SPY drops before opening bell.

  • European Indexes are in positive   side

SPY Resistance: 188.00, Support: 187.50

Premarket

Gapping up:
In reaction to strong earnings/guidance/SSSPME +31.1%, SCTY +10.7%, SFM +6.8%, COUP+6.3%, MRIN +6.1% (light volume), WEN +5.6%, JASO +5.6%, CSLT +5.5%, GMCR +5.3%,HIMX +5.3%, GTXI +4.7%, DCTH +4.6%, (light volume), BRKR +4.4%, (light volume), AVG +3.9%, (light volume), +3.6%, RIG +3.6%, SD +3.3%, BT +3.2%, )li CTRP +3.1%, BRDR +2.9%, HK+2.6%, APA +2.6% (light volume), CAR +2.5%, FOXA +2.4%, RATE +2.2%, (announces acquisition of Caring for $54 mln in cash), AGO +2.2%, (light volume), JONE +2.2%, (light volume), AXAS +2%,PNNT +1.7%, (light volume), KIM +1.7%, (light volume), ATLS +1.5%, (light volume), STB +1.4%, EFC+1.1%, COST +1.1%, CTL +1%, MATR +1%, (light volume), PRU +0.6%, PUK +0.6%, POZN +0.9% (light volume),  MCD +0.2%.

M&A newsAZN 2.1% (Pfizer may bid a higher amount for AZN, according tor reports ), CHTP halted (Lundbeck to Acquire Chelsea Therapeutics; total potential consideration of up to USD 7.94 per share).

A few financial related names showing strengthBCS +6% (provides strategy update; to cut 14,000 jobs by end of year), NBG +3.3%, DB +1.5%, SAN +1%.

Metals/mining stocks trading higherMT +2.9%, HMY +2.3%, PAAS +0.8%, GDX +0.6%, GLD+0.3%, GOLD +0.2% (reports Q1 metrics) .

Select oil/gas related names showing strengthSDRL +3.8%, PBR +1.2%, TOT +1%, STO +0.4%,RDS.A +0.3%.

Other newsWBAI +4.9% (reiterates that it has obtained proper approvals to operate an online sports lottery service in China), ROIC +3.5% ( ROIC to replace ACO in the S&P SmallCap 600), GRPN +2.3% (still checking), TWTR +2.1% (following positive Barron’s mention; upgraded to Equal-Weight from Underweight at Morgan Stanley), RDN +1.8% (prices 15.5 mln share offering of common stock at $14.50 per share; increases size and prices $300 mln offering of senior notes), CAJ +1.5% (confirmed plans to acquire its own shares — up to 17 mln shares of common stock), F +1% (announces $1.8 bln stock repurchase program to offset share dilution; consistent with capital strategy), BMRN +0.9% (positive MadMoney mention), GILD +0.7% ( announce $5 bln share buyback program), SODA +0.7% (followingGMCR results), CREE +0.6% (increases stock buyback to $300 mln), TFM +0.2% (following SFM results).

Analyst commentsGIMO +5.4% (upgraded to Outperform from Neutral at Credit Suisse ), YELP +3.3% (Yelp upgraded to Overweight from Equal Weight at Morgan Stanley), SJM +0.7% (upgraded to Neutral from Sell at Goldman), DGX +0.6% (upgraded to Neutral from Underperform at BofA/Merrill; tgt raised to $58 from $50)

Gapping down:
In reaction to disappointing earnings/guidance/SSSPOWR -35.5% ( downgraded to Hold from Buy at Craig Hallum), MM -32.7% (multiple downgrades), GPOR -15.1%, BODY -14.9%, MCP -11%, EGY-9.3% (light volume), NPSP -9%, LQDT -9%, ERII -8.9%, DF -7.8%, TSLA -6.4%, SCMP -6.2%,ANDE -4.7%, (light volume), NICE -4.3%, NLY -4.1%, REE -3.8% (light volume), CZR -3.7%, ICPT-3.7%, REGN -3.7%, NVAX -3.5%, (light volume), CLR -2.7%, PMT -2.5%, (light volume), GTAT-2.3%, ARP -2.1%, RNDY -1.7% (light volume), WIN -1.6%, LPSN -1.5% (light volume), LCI -1.5%,VNDA -1.3%, INSM -1.2%, SUNE -1.1%, EMKR -1.1%, (light volume), FANG -1%, TWO -0.9%,SN -0.8% (light volume).

Casino/gaming names lower following reports that Macau may be limiting illegal money transfers:LVS -6.1%, MPEL -5.7% (also reported earnings), WYNN -5.3%, MGM -4.6%

Other newsCIE -5.7% ( announces $1 bln offering of convertible senior notes due 2024), FDX -0.4% ( FedEx may charge by size of packages, according to reports; also downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $140 from $160) .

Analyst commentsQRE -3% (downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $19 from $20 on lack of immediate catalysts, preferring NSLP or Legacy Reserves), CLF -0.6% (downgraded to Underperform from Mkt Perform at Bernstein)

Trading Ideas NYSE & NASDAQ:

  • SCTY – short below 53.00, long above 54.00
  • POWR – long above premarket high
  • GPOR – long above 60.00
  • MGM – short below 24.00