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Earnings release

Oct 18/a AXP PYPL ISRG CP TEAM CE ETFC PBCT
Oct 19/b PG HON SLB VFC STT STI RCI SYF


In Play from Briefing.com

Updated: 19-Oct-18 08:00 ET

07:57  XLV EMA's CHMP releases meeting highlights from October 15-18 meeting -- recommended six medicines for approval, three extensions of indications (92.35 )

  • The CHMP recommended granting a marketing authorisation for Takhzyro (lanadelumab) [Shire (SHPG)], the first monoclonal antibody therapy for the prevention of recurrent attacks of hereditary angioedema (HAE). This medicine was reviewed under EMA's accelerated assessment procedure, reserved for medicines of major public health interest.
  • The Committee recommended granting a marketing authorisation for Namuscla (mexiletine hydrochloride) [Lupin Europe], for the treatment of myotonia in adult patients with non-dystrophic myotonic disorders. This is the first treatment for this disease to be authorised EU-wide.
  • The CHMP recommended granting a marketing authorisation for Dengvaxia (dengue tetravalent vaccine (live, attenuated)) [Sanofi  (SNY)], the first vaccine in the EU for the prevention of dengue disease caused by dengue virus serotypes 1, 2, 3 and 4 in people who are between 9 and 45 years old, live in an endemic area and already had a prior dengue virus infection.
  • The Committee adopted a positive opinion for Flucelvax Tetra (influenza vaccine surface antigen inactivated prepared in cell cultures) [Seqirus Netherlands], intended for the prevention of influenza in adults and children from 9 years of age.
  • The CHMP also recommended the granting of a marketing authorisation for Bevespi Aerosphere(glycopyrronium / formoterol fumarate dihydrate) [AstraZeneca (AZN)], for maintenance treatment of chronic obstructive pulmonary disease (COPD).
  • The biosimilar medicine Ogivri (trastuzumab) [Mylan (MYL)] received a positive opinion from the CHMP for the treatment of breast and gastric cancer.
  • Three recommendations on extensions of therapeutic indication
    • The Committee recommended extensions of indication for Kalydeco [Vertex (VRTX)], Keytruda [Merck (MRK)] and NovoSeven [Novo Nordisk (NVO)].

CHMP Minutes

07:55  VRTX Vertex Pharma: EMA CHMP adopted a positive opinion for KALYDECO to include the treatment of people with cystic fibrosis aged 12 to <24 months who have at least one of nine mutations in their cystic fibrosis transmembrane conductance regulator gene (178.90 )

 
07:53  WIRES On The Wires

  • Myriad Genetics, Inc. (MYGN) announced new data from two studies of Vectra that evaluated the test's ability to track treatment response in patients with rheumatoid arthritis (RA). The studies were conducted by academic collaborators and will be presented at the American College of Rheumatology meeting in Chicago, IL. The key findings are that Vectra statistically significantly predicted response to tofacitinib and tracked response to rituximab.
  • Amneal Pharmaceuticals (AMRX) announced that it has received FDA approval for a generic version of Isuprel Injection (isoproterenol hydrochloride) USP, 0.2 mg/mL and 1 mg/5 mL(0.2 mg/mL) Single-Dose Vials. The Company has immediately initiated commercialization activities.
  • Teekay Offshore (TOO) disclosed in a regulatory filing that this month, certain subsidiaries entered into an agreement with Alpha Petroleum Resources Limited (Alpha Petroleum) to use Teekay Offshore's Petrojarl Varg floating production, storage and offloading (FPSO) unit to operate on the Cheviot oil field on the UK continental shelf.
  • eBay (EBAY) announced that it has signed an agreement with Cox Automotive to acquire Motors.co.uk, a leading UK-based classifieds site that makes the car buying and selling process intuitive and simple. Subject to deal close, Motors.co.uk would become part of Gumtree UK, an eBay Classifieds business.eBay (EBAY) announced that it has signed an agreement with Cox Automotive to acquire Motors.co.uk, a leading UK-based classifieds site that makes the car buying and selling process intuitive and simple. Subject to deal close, Motors.co.uk would become part of Gumtree UK, an eBay Classifieds business.
07:52  SNY Sanofi: EMA's CHMP adopts positive opinion for the marketing authorization of Sanofi's dengue vaccine, recommending its approval in Europe. (44.45 )

The indication for the dengue vaccine recommended by the CHMP is for use in prevention of dengue disease caused by dengue virus serotypes 1, 2, 3 and 4 in individuals 9 to 45 years of age with prior dengue virus infection and living in endemic areas. European Commission approval of the vaccine is expected in December 2018.
07:50  OCUL Ocular Therapeutix receives a warning letter from the FDA (6.18 )

The letter relates to Ocular's compliance with data collection and information reporting obligations in a post-approval Device Exposure Registry study required as a condition for approval of the premarket approval (PMA) application for ReSure Sealant. The Company is required to provide periodic reports to the FDA on the progress of this post-approval study until it is completed. The Company has had discussions with the FDA regarding the conduct of the study and intends to respond to the warning letter from the FDA within the required 15 day period.
07:43  SCANX Early premarket gappers

  • Gapping up: AVXL +21.1%, CAL +11.2%, TTGT +10%, SKX +8.3%, PYPL +6.4%, VRAY +6.2%, VRAY +6.2%, CLVS +5%, PG +3.8%, CE +3.4%, MPVD +3.3%, HON +2.5%, TSLA +1.9%, ISRG +1.9%, FBC +1.8%, CP +1.5%, IPG +1.4%, AAPL +1%, MU +1% AXP +0.9%, ETFC +0.7%
  • Gapping down: OZK -16.8%, INAP -13.9%, LLNW -9.4%, AKTS -9.2%, SREV -8%, XOG -5.5%, TEAM -5.4%, CNXN -3.9%, DWDP -3.6%, AIG -3.3%, ADNT -2.4%
07:36  MAN Manpower beats by $0.02, misses on revs; guides Q4 EPS in-line (78.35 )

  • Reports Q3 (Sep) earnings of $2.43 per share, $0.02 better than the S&P Capital IQ Consensus of $2.41; revenues fell 0.8% year/year to $5.42 bln vs the $5.64 bln S&P Capital IQ Consensus.
  • Co issues in-line guidance for Q4, sees EPS of $2.42-2.50, excluding non-recurring items, vs. $2.49 S&P Capital IQ Consensus. This excludes an estimated one-time negative impact of 27 cents related to reduced gross profit in France
07:30  STNL Sentinel Energy Services enters business combination with Strike Capital (9.85 )

The co announced it has entered into a definitive agreement to acquire a majority interest in Strike Capital LLC ("Strike Capital"), which owns and operates Strike LLC ("Strike"), a leading North America infrastructure and integrity services and projects business. The combined company will have an anticipated initial total enterprise value of approximately $854 million.

  • Upon completion of the business combination, which is expected to occur during the first quarter of 2019, Sentinel will be renamed Strike Inc. and is expected to trade on the NYSE under a new ticker "STRK".
  • Sentinel has also obtained commitments for a $150 million PIPE investment at $10 per share, including a cash commitment of $110 million by Fidelity Management and Research Company and $40 million investment by Sentinel's sponsor, CSL Capital Management L.P. and certain of its investment funds, comprising a cash commitment of $22 million and the contribution of a mid-stream pipeline services business, Invacor, valued at $18 million.
07:30  SUMRX European Markets Update: FTSE +0.2%, DAX -0.2%, CAC -0.7%

Major European indices trade on a mostly lower note with Italy's MIB (-0.8%) sliding to levels from early 2017. Meanwhile, Italy's 10-yr yield (+5 bps to 3.73%) has climbed to a fresh high for the year. Italian officials have until Monday to respond to the European Commission's request for a clarification regarding the country's deficit plan for 2019. European Central Bank President Mario Draghi warned that questioning of EU rules could negatively impact economic growth. British Prime Minister Theresa May said her government is committed to resolving Brexit issues as quickly as possible, but more difficult are expected in the final stages of talks.

  • In economic data:
    • Eurozone August Current Account surplus EUR23.90 billion (expected surplus of EUR21.40 billion; last surplus of EUR19.50 billion)
    • UK's September Public Sector Net Borrowing GBP3.26 billion (expected GBP4.60 billion; last GBP4.76 billion)

---Equity Markets---

  • UK's FTSE is higher by 0.2%. Intu Properties has jumped 10.5% after receiving an acquisition offer from a consortium. Consumer names like Reckitt Benckiser, Unilever, Diageo, British American Tobacco, Next, Tesco, Marks & Spencer, Imperial Brands, Sainsbury, and Morrison Supermarkets sport gains between 0.5% and 3.6%.
  • Germany's DAX is lower by 0.2%. Lufthansa has slumped 6.8% while Continental, Covestro, Infineon, Thyssenkrupp, Volkswagen, Deutsche Bank, Siemens, and BASF show losses between 0.7% and 5.0%.
  • France's CAC has surrendered 0.7%. Bouygues has gotten decimated after lowering its outlook while Michelin is down 7.6% after lowering guidance of its own. Peugeot, Renault, Credit Agricole, Societe Generale, BNP Paribas, and AXA hold losses between 1.4% and 3.1%.
  • Italy's MIB has given up 0.8% with financials leading the retreat. UBI Banca, Banco Bpm, Banca Generali, FinecoBank, UniCredit, Bper Banca, Banca Mediolanum, and Intesa Sanpaolo are down between 0.8% and 5.3%.
07:26  S&P futures vs fair value: +12.80. Nasdaq futures vs fair value: +52.80.

07:12  IPG Interpublic beats by $0.02, reports revs in-line; reaffirms outlook (22.48 )

  • Reports Q3 (Sep) earnings of $0.48 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $0.46; revenues rose 3.5% year/year to $1.9 bln vs the $1.88 bln S&P Capital IQ Consensus. organic net revenue increase of 5.4%; U.S. organic net revenue growth of 5.0%; International organic net revenue growth of 6.0%.
  • Company reaffirms full year target for organic net revenue growth in range of 4.0% to 4.5%, and target of 60 to 70 basis points of margin expansion
07:12  STT State Street misses by $0.02, misses on revs (79.70 )

  • Reports Q3 (Sep) earnings of $1.87 per share, $0.02 worse than the S&P Capital IQ Consensus of $1.89; revenues rose 3.7% year/year to $2.95 bln vs the $3.02 bln S&P Capital IQ Consensus.
  • Fee revenue: Increased 2%, or $38 million, relative to 3Q17, reflecting higher management fees and trading services revenue, partially offset by lower servicing fees as a result of a previously announced client transition and challenging industry conditions.
    • The impact of the new revenue recognition standard contributed $70 million, or approximately 3% points, to fee revenuegrowth.
    • Prior year fee revenue included a $26 million gain related to the sale of an equity trading platform.
07:11  ABCB Ameris Bancorp beats by $0.02 (43.08 )

  • Reports Q3 (Sep) earnings of $0.91 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $0.89.
07:08  PG Procter & Gamble beats by $0.03, beats on revs; reaffirms core FY19 EPS and revenue guidance (80.24 )

  • Reports Q1 (Sep) earnings of $1.12 per share, excluding non-recurring items, $0.03 better than the S&P Capital IQ Consensus of $1.09; revenues rose 0.2% year/year to $16.69 bln vs the $16.45 bln S&P Capital IQ Consensus. 
  • Organic sales increased four percent driven by a three percent increase in shipment volume. Positive mix impact was a one percent help to organic sales due to the disproportionate organic growth of the Skin and Personal Care and Personal Health Care categories and strong growth in the United States. Pricing was neutral to the quarter.
  • Co issues guidance for FY19, sees EPS +3-8% to ~$4.35-4.56, excluding non-recurring items, vs. $4.37 S&P Capital IQ Consensus; sees FY19 revs of flat to down 2% to ~$65.50-66.83 bln vs. $66.58 bln S&P Capital IQ Consensus. P&G said it is maintaining its guidance for organic sales growth in the range of two to three percent for fiscal 2019. On a currency-neutral basis, this guidance translates to Core EPS growth of eleven to sixteen percent.
07:06  RCI Rogers Comms beats by $0.04, reports revs in-line; reaffirms FY 18 revs guidance (51.56 )

  • Reports Q3 (Sep) earnings of CC$1.21 per share, excluding non-recurring items, CC$0.04 better than the S&P Capital IQ Consensus of CC$1.17; revenues rose 3.4% year/year to CC$3.77 bln vs the CC$3.78 bln S&P Capital IQ Consensus.
  • Revs growth was largely driven by Wireless service revenue growth of 5%. Growth in Wireless was a result of our balanced approach to continue monetizing the increasing demand for data along with a disciplined approach around subscriber base management. Wireless equipment revenue grew 11% this quarter driven by increased hardware upgrades.

FY 18 Guidance

  • Co increased guidance ranges for full-year 2018 consolidated adjusted EBITDA and free cash flow to 7-9% increase from 5-7% increase and 5-7% increase from 3-5% increase, respectively
07:05  RCKT Rocket Pharmaceuticals presents preclinical data from Leukocyte Adhesion Deficiency-I and Infantile Malignant Osteopetrosis lentiviral vector (LVV)-based gene therapy programs (19.34 )

  • RP-L201 is a LVV-based gene therapy for LAD-I that carries the ITGB2 gene that encodes the Beta-2 Integrin component CD18. CD18 is a key protein that facilitates leukocyte adhesion and enables their extravasation from blood vessels to combat infections. Comprehensive safety and efficacy preclinical studies of RP-L201 have shown stable engraftment and phenotypic correction in murine models, with restored neutrophil migration capability. Additional studies tested GMP-produced RP-L201 with transduction enhancers and demonstrated increased transduction of hematopoietic progenitor cells with reproducible drug product vector copy number (VCN) in the range of 2 to 4. No safety or toxicity issues were observed.
  • RP-L401 is a LVV-based gene therapy for IMO that carries the TCIRG1 gene. Mutations of the TCIRG1 gene result in ineffective osteoclast function and impaired bone resorption, a process essential for normal bone growth. Bone abnormalities in IMO result in abnormal growth, debilitating neurologic abnormalities, and bone marrow failure. The disorder is often fatal during early childhood. Preclinical studies of RP-L401 were conducted in a TCIRG1-mutated oc/oc mouse model in which the defect is fatal during the initial weeks of life. RP-L401 administered shortly after birth enabled long-term survival in a majority of treated animals, restoration of bone resorption, and reversal of the osteopetrotic phenotype.
07:04  IBKC IberiaBank beats by $0.06, reports revs in-line (75.30 )

  • Reports Q3 (Sep) earnings of $1.74 per share, $0.06 better than the S&P Capital IQ Consensus of $1.68; revenues rose 16.5% year/year to $312.3 mln vs the $311.77 mln S&P Capital IQ Consensus.
  • Co sees FY19 NIM of 3.60-3.70%
07:03  KBAL Kimball to acquire substantially all assets and assume certain specified limited liabilities of David Edward for $4.85 mln (15.94 )

David Edward is a premier designer and manufacturer of contract furniture, sold in the healthcare, corporate, education and premium hospitality markets. David Edward sells primarily in the North American and Middle Eastern markets. David Edward had annual revenues of approximately $15.0 million in their latest fiscal year ended September 2018. The company will be purchased for $4.85 million, subject to certain post-closing working capital adjustments. The co expects the business to be accretive to earnings per share in approximately 24 months and the return on investment to begin exceeding our cost of capital in approximately 36 months. Impact on Kimball International, Inc. profitability will be immaterial during this turnaround.
07:02  SLB Schlumberger beats by $0.01, reports revs in-line (58.43 )

  • Reports Q3 (Sep) earnings of $0.46 per share, $0.01 better than the S&P Capital IQ Consensus of $0.45; revenues rose 7.6% year/year to $8.5 bln vs the $8.57 bln S&P Capital IQ Consensus.
  • Drilling revenue of $2.4 billion, of which 72% came from the international markets, increased 9% sequentially driven by growth in IDS, M-I SWACO, and Drilling & Measurements.
07:02  REGN Regeneron Pharma & Sanofi (SNY) to present data from analyses of the Kevzara (sarilumab) Phase 3 clinical development program (395.22 )

A late-breaking poster presentation will discuss new post-hoc analyses from the positive Phase 3 MONARCH and MOBILITY RA trials, which have previously reportedresults showing Kevzara significantly improved efficacy over two commonly-used RA therapies. The new analyses show patients with high baseline levels of interleukin-6 (IL-6) had higher disease activity and joint damage at baseline and showed a greater response to Kevzara 200 mg compared to either methotrexate (MTX) alone or adalimumab than patients with low IL-6 levels. In the MOBILITY trial, patients with high IL-6 levels treated with Kevzara were more likely to demonstrate improvement in clinical signs and symptoms and had less joint damage according to radiographic assessment, versus those with high IL-6 levels treated with MTX alone.

  • In the MONARCH trial, patients with high IL-6 levels treated with Kevzara were more than 30 times as likely to achieve a measure of disease remission (disease activity score in 28 joints with an erythrocyte sedimentation rate less than 2.6) at week 24 compared to those treated with adalimumab (odds ratio 33.9 [unadjusted 95% CI 3.5, 328.7]). The incidence of treatment-emergent adverse events was similar in patients in the low, medium and high IL-6 groups. In Phase 3 clinical trials, the most common adverse reactions (incidence at least 2 percent) with Kevzara were neutropenia, increased ALT (a liver enzyme), injection site erythema, upper respiratory infections and urinary tract infections.
07:01  AVXL Anavex has received confirmation from the FDA that its IND is now open for ANAVEX2-73 for the treatment of Rett syndrome (2.47 )

 
07:01  BLRX BioLineRx announces top-line results from the dual combination arm of the Phase 2a COMBAT/KEYNOTE-202 study - 'demonstrated encouraging disease control and overall survival in patients with metastatic pancreatic cancer' (1.24 )

The results show encouraging disease control and extended overall survival, particularly in patients undergoing second-line treatment. The data, entitled, "A Phase 2a Trial to Assess the Safety and Efficacy of BL-8040 and Pembrolizumab in Patients with Metastatic Pancreatic Adenocarcinoma (PDAC)," will be presented on October 20, 2018 at 5:15 pm CET at the immuno-oncology poster discussion session co-chaired by the principal investigator of the study at the European Society for Medical Oncology 2018 Congress, which is being held October 19-23, in Munich, Germany.

  • The data show that the treatment regimen was safe and well tolerated. The disease control rate (patients exhibiting a response or stable disease) was 34.5% for the evaluable population (N=29), including 1 patient (3.4%) with a partial response showing a 40% reduction in tumor burden, as well as 9 patients (31%) with stable disease, with a median treatment time of 72 days (37-267). Median overall survival (OS) in all patients (N=37) was 3.3 months with a 6-month survival rate of 34.4%. A significant observation was made in the subpopulation of patients receiving the study drugs as a second-line treatment (N=17), where the median overall survival was 7.5 months, with a 6-month survival rate of 51.5%. This compares favorably with historical median overall survival data of 6.1 months for the only currently approved second-line PDAC treatment (a chemotherapy combination of Onivyde, 5-FU and leucovorin).
07:00  VFC V.F. Corp beats by $0.10, beats on revs; guides FY19 EPS above consensus, revs above consensus (87.09 )

  • Reports Q2 (Sep) earnings of $1.43 per share, excluding non-recurring items, $0.10 better than the S&P Capital IQ Consensus of $1.33; revenues rose 15.2% year/year to $3.91 bln vs the $3.87 bln S&P Capital IQ Consensus.
  • Co issues raised guidance for FY19, sees EPS of $3.65 from $3.52-3.57, excluding non-recurring items, vs. $3.63 S&P Capital IQ Consensus; sees FY19 revs of $13.7 bln from $13.6-13.7 bln vs. $13.71 bln S&P Capital IQ Consensus.
  • Quarterly dividend increased by 11% to $0.51/share.
07:00  SUMRX Asian Markets Close: Nikkei -0.6%, Hang Seng +0.4%, Shanghai +2.6%

Equity indices in the Asia-Pacific region ended the week on a mixed note. China reported slightly weaker than expected year-over-year growth (actual 6.5%; expected 6.6%) for the third quarter while several Chinese officials commented on plans to support capital markets. People's Bank of China Governor Yi Gang said the country's equity market valuation is at a historically low level and that recent weakness was caused by investor sentiment. China Banking and Insurance Regulatory Commission Chair Guo Shuqing said that financial markets will be 'pushed back' to a 'normal path' and that volatility is not in line with a healthy status. An official from China's National Bureau of Stats said that the Chinese economy is stable with 2018 GDP growth still expected to reach 6.5%.

  • In economic data:
    • China's September Industrial Production +5.8% year-over-year (expected 6.0%; last 6.1%), September Fixed Asset Investment +5.4% year-over-year (expected 5.3%; last 5.3%), and September Retail Sales +9.2% year-over-year (expected 9.0%; last 9.0%). Q3 GDP +1.6% quarter-over-quarter, as expected (last 1.8%); +6.5% year-over-year (expected 6.6%; last 6.7%). September Unemployment Rate 4.9% (last 5.0%)
    • Hong Kong's September Unemployment Rate 2.8% (last 2.8%)
    • Japan's September National CPI +1.0% month-over-month (last 0.9%); +1.2% year-over-year (last 1.3%). National Core CPI +1.0% year-over-year, as expected (last 0.9%)
    • New Zealand's September External Migration & Visitors +2.1% (last 5.4%)

---Equity Markets---

  • Japan's Nikkei lost 0.6%, falling 0.7% for the week. Marui Group, Yamaha Motor, Komatsu, Hitachi Construction, Daikin Industries, TDK, Isuzu Motors, Toho, and Suzuki Motor surrendered between 1.3% and 6.0%.
  • Hong Kong's Hang Seng gained 0.4%, narrowing this week's decline to 0.9%. Financials and property names were among the leaders with China Construction Bank, China Overseas, China Resources Land, Ping An Insurance, China Life Insurance, Sino Land, Citic Pacific, ICBC, Henderson Land, Bank of China, and BoC Hong Kong rising between 1.0% and 3.0%.
  • China's Shanghai Composite jumped 2.6%, trimming this week's loss to 2.2%. Liaoning Cheng Da, China Avionics, Hubei Jumpcan Pharmaceutical, Yonyou Network Technology, Shanghai Baosight Software, and Aisino gained between 6.9% and 10.0%.
  • India's Sensex fell 1.3% to record its sixth consecutive weekly decline. The index shed 0.2% for the week. Yes Bank slumped 6.0% while Housing Development Finance, Tata Motors, Hero MotoCorp, Infosys, AXIS Bank, IndusInd Bank, and HDFC Bank posted losses between 0.5% and 4.3%.

---FX---

  • USDJPY +0.2% to 112.37
  • USDCNY -0.1% to 6.932
  • USDINR -0.5% to 73.41
06:59  WIRES On The Wires

  • QIWI plc (QIWI) announced the launch of SOVEST multi-bank platform. SOVEST and AK Bars Bank, one of the top 20 Russian banks headquartered in Tatarstan, signed a partnership agreement in the course of the Annual Forum of Innovative Financial Technologies Finopolis 2018. Pursuant to this agreement, AK Bars Bank will become the first partner to join SOVEST multi-bank platform.
  • Alibaba Group Holding Limited (BABA) officially kicked off the 2018 11.11 Global Shopping Festival in China's capital, promising this year's mega-event will be the largest-ever in terms of scale and reach.
  • KT Corporation (KT) has won a key energy contract for a second time in Uzbekistan, further affirming the company's vision of becoming a global leader in information and communication technology (ICT). The 30 billion won contract will see smart energy meters installed in 360,000 households throughout Uzbekistan over the next two years
  • Stantec (STN) announced it has signed an agreement for the sale of its construction division, MWH Constructors, to funds managed by Oaktree Capital Management, L.P (OAK). The sale of MWH Constructors is inclusive of MWH Constructors' UK and US divisions and Slayden Constructors, Inc. MWH Constructors joined Stantec through the MWH acquisition in 2016. Subject to customary conditions, the sale is anticipated to close in the fourth quarter of 2018.
06:59  SXT Sensient reports EPS in-line, expects FY18 Adj-EPS to be slightly below prior range (76.76 )

  • Reports Q3 (Sep) earnings of $0.95 per share, excluding non-recurring items, in-line with the single analyst estimate of $0.95; revs were -3.1% y/y to $342.43 mln
  • The Company has a number of headwinds relative to last year's fourth quarter earnings per share, including a higher tax rate, higher interest expense, and higher corporate expense. The higher tax rate is due to non-recurring tax benefits that occurred in the fourth quarter of 2017, and the higher corporate expense relates to a reduction in performance based compensation in last year's fourth quarter. The Company also expects the impact of the recent acquisition to reduce fourth quarter earnings per share by approximately one cent. The total impact of these headwinds is approximately ten cents, or 12% of last year's adjusted earnings per share. Considering the impact of these items, the Company expects fourth quarter earnings per share to be down mid-single digits, in percentage terms, from last year's fourth quarter adjusted earnings per share result. As a result, the Company now expects that full year adjusted earnings per share will be slightly below the range previously provided [$3.60 and $3.70 vs. $3.63 CapIQ consensus estimate].
06:59  S&P futures vs fair value: +4.80. Nasdaq futures vs fair value: +30.00.

06:59  European Markets

FTSE...7035.88...+8.90...+0.10%.  DAX...11545.99...-43.20...-0.40%.
06:59  Asian Markets

Nikkei...22532...-126.10...-0.60%.  Hang Seng...25561...+106.90...+0.40%.
06:58  FXI Shanghai... +2.58%

 
06:46  IBKC IberiaBank increases quarterly dividend to $0.41/share from $0.39/share (75.30 )

 
06:42  HON Honeywell reports Q3 EPS beat, revs in-line; updates FY18 guidance to reflect operational performance and spin-offs (155.19 )

  • Co reports Q3 Adj-EPS of $2.03 vs. the $1.99 CapIQ consensus estimate, revs were +6.3% y/y to $10.76 bln vs. $10.75 bln CapIQ consensus estimate
  • The company revised its full-year guidance to reflect the strong operational performance in the first three quarters of 2018, the completion of the spin-off of Garrett Motion Inc. (GTX), which separated from Honeywell on October 1, and the expected completion of the spin-off of Resideo Technologies (REZI) on October 29.
    • Sees revs of $41.7-41.8 bln (Prior $43.1-43.6 bln) vs., and not comparable to the $43.09 bln CapIQ consensus estimate
    • Sees organic growth of ~6% (Prior 5-6%), sees segment margin expansion +50-60 bps to 19.5-19.6% (Prior 19.4-19.6%)
    • Sees Adj-EPS of $7.95-8.00 (Prior $8.10-8.20) vs., and not comparable to the $8.13 CapIQ consensus estimate. The new guidance range takes into account $0.27 of net earnings dilution from the separation of the Garrett and Resideo businesses, partially offset by a $0.07 increase to reflect the company's improved fourth-quarter outlook.
    • Sees Adj-FCF of $5.8-6.2 bln (Prior $5.6-6.2 bln)
06:34  CFG Citizens Financial Group beats by $0.03, reports revs in-line (34.92 )

  • Reports Q3 (Sep) earnings of $0.93 per share, excluding non-recurring items, $0.03 better than the S&P Capital IQ Consensus of $0.90; revenues rose 8.4% year/year to $1.56 bln vs the $1.56 bln S&P Capital IQ Consensus.
  • Efficiency ratio of 58.2% remained relatively stable, despite the 1.25% increase tied to the FAMC acquisition.
06:31  MINI Mobile Mini beats by $0.01, reports revs in-line (43.43 )

  • Reports Q3 (Sep) earnings of $0.42 per share, excluding non-recurring items, $0.01 better than the S&P Capital IQ Consensus of $0.41; revenues rose 9.6% year/year to $149.71 mln vs the $148.75 mln S&P Capital IQ Consensus.
  • "Rental revenues for our North American Storage Solutions segment grew 9.5% compared to the prior-year quarter and we believe that our seasonal business will be at similarly strong levels as last year. In our Tank & Pump Solutions business we have begun to see meaningful revenues generated on contracts that we won in late 2017 and early 2018 and we expect increased turnaround activity in the fourth quarter. The pipeline in North America looks healthy and economic indicators are positive, while activity in the U.K. is stable, with increases in rate offsetting a slight decrease in units on rent. For the full year 2018 we anticipate consolidated double-digit revenue growth as compared to 2017, outpacing our Evergreen model, leading to continued strong increases in adjusted EBITDA and free cash flow generation and a decreased leverage ratio."
06:31  SYF Synchrony Financial beats by $0.11 (29.64 )

  • Reports Q3 (Sep) earnings of $0.91 per share, $0.11 better than the S&P Capital IQ Consensus of $0.80.
06:20  SWI SolarWinds (NYSE) prices 25 mln share IPO at $15.00, the low-end of the reduced $15.00-16.00 range

 
06:19  NIU Niu Technologies (Nasdaq) prices downsized 7 mln share IPO (from 8.3 mln shares) at $9.00, the low-end of the reduced $9.00-10.00 range

 
06:18  LOGC LogicBio Therapeutics (Nasdaq) prices upsized 7 mln share IPO (from 5.77 mln shares) at $10.00, below the expected $12.00-14.00 range

 
06:14  RLH Red Lion Hotels CFO Douglas L. Ludwig tenders resignation effective immediately due to personal health reasons (12.60 )

The Company's Chief Accounting Officer, Mr. Nate Troup, will serve as Principal Financial Officer while the Company conducts its search for a replacement.
06:14  MUFG Mitsubishi Financial to acquire Intrepid Investment Bankers; terms not disclosed (6.05 )

Intrepid Investment Bankers is a leading Los Angeles-based regional middle market investment banking firm.
06:13  DWDP DowDuPont issues statement responding to market activity -- impairment charge has no impact on previously announced financial guidance for Agriculture Division (58.58 )

In response to market activity following the disclosure of a goodwill impairment related to DuPont's agriculture business, DowDuPont stated that the impairment is non-cash, reflects the effect of previously reported market conditions, and has no impact on its previously announced financial guidance for the Agriculture Division of DowDuPont for the full-year 2018. The Company previously announced that it expects 2018 full-year results for its Agriculture Division to reflect flat net sales and a mid-single digits percent increase in operating EBITDA.
06:11  JOE St. Joe Company provides additional update on WindMark Beach Town Center and timberland properties (14.91 )

The WindMark Beach Town Center, located in Gulf County, sustained minimal effects from the storm. The buildings in WindMark Beach Town Center are in good condition and are open for business with power and water restored to the community. Similar to its asset portfolio in Walton and Bay Counties, St. Joe has experienced an increase in interest as to the availability of leasable space within the Town Center for businesses looking to relocate due to effects of the storm.

  • An initial assessment of St. Joe's timber operations revealed an approximate 3% loss of total timber assets, primarily located in eastern Bay County and the Port St. Joe area. Approximately 234,000 tons of timber were affected and will be salvaged or lost. The majority of St. Joe's other timberlands, have little to no damage.
06:11  HMN Horace Mann estimates Q3 weather-related catastrophe losses will total $31-$34 mln on a pre-tax basis (39.69 )

Significant events included Hurricane Florence in the Carolinas, a major hailstorm in Colorado, and the Carr Wildfire in California. The catastrophe loss estimate would represent approximately 18 to 20 percentage points on the company's third quarter 2018 combined ratio, or approximately $0.59 to $0.64 per diluted share after tax. "Our underlying Property and Casualty results remain in line with our guidance and we will update our full-year outlook on our third-quarter conference call"
06:09  NINE Nine Energy Service prices private offering of $400 mln in aggregate principal amount of 8.75% senior unsecured notes due 2023 at par (38.25 )

 
06:08  IHG Intercontinental Hotels Group reports global Q3 comparable RevPAR up 1.0% (55.37 )

  • 5.1% YOY net system size growth, up 4.6% excluding Regent Hotels & Resorts and the UK portfolio deal.
  • 27k rooms signed, 19k rooms opened (up 70% YOY) strongest Q3 pace for each in 10 years
  • Global Q3 comparable RevPAR up 1.0%, with Q3 YTD RevPAR up 2.7%.
  • Net system size up 5.1% year on year to 826k rooms (5,518 hotels), up 4.6% excluding Regent Hotels & Resorts and the UK portfolio deal.
06:07  EEFT Euronet beats by $0.06, reports revs in-line; guides Q4 EPS in-line (112.69 )

  • Reports Q3 (Sep) earnings of $2.16 per share, excluding non-recurring items, $0.06 better than the S&P Capital IQ Consensus of $2.10; revenues rose 12.0% year/year to $714.5 mln vs the $714.8 mln S&P Capital IQ Consensus.
  • Transactions of 1.02 billion, a 10% increase from 931 million.
  • Co issues in-line guidance for Q4, sees EPS of ~$1.27, excluding non-recurring items, vs. $1.27 S&P Capital IQ Consensus.
06:07  SUMRX Overnight Summary -- Mixed markets but China outperforms

  • The global equity markets are on the mixed side of things today as macro concerns continue to get in the way of buying conviction.  The S&P futures are currently up two points at 2774.25, leaving them roughly 0.1% above fair value.  They had been up as many as 13 points overnight, however, and lost steam as European markets lost steam.
  • Relatively speaking, Asian markets did much better than expected Friday in the wake of Wall Street's poor showing on Thursday and a weaker than expected Q3 GDP report from China.  China's GDP was up 6.5% year-over-year, which was down from 6.7% in the second quarter and the slowest growth rate since the financial crisis.  The soft GDP report corroborated concerns about the unfolding economic weakness in China, yet negative sentiment in the stock market was mitigated by news that Chinese regulators are aiming to get financial institutions to stem liquidity risk tied to buying stocks on margin.  The Shanghai Composite jumped 2.6%.
  • The major EU bourses have been unable to hold a positive bias, having been undercut by disappointing earnings news from a batch of companies and festering concerns surrounding the budget stand-off between Italy and the EU.  The 10-yr Italian note yield is up seven basis points to 3.75%, which is a four-year-high; meanwhile, the 10-yr German bund is down two basis points to 0.40% in a safe-haven trade.

Market Updates

  • S&P Futures vs Fair Value: +3.0
  • 10 yr Note: 3.17%
  • USD/JPY: 112.36  +0.17
  • EUR/USD: 1.1462  +0.0009
  • Europe: FTSE  unch  DAX  -0.6%  CAC  -1.0%
  • Asia: Hang Seng  +0.4% Shanghai  +2.6% Nikkei -0.6%
  • Gold (1231.40 +1.30) Silver (14.64 +0.03) Crude (68.90 +0.25)
06:04  STI SunTrust Banks beats on the bottom line, misses on revs (61.49 )

  • Reports Q3 (Sep) earnings of $1.56 per share, excluding non-recurring items, $0.17 better than the S&P Capital IQ Consensus of $1.39; revenues fell 0.8% year/year to $2.29 bln vs the $2.35 bln S&P Capital IQ Consensus.
  • The current quarter included $0.14 per average common share of discrete tax benefits.  If you exclude this, EPS would be $1.42 or a $0.03 beat.
06:02  CLVS Clovis Oncology announces initial data from its ongoing Phase 2 TRITON2 clinical trial of Rubraca -- 44% confirmed objective response rate reported in 25 RECIST-evaluable patients with a BRCA1/2 alteration (29.96 )

The data show a 44% confirmed objective response rate (ORR) by investigator assessment in 25 RECIST /PCWG3 response-evaluable patients with a BRCA1/2 alteration. The median duration of response in these patients has not yet been reached. In addition, a 51% confirmed prostate specific antigen (PSA) response rate was observed in 45 PSA response-evaluable patients with a BRCA1/2 alteration.

  • As of the visit cut-off date of June 29, 2018, 85 patients were treated with Rubraca; the overall median treatment duration was 3.7 (range, 0.5--12.9) months and median follow up was 5.7 (range, 2.6--16.4) months. The median treatment duration in patients with a BRCA1/2 alteration was 4.4 months (range, 0.5-12.0 months). Forty-six patients (54.1%) were evaluable for RECIST/PCWG3 response, including 25 patients with a BRCA1/2 alteration. By investigator-assessed RECIST/PCWG3, the confirmed ORR in patients with a BRCA1/2 alteration treated with Rubraca was 44.0% (11/25). Among the 45 evaluable patients with a BRCA1/2 alteration, 51.1% (23/45) had a confirmed PSA response (95% CI, 35.8--66.3).
  • Overall, the most common treatment-emergent adverse events (TEAEs) of any grade (CTCAE Grade 1-4) in all patients regardless of causality included asthenia/fatigue (44.7%, or 38/85), nausea (42.4%, or 36/85), anemia/decreased hemoglobin (22.4%, or 19/85) and constipation (28.2%, or 24/85). Five patients (5.9%) discontinued therapy due to a non-progression TEAE. One patient died due to disease progression.
06:01  MACK Merrimack Pharma discontinues Phase 2 Sherloc study of MM-121 in patients with non-small cell lung cancer due to futility (5.16 )

  • This decision was made in agreement with the Chair of the independent Data Safety Monitoring Board following an interim analysis that was triggered by the occurrence of 75% of events required for trial completion. In total, 88% (67/76) of required events were captured in this analysis, and while the safety profile was consistent with MM-121's previously reported safety profile, the data demonstrated that the addition of MM-121 to docetaxel did not improve PFS over docetaxel alone in this patient population. Since futility was observed, the decision has been made to terminate the study.
06:01  IDRA Idera Pharma presents data from the ongoing ILLUMINATE-204 trial investigating tilsotolimod in combination with ipilimumab (8.50 )

The new analyses address the potential of intramural tilsotolimod to induce an antitumor response in combination with ipilimumab in injected tumors as well as uninjected tumors via an abscopal effect. As previously reported the overall response rate (ORR, by RECIST 1.1) for these 21 patients was 39%. Notably, in 7 of the 8 responders tumor shrinkage was observed in both the injected and uninjected tumors. Tumor shrinkage at uninjected lesions was observed in an additional four patients who had not met the criteria for RECIST v.1.1 response status as of this analysis.

  • Clinical responses were seen in patients whose HLA-ABC RNA (MHC class I) expression is low at baseline. Rodig and colleagues1 have recently shown that robust MHC class I expression is required for anti-CTLA-4 activity. Our findings suggest that combining tilsotolimod with ipilimumab may overcome this resistance mechanism, and therefore, enhance clinical activity and increase the overall response rate compared to that expected with ipilimumab monotherapy.
  • The ILLUMINATE-204 trial is enrolling two distinct patient populations, both patients who are nave to ipilimumab therapy (N=40; Primary Efficacy Endpoint Population) and patients who have prior ipilimumab experience (N=Up to 20; Secondary Efficacy Endpoint Population). Of the initial 21 patients available for efficacy evaluations 6 of 17 patients from the Primary Efficacy Endpoint Population and 2 of 4 patients from the Secondary Efficacy Endpoint Population achieved RECIST v.1.1 responses, further demonstrating a signal that tilsotolimod has the potential to help overcome prior ipilimumab resistance.
06:00  NVS Novartis AG announces presentation of new Lutathera NETTER-1 data at ESMO demonstrating significant improvement in PFS regardless of baseline liver tumor burden (86.24 )

  • Co announced presentation of a new analysis of Lutathera NETTER-1 data at the 2018 European Society for Medical Oncology congress examining the impact of Lutathera treatment on patients with low, medium or high liver tumor burden.
  • The data show that Lutathera treatment results in significant improvement in progression free survival (PFS) regardless of the extent of baseline liver tumor burden (LTB), elevated alkaline phosphatase (ALP) liver enzyme or presence of large (>30mm diameter) lesion in patients with progressive midgut neuroendocrine tumors (NETs) compared to octreotide LAR alone.
18:15  SXT Sensient increases quarterly dividend to $0.36/share from $0.33/share (76.76 -1.06)

 
18:04  KRYS Krystal Biotech prices offering of 3.0 mln shares of common stock at a public offering price of $20.00/share (20.66 -0.75)

 
18:03  INAP InterNAP earlier disclosed updated guidance in for the three months ended September 30, 2018 in a regulatory filing

Says co, "We estimate that our total revenues will be in the range of $82.7 million to $83.0 million, our net loss attributable to INAP shareholders will be in the range of $(15.2) million to $(14.8) million and our Adjusted EBITDA will be in the range of $29.1 million to $29.5 million for the three months ended September 30, 2018. Based upon these preliminary results, we believe that our total revenues and Adjusted EBITDA will have grown sequentially in the most recent quarter when compared to the results from the prior quarter ended June 30, 2018."
17:59  CMA Comerica disclosed in filing entrance into accelerated share repurchase program to repurchase $500 mln of common stock (83.55 -1.53)

 
17:45  SHPG Shire plc announces that FDA Gastrointestinal Drugs Advisory Committee voted unanimously to recommend approval of NDA of Shire's Prucalopride (SHP555) for chronic idopathic constipation (176.98 -0.38)

  • The advisory committee also voted unanimously (10 to 0) that the potential risk of cardiovascular adverse events with the use of prucalopride in adults with CIC has been adequately addressed by Shire. 
  • The FDA will take the advisory committee's recommendation into consideration when the agency makes a final determination. The PDUFA action date for prucalopride is December 21, 2018.
17:38  MPVD Mountain Province Diamonds announces results of eighth diamond sale of 2018; total proceeds from the sale were $24.2 mln from 366,505 carats at an average realized value of $66 per carat (1.83 -0.35)

 
17:19  WAL Western Alliance Bancorp beats by $0.02 (53.53 -0.97)

  • Reports Q3 (Sep) earnings of $1.05 per share, $0.02 better than the S&P Capital IQ Consensus of $1.03.
17:15  MSM MSC Industrial increases quarterly cash dividend to $0.63/share from $0.58/share (81.49 -1.72)

 
17:13  DRQ Dril-Quip enters into FEED contract and frame agreement for Sea Lion project subsea production systems (45.66 -1.30)

Co has entered into a Front End Engineering and Design (FEED) Contract and Frame Agreement with Premier Oil Exploration and Production Limited to provide the subsea production systems for the Sea Lion Phase 1 Development located offshore the Falkland Islands. The Frame Agreement replaces the previously announced letter of intent. The current estimated value of the equipment portion of the scope of work is $207 million which includes plans for up to 30 subsea production systems, including wellheads, horizontal trees, tubing hangers, control systems, associated production and injection manifolds and subsea umbilicals.
17:11  EGP EastGroup beats by $0.03, reports revs in-line; guides Q4 FFO above consensus (93.24 -0.23)

  • Reports Q3 (Sep) funds from operations of $1.17 per share, $0.03 better than the S&P Capital IQ Consensus of $1.14; revenues rose 9.6% year/year to $75.3 mln vs the $74.65 mln S&P Capital IQ Consensus.
  • Co issues upside guidance for Q4, sees FFO of $1.17-1.19 vs. $1.16 S&P Capital IQ Consensus.
17:10  ISRG Intuitive Surgical on Conference Call- Raises FY18 Procedure Growth guidance to 17-18% from 14.5-16.5% (522.29 -20.62)

 
17:08  VLO Valero Energy and Valero Energy Partners LP (VLP) announce definitive cash merger agreement valued at approx. $950 mln (103.39 -0.35)

Valero Energy Corporation and Valero Energy Partners LP (VLP) announced the execution of a definitive agreement and plan of merger pursuant to which Valero Energy Corporation will acquire, for cash, all of the outstanding publicly held common units of VLP at a price of $42.25 per common unit, for an aggregate transaction value of approx. $950 mln. The transaction price represents an approximate 12.4% premium to the 30 trading-day volume weighted average price of VLP's common units as of October 17, 2018.
17:02  TOL Toll Brothers announces departure of co-founder Robert I. Toll from Executive Chairman role, effective October 31; CEO Douglas C. Yearley, Jr. to assume position of Chairman of the Board (31.30 +0.11)

  • Mr. Toll, age 77, will remain a member of the Board of Directors, will serve as a special advisor to the company, and, effective November 1, will be honored with the lifetime title of Chairman Emeritus of the Board.
  • In connection with Mr. Toll's transition, the Board has elected Mr. Douglas C. Yearley, Jr., age 58, the company's CEO and a member of the Board of Directors, to the position of Chairman of the Board.
17:02  XOG Extraction Oil & Gas updates FY18 Production Outlook; Provides initial look at FY19 production (10.48 -0.33)

  • Estimated third-quarter 2018 average net sales volumes of 75.7 thousand barrels of oil equivalent per day (MBoe/d) including 39.3 thousand barrels per day (MBbl/d) of crude oil;
  • Updated full-year 2018 production guidance to 74.0 -- 75.0 MBoe/d, including 39.0 -- 40.0 MBbl/d of crude oil, which represents 44% total equivalent production growth and 50% crude oil production growth year-over-year;
  • Maintains its previously disclosed full-year 2018 capital expenditure guidance range of $890 -- $990 million, including $770 -- $840 million of drilling and completion (D&C) capital;
  • Preliminary forecasted 2019 annual crude oil production growth of approximately 15% and a D&C capital expenditure program of $650 - $700 million, which is expected to generate free cash flow for the year.
16:57  DWDP DowDuPont discloses $4.6 bln impairment charge in regulatory filing (58.58 -0.99)

  • "On October 12, 2018, E. I. du Pont de Nemours [...] concluded that non-cash impairment charges are required under generally accepted accounting principles of the United States, in the quarter ended September 30, 2018 of about $4.6 billion for goodwill and other assets associated with its agriculture reporting unit. No portion of the impairment charges relates to future cash expenditures."
  • The company expects to record after-tax, non-cash impairment charges of about $4.5 bln for goodwill and $0.1 bln for certain indefinite-lived assets associated with its agriculture reporting unit.
16:54  ETFC E*TRADE beats by $0.17, beats on revs (48.92 -1.65)

  • Reports Q3 (Sep) GAAP earnings of $1.00 per share, including a $0.12 benefit from provision for loan losses and other items, $0.17 better than the S&P Capital IQ Consensus of $0.83; revenues rose 20.2% year/year to $720 mln vs the $710.62 mln S&P Capital IQ Consensus. 
  • Customer margin balances of $11.2 billion, a Company record; Net new brokerage accounts of 67,000 Company also announced that its Board of Directors approved the launch of a new $1 billion share repurchase program. a net benefit of $30 million, or 
16:50  GPOR Gulfport Energy Q3 pricing; production +7% Q/Q and 19% Y/Y (10.61 -0.37)

  • Realized natural gas price for the third quarter of 2018, before the impact of derivatives and including transportation costs, averaged $2.32 per Mcf, a $0.58 per Mcf differential to the average trade month NYMEX settled price.
  • Realized oil price for the third quarter of 2018, before the impact of derivatives and including transportation costs, averaged $68.73 per barrel, a $0.77 per barrel differential to the average WTI oil price.
  • Realized natural gas liquids price for the third quarter of 2018, before the impact of derivatives and including transportation costs, averaged $0.74 per gallon, equivalent to $31.18 per barrel, or ~45% of the average WTI oil price.
16:49  ARGO Argo Group announces preliminary pre-tax catastrophe loss estimate during the 2018 third quarter of approx. $25 mln (60.49 +0.10)

  • Catastrophe losses are related primarily to Hurricane Florence, Typhoon Jebi, and other catastrophe and weather-related events that transpired during the third quarter.
  • CEO Mark E. Watson III commented, "As we indicated following the catastrophe loss events in 2017, we restructured our reinsurance program for 2018 to incorporate a single retention that combined the reinsurance portfolios for Argo and the acquired Ariel Re, and we strategically increased our use of third-party capital. Our loss results for the third quarter of 2018 reflect these actions."
16:47  CAL Caleres acquires Vionic Group for $360 mln (33.26 -0.82)

  • The acquisition of Vionic allows Caleres to expand its brand portfolio and gives it additional access to the growing contemporary comfort footwear category. 
  • Vionic's trailing 12-month sales of approx. $180 mln reflect a compounded annual growth rate of more than 20% over the past six years. The brand derived approx. 25% of sales via e-commerce sites over the past 12 months while international sales contributed approximately 8% to total sales. 
  • The acquisition of Vionic Group is being funded through the company's revolving credit agreement.
16:43  CNXN PC Connection sees Q3 results below consensus (37.46 -0.36)

  • Co issues downside guidance for Q3 (Sep), sees EPS of $0.49-0.51 vs. $0.67 S&P Capital IQ Consensus; sees Q3 (Sep) revs of $657-659 mln vs. $701.42 mln S&P Capital IQ Consensus. 
  • "In the quarter, we experienced a seasonally strong July and August consistent with our expectations. However, towards the end of September, we experienced lower than expected growth mainly from both our small- to medium-sized customers and our federal customers attributable to supply shortages, weakness in the healthcare sector and timing of shipments to customers. Going forward we remain focused on driving advanced technology solutions, maintaining a strong balance sheet, and improving operational efficiencies."
16:43  PNW Pinnacle West raises quarterly dividend to $0.7375/share from $0.695/share (83.48 -0.21)

 
16:42  LHO LaSalle Hotel issues upside Adj. FFO guidance for 3Q18; Entered into agreement to be acquired by Pebblebrook Hotel Trust on Sept. 6 (31.62 -0.42)

  • Co issues upside guidance for 3Q18, sees Adj. FFO of $0.73-$0.74 vs. the $0.68 Capital IQ consensus. The company did not previously provide an outlook for the third quarter 2018. 
  • As previously announced, the company will report its final financial results for the third quarter 2018 on Thursday, November 1, 2018 after the market closes. Given the pending transaction with Pebblebrook Hotel Trust (PEB), the company will not host an investor conference call this quarter.
  • LHO entered agreement to be acquired by PEB on Sept. 6. Under the terms of the Pebblebrook-LaSalle Agreement, for each LH common share owned, each LHO shareholder will receive either a fixed amount of $37.80 in cash or a fixed exchange ratio of 0.92 PEB common share.
16:41  RE Everest Re announces preliminary pre-tax catastrophe loss estimate for the third quarter of $240 mln, net of reinsurrance; comments on third quarter outlook (211.12 -4.89)

  • The estimate includes third quarter 2018 losses from Hurricane Florence, California wildfires, Typhoon Jebi, Typhoon Trami, and Japan floods.
  • Says CEO Dom Addesso, "Our thoughts are with those affected by these devastating catastrophe events. Everest's priority is supporting the needs of our clients and business partners; delivering when it matters most. Due to our diversified Reinsurance and Insurance portfolios, we expect to report a breakeven underwriting result and an operating profit for the third quarter."
16:39  SREV ServiceSource Intl lowers Q3, FY18 revenue outlook (2.61 -0.07)

  • Co issues downside guidance for Q3 (Sep), sees Q3 (Sep) revs of $57 mln vs. $60.52 mln S&P Capital IQ Consensus.
  • Co issues downside guidance for FY18 (Dec), sees FY18 (Dec) revs of $238-240 mln vs. $247.91 mln S&P Capital IQ Consensus. The Company anticipates a meaningful portion of the revenue delta compared to expectations to flow through the P&L. ServiceSource intends to provide updated full fiscal 2018 guidance when it reports completed financial results for the third quarter 2018 on November 7, 2018, after market close.
  • "While our forecasts for new logo ramps and install base growth were generally in line across our portfolio, as we closed the quarter we experienced unexpected churn and softer end-user demand at several clients. The impact of these factors offsets the positive progression we experienced across the remainder of our business and alters our view for the balance of the year... "As some of our clients adapt their go-to-market models and customer engagement strategies, in select cases their businesses are exposed to greater near-term volatility that impacts our forecasting. We are implementing specific actions in response to these challenges and other catalysts give us reason for sustained optimism. In recent months we have attracted three new executive leaders to further advance the Company, we have signed 12 new logos year-to-date, client net promoter scores continue to improve, and we have a strong balance sheet and liquidity profile
16:37  MYL Mylan N.V. announces U.S. launch of generic Depo-Provera injection (32.42 -0.60)

Mylan N.V. today announced the U.S. launch of Medroxyprogesterone Acetate Injectable (MPA) Suspension USP, 150 mg/mL Single-Dose Vial, a generic version of the brand drug, Pfizer's (PFE) Depo-Provera, following the FDA approval of the product's ANDA. U.S. sales for MPA were approx. $181 mln for the 12 months ending July 31, 2018, according to IQVIA.
16:36  AIG American Intl reports Q3 pre-tax catastrophe losses, net of reinsurance, of ~$1.5 to $1.7 billion (48.61 -1.01)

Co expects to report third quarter 2018 pre-tax catastrophe losses, net of reinsurance, of ~$1.5 to $1.7 billion. These losses are largely associated with multiple events in Japan, including Typhoons Jebi and Trami, as well as Hurricane Florence and revisions to our loss estimates on the California mudslides. As a result, AIG expects pre-tax catastrophe losses, net of reinsurance, resulting from multiple events in Japan and Asia to be ~$900 million to $1 billion and pre-tax catastrophe losses, net of reinsurance, resulting from events in North America to be ~$600 to $700 million, respectively. In addition, initial pre-tax loss estimates for Hurricane Michael, net of reinsurance, are ~$300 to $500 million, which will be included in fourth quarter 2018 operating results. Catastrophe loss estimates include expected losses for Validus Holdings, Ltd. and its affiliates. AIG estimates that it has exhausted ~$700 million of the $750 million retention under its North America aggregate catastrophe reinsurance program following the California mudslides, Hurricane Florence and assuming the high end of the loss estimate range for Hurricane Michael.
16:34  MU Micron announces intent to exercise right to call Intel's (INTC) interest in the parties' IM Flash Technologies joint venture for $1.5 bln (41.30 -1.05)

  • Micron can exercise the call option to acquire the remaining interest in the joint venture starting January 1, 2019. The timeline to close the transaction is between 6-12 months after the date Micron exercises the call.
  • The IM Flash joint venture is already consolidated in Micron's reported financial statements. Micron anticipates no meaningful impact to overall financial results or changes to its Fiscal 2019 capital expenditures and long-term capital expenditure target.
  • At the time of close, Micron expects to pay approx. $1.5 bln in cash for the transaction, dissolving Intel's non-controlling interest in IM Flash as well as IM Flash member debt, which was approx. $1 bln as of August 30.
  • In July 2018, Micron and Intel agreed to conclude their joint development of 3D XPoint technology after the completion of the second-generation node, which is expected to occur in the second half of Fiscal 2019.
16:34  CE Celanese beats by $0.22, misses on revs; guides FY18 EPS above consensus (97.18 -2.57)

  • Reports Q3 (Sep) earnings of $2.96 per share, excluding non-recurring items, $0.22 better than the S&P Capital IQ Consensus of $2.74; revenues rose 13.1% year/year to $1.77 bln vs the $1.81 bln S&P Capital IQ Consensus.
  • Co issues upside guidance for FY18, sees EPS of $10.90-11.10, excluding non-recurring items, vs. $10.78 S&P Capital IQ Consensus.
  • Co says its earnings performance these past several quarters underline a sustainable upward shift in the earnings levels of both the Acetyl Chain and Engineered Materials as they each move toward becoming enterprises with $1 bln in adjusted EBIT by 2020.
16:29  INAP InterNAP announces proposed underwritten public offering of common stock; size not disclosed (11.04 -0.77)

 
16:27  CBS CBS names Christina Spade CFO, CBS Corporation, effective immediately (56.17 +0.31)

Spade has served as EVP, Chief Financial Officer and Strategy for Showtime Networks Inc. since February 2013 and has served in many different capacities during her 22 years with the company, including programming finance leadership and as a key steward of the successful implementation of various financial, operational, and reporting systems.
16:24  WRAPX Closing Market Summary: Stocks Slide Amid Global Growth Concerns

The S&P 500 fell for the ninth time in the last 11 sessions on Thursday, losing 1.4%, as concerning global developments dampened buying interest. The benchmark index opened just modestly lower, but started extending losses soon thereafter. However, the S&P 500 did close a hair above its 200-day moving average (2768.02), a silver lining on a day hard-pressed for good news.

As for the other major averages, the Dow Jones Industrial Average lost 1.3%, the Nasdaq Composite lost 2.1%, and the Russell 2000 lost 1.8%.

The stock market opened slightly lower after disappointing news overseas. China's Shanghai Composite tumbled 2.9%, extending its yearly loss to nearly 25% and touching a four-year low, amid investor concerns over slowing economic growth. In addition, Japan's Nikkei fell 0.8% after the country reported its first year-over-year export decline (-2.1%) since November 2016. Meanwhile, burgeoning angst that the Italian budget situation could get nasty and upset global financial markets sent European indices lower. 

Back to the home front, U.S. Treasury Secretary Steven Mnuchin added to the uncertainty when he announced that he would be pulling out of next week's Future Investment Initiative conference in Saudi Arabia. The decision comes as investigators seek answers over the disappearance and alleged murder of dissident Saudi journalist and Washington Post columnist Jamal Khashoggi.

In equities, the growth-stocks in the information technology (-2.0%) and consumer discretionary (-2.1%) sectors that have led this mature bull market did not provide any support on Thursday. The information technology sector relinquished its lead as the best-performing S&P 500 group year-to-date to health care, which was down 1.1% on Thursday. For comparison, the tech sector is still up 11.1% on the year, while health care is up 11.8%. The S&P 500 is higher by 3.6%.

Also, the industrials sector (-1.8%) was another notable laggard following some discouraging earnings and guidance. United Rentals (URI, 118.13, -1.30, -1.0%) topped third quarter expectations but lowered its free cash flow guidance. Meanwhile, Snap-On (SNA 151.47, -16.10, -9.6%) came up shy of third quarter revenue estimates, and Textron (TXT 57.49, -7.29, -11.3%) fell well short of third quarter earnings and revenue estimates.

In other corporate news, Dow component Travelers (TRV 125.14, -1.30) fell 1.0% despite reporting better-than-expected profits for the third quarter; Netflix (NFLX 346.71, -17.99) fumbled 4.9% after an NBC News report showed that the WSJ is investigating the company's corporate culture; and Philip Morris International (PM 87.52, +2.96, +3.5%) was one of the best-performing S&P 500 components after reporting upbeat third quarter results and reaffirming its guidance for the fiscal year.

Separately, Treasuries reclaimed their early losses amid Thursday's equity slide with the 2-yr yield and 10-yr yield settling unchanged at 2.88% and 3.18%, respectively. The 2-yr yield had climbed three basis points to 2.91%, briefly touching a 10-yr high in early morning trading. On a related note, the U.S. Dollar Index rose 0.4% to 95.69.

In energy, WTI crude extended Wednesday's slide, settling 1.4% lower at $68.71/bbl, marking a one-month low. The oil-sensitive energy sector closed 0.5% lower.

Reviewing Thursday's economic data, which included the weekly Initial Claims report, the Philadelphia Fed Index for October, and the Conference Board's Leading Economic Index for September:

  • Initial claims for the week ending October 13 dropped by 5,000 to 210,000 (Briefing.com consensus 212,000). Continuing claims for the week ending October 6 decreased by 13,000 to 1.640 million, which is the lowest level since August 4, 1973.
    • The key takeaway from the report is that it covered the week in which the survey for the October employment report was conducted. Accordingly, with the low level of initial claims, economists will have a basis to forecast another solid increase in nonfarm payrolls.
  • The Philadelphia Fed Index eased to 22.2 in October (Briefing.com consensus 20.0) from 22.9 in September. The dividing line between expansion and contraction for this regional manufacturing survey is 0.0.
    • The key takeaway from this report is that manufacturers remain optimistic about the outlook, as 48% of respondents expect business activity to increase over the next six months versus only 14% that expect declines.
  • The Conference Board's Leading Economic Index increased 0.5% in September (Briefing.com consensus +0.5%) after increasing an unrevised 0.4% in August.
    • The key takeaway from the report is that there was widespread strength in the basket of leading indicators. The strongest contribution came from average consumer expectations for business conditions (+0.14 percentage points), which should be constructive for consumer spending activity.

On Friday, investors will receive the Existing Home Sales report for September.

  • Nasdaq Composite +8.4% YTD
  • S&P 500 +3.6% YTD
  • Dow Jones Industrial Average +2.7% YTD
  • Russell 2000 +1.6% YTD
16:23  PYPL PayPal beats by $0.04, reports revs in-line; guides Q4 in-line (raises FY18 outlook) (77.48 -2.61)

  • Reports Q3 (Sep) earnings of $0.58 per share, $0.04 better than the S&P Capital IQ Consensus of $0.54; revenues rose 13.7% year/year to $3.68 bln vs the $3.66 bln S&P Capital IQ Consensus.
  • PayPal processed $143 billion in TPV in the third quarter, representing growth of 24%, or 25% on an FX-neutral basis (in-line). Merchant Services TPV grew 28% on an FX-neutral basis. eBay Marketplaces volume grew 3% on an FX-neutral basis, and represented 11% of overall TPV for the quarter versus ~13% a year ago. Person-to-Person (P2P) volume grew 50% to more than $36 billion, and represented ~25% of TPV in the third quarter. 9.1 million active accounts added versus an increase of 8.2 million in Q3 2017, and ended the quarter with 254 million active accounts, up 15% Strong mobile engagement on PayPal's platform contributed to ~$57 billion in mobile payment volume, growing ~45%. In the third quarter, mobile payment volume represented 40% of overall TPV. Venmo, the company's social payments platform, processed ~$17 billion of TPV in the third quarter (slightly above), growing 78%. 
  • Co issues in-line guidance for Q4, sees EPS of $0.65-0.67 vs. $0.65 S&P Capital IQ Consensus; sees Q4 revs of $4.195-4.275 bln vs. $4.21 bln S&P Capital IQ Consensus.
  • Raises FY18 EPS to $2.38-2.40 from $2.32-2.35, rev to $15.42-15.50 from $15.3-15.5 bln.
  • Amex (AXP) Card members will have the ability to use membership rewards points for purchases; send peer-to-peer payments via Venmo and Paypal directly from the Amex mobile app
16:19  FFBC First Financial beats by $0.01, reports revs in-line (27.42 -0.74)

  • Reports Q3 (Sep) earnings of $0.58 per share, excluding non-recurring items, $0.01 better than the S&P Capital IQ Consensus of $0.57; revenues rose 63.6% year/year to $152.8 mln vs the $151.74 mln S&P Capital IQ Consensus
  • Co's strong earnings for the quarter led to further strengthening of its capital ratios with tangible common equity increasing to 8.53% and tangible book value per share increasing to $11.25
16:18  NTRA Natera and Neon Therapeutics (NTGN) announce research collaboration to assess treatment response to personal cancer vaccine (21.40 +0.07)

The two companies announced a research collaboration that will use Natera's Signatera (RUO) circulating tumor DNA assay as a biomarker to assess treatment response to NEO-PV-01 in Neon Therapeutics' NT-002 clinical trial.
16:17  ASB Assoc Banc-Corp misses by $0.01 (24.48 -0.84)

  • Reports Q3 (Sep) earnings of $0.48 per share, $0.01 worse than the S&P Capital IQ Consensus of $0.49.
16:16  EXPO Exponent beats by $0.03, reports revs in-line (47.32 -1.15)

  • Reports Q3 (Sep) earnings of $0.32 per share, $0.03 better than the S&P Capital IQ Consensus of $0.29; revenues rose 7.7% year/year to $88.71 mln vs the $88.52 mln S&P Capital IQ Consensus.
  • For Q4, co sees yr/yr rev growth in the mid-single digits
16:15  FFIN First Financial beats by $0.02, reports revs in-line (56.90 -1.13)

  • Reports Q3 (Sep) earnings of $0.59 per share, $0.02 better than the S&P Capital IQ Consensus of $0.57; revenues rose 14.9% year/year to $96.48 mln vs the $97.34 mln S&P Capital IQ Consensus.
16:14  TEAM Atlassian beats by $0.01, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY19 EPS in-line, revs above consensus (81.89 -1.74)

  • Reports Q1 (Sep) earnings of $0.20 per share, excluding non-recurring items, $0.01 better than the S&P Capital IQ Consensus of $0.19; revenues rose 36.7% year/year to $267.3 mln vs the $259.67 mln S&P Capital IQ Consensus. Atlassian ended the first quarter of fiscal 2019 with a total customer count, on an active subscription or maintenance agreement basis, of 131,684, having added 5,888 net new customers during the quarter.
  • Co issues guidance for Q2, sees EPS of $0.21, excluding non-recurring items, vs. $0.20 S&P Capital IQ Consensus; sees Q2 revs of $287-289 vs. $283.73 mln S&P Capital IQ Consensus.
  • Co issues guidance for FY19, sees EPS of $0.78 from $0.77, excluding non-recurring items, vs. $0.77 S&P Capital IQ Consensus; raises FY19 revs to $1.175-1.183 bln from $1.146-1.154 bln vs. $1.16 bln S&P Capital IQ Consensus.
16:14  WDFC WD-40 beats by $0.55; guides FY19 EPS below estimate, revs in-line (156.50 -0.91)

  • Reports Q4 (Aug) earnings of $1.54 per share, $0.55 better than the single analyst estimate of $0.99; revenues rose 6.2% year/year to $102.6 mln.
  • Gross margin was 55.2% in the fourth quarter compared to 56.0 percent in the prior year fiscal quarter.
  • Co issues guidance for FY19, sees EPS of $4.51-$4.58 vs. $4.65 single analyst estimate; sees FY19 revs of $425-$437 mln vs. $434.00 mln single analyst estimate. Expects gross margin percentage for the full year to be near 55%.
16:14  CRBP Corbus Pharma presents new data on impact of lenabasum on inflammation of airway macrophages from cystic fibrosis lungs (7.80 +0.28)

  • Corbus Pharmaceuticals presented new data demonstrating the effect of lenabasum, the company's synthetic oral endocannabinoid-mimetic drug, on airway macrophages harvested from human cystic fibrosis lungs at the 2018 North American Cystic Fibrosis Conference.
  • Utilizing a translational model consisting of exposure of primary cultures of CF human AMs to LPS, the study indicates that lenabasum decreases inflammatory cytokines induced by LPS in CF patients' AMs; decreases the levels of spliced XBP-1; triggers the biosynthesis of LXA4; decreases the expression of sphingosine kinase 1; and triggers the biosynthesis of the pro-resolution eicosanoid 15-deoxy-?12,14-PGJ2.
  • Corbus expects to report top  line results for its Phase 2b CF study in 2020.
16:11  AXP American Express beats by $0.11, reports revs in-line; raises FY18 EPS above consensus (102.84 -1.50)

  • Reports Q3 (Sep) earnings of $1.88 per share, excluding non-recurring items, $0.11 better than the S&P Capital IQ Consensus of $1.77; revenues rose 9.2% year/year to $10.14 bln vs the $10.06 bln S&P Capital IQ Consensus, reflecting very good performance across our businesses, customer segments and geographies. Card Member spending was up 8 percent (10 percent FX-adjusted). Credit indicators remained strong. Operating expenses were well controlled. The increase reflected higher spending by consumer, small business, and corporate Card Members, as well as higher loan volumes and fee income.
  • Co issues upside guidance for FY18, sees EPS of $7.30-7.40 from high end of $6.90-7.30, excluding non-recurring items, vs. $7.29 S&P Capital IQ Consensus; rev up 9-10% from at least 9%.
16:10  SKX Skechers USA beats by $0.07, misses on revs; guides Q4 EPS above consensus, revs above consensus (26.11 -0.57)

  • Reports Q3 (Sep) earnings of $0.58 per share, $0.07 better than the S&P Capital IQ Consensus of $0.51; revenues rose 7.5% year/year to $1.18 bln vs the $1.22 bln S&P Capital IQ Consensus.
    • Q3 same store comps at company-owned retail stores worldwide increased +1.9%, including an increase of +3.0% in the US offset by a decrease of- 0.8% in its international stores.
  • Co issues upside guidance for Q4, sees EPS of $0.20-0.25 vs. $0.18 S&P Capital IQ Consensus; sees Q4 revs of $1.100-1.125 bln vs. $1.08 bln S&P Capital IQ Consensus.
16:09  WERN Werner Enterprises beats by $0.06, reports revs in-line (32.38 -0.97)

  • Reports Q3 (Sep) earnings of $0.66 per share, $0.06 better than the S&P Capital IQ Consensus of $0.60; revenues rose 19.1% year/year to $629.7 mln vs the $628.71 mln S&P Capital IQ Consensus.
  • Average revenues per tractor per week increased 10.3% in 3Q18 compared to 3Q17 due to a 13.4% increase in average revenues per total mile, partially offset by a 2.7% decrease in average miles per truck.
  • In 3Q18, it averaged 7,728 trucks in service in the Truckload Transportation Services segment and 43 intermodal drayage trucks in the Werner Logistics segment. It ended 3Q18 with 7,750 trucks in the Truckload segment, a year-over-year increase of 375 trucks and a sequential increase of 50 trucks.
16:08  OZK Bank OZK reports Q3 (Sep) results; Misses EPS as NIM slides 37 bps y/y (34.85 -1.58)

  • Reports Q3 (Sep) earnings of $0.58 per share, which includes a $0.08 pre-tax charge, may not be comparable to the S&P Capital IQ Consensus of $0.91.
  • On July 16, 2018, the Bank changed its name to Bank OZK, changed its ticker symbol to "OZK," and adopted a new logo and signage, all as part of a strategic rebranding. As a result of this name change and strategic rebranding, the Bank incurred pretax expenses of $10.8 million during the third quarter and $11.4 million for the first nine months of 2018. It would appear the bank missed expectations when excluding this charge.
  • Net interest income for the third quarter of 2018 was $220.6 million, a 5.2% increase from $209.7 million for the third quarter of 2017, but a 1.8% decrease from $224.7 million for the second quarter of 2018. Net interest margin, on a fully taxable equivalent basis, was 4.47% for the third quarter of 2018, a decrease of 37 basis points from 4.84% for the third quarter of 2017. Average earning assets were $19.69 billion for the third quarter of 2018, a 12.9% increase from $17.44 billion for the third quarter of 2017.
16:08  ISRG Intuitive Surgical beats by $0.17, reports revs in-line (522.29 -20.62)

  • Reports Q3 (Sep) earnings of $2.83 per share, excluding non-recurring items, $0.17 better than the S&P Capital IQ Consensus of $2.66; revenues rose 14.0% year/year to $920.9 mln vs the $916.22 mln S&P Capital IQ Consensus.
16:06  CP Canadian Pacific beats by $0.02, reports revs in-line, increases FY18 EPS guidance (199.45 -6.61)

  • Reports Q3 (Sep) earnings of CC$4.12 per share, CC$0.02 better than the S&P Capital IQ Consensus of CC$4.10; revenues rose 19.0% year/year to CC$1.9 bln vs the CC$1.89 bln S&P Capital IQ Consensus.
  • Operating ratio was a record-low 58.3%, a 270 basis point improvement from 61.0%
  • Outlook: CP it raising its 2018 full-year guidance, now expecting adjusted diluted EPS for 2018 to grow in excess of 20%, increased from earlier guidance of low-double digit growth. Expectations for adjusted diluted EPS growth in 2018 are based on adjusted diluted EPS of $11.39 in 2017. At 20% growth, CP would generate EPS of $13.67. The Capital IQ consensus is for FY18 EPS of CC$14.11.
16:05  PBCT People's United Financial reports EPS in-line (16.17 -0.18)

  • Reports Q3 (Sep) operating earnings of $0.33 per share, in-line with the S&P Capital IQ Consensus of $0.33
  • Net interest margin increased five basis points from 2Q18 to 3.15% reflecting:
    • Higher yields on the loan portfolio (increase of ten basis points)
    • One additional calendar day in 3Q18 (increase of two basis points)
    • Higher yields on the securities portfolio (increase of one basis point)
    • A decrease in average borrowing balances (increase of one basis point)
    • Higher rates on deposits (decrease of nine basis points)
16:03  AKTS Akoustis Technologies proposes offerings of common stock and $10 mln aggregate principal of its 6.5% Convertible Senior Notes due 2023 in concurrent underwritten offerings (5.01 -0.76)

 
16:03  LLNW Limelight Networks reports EPS in-line, revs in-line; guides FY18 EPS in-line, reaffirms FY18 revs guidance (5.05 +0.12)

  • Reports Q3 (Sep) earnings of $0.03 per share, excluding non-recurring items, in-line with the S&P Capital IQ Consensus of $0.03; revenues rose 7.0% year/year to $49.32 mln vs the $49.01 mln S&P Capital IQ Consensus.
  • Co issues guidance for FY18, sees EPS of $0.14-0.17, excluding non-recurring items, vs. $0.15 S&P Capital IQ Consensus; sees FY18 revs of $200-203 mln vs. $202.78 mln S&P Capital IQ Consensus.