97%), ARQL (2.12x +9.89%)
  • Materials: HMY (2.69x -5.16%), NG (2.25x -0.72%)
  • Industrials: JOBS (3.46x -6.48%), DOOR (3.21x +2.21%)
  • Consumer Discretionary: LEN (3.7x -5.74%), ERI (3.7x -3.87%), CZR (2.79x +2.27%), GRUB (2.19x +5.07%)
  • Information Technology: SCSC (2.96x +2.61%)
  • Financials: VMBS (6.89x +0.03%), VCIT (4.42x -0.01%), BHF (4.18x -13.12%), AEF (2.54x -0.27%)
  • Energy: TOO (3.59x -1.72%)
  • Utilities: ENIC (3x +0.84%)
13:08  SCANX Today's biggest % gainers/losers -Technical-

The following are today's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

Today's top 20 % gainers
  • Healthcare: AGN (163.9 +26.5%), XNCR (38.37 +13.29%), RUBY (15.11 +10.21%), ARQL (11 +9.89%), TEVA (8.85 +7.27%), ENDP (3.84 +6.96%), DNLI (20.95 +6.72%), RARX (27.94 +6.56%), INO (2.57 +5.99%), PGNX (5.5 +5.36%)
  • Industrials: GBX (28.96 +7.06%), TGI (19.74 +5.9%)
  • Energy: MDR (8.79 +6.93%), LPI (2.9 +5.84%), OIS (17.94 +5.65%), GLOG (13.89 +5.63%)
  • Consumer Staples: USNA (79.15 +9.41%), RAD (6.78 +7.62%), SPTN (11.53 +5.83%), ELF (13.87 +5.8%)
Today's top 20 % losers
  • Healthcare: ABBV (66.33 -15.46%), EPZM (13.54 -10.48%)
  • Industrials: JOBS (69.66 -6.48%)
  • Consumer Discretionary: RGS (16.56 -6.76%), SCVL (26.5 -5.96%)
  • Information Technology: GTT (18.52 -7.26%), GSKY (12.15 -6.22%), UPLD (44 -6.13%), SHOP (292.83 -6.09%)
  • Financials: BHF (33.12 -13.12%), HIIQ (24.05 -7.96%), JT (4.08 -6.63%)
  • Consumer Staples: DF (0.97 -6.21%)
13:05  BONDX Auction Out

Treasury Auction Results

  • $40 bln 2-year Treasury note auction:
    • Auction results:
      • High yield: 1.695% (When-Issued: 1.705%)
      • Bid-to-cover: 2.58
      • Indirect bid: 48.5%
      • Direct bid: 24.2%
    • Average results of previous 12 auctions:
      • High yield: 2.572%
      • Bid-to-cover: 2.63
      • Indirect bid: 46.3%
      • Direct bid: 15.6%
12:58  WRAPX Midday Market Summary: Stock market trades lower in front of Powell comments

The S&P 500 is down 0.5%, as shares of technology companies weigh on the broader market. Investors have shown some caution, buying into U.S. Treasuries, in front of an appearance from Fed Chair Powell at the top of the hour. 

The Dow Jones Industrial Average is down 0.4%, and the Nasdaq Composite is down 0.9%. The Russell 2000 is up 0.1% after underperforming yesterday.

Mr. Powell's position as Fed Chair usually commands the most attention, but the market has taken a leg lower in recent action after St. Louis Fed President James Bullard (FOMC voter) said a half-point cut in the fed funds rate would be too much. Instead, Mr. Bullard prefers a quarter-point cut. 

Economic data released today has provided some insight into the housing sector and consumer sentiment that has also disappointed investors. New homes sales declined 7.8% m/m in May to a seasonally adjusted annual rate of 626,000 (Briefing.com consensus 683,000), and the Conference Board's Consumer Confidence Index fell to 121.5 in June (Briefing.com consensus 132.0). 

Today's action has been largely risk-off, which is being reflected across losses in nine of the 11 S&P 500 sectors. Leading today's retreat are the S&P 500 communication services (-1.4%), information technology (-1.2%), and consumer discretionary (-0.7%) sectors. The materials (+0.1%) and real estate (+0.02%) sectors cling onto slim gains. 

Home construction company Lennar (LEN 48.33, -3.13, -6.1%) has also contributed to the cautious sentiment after it issued downside Q3 guidance, discouraging investors after it provided positive quarterly results earlier in the day.

Separately, there has been a mega-merger deal in the health care space. Allergan (AGN 164.00, +34.41, +26.6%) confirmed it will be acquired by pharmaceutical company AbbVie (ABBV 66.33, -12.12, -15.5%) for about $63 billion, or $188.24 per share, in cash and stock. With shares of AbbVie currently down over 15%, the deal represents a 37% premium to AGN's closing price on Monday.

U.S. Treasuries have advanced, pushing the benchmark 10-yr yield down three basis points to 1.99%, as investors remain cautious about the economic outlook. The U.S. Dollar Index is up 0.2% to 96.21. 

Reviewing today's batch of economic data:

  • The Conference Board's Consumer Confidence Index fell to 121.5 in June (Briefing.com consensus 132.0) from a downwardly revised 131.3 (from 134.1) in May. The index is at its lowest level since September 2017.
    • The key takeaway from the report is that it reflects growing concern about trade tensions among consumers that had been previously lacking, but which had been showing up in business confidence surveys. Flagging confidence on the part of businesses and consumers alike, if it is sustained, is an adverse development for the growth outlook.
  • New home sales declined 7.8% m/m in May to a seasonally adjusted annual rate of 626,000 (Briefing.com consensus 683,000) from an upwardly revised 679,000 (from 673,000) in April.
    • The key takeaway from the report is that demand was relatively soft despite a drop in mortgage rates and a 2.8% yr/yr decline in the median sales price of $308,000.
  • The FHFA Housing Price Index for April increased 0.4% (Briefing.com consensus 0.2%) following an unrevised 0.1% increase in March.
  • The S&P Case-Shiller Home Price Index for April increased 2.5% as expected after increasing a revised 2.6% in March (from 2.7%).
12:48  TALKX Market Briefing: Bullard reins in scope of rate-cut expectations

The stock market has hit an air pocket, moving to its lows for the session, following comments from St. Louis Fed President Bullard (FOMC voter) who said he sees a rate cut coming in July, but that he doesn't think a 50-basis points rate cut is necessary.

This remark caused some knee-jerk selling interest, as there has been a growing belief that the Fed will be inclined to cut the target range for the fed funds rate by 50 basis points at its July 30-31 FOMC meeting. The fact that one of the Fed's biggest doves -- if not the biggest -- is seemingly trying to rein in the market's rate-cut hopes has taken some of that rate-cut premium out of stock prices. 

As a reminder, Fed Chair Powell has a speaking engagement at 1:00 p.m. ET.

The Russell 2000 is down 0.2%; the Dow Jones Industrial Average is down 0.5%; the S&P 500 is down 0.6%; and the Nasdaq Composite is down 1.0%.

12:00  MSFT Microsoft hit by profit-taking interest (134.79 -2.99)

Shares of Dow component Microsoft (MSFT 134.56, -3.22, -2.3%), which is also the largest stock by market capitalization, are underperforming today. That has to do in large part with how the stock has outperformed since June 3.

Entering today, Microsoft was up 15% since June 3 (i.e. the day before Fed Chair Powell said the Fed would act appropriately to sustain the expansion) versus a 7.3% gain for the S&P 500 and a 9.2% gain for the Nasdaq Composite.

A 15% move in a stock the size of Microsoft is a massive move and left shares of MSFT 21% above their 200-day moving average. The basis for today's selling, then, is a pullback from a short-term overbought condition.

That condition was brought to light today by the analyst at Jefferies who raised his price target to $90 from $80, but maintained an Underperform rating and called the stock "materially overvalued."

It won't be lost on investors that MSFT has defied the Jefferies view of the stock's prospects in a big way leading into today; nonetheless, with the broader market in a consolidation mode in front of the G-20 summit, the Jefferies view today looks to have served as another profit-taking catalyst.

11:45  SUMRX European Markets Update: DAX -0.27%, FTSE +0.13%, CAC -0.05%

---Equity Markets---

  • STOXX Europe 600: -0.03%
  • Germany's DAX: -0.27%
  • U.K.'s FTSE 100: +0.13%
  • France's CAC 40: -0.05%
  • Italy's FTSE MIB: -0.73%
  • Spain's IBEX 35: -0.24%
11:41  SCANX Small cap notable movers of interest -- Xencor (XNCR) rises on addition to S&P SmallCap 600 index -Technical-

The following are some of today's most notable small cap movers of interest ($300 mln - $2 bln market cap), ranked by % change (all stocks over 100K average daily volume).

Small Cap Gainers

  • XNCR (38.25 +12.92%): Co will take the place of HFF Inc. (HF) in the S&P SmallCap 600, effective prior to the open on July 2, upon that company's pending acquisition by Jones Lang LaSalle (JLL). At five-month highs.
  • KRYS (45.8 +11.15%): Continued strength following updates from trials of KB103. Co also announced a public offering of 2.5 mln shares of its common stock priced at $40.00/share, for gross proceeds of approx. $100.0 mln. Extends to further all-time highs.
  • USNA (77.05 +6.51%): Designated to join the S&P SmallCap 600, effective prior to the open on July 1, replacing Fidelity Southern (LION) upon its acquisition by by Ameris Bancorp (ABCB).

Small Cap Losers

  • FRTA (4.10 -10.20%): Announced that its CEO, Jeff Bradley, has stepped down as CEO and as one of co's directors in order to pursue other opportunities; co has appointed Karl H. Watson, Jr., most recently COO of Summit Materials (SUM), has been appointed to succeed Mr. Bradley. Co also announced the appointment of John McPherson as Lead Director and non-executive Vice Chairman of the Board, a newly created role, and noted that it "continues to expect full year 2019 financial results to be in line with its prior guidance" and that it "remains focused on executing commercial and operational initiatives geared toward improving operating margins and cash flow." At two-month lows.
  • EPZM (13.8 -8.72%): Tracks lower after spiking to a new 52-week high near yesterday's open and after having netted gains of circa +29% last week, bolstered by interim data for tazemetostat.
  • SCOR (6.87 -7.66%): Sees continued weakness, down by circa 17% in the most recent three sessions. News items for co in recent days include its announcement of an agreement with an institutional investor for a $20 mln private placement of common stocks and warrants with potential to increase to approx. $50 mln and its announcement of a strategic partnership with MediaScience to research cross-platform advertising. Recent sector news included LiveRamp's (RAMP) acquisition, announced yesterday, of media measurement company Data Plus Math for a total consideration of $150 mln. Posts all-time lows.
11:30  BONDX New Supply

Treasury Auction Preview

  • $40 bln 2-year Treasury note auction (results at 13:00 ET)
    • Prior auction results:
      • High yield: 2.125%
      • Bid-to-cover: 2.75
      • Indirect bid: 46.6%
      • Direct bid: 27.2%
    • Average results of previous 12 auctions:
      • High yield: 2.572%
      • Bid-to-cover: 2.63
      • Indirect bid: 46.3%
      • Direct bid: 15.6%
11:20  GIS General Mills Fourth Quarter Earnings Preview (53.87 +0.20)

  • General Mills (GIS) will report fourth quarter earnings tomorrow before the open. There is a conference call scheduled for 8:30 ET.
  • Q4 Capital IQ consensus calls for EPS of $0.76 (-4% yr/yr) on revenue of $4.24 bln (+8.8% yr/yr).
  • The company is expected to guide for FY20 where consensus stands at $3.31 (-4.8% yr/yr) and $17.3 bln for revenues (+1.6% yr/yr).
  • Looking back, the company beat on EPS four times in a row, but missed on revenues four times in a row. GIS shares increased 3% following its Q4 results. For the fourth quarter of fiscal 2019, General Mills expects Blue Buffalo's net sales and segment operating profit growth will accelerate meaningfully, driven by significant distribution expansion in the FDM channel.
  • Based on the GIS weekly Jun28 $54 straddle, the options market is currently pricing in a move of ~6% in either direction by weekly expiration (Friday).
  • On a positive report, look for resistance near the $58.00-58.50 area, while support sits near the $49.00-49.50 vicinity.
  • GIS has a market cap of ~$32 bln and trades at ~16x FY20 earnings, a notable discount to the average consumer packaged goods stock at 22x.
11:13  XPH Pharma is the big winner today after second large M&A deal is announced in as many weeks

Pharma and biotech stocks are the clear winners in trading this morning. With ABBV announcing today it will acquire AGN just a week after PFE said it will acquire ARRY, there is a lot of excitement in the group. What's notable is that both acquiring companies have blockbuster drugs (ABBV with Humira and PFE with Lyrica) that are soon facing patent expirations. It's clear large pharmas want to restock their portfolios. It's leading to speculation as to which companies may be next.

On the other side of the spectrum, China, IT and gold stocks are showing weakness today.

10:35  SUMRX Morning Commodities: Oil sheds gains, now modestly lower, gold over 1% higher

  • Commodities are higher (+0.5% at 79.88 as measured by the Bloomberg Commodity Index)
  • Dollar index is slightly lower (-0.04% at 95.9420)
  • Looking at energy:
    • Jul WTI crude oil futures are now -$0.08 (-0.1%) at $57.82/barrel
    • In other energy, Jul natural gas is -$0.4 (-1.9%) at $2.24/MMBtu
  • Moving on to metals:
    • Aug gold is currently +$18.15 (+1.3%) at $1436.35/oz, while Jul silver is +$0.05 at $15.43/oz
    • Jul copper is now +$0.03 (+1.0%) at 2.73/lb
10:31  SUMRX Economic Summary: Consumer Confidence & New Home Sales miss expectations

Economic Data Summary:

  • April Case Schiller Home Price Index 0.4% vs Briefing.com consensus of 2.5%; March was 2.7%
  • April FHFA Housing Price Index 2.5% vs Briefing.com consensus of 0.2%; March was revised to 2.6% from 0.1%
  • June Consumer Confidence 121.5 vs Briefing.com consensus of 132.0; May was revised to 131.3 from 134.1
    • The key takeaway from the report is that it reflects growing concern about trade tensions among consumers that had been previously lacking, but which had been showing up in business confidence surveys. Flagging confidence on the part of businesses and consumers alike, if it is sustained, is an adverse development for the growth outlook.
  • May New Home Sales 626K vs Briefing.com consensus of 683K; April was revised to 679K from 673
    •   The key takeaway from the report is that demand was relatively soft despite a drop in mortgage rates and a 2.8% yr/yr decline in the median sales price of $308,000.

Upcoming Economic Data:

  • Weekly MBA Mortgage Applications due out Wednesday at 7:00 (Last Week was -3.4%)
  • May Durable Orders due out Wednesday at 8:30 (Briefing.com consensus of -0.3%; April was -2.1%)
  • May Durable Orders -- Ex Transportation due out Wednesday at 8:30 (Briefing.com consensus of 0.1%; April was 0.0%)
  • May Advance International Trade in Goods due out Wednesday at 8:30 (April was -$72.1 bln)
  • May Advance Retail Inventories due out Wednesday at 8:30 (April was 0.5%)
  • May Advance Wholesale Inventories due out Wednesday at 8:30 (April was 0.7%)

Upcoming Fed/Treasury Events:

  • Fed Chair Jerome Powell to speak today at 13:00 ET.
  • Fed's Bostric to speak today at 13:00 ET.
  • Fed's Bullard to speak today at 17:30 ET.
  • The Treasury is scheduled to auction off new debt this week.
    • Tuesday: $40 bln in 2 Year Treasury Notes
    • Wednesday: $41 bln in 5 Year Treasury Notes
    • Thursday: $32 bln in 7 Year Treasury Notes

Other International Events of Interest

  • Chinese press reported that local government bond issuance could hit a record high in June due to continued stimulus.
    10:17  OPTNX Early Options Activity

    Taking an early look at the options market, we found the following names that may be worth watching throughout the day for further indication of investor expectations given their options volume and implied volatility movement.

    Stocks seeing volatility buying (bullish call buying/bearish put buying):

    Calls:

    • BHC Jul 24 calls are seeing interest with 4420 contracts trading vs. open int of 100, pushing implied vol up around 16 points to ~52%. Co is currently presenting at a BMO conference. Co is expected to report earnings early August.

    Puts:

    • HRL Sep 42.5 puts are seeing interest with 4060 contracts trading vs. open int of 10, pushing implied vol up around 2 points to ~24%. 2K traded in a single transaction. Co is expected to report earnings mid-to-late August.

    Stocks seeing volatility selling:

    • FDS, LEN implied vol is lower following earnings/guidance

    Sentiment: The CBOE Put/Call ratio is currently: 0.68, VIX: (15.48, +0.22, +1.4%).
    July 19 is options expiration -- the last day to trade July equity options.
    *Please use the Talk to Us link at the top of the page to provide feedback on this comment as well as the OPTNX comments.

    10:10  TALKX Market Briefing: Soft start followed by some soft economic data

    The stock market has started to day's session on a soft note. This isn't altogether surprising given the lack of conviction seen in the futures market ahead of the open.

    At the same time, it isn't all that surprising given that market participants are spying a 1:00 p.m. ET speaking appearance by Fed Chair Powell as a potential market mover and given that the highly-anticipated G-20 summit is sitting on the weekend horizon.

    Just not much conviction right now on the part of buyers, who have been very active throughout the month of June, which is on track to be the best June for the S&P 500 since 1955!

    The broader market will be excused, then, for taking a little time to consolidate after a big run. Some disappointing consumer confidence data for June (121.5 vs. 132.0 Briefing.com consensus) and weaker-than-expected new home sales data for May (626K vs. 683K Briefing.com consensus) have also cast a pall on buying efforts.

    Treasuries, on the other hand, have benefited from the disappointing data. The 10-yr note yield is down three basis points to 1.99%.

    Separately, the health care space is one of the more actively-traded areas in the stock market today following AbbVie's (ABBV 66.89, -11.56, -14.7%) $63 billion cash-and-stock offer to acquire Allergan (AGN 164.69, +35.12, +27.1%), the maker of Botox.

    The Russell 2000 is up 0.1%; the Dow Jones Industrial Average is down 0.2%; the S&P 500 is down 0.2%; and the Nasdaq Composite is down 0.4%.

    10:04  AJG Arthur J. Gallagher to purchase a minority stake in Prague-based Renomia a.s.; terms not disclosed (86.87 -0.11)

    The deal is subject to regulatory approval and is expected to close in the third quarter of 2019. Renomia is the largest independent broker based in the Central and Eastern European (CEE) region.
    10:01  ECONX June Consumer Confidence 121.5 vs 132.0 Briefing.com consensus

     
    10:01  ECONX May New Home Sales 626K vs 683K Briefing.com consensus

     
    09:47  NRZ New Residential Investment 'launched an opportunistic underwritten public offering of Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock ' (15.97 )

    The Company intends to use the net proceeds from this offering for investments and general corporate purposes.
    09:43  OR Osisko Gold Royalties increases previously announced bought-deal offering to 7,850,000 common shares (10.96 -0.49)

    Osisko Gold Royalties announces that, due to strong demand, Betelgeuse LLC has entered into a revised agreement with a syndicate of underwriters led by CIBC Capital Markets and BMO Capital Markets to increase the size of its previously announced bought deal offering to 7,850,000 common shares of Osisko held by Orion at an offering price of $14.10 per common share for total gross proceeds to Orion of $110,685,000. Osisko will not be receiving any of the proceeds of the secondary offering. Amounts are in Canadian dollars.
    09:42  WRAPX Opening Market Summary: Wall Street opens slightly lower amid weakness in financials

    The major averages begin the day slightly lower. The S&P 500 is down 0.2%, the Dow Jones Industrial Average is down 0.2%, and the Nasdaq Composite is down 0.3%.

    Looking at the S&P 500 sectors shows most holding modest losses. The communication services (-0.5%) and financials (-0.7%) sectors show relative weakness, while the real estate (+0.3%) and consumer staples (+0.1%) sectors are the lone sectors trading higher. 

    U.S. Treasuries have edged higher, pushing yields lower across the curve. The 2-yr yield is down one basis point to 1.73%, and the 10-yr yield is down two basis points to 2.00%. The U.S. Dollar Index is unchanged at 96.01. WTI crude is up 0.3% to $58.05/bbl.

    09:28  WIRES On The Wires

    • Kandi Technologies (KNDI) announced that its JV with Geely Group, Kandi Electric Vehicles Group, has received a national subsidy payment of RMB 876 mln from the Chinese government for sales of new energy vehicles, consisting of RMB 742.8 mln for pure EV sales during 2015 and 2016 and RMB 133.4 mln for partial EV sales in 2017.
    • Progenics Pharm (PGNX) announced that results from studies highlighting the PSMA-targeted imaging agent, PyL, were presented at the Society of Nuclear Medicine and Molecular Imaging 2019 Annual Meeting. The results included data from the company's Phase 2/3 OSPREY trial in men with high risk and metastatic prostate cancer and three presentations from an investigator-sponsored study conducted under the company's PyL Research Access Program that evaluated PyL in men with biochemically recurrent prostate cancer. Collectively, the data presented highlights the potential of PyL to detect locally advanced prostate cancer, biochemically recurrent prostate cancer, and metastatic disease.
    • ANI Pharma (ANIP) announced the launch of Ranitidine Capsules, 150mg and 300mg. The current annual US market for this product is approx. $40 mln, according to Iqvia/IMS Health.
    • Tricida (TCDA) announced that The Lancet published online detailed results from its long-term, Phase 3, multicenter, placebo-controlled trial, TRCA-301E, in 196 patients with chronic kidney disease and metabolic acidosis.
    • TILT Biotherapeutics, a company working in the area of enabling tumor T-cell therapies and checkpoint inhibiting antibodies with oncolytic viruses, has entered into an agreement with Merck KGaA, Darmstadt (MKKGY) and Pfizer (PFE) to evaluate its armed oncolytic virus, TILT-123, with avelumab in patients with solid tumors refractory to routine modalities.
    • Halozyme Therapeutics (HALO) announced a Cooperative Research and Development Agreement with the National Institute of Allergy and Infectious Diseases' Vaccine Research Center (VRC) enabling the VRC's use of Halozyme's ENHANZE drug delivery technology to develop subcutaneous formulations of broadly neutralizing antibodies (bnAbs) against HIV for HIV treatment. The two bnAbs selected for the CRADA are VRC07-523LS and N6LS.
    • Bausch Health (BHC) put in notice to pay down an additional $100 mln of its senior secured term loans this week, using cash generated from operations. After this payment, the company will have eliminated all mandatory amortization for the first quarter of 2020.
    • Dova Pharmaceuticals (DOVA) today announced that the European Commission has granted marketing authorization for DOPTELET (avatrombopag) for the treatment of severe thrombocytopenia in adult patients with chronic liver disease who are scheduled to undergo an invasive procedure.
    09:10  WRAPX S&P futures vs fair value: +1.90. Nasdaq futures vs fair value: -3.50.

    Much like yesterday, today's opening indication is looking flattish as investors appear content remaining in a wait-and-see mode for G-20. The S&P 500 futures trade two points, or 0.1%, above fair value.

    Allergan (AGN 169.75, +40.18, +31.0%) and AbbVie (ABBV 70.80, -7.65, -9.7%), meanwhile, have made some noise in a mega-merger deal worth about $63 billion. AbbVie will acquire Allergan for $188.24 per share in cash and stock, or a 45% premium to Allergan's closing price on Monday, but that premium is shrinking in pre-market action as shares of AbbVie trade lower by 9.7%. 

    In housing data, the FHFA Housing Price Index for April increased 0.4% (Briefing.com consensus 0.2%) following an unrevised 0.1% increase in March. The S&P Case-Shiller Home Price Index for April increased 2.5% as expected after increasing a revised 2.6% in March (from 2.7%). 

    09:00  ECONX April S&P Case Shiller Home Price Index Yr/Yr +2.5% vs +2.5% Briefing.com consensus

     
    08:50  WRAPX S&P futures vs fair value: -0.60. Nasdaq futures vs fair value: -7.40.

    The S&P 500 futures trade roughly in-line with fair value. 

    Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Chinese press reported that local government bond issuance could hit a record high in June due to continued stimulus. The Bank of Japan released the minutes from its policy meeting in April, but the text of the minutes was similar to previous releases. Yonhap reported that South Korea's Finance Ministry asked major banks to increase lending to small and medium companies. South Korea's Consumer Confidence hit a five-month low in June.

    • In economic data:
      • Japan's May BoJ Core CPI +0.7% yr/yr (expected 0.6%; last 0.7%). Corporate Services Price Index +0.8% yr/yr (expected 1.1%; last 1.0%)
      • South Korea's June Consumer Confidence 97.5 (last 97.9)
      • Hong Kong's May trade deficit HKD34.70 bln (last deficit of HKD35.10 bln). May Imports -4.3% m/m (last -5.5%) and Exports -2.4% m/m (last -2.6%)
      • New Zealand's May trade surplus NZD264 mln (expected surplus of NZD200 mln; last surplus of NZD383 mln)

    ---Equity Markets---

    • Japan's Nikkei: -0.6%
    • Hong Kong's Hang Seng: -1.2%
    • China's Shanghai Composite: -0.9%
    • India's Sensex: +0.8%
    • South Korea's Kospi: -0.2%
    • Australia's ASX All Ordinaries: -0.2%

    Major European indices trade mostly in negative territory. Italy's Deputy Prime Minister Luigi Di Maio said that the current coalition government will serve its full term and continue for four more years. The comments come amid continued speculation that Deputy Prime Minister Matteo Salvini could force a collapse of the current coalition to capitalize on gains that his party made during the recent election to the European Parliament. European Central Bank Vice President Luis de Guindos said that the effects of negative rates must be watched closely, and that falling growth expectations could weaken the banking sector.

    • In economic data:
      • U.K.'s June CBI Distributive Trades Survey -42 (expected -10; last -27)
      • France's June Business Survey 102 (expected 104; last 104)
      • Spain's May PPI +1.1% yr/yr (last 2.4%)

    ---Equity Markets---

    • STOXX Europe 600: -0.1%
    • Germany's DAX: UNCH
    • U.K.'s FTSE 100: +0.1%
    • France's CAC 40: -0.1%
    • Italy's FTSE MIB: -0.5%
    • Spain's IBEX 35: -0.6%
    08:47  TRWH Twin River Worldwide commences a modified Dutch auction to purchase shares of its common stock for cash at a price per share of not less than $29.50 nor greater than $33.00 in increments of $0.25 (29.17 )

     
    08:42  WIRES On The Wires

    • ADTRAN (ADTN) has joined the prpl Foundation-an open-source, community-driven, collaborative non-profit foundation that strives to enable the security and interoperability of embedded devices. ADTRAN Subscriber Solutions & Experience CTO, David La Cagnina, will now serve on the prpl Foundation Board of Directors. La Cagnina has been active in prpl through SmartRG, which ADTRAN acquired late last year. ADTRAN increased support for the foundation to further demonstrate commitment to driving the industry toward open, programmable, software-defined access infrastructures.
    • nLIGHT (LASR) announced the introduction of the Corona CFX-8000, the latest high-power fiber laser in the Corona product family. Corona fiber lasers incorporate programmable beam characteristics to bring together the speed and cost advantages of traditional fiber lasers with the superior thick metal cutting of CO2 lasers.
    • Vonage (VG) expanded the reach of its channel partner program with the addition of P2 Communications Management, LLC, a national IT advisory and management firm. With Vonage's fully integrated communications offering, P2 Communications Management can offer its customers a unique combination of applications and programmable communications via APIs to help enhance both employee and customer experiences.
    • Medidata (MDSO) announced that global pharmaceutical company Orion will consolidate all clinical trials on the Medidata Rave Clinical Cloud and expand its use of trial management solutions to support growth of its R&D pipeline.
    • Iteris (ITI) was awarded a two-year contract by the Wyoming Department of Transportation, continuing its support of the state's 511 service and maintaining its position as a market leader in the nationwide traveler information system market, with a 25% share.
    • Marrone Bio Innovations (MBII) received a notice of allowance from the U.S. Patent and Trademark Office for key claims covering the composition and method of manufacturing for Grandevo WDG, an MBI developed microbial-based bioinsecticide.
    08:37  TDOC Teladoc appoints Mala Murthy as CFO; Most recently, Murthy was CFO of the Global Commercial Services Segment of American Express (62.75 )

     
    08:32  MRTX Mirati Therapeutics prices 2.1 mln common stock offering at $97.00/share (100.75 )

     
    08:32  ACER Acer Therapeutics receives Complete Response Letter from the FDA regarding its New Drug Application for EDSIVO for the treatment of vascular Ehlers-Danlos syndrome (19.28 )

    The CRL states that it will be necessary to conduct an adequate and well-controlled trial to determine whether celiprolol reduces the risk of clinical events in patients with vEDS. Acer plans to request a meeting to discuss the FDA's response.
    08:27  WRAPX S&P futures vs fair value: -1.10. Nasdaq futures vs fair value: -8.50.

    The S&P 500 futures trade roughly in-line with fair value.

    Iran is in the news again after it said a diplomatic solution with the U.S. is now closed after President Trump imposed new sanctions yesterday, according to Bloomberg. Tensions have yet to have a meaningful impact on the stock market, but tensions are having a noticeable effect on gold futures, which are up another 0.9% to $1430.30/oz. 

    The precious metal, which tends to rise amid geopolitical uncertainty, is up 9.5% this month. Lower U.S. Treasury yields have also made gold more appealing to investors. 

    Separately, FedEx (FDX 159.92, -0.98, -0.6%) filed a lawsuit against the Commerce Department to stop the government from requiring it to enforce the Huawei Technologies restrictions, according to The Wall Street Journal. On a related note, the economic bellwether will release its earnings report after today's close. 

    08:12  SUMRX Gapping up/down: LEN +5% and FDS +2% after earnings, AGN +32% and ABBV -8% after M&A news, PYX +15% after Imperial Capital initiates stock with $71 PT; SHOP -1.5% after downgrade

    Gapping up
    In reaction to strong earnings/guidance
    :

    • LEN +4.6%, FDS +1.9%

    M&A news:

    • AGN +31.9% (Allergan confirms deal to be acquired by AbbVie (ABBV) for approximately $63 bln, or ~$188.24 per share in cash & stock)

    Select Biotech/pharma stocks trading higher:

    • EOLS +8%, ENDP +4.7%, TEVA +3%, MYL +3%, MNK +2.7%, PRGO +2.2%, IBB +1.1%

    Other news:

    • NTEC +5.3% (publication of results from an earlier Phase 2 clinical study of the Accordion Pill-Carbidopa/Levodopa in Parkinson's disease patients)
    • XNCR +8% (will replace HF in the S&P SmallCap 600)
    • RMBS +4.7% (sells token services and ticketing businesses to Visa (V))
    • KRYS +4.4% (prices underwritten public offering of 2.5 mln shares of its common stock at a public offering price of $40.00 per share)
    • ARQL +3.4% (prices underwritten public offering of 9.25 mln shares of its common stock at a price to the public of $9.75 per share)
    • GNFT +2.8% (Genfit and Terns Pharmaceuticals announce $228 mln strategic partnership for the development and commercialization of elafibranor in Greater China)
    • NBRV +2.4% (announces European Medicines Agency validation of Marketing Authorization Application for IV and oral formulations of lefamulin)

    Analyst comments:

    • PYX +14.9% (initiated with a Outperform at Imperial Capital; tgt $71)
    • GRUB +4.4% (upgraded to Buy from Neutral at Citigroup)
    • RMTI +3.7% (initiated with Overweight at Cantor Fitzgerald)
    • CBAY +2.5% (initiated with Buy at Stifel)
    • CMG +1.2% (initiated with an Outperform at Credit Suisse)

    Gapping down
    In reaction to disappointing earnings/guidance
    :

    • N/A.

    M&A news:

    • ABBV -7.7% (Allergan confirms deal to be acquired by AbbVie (ABBV) for approximately $63 bln, or ~$188.24 per share in cash & stock)

    Other news:

    • ALDX -22.4% (announces results from noninfectious anterior uveitis SOLACE Trial -- statistical significance was not achieved for the primary or secondary endpoints)
    • AKRX -11.2% (received a warning letter from the FDA related to the inspection of its Somerset, New Jersey manufacturing facility in July and August of 2018)
    • AAXN -2.1% (will replace MarketAxess Holdings in the S&P MidCap 400)
    • MKTX -1.6% (will replace L3 Technologies in the S&P 500)
    • BYND -1.4% (continued weakness)
    • EQT -1.1% (Rice Team nominee John McCartney sends letter to EQT shareholders; Urges shareholders to vote for the Rice Team nominees to deliver on the significant value that still exists at EQT)

    Analyst comments:

    • BHF -6.9% (downgraded to Underperform from Neutral at Credit Suisse; tgt lowered to $22)
    • PVTL -3.1% (downgraded to Underperform from Neutral at BofA/Merrill)
    • SHOP -1.5% (downgraded to Neutral from Outperform at Wedbush)
    • K -1.4% (downgraded to Underweight from Equal Weight at Consumer Edge Research)
    • TIF -0.5% (downgraded to Hold from Buy at Loop Capital)
    08:10  CHTR Charter Comm to offer $750 mln of senior notes (392.44 )

     
    08:10  SCANX Gapping down

    Gapping down
    In reaction to disappointing earnings/guidance
    :

    • N/A.

    M&A news:

    • ABBV -7.7% (Allergan confirms deal to be acquired by AbbVie (ABBV) for approximately $63 bln, or ~$188.24 per share in cash & stock)

    Other news:

    • ALDX -22.4% (announces results from noninfectious anterior uveitis SOLACE Trial -- statistical significance was not achieved for the primary or secondary endpoints)
    • AKRX -11.2% (received a warning letter from the FDA related to the inspection of its Somerset, New Jersey manufacturing facility in July and August of 2018)
    • AAXN -2.1% (will replace MarketAxess Holdings in the S&P MidCap 400)
    • MKTX -1.6% (will replace L3 Technologies in the S&P 500)
    • BYND -1.4% (continued weakness)
    • EQT -1.1% (Rice Team nominee John McCartney sends letter to EQT shareholders; Urges shareholders to vote for the Rice Team nominees to deliver on the significant value that still exists at EQT)

    Analyst comments:

    • BHF -6.9% (downgraded to Underperform from Neutral at Credit Suisse; tgt lowered to $22)
    • PVTL -3.1% (downgraded to Underperform from Neutral at BofA/Merrill)
    • SHOP -1.5% (downgraded to Neutral from Outperform at Wedbush)
    • K -1.4% (downgraded to Underweight from Equal Weight at Consumer Edge Research)
    • TIF -0.5% (downgraded to Hold from Buy at Loop Capital)
    08:09  WIRES On The Wires

    • Garmin International, Inc., a unit of Garmin Ltd. (GRMN), announced that Fusion, a Garmin brand and worldwide leader in marine entertainment, has been selected as a supplier of choice for the Independent Boat Builders, Inc. (IBBI), the industry's largest purchasing cooperative. Beginning Model Year 2020, this agreement will give members direct access to Fusion's full line of audio entertainment products through 2024. Comprised of a 19-member network of leading boat brands, IBBI members collectively build nearly 25% of all boats sold in the U.S.
    • Aspen RxHealth announced today that Humana Inc. (HUM) has chosen the company's app-based platform to connect pharmacists with patients to deliver clinical services, including medication therapy management.
    • Covetrus (CVET) announced a new strategic partnership with Heart + Paw, an integrated pet care company that offers comprehensive wellness for animals, including veterinary care, boarding, daycare, grooming and community experiences to pets and their parents. Heart + Paw opened its first center in June 2019 and has significant national growth plans with an initial focus on the Northeast and Mid-Atlantic regions.
    • Axcelis Technologies, Inc. (ACLS) has received the first order for the new Purion XE Power Series implanter from a leading power device manufacturer. The new Purion XE product line extension will be used in high volume production of power devices supporting automotive, mobile and the IoT market spaces. The system is scheduled to ship in the third quarter.
    • Predictive Laboratories, a wholly owned subsidiary of Predictive Technology Group, Inc. (PRED), a leader in the use of data analytics for disease identification and subsequent clinical intervention through precision therapeutic treatments, announces that data from a study of the genes underlying endometriosis may lead to new pathophysiology insights, improved diagnostics and novel treatment approaches. The study data was discussed in an oral presentation by Kenneth Ward, M.D. at the 2019 European Society of Human Reproduction and Embryology annual meeting in Vienna, Austria.
    08:07  SCANX Gapping up

    Gapping up
    In reaction to strong earnings/guidance
    :

    • LEN +4.6%, FDS +1.9%

    M&A news:

    • AGN +31.9% (Allergan confirms deal to be acquired by AbbVie (ABBV) for approximately $63 bln, or ~$188.24 per share in cash & stock)

    Select Biotech/pharma stocks trading higher:

    • EOLS +8%, ENDP +4.7%, TEVA +3%, MYL +3%, MNK +2.7%, PRGO +2.2%, IBB +1.1%

    Other news:

    • NTEC +5.3% (publication of results from an earlier Phase 2 clinical study of the Accordion Pill-Carbidopa/Levodopa in Parkinson's disease patients)
    • XNCR +8% (will replace HF in the S&P SmallCap 600)
    • RMBS +4.7% (sells token services and ticketing businesses to Visa (V))
    • KRYS +4.4% (prices underwritten public offering of 2.5 mln shares of its common stock at a public offering price of $40.00 per share)
    • ARQL +3.4% (prices underwritten public offering of 9.25 mln shares of its common stock at a price to the public of $9.75 per share)
    • GNFT +2.8% (Genfit and Terns Pharmaceuticals announce $228 mln strategic partnership for the development and commercialization of elafibranor in Greater China)
    • NBRV +2.4% (announces European Medicines Agency validation of Marketing Authorization Application for IV and oral formulations of lefamulin)

    Analyst comments:

    • PYX +14.9% (initiated with a Outperform at Imperial Capital; tgt $71)
    • GRUB +4.4% (upgraded to Buy from Neutral at Citigroup)
    • RMTI +3.7% (initiated with Overweight at Cantor Fitzgerald)
    • CBAY +2.5% (initiated with Buy at Stifel)
    • CMG +1.2% (initiated with an Outperform at Credit Suisse)
    08:06  BONDX Overnight Treasury Market Summary

    Longer Tenors Tick Higher

    • U.S. Treasuries are on track to begin the Tuesday session near yesterday's closing levels. Treasury futures stayed on an upward path during the overnight session, but the market found resistance near highs from Friday. The ensuing pullback ran into support near levels from yesterday, leaving Treasuries with modest gains at this juncture. Yesterday's session was quiet, but today, the market will receive some housing and consumer confidence data while the U.S. Treasury will sell $40 bln in 2-yr notes. Fed Chairman Jay Powell will speak in the early afternoon. The U.S. Dollar Index is up 0.1% at 96.05, seeking its first advance in five days.
    • Yield Check:
      • 2-yr: UNCH at 1.74%
      • 3-yr: UNCH at 1.69%
      • 5-yr: UNCH at 1.75%
      • 10-yr: -1 bp to 2.01%
      • 30-yr: -1 bp to 2.54%
    • News:
      • Chinese press reported that local government bond issuance could hit a record high in June due to continued stimulus.
      • Yonhap reported that South Korea's Finance Ministry asked major banks to increase lending to small and medium companies.
      • South Korea's Consumer Confidence decreased to 97.5 in June from 97.9, hitting a five-month low.
      • Hong Kong's May trade deficit totaled HKD34.70 bln (last deficit of HKD35.10 bln). Imports decreased 4.3% m/m (last -5.5%) while exports fell 2.4% m/m (last -2.6%)
      • The new British Prime Minister will be announced on July 23.
      • France's June Business Survey decreased to 102 (expected 104) from 104.
      • Italy's Deputy Prime Minister Luigi Di Maio said that the current coalition government will serve its full term and continue for four more years.
      • European Central Bank Vice President Luis de Guindos said that the effects of negative rates must be watched closely, and that falling growth expectations could weaken the banking sector.
    • Commodities:
      • WTI Crude: -0.4% to $57.68/bbl
      • Gold: +1.0% to $1431.90/ozt
      • Copper: +0.9% to $2.73/lb
    • Currencies:
      • EUR/USD: -0.1% to 1.1385
      • GBP/USD: -0.1% to 1.2728
      • USD/CNH: +0.1% to 6.8783
      • USD/JPY: -0.2% to 107.11
    • Data out Today:
      • 9:00 ET: April S&P Case-Shiller Home Price Index (Briefing.com consensus 2.5%; prior 2.7%) and April FHFA Housing Price Index (Briefing.com consensus 0.2%; prior 0.1%)
      • 10:00 ET: June Consumer Confidence (Briefing.com consensus 132.0; prior 134.1) and May New Home Sales (Briefing.com consensus 683,000; prior 673,000)
    • Treasury Auctions:
      • 13:00 ET: $40 bln 2-yr Treasury note auction results
    • Fed Speakers:
      • 8:45 ET: New York Fed President (FOMC voter) John Williams
      • 12:00 ET: Atlanta Fed President (non-voter) Raphael Bostic
      • 13:00 ET: Chairman (FOMC voter) Jay Powell
    08:01  RFL Rafael Holdings enters into an out-licensing agreement with Ono Pharmaceutical (24.00 )

    Rafael will receive a one-time upfront payment of approximately $12.9 million USD and up to an additional approximately $150.3 million USD if certain development and commercial milestones are achieved. Rafael will also receive low-double digit royalties based on net sales of the Products in Japan, South Korea, Taiwan and ASEAN (Association of Southeast Asian Nations) countries. ONO will have exclusive rights to develop and commercialize the Products for all indications in ONO's territory. Rafael continuously retains all exclusive rights to develop and commercialize the Products outside of ONO's territory.
    07:53  WRAPX S&P futures vs fair value: -2.90. Nasdaq futures vs fair value: -13.30.

    U.S. equity futures are slightly lower after a mixed session yesterday, as investors continue to await the G-20 summit at the end of the week. The S&P 500 futures trade three points, or 0.1%, below fair value.

    In the meantime, the market will hear from several Fed officials throughout the day with Fed Chair Powell headlining the bunch. Mr. Powell will participate in an interview with The New York Times at 1:00 p.m. ET to discuss the challenges facing the economy and the policies of the Federal Reserve. 

    Separately, there has been a mega-merger deal in the health care space this morning. Allergan (AGN 167.50, +37.93, +29.2%) confirmed it will be acquired by AbbVie (ABBV 70.59, -7.86, -10.0%) for about $63 billion, or $188.24 per share, in cash and stock. The deal represents a nearly 45% premium to Allergan's closing price from Monday.

    On the data front, investors will receive the FHFA Housing Price Index for April (Briefing.com consensus 0.2%) and the S&P Case-Shiller Home Price Index for April (Briefing.com consensus 2.5%) at 9:00 a.m. ET. The Conference Board's Consumer Confidence Index for June (Briefing.com consensus 132.0) and New Home Sales for May (Briefing.com consensus 683,000) will be released at 10:00 a.m. ET.

    U.S. Treasuries are little changed. The 2-yr yield is unchanged at 1.74%, and the 10-yr yield is down one basis point to 2.01%. The U.S. Dollar Index is up 0.1% to 96.05. WTI crude is down 0.3% to $57.75/bbl.

    In U.S. Corporate news:

    • Allergan (AGN 167.50, +37.93): +29.2% after confirming it will be acquired by AbbVie (ABBV 70.59, -7.86, -10.0%) for about $63 billion, or $188.24 per share, in cash and stock. The deal represents a 43.8% premium to AGN's closing price from Monday. 
    • Lennar (LEN 53.98, +2.57): +5.0% after beating top and bottom-line estimates. 
    • FactSet (FDS 302.13, +8.80): +3.0% after beating top and bottom-line estimates and raising its FY19 EPS guidance. 

    Reviewing overnight developments:

    • Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei -0.6%, Hong Kong's Hang Seng -1.2%, China's Shanghai Composite -0.9%, India's Sensex +0.8%, South Korea's Kospi -0.2%, Australia's ASX All Ordinaries -0.2%.
      • In economic data:
        • Japan's May BoJ Core CPI +0.7% yr/yr (expected 0.6%; last 0.7%). Corporate Services Price Index +0.8% yr/yr (expected 1.1%; last 1.0%)
        • South Korea's June Consumer Confidence 97.5 (last 97.9)
        • Hong Kong's May trade deficit HKD34.70 bln (last deficit of HKD35.10 bln). May Imports -4.3% m/m (last -5.5%) and Exports -2.4% m/m (last -2.6%)
        • New Zealand's May trade surplus NZD264 mln (expected surplus of NZD200 mln; last surplus of NZD383 mln)
      • In news:
        • Chinese press reported that local government bond issuance could hit a record high in June due to continued stimulus.
        • The Bank of Japan released the minutes from its policy meeting in April, but the text of the minutes was similar to previous releases.
        • Yonhap reported that South Korea's Finance Ministry asked major banks to increase lending to small and medium companies.
        • South Korea's Consumer Confidence hit a five-month low in June.
    • Major European indices trade in negative territory. STOXX Europe 600 -0.1%, Germany's DAX UNCH, U.K.'s FTSE 100 -0.1%, France's CAC 40 -0.1%, Italy's FTSE MIB -0.5%, Spain's IBEX 35 -0.6%.
      • In economic data:
        • U.K.'s June CBI Distributive Trades Survey -42 (expected -10; last -27)
        • France's June Business Survey 102 (expected 104; last 104)
        • Spain's May PPI +1.1% yr/yr (last 2.4%)
      • In news:
        • Italy's Deputy Prime Minister Luigi Di Maio said that the current coalition government will serve its full term and continue for four more years.
        • The comments come amid continued speculation that Deputy Prime Minister Matteo Salvini could force a collapse of the current coalition to capitalize on gains that his party made during the recent election to the European Parliament.
        • European Central Bank Vice President Luis de Guindos said that the effects of negative rates must be watched closely, and that falling growth expectations could weaken the banking sector.
    07:51  OR Osisko Gold Royalties entered into a bought-deal agreement (11.45 )

    Osisko Gold Royalties Ltd announces that Betelgeuse LLC, a jointly owned subsidiary of certain investment funds managed by Orion Resource Partners, has entered into an agreement with a syndicate of underwriters led by CIBC Capital Markets and BMO Capital Markets, pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, an aggregate of 6,850,000 common shares of Osisko held by Orion at an offering price of $14.10 per Common Share for total gross proceeds to Orion of $96,585,000.
    07:37  AKRX Akorn received a warning letter from the FDA related to the inspection of its Somerset, New Jersey manufacturing facility in July and August of 2018 --halted-- (4.73 )

    Douglas Boothe, Akorn's President and Chief Executive Officer, stated, "Akorn is committed to resolving the warning letter in a comprehensive and effective manner. Earlier this year, Akorn launched a companywide action plan to improve the timing and effectiveness of our operations, quality systems and compliance enhancement initiatives, with an emphasis on transparency and quality. We believe the execution of this action plan, which has already begun to yield tangible results, will strengthen and further standardize our quality systems across the entire Akorn network."
    07:32  PCRX Pacira Pharma announces that its MAA for EXPAREL for postsurgical analgesia was validated by the EMA (43.12 )

    The MAA for EXPAREL is supported by clinical evidence across several surgical indications, including patients undergoing Cesarean section and total knee arthroplasty procedures. In December 2018, the EMA issued a positive opinion for the company's Pediatric Investigation Plan (PIP) for EXPAREL for postsurgical analgesia.
    07:30  SUMRX European Markets Update: DAX UNCH, FTSE -0.1%, CAC -0.1%

    Major European indices trade in negative territory. Italy's Deputy Prime Minister Luigi Di Maio said that the current coalition government will serve its full term and continue for four more years. The comments come amid continued speculation that Deputy Prime Minister Matteo Salvini could force a collapse of the current coalition to capitalize on gains that his party made during the recent election to the European Parliament. European Central Bank Vice President Luis de Guindos said that the effects of negative rates must be watched closely, and that falling growth expectations could weaken the banking sector.

    • In economic data:
      • U.K.'s June CBI Distributive Trades Survey -42 (expected -10; last -27)
      • France's June Business Survey 102 (expected 104; last 104)
      • Spain's May PPI +1.1% yr/yr (last 2.4%)

    ---Equity Markets---

    • STOXX Europe 600: -0.1%
    • Germany's DAX: UNCH
    • U.K.'s FTSE 100: -0.1%
    • France's CAC 40: -0.1%
    • Italy's FTSE MIB: -0.5%
    • Spain's IBEX 35: -0.6%

    ---FX---

    • EUR/USD: -0.2% to 1.1379
    • GBP/USD: UNCH at 1.2737
    • USD/CHF: +0.6% to 0.9771
    07:26  S&P futures vs fair value: -0.90. Nasdaq futures vs fair value: -12.10.

    07:07  WIRES On The Wires

    • On June 20, 2019, the Board of Directors of Hologic (HOLX) approved the amendment and restatement of the Company's Bylaws to implement proxy access bylaw provisions and to make other non-material changes. The proxy access bylaw provisions permit a shareholder, or a group of up to twenty shareholders, who have held three percent or more of the Company's stock for at least three years, to nominate and include in the Company's annual proxy materials director nominees constituting the greater of twenty percent or two members of the Company's Board of Directors, provided that the shareholders and nominees satisfy the requirements specified in the Company's Bylaws.
    • IHG (IHG) and Sands China (SCHYY) announced that The Venetian Macao and The Parisian Macao will become InterContinental Alliance Resorts beginning today. In addition, The Londoner Hotel in Macao will join the alliance when it opens in 2020 following the renovation of the current Holiday Inn Macao Cotai Central. IHG and The Venetian Resort Las Vegas also announced the long-term extension of their alliance. The partnership extends through to 2027 at all five properties.
    • Anavex Life Sciences Corp. (AVXL) announced that the first patient, who completed the Phase 2 clinical trial ANAVEX2-73-RS-001 voluntarily moved into the extension study and was dosed in the extension study for the treatment of Rett syndrome.
    • Bausch Health Companies Inc. (BHC) and its dermatology business, Ortho Dermatologics, announced that DUOBRII (halobetasol propionate and tazarotene) Lotion, 0.01%/0.045%, will be available commercially to health care professionals starting this week.
    • Linde (LIN) announced today it has signed a long-term agreement with ExxonMobil (XOM) Asia Pacific Pte. Ltd. to support the latest multi-billion dollar expansion of the company's integrated manufacturing complex in Singapore. This will be the single largest sale of gas contract in the history of the newly merged Linde and of its legacy companies.
    07:05  FDS FactSet beats by $0.25, beats on revs; raises FY19 EPS guidance; narrows FY19 revenue guidance (293.33 )

    • Reports Q3 (May) earnings of $2.62 per share, excluding non-recurring items, $0.25 better than the S&P Capital IQ Consensus of $2.37; revenues rose 7.2% year/year to $364.5 mln vs the $359.25 mln S&P Capital IQ Consensus.
    • ASV plus professional services was $1.45 bln at May 31, 2019. Organic ASV plus professional services was also $1.45 bln at May 31, 2019, up $76.5 mln from the prior year at a growth rate of 5.6%. Organic ASV, which excludes the effects of acquisitions, dispositions and foreign currency, plus professional services, increased $4.5 mln over the last three months.
    • Co issues raised guidance for FY19, sees EPS of $9.80-9.90 from $9.50-9.65, excluding non-recurring items, vs. $9.61 S&P Capital IQ Consensus; sees FY19 revs of $1.42-1.44 bln from $1.41-1.45 bln vs. $1.43 bln S&P Capital IQ Consensus.
    07:03  ARVN Arvinas: FDA has cleared the company's IND for ARV-471 for the treatment of patients with locally advanced or metastatic ER positive / HER2 negative breast cancer (21.87 )

    Arvinas expects to initiate a Phase 1 clinical trial for ARV-471 in the third quarter of 2019. In preclinical studies, ARV-471 demonstrated near-complete ER degradation in tumor cells, induced robust tumor shrinkage when dosed as a single agent in multiple ER-driven xenograft models, and showed superior anti-tumor activity as a single agent and in combination with a CDK4/6 inhibitor when compared to a standard of care agent, fulvestrant, dosed as single agent or in combination with a CDK4/6 inhibitor. Arvinas believes the differentiated pharmacology of ARV-471, including its iterative degradation activity, has the potential to translate into meaningful clinical benefit for patients.
    07:02  NTEC Intec Pharma announces publication of results from an earlier Phase 2 clinical study of the Accordion Pill-Carbidopa/Levodopa in Parkinson's disease patients (4.16 )

    The article reviews pharmacokinetic and efficacy data from the Company's phase 2, multicenter, open-label, two-way randomized crossover study that evaluated multiple dose strengths of the AP-CD/LD (50/250 mg, 50/375 mg or 50/500 mg) twice daily in one treatment period and an active comparator in the other treatment period. The article presents results from cohorts 1-4 out of the 6 cohorts of PD patients who participated in the study. Pharmacokinetics (PK) and efficacy were evaluated for AP-CD/LD compared with immediate release Carbidopa/Levodopa (IR-CD/LD). Treatment-emergent adverse events (TEAEs) and patient- and investigator-reported measures were also evaluated. The PK results showed that compared with IR-CD/LD, treatment with either AP-CD/LD dose demonstrated more stable LD plasma concentrations in both fluctuating and non-fluctuating PD patients, and significantly decreased the LD Cmax (57.1% and 66.8% decreases among fluctuating and non-fluctuating patients, respectively).
    07:01  ARQL ArQule prices underwritten public offering of 9.25 mln shares of its common stock at a price to the public of $9.75 per share (10.01 )

     
    07:01  RMBS Rambus sells token services and ticketing businesses to Visa (V); terms not disclosed (11.55 )

    The combination of Visa's network tokenization capabilities with the local and account tokenization technology of Rambus will facilitate safer, more secure payments across all forms of global commerce.
    07:00  ALDX Aldeyra Therapeutics announces results from noninfectious anterior uveitis SOLACE Trial -- statistical significance was not achieved for the primary or secondary endpoints (7.09 )

    Statistical significance was not achieved for the primary or secondary endpoints, due to high rates of disease resolution in vehicle-treated patients, but activity of reproxalap was consistently greater than that of vehicle. Noninfectious anterior uveitis program to be discontinued. The co plans to prioritize Phase 3 ocular pipeline programs in dry eye disease, allergic conjunctivitis, and proliferative vitreoretinopathy.
    07:00  SUMRX Asian Markets Close: Nikkei -0.6%, Hang Seng -1.2%, Shanghai -0.9%

    Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Chinese press reported that local government bond issuance could hit a record high in June due to continued stimulus. The Bank of Japan released the minutes from its policy meeting in April, but the text of the minutes was similar to previous releases. Yonhap reported that South Korea's Finance Ministry asked major banks to increase lending to small and medium companies. South Korea's Consumer Confidence hit a five-month low in June.

    • In economic data:
      • Japan's May BoJ Core CPI +0.7% yr/yr (expected 0.6%; last 0.7%). Corporate Services Price Index +0.8% yr/yr (expected 1.1%; last 1.0%)
      • South Korea's June Consumer Confidence 97.5 (last 97.9)
      • Hong Kong's May trade deficit HKD34.70 bln (last deficit of HKD35.10 bln). May Imports -4.3% m/m (last -5.5%) and Exports -2.4% m/m (last -2.6%)
      • New Zealand's May trade surplus NZD264 mln (expected surplus of NZD200 mln; last surplus of NZD383 mln)

    ---Equity Markets---

    • Japan's Nikkei: -0.6%
    • Hong Kong's Hang Seng: -1.2%
    • China's Shanghai Composite: -0.9%
    • India's Sensex: +0.8%
    • South Korea's Kospi: -0.2%
    • Australia's ASX All Ordinaries: -0.2%

    ---FX---

    • USD/JPY: -0.3% to 106.94
    • USD/CNH: UNCH at 6.8792
    • USD/INR: +0.2% to 69.36
    06:56  S&P futures vs fair value: -2.10. Nasdaq futures vs fair value: -16.00.

    06:56  European Markets

    FTSE...7399.75...-16.90...-0.20%.  DAX...12268.81...-5.80...-0.10%.
    06:56  Asian Markets

    Nikkei...21194...-92.20...-0.40%.  Hang Seng...28186...-327.00...-1.20%.
    06:55  FXI Shanghai... -0.87%

     
    06:50  MOR MorphoSys names Jean-Paul Kress, M.D. CEO effective September 1 (26.18 )

    In his new position, Dr. Kress will succeed Dr. Simon Moroney, who had announced his decision not to renew his contract as a member of MorphoSys's Management Board in February 2019 and who will step down as CEO on September 1, 2019. Prior to joining MorphoSys, Dr. Kress served as President and Chief Executive Officer at Syntimmune, now a subsidiary of Alexion Pharmaceuticals (ALXN).
    06:44  AGN Allergan confirms deal to be acquired by AbbVie (ABBV) for approximately $63 bln, or ~$188.24 per share in cash & stock (129.57 )

    Under the terms of the Transaction Agreement, Allergan Shareholders will receive 0.8660 AbbVie Shares and $120.30 in cash for each Allergan Share that they hold, for a total consideration of $188.24 per Allergan Share. The transaction represents a 45% premium to the closing price of Allergan's Shares on June 24, 2019.

    • AbbVie anticipates that the Acquisition will provide annual pre-tax synergies and other cost reductions of at least $2 billion in year three while leaving investments in key growth franchises untouched. The synergies and other cost reductions will be a result of optimizing the research and early stage portfolio, and reducing overlapping R&D resources (~50%), driving efficiencies in SG&A, including sales and marketing and central support function costs (~40%), and eliminating redundancies in manufacturing and supply chain, and leveraging procurement spend (~10%). The synergies estimate excludes any potential revenue synergies.
    • AbbVie is expected to generate significant annual operating cash flow, which will support a debt reduction target of $15 to $18 billion before the end of 2021, while also enabling a continued commitment to Baa2/BBB or better credit rating and continued dividend growth.
    • This transaction is expected to be 10% accretive to adjusted earnings per share over the first full year following the close of the transaction, with peak accretion of greater than 20%. ROIC is expected to exceed AbbVie's cost of capital within the first full year.
    • The companies anticipate closing of the transaction by early 2020
    06:41  SCANX Early premarket gappers

    Gapping up:

    • AGN +35.1%, ALDX +14.9%, XNCR +8%, RMTI +4.7%, LEN +4.1%, NBRV +2.4%, GNFT +2.3%, CBAY +2.2%, ARQL +1.4%

    Gapping down:

    • ABBV -5%, BYND -3.9%, AAXN -1.2%, MRTX -1.2%, MKTX -1.1%, EQT -1.1%, KRYS -0.5%
    06:07  WIRES On The Wires

    • U.S. Well Services, Inc. (USWS) announced that it has entered into an agreement with AmeriMex Motor & Controls, LLC., a subsidiary of Industrial Service Solutions. Under the terms of the agreement, AmeriMex will provide electric motors exclusively to USWS as it relates to electric hydraulic fracturing.
    • Ctrip (CTRP) has signed a memorandum of understanding (MOU) with Tourism Fiji and Fiji Airways at the Ctrip Headquarter in Shanghai. This MOU will enable Ctrip to work closely with Tourism Fiji and Fiji Airways on business development and joint promotional activities. This will help to accelerate Fiji's existing marketing activities in China.
    • Gilead Sciences, Inc. (GILD) and Carna Biosciences Inc. announced that the companies have entered into a research and development collaboration to develop and commercialize small molecule compounds in immuno-oncology and to access Carna's proprietary lipid kinase drug discovery platform. Under the terms of the license agreement, Gilead will license from Carna worldwide rights to develop and commercialize inhibitors against an undisclosed immuno-oncology target. In connection with this agreement, Carna will receive an upfront payment of $20 million and is eligible to receive up to an additional $450 million in potential milestone payments upon achievement of certain development and commercial milestones. Carna will also receive royalties on future net sales.
    • Norbord Inc. (OSB) reported that its OSB mill in High Level, Alberta was cleared to restart, and safely resumed normal operations over the weekend. The MacKenzie County mandatory evacuation order and town of High Level evacuation alert were both lifted this afternoon and MacKenzie County remains under an evacuation alert. The curtailment is not expected to materially impact Norbord's second quarter results.
    • ERYTECH Pharma (ERYP) announced that it has entered into an agreement with SQZ Biotechnologies, a cell therapy company developing novel treatments in multiple therapeutic areas, to advance novel RBC-based therapeutics for immune modulation. ERYTECH is eligible to receive up to $57 million in combined upfront and potential development, regulatory and commercial milestone payments for the first product successfully developed by SQZ under this agreement. ERYTECH will also be eligible to receive sales royalties, and up to a total of $50 million in commercial milestone payments related to each additional approved product or approved indication.
    06:05  LEN Lennar beats by $0.16, beats on revs (51.41 )

    • Reports Q2 (May) earnings of $1.30 per share, $0.16 better than the S&P Capital IQ Consensus of $1.14; revenues rose 1.9% year/year to $5.56 bln vs the $5.13 bln S&P Capital IQ Consensus.
    06:03  KRYS Krystal Biotech prices underwritten public offering of 2.5 mln shares of its common stock at a public offering price of $40.00 per share (41.20 )

     
    06:01  EQT EQT Corp.: Rice Team nominee John McCartney sends letter to EQT shareholders; Urges shareholders to vote for the Rice Team nominees to deliver on the significant value that still exists at EQT (15.38 )

     
    06:01  WIRES On The Wires

    • Taiwan Liposome Company, Ltd. (TLC) announced the signing of a development and license agreement with Birdie Biopharmaceuticals Inc., a wholly owned subsidiary of Seven and Eight Biopharmaceuticals Corp. Birdie and Seven and Eight Biopharmaceuticals are clinical stage biotech companies focused on the development of immunotherapy to treat cancer.
    • Tilray Inc. (TLRY) announced it has imported medical cannabis oral solutions in bulk into the United Kingdom from its Good Manufacturing Practices (GMP)-certified facility in Canada. This export allows Tilray to provide authorized U.K. patients in need with a locally maintained supply of medical cannabis oral solutions.
    • Almirall, S.A. and Dermira, Inc. (DERM) announced that Almirall has exercised its option to license rights to develop and commercialize lebrikizumab for the treatment of atopic dermatitis and certain other indications in Europe. Almirall and Dermira previously entered into an option and license agreement in February 2019 pursuant to which Almirall was granted this exclusive option in exchange for an upfront option fee of $30 million. As a result of Almirall's decision to exercise its option, the company will pay Dermira $50 million, and Dermira will be eligible to receive additional payments upon the achievement of certain milestones, including $30 million in connection with the initiation of certain Phase 3 clinical studies.
    • Amazon (AMZN) announced that this July, Amazon will provide Prime members worldwide the chance to get epic deals during its longest Prime Day ever. Prime Day starts at midnight PT on Monday, July 15 and -- for the first time ever -- runs for 48 hours, offering members two full days with more than one million deals around the world.
    • Amcor plc (AMCR) announces it has entered into a binding agreement with Kohlberg & Company, for the sale of three former Bemis plants located in the United Kingdom and Ireland for cash consideration of USD 394 million (347 million). Collectively these three plants generate annual sales of approximately USD 170 million from the sale of flexible packaging for certain healthcare products. This divestment was required by the European Commission at the time of approving Amcor's acquisition of Bemis on 11 February 2019.
    06:00  CS Credit Suisse announces the combination of its third party investment fund platform Credit Suisse InvestLab with Allfunds (11.66 )

    • The agreement will create a global fund distribution platform with combined assets under administration of more than CHF 570 bln and distinct distribution competences.
    • The combined business leverages the global wealth management footprint of Credit Suisse and the technological innovation of Allfunds, further enhancing the service offering to asset managers and distributors worldwide.
    • The transaction comprises the transfer of all shares in Credit Suisse InvestLab, including the service agreements, and the related distribution agreements of Credit Suisse to Allfunds Group. As part of this combination, Credit Suisse will become a minority shareholder of up to 18% in the combined business and will be represented at the Board. Going forward, Credit Suisse will utilize the combined business platform to distribute mutual funds and ETFs.
    • Upon the projected closing in Q3 2019, the transaction will have a limited regulatory capital benefit and is expected to result in a 0.5% RoTE uplift for the financial year 2019 for this transaction alone, all other things being equal.
    06:00  BMWYY BMW Group steps up the pace of e-mobility expansion (24.12 )

    • Co says sales of electrified vehicles to climb more than 30% per year up to 2025.
    • Co is adjusting frequency to up the tempo of its electromobility expansion program. The company will now achieve the total of 25 electrified models previously announced for 2025 two years earlier, in 2023. Thanks to flexible vehicle architectures for fully-electric, plug-in hybrid and combustion engine drive trains, the company is able to respond quickly to changing conditions. More than half of the 25 models will be fully electric.
    06:00  SUMRX Overnight Summary -- World markets ease back in early trade

    • The global equity markets are off to a slightly weaker start to begin the day. The markets appear to be trading with some caution and profit taking heading into the long awaited G-20 conference later this week. S&P Futures continue to be range bound. The index is trading around 2949, with the overnight high pegged at 2958.25, while the session low sits at 2942.25.
    • In Asia, both China and Japan finished lower. The Shanghai gave up 0.9% that seemed more like profit taking after last week's run higher. There were also reports that President Trump talked down expectations for the G-20 summit. Japanese shares lost ground following media reports that President Trump is mulling a revamp of the long standing peace treaty with Japan, suggesting the state pick up more slack for its defense. Automotive and Export stocks saw weakness with names such as Toyota and Sony both losing 1% on the day. 
    • European bourses are doing very little this morning, under very slight pressure in correspondence with the US and Asia.

    Market Updates 

    • S&P Futures vs Fair Value: -1.0
    • 10 yr Note: 2.02%
    • USD/JPY: 107.09  -0.21
    • EUR/USD: 1.1383  -0.0016
    • Europe: FTSE -0.2%  DAX  -0.1%  CAC -0.1%
    • Asia: Hang Seng  -1.2%  Shanghai -0.9% Nikkei  -0.4%
    • Gold (1432.90 +14.70) Silver (15.45 +0.07) Crude (57.91 +0.01)
    17:44  FBK FB Financial to sell its Correspondent Lending channel to Rushmore Loan Management Services; expects the transaction to close early Q3 (35.08 -0.07)

    In addition to the $1.1 million restructuring expense reported for the first quarter of 2019, FB Financial expects to record additional restructuring charges of up to $1.5 million to cover transaction related expenses, severance and other items related to its mortgage operations. Excluding the impact of the mortgage restructuring charges noted above, FB Financial expects an increase in the operating results from its total mortgage operations in the second quarter of 2019 as compared to the first quarter of 2019. During the quarter the mortgage operations have experienced both strong origination volumes and elevated prepayments in the mortgage servicing rights portfolio.
    17:38  FLR Fluor's Stork with its consortium partners was awarded a 4-year framework agreement for plant turnaround services by Ecopetrol (EC) (31.11 -0.95)

    The Colombia-based consortium includes Stork as the international lead partner, Rampint as the local partner in Barrancabermeja and Servimant as the local partner in Cartagena. The agreement also includes two extension options for an additional two years each. Both refineries supply fuel to meet Colombia's national and export product needs. Fluor booked the undisclosed contract value in the second quarter of 2019.
    17:30  MDCO The Medicines Co also launched public offering of $150.0 mln of shares of common stock (35.36 -1.04)

     
    17:25  MDCO The Medicines Co files mixed securities shelf offering (35.36 -1.04)

     
    16:54  ALDX Aldeyra Therapeutics will hold call on June 25 at 8 a.m. Eastern Time to provide top-line results from the SOLACE trial of topical ocular reproxalap in patients with noninfectious anterior uveitis (7.09 -0.34)

     
    16:49  KRYS Krystal Biotech announces it has commenced $100 mln public offering of common stock; all shares will be sold by the company (41.20 +12.05)

     
    16:38  ARQL ArQule also commences underwritten public offering of common stock (10.01 -0.48)

    There can be no assurances as to whether or when the offering may be completed, or as to the actual size or terms of the offering. Co intends to use the net proceeds of the offering to fund its core clinical programs and for general corporate purposes.
    16:35  EHC Encompass Health makes minority equity investment in Medalogix

    Medalogix provides predictive analytics and data science for home health and hospice. Medalogix is assisting Encompass Health in preparing for the impending changes to the Patient-Driven Groupings Model, a new home health payment model for Medicare patients expected to take effect January 1, 2020.
    16:34  ARQL ArQule files mixed securities shelf offering (10.01 -0.48)

     
    16:33  CHS Chico's FAS issues open letter to shareholders announcing additional actions supporting corporate governance (3.32 -0.06)

    • Board of Directors unanimously approves an amendment to company bylaws to opt out of Florida's control share acquisition statute bylaw amendment. This provides voting rights for all Chico's FAS shareholders and eliminates the need for a special meeting as recently requested by Sycamore Partners.
    • "To be clear, this bylaw amendment relates solely to voting rights; it does not speak to the merits of, or otherwise advance, Sycamore's unsolicited acquisition proposal, nor does it speak to whether the Company should engage with Sycamore on its proposal. As previously announced, Sycamore's June 19, 2019 proposal is being reviewed by the Board. On this point, we appreciate the strong support we have received from numerous shareholders for the Board's decision to reject Sycamore's May 10 acquisition proposal and the confidence expressed in our ability to improve the Company's growth and value creation. We also appreciate the strong support we have received from numerous shareholders over the past weeks for our new operating priorities and the improvements underway in these areas."
    16:32  IBP Installed Building Products announces acquisition of Expert Insulation and Expert Insulation of Brainerd; terms not disclosed (54.29 +0.24)

    Founded in 1998, Expert Insulation serves the Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota markets through branch locations in Rochester and Brainerd, Minnesota. The company provides fiberglass and spray foam insulation installation services, as well as waterproofing services for commercial, residential, and multi-family customers. The acquisition adds approx. $12.0 mln of annual revenue. The company has also this quarter acquired an insulation installer in Pennsylvania with approx. $3.6 mln in annual revenues.
    16:28  FRTA Forterra appoints Karl H. Watson, Jr. as CEO; reaffirms FY19 outlook (4.56 -0.04)

    • Mr. Watson, who most recently served as EVP and COO at Summit Materials (SUM), succeeds Jeff Bradley, who has stepped down as CEO and a director to pursue other opportunities.
    • The company continues to expect full year 2019 financial results to be in line with its prior guidance, most recently addressed in the company's earnings release for the first quarter of 2019. As stated on May 6, 2019, Forterra anticipates further strengthening in public infrastructure spending, continued positive pricing trends, and stabilizing input costs. The company remains focused on executing commercial and operational initiatives geared toward improving operating margins and cash flow.
    16:21  WRAPX Closing Stock Market Summary

    The S&P 500 declined 0.2% on Monday, finishing near session lows in a day that showed little conviction from investors. With big gains already registered in June and the G-20 summit set to begin at the end of the week, the broader market appeared content trading little changed for most of the session.

    The Dow Jones Industrial Average (+0.03%) finished fractionally higher, while the Nasdaq Composite lost 0.3%. The Russell 2000 underperformed with a loss of 1.3%. 

    President Trump and President Xi are expected to partake in an extended meeting at G-20, which many see as a potential market-moving event. Although many analysts aren't expecting a swift resolution to the trade dispute this weekend, there is still optimism that progress can be made. 

    It was a mixed session with six S&P 500 sectors finishing lower and five finishing higher. The energy sector (-0.9%) gave back some of its gains from last week, while the consumer discretionary sector (-0.5%) was dragged lower by many stocks within the SPDR S&P Retail ETF (XRT 41.67, -0.65, -1.5%). The materials (+0.5%), consumer staples (+0.3%), and information technology (+0.2%) sectors provided offsetting support. 

    The health care sector (-0.5%) was pressured by the insurance and hospital stocks after President Trump signed an executive order to make health care costs more transparent to patients. Shares of Bristol-Myers (BMY 45.68, -3.66, -7.4%) also underperformed amid a host of negative news, one of which included an announcement that its acquisition of Celgene (CELG 93.47, -5.44, -5.5%) will be pushed back to the end of 2019 or beginning of 2020. 

    On a related note, President Trump signed a separate executive order, hitting Iran with new sanctions after it shot down a U.S. military drone last week. Market reaction was muted, as President Trump already indicated last week that more sanctions were coming. 

    In M&A news, Caesars Entertainment (CZR 11.44, +1.45, +14.5%) confirmed it will be acquired by Eldorado Resorts (ERI 45.77, -5.45, -10.6%) for $12.75/share in cash and stock, or approximately $8.6 billion.

    U.S. Treasuries finished on a higher note, pushing yields lower across the curve. The 2-yr yield declined four basis points to 1.74%, and the 10-yr yield declined five basis points to 2.02%. The U.S. Dollar Index declined 0.2% to 96.00 for its fourth consecutive decline. WTI crude increased 0.8% to $57.82/bbl.

    Investors did not receive any economic data on Monday. On Tuesday, investors will receive New Home Sales for May, the Conference Board's Consumer Confidence Index for June, the FHFA Housing Price Index for April, and the S&P Case-Shiller Home Price Index for April.

    • Nasdaq Composite +20.7% YTD
    • S&P 500 +17.5% YTD
    • Russell 2000 +13.5% YTD
    • Dow Jones Industrial Average +14.6% YTD
    16:20  GNFT Genfit and Terns Pharmaceuticals announce $228 mln strategic partnership for the development and commercialization of elafibranor in Greater China (shares halted) (20.22 +0.02)

    Terns will have the rights to develop and commercialize elafibranor, GENFIT's proprietary compound, in Greater China, for the treatment of non-alcoholic steatohepatitis (NASH) and primary biliary cholangitis (PBC). Under the terms of the licensing agreement, GENFIT will receive an upfront payment from Terns of $35 mln and will be eligible to receive up to $193 mln in potential clinical, regulatory, and commercial milestone payments. Terns obtains the exclusive rights to develop, register, and market elafibranor in mainland China, Hong Kong, Macau, and Taiwan for both NASH and PBC. Upon commercial launch of elafibranor for the treatment of NASH in Greater China, GENFIT will be entitled to receive mid-teen percentage royalties from Terns based on sales in the territory. The two companies will also collaborate on research and development moving forward in NASH and PBC.
    16:17  IART Integra promotes Glenn Coleman to COO and appoints Carrie Anderson as CFO, effective June 24 (53.24 -0.05)

    • Mr. Coleman most recently served as CFO and corporate vice president, responsible for Integra's international business. The role of COO is a newly-created position at the company.
    • Ms. Anderson most recently served as chief accounting officer and corporate controller at Dover Corporation (DOV).
    16:17  EZPW EZCORP acquires seven pawn stores in Nevada operating under "Metro Pawn" banner (9.41 +0.30)

    Co announces that it has completed the acquisition of seven pawn stores in Nevada, bringing the company's total store count in the state to 24. The acquired stores, operating under the name "Metro Pawn," include five stores in the Reno area, representing the company's entry into the Las Vegas area, giving the company a total of 19 stores in that market.

    The acquisition was completed earlier today, and the purchase price was paid in cash.
    16:13  STRO Sutro Biopharma appoints retired Biogen Idec (BIIB) EVP Connie Matsui as Chairman (11.68 -0.19)

     
    16:11  GNFT Genfit trading halted, news pending (20.22 +0.02)

     
    16:11  EVFM Evofem Biosciences files for 13,888,891 share common stock offering by holders including 2,777,779 shares issuable upon the exercise of common stock warrants (6.67 -0.26)

     
    16:04  NBRV Nabriva Therapeutics announces European Medicines Agency validation of Marketing Authorization Application for IV and oral formulations of lefamulin (2.10 -0.11)

    The EMA has determined that the company's MAA for intravenous and oral formulations of lefamulin, a potentially first-in-class, semi-synthetic pleuromutilin antibiotic for the treatment of community-acquired pneumonia in adults 18 years of age and older, is valid. Validation of the MAA confirms that the submission is sufficiently complete to begin the formal review process. An opinion of the EMA Committee for Medicinal Products for Human Use is anticipated in the next 12 to 15 months.
    16:04  GLDD Great Lakes Dredge & Dock announces receipt of dredging awards totaling $91 mln (10.51 -0.38)

    The scope of work for the coastal protection projects includes nourishment of beachfronts with sand excavated from off-shore borrow which is then used to rebuild dunes and restore the shorelines eroded by winter storms.

    The projects will be executed in the second half of 2019 and into 2020 and will be performed by hopper dredges with a minimal disruption to the local communities with a view to increasing the resilience of our coastal environments to challenges from rising sea levels.
    16:01  MRTX Mirati Therapeutics commenced underwritten public offering of shares of its common stock (100.75 -0.69)