NYSE Analytics 05/28
SPY grows before NYSE opening bell
Support 191.50, resistance 192.00
Uptrend at premarket
In reaction to strong earnings/guidance: FORM +7.8%, QIHU +5.7%, TOL +3.5%, KORS +3.3%,WDAY +2.3%, SDRL +0.9%.
M&A news: AGN +2.4% (VRX increases merger proposal FORAGN).
Other news: SPEX +22.2% (continued momentum), PRAN +5.3% (continued strength), RMTI +4.5% (announces FDA Acceptance for Filing of Triferic New Drug Application), POWR +2.7% (Becker Drapkin Management discloses 8.8% active stake in 13D filing), LEJU +2.5% (Tencent Holdings discloses 16.1% active stake in 13D filing), CLVS +2.4% (following 9% move lower yesterday), SPPI +2.3% (completes enrollment in Phase 2 Trial of SPI-2012; Spectrum expects to make a Phase 3 Go/No-Go decision before the end of the year), FEYE +2.2% (still checking), PPC +1.9% (Pilgrim’s Pride (PPC) may raise offer for HSH to $50/share, analysts say, according to Bloomberg real M&A column), ARIA +1.7% ( Independent discusses rumors that GlaxoSmithKline (GSK) may make GBP 1 bln bid for Ariad; ARIA also confirms will present at upcoming investor conferences), JDSU +1.6% (announces $100 mln common stock repurchase program), KBH +1.6% (following TOL results), RBS +1.4% (plans to cut mortgage business in the United states by 2/3, according to reports ), ANH +1.3% (Board of Directors authorizes co to acquire up to an additional 10 mln shares of the co’s common stock through its share repurchase program), CERN +0.9% (increases share repurchase program by $100 mln), SPWR +0.7% (SunPower and Xcel Energy to Build 50-Megawatt Solar Power Plant in Colorado), GOOG +0.7% (in the process of developing prototype for self driving car, according to reports), RYN +0.5% (approves separation of Rayonier Advanced Materials; declares special dividend distribution of all outstanding shares of Rayonier Advanced Materials common stock to Rayonier’s shareholders ), AAPL +0.4% (Apple and NTT DOCOMO to offer iPad in Japan starting on Tuesday, June 10; plans to decrease Beats purchase price to $3 bln from $3.2 bln, according to reports ; tgt raised to $655 from $590 at Barclays; maintain Equal Weight), CRM +0.3% (following WDAY results),URBN +0.3% (announces authorization to repurchase 10 mln shares), PFE +0.3% ( following positive Barron’s mention), YHOO +0.2% (Microsoft does not plan to sell search to Yahoo (YHOO), according to reports ).
Analyst comments: TI +4.5% ( added to Conviction Buy List at Goldman), VEEV +4.3% (initiated with an Overweight at JPMorgan), FCEL +4% (resumed with a Buy at Stifel; tgt $2.90), TWTR +2.9% (upgraded to Buy from Neutral at Nomura), GTAT +2.2% (resumed with a Buy at Stifel), RKUS +1.1% ( initiated with an Outperform at BMO Capital Mkts), FSLR +0.5% (resumed with a Buy at Stifel)
In reaction to disappointing earnings/guidance: DSW -17%, GOMO -11.3%, CRMT -11.2%, WTSL-9.9%, DAKT -5.3%, BCRX -3.9% (discloses financial outlook for 2014: Sees FY14 operating expenses in upper half of previously announced range of $48-59 mln).
M&A news: VRX -0.3% (Valeant Pharma to sell filler and toxin assets to Nestle for $1.4 billion; VRX increases merger proposal For AGN).
Select drug/biotech name showing weakness: GSK -1.6% ( Independent discusses rumors that GlaxoSmithKline may make GBP 1 bln bid for Ariad), MRK -1%, AZN -0.8% (Barron’s positive on PFE after dropping AZN bid), TEVA -0.4%.
Select metals/mining stocks trading lower: RIO -1.4%, BBL -1.2%, AU -1.2%, BHP -0.7%.
Other news: ACUR -26.2% ( announces the FDA advised that data from co’s AVERSION hydrocodone bitartrate with acetaminophen product candidate are insufficient to support an intranasal abuse deterrence claim), DDD -5% (is offering 5,950,000 shares of its common stock in an underwritten public offering.),MNKD -4.4% (still checking), CACH -3.3% (commences $14 mln public offering of common stock), BEE-3% (announces offering of 34 mln shares of common stock; announced that it has signed an agreement to acquire the remaining 63.6 percent ownership interest in the 757-room Hotel del Coronado for $210 mln),BCRX -2.9% (commences $100 mln public offering of common stock), BXE -2.9% (announces $250 mln bought deal financing of 25.65 mln common shares at $9.75 per share; increases FY14 CapEx budget and exit guidance), CRI -2.3% (still looking around), HCN -2.2% (announces its anticipated second quarter 2014 acquisition pipeline of ~ $414 million; announces 12 mln share common stock offering), DYAX -2% (following 28% move higher yesterday–boosted by BCRX read-thru; confirmed enrollment in trial this morning), DEO -1.5% (still checking; initiated with a Hold at Kepler), BKD -0.9% (announces secondary offering of 19.4 mln common shares by certain affiliates of Fortress Investment Group), SSYS -0.3% (following DDD offering).
Analyst comments: LOW -0.6% (Lowe’s downgraded to Sell from Hold at Canaccord)
Trading Ideas NYSE & NASDAQ:
• DSW – long above 27.00
• GALT – short below 13.00
• TOL – long above 37.00
• KORS – long above 98.00