NYSE Analytics 05/27
SPY grows before NYSE opening bell
Support 190.50, resistance – 191.00
uptrend at premarket
In reaction to strong earnings/guidance: MOBI +1.6%, BNS +0.7%.
M&A news: HSH +21.8% and PPC +3.2%(Pilgrim’s Pride makes alternative offer to buy HSH; offers $45.00 per share in cash as alternative to HSH pending acquisition of PF), PFE +0.5% (Pfizer issues statement regarding AstraZeneca (AZN); does not intend to make an offer for AstraZeneca).
Select EU financial related names showing strength: NBG +3.1%, SAN +1.9%, CS +1.8% (upgraded to Buy from Hold at Deutsche Bank), DB +1.6%, BBVA +1.3%.
Select Utility stocks trading higher on reports of PJM capacity market secures new and diverse resources to meet future electricity demand: FE +3.7%, AES +2.8%, DUK +1.7%, PPL +1.3%, EXC+0.9%, NEE +0.5%, D +0.4%.
Other news: BCRX +23.1% (announces positive results from OPuS-1, a Phase 2 trial of BCX4161 for the prophylactic treatment of hereditary angioedema), NVGN +16% (announces milestone with its super-benzopyran (SBP) drug program), ARO +9.1% (closes strategic partnership deal/$150 min financing transaction with Sycamore Partners, announces two new Baord members), NADL +8.8% andSDRL +2.4% (announce investment and co-operation agreement with Rosneft to partner in Russian market ),SPEX +7.9% (attributed to positive blog mention on Friday, cont strength), INO +7% (reports breakthrough DNA-Based monoclonal antibody therapy completely protects animals from lethal viral challenge; unit sells animal health assets), SPPI +6.5% (mentioned positively on blog), ONVO +5.6% (disclosed 3D kidney tissue bioprinting activity update), TI +5.5% (potentially related to stong EU mkts), VRNG +5.5% (may be attributed to positive blog mention), ADXS +4.3% (co’s HER2 immunotherapy candidate receives Orphan Drug Designation for treatment of osteosarcoma), STM +4.3% (positive Barrons mention), KNDI +4.1% (may be attributed to reports that China plans to remove millions of cars off road to ease pollution problem), BKS +3.9% (positive Barron’s mention), ARMH +2.5% (strong EU mkts), ALLT +2.3% (receives a $5 mln order from a Tier-1 mobile operator for the Allot Service Gateway Tera), EMKR +2% (announces settlement and license agreement relating to patent infringement lawsuit brought by Nichia), BAC +2% (discloses it resubmitted its requested capital actions and certain 2014 CCAR to the Fed), INCY +1.9% (Co and and Bristol-Myers Squibb (BMY) enter clinical collaboration agreement to evaluate combination regimen of two novel immunotherapies), FEYE +1.8% (Analysis Platforms certified by North Atlantic Treaty Organization to handle information classified as NATO SECRET).
Analyst comments: ODP +5.4% (upgraded to Buy from Neutral at Goldman), EXXI +3.6% (initiated with an Outperform at BMO Capital Mkts), FRSH +2.9% (initiated by several analysts), SPLK +2.3% (upgraded to Outperform from Market Perform at Northland Capital), PANW +1.8% (upgraded to Buy from Neutral at Nomura), KORS +1.7% (target raised to $108 from $100 at Wedbush, CSCO +1.6% (upgraded to Buy from Hold at Deutsche Bank), WRE +1.2% (upgraded to Outperform at Robert W. Baird)
In reaction to disappointing earnings/guidance: JKS -9.1%, FRO -8%.
M&A news: PF -6.1% (still checking), AZN -1.7% (Pfizer issues statement regarding AstraZeneca (AZN); does not intend to make an offer for AstraZeneca, also downgraded to Sell from Hold at Societe Generale).
Select metals/mining stocks trading lower: GFI -3.3%, AU -3.1%, AU -3.1%, SLV -1.7%, GDX -1.4%,HMY -1.3%, GLD -1.2%, ABX -1.2%, AG -1.2%, SLW -1%, HL -1%, .
Select solar names showing early weakness in sympathy with JKS: CSIQ -2.8%, TSL -2.4%, YGE-1.5%.
Other news: DRTX -8.8% (confirms FDA approval of Dalvance, inititially traded higher, and sold off pre-mkt), BIOD -5.4% (discloses CFO resigned), CVM -3.8% (files for $75 mln mixed securities shelf offering),YY -1% (rumors of site clean-up operation by government, co denies rumors), .
Analyst comments: NTLS -2.1% (downgraded to Hold from Buy at Jefferies), SPLS -0.9% (downgraded to Sell from Neutral at Goldman).
Trading Ideas NYSE & NASDAQ:
• DRTX – short below 15.00
• JKS – long above 24.00
• TEVA – short below premarket low
• VOD – short below 34.90