NYSE Analytics 05/12
SPY grows before NYSE opennig bell.
- European Indexes are in positive side
SPY support 188.50, resistance 189.00
In reaction to strong earnings/guidance: GOGO +7.5%, INO +5.6% (light volume), HPJ +3.3% (light volume), CGA +2.1%.
M&A news: PF +20.5% and HSH +3.4% (Pinnacle Foods to be acquired by Hillshire Brands for $18.00 in cash and 0.50 shares of Hillshire Brands common stock; implied purchase price based on 10 day average closing price of HSH is $36.02 per share), TWTR +3.1% and FB +1% (Barron’s suggests Facebook could target Twitter; TWTR upgraded to Buy from Neutral at Sun Trust Rbsn Humphrey), YELP +1.1% ( Bloomberg discusses that YELP may be a possible takeover target), AZN +1% and PFE +0.4% (Pfizer execs have indicated that Asterzenca buyout will be a ‘win-win’, according to reports), SHPG +0.3% (Shire plc will acquire Lumena Pharma for an upfront payment of $260 mln in cash, plus a payment for net cash at closing, and near-term contingent milestone payments related to ongoing clinical trials), AGN +0.1% (Allergan Board Unanimously rejects unsolicited proposal from Valeant (VRX); Co Expects to Increase EPS by 20-25 % in 2015 and by 20% CAGR over Next Five Years), S +0.8% (Deutsche Telekom wants $1 bln breakup fee over TMobile / Sprint deal, according to reports), .
Select metals/mining stocks trading higher: RIO +3.5% (added to European Focus list at JP Morgan), HMY +2.3%, BHP +1.7% and MT +0.4% (ArcelorMittal is in discussions to purchase BHP Billiton’s Guinea iron-ore asset), FCX +1.7%, SLV +1.3%, GOLD +0.9%, GDX +0.5%,GLD +0.5%
A few China internet names showing strength: WUBA +3.5%, QIHU +2.8%, YY +2.5%.
Coal names trading higher: BTU +2.6% (upgraded to Overweight from Equal-Weight at Morgan Stanley), ACI +2.6%, WLT +1.8%,
Other news: TSEM +7.6% (still checking, light volume), TSRO +7.5% (announces successful achievement of primary and all secondary endpoints in third and final Phase 3 trial of rolapitant; achieved primary endpoint of complete response in the delayed period following initiation of chemotherapy), KERX +7.3% (The Baupost Group declares 10.07% passive stake in 13G filing ), ALNY +5.6% (announces new RNAi Therapeutic Program for the Treatment of Hepatitis B Virus (HBV) Infection and Reports an Up to 2.3 Log10 Reduction of HBV Surface Antigen (HBsAg) in Chronically Infected Chimpanzees), RMTI +4.8% (seeing continued strength following Friday’s +10% move), RLYP +4.6% (announced topline results from its Phase 1 onset-of-action study of patiromer, the final clinical trial planned to support a New Drug Application),ALU +3.9% and NOK +0.8% (Alcatel-Lucent exec says company not focused on Nokia (NOK) deal, according to reports ), RSH +3% (Standard General discloses 9.8% passive stake in SC 13G filing), TTM+2.8% (still checking), BCO +2.6% (following positive Barron’s mention), ARMH +2.1% (still checking),ABB +1.9% (still checking), TSLA +1% (discloses in 10-Q that production activities with Toyota (TM) for the Rav-4 are expected to end in 2014), AMZN +0.9% (Amazon.com and Italian bookstore chain Giunti announce exclusive agreement to launch a new bookstore model for Italy), BP +0.9% (BP plans to invest $1.5 bln in Egypt, according to reports ), GS +0.6% (following positive Barron’s mention), AMGN +0.5% (Amgen and AstraZeneca (AZN) announce positive results from Phase 3 study of brodalumab (AMG 827) in patients with moderate-to-severe plaque psoriasis), CHL +0.5% (following positive Barron’s mention),AAPL +0.3% ( Tablet shipments overall growth has slowed to 21%, MacBook shipments in Q2 rise 28.6% QoQ, according to reports), .
Analyst comments: LOGI +5.4% ( upgraded to Outperform from Neutral at Credit Suisse), IRDM +4.3% (Iridium upgraded to Outperform from Neutral at Macquarie), WB +2.5% (Weibo initiated with an Overweight at Piper Jaffray), BDBD +2.2% (Boulder Brands upgraded to Buy from Neutral at SunTrust)
In reaction to disappointing earnings/guidance: BPI -12.1%, CLB -4.8%, DRH -1.5%.
Other news: ETRM -6.8% ( files for $75 mln mixed securities shelf offering ), AEZS -3.8% ( announces 14.02 mln At the Market Issuance Program ), PGTI -3.2% (appoints Jeff Jackson as new President and Chief Operating Officer), AIG -2.4% (Hancock & Wintrob in lead for AIG CEO, according to reports ), E-1.2% (still checking), INSY -0.9% (continued weakness–see16:02 for color).
Analyst comments: BCS -2.2% (downgraded to Neutral from Outperform at Exane BNP Paribas, downgraded to Sector Perform at RBC Capital Mkts), NTAP -0.6% (downgraded to Mkt Perform from Outperform at Raymond James), DE -0.3% (downgraded to Underperform from Neutral at Longbow).
Trading Ideas NYSE & NASDAQ:
- TSRO – short below 28.00
- ALNY – short below 58.00
- GOGO – long above 13.00
- HSH – long above 38.50