NYSE Analytics: July 14, 2014
NYSE Analytics: July 14, 2014
Spyder ETF grows before NYSE opening bell.
SPY (intraday chart) uptrend on premarket. Support 197.00, resistance 198.00.
Gapping up/down: C +3.9% on earnings/settlement news, URS +7.1% / ACM +6.3%, MYL +5.6% / ABT +2.3% on M&A, telecom names higher… Metals/mining stocks trading lower.
In reaction to disappointing earnings/guidance: C +3.9% (announces Comprehensive Settlement with Residential Mortgage-Backed Securities Working Group — Citigroup will pay a total of $4.5 billion in cash and provide $2.5 billion in consumer relief).
M&A related: URS +7.1% and ACM +6.3% (AECOM to acquire URS for $56.31/share in cash and stock; ACM reaffirms target FY14 EPS; ACM expects the combination to be accretive to its GAAP earnings per share and more than 25% accretive to its cash earnings per share in FY15), MYL +5.6% and ABT +2.3% (Mylan Labs confirms plans to purchase Abbott’s (ABT) non-U.S. developed markets specialty and branded generics business in an all-stock transaction; immediately and significantly accretive to earnings, with opportunity to accelerate target of at least $6.00 in adjusted diluted EPS in 2018 ), SHPG +1.6% (Shire plc announced that it requested and has received a further revised proposal from AbbVie (ABBV); revised proposal comprises GBP 24.44 in cash and 0.8960 shares of new ABBV per SHPG share), GTIV +1.1% (Kindred Healthcare increases all-cash tender offer for Gentiva to $16.00 Per Share), LO +0.6% and RAI +0.4% (Smoking related lawsuits are leveling off which may help LO/ RAI merger, according to reports; Barron’s profiles positive view on RAI and LO; RAI upgraded to Outperform at RBC Capital Mkts), KOG +0.8% / WLL +0.4% (Kodiak Oil & Gas to be acquired by Whiting Petroleum; transaction valued at $6 bln; KOG shareholders will receive .177 of a share of WLL in exchange for each share of KOG they hold representing $13.90/share).
Select telecom names showing strength: PT +4.4%, ERIC +2.3%, VOD +1%, ORAN +1% (Positive Barron’s mention).
Other news: PGNX +15.8% (FDA Office of Drug Evaluation III Approves Salix’s Request that the FDA Approve the RELISTOR Subcutaneous Injection sNDA for the Treatment of Opioid-induced Constipation in Patients with Chronic Non-cancer Pain), EXEL +15.3% (Exelixis announces positive top-line results for Phase 3 Pivotal Trial of Cobimetinib in combination with Vemurafenib in patients with BRAF V600 mutation-positive advanced melanoma), CREG +12.7% (announces $50 mln Standby Equity Distribution Agreement to fund business growth), PRAN +10.3% (still checking), RDC +6.9% (still checking, following NE news), PSTI+6.4% (still checking), AUMN +6.2% ( announce it restarted mining at its Velardena Properties on July 1, 2014), TESO +4.4% (announces $100 mln normal course issuer bid), KNDI +3.9% (China will mandate 30% electric car usage by 2016, according to reports), OHRP +1.9% (Visium Asset Management discloses 5.2% passive stake in 13G filing), KOG +1.9% (Kodiak Oil & Gas to be acquired by Whiting Petroleum (WLL); transaction valued at $6 bln; KOG shareholders will receive .177 of a share of WLL in exchange for each share of KOG they hold representing $13.90/share), IGT +1.2% (agrees to install its Advantage 9.1 System Suite along with sbX Media Manager at Northern Quest Resort & Casino), NE +1.1% (approves spin-off of Paragon Offshore; sets July 23 record date and August 1 distribution date), AAPL +1.1% ( upgraded to Overweight from Equal Weight at Barclays; tgt raised to $110 from $95; Apple has denied location data China security risk reports, according to reports; also may hire new ad agency, according to reports), CRMB +0.8% (entered into an Asset Purchase Agreement through which Lemonis Fischer Acquisition Company will acquire the Crumbs’ business ), AMZN +0.8% (to charge 1 cent for delivery in France following ban on free shipping, according to reports ), GOOG +0.6% (YouTube plans to increase premium content, according to reports), BA +0.6% (positive Barron’s mention), TRMB +0.6% (acquires the Omega Group to expand its public safety solutions; financial terms were not disclosed), AA +0.2% (files for $5 bln mixed securities shelf offering; announces a 10-year, $1.1 bln agreement with Pratt & Whitney, a division of UTX, for jet engine components)
Analyst comments: ICPT +2.6% ( initiated with a Buy at Deutsche Bank; tgt $395), EAT +1.5% (upgraded to Overweight from Neutral at JP Morgan), STX +0.4% ( tgt raised to $74 from $64 at Deutsche Bank),
In reaction to disappointing earnings/guidance: HLIT -1.8% (light volume).
M&A news: ABBV -1.9% (Shire plc announced that it requested and has received a further revised proposal from AbbVie (ABBV); revised proposal comprises GBP 24.44 in cash and 0.8960 shares of new ABBV per SHPG share), GA -0.7% (Giant Interactive announces shareholders’ approval of merger agreement ).
Metals/mining stocks trading lower: CDE -3.7%, AEM -2.7%, GFI -2.5%, AU -2.3%, SLW -2%, GDX-1.9%, GOLD -1.9%, ABX -1.6% (partners with Ma’aden to form Jabal Sayid JV ), AG -1.3%, GLD-1.1%.
Other news: X -1.2% (President and CEO applauds decision from U.S. Department of Commerce on Oil County Tubular Goods trade case ), MHR -0.5% (Reports Mid-Year 2014 Proved Reserves of 79.8 MMBoe; Proved Reserves Up 7.7 Million BOE From Year-End 2013 Volumes; PV-10 Increased $84.9 Million to $916.3 Million), VRX -0.4% (Allergan comments on Pershing Square’s definitive proxy solicitation; urges stockholders to take no action at this time).
Analyst comments: GTAT -5.3% (attributed to Credit Agricole comments suggesting iPhone sapphire cover issues), FMC -1.5% ( downgraded to Hold from Buy at Jefferies), TRIP -1.2% ( downgraded to Neutral from Buy at Nomura), DWA -1% ( downgraded to Neutral from Buy at B. Riley & Co), YELP -0.9% (initiated with an Underweight at Evercore; tgt $65), EBAY -0.7% (downgraded to Sector Perform from Outperform at Pacific Crest), DAN -0.6% (downgraded to Neutral from Buy at Goldman), WFC -0.6% (downgraded to Neutral from Overweight at JP Morgan), USG -0.5% (downgraded to Sector Perform at RBC Capital Mkts; tgt lowered to $30), APAM -0.4% ( downgraded to Mkt Perform from Outperform at Keefe Bruyette), COV-0.3% (downgraded to Neutral from Overweight at Piper Jaffray ), VMC -0.2% (downgraded to Sector Perform at RBC Capital Mkts)
Trading Ideas NYSE & NASDAQ:
- URS – long above premarket high
- ACM – short below 32.00, long above premarket high
- MYL – long above 52.50