● Boeing Co streamlines aircraft production systems at its largest factory, trying to cut costs, to compete with Airbus and cut the deficit by about $30 billion due to Boeing-787 Dreamliner, writes Reuters. Boeing moves some of its production overseas. But the CEO of the company, Dennis Mühlenburg, in an interview with WSJ, claims, that it won't hit US jobs
● Federal Reserve System (FED) USA, As expected, will raise rates in June regardless of whether, what will the economic data be. At the same time, traders are losing faith in the rate hike in the second half of the year., writes ZeroHedge
● “Local” US banks fall short of regulation. A few weeks ago Standard Financial, bank with assets $488 million and only nine branches, слился с Allegheny Valley Bancorp, an even smaller neighbor in the suburbs of Pittsburgh. The main reason for the union, explains the head of Standard Tim Zimmerman, – increased cost of regulation, although competition with region-based PNC, financial giant with more than $371 billion, также сыграла свою роль.
● S&P снизило рейтинг Катара
● Tesla, HPE, Alcoa makes the Fortune list 500. Total added 20 new companies, шесть были результатом разделений или отделений, and three were created over 100 years ago. Two were created just last year.
● Tesla, HPE, Alcoa makes the Fortune list 500. Total added 20 new companies, шесть были результатом разделений или отделений, and three were created over 100 years ago. Two were created just last year.
● Pharmaceutical company Valeant Pharmaceuticals International Inc. (NYSE: VRX) continues to sell off assets. The company said on Thursday, that will sell the iNova Pharmaceuticals division to private investment funds Pacific Equity Partners and The Carlyle Group for $930 million in cash. Inova makes medicines for weight loss, for the treatment of coughs and colds, pain relievers. Valeant intends to use proceeds from the transaction to pay off debt, the size of which exceeds $26,5 billion.
● J.M. Smucker (NYSE: SJM) announced the receipt in the IV quarter of profit in the amount of $197 million (96 cents per share) compared to $246 million ($1,61 per share) a year earlier. Operating profit was $1,80 per share. Revenue for the reporting period fell by 1% to $1,78 billion. Analysts had expected a profit figure of $1,72 per share on revenue of $1,80 billion. This year J.M. Smucker plans to earn $7,85-8,05 на акцию при прогнозе экономистов в $7,93.
● Enterprise software developer Okta Inc. (NASDAQ: OKTA) reported receiving a loss in the first quarter of $29 million (73 cents per share) compared to $23 million a year ($1,22 per share) previously. Это первый отчет в качестве публичной компании.
● Japanese Toshiba Corp. next week should name the new owner of its expensive semiconductor business. Sources told Reuters, that the selection was narrowed down to two applications: from Broadcom Ltd (NASDAQ: AVGO) and the American Silver Lake Technology Foundation on the one hand, и Western Digital Corp (NASDAQ: WDC) and Japanese investors, government-related, On the other hand.
● Former FBI Director James Comey at a hearing on Thursday will talk about, that US President Donald Trump asked him for "loyalty" before, how to dismiss.
● Arab states presented a list of claims to Qatar, necessary for the normalization of diplomatic and economic relations. US President Donald Trump on Wednesday offered to help resolve the crisis, while Germany and Turkey expressed support for Qatar
ECB at its meeting on Thursday did not change monetary policy
● The US Federal Reserve is preparing to begin shrinking its bond portfolio, накопленного а время денежного стимулирования.
● Trafigura announced Wednesday, which will focus on trading coal and metals. This is a sign that, that three-year oil boom is coming to an end
● Shipping industry, suffered from overcapacity and price wars in recent years, finally showing signs of recovery
● Expected, that the House of Representatives of the US Congress on Thursday will pass the bill, financial sector mitigating regulation. But the Senate is unlikely to support him
● Wells Fargo spent months fixing an aggressive banking product culture, because of which he was at the center of the scandal. Now the bank needs to think again about increasing revenue
● Facebook promotions, Amazon, Apple, Alphabet and Microsoft Drive S Index Growth&P 500 this year. This confuses some investors.. They are concerned about, that the quotes of these shares rose too much and too quickly, but at the same time they do not want to sell them yet
● Google сталкивается с необычными проблемами в попытках сделать карты и снимки удаленных уголков мира. In some countries, cameras have to be worn on elephants and camels, and in Cambodia, her equipment was broken by monkeys
● Uber is in trouble because, that she lacks many top managers. Also, its board of directors has relatively little power., and the company is controlled by Travis Kalanick and two of his friends
Gapping down
In reaction to disappointing earnings/guidance:
- DTEA -8.9%, GEF -8.8%, CMTL -6.7%, MTN -4.1%, DVMT -4%
Other news:
- NLNK -28.9% (Roche (RHHBY) to return rights to IDO inhibitor GDC-0919)
- URBN -13.3% ( discloses that ‘thus far during the second quarter of fiscal 2018, comparable Retail segment net sales are high single-digit negative’ in 10Q)
- USDP -10.9% (prices 3 mln Common Units at $11.60 per Common Unit )
- CGG -10.8% (reports final data from Found project over Lost fold belt )
- MZOR -9.3% (announces that in May, the Israeli Securities Authority conducted a search at the offices of Mazor and also questioned certain officers in connection with an investigation)
- CORT -5% (being attributed to block trade pricing)
- MSL -3.5% (announces public offering of $50 mln of common stock; to reduce the Company’s quarterly cash dividend)
- RGSE -3.4% (filed for 6,127,404 shares of Class A common stock upon exercise of existing warrants)
- BKCC -1.6% (commences offering of $125 mln of senior unsecured convertible notes due 2022)
- CAA -1% (announces offering of 42.8 mln shares of the Co’s common stock, including 10 mln shares being offered by MP CA Homes ), .
Analyst comments:
- LGCY -5.3% (downgraded to Sell at Stifel)
- JUNO -5% (downgraded to Sell from Neutral at BTIG Research)
- DECK -1.3% (downgraded to Neutral from Buy at Buckingham Research)
- HA -0.9% (downgraded to Hold from Buy at Deutsche Bank)
On The Wires (:WIRES) :
- Fibrocell Science (FCSC) announced that the remaining two patients in the NC1+ cohort have been dosed in the Phase 1 portion of the Phase 1/2 clinical trial of FCX-007 for the treatment of Recessive Dystrophic Epidermolysis Bullosa, a devastating genetic skin disease with a high mortality rate. No product-related adverse events were reported. Twelve-week post-treatment data for safety, mechanism of action and efficacy for multiple patients in the Phase 1 portion of the trial are expected in the third quarter of 2017.
- DexCom (DXCM) incorporated its Ambulatory Glucose Profile into its Dexcom CLARITY software. A web-based software, Dexcom CLARITY provides access to clinically relevant metrics and reports for data analyses and diabetes management planning.
- Catalyst Biosciences (CBIO) announced that data from two of its product candidates will be presented at the International Society on Thrombosis and Haemostasis Meeting being held in Berlin, Germany from July 8 to 13, 2017.
Gapping up (SCANX) :
Gapping up
In reaction to strong earnings/guidance:
- MIND +21.7%, (light volume), BABA +12.8%, (guidance at Investor Day) OKTA +7.1%, AGX +4.1%, ONVO +3.9%, SJM +3.1%, NEPT +2.7%, VRNT +2%, FCEL +1.9%, ABM +1.7%, (also SVP/President of ABM Technical Solutions Scott Giacobbe elected EVP and will succeed James McClure as EVP/COO effective November 1 2017), .
M&A news:
- SCLN +8.4% (Buyer Consortium will acquire all the outstanding shares of SciClone for $11.18/share in cash)
- VRX +2.7% (to sell its iNova Pharmaceuticals business to a company jointly owned by funds advised and managed by Pacific Equity Partners and The Carlyle Group (CG) for $930 mln in cash)
- FOR +0.9% (determines that DHI’s proposal to acquire the co for $16.25 ‘could reasonably be expected to lead to a Superior Proposal)
- P +0.2% (Sirius XM Radio (SIRI) in talks to make an investment in Pandora after outright acquisition talks are said to have ended without a deal, according to Reuters)
Select China/BABA peers and related names showing strength following BABA’s guidance at Investor Day:
- BZUN +10.8%, YHOO +9.7%, JD +4.8%, MOMO +3.1%, START +2.4%, WB +2.1%, SINA +1.7%
Other news:
- INSG +37.8% (Inseego terminates TCL transaction to sell MiFi business, plans to restructure, changes leadership, details improved profitability outlook; will call at 8:30am ET on June 8 )
- NXTD +17.5% (announces its Token Service Provider solution has been successfully integrated with the Visa Token Service and is now qualified as a Visa TR-TSP partner through the Visa Ready Program)
- DOOR +17.1% (seeing continued strength; also Nasdaq Hearings Panel granted the Company’s request for continued listing)
- VSTM +14.6% (will present long-term follow-up data from the DYNAMO study at the ICML)
- COOL +11.7% (announces pre-clinical results demonstrating that its lead product, SkinTE)
- ONCS +7.5% (granted orphan designation by the FDA for DNA Plasmid Vector encoding IL-12)
- MOSY +5.4% (continued strength following 125% move y’day)
- HELMET +5% (confirms the FDA granted orphan designation to tucatinib for the treatment of breast cancer patients with brain metastases)
- AMD +3.8% (continued strength)
- CVNA +2.7% (extending earnings related move higher)
- INO +2.7% (commences its phase 3 clinical program to evaluate the efficacy of VGX-3100 to treat cervical dysplasia caused by HPV after FDA removes clinical hold)
- SSTI +1.8% (IPO seeing continued strength)
- RGNX +1.3% (AveXis and REGENXBIO announce an exclusive worldwide license agreement for AveXis)
- TPX +1.2% (10% owner H Partners disclosed the purchase of 100K shares)
Analyst comments:
- NVDA +3.4% (target raised to $180 from $145 at Citigroup)
- KITE +2.3% (upgraded to Buy from Neutral at BTIG Research)
- BHP +0.8% (upgraded to Buy from Neutral at UBS)
- EBAY +0.6% (target raised to $41 from $36 at Citigroup)
