NYSE Analytics 05/16
SPY drops before NYSE opening bell
support 187.00, resistance 187.50
downtrend at premarket
In reaction to strong earnings/guidance: KGJI +33.3%, JCP +17.1% (also tgt raised to $10 from $6 at Deutsche Bank), XGTI +11.5% (also announces New Mexican Patent Award), JWN +10.9% (also upgraded to Outperform from Neutral at Credit Suisse), CMGE +10.1%, QUNR +6.7%, ADSK +4.8%, EGLE +4%,AMAT +1.7%, DDS +1% (light volume).
M&A news: OVRL +33.8% (Overland Storage and Sphere 3D enter into definitive merger agreementin transaction with implied value of ~$4.43/share ), RAX +13.6% (following late spike; co has confirmed it hired Morgan Stanley after being approached by multiple parties), DCIN +9.1% (to be acquired by Carmike Cinemas in an all stock transaction; each Digiplex share will be exchanged for 0.1775 shares of Carmike common stock), ABT +1.4% (expands Latin American presence and branded generics portfolio with acquisition of CFR Pharmaceuticals).
India names higher with strength in overseas trading — boosted by election results: IBN +8.3%, SSLT+5.8%, HDB +4.1%, TTM +2.2%, RDY +0.6%,
A few 3-D printing related names are trading higher : DDD +2%, ONVO +1.6%
Other news: LRCX +4.7% (Greenlight Capital disclosed new position), LO +4.3% (Greenlight Capital disclosed new position), DEO +2% (still checking), ARO +1.8% (still checking), CVE +1.8% (positive MadMoney mention), BUD +1.8% (still checking), MAS +1.7% (Third Point disclosed new stake), PLUG+1.7% (positive MadMoney mention), VZ +1.6% (Berkshire Hathaway discloses new 11.02 mln share position in VZ; Third Point disclosed new stake; Paulson & Co disclosed new position), ENZY +1.4% (reports a request for arbitration by AAK), SUNE +1.4% (Greenlight Capital increased position), AHC +1.2% (announces special and regular dividends), HSBC +1.2% (still checking for anything specific), DXCM +0.8% (positive MadMoney mention), MA +0.7% (Berkshire Hathaway increased stake), WMT +0.4% (Berkshire Hathaway increased position; Barron’s profiles positive view on Wal-Mart ), UNP +0.2% (announces 2-for-1 stock split; increases 2014 capital expenditures by $150 mln to $4.1 bln), TWTR +0.2% (reports indicate Twitter will not be blocked by Russia; upgraded to Hold at Wunderlich), FB +0.1% (Appaloosa (David Tepper) disclosed new stake).
Analyst comments: TST +4% (initiated with a Buy at B. Riley & Co.; tgt $4.15 ), TISA +1.8% (initiated with a Buy at ROTH Capital), SMCI +1.4% (upgraded to Buy at Stifel;), NBG +0.7% (upgraded to Overweight from Neutral at JP Morgan), TSS +0.6% (upgraded to Overweight from Equal Weight at First Analysis ), TWTC +0.5% (upgraded to Buy from Neutral at Citigroup), LLL +0.3% (upgraded to Outperform from Neutral at Credit Suisse), KSU +0.3% (upgraded to Buy from Neutral at BofA/Merrill)
In reaction to disappointing earnings/guidance: WWE -24% (also NBCUniversal Cable Entertainment reaches multi-year deal with WWE for MONDAY NIGHT RAW on USA Network and SMACKDOWN on Syfy), ISR -10.6% (disclsoes Q1 in 10-Q: Narrowly misses single estimate), CSIQ -7.2%, ICLD -5.7%,YOD -4.1% (light volume), VJET -2.1%, PAYC -1%, (light volume), KOOL -0.7%.
M&A news: GTIV -1.1% (Gentiva Health Svcs Board of Directors rejects unsolicited proposal from Kindred Healthcare (KND); determines proposal significantly undervalues company and its prospects), PFE -0.2% (AstraZeneca has risks over Pfizer (PFE) tax avoidance strategy, according to reports) .
Solar names lower following CSIQ results: YGE -2.8%, JKS -2.7%, TSL -2.6%, SPWR -1.5%
Select financial related names showing weakness: ING -3%, BCS -1.7%, DB -1.4% (reaches agreement with Blackstone Real Estate Partners VII to sell Nevada Property 1, owner of The Cosmopolitan of Las Vegas, for $1.73 bln ), RBS -1.4%, CS -1.1%.
Metals/mining stocks trading lower: RIO -3.1%, BBL -2.4%, MT -1.7% (planning offer for Zimbabwe Alloys, according to reports), BHP -1.4%, GOLD -1%, SLV -0.5%.
A few China internet names lower: DANG-1.7%, YY -1.5%, SINA -0.5%
Other news: KMDA -8.8% (announces preliminary results from Phase II/III pivotal trial; positive clinically meaningful efficacy signs in the inhaled AAT group including an ~50% reduction in severe exacerbation rates versus placebo), ALU -4.3% and RYAAY -4.2% (still checking), CHK -3.8% (Provides Update on 2014 Asset Sales and Projected Impact on 2014 Outlook; announced additional noncore asset sales; established a five year annual production growth target of 7-9%), GIMO -3.3% (announced that its vice president of engineering, Dave de Simone is leaving; appoints New Senior Vice President of Engineering), ARMH -3.2% (may be attributed to cautious blog mention), GME -2.4% (following NPD data), PT -1.5% (still checking), NOK-1.4% (gapping down despite Greenlight Capital disclosing new position and S&P upgrade), YHOO -0.6% (Third Point closed position).
Analyst comments: CLF -3.1% (downgraded at Macquarie)
Trading Ideas NYSE & NASDAQ:
• CSIQ – long above 23.00
• JCP – short below 10.00
• RAX – long above premarket high, short below 36.00
• JWN – short below 66.00