• FRO:

  Midday top 10 gainers: FRO +24%. KNDI +23%. IGLD +20%. HOTR +17%. LIVE +16%. DQ +15%. BIOL +14%. HAST +14%. GNK +13%. CLFD +13%. Midday top 10 Losers: FOLD -25%. ORMP -15%. SGOC -12%. EDAP -11%. AXU -10%. BLIN -9%. CERE -9%. RVLT -9%. TEX -9%. PXLW -9%.

• COP, PTR:

  A Diverse Oil Portfolio Should Include These Companies

• WIN:

  Windstream Announces Second-Quarter Earnings Call

• PM:

  Lower Entry Prices Mean Locking Higher Yields Today

• STO:

  Production at the Oseberg field center in the Norwegian section of the North Sea is shut after an incident, and it is unclear when it will restart, operator Statoil (STO +0.5%) says. Oseberg field center processes oil and gas from the Oseberg, Oseberg Oest and Oseberg Soer fields, which produced 3.5M barrels of oil and 500M cubic meters of gas in April.

• ELN:

  Good News For This Small-Cap Biotech: Eli Lilly Wants To Develop Its Diabetes Drug

• DUK:

  Duke Energy continues to rise in solar electricity rankings

• FRO:

  Frontline (FRO +23%) soars after John Fredriksen backs the sector for gains due to “high growth” in LPG production. Other shipping stocks on the move: Ship Finance International (SFL) +1.5%, Seadrill (SDRL) +1.2%, StealthGas (GASS) +3.4%, GasLog (GLOG) +3.2%.

• ABBV:

  The Supreme Court says the FTC can take action against deals struck between brand-name drug makers and manufacturers seeking to market generics. The case stems from FTC v. Actavis and revolves around so-called “reverse-payment agreements,” so named because the holder of a patent makes a payment to the generic challenger as opposed to the other way around. Some say the agreements amount to the splitting of monopoly profits at the expense of the public. Shares of Actavis (ACT -1.7%) fall on the news and Abbvie (ABBV +0.1%) trades largely flat after slipping initially.

• MDLZ:

  Americans Panic When They Leave Essentials at Home

• JNJ:

  Buy And Hold: The Story For Procter & Gamble

• NSC:

  Why I Like Norfolk Southern Corporation

• SAN:

  FDIC Vice Chair Hoenig’s List Of ‘Below 3%’ Capital Ratios GSIBs

• FRO:

  Premarket gainers: OSH +47%. FRO +21%. KNDI +16%. LDK +8%. MNKD +5%. AMD +5%. DVAX +5%. NFLX +5%. Losers: FOLD -29%. TEX -14%. MDVN -7%.

• ELN:

  Today’s Market: Biotech And Cable M&A The Big Stories

• JNJ:

  Johnson & Johnson (JNJ +0.6%) has agreed to acquire privately held Aragon Pharmaceuticals for $650M in cash upfront and a further $350M in milestone payments. Aragon is carrying out Phase II trials for its prostate cancer drug ARN-509. The deal excludes the company’s experimental breast-cancer treatment, which will be spun off into a separate company called Seragon Pharmaceuticals. (PR)

• ABBV:

  AbbVie Presents Preliminary Results from Phase I Study of Investigational Oncology Compound ABT-199/GDC-0199 in Patients with High-Risk Chronic Lymphocytic Leukemia (CLL) at European Hematology Association Annual Meeting

• JNJ:

  Johnson & Johnson Announces Definitive Agreement To Acquire Aragon Pharmaceuticals, Inc.

• ELN, TEF:

  Wall Street Breakfast: Must-Know News

• ELN:

  Elan (ELN) flies 8.3% premarket after investors approve a $200M share repurchase plan, meaning Royalty Pharma’s bid for the company has now lapsed, freeing Elan to seek other buyers. Also rejected were deals with Theravance (THRX) and the acquisition of AOP Orphan Pharmaceuticals.

• WMT:

  PriceSmart: Counting On Colombia

• ELN:

  Elan Announces Results of EGM

• JNJ:

  Elan is holding an investors’ meeting today, where shareholders are due to vote on four proposals, including a share $200M buyback, a drug spin-off and a series of acquisitions. A vote in favor of any of the resolutions would void an offer of up to $8B from U.S. investment firm Royalty Pharma. Elan put itself up for sale on Friday, but still refused to engage with Royalty over the weekend, much to the latter’s frustration. One imagines that Johnson & Johnson (JNJ) must be pleased to be well out of it, having last week sold the rest of its ADRs in Elan for $332.5M.

• PM:

  E-cigarettes Vs. Tobacco: Know Your Risks, Or Risk Your Future

• IAU:

  Chinese Physical Gold Deliveries Match World Gold Production

• TEF:

  AT&T (T) has reportedly been thwarted in a €70B bid to acquire Telefonica (TEF) by Spain’s government, which has the power to stop the sale of any company that is deemed strategic. The U.S. carrier told state representatives that it would take on the Spanish operator’s €52B of debt as part of any transaction. Telefonica said it hasn’t “received any approach or…indication of interest,” from AT&T.

• CP, NSC:

  Canadian National Railway Is Highly Undervalued

• WMT:

  Wal-Mart: Is Reputation A Leading Indicator?

• HON:

  GE Threatened By Seminal Event This Week

• IAU:

  Warning: Bond Bears Might Be From The Twilight Zone

• ABT, ABBV:

  Cramer’s Mad Money – 9 Things To Watch In The Week Ahead (6/14/13)

• JNJ:

  Gloomy Prospects For Medical Device Companies

• DUK:

  7 Reasons To Own Utilities After The Recent Pullback

• PSX:

  Phillips 66 – Disciplined Company, But No Upside Left

• JNJ:

  The Safety Valve Of Dividend Growth Investing

• HON:

  Honeywell and Safran to Demonstrate Electric Green Taxiing System at Paris Air Show

• ABBV:

  Bristol-Myers Squibb’s (BMY) and AbbVie’s (ABBV) Elotuzumab helped patients with previously-treated multiple myeloma live for a median 33 months without the blood cancer getting worse in a Phase II trial. The drug was given with Celgene’s (CELG) Revlimid and the steroid dexamethasone. Elotuzumab is also being tested in two Phase III trials for multiple myeloma. (PR)

• IAU:

  Gartman: ‘Gold Is A Broken Commodity’

• SO:

  Southern Company: Naysayers Are Wrong On This Core Holding

• DUK:

  Duke Energy crews expect to have power restored to most customers by tonight

• ELN:

  Elan Is In Play

• WIN:

  Will Windstream Prosper With The Avaya Aura?

• TEF:

  Europe’s mobile carriers (VOD, FTE, TI, TEF) won’t like this: the EU is planning to scrap roaming fees for voice, text, and data services next year (possibly by July ’14) as part of an effort to create a common telecom market. The cuts are only expected to affect carrier revenues by 2% on average, but the impact on profits will likely be bigger, given the margins attached. Regulators have already announced plans to harmonize telecom regulations, and to make it easier for carriers to merge. “There are around 100 operators in Europe and only 4 in the US … That’s not sustainable if we’re going to have a single market,” a source tells the Telegraph.

• KMI:

  Kinder Morgan Partners (KMP) restarts the 307K bbl/day Trans Mountain pipeline after repair crews finished their work on a defect that prompted a small oil spill – roughly six barrels – earlier this week. KMP plans to almost triple the line’s capacity, which extends from Alberta to B.C. and Washington state, and critics were quick to seize on the spill: “Where oil moves, it spills,” says the head of B.C.’s Sierra Club.

• JPM
  12:27 PM “It could be a shockwave when the bond market eventually turns,” new JPMorgan (JPM) chief risk officer Ashley Bacon tells Tom Braithwaite. The reversal in the bond bull market has to be the most anticipated financial event ever, writes Braithwaite, but it’s still likely to ensnare at least one bank. Will it rise up the pyramid to touch the giants? [Financials, U.S. Economy] Comment!
• VET
  12:23 PM Vermilion Energy (VET) declares C$0.20/share Monthly dividend, in line with previous. For shareholders of record June 28.Payable July 15. Ex-div date June 26. (PR) [Dividends] Comment!
• COF
  12:18 PM Capital One (COF +0.8%) is downgraded from Buy to Hold with $63 price target at Rafferty Capital. Rafferty? That’s Dick Bove’s new shop. [Financials] Comment!
• LINE, LNCO
  12:17 PM Linn Energy (LINE -3.4%) and LinnCo (LNCO -4.3%) trade lower following a weekend Barron’s article discussing that LINE’s distributable cash flow may be overstated and concerns over the pending merger with Berry Petroleum (BRY -2.4%). Barron’s long-held view is that LINE’s accounting is aggressive because the company wants to recognize the financial benefits of the puts but not the costs. (earlier) [Energy, On the Move] 11 Comments
• URG
  12:17 PM Ur-Energy (URG +2.8%) gets a lift today from Cantor Fitzgerald, who initiated the shares with a Buy and a $1.40 price target. Cantor thinks URG is poised to become the next U.S.-based uranium producer, with initial in-situ recovery production expected later this summer. The firm adds that it expects to post further ratings upgrades as the company transitions from construction to production. [On the Move, Commodities] Comment!
• SCTY
  12:15 PM SolarCity (SCTY -0.5%) underperforms as Copperfield Research takes aim, arguing the solar panel installer/electricity seller is “nothing more than a hybrid of a specialty finance company and an engineering & construction company.” Among other things, Copperfield asserts SolarCity “materially inflated” its net present value (NPV) via questionable assumptions, and notes the company has been investigated by the IRS and U.S. Treasury Inspector General for possibly overstating the market value of its systems. The firm assigns SolarCity a value of $11.38, or 2x its estimated NPV book value. (full report) [Tech, Quick Ideas] Comment!
• PJC
  12:03 PM Piper Jaffray (PJC +0.7%) looks to boost its M&A business, inking a deal to buy middle-market M&A advisory firm Edgeview Partners for an undisclosed amount. The transaction is subject to regulatory approval and is expected to close in Q3. (PR) [Financials, M&A] Comment!
• 12:00 PM On the hour: Dow +1.12%. 10-yr +0.02%. Euro -0.03% vs. dollar. Crude +0.32% to $98.38. Gold -0.33% to $1383.05. Comment!
• VICL
  12:00 PM Vical (VICL +0.7%) trades in the green today after being initiated at Brinson Patrick with an Outperform and a price target of $7 a share. The firm says that Allovectin is poised to be a significant value driver for the company, beginning in Q2 with a database lock of its melanoma Phase III trial. They believe the results will be positive, which will position VICL with a blockbuster opportunity in the melanoma market. [Healthcare] Comment!
• CIT
  11:58 AM CIT Group (CIT +2.1%) is upgraded to Buy at Drexel Hamilton thanks to the company having $2B now available to return to shareholders after the lapsing of its agreement with the Fed. A$200M buyback has already been announced and analyst David Hilder sees a payout ratio of more than 50% over time. [Financials] Comment!
• HOS
  11:57 AM Hornbeck Offshore (HOS +5.7%) is upgraded to Overweight from Neutral with a $66 price target (from $60) at J.P. Morgan, which believes HOS has plenty of room to run despite gaining more than 50% YTD. The firm sees confidence building in the earnings and free cash flow prospects of the $1.2B newbuild program of 24 high-capacity, high-spec vessels, whose first delivery is expected later this month. [Energy, Quick Ideas, On the Move] Comment!
• FB
  11:47 AM Instagram (FB) will add video-sharing support on Thursday, TechCrunch reports. Such an update would be aimed at Twitter’s Vine 6-second video-sharing app, which has racked up 13M+ users in just 5 months. An Android Vine app launched earlier this month has already passed Instagram on Google Play download charts. But with a base of 100M+ monthly users connected via both its own social network and Facebook, Instagram should be a formidable rival. TechCrunch notes adding video support could also appeal to marketers if/when Instagram begins showing ads. [Tech] Comment!
• CHTR, TWC
  11:45 AM Deutsche Bank’s Doug Mitchelson doesn’t think Charter Communications (CHTR +1.6%) and Time Warner Cable (TWC -2.1%) can complete a deal that would pay TWC shareholders in the $110-$125 range. Instead, the analyst believes TWC shareholders would have to receive a price closer to $146 in order to satisfy the board. Also in the mix is Liberty Media (LMCA +0.7%) with its 27% stake in Charter. [Consumer, M&A] Comment!
• AKS
  11:44 AM AK Steel’s (AKS -2.2%) downside guidance was below expectations but Goldman Sachs believes the miss was widely expected as steel prices came under pressure. But the new guidance implied significantly higher than expected operating costs; excluding the impact of maintenance, the firm estimates gross profit per ton will decline 13% Q/Q. Goldman maintains its Sell rating and $2.60 target price. [Commodities, On the Move] Comment!
• LMT
  11:43 AM Decreased government defense spending will hit Lockheed Martin’s (LMT +0.9%) sales to the tune of 6% this year S&P (A-minus) says, but thanks to “solid cash generation, strong liquidity,” and prudent capital allocation, the ratings agency raises its outlook on LMT to Stable from Negative. 1 Comment
• RXN
  11:40 AM Shares in Rexnord (RXN -6%) slip after the company announces a public offering, saying that funds affiliated with Apollo Global Management plan to sell 11M shares, with an option on an additional 1.65M to cover over allotments. {{RXN]] will not issue shares in the offering, nor receive any proceeds. [On the Move] Comment!
• INFN
  11:38 AM Infinera (INFN -2.6%) gives back some of its recent gains after Jefferies’ George Notter cuts shares to Hold, arguing they’re fully valued even if “there’s no denying that current business trends at Infinera are very good right now.” Shares still +88% YTD following strong Q1 results and 2013 guidance, and heady expectations for 100G optical networking hardware demand. [Tech, On the Move] Comment!
• LGF
  11:36 AM S&P upgrades Lions Gate (LGF +0.9%) to B-plus from B citing decreased leverage following the repayment of a $65M loan, growth in discretionary cash flows, and an outlook for “modestly” improved credit metrics going forward. 1 Comment
• CELG
  11:31 AM The European Commission amends the marketing authorization for Celgene’s (CELG -0.2%) REVLIMID to include patients with MDS-related transfusion-dependent anemia when other treatments have failed or proven insufficient. The company has pursued clearance for the indication for some 7 years. (previous) [Healthcare] Comment!
• STO
  11:28 AM Production at the Oseberg field center in the Norwegian section of the North Sea is shut after an incident, and it is unclear when it will restart, operator Statoil (STO +0.5%) says. Oseberg field center processes oil and gas from the Oseberg, Oseberg Oest and Oseberg Soer fields, which produced 3.5M barrels of oil and 500M cubic meters of gas in April. [Energy] Comment!
• RHT
  11:26 AM A downgrade to Neutral from Susquehanna leads Red Hat (RHT -0.1%) to underperform ahead of Wednesday’s FQ1 report; the enterprise Linux kingpin is just $0.80 above its 52-week low of $44.92, following a rough Feb. quarter and downbeat Street commentary. BMO downgraded Red Hat to Market Perform on May 20. [Tech] Comment!
• ROP
  11:24 AM Roper Industries (ROP +1.7%) subsidiary Compressor Controls says its been assigned a new patent by the USPTO for its compressor-expander set critical speed avoidance technology. The patent defines the technology for “A control method and apparatus for critical rotational speed avoidance in a compressor expander set in a gas refrigeration system.” The technology has been applied to LNG applications as well as gas plants and other critical applications where the compressor-expander machine is core to the process. [On the Move] Comment!
• GILD
  11:23 AM Gilead (GILD +0.1%) says its investigational indolent non-Hodgkins lymphoma treatment idelalisib achieved an overall 53.6% response rate in patients whose disease has been non-responsive to rituximab. The results represent interim data from a Phase 2 trial. Detailed results will be presented Thursday in Switzerland. (PR) [Healthcare] Comment!
• CWH
  11:12 AM CommonWealth REIT (CWH +1.1%) responds to Corvex and Related’s latest letter, urging shareholders not to take any action, again insisting the consent solicitation is not valid and masks C&R’s intent to seize control of the company at a bargain price. (PR) [Financials] Comment!
• ALGN, HSIC
  11:11 AM Align Technology (ALGN +3.2%) moves up this morning after Stifel Nicolaus’ Jonathan Block tweaks his price target up to $40 from $38 and suggests taking advantage of recent volatility to buy the stock. Block says there are number of catalysts to drive the shares higher over the near term, including overly conservative FY14 earnings estimates, resolution of its patent litigation against ClearCorrect, and synergy from its alliance with Henry Schein (HSIC). [Healthcare, On the Move] Comment!
• ARUN
  11:10 AM Maxim starts Aruba (ARUN +2.7%) with a Buy and $17 PT, sending shares above $15. The enterprise Wi-Fi hardware vendor is still well below where it traded prior to delivering an FQ2 warning and light FQ3 guidance last month, and receiving many downgrades as a result. [Tech, On the Move] Comment!
• RH
  11:07 AM Shares of Restoration Hardware (RH +2.6%) are up gain again to brush aside a negative take in Barron’s amid Friday’s earnings-inspired rally. SA contributor Brian Nichols called it over the weekend, noting that despite the recent rally the company still only trades at 1.8X sales and has upside potential to improve margins. [Consumer, On the Move] Comment!
• CSIQ, LDK
  11:04 AM Chinese solar manufacturers react favorably to Beijing’s introduction of “reformed methods” to support them. The methods include easier financing, electricity subsidies, and a requirement that utilities buy all the electricity solar plants create. The government has also reiterated its call for industry consolidation. In addition to Canadian Solar (CSIQ +10% – previous), winners include LDK (LDK +8.8%), Yingli (YGE +11.8%), Daqo (DQ +17%), Trina (TSL +7.4%), and JinkoSolar (JKS +8%). Yingli just struck a deal to help develop 3GW worth of solar plants in Southern China by 2016. [Tech, On the Move] Comment!
• 11:00 AM On the hour: Dow +1.2%. 10-yr 0%. Euro +0.04% vs. dollar. Crude +0.17% to $98.24. Gold -0.31% to $1383.35. Comment!
• F
  10:59 AM Ford (F +2.2%) thinks it can cut into losses in Europe as new higher-margin vehicles start to sell amid higher demand on the continent. Ford’s head of sales in the region, Roelant de Waard, forecast sales in Ford’s main markets in Europe will increase about 3.7% Y/Y to about 14M in 2014. [Consumer] 1 Comment
• PMGLF.PK, ENB
  10:59 AM A 50% cut in Petrominerales’ (PMGLF.PK) market value has left its equity and net debt valued at the cheapest multiple to profit among any oil and gas explorer in the world with a market value higher than $250M, according to Bloomberg, which speculates its reserves, estimated at 40M-plus barrels of mostly high-quality light oil, could attract suitors such as Enbridge (ENB), TransCanada (TRP) or Pacific Rubiales (PEGFF.PK). [Energy, M&A] Comment!
• LL
  10:58 AM Lumber Liquidators (LL +2.6%) “has the potential to be one of the strongest growth stories in all of retail,” Piper Jaffray says, raising its price target on the shares to $97 from $90. Among the catalysts analyst Peter Keith cites are “accelerated market share gains, improvement in operational efficiency, and a compelling new store format.” SA contributor Jane Edmondson agrees, saying LL’s growth story is still “very much intact.” Note: Piper’s estimate puts a 30x multiple on the firm’s FY14 EPS estimate of $3.22 — consensus estimates have LL earning just $2.88 next year. [On the Move] Comment!
• WETF
  10:54 AM WisdomTree (WETF +3%) sails right through a downgrade from Buy to Hold by Citi’s William Katz. After the stock more than doubled over the past year, Katz suggests the upside is already discounted. Applying a valuation metric used for BlackRock (and adjusting for WisdomTree’s faster growth) leads to fair value for the shares of around $12, says Katz. [Financials, On the Move] Comment!
• FRO, SFL
  10:49 AM Frontline (FRO +23%) soars after John Fredriksen backs the sector for gains due to “high growth” in LPG production. Other shipping stocks on the move: Ship Finance International (SFL) +1.5%, Seadrill (SDRL) +1.2%, StealthGas (GASS) +3.4%, GasLog (GLOG) +3.2%. [Consumer] 3 Comments
• LLEN
  10:47 AM L&L Energy (LLEN +9.2%) pushes higher on news it will become a component of the Russell Global and Russell 3000 indexes, which LLEN hopes will boost liquidity and raise the stock’s visibility with institutional investors. [Energy, On the Move] Comment!
• TEVA
  10:44 AM In an effort to expand its pipeline of repiratory products, Teva Pharmaceutical (TEVA +0.4%) acquires MicroDose Therapeutx, a privately-held pharmaceutical and drug delivery company. Under the terms of the deal, TEVA will pay $40M up front, with additional payments of up to $125M for milestones and tiered royalty payments for the commercialization of MDT-637 and an earlier stage Asthma/COPD medicine. [Healthcare, M&A, Global & FX] Comment!
• IRBT
  10:41 AM iRobot (IRBT +6.4%) trades higher on what traders are calling a technical breakout. The company nabbed a $30M contract from the U.S. Army for robotic systems and spare parts. [Consumer, On the Move] Comment!
• SE, DPM
  10:39 AM Sandell Asset Management urges Spectra Energy (SE +1.1%) to take further steps to unlock value, including reviewing strategic alternatives for SE’s Canadian operations and DCP Midstream (DPM), after SE’s decision to drop its U.S. transmission assets into Spectra Energy Partners (SEP). The hedge fund believes SE has an intrinsic value of $48/share, or more than 40% over its current price. [Energy] Comment!
• TDC
  10:35 AM Teradata (TDC -0.4%) edges lower on an up day after Cowen starts coverage with an Underperform and $45 PT. Shares of the data warehousing and analytics hardware/software provider are down 10% YTD thanks to bad earnings news and concerns about share loss in a hotly contested market featuring IBM, Oracle, Greenplum (part of EMC/VMware’s Pivotal spinoff), and now Amazon’s Redshift [Tech] Comment!
• XHB, ITB
  10:34 AM NAHB Housing Market Index: +8 to 52, vs. consensus of 45. It’s the biggest one-month gain since 2002 and the first time above 50 for the index since April 2006. The reports is consistent with the NAHB forecast of a 29% increase in housing starts this year to more than 1M (first time since 2007), according to the group’s David Crowe. XHB +1.5%, [U.S. Economy] Comment!
• ROP
  10:30 AM Roper Industries (ROP) declares $0.165/share quarterly dividend, in line with previous. Forward yield 0.54%. For shareholders of record July 12. Payable July 26. Ex-div date July 10. (PR) [Dividends] Comment!
• PBR
  10:29 AM Petrobras (PBR +1.8%) is upgraded to Buy from Hold at Jefferies, citing encouraging progress in its upstream division which adds confidence that its ambitious production targets can be achieved. On Friday, PBR said it brought in a partner for its African operations and sold its stake in some small-scale hydroelectric plants, part of a plan to raise $9.9B from asset sales to fund new investments. [Energy, Quick Ideas, On the Move] Comment!
• ACT, ABBV
  10:28 AM The Supreme Court says the FTC can take action against deals struck between brand-name drug makers and manufacturers seeking to market generics. The case stems from FTC v. Actavis and revolves around so-called “reverse-payment agreements,” so named because the holder of a patent makes a payment to the generic challenger as opposed to the other way around. Some say the agreements amount to the splitting of monopoly profits at the expense of the public. Shares of Actavis (ACT -1.7%) fall on the news and Abbvie (ABBV +0.1%) trades largely flat after slipping initially. [Healthcare, Top Stories, Breaking News] Comment!
• BZF, EWZ
  10:27 AM Brazil is facing a ratings downgrade in early 2014, says Barclays, thanks to a combination of weak growth and fiscal deterioration. The central bank’s hawkish rhetoric is nice, but only a major change in fiscal policy will prevent the downgrade and “rekindle positive investor sentiment.” As a result, the real (BZF) should remain under pressure. Stocks (EWZ, BRF) continue to underperform. They failed to get a boost from easy monetary policy in 2012 and now must deal with a rate hike cycle. [Global & FX] Comment!
• LXP
  10:26 AM Lexington Realty Trust (LXP) declares $0.15/share quarterly dividend, in line with previous. Forward yield 5.00%. For shareholders of record June 28. Payable July 15. Ex-div date June 26. (PR) [Dividends] Comment!
• ECOM
  10:17 AM ChannelAdvisor (ECOM +5.4%) jumps on underwriter coverage day 4 weeks after delivering a strong IPO; Goldman, Raymond Janes, Pac Crest, and Needham have all launched coverage on the provider of e-commerce advertising/product listing services with bullish ratings. Goldman praises ChannelAdvisor’s “accelerating growth, and argues its scale (it handles $3.5B/year in gross merchandise volume and 100M SKUs) and industry fragmentation allow it to benefit from network effects. [Tech, On the Move, Quick Ideas] Comment!
• CSIQ
  10:13 AM Citing good execution and margin expansion, Nomura’s Nitin Kumar hikes the price target on Canadian Solar (CSIQ +10%) just slightly from $6.90 to $25. Kumar changes CSIQ’s peer group to “companies with significant project business” as the company’s system business should “generate 50%-plus earnings [in FY13-15] vs. 13% in 2012.” Kumar uses the new peer group’s target price-to-book value for FY14 (and a 20% discount for “execution risks and higher interest rates”) to arrive at the new PT. [Energy, On the Move] Comment!
• DB, BX
  10:12 AM Deutsche Bank (DB) is leading a wave of big banks ramping up exposure to single-family housing by extending credit to Wall Street firms so they can buy up homes to turn them into rentals. The bank reportedly just lent another $1.5B to Blackstone (BX) after an earlier $2.1B line got used up. Wayne Hughes’ American Homes 4 Rent has as much as a $1B line from Wells Fargo (WFC), and SilverBay Realty (SBY) just inked a $200M facility from Bank of America (BAC) and JPMorgan (JPM). [Financials] 2 Comments
• KCAP
  10:09 AM KCAP Financial (KCAP) declares $0.28/share quarterly dividend, in line with previous. Forward yield 10.69%. For shareholders of record July 05. Payable July 26. Ex-div date June 02. (PR) [Dividends] Comment!
• DLTR
  10:03 AM Dollar Tree (DLTR +2.9%) trades higher after JPMorgan backs up its Overweight rating and adds two bucks to its price target to take it to $55. The investment firm thinks the discounter will see stable gross margins amid an increase in square footage. [Consumer, On the Move] Comment!
• SRC
  10:03 AM Spirit Realty Capital (SRC) declares $0.3125/share quarterly dividend, in line with previous. Forward yield 6.30%. For shareholders of record June 28. Payable July 16. Ex-div date June 26. (PR) [Dividends] Comment!
• 10:00 AM On the hour: Dow +1.09%. 10-yr +0.06%. Euro +0.07% vs. dollar. Crude +0.41% to $98.47. Gold -0.14% to $1385.65. Comment!
• CVX, BP
  9:59 AM Angola shipped its first cargo of liquefied natural gas Sunday following delays of more than a year to its flagship 5.2M metric tons/year LNG project led by Chevron (CVX) and state-owned oil company Sonangol, with respective 36.4% and 22.8% stakes; BP, Eni (E) and Total (TOT) each hold 13.6% stakes. [Energy] Comment!
• EXR
  9:59 AM Extra Space Storage (EXR +2.3%) announces a private offering of $250M in exchangeable senior notes (settled in cash and shares upon exchange at a rate to be determined) and also says it will acquire 20 self-storage units in California for a total consideration of $196M. Meanwhile, Raymond James upgrades the shares to Strong Buy from Outperform. [On the Move] Comment!
• BLK, STT
  9:58 AM It’s still the “early days” for ETFs, according to iShares (BLK), which sees ETF AUM more than doubling to $3.5T by 2017. Among the key driving trends is the fast growth of self-directed accounts using ETFs – currently a $4T addressable market with a 9% growth rate. Along with BlackRock as industry giants are State Street (STT) and Vanguard. Smaller players include Schwab (SCHW), Northern Trust (NTRS), and WisdomTree (WETF). [Financials] Comment!
• MRVL
  9:57 AM Susquehanna upgrades Marvell (MRVL +2.3%) to Positive, sending shares above $11. The chipmaker/David Einhorn holding is now up 57% YTD, aided by an FQ1 beat, low expectations, and strong buyback activity. [Tech, On the Move] Comment!
• STSA
  9:56 AM Sterling Financial (STSA) declares special dividend of $0.35/share. For shareholders of record June 28. Payable July 12. Ex-div date June 26. (PR) [Dividends] Comment!
• PSEC
  9:54 AM Prospect Capital (PSEC) declares dividend for the month of Sep., Oct., Nov., and Dec., (PR) [Dividends] Comment!
• CAT
  9:53 AM Caterpillar (CAT) issues a two-year 1.8B yuan ($290M) bond with a coupon of 3.25%. The debt is rated A2 by Moody’s and A by S&P and Fitch. Meanwhile, Caterpillar plans to lay off 260 out of 800 production workers at a plant in South Milwaukee due to falling demand for mining equipment. Comment!
• NFLX
  9:52 AM Netflix (NFLX +5.1%) roars 6% higher after news of a content deal with DreamWorks Animation breaks. Though the partnership will significantly strengthen the company’s menu of children’s programming including the rights to air Shrek and Kung Fu Panda series, with financial terms undisclosed there is a wildcard in the mix. [Consumer, On the Move] 1 Comment
• ICE, NYX
  9:50 AM IntercontinentalExchange (ICE +1.9%) is set to win unconditional approval from EU regulators for its $8.2B purchase of NYSE Euronext (NYX +1.7%), reports Reuters. ICE actually took care of possible conditions ahead of time, announcing in March it would cap trading fees for 5 years on soft commodities at the Liffe should the merger go through. [Financials, M&A, On the Move] Comment!
• PXD
  9:49 AM Pioneer Natural Resources (PXD +3.6%) lifts higher at the open as BAML raises its price target for the shares to $200 from $165, saying it continues to be struck by the sheer scale of PXD’s resource potential. Notable Calls’ take: FBR got the ball rolling with its $220 target a month ago, but this is the first tier-1 blessing. [Energy, Quick Ideas, On the Move] Comment!
• ARMH
  9:45 AM British i-bank Numis cuts ARM (ARMH -4.1%) to Reduce, leading shares to slump out of the gate. ARM is now down 23% from its mid-May high of $50.56; a steep valuation (shares still go for 32x 2014E EPS) is a likely factor. Topeka recently started coverage at Neutral. [Tech, On the Move] Comment!
• PSEC
  9:43 AM Prospect Capital (PSEC +2.2%) plans to keep its payout in place for the rest of the year, declaring monthly dividends of just over $0.11/share for September through December. The company notes the rates it pays on liabilities are locked in for many years, while the rates it receives on assets float – “providing upside to shareholders as interest rates rise.” (PR) [Financials, On the Move] Comment!
• LLY, TTHI
  9:40 AM Eli Lilly (LLY +1.3%) agrees to take over the development of Type 2 diabetes treatment TT-401 from Canadian firm Transition Therapeutics (TTHI +4.8%). Lilly will pay $7M upfront to Transition and $240M in milestone payments as well as royalties, although Transition will pay Lilly $14M in three installments during a mid-stage study. (PR) [Healthcare] Comment!
• AMGN
  9:39 AM As expected, shares of Amgen (AMGN +1.3%) pop in early trading after a positive feature in Barron’s over the weekend. [Healthcare, On the Move] Comment!
• HIMX
  9:39 AM Himax Technologies (HIMX) declares annual dividend of $0.25/ADS. For shareholders of record July 19. Payable July 31. Ex-div date July 17. (PR) [Dividends] Comment!
• BIG
  9:35 AM Shares of Big Lots (BIG +2.9%) get a nice push higher in early trading after Barron’s tags it as a stock with significant upside. [Consumer] Comment!
• CHK
  9:33 AM Chesapeake Energy (CHK) declares $0.0875/share quarterly dividend, in line with previous. Forward yield 1.69%. For shareholders of record July 15. Payable July 31. Ex-div date July 11. (PR) [Dividends] Comment!
• VZ, TU
  9:33 AM Verizon (VZ) wants to enter the Canadian mobile market, and has “held exploratory talks” with minor local carrier Wind, The Globe and Mail reports. The Canadian government, fresh off relaxing foreign investment limits, is said to view Verizon “as the most likely foreign option” for bolstering competition in a market dominated by Telus (TU), Rogers (RCI), and Bell (BCE); ideally, Verizon would buy a small local carrier, then take part in upcoming spectrum auctions. Russia’s VimpelCom (VIP), the biggest investor in Wind, wants to sell its stake for $500M+. Telus’ efforts to buy another small rival, Moblicity, were recently blocked by Ottawa. [Tech, M&A] Comment!
• SKYW
  9:33 AM SkyWest (SKYW) declares $0.04/share quarterly dividend, in line with previous. Forward yield 1.13%. For shareholders of record June 28. Payable July 05. Ex-div date June 26. (PR) [Dividends] Comment!
• 9:31 AM At the open: Dow +0.91% to 15208. S&P +0.82% to 1640. Nasdaq +0.86% to 3453. Treasurys: 30-year +0.06%. 10-yr +0.08%. 5-yr +0.11%. Commodities: Crude +0.39% to $98.45. Gold -0.19% to $1384.95. Currencies: Euro +0.09% vs. dollar. Yen +0.65%. Pound -0.31%. 1 Comment
• PAA
  9:29 AM Plains Midstream Canada, a subsidiary of Plains All American Pipeline (PAA), has shut its Kemp pipeline after a recent spill of ~950 barrels of oil in Alberta. It’s strike two for PAA in the area, as Alberta’s government in April laid charges against Plains Midstream Canada for a 2011 pipeline rupture that resulted in the province’s largest oil spill in 36 years. [Energy] Comment!
• CYD
  9:28 AM China Yuchai International (CYD) declares dividend of $0.40/share. For shareholders of record June 28. Payable July 10. Ex-div date June 26. Additionally, the board declares special dividend of $0.40/share for FY12. (PR) [Dividends] Comment!
• BAC
  9:28 AM Bank of America’s (BAC) Article 77 hearing is on hiatus until July 8 to allow the presiding judge time on other cases. Day 8 of the hearing was an uneventful one, reports Mark Palmer, notable mostly for the judge admonishing an attorney representing the supporters to quit coaching (through gestures) a witness on the stand. [Financials] Comment!
• EPHE, THD
  9:26 AM Philippine (EPHE) and Thai (THD) stocks add 1.56% and 0.4% respectively to Friday’s gains in thin trading. Across the region : Malaysian (EWM) and Indonesian (EIDO, IDX) shares rise 0.57% and 0.3%, while the Straits Times (EWS, EWSS) tacks on 0.7%. Vietnamese equities (VNM) sell-off to the tune of 2%. [Global & FX] Comment!
• ORLY
  9:26 AM O’Reilly Automotive (ORLY) announces a proposed offering of $300M in senior notes which will be due in 2023. The company says the funds might be used for a variety of different items including buybacks and repayment of debt. [Consumer] Comment!
• AMD, INTC
  9:23 AM AMD +4.6% after Barron’s praises the chipmaker, arguing its SeaMicro server platform unit will help grow its share of an x86 server market where 96% of all hardware uses Intel’s (INTC) CPUs (per IDC). SeaMicro, acquired in 2012, has developed innovative tech (.pdf) for linking hundreds of CPUs in a dense, low-power fabric that’s well-suited for the “hyperscale” architectures embraced by Web/cloud firms, among others. The unit uses both AMD Opteron and Intel Atom CPUs, will eventually support ARM-based chips, and wants to license its tech to server OEMs. SeaMicro says it convinced Intel to supply it with Atom CPUs instead of costlier Xeon parts by arguing it “would sell [4x] as many Atom chips as Xeon chips, and that Intel would make [1.7x] the revenue as they would have with Xeon.” [Tech, Quick Ideas, On the Move] Comment!
• ERJ, SKYW
  9:22 AM Paris Air Show: Embraer (ERJ +4.1%) unveils potential orders for up to 365 of its new more fuel-efficient E-Jets E2 family of aircraft, including a firm order for 100 planes from launch customer SkyWest (SKYW) (PR). The regional carrier also has options for another 100 jets, which would make the whole deal worth $9.36B at list prices. International Lease Finance (AIG) signs a letter of intent (LOI) to acquire 50 jets from Embraer and takes an option for another 50 (PR). Five undisclosed airlines sign LOIs for a further 65 E2s (PR). [On the Move] Comment!
• CMCSA
  9:21 AM Comcast (CMCSA) is upgraded by Raymond James to a Strong Buy rating. A price target of $46 from the investment firm implies 16% upside potential. CMCSA +2% premarket. [Consumer] Comment!
• SBUX
  9:17 AM Starbucks (SBUX) will open its new juicery within weeks, according to Belus Capital. The company is looking to carve out of a piece of the juice bar market with “mixologists” that instill the same loyalty with consumers that its army of baristas do. [Consumer] Comment!
• CWH
  9:17 AM CommonWealth REIT (CWH) shareholders get another letter from Corvex and Related urging them to vote the board out. “We believe this continued value destruction is by design … without immediate change we believe the Portnoys will continue on their path.” The dissidents note ISS has recommended voting for dismissal of the entire board. [Financials] 1 Comment
• ORIG
  9:16 AM Ocean Rig UDW (ORIG) is awarded a contract for its ultra deepwater drillship Ocean Rig Skyros from a major oil company for five wells or a minimum of 275 days for drilling offshore West Africa, with an estimated backlog of ~$190M. ORIG says its total contracted backlog now stands at ~$5B. [Energy] Comment!
• 9:15 AM Market preview: U.S. stock futures track Asian and European shares higher as investors hold out hope that the Fed won’t start turning down the liquidity rush when the FOMC meets this week. The S&P mini is +0.8%. Telefonica is +3.4% following speculation that it was a buyout target for AT&T, while Terex slides 13.3% after an earnings warning. AMD is +5.3% on the heels of favorable review from Barrons. Later: NAHB Housing Market Index [Top Stories, On the Move, U.S. Economy] Comment!
• MDVN
  9:15 AM Shares of Medivation (MDVN) fall 6% premarket. Likely weighing on shares is Johnson & Johnson’s acquisition of Aragon, whose prostate cancer drug ARN-509 was the subject of a lawsuit MDVN filed claiming rights to the compound. [Healthcare, On the Move] Comment!
• OSH, FRO
  9:11 AM Premarket gainers: OSH +47%. FRO +21%. KNDI +16%. LDK +8%. MNKD +5%. AMD +5%. DVAX +5%. NFLX +5%. Losers: FOLD -29%. TEX -14%. MDVN -7%. [On the Move] Comment!
• BKS
  9:08 AM Barnes & Noble (BKS) says it will keep its lowered level of pricing on Nook products in place after last week it introduced a Fathers Day promotion. The Nook HD+ is listed at $149 for the 16GB device and $179 for the 32GB version. [Consumer] Comment!
• 9:00 AM On the hour: S&P +0.79%. 10-yr +0.04%. Euro -0.01% vs. dollar. Crude +0.25% to $98.32. Gold -0.28% to $1383.75. Comment!
• ATOS
  8:58 AM Atossa Genetics (ATOS) signs an agreement with the PPO HealthSmart, expanding access to the company’s ForeCYTE Breast Health Test. Shares +10.9% premarket. (PR) [Healthcare, On the Move] Comment!
• AKS
  8:58 AM AK Steel (AKS) sees a higher than expected Q2 EPS loss of $0.38-$0.33, which may not compare to -$0.09 consensus estimate, but expects a 4%-5% increase in shipments Q/Q to 1.34M-1.36M tons due to strength in the automotive market. AKS expects its Q2 average selling price/ton to rise ~1% to ~$1,055/ton, primarily due to lower spot market prices for carbon steel products. AKS +0.8% premarket. [Commodities] Comment!
• LOW
  8:54 AM Lowe’s (LOW) deal to buy Orchard Supply stores in California is interesting to analysts because it’s a move into smaller-sized stores. Orchard stores – which were once under the Sears Holdings umbrella – average 36K square feet compared to Lowe’s spacey stores that average 113K square feet. Could a new Lowe’s brand be on tap? [Consumer] Comment!
• NVO, LLY
  8:54 AM BofA cuts its recommendation on Novo Nordisk (NVO -2.35%) to “neutral” from “buy” on concerns that data that Eli Lilly (LLY) is due to present at a conference later this week will show that the latter’s dulaglutide diabetes treatment is better than Novo’s Victoza. Novo investors are also worried about Sanofi’s (SNY +2.4%) Lantus and a combination of the product with another drug called Lyxumia. Sanofi is scheduled to present at the conference as well but Novo is not. [Healthcare] Comment!
• MNKD
  8:49 AM MannKind (MNKD) says a Phase 3 trial of Afrezza in patients with type 2 diabetes is complete. Shares are +4% premarket. The company plans to report data from the trial later in the summer. (PR) [Healthcare] Comment!
• SFD, TSN
  8:49 AM Smithfield Foods (SFD) moves up 1.4% premarket after Starboard Value pitches that a piecemeal sale of the company might make sense. The sum-of-the-parts chatter could also provide another lift for the packaged meats sector as a whole. On watch: Tyson Foods (TSN), Seaboard Corporation (SEB), Hillshire Brands (HSH), and Hormel Foods (HRL). [Consumer, On the Move] Comment!
• TEX
  8:46 AM Terex (TEX) -12.5% premarket after issuing downside EPS guidance for Q2 and FY 2013, citing a softer marketplace for its construction, material handling and port solutions, and cranes operations. TEX sees Q2 EPS of $0.50-$0.60 vs. $0.82 consensus estimate and FY13 EPS of $1.90-$2.10 vs. $2.56 consensus and below its prior guidance of $2.40-$2.70. [On the Move] Comment!
• TLT, TBT
  8:42 AM More on Empire State: The headline number is a big beat, but employment conditions soften with the Number of Employees index falling to 0 from 5.68, and the Average Workweek falling to -11.29 from -1.14. New Orders fell to -6.69 from -1.17. Shipments dropped to -11.77 from about 0. The 6-month outlook inched down to 25. What rose? Prices received: To 11.29 from 4.55. Treasury prices (TLT, TBT) remain flat on the session. (full report) [U.S. Economy] 1 Comment
• GREK
  8:40 AM There’s a “fraying political consensus” in Greece and it is most assuredly a credit negative factor, Moody’s says. Leaders will meet tonight to discuss the shutdown of state broadcaster ERT, an event which has sparked renewed protests and unrest in Athens. Meanwhile, stocks (GREK -7% premarket) continue to struggle as the ASE falls 2%. (previous) [Global & FX] Comment!
• VALE
  8:39 AM Vale (VALE) sees further local currency depreciation countering cost rises and a slowdown in Chinese iron ore demand. The real, the worst-performing emerging market currency in the past three months, could weaken to ~2.4 from 2.15 per U.S. dollar, bolstering Brazil’s competitiveness, while Chinese demand growth for iron ore and steel is expected to slow to ~5% from 10% in the first five months of this year. [Commodities] Comment!
• MPAA
  8:39 AM More on Motorcar Parts of America’s (MPAA) FQ4: Rotating electrical net sales up 18.2% Y/Y while gross profit for the segment improved. The company acknowledges it can’t continue investments in Fenco after cost savings failed to deliver. (PR) [Consumer, Earnings] Comment!
• BIOS
  8:36 AM BioScrip (BIOS) agrees to acquire fellow home-infusion company CarePoint Partners for $223M in cash, or a net $178M when taking into account a $45M future tax benefit that’s related to the deal. CarePoint is expected to generate $160M in annual revenues and will add 20,500 patients a year to BioScrip’s roster, giving the latter a total of 100,000 patients. (PR) [M&A, Healthcare] Comment!
• PNK, ASCA
  8:31 AM Pinnacle Entertainment (PNK) says it worked out an agreement in principle with the FTC that will allow its purchase of Ameristar Casinos (ASCA) to move forward. The company now has more time to sell a casino in Lake Charles, Louisiana and St. Louis, Missouri to satisfy regulatory concerns. [Consumer] Comment!
• 8:30 AM June Empire State Survey: Manufacturing +7.84 vs. +0.50 expected, +1.43 prior. [U.S. Economy] 2 Comments
• JNJ
  8:27 AM Johnson & Johnson (JNJ +0.6%) has agreed to acquire privately held Aragon Pharmaceuticals for $650M in cash upfront and a further $350M in milestone payments. Aragon is carrying out Phase II trials for its prostate cancer drug ARN-509. The deal excludes the company’s experimental breast-cancer treatment, which will be spun off into a separate company called Seragon Pharmaceuticals. (PR) [Healthcare] Comment!
• CRZO
  8:26 AM Carrizo Oil & Gas (CRZO) +2.3% premarket after raising its Q2 oil production guidance to 10,800-11,200 bbl/day from 9,600-10,000 bbl/day and its full-year 2013 crude oil production growth target to 40% from 28%, based on strong Eagle Ford shale results. Full-year capex plan is raised to $530M-$540M from $500M. [Energy, On the Move] Comment!
• XLF, PGF
  8:26 AM “Higher rates without meaningful economic growth are bad for banks (XLF), says FBR’s Paul Miller, making a counterpoint to last week’s line of bank executives welcoming the recent increase in interest rates. KBW’s Chris Mutascio is also skeptical, noting short-term rates driving loan pricing could stay flat while assets pegged to long-term yields lose value. [Financials] Comment!
• TSLA
  8:25 AM Shares of Tesla Motors (TSLA) move 2.6% higher premarket to $102.91 with a fresh Overweight rating and $150 price target from Global Equities helping to lift sentiment early in the week. The investment firm thinks Tesla is creating a “new industry” with its electric vehicles boasting solid performance and muscle. [Consumer, On the Move] 4 Comments
• FOLD
  8:25 AM Amicus Therapeutics (FOLD) falls 25% premarket as the company holds a conference call to discuss the regulatory strategy for its Fabry disease treatment migalastat HCL. FOLD says it plans to incorporate information from three trials in an NDA: Trial 011 (top-line data expected in Q4), trial 012 (top-line data expected in H2 2014), and data from a long-term integrated Phase 2 study. An FDA meeting to discuss Fabry Monotherapy’s approval pathway is now expected in H2 2014. (webcast) [Healthcare, On the Move] Comment!
• TM
  8:21 AM Toyota (TM) pulls the plug on the practice of allowing warranties to be sold online by third parties and will limit sales to within the same state a consumer buys a vehicle. The automaker indicated it was concerned with running afoul of state commerce laws, but industry insiders think the move is designed to keep dealerships happy. Last year, Toyota Financial Servives sold over 500K extended service contracts providing a revenue stream for both the automaker and dealerships. [Global & FX, Consumer] Comment!
• JPM
  8:20 AM JPMorgan (JPM) ups its money-market funds’ transparency, beginning on Tuesday to disclose the amount of liquid assets held in its money-market funds. The move follows similar actions by Goldman and BlackRock and comes amid the SEC’s new rules regulating the industry. [Financials] Comment!
• BA
  8:19 AM Paris Air Show: Boeing (BA) receives an order for nine 777-300ER jets from Qatar Airways in a deal valued at $2.8B at list prices, with the jets to be delivered in early 2014. The companies will probably then finalize an option for another seven planes (PR). Looking forward, Boeing believes that its lineup of commercial airplanes positions it for future growth. Meanwhile, senior company exec Chris Chadwick reckons the firm could sell 100-200 KC-46 refueling tankers, which are based the 767, to international customers over the coming years. Comment!
• MPAA
  8:16 AM Motorcar Parts (MPAA): FQ4 EPS of -$0.14 misses by $0.11. Revenue of $89.34M beats by $6.6M. (PR) [Earnings, Breaking News, Consumer] Comment!
• GRH
  8:15 AM GreenHunter Resources (GRH): Q1 EPS of -$0.25 misses by $0.09. Revenue of $8.59M beats by $0.72M. (PR) [Earnings, Breaking News] Comment!
• SAPMY.PK, E
  8:13 AM Saipem (SAPMY.PK), Italy’s largest oil and gas engineer, plunges to four-year lows, knocking 25% off its value, in Milan trading after cutting its earnings guidance for the second time this year. Saipem reduces its EBITDA outlook by as much as €750M ($1B), saying it won’t be able to recover rising costs for projects in Algeria. Eni (E) owns 43% of Saipem. [Energy, On the Move] Comment!
• AMZN
  8:09 AM Amazon (AMZN) adds Disney Pixar titles to its LoveFilm streaming service in the U.K. Current subscribers will have access to the children’s hits from the studio at no extra cost. (Related: Netflix and DreamWorks Animation strike a deal for an original kids series) [Tech, Consumer] Comment!
• 8:05 AM Three breakfast reads: 1) From the ashes of Webvan, Amazon builds a grocery business 2) Intel Could Hit A Share Price Of $40 By 2016 3) Microsoft Must Share in PC Pain to Profit [Consumer, Tech] Comment!
• 8:05 AM Pay attention to the Fed’s updated economic projections set to be released at the conclusion of its policy meeting on Wednesday, writes Jon Hilsenrath. At GDP growth of 2.6% this year and 3.2% in 2014, the Fed is more optimistic than the Street (2.3% and 2.8%). How the Fed revises these numbers (along with estimated unemployment and inflation) will be the “critical issue” for projecting any changes to QE. [U.S. Economy] Comment!
• MWV
  8:03 AM MeadWestvaco (MWV) says it now sees Q2 profits for the food and beverage segment of $45-50M. “Unanticipated costs and lower productivity associated with a planned major maintenance outage and subsequent start-up issues” will hit results, although the affected Covington, Va. mill is now operating normally. (PR) Comment!
• UA
  8:01 AM Under Armour (UA) plans to launch a performance monitoring watch for consumers that could break new ground. The watch will use a variety of data tracking to “score” a workout on a scale between 0 and 10. (h/t Brian Sozzi) [Consumer] 1 Comment
• 8:00 AM On the hour: S&P +0.74%. 10-yr +0.13%. Euro -0.03% vs. dollar. Crude +0.4% to $98.46. Gold -0.29% to $1383.55. Comment!
• ERJ, AIG
  7:58 AM Paris Air Show: Embraer (ERJ) has launched the second generation the E-Jets family of aircraft, and is reportedly already lining up orders for 200 planes. Regional carrier SkyWest will be the launch customer for the E-Jets 2 with a booking for 100 aircraft, while AIG’s (AIG) Lease Finance Corp also plans to order 100 of the jets. (PR) Comment!
• DOW
  7:57 AM Sadara Chemical, Dow Chemical’s (DOW) JV with Saudi Aramaco, secures loan facilities worth ~$10.5B to support construction of a $19.3B petrochemical complex at Jubail in Saudi Arabia. Dow expects Sadara to deliver EBITDA margins of 35%-40% and a stream of equity earnings for Dow averaging $500M/year during the first 10 years following start-up, scheduled for 2015. [Commodities] Comment!
• PTLA
  7:51 AM Morgan Stanley initiates Portola Pharmaceuticals (PTLA) at Overweight with a $32 price target representing a 60% upside from Friday’s close. The company went public last month in an offering led by … Morgan Stanley. [Healthcare] Comment!
• MTG, RDN
  7:46 AM John Paulson’s getting a lot of ink for his losing gold bet, but he reminds investors his gold funds make up just 2% of AUM. His big bets (MTG, RDN, FNF, GNW) on a continued housing recovery are paying off, and he sees further big upside, notably in Radian and Genworth. [Financials] Comment!
• SODA, WHR
  7:45 AM More on the SodaStream (SODA) – Whirlpool (WHR) deal: The quick analyst take on the collaboration between the companies is that clear benefits exist for both with SodaStream gaining a major partner and Whirlpool jumping into a new product line. Though it’s still very early in the game, the broadening out of the home carbonation business isn’t great news for soda sellers (KO, PEP, DPS). [Consumer] 1 Comment
• F
  7:42 AM Ford (F) expects to export more vehicles from India as it seeks cost-cutting initiatives. Chennai, India is one of the locations where the automaker has a global platform set up for manufacturing new models. [Consumer] 3 Comments
• COV
  7:39 AM Covidien (COV) publishes the final results of the pivotal trial for its Pipeline embolization device for the treatment of patients with an unruptured large or giant wide-necked aneurysm in Radiology, the official peer-reviewed journal of the Radiological Society. Data from this trial led the FDA to approve the treatment in 2011. (PR) [Healthcare] Comment!
• NFLX
  7:37 AM More on the Netflix (NFLX) – Dreamworks Animation deal: The partnership between the two media players calls for 300 hours of original programming and appears to be a deeper commitment by Netlflix toward children’s programming. Though Netflix let a deal for content from Viacom’s Nickolodean expire early this year, it now has Dreamworks and Disney (starting in 2016) supplying it with content for kids. Financial terms weren’t disclosed. NFLX +1.4% premarket [Consumer] 6 Comments
• AIG
  7:35 AM AIG slips 1.2% premarket after giving the buyers of ILFC another 6 weeks (until July 31) to close on the purchase. During this extended time, AIG will be free to pursue other avenues for ILFC, including sale to another party or an IPO. (8-K) [Financials, M&A] Comment!
• AAPL
  7:28 AM Apple (AAPL) comments on government data inquiries, saying it received 4K-5K requests from law enforcement over the 6 months ended May 1, with most stemming from local police matters. “Regardless of the circumstances, our legal team conducts an evaluation … only if appropriate, we retrieve and deliver the narrowest possible set of information to the authorities.” Also noted: Conversations over iMesssage and FaceTime are encrypted and not even Apple can decrypt the data. 2 Comments
• SODA, WHR
  7:20 AM SodaStream (SODA) announces a collaboration with Whirlpool (WHR) that will see the companies jointly develop a home carbonation system under the KitchenAid brand. The product is expected to be available in Q4. [Consumer] 5 Comments
• ELN, THRX
  7:17 AM Elan (ELN) flies 8.3% premarket after investors approve a $200M share repurchase plan, meaning Royalty Pharma’s bid for the company has now lapsed, freeing Elan to seek other buyers. Also rejected is a deal with Theravance (THRX) and the acquisition of AOP Orphan Pharmaceuticals. [Healthcare, On the Move] Comment!
• GM
  7:14 AM General Motors (GM) expands a previous recall of SUV models to include another 231K vehicles and bring the total to 480K vehicles. The recall is to address an issue with a potential electrical short which could cause a fire. [Consumer] Comment!
• TXRH
  7:14 AM BofA initiates coverage on Texas Roadhouse (TXRH) with a Buy rating and $28 price target. [Consumer] Comment!
• WY
  7:08 AM Weyerhauser (WY) raises cash for its Longview Timber purchase, announcing a 28M share secondary and an offering of 10M mandatory convertible preference shares. The offering price for the convertibles is expected to be $50 each and (unless converted earlier) they will automatically convert into common shares in 3 years. The stock’s off 1.1% premarket. Comment!
• GLD
  7:01 AM Gold (GLD) could fall to $1,200 soon, says BAML metals strategist Michael Widmer, acknowledging strong physical demand but saying it’s investor demand required to move prices higher. His team, however, is far more bullish for later this year, and sees the price retaking $1,700 by year’s end. “There are a few scenarios we are looking at (for H2).” [Commodities] 7 Comments
• 7:00 AM On the hour: S&P +0.9%. 10-yr +0.05%. Euro -0.03% vs. dollar. Crude +0.63% to $98.69. Gold -0.2% to $1384.85. Comment!
• NRP
  6:55 AM Abraxas (ABAS) inks a deal to sell the majority of the company’s non-operated Bakken properties to Natural Resource Partners (NRP) for $35.3M plus the assumption of about $8.1M in AFEs from 22 producing wells. Including this move, Abraxas has divested about 502 boepd for $47.3M since the start of the year. The company now estimates 2013 production of 4,550-4,700 boepd. (PR) [Energy] 1 Comment
• TWX, IMAX
  6:54 AM Man of Steel took in $125.1M over the weekend (Thursday-Sunday) to soar above the estimate of analysts and set up the Warner Bros. (TWX) film for a trilogy. Close to 80% of the first-run showings were in 3-D and IMAX. [Consumer] 1 Comment
• VOLVY.PK
  6:49 AM Volvo (VOLVY.PK) reports it delivered 16,372 vehicles in May, a 9% drop compared to last year as a solid month in South America couldn’t offset softness in North America and Europe. [Consumer, Global & FX] Comment!
• F
  6:44 AM Ford (F) CEO Alan Mulally says he sees the Asia-Pacific region accounting for up to 40% of the automaker’s sales within four or five years. The exec is in India just ahead of the launch of the EcoSport compact crossover in the nation. [Consumer] 2 Comments
• NFLX, DWA
  6:41 AM Netflix (NFLX) signs a multi-year deal with DreamWorks Animation (DWA) for new original series to air on the streaming service. The new shows will include characters inspired by Dreamworks Animation’s franchises. [Consumer] Comment!
• SPY, QQQ
  6:38 AM Stocks look to open the week with big gains, S&P 500 (SPY) futures +0.9% and Nasdaq 100 (QQQ) futures +1%. The Nikkei gained 2.7% overnight and Europe is sharply higher as well, the Stoxx 50 +1.6%. 3 Comments
• LOW
  6:37 AM Lowe’s (LOW) snaps up Orchard Hardware Stores out of bankruptcy in a deal which will add 60 new stores in California. Under the terms of the transaction, the company will pay $205M for Orchard and will assume some debt. [Consumer, M&A] Comment!
• EADSF.PK
  6:29 AM Paris Air Show: German aircraft leasing company Doric Asset Finance has signed a memorandum of understanding to purchase 20 Airbus (EADSF.PK) A380 jets in a deal worth $8B at list prices. The deal will be finalized in the coming months, while deliveries will begin in 2016. Meanwhile, Airbus CEO Fabrice Brégier said the planemaker is on course to more than double its profit margin by 2015 via increased efficiency and a revamped management. Comment!
• GE, BA
  6:23 AM Paris Air Show: GE Capital Aviation Services, GE’s (GE) aircraft leasing arm, has confirmed that it has committed to purchasing 10 Boeing (BA) 787-10X aircraft in a deal valued at$2.9B at list prices, pending the launch of this larger version of the Dreamliner. SkyMark Airlines plans to buy at least four Boeing 737 MAX aircraft, making the carrier the first from Japan to commit to the latest variant of the 737. 2 Comments
• JNJ
  6:11 AM Elan is holding an investors’ meeting today, where shareholders are due to vote on four proposals, including a share $200M buyback, a drug spin-off and a series of acquisitions. A vote in favor of any of the resolutions would void an offer of up to $8B from U.S. investment firm Royalty Pharma. Elan put itself up for sale on Friday, but still refused to engage with Royalty over the weekend, much to the latter’s frustration. One imagines that Johnson & Johnson (JNJ) must be pleased to be well out of it, having last week sold the rest of its ADRs in Elan for $332.5M. [Healthcare, M&A, Top Stories] Comment!
• 5:37 AM Car makers have been facing increasing regulatory pressure to sell zero-emission vehicles, with New York, New Jersey and seven other states following California in demanding that a minimum number of new-car sales will be electric, plug-in hybrid and hydrogen-powered by 2025 (in California, the goal is 25%). This is all very nice, except consumers are largely uninterested, partly due to cost. Still, 2025 remains a long way off. [Consumer] Comment!
• UAL
  5:11 AM United Continental Holdings (UAL) is finally enjoying some smooth flying after an “awful” 2012, CEO Jeff Smisek has said. Last year, the carrier lost $723M and suffered a wave of canceled and delayed flights, partly as an after-effect of the 2010 merger between United Airlines and Continental. “For far too long, we’ve operated this company as an airline. Airlines don’t make money,” Smisek added. [Consumer] 1 Comment
• GRA
  4:57 AM W.R. Grace (GRA) is due in court this morning for a hearing over a bankruptcy restructuring plan. Exiting Chapter 11 would actually be a remarkable event for W.R. Grace – the specialty chemical manufacturer been in bankruptcy protection for an astounding 12 years. The company’s has nevertheless thrived, helped by the shale revolution. “Obviously, we’re all eager to come out of bankruptcy,” says CFO Hudson La Force. Obviously. 1 Comment
• EADSF.PK, AIG
  4:41 AM Paris Air Show: Airbus (EADSF.PK) is reportedly poised to receive an order for 50 A320neo jets from AIG (AIG) unit International Lease Finance in a deal worth $5B at list prices. Airbus is also set to win a booking worth more than $4B for over 10 A380 planes from leasing company Doric Asset Finance. The A380 has otherwise not been popular with leasing firms, partly because it’s expensive to keep refitting the jumbo for different customers. Comment!
• GE, TUIVY.PK
  4:33 AM Paris Air Show: GE Capital Aviation Services, GE’s (GE) aircraft leasing arm, is reportedly likely to order 10 Boeing 787-10 jets when the planemaker launches the latest version of its Dreamliner tomorrow. Meanwhile, TUI Travel (TUIVY.PK) has confirmed a booking to acquire 60 737 Max jets, with the deal worth $6.1B at list prices. Comment!
• FEZ
  4:08 AM European equities (FEZ) follow Asian stocks higher as traders wait on the FOMC, which is due to meet tomorrow and on Wednesday. “Investors may be getting used to the idea that a very gradual tapering isn’t such bad news, considering that the (U.S) economy is slowly recovering,” says Mirabaud Securities’ John Plassard. Telefonica is +2.3% on buyout speculation involving AT&T. EU Stoxx 50 +1.1%, London +0.8%, Paris +1.3%, Frankfurt +1.3%, Milan +0.05%, Madrid +0.6%. [Global & FX, Top Stories, On the Move] Comment!
• FXY, JYN
  3:59 AM Asian shares rise ahead of the FOMC’s latest meeting this week, with tepid economic data in the U.S. on Friday perhaps convincing investors that the Fed won’t announce an early change to its $85B-a-month bond-buying program. Japanese stocks increase sharply for a second consecutive session, boosted by bargain-hunting following the recent sell-off and the weakening yen. Japan +2.7%, Hong Kong +1.1%, China -0.3%, India +0.4%. Dollar-yen (FXY) +0.8% at $95.02. [Global & FX, Top Stories, On the Move] Comment!
• SFD
  3:37 AM Activist investor Starboard Value has reportedly taken a 5.7% stake in Smithfield (SFD) and is urging the company to split up into three rather than complete its $4.7B acquisition by China’s Shuanghui. Starboard reckons Smithfield could be worth $44-55 if it were to break up into separate U.S. pork production, hog farming and international-sales companies, well above Shuanghui’s offer of $34 a share. [M&A, Top Stories] Comment!
• FTE
  3:15 AM France’s government has instructed its three representatives on France Telecom’s (FTE) board to vote to keep CEO Stephane Richard at a crucial directors’ meeting today to discuss his future. The meeting comes after Richard was placed under formal investigation as part of a probe into a €285M government arbitration payout to a businessman in 2008. Richard also has the support of employee shareholders, who hold one seat. [Tech, Consumer, Top Stories] Comment!
• ABB
  3:05 AM ABB (ABB) has appointed Ulrich Spiesshofer, the head of its automation and motion division, as its new CEO following the unexpected resignation of Joe Hogan in May for personal reasons. “Ulrich has been a key force in shaping and implementing ABB’s strategy,” said ABB Chairman Hubertus von Grunberg. Spiesshofer will take over at ABB, the world’s largest supplier of industrial motors, on September 15. (PR) Comment!
• T, TEF
  2:59 AM AT&T (T) has reportedly been thwarted in a €70B bid to acquire Telefonica (TEF) by Spain’s government, which has the power to stop the sale of any company that is deemed strategic. The U.S. carrier told state representatives that it would take on the Spanish operator’s €52B of debt as part of any transaction. Telefonica said it hasn’t “received any approach or…indication of interest,” from AT&T. [Tech, Consumer, Top Stories] 3 Comments
• TWX
  2:13 AM Time Warner’s (TWX) “Man of Steel” enjoyed a super opening weekend, generating almost $200M in worldwide ticket sales, including $125.1M in the U.S. and Canada. Given that the Superman reboot has also taken in $170M from promotional partners, the film has nearly covered its $375M production and marketing costs. The success of the film so far has strengthened speculation about sequels and a “Justice League” flick. [Top Stories, Consumer] Comment!
• KKR, BX
  1:52 AM KKR (KKR), Blackstone (BX), Carlyle (CG) and prospective strategic buyers such as U.K.-based Inmarsat (IMASF.PK) and Australia’s NewSat (NWTLD.OB) are among the suitors to have reportedly placed first-round bids for the satellite operations of Singapore Telecoms’ Australian unit, Optus, which SingTel values at over A$2B ($1.9B). SingTel advisers Credit Suisse (CS) and Morgan Stanley (MS) will provide a loan of A$1.7B that the acquirers can use to finance the deal. [Financials, Tech, Consumer, M&A] Comment!
• INDY, ICN
  1:38 AM The Reserve Bank of India has kept its benchmark interest rate at 7.25%, a decision that comes against a background of falling inflation and stuttering growth, which had prompted speculation that the RBI may cut rates. (PR) [Breaking News, Global & FX, Top Stories] Comment!
• 12:00 AM Monday’s economic calendar: 8:30 Empire State Mfg Survey 10:00 NAHB Housing Market Index Comment!

Top Stories

• Wall Street Adds to Declines; Energy, Bank Shares Drag
• Can Superheroes Save the Hollywood Box Office?
• How to Gain an Edge Against Digital Spies
• Consumer Sentiment Slips in June
• Fed’s Bond-Buying Wild Card: Inflation Expectations
• U.S. Will Benefit From Emerging Market Slump: Rich Bernstein
• Young Americans Are Ditching Credit Cards
• EU Recovery Will Be the Big Surprise of 2013: Johnson
• Refinancings Plunge as Bond Yields Rise
• Industrial Output Flat in May

Analysts’ Upgrades

• Advent Software (NASDAQ: ADVS) was upgraded by analysts at JPMorgan Chase from an “underweight” rating to a “neutral” rating. They now have a $35.00 price target on the stock, up previously from $28.00. 6.1% Upside.
• Advent Software (NASDAQ: ADVS) was upgraded by analysts at Wedbush from a “neutral” rating to an “outperform” rating. They now have a $38.00 price target on the stock, up previously from $27.00. 15.2% Upside.
• Apollo Investment (NASDAQ: AINV) was upgraded by analysts at Wells Fargo from an “underperform” rating to a “market perform” rating.
• Bankers Petroleum Ltd. (TSE: BNK) was upgraded by analysts at Cormark from a “buy” rating to a “top pick” rating.
• CME Group (NYSE: CME) was upgraded by analysts at ISI Group from a “neutral” rating to a “buy” rating. They now have a $80.00 price target on the stock, up previously from $70.00. 7.9% Upside.
• Computer Sciences (NYSE: CSC) was upgraded by analysts at BNP Paribas from a “hold” rating to a “buy” rating. They now have a $50.00 price target on the stock. 12.1% Upside.
• Vinci SA (EPA: DG) was upgraded by analysts at Aurel – BGC to a “buy” rating. They now have a €48.00 ($62.34) price target on the stock.
• Eni S.p.A. (NYSE: E) was upgraded by analysts at Sanford C. Bernstein from a “market perform” rating to an “outperform” rating. They now have a $54.00 price target on the stock, up previously from $49.00. 21.3% Upside.
• Consolidated Edison (NYSE: ED) was upgraded by analysts at Citigroup from a “neutral” rating to a “buy” rating.
• Edison International (NYSE: EIX) was upgraded by analysts at Sanford C. Bernstein from a “market perform” rating to an “outperform” rating. They now have a $55.00 price target on the stock. 17.6% Upside.
• Enersis S A (NYSE: ENI) was upgraded by analysts at Sanford C. Bernstein from a “market perform” rating to an “outperform” rating.
• EnerNOC (NASDAQ: ENOC) was upgraded by analysts at JPMorgan Chase from a “neutral” rating to an “overweight” rating. They now have a $18.50 price target on the stock. 43.4% Upside.
• Fibria Celulose S.A. (NYSE: FBR) was upgraded by analysts at Santander from an “underperform” rating to a “hold” rating.
• Fortis Incorporated (TSE: FTS) was upgraded by analysts at Canaccord Genuity from a “hold” rating to a “buy” rating.
• Grupo Mexico S.A. de C.V. (NASDAQ: GMBXF) was upgraded by analysts at Citigroup from a “neutral” rating to a “buy” rating.
• GameStop Corp (NYSE: GME) was upgraded by analysts at Oppenheimer from a “market perform” rating to an “outperform” rating. They now have a $50.00 price target on the stock, up previously from $27.00. 33.2% Upside.
• Great Portland Estates (LON: GPOR) was upgraded by analysts at UBS AG to a “buy” rating. They now have a GBX 600 ($9.14) price target on the stock, down previously from GBX 620 ($9.45).
• Groupon (NASDAQ: GRPN) was upgraded by analysts at Deutsche Bank from a “hold” rating to a “buy” rating. They now have a $10.00 price target on the stock, up previously from $6.00. 45.8% Upside.
• GDF Suez SA (EPA: GSZ) was upgraded by analysts at Grupo Santander to a “buy” rating. They now have a €18.05 ($23.44) price target on the stock.
• Hormel Foods Co. (NYSE: HRL) was upgraded by analysts at KeyBanc from a “hold” rating to a “buy” rating. They now have a $48.00 price target on the stock. 20.5% Upside.
• Hunting (LON: HTG) was upgraded by analysts at JP Morgan Cazenove to an “underperform” rating. They now have a GBX 727 ($11.08) price target on the stock, down previously from GBX 761 ($11.60).
• Lloyds Banking Group PLC (LON: LLOY) was upgraded by analysts at Mediobanca SpA to an “outperform” rating. They now have a GBX 67 ($1.02) price target on the stock.
• Lloyds TSB Group plc (NYSE: LYG) was upgraded by analysts at ING Group from a “neutral” rating to an “outperform” rating.
• M&T Bank Co. (NYSE: MTB) was upgraded by analysts at Sterne Agee from a “neutral” rating to a “buy” rating. They now have a $125.00 price target on the stock, up previously from $110.00. 20.7% Upside.
• Myriad Genetics (NASDAQ: MYGN) was upgraded by analysts at JMP Securities from a “market perform” rating to an “outperform” rating. They now have a $48.00 price target on the stock. 50.0% Upside.
• OGE Energy (NYSE: OGE) was upgraded by analysts at Jefferies Group from a “hold” rating to a “buy” rating. They now have a $76.00 price target on the stock, up previously from $74.00. 12.6% Upside.
• Prospect Capital (NASDAQ: PSEC) was upgraded by analysts at Wells Fargo from an “underperform” rating to a “market perform” rating.
• Royal Dutch Shell plc (NASDAQ: RDS.B) was upgraded by analysts at RBC Capital from a “sector perform” rating to an “outperform” rating.
• NASDAQ (NASDAQ: RDS-A) was upgraded by analysts at RBC Capital to an “outperform” rating.
• NASDAQ (NASDAQ: RDS-B) was upgraded by analysts at RBC Capital from a “sector perform” rating to an “outperform” rating.
• RENAULT SA REGIE NAT (NASDAQ: RNSDF) was upgraded by analysts at Citigroup to a “focus list” rating.
• Rolls-Royce Holdings (LON: RR) was upgraded by analysts at Investec to a “buy” rating. They now have a GBX 1,350 ($20.57) price target on the stock.
• Signature Bank (NASDAQ: SBNY) was upgraded by analysts at BMO Capital Markets from a “market perform” rating to an “outperform” rating. They now have a $90.00 price target on the stock, up previously from $79.00. 15.4% Upside.
• Signature Bank (NASDAQ: SBNY) was upgraded by analysts at UBS AG from a “market perform” rating to an “outperform” rating.
• Svenska Cellulosa AB SCA (STO: SCA-A) was upgraded by analysts at AlphaValue to an “add” rating. They now have a SEK 196 price target on the stock.
• SolarCity Corp (NASDAQ: SCTY) was upgraded by analysts at Credit Suisse from a “neutral” rating to an “outperform” rating. They now have a $52.00 price target on the stock, up previously from $28.00. 52.8% Upside.
• Solar Capital (NASDAQ: SLRC) was upgraded by analysts at Wells Fargo from a “market perform” rating to an “outperform” rating.
• Trican Well Services (TSE: TCW) was upgraded by analysts at Raymond James from a “market perform” rating to an “outperform” rating. They now have a C$18.00 price target on the stock, up previously from C$15.00. 18.0% Upside.
• TICC Capital (NASDAQ: TICC) was upgraded by analysts at Wells Fargo from an “underperform” rating to a “market perform” rating.

Analysts’ Downgrades

• NASDAQ (NASDAQ) was downgraded by analysts at Wall Street Strategies from a “buy” rating to a “sell” rating.
• AngloGold Ashanti (NYSE: AU) was downgraded by analysts at UBS AG from a “neutral” rating to a “sell” rating.
• American Express (NYSE: AXP) was downgraded by analysts at Barclays Capital from an “overweight” rating to an “equal weight” rating. They now have a $82.00 price target on the stock, up previously from $72.00. 9.0% Upside.
• Belo (NYSE: BLC) was downgraded by analysts at Gabelli from a “buy” rating to a “sell” rating.
• Capstone Turbine Co. (NASDAQ: CPST) was downgraded by analysts at Ardour Capital from an “accumulate” rating to a “hold” rating.
• DuPont (NYSE: DD) was downgraded by analysts at Bank of America from a “buy” rating to a “neutral” rating. They now have a $56.00 price target on the stock. 3.9% Upside.
• Dorel Industries (TSE: DII.B) was downgraded by analysts at Scotiabank from an “outperform” rating to a “sector perform” rating. They now have a C$41.00 price target on the stock, down previously from C$46.00.
• Fidelity National Information Services (NYSE: FIS) was downgraded by analysts at Robert W. Baird from an “outperform” rating to a “neutral” rating. They now have a $46.00 price target on the stock. 2.9% Upside.
• Myriad Genetics (NASDAQ: MYGN) was downgraded by analysts at Bank of America from a “buy” rating to a “neutral” rating. They now have a $35.00 price target on the stock, down previously from $37.00. 9.3% Upside.
• Myriad Genetics (NASDAQ: MYGN) was downgraded by analysts at RBC Capital from an “outperform” rating to a “sector perform” rating. They now have a $32.00 price target on the stock. 0.0% Downside.
• Progress Software (NASDAQ: PRGS) was downgraded by analysts at Needham & Company from a “buy” rating to a “hold” rating. They now have a $29.00 price target on the stock. 24.4% Upside.
• Rubicon Technology (NASDAQ: RBCN) was downgraded by analysts at Goldman Sachs from a “neutral” rating to a “sell” rating. They now have a $6.00 price target on the stock. 23.9% Downside.
• SM Energy (NYSE: SM) was downgraded by analysts at Societe Generale from a “buy” rating to a “hold” rating.
• SM Energy (NYSE: SM) was downgraded by analysts at Socgen from a “buy” rating to a “hold” rating. They now have a $67.00 price target on the stock. 7.5% Upside.
• Southern Co (NYSE: SO) was downgraded by analysts at Jefferies Group from a “buy” rating to a “hold” rating. They now have a $46.00 price target on the stock, down previously from $53.50. 3.0% Upside.
• SunTrust (NYSE: STI) was downgraded by analysts at UBS AG from a “buy” rating to a “neutral” rating.
• Southern Pacific Resource (TSE: STP) was downgraded by analysts at BMO Capital Markets from an “outperform” rating to a “market perform” rating.
• Wells Fargo (NYSE: WFC) was downgraded by analysts at Sterne Agee from a “buy” rating to a “neutral” rating. They now have a $42.00 price target on the stock. 2.6% Upside.
• Williams Partners L.P. (NYSE: WPZ) was downgraded by analysts at Stifel Nicolaus from a “buy” rating to a “hold” rating.

Analysts’ New Coverage

• A2A SpA (BIT: A2A) is now covered by analysts at Banca Akros. They set a “hold” rating and a €0.65 ($0.84) price target on the stock.
• Automatic Data Processing Incorporated (NYSE: ADP) is now covered by analysts at Raymond James. They set an “outperform” rating on the stock.
• Amlin (LON: AML) is now covered by analysts at UBS AG. They set a “neutral” rating and a GBX 400 ($6.09) price target on the stock.
• Apache (NYSE: APA) is now covered by analysts at Clarkson Capital. They set an “outperform” rating on the stock.
• Air Products & Chemicals (NYSE: APD) is now covered by analysts at Raymond James. They set an “outperform” rating on the stock.
• Airgas (NYSE: ARG) is now covered by analysts at Raymond James. They set a “market perform” rating on the stock.
• BioMed Realty Trust (NYSE: BMR) is now covered by analysts at Goldman Sachs. They set a “neutral” rating and a $12.00 price target on the stock. 41.5% Downside.
• Anheuser Busch (NYSE: BUD) is now covered by analysts at JPMorgan Chase. They set an “overweight” rating on the stock.
• Catlin Group Ltd (LON: CGL) is now covered by analysts at UBS AG. They set a “neutral” rating and a GBX 475 ($7.24) price target on the stock.
• Carrefour SA (OTC: CRERY) is now covered by analysts at Investec. They set a “buy” rating and a €25.00 ($32.47) price target on the stock.
• Energy XXI (NASDAQ: EXXI) is now covered by analysts at Clarkson Capital. They set an “outperform” rating on the stock.
• Freeport McMoRan Copper and Gold (NYSE: FCX) is now covered by analysts at Credit Suisse. They set an “outperform” rating and a $40.00 price target on the stock. 34.6% Upside.
• TOTAL S.A. (EPA: FP) is now covered by analysts at Oddo & Cie. They set a “buy” rating and a €50.00 ($64.94) price target on the stock.
• Hardinge (NASDAQ: HDNG) is now covered by analysts at Ascendiant Capital Markets. They set a “buy” rating and a $17.00 price target on the stock. 19.6% Upside.
• Hess Corp (NYSE: HES) is now covered by analysts at Clarkson Capital. They set an “outperform” rating on the stock.
• Hiscox Ltd (LON: HSX) is now covered by analysts at UBS AG. They set a “neutral” rating and a GBX 560 ($8.53) price target on the stock.
• IAMGOLD Corp (NYSE: IAG) is now covered by analysts at Global Hunter Securities. They set a “buy” rating and a $7.50 price target on the stock. 42.9% Upside.
• IAMGOLD Co. (TSE: IMG) is now covered by analysts at Global Hunter Securities. They set a “buy” rating on the stock.
• Inditex SA (MCE: ITX) is now covered by analysts at HSBC. They set a “neutral” rating and a €110.00 ($142.86) price target on the stock.
• Kosmos Energy Ltd (NYSE: KOS) is now covered by analysts at Clarkson Capital. They set an “outperform” rating on the stock.
• Lloyds Banking Group PLC (LON: LLOY) is now covered by analysts at Jefferies Group. They set a “hold” rating and a GBX 65 ($0.99) price target on the stock.
• Lancashire Holdings Ltd (LON: LRE) is now covered by analysts at UBS AG. They set a “buy” rating and a GBX 850 ($12.95) price target on the stock.
• Lloyds TSB Group plc (NYSE: LYG) is now covered by analysts at Jefferies Group. They set a “hold” rating on the stock.
• Mattel (NYSE: MAT) is now covered by analysts at Argus. They set a “buy” rating and a $51.00 price target on the stock. 13.6% Upside.
• Nevsun Resources Ltd (NYSE: NSU) is now covered by analysts at Scotiabank. They set an “outperform” rating on the stock.
• Nevsun Resources (TSE: NSU) is now covered by analysts at Scotiabank. They set an “outperform” rating and a C$5.30 price target on the stock. 49.3% Upside.
• PHH Co. (NYSE: PHH) is now covered by analysts at Evercore Partners. They set an “equal weight” rating on the stock.
• Praxair (NYSE: PX) is now covered by analysts at Raymond James. They set a “strong-buy” rating on the stock.
• Royal Bank Scotland (NYSE: RBS) is now covered by analysts at Jefferies Group. They set a “buy” rating on the stock.
• RBS (LON: RBS) is now covered by analysts at Jefferies Group. They set a “buy” rating and a GBX 390 ($5.94) price target on the stock.
• Resolute Energy Corp (NYSE: REN) is now covered by analysts at Wells Fargo. They set an “outperform” rating on the stock.
• Seadrill Ltd (NASDAQ: SDRL) is now covered by analysts at Goldman Sachs. They set a “neutral” rating on the stock.
• Southwestern Energy (NYSE: SWN) is now covered by analysts at Clarkson Capital. They set an “outperform” rating on the stock.
• Yelp (NASDAQ: YELP) is now covered by analysts at MKM Partners. They set a “buy” rating on the stock.

• 11:15 PM Speaking of spying and Canada: The Ontario Securities Commission, Canada’s stock market watchdog, announced today a new “joint serious offences team” empowered to use wiretaps and surveillance to develop criminal cases. The team’s primary focus will be on Ponzi schemes and other fraudulent offers aimed at individual investors. [Financials, Global & FX] Comment!
• VIP
  11:05 PM “Mobile communications” and “national security” are now appearing together in sentences coming out of Canada, too. Even though within the last year Canadian laws were changed to allow foreign ownership of small wireless companies, the government is having second thoughts in the first real test. VimpelCom (VIP), which already owns part of Wind Mobile, wanted to buy the rest, but since the Dutch-based company is mostly Russian-owned, Canadian officials are hesitant to give their blessing. The fact that Wind’s (and other Canadian telecoms’) equipment is made by a Chinese company, Huawei, is also a concern. Because of, you know, spying and all that. [Global & FX] Comment!
• OPEN
  10:25 PM OpenTable’s (OPEN -0.8%) acquisition of JustChalo for $11M caused more of a ripple in its stock price than its projected knock to EPS this year of 2 cents per share – perhaps because it underlines that the company isn’t as happy as it could be with its mobile solutions. Restaurant reservations completed on OPEN via mobile grew ~50% since last year but still account for just over one-third of total rez. (PR) [Consumer] Comment!
• WLT
  7:30 PM Worth noting: Short interest on Walter Energy (WLT) rose 13.8% to 17.05M shares through the end of May, to 27.47% of its current float and the largest number of shares sold short in the past year. Before today’s move, shares were down nearly 14% and it might be reasonable to speculate that shorts increased positions somewhat over the last two weeks. Shares are still halted, with the stock down 17.4%. [Commodities, On the Move] 26 Comments
• MOG.A, BA
  7:12 PM Moog (MOG.A) says its Aircraft Group has been awarded a contract by Boeing (BA) for the design, development and qualification of the Weapons Bay Actuation System for the F-15 Silent Eagle. The Moog system is part of a new conformal weapons bay for the aircraft, and is used to operate multiple door surfaces and provide other actuation functions. [Consumer] Comment!
• VOD, FTE
  7:00 PM Europe’s mobile carriers (VOD, FTE, TI, TEF) won’t like this: the EU is planning to scrap roaming fees for voice, text, and data services next year (possibly by July ’14) as part of an effort to create a common telecom market. The cuts are only expected to affect carrier revenues by 2% on average, but the impact on profits will likely be bigger, given the margins attached. Regulators have already announced plans to harmonize telecom regulations, and to make it easier for carriers to merge. “There are around 100 operators in Europe and only 4 in the US … That’s not sustainable if we’re going to have a single market,” a source tells the Telegraph. [Tech] 2 Comments
• KMP, KMI
  6:52 PM Kinder Morgan Partners (KMP) restarts the 307K bbl/day Trans Mountain pipeline after repair crews finished their work on a defect that prompted a small oil spill – roughly six barrels – earlier this week. KMP plans to almost triple the line’s capacity, which extends from Alberta to B.C. and Washington state, and critics were quick to seize on the spill: “Where oil moves, it spills,” says the head of B.C.’s Sierra Club. [Energy] 8 Comments
• T, TMUS
  6:39 PM AT&T (T) adds 4G support to its GoPhone prepaid plans, as well as new plans that range from $25-$60/month. The update comes a month after AT&T launched its 3G-only AIO prepaid plans, which Ma Bell said are (relative to GoPhone) focused on customers who want unlimited voice and more phone options; the two costliest new GoPhone plans also offer unlimited voice. AT&T is betting the new plans will bolster a prepaid business that lost 184K subs in Q1, and is about to face tougher competition from T-Mobile (TMUS), which plans to rapidly grow MetroPCS’ 4G prepaid coverage. (U.S. prepaid smartphone growth) [Tech] 1 Comment
• ENB
  6:32 PM B.C. premier Christy Clark says that while her government does not support Enbridge’s (ENB) Northern Gateway pipeline plan, she does not rule out eventually supporting the project. She also expects to finalize a taxation and power supply framework for liquefied natural gas facilities within a few months, a move she hopes will spur final investment decisions on one or more gas export projects by year-end. [Energy] 4 Comments
• GRPN
  6:18 PM A “Groupon 2.0″ is emerging, wrote Deutsche’s Ross Sandler in an upgrade that had a big effect on shares (GRPN +11.4%). Whereas “Groupon 1.0″ was dependent on a “push model” of mass e-mails highlighting a handful of deals, 2.0 will rely on a “pull model” in which consumers turn to Groupon (via its site, apps, and searches) for personalized deals on a much larger inventory of content. With 45% of its North American transactions coming from mobile, Sandler claims Groupon is “the most mobile penetrated e-commerce company” his firm tracks. He didn’t touch on Europe, which has remained a weak spot. Some major hedge funds are staring at big gains. [Tech] Comment!
• LINE, LNCO
  6:14 PM Weakness in Linn Energy (LINE) and LinnCo (LNCO) is caused by talk that LNCO could realize a large tax liability in 2016, Wells Fargo says, though the firm thinks the speculation isn’t accurate. Wells blames the widened spread between LINE and LNCO on rising short interest in LINE, which is easier to short. It keeps Outperform ratings on both, seeing the Q3 closing of the Berry Petroleum (BRY) merger as a catalyst. [Energy] 29 Comments
• 6:00 PM On the hour: S&P -0.77%. 10-yr +0.18%. Euro -0.24% vs. dollar. Crude +1.19% to $97.84. Gold +0.89% to $1390.05. Comment!
• MRO
  5:53 PM Marathon Oil’s (MRO) choice of a new CEO shows the company remains focused on its international business rather than morphing into a pure shale play, Raymond James analysts conclude. New man Lee Tillman has served in Indonesia, Norway, Equatorial Guinea and elsewhere during his career; he’s “a classic multinational oil and gas executive, making this a hire that fits logically with Marathon’s heritage.” [Energy] Comment!
• QLGC, CWTR
  5:40 PM While Zoetis kicks out First Horizon from the S&P 500, First Horizon is replacing QLogic (QLGC) in the MidCap 400. QLogic, in turn, is taking Coldwater Creek’s (CWTR) place in the SmallCap 600. All changes take place after the June 21 close. (PR – .pdf) [Tech, Consumer] Comment!
• YPF, CVX
  5:37 PM Argentina’s YPF will join Venezuela’s offshore Deltana Platform natural gas project along with state oil company PDVSA and Chevron (CVX), Venezuela’s oil minister says. Deltana is intended to extract and export natural gas from fields believed to hold some 7T cu. ft. Details on the size of YPF’s stake are not revealed, but a portion of Deltana gas will be exported to Argentina. [Energy] 3 Comments
• PANW, TMUS
  5:30 PM After-hours top gainers, as of 5:15 p.m.: PANW +4%. TMUS +4%. SKUL +3%. CYH +2%. RUSHB +2%. After-hours top losers: LAS -4%. LITB -3%. PBYI -3%. APFC -2%. BSBR -2%. [On the Move] Comment!
• ZTS, FHN
  5:22 PM Zoetis (ZTS) to replace First Horizon National (FHN) in S&P 500. Zoetis +1.95% AH. (Bloomberg) [Breaking News] Comment!
• AAPL, EA
  5:21 PM iOS 7 (AAPL) comes with specs enabling game controllers to interact with iDevices, according to a developer doc seen by the WSJ. Though the doc says controllers “must not be required” for a game to work, it’s still likely music to the ears of game developers (EA, ATVI, TTWO, GLUU), who have both been trying to profit from tremendous mobile gameplay growth, and struggling to get users to pay up-front (as opposed to downloading free-to-play titles). The report comes a month after Tim Cook said Apple will give developers more options to customize iOS, and days after IDC and App Annie predicted mobile game revenue will top $12B this year. Nvidia (NVDA) is trying to kick-start controller-based Android gaming via its Shield console. [Tech] 9 Comments
• PBR
  5:15 PM Brazil’s second-highest court denies a request by Petrobras (PBR) for an injunction in a dispute over tax payments for offshore oil platform leases. The ruling temporarily makes PBR ineligible to participate in government tenders, including the Oct. 22 auction of presalt oil and natural gas exploration acreage, even though Brazil’s new production-sharing rules require PBR to hold a 30% operator stake in the area to be sold. [Energy] Comment!
• ING, BSMX
  5:11 PM ING Groep (ING) has agreed to sell ING Hipotecaria, its mortgage business in Mexico, to Grupo Financiero Santander Mexico. (BSMX) for around $50M in cash, as part of ING‘s effort to divest its insurance and investment management businesses. The business serves 28K customers through its 20 branches, which remained with ING following the divestment of its Latin American pensions, life insurance and investment management operations in 2011. [Financials, Global & FX] Comment!
• 5:07 PM What austerity? Spain’s public debt posts its fastest Y/Y rise in history in Q1 and now sits at a record 88.2% of GDP. The €922.82B figure is 19.1% higher than Q1 of 2012. According to government estimates, the debt-to-GDP figure will rise to 90.5% by the end of this year. [Global & FX] 1 Comment
• 5:00 PM On the hour: S&P -0.77%. 10-yr +0.17%. Euro -0.24% vs. dollar. Crude +1.24% to $97.89. Gold +0.88% to $1389.95. Comment!
• CTL
  4:51 PM CenturyLink’s (CTL +0.3%) Savvis data center unit is joining the ranks of cloud app platform (PaaS) providers by acquiring AppFog, a startup said to have enabled 150K+ apps from 100K+ developers. Unlike Salesforce (the top PaaS provider for public cloud services), AppFog is more focused on enabling apps run on private clouds (i.e. a company’s own infrastructure). It faces competition here from Microsoft (Azure), Red Hat, and EMC/VMware’s Pivotal spinoff.  Savvis notes AppFog complements its Savvis Cloud suite of cloud infrastructure (IaaS) services, which face competition from Amazon, Microsoft, and Google. Deal terms are undisclosed. (data center buildout) [Tech, M&A] Comment!
• ADVS
  4:49 PM Advent Software (ADVS) announced special dividend of $9.00/share. The ex-dividend date for special dividend is July 10. (PR) [Dividends] Comment!
• PVR
  4:49 PM PVR Partners (PVR) -1.8% AH after filing for a potential offering of up to $150M of common units, as it looks to raise funds for general partnership purposes. Prices and terms will be determined by market conditions. [Energy, On the Move] 2 Comments
• PEB
  4:45 PM Pebblebrook Hotel Trust (PEB) declares $0.16/share quarterly dividend, in line with previous. Forward yield 2.50%. For shareholders of record July 1. Payable July 15. Ex-div date June 27. (PR) [Dividends] Comment!
• AM
  4:42 PM American Greetings (AM) declares $0.15/share quarterly dividend, in line with previous. Forward yield 3.26%. For shareholders of record July 03. Payable July 15. Ex-div date June 01. (PR) [Dividends] Comment!
• DPM
  4:40 PM DCP Midstream Partners (DPM) files for a potential offering to sell up to $300M in common units. Prices and terms will be determined by market conditions and other factors at the time of the offerings. [Commodities] Comment!
• CPT
  4:39 PM Camden Property Trust (CPT) declares $0.63/share quarterly dividend, in line with previous. Forward yield 3.80%. For shareholders of record June 28. Payable July 17. Ex-div date June 26. (PR) [Dividends] Comment!
• VXX, FXY
  4:35 PM The week’s ETF movers – Gainers: VXX +9.2%. FXY +3.2%. SLV +2.3%. SIVR +2.0%. OIL +1.8%. ETF Losers: KOL -5.8%. VNM -5.7%. FXI -4.7%. GDXJ -4.2%. EWZ -4.2JI%. [On the Move] Comment!
• DB
  4:35 PM Deutsche Bank (DB -2%) is “horribly undercapitalized” with “no margin for error,” the worst of all global banks based on at least one measurement of leverage, says FDIC vice chairman and former Fed maverick Thomas Hoenig. Stefan Krause, the bank’s CFO, says the analysis is inaccurate, pointing to the Basel framework. That’s Hoenig’s point; Basel allows banks to appear well-capitalized when they’re not. [Financials] 1 Comment
• TU
  4:24 PM Telus (TU) is buying back up to 4M shares via private placements with an “arm’s length third-party seller.” Based on today’s close, the buybacks would cost the Canadian carrier $136.4M. (PR) [Tech] Comment!
• 4:22 PM Scott Minerd’s “ponzi scheme” still has quite a few supporters out there. The IMF believes the Fed should continue to purchase Treasurys and says the deficit reduction process in the U.S. “has been excessively rapid and ill-designed.” Rather than cuts to education, science, and infrastructure, the IMF says “a back-loaded mix of entitlement savings and new revenues” should be implemented. (Earlier: IMF cuts U.S. GDP growth outlook) [U.S. Economy] 2 Comments
• ING, BSMX
  4:20 PM ING is selling its Mexican mortgage financing business (ING Hipotecaria) to Santander Mexico (BSMX); terms are undisclosed, and the deal is expected to close in 2H. ING says the sale is part of its efforts to unload its insurance and money management ops, and comes two days after a report the company is close to selling its South Korean life insurance unit. As of March 31, ING Hipotecaria had a loan portfolio of 12.3B pesos ($968M). [Financials, M&A] Comment!
• WLT
  4:17 PM Walter Energy (WLT) confirms it will not proceed with a refinancing of a portion of its existing debt. WLT says it has no material debt principal payments due until 2015, and it requires no incremental funding at this time; the proposed refinancing would not have raised additional capital. Shares have been halted since earlier this afternoon. [Energy] 2 Comments
• MEI
  4:17 PM Methode Electronics (MEI) declares $0.07/share quarterly dividend, in line with previous. Forward yield 1.88%. For shareholders of record July 12. Payable July 26. Ex-div date June 10. (PR) [Dividends] Comment!
• PCC
  4:15 PM PMC Commercial Trust (PCC) declares $0.125/share quarterly dividend, in line with previous. Forward yield 6.00%. For shareholders of record June 28. Payable July 08. Ex-div date June 26. (PR) [Dividends] Comment!
• RSO
  4:14 PM Resource Capital (RSO) declares $0.20/share quarterly dividend, in line with previous. Forward yield 12.62%. For shareholders of record June 28. Payable July 26. Ex-div date June 26. (PR) [Dividends] Comment!
• 4:10 PM Market recap: Investors booked profits following yesterday’s big gains, as focus returned to the Fed and next week’s FOMC meeting. Financial stocks lagged as data showed a slowdown in consumer sentiment, and energy stocks fell despite a rise in crude oil prices primarily due to headlines about Syria’s civil war. Meanwhile, the IMF cut its 2014 U.S. growth outlook to 2.7% from 3%. [Top Stories] Comment!
• AMZN
  4:09 PM Florida is set to be the latest state to receive Amazon (AMZN -0.6%) distribution centers … and with them, sales tax payments. In a deal with the state government, Jeff Bezos & Co. promise to invest $300M in the Sunshine State by 2016 to build several warehouses, and create up to 3K jobs along the way. No word on when sales tax collections will start. While Congress mulls an online sales tax bill, Amazon has already begun collecting in states containing ~1/3 of the U.S. population, and is due to begin collecting from others in 2013 (New Jersey, Virginia) and 2014 (Nevada, Indiana). [Tech, Consumer] 1 Comment
• UNTK
  4:01 PM UniTek Global Services (UNTK -13%) gets smacked after the company said late yesterday that it’s entered into further amendments to extend its previously-disclosed forbearance agreements with lenders under its term and revolving credit agreements. Additionally, as part of the restatement of its financial report for FY12, the company’s preliminary estimates for revenues are now $437M – $441M, and its net loss is $55.6M – $49M. [On the Move] Comment!
• 4:00 PM At the close: Dow -0.69% to 15072. S&P -0.6% to 1627. Nasdaq -0.63% to 3424. Treasurys: 30-year +0.03%. 10-yr +0.17%. 5-yr +0.12%. Commodities: Crude +1.15% to $97.81. Gold +0.9% to $1390.15. Currencies: Euro -0.21% vs. dollar. Yen -1.05%. Pound +0.1%. Comment!
• ROC
  3:56 PM PE firm Cinven is in exclusive talks to buy CeramTec, the industrial ceramics unit of chemicals maker Rockwood Holdings (ROC +1.8%), for ~€1.5B ($2B), beating out rival PE firm BC Partners, Reuters reports. A deal could be announced in the next few days, but the talks also could still fall apart. [Commodities, M&A, On the Move] Comment!
• FB
  3:54 PM “A small team has been working on a big idea.” Thus reads an invite to a June 20 Facebook (FB -0.5%) event. It arrives amidst expectations (fueled by API code) Facebook is set to launch an RSS reader to dovetail with Google Reader’s end-of-June shutdown. If Facebook can provide an innovative take on the RSS reader (a product that never quite gained a mass following), it could bolster the company’s content-sharing/referral traffic dominance. [Tech] 2 Comments
• NBG
  3:48 PM National Bank of Greece (NBG -6%) narrowly averts coming under the full control of the Greek state by raising 10.8% of the total €9.7B in capital it needs from private investors. As a reward for raising at least 10% of the necessary recap funds on its own, bank management gets to retain its autonomy. Around €500M of the funds raised from the private sector came from abroad, the bank says. [Financials, On the Move] Comment!
• EDAP
  3:43 PM EDAP (EDAP -12%) says it’s fully redeemed $8M of its outstanding long-term debt by using a portion of the net proceeds from the $12M private placement executed on May 28. EDAP CEO Marc Oczachowski said the subsequent elimination of the 9% annual interest rate and removal of the obligation ahead of its June 2014 maturity has resulted in a “successfully streamlined” balance sheet. [On the Move, Healthcare] 2 Comments
• STO, TUWLF.PK
  3:32 PM Statoil (STO) and Tullow Oil (TUWLF.PK) are finishing a well aimed at achieving the first commercial oil discovery offshore Mozambique, where explorers already have made the century’s largest natural gas finds. Oil is preferred because it’s easier and cheaper to ship, and the partners hope to find it in some of the deeper plays; it’s “worth doing as a potentially needle-moving prospect,” Tullow says. [Energy] 2 Comments
• SNE
  3:23 PM CEO Kazuo Hirai says Sony’s (SNE -5.2%) film and device units are better together. (Nikkei) [Consumer] 5 Comments
• CAKE, CBRL
  3:17 PM The National Retail Federation forecasts Fathers Day spending will rise 2.3% this year, roughly in-line with other major holiday of 2013. Restaurants (CAKE, CBRL, EAT, PNRA, RRGB, RT, BWLD, BLMN, TXRH, RUTH, IRG, DIN) might catch more than their share of the spending with the sector more promotional than in years past. [Consumer] 1 Comment
• CAR, HTZ
  3:12 PM “We feel the car-rental sector is Virgin territory,” says Virgin Group spokesperson Nick Fox. Shares of Avis (CAR -2.4%) and Hertz Global (HTZ -2.6%) sink after Bloomberg reports Richard Branson is interested in acquiring Advantage, which the FTC forced HTZ to sell as part of its deal to buy Dollar Thrifty. [On the Move] Comment!
• WMB, WPZ
  3:11 PM Williams Cos. (WMB -1.1%) CEO Alan Armstrong says he doesn’t know when the Geismar, La., chemical plant will resume production, and the company hasn’t yet re-entered the plant to assess the damage from yesterday’s explosion, which has claimed a second victim. Wells Fargo expects WMB to suffer some financial damage but keeps shares at Outperform; Stifel Nicolaus cut shares to Hold. [Energy] Comment!
• ELN
  3:07 PM Moody’s revises its outlook on Elan (ELN +9.2%) to developing from stable. At the same time it affirmed its existing ratings including the Ba3 Corporate Family Rating, the Ba2-PD Probability of Default Rating and the SGL-1 Speculative Grade Liquidity rating. [Healthcare, Global & FX, On the Move] Comment!
• 3:00 PM On the hour: Dow -0.76%. 10-yr +0.2%. Euro -0.27% vs. dollar. Crude +1.03% to $97.69. Gold +0.77% to $1388.35. Comment!
• IAG
  2:52 PM IAMGOLD (IAG +0.3%) is initiated with a Buy rating and a $7.50 price target at Global Hunter, which cites its track record of working in emerging market locations with larger gold mines. The Rosebel gold mine in Suriname can produce ~400K oz./year of gold over at least a 20-year mine life; IAG is targeting cash costs in the low $700/oz. area, which the firm believes is sustainable going forward. [Commodities, Quick Ideas] 1 Comment
• AIG
  2:52 PM Don’t be surprised if American International Group (AIG -0.7%) starts paying a dividend again, according to StreetAuthority. By the numbers: Last year, the company’s free cash flow topped $3.5B and next year’s forecast is for $5B. With 1.7B shares outstanding, a $2-per-share dividend payout could be pulled off. [Financials] 8 Comments
• DELL
  2:47 PM Odds are growing Carl Icahn and Southeastern Asset will drop their bid for Dell (DELL -0.4%), David Faber reports. Icahn is said to be worried about his ability to raise another $2B in financing. The NY Post reports Icahn recently told potential lenders a financing package set to be finished by today has been delayed, as he tries to strengthen it to address a $3.9B shortfall brought up by Dell’s special committee last week. A revised funding package could reportedly be presented next week. Dell shares are 2% below Michael Dell/Silver Lake’s $13.65 LBO price. (previous) [Tech, M&A] 1 Comment
• FIATY.PK
  2:43 PM Chrysler (FIATY.PK) plans to freeze a pension plan that covers around 8K salaried workers in order to convert them to a defined contribution plan which will start next year. Last year, rival GM made a similar decision. [Consumer, Global & FX] Comment!
• TUWLF.PK, HGOCF.PK
  2:39 PM The High Court in London rules in favor of Tullow Oil (TUWLF.PK) in a legal action against Heritage Oil (HGOCF.PK) over the recovery of $313M of tax payments made to the Ugandan government. Tullow and its partners in Uganda say they are near an agreement with the government over construction of a refinery and export pipeline, which could require investments of more than $12B. [Energy] Comment!
• TLT, TBT
  2:37 PM The anti-QE rhetoric is building just in time for next week’s FOMC meeting, as Guggenheim’s Scott Minerd channels his inner Bill Gross, calling the Treasury market (TLT, TBT) a “ponzi scheme.” “The only reason investors would buy Treasurys today is that they expect the Federal Reserve will buy them at higher prices in the future,” Minerd tells clients. The longer the Fed’s bond buying continues, “the more volatility-inducing pressure will build.” [U.S. Economy] 13 Comments
• VECO, GTAT
  2:36 PM LED equipment makers Veeco (VECO -2.4%) and GT Advanced (GTAT -3.2%) slump after Goldman downgrades Rubicon to Sell, while stating checks indicate the potential for 25%-30% ASP declines for 6″ LED wafers. LED wafer makers such as Rubicon depend on manufacturing gear from Veeco and GT Advanced. [Tech, On the Move] Comment!
• PSDV
  2:36 PM Shares of pSivida Corp (PSDV +0.9%) gain after the UK’s National Institute for Health and Care Excellence issued a draft guidance recommending Iluvien to treat pseudophakic patients with chronic diabetic macular edema considered insufficiently responsive to available therapies, concluding that it’s clinically effective in treating vision impairment. [Healthcare, On the Move] Comment!
• COH
  2:33 PM Big trouble in shoes? Coach (COH -0.2%) continues to expand into new categories as pressure in its trademark handbag business from Michael Kors and Tony Burch has it looking for growth channels. Women’s shoes will be one such area with new Coach shoe lines expected as soon as this fall. It’s a move viewed as risky by some industry insiders who think inventory management issues could crop up and wonder how the company will keep up its legendary 73% gross margin rate. [Consumer] Comment!
• HLF
  2:32 PM Is the short thesis on Herbalife (HLF +4.8%) really “in tatters,” as D.A. Davidson’s Tim Ramey suggests (I, II)? The analyst debates the point head-to-head with Herb Greenberg on CNBC. Greenberg notes that the YTD rally in the shares in not evidence of anything other than the stock going up, suggesting that the move has little to do with underlying claims about the company’s business model. Ramey counters by reminding Greenberg that analysts get paid to make calls on where stocks are going and so far this year, HLF is up 48%. [On the Move] 10 Comments
• PX
  2:31 PM Industrial gas supplier Praxair (PX +1%) gets a lift from Raymond James today, who initiated the shares with a Strong Buy and a price target of $135 per share. [On the Move] Comment!
• NWFL
  2:28 PM Norwood Financial (NWFL) declares $0.29/share quarterly dividend. For shareholders of record July 15. Payable Aug 1. Ex-div date July 11. (PR) [Dividends] Comment!
• VOD
  2:28 PM Vodafone (VOD -0.3%) is thinking of upping its offer for Kabel Deutschland after an initial €7.2B ($9.6B) bid was spurned, Reuters reports. Three sources claim Vodafone sent a letter to Kabel indicating an offer price of €81/share; the German cable giant closed at €82.69 today in Frankfurt (€7.3B market cap). Vodafone, which has 32M German mobile subs, is keen on selling mobile/TV/Internet bundles to Kabel’s 15M cable subs. (previous) [Tech, M&A] 1 Comment
• DAL
  2:26 PM Delta Air Lines (DAL +0.2%) CEO says it will keep the same number of flights running out of its hub in Cincinnati despite scaling back in Memphis. The carrier has received some praise from industry insiders for pushing the right buttons to boost efficiency. (May airliner scorecard) [Consumer] Comment!
• LRY
  2:25 PM Liberty Property Trust (LRY) declares $0.475/share quarterly dividend, in line with previous. Forward yield 4.98%. For shareholders of record July 01. Payable July 05. Ex-div date June 27. (PR) [Dividends] Comment!
• VLGEA
  2:24 PM Village Super Market (VLGEA) declares $0.25/share quarterly dividend, in line with previous. Forward yield 2.88%. For shareholders of record July 02. Payable July 25. Ex-div date June 28. (PR) [Dividends] Comment!
• KOL, BTU
  2:19 PM Coal stocks (KOL -2.8%) are sliding with the latest statistics from China showing steel production trends declined in late May. Another data point this week: U.S. coal shipments fell 31% M/M in April with high production costs and oversupply in Asia for met coal driving the decline. BTU -4.3%, ACI -6.4%, ANR -4.8%, CNX -2.8%, CLF -4.7%, YZC -4.8%. Trading halted in WLT, -17.3% (earlier). [Energy, On the Move] 7 Comments
• SSNLF.PK, AAPL
  2:16 PM “I can say sales of the Galaxy S4 smartphone are fine,” says Samsung (SSNLF.PK) co-CEO Shin Jong-kyun in response to a JPMorgan report that did a number on Samsung shares. But he doesn’t appear to refute the report’s claim (based on checks) that Samsung has significantly cut S4 build orders; others have issued similar reports since. Jong-kyun also reiterates (previous) Samsung has no intention of joining HTC in settling with Apple (AAPL -1.5%). “Patent disputes against Apple will be [continued].” [Tech] 10 Comments
• BEAV
  2:15 PM B/E Aerospace (BEAV +0.5%) hovers in the green today after Morgan Stanley initiated the shares with an Overweight rating and $77 price target. Morgan calls the company a near-pure-play aerospace levered company with exposure to increasing wide-body production rates. Additionally, on the aftermarket side, BEAV is levered to an improving outlook for the global airlines. [On the Move, Consumer] Comment!
• MSTX
  2:04 PM Mast Therapeutics (MSTX -33.3%) tumbles after announcing the pricing of its 50M unit public offering. The units are offered at $0.50/each and come with one share of common and a warrant to purchase a half a share. The warrants and shares will be issued separately but purchased together. The exercise price on the warrants is $0.65. (PR) [Healthcare, On the Move] Comment!
• ELN
  1:58 PM Royalty Pharma responds to Elan’s (ELN +8.4%) announcement that it intends to explore a sale, saying it’s a clearly frustrating tactic that offers shareholders no certainty that a deal will ever be reached. Royalty calls on shareholders to vote today against all four resolutions up for consideration, in order to preserve its formal offer for ELN. [Healthcare, M&A, On the Move] 2 Comments
• ATML, IFNNY.PK
  1:57 PM Atmel (ATML +1%) settles its 2-year-old microcontroller patent dispute with Infineon (IFNNY.PK). Atmel will pay Infineon an undisclosed sum, and the chipmakers have agreed to a “broad patent cross license.” (PR) [Tech] Comment!
• CMCSA, VZ
  1:49 PM Pres. Obama gives his support to a plan to allow large chunks of government-owned spectrum good for mobile (1700 and 1800 MHz. bands) and Wi-Fi (5 GHz. bands) use to be shared by federal agencies and U.S. carriers. The feds would get priority, but carriers could use the spectrum at other times. The NTIA has been given 6 months to come up with tests to guarantee feasibility. Comcast (CMCSA), which is hungry for more Wi-Fi spectrum, is applauding the move, but mobile carriers (VZ, T, S) haven’t been crazy about the idea, arguing the logistics will be tough. Could they also be worried about the spectrum enabling competition? (fact sheet – .pdf) [Tech] 2 Comments
• IMSC.PK
  1:43 PM Shares of Implant Sciences (IMSC.PK +6.5%) post solid gains on the session. In a still-embargoed article published this morning, SA Pro contributor Inefficient Market calls the stock “a compelling buying opportunity with an attractive asymmetric risk/reward.” [On the Move] Comment!
• WLT, BTU
  1:34 PM Walter Energy (WLT -12.8%) dives after Forbes reports the company withdrew a proposed $1.55B debt refinancing offer due to “market conditions.” Other coal stocks are also off: BTU -4.5%. ACI -7.1%. CLF -3.5%. ANR -5.1%. OXF -3.1%. JRCC -3.3%. CLD -4.1%. [Energy, On the Move] 7 Comments
• TUR
  1:30 PM Mercifully for investors in Turkish equities (TUR +1.7%), Recep Tayyip Erdogan’s government will suspend plans to redevelop Gezi Park pending a court ruling on the matter. The Borsa Istanbul rallies 4.61% to 80,011.13, still some 14% below highs hit last month. (previous) [Global & FX, On the Move] 1 Comment
• AUXL
  1:28 PM Auxilium Pharmaceuticals (AUXL +2.3%) moves up after analysts at Mizuho initiate coverage with a Buy rating and a $28 price target. [Healthcare, On the Move] Comment!
• NWS, NWSA
  1:26 PM Stanley Druckenmiller took out a new 2.3M share position in News Corp. (NWS, NWSA) during Q1, according to SEC filings. The investor is far from the first billionaire to have loaded up on the media giant in front of its planned spinoff. [Consumer] Comment!
• BBRY
  1:22 PM U.K. carriers Orange and T-Mobile have begun taking orders for the BlackBerry Q5 (BBRY +0.1%): each is offering the phone for free with a 2-year, £26/month ($41/month) plan. Meanwhile, retailer Unlocked-mobiles is selling the phone contract-free for a steep £350 ($550), and says it will ship on July 15. To a large extent, the mid-range Q5 was created with emerging markets in mind. (May announcement) (Wells Fargo) [Tech] 24 Comments
• PM
  1:16 PM Smoking hot? Philip Morris (PM -0.3%) looks like a tempting long-term pick with its aggressive expansion in China looking promising as 25% of the population still identify themselves as smokers. In Indonesia, the percentage and profit potential is even higher. Shares of Philip Morris also yield a juicy 3.68%. [Consumer] 8 Comments
• MTB
  1:12 PM The delay of the Hudson City Bancorp acquisition (previous) is a “red herring,” says Sterne Agee’s Todd Hagerman, and the associated “stall” in M&T Bank’s (MTB -0.9%) performance has created a buying opportunity. What really matters, Hagerman continues, “is the strong underlying earnings power in an otherwise challenging environment.” The shares are upgraded to Buy from Neutral (PT $125). Meanwhile, the stock is downgraded at SunTrust Robinson Humphrey to Neutral from Buy. [Financials] Comment!
• AAPL, SNE
  1:09 PM Apple (AAPL -1.3%) roundup: 1) Digitimes reports Pegatron will start low-cost iPhone and next-gen (retina?) iPad Mini shipments in August. The WSJ recently reported Pegatron had taken iOrders from Foxconn, and the Commrcial Times just reported parts shipments for a cheaper iPhone are underway. 2) Horace Dediu estimates Apple has been adding an average of 500K iTunes accounts/day (180M+/year) since ’09, and puts Apple’s annual revenue/account at ~$300 (down from $400+ in 2010). 3) Apple’s Japanese smartphone share has fallen to 25% from 40% over the last 4 weeks, per local research firm BCN. Sony’s (SNE) share is believed to have more than doubled to 36%, thanks in part to the Xperia Z. IDC gave Apple a 40% share for Q1 as well. [Tech] 8 Comments
• GM
  1:08 PM The new 2014 Cadillac CTS sedan will sticker at $46,025, more than $6K above the previous version of the luxury car. The updated model is still selling for less than main rivals the 2014 Mercedes-Benz E350 sedan and the 2014 BMW 5-series sedan. The big picture: A lot of the success of General Motors (GM -0.9%) in the U.S. can be tied to the resurgence of Cadillac. Will the brand’s heightened prestige help push GM’s margins higher? [Consumer] 3 Comments
• 1:00 PM On the hour: Dow -0.6%. 10-yr +0.22%. Euro -0.41% vs. dollar. Crude +1.21% to $97.86. Gold +0.69% to $1387.25. Comment!
• NTRI, WMT
  1:00 PM NutriSystem (NTRI +6.7%) gains after the company says it’s ramping up production for its Nutrisystem D 5-Day Jumpstart Weight Loss Kit to meet growing consumer demand. The company also notes that it will also offer the product in 3,700 Walmart (WMT) stores by the end of June. [Healthcare, On the Move] Comment!
• GE
  12:54 PM General Electric Company (GE) declares $0.19/share quarterly dividend, in line with previous. Forward yield 3.22%. For shareholders of record June 24. Payable July 25. Ex-div date June 20. (PR) [Dividends] 19 Comments
• AT
  12:52 PM Atlantic Power (AT) declares C$0.033/share monthly dividend, in line with previous. For shareholders of record June 28. Payable July 31. Ex-div date June 26. (PR) [Dividends] Comment!
• ABT
  12:52 PM Abbott Laboratories (ABT) declares $0.14/share quarterly dividend, in line with previous. Forward yield 1.52%. For shareholders of record July 15. Payable Aug. 15. Ex-div date July 11. The board authorized to repurchase stock of $3B, replacing the prior $5B program that was completed. (PR) [Dividends] Comment!
• CLF
  12:45 PM Cliffs Natural Resources (CLF -1.5%) opened higher on news its supply contract with Essar Steel Algoma was extended to 2024, but shares have been sliding since. J.P. Morgan thinks Algoma is concerned with potential delays and/or cost escalations at its Minnesota project, and feared overcapacity in the Great Lakes iron ore market looks more like a shortage and is bullish for CLF. [Commodities, On the Move] Comment!
• BCSB, RH
  12:45 PM Midday top 10 gainers: BCSB +31%. RH +18%. CDXS +17%. SGOC +17%. BLIN +16%. LGL +15%. RVLT +13%. GRPN +13%. UNXL +12%. FMAR +12%. Midday top 10 Losers: CEMP -14%. OSH -14%. UNTK -13%. UPI -12%. EDAP -12%. CPST -11%. OCLS -11%. CLSN -10%. AMSC -9%. ACH -9%. [On the Move] Comment!
• OGE
  12:45 PM OGE Energy (OGE +1.3%) gains after Jefferies ups the shares to Buy and raises its price target from $74 to $76. Jefferies says that at the current price level there are two free options for higher than expected earnings: The first involves higher environmental spending related to a court decision expected sometime this summer, and the second is additional growth projects at the recently announced MLP. [Energy, On the Move] Comment!
• SGYP
  12:41 PM Synergy Pharmaceuticals (SGYP +6%) pops after reporting that its Chairman, Gabriel Cerrone, purchased 8,000 shares at $4.42 today. Cerrone now holds 906,873 shares indirectly, and 187,470 directly. [Healthcare, On the Move] Comment!
• DF
  12:32 PM Dean Foods (DF +3%) trades higher after announcing it would close a plant in Texas and cut staffing. The dairy concern is still a favorite of Hedgeye even after it spun off WhiteWave. [Consumer] Comment!
• UNXL
  12:31 PM UniPixel (UNXL +11.6%) CEO Reed Killion discloses he bought 3.4K shares today at $14.90. Shares of the beaten-down metal mesh touch sensor developer have soared on the news. 45.9% of the float was shorted as of May 31. [Tech, On the Move] 28 Comments
• SPF
  12:30 PM Standard Pacific (SPF +2.2%) says it’s completed the acquisition of select homebuilding assets from Centerline Homes homebuilding affiliates. The acquisition includes approximately thirty current and pending communities, of which five are actively selling. Specific terms of the deal were not disclosed. [On the Move] Comment!

• PM
  Philip Morris Is A Great Dividend Play

  The Outsider • Fri, Jun 14 • 8 Comments
• KRFT
  Kraft: Attractive Dividend Yield With Low Growth Prospects

  investec • Thu, Jun 13 • 8 Comments
• WMT
  Wal-Mart Offers Low Prices Every Day (Does Not Apply To Our Stock)

  Market Exclusive • Thu, Jun 13 • 18 Comments
• WIN
  Windstream – Dividend Cut Inevitable, Probably Priced In

  Madhusudan Rao • Thu, Jun 13 • 32 Comments
• BGS
  B&G Foods’ Push Into Natural Snack Foods Makes Stock A Buy

  Chris Katje • Wed, Jun 12 • 1 Comment
• ABT
  Abbott Labs’ Absorb And The Dissolvable Stent Race

  Peter Geschek • Wed, Jun 12
• PM
  Philip Morris: The Crown Jewel Of The Tobacco Sector

  Stock Gamer • Wed, Jun 12 • 5 Comments
• PM
  How Healthy Is The Balance Sheet Of Philip Morris International?

  David Schauber, Jr. • Wed, Jun 12 • 8 Comments
• WMT
  How Wal-Mart Turbocharges Per-Share Earnings

  YCharts • Wed, Jun 12 • 1 Comment
• COP
  ConocoPhillips: Good For The Trader And Good For The Holder

  Disturber • Wed, Jun 12 • 10 Comments
• TEF
  Why Telefonica Might Be A Good Investment Right Now

  The Investment Doctor • Wed, Jun 12 • 20 Comments
• BGS
  Is Pirate Brands A Game Changer For B&G?

  Crunching Numbers • Wed, Jun 12 • 4 Comments
• UNP
  Railroads: 2 To Buy, 2 To Sell, 1 To Hold

  The Ethical Investor • Tue, Jun 11 • 9 Comments
• WMT
  Wal-Mart Is Reasonably Undervalued Compared With Peers

  Market Analytics • Tue, Jun 11 • 5 Comments
• COP
  ConocoPhillips Should Return To Production Growth By 2014

  Harlan Kessler • Tue, Jun 11 • 3 Comments

• CHK
  12:28 PM Chesapeake Energy (CHK -1.2%) shareholders fail to approve a proposal to declassify the company’s board of directors, a step that would have made it easier to replace the entire board all at once. The board actually had supported a change which would have eliminated the current board structure, where each of the eight directors serves a staggered three-year term. [Energy] 1 Comment
• CMCSA
  12:27 PM Comcast’s (CMCSA -0.4%) NBCUniversal launches a new version of its video on demand service in the U.K. and Ireland. The library of titles has been expanded and more devices can be used for the service which hopes to compete with local streaming options from Netflix and Amazon. [Consumer] Comment!
• AXP
  12:27 PM Barclays downgrades American Express (AXP -1.6%) to Equalweight, leading shares of the transaction-processing giant to slump; they remain up 30% YTD. Oppenheimer started coverage on AmEx with a Perform yesterday. [Financials] Comment!
• STML
  12:20 PM Shares of Stemline Therapeutics (STML +4.5%) move up again today, hitting another 52-week high. The stock has soared over 34% since Monday, when its treatment for blastic plasmacytoid dendritic cell neoplasm, SL-401, received an Orphan Drug designation from the FDA. [Healthcare, On the Move] Comment!
• STI
  12:16 PM SunTrust (STI -2.4%) slides on a downgrade to Neutral from UBS’ Stephen Scinicariello, who thinks the bank’s higher credit leverage (the result of an improving economy/housing market and mortgage banking strength) is priced in following a 43% YTD gain. Scinicariello adds other catalysts, such as loan growth, a commercial mix shift, and cross-selling efforts, “could take longer to achieve.” [Financials, On the Move] Comment!
• WPZ, WMB
  12:13 PM Williams Partners (WPZ -0.6%) is downgraded to Hold from Buy and removed from the Select List at Stifel Nicolaus after yesterday’s explosion at the Louisiana olefins plant. The firm expects a significant financial impact, especially in the short term as ethylene margins had been relatively strong. Stifel is waiting before revising its estimates but is confident results will be below expectations. [Energy, Quick Ideas] Comment!
• TWC, LMCA
  12:01 PM The dancing between media giants continues as a new report suggests Time Warner Cable (TWC +2.7%) has had talks with Liberty Media (LMCA +0.5%). [Consumer, M&A] Comment!
• 12:00 PM On the hour: Dow -0.52%. 10-yr +0.3%. Euro -0.34% vs. dollar. Crude +0.96% to $97.62. Gold +0.75% to $1388.15. Comment!
• AVNR
  12:00 PM Avanir Pharmaceuticals (AVNR +4.2%) moves up today after being initiated at Mizuho Securities with a Buy rating and a price target of $10 per share. The stock had a big move last week on news that the FDA has agreed to expedite the development of its AVP-786 compound – which could potentially reduce the costs and time associated with bringing the drug to the market. [Healthcare, On the Move] Comment!
• YGE
  11:56 AM Yingli (YGE -3.2%) will slow down its investment pace and stop paying a dividend (as it is, the company doesn’t pay one to ADS owners) in an effort to pare its debt load (totaled $2.5B at the end of Q1), the company says in a Chinese regulatory filing. Yingli’s near-term sales could be pressured by the arrival of a 37.3% EU import tariff, but its margins have been rising with the help of surging Japanese shipments – gross margin is expected to grow 700 bps Q/Q in Q2 to 11%. [Tech] Comment!
• OGXPY.PK
  11:43 AM OGX Petroleum’s (OGXPY.PK) bonds are plunging, a sign that investors are bracing for what would be the biggest company default in Latin America as controlling shareholder Eike Batista struggles to raise cash. OGX is set to run out of money in about a year at its burn rate as slumping production puts output goals out of reach, even after Batista pumped in nearly $1B. [Energy] 1 Comment
• CDXS
  11:37 AM Codexis (CDXS +17.1%) soars after reaching a milestone in its joint effort with Chemtex to “develop a fully integrated biomass to detergent alcohols technology.” Specifically, the company says scale-up was achieved in the production of CodeXol, CDXS’ “detergent alcohol fermentation process.” (PR) [On the Move] Comment!
• LNKD
  11:36 AM ITG Research raises its estimates for LinkedIn (LNKD +2.4%), citing higher order volumes and pricing (for ads, subscriptions, or both?). The professional social networking leader has largely been range-bound since March, after starting the year off with a bang. [Tech, On the Move] Comment!
• WPZ, COG
  11:35 AM Constitution Pipeline Company, jointly owned by Williams Partners (WPZ), Cabot Oil & Gas (COG), Piedmont Natural Gas (PNY) and WGP Holdings (WGL) announce plans to construct a 122-mile pipeline connecting natural gas production in Pennsylvania with northeastern markets by spring 2015. The project is estimated to cost ~$683M. [Energy] Comment!
• MNST
  11:31 AM Shares of Monster Beverage (MNST -2.9%) turn lower with a debate by the American Medical Association’s House of Delegates scheduled for this weekend raising speculation that it might make a statement supporting a partial advertising ban of energy drinks. Though the company has been battling the safety issue on a number of fronts for quite a while without decimating sales, the AMA carries enough clout to potentially be a disrupter. [Consumer, On the Move] Comment!
• WFC
  11:23 AM More on Sterne Agee’s Wells Fargo (WFC -0.9%) downgrade: Analyst Todd Hagerman (previous) says “meaningful multiple expansion from current levels is unlikely,” as “clearly moderating” EPS growth is set to be “exacerbated by the stubbornly low rate environment and normalizing mortgage banking revenues.” In related news, refi applications fell 36% last week from the first week of May, WSJ says, before noting that refinancing made up more than two thirds of all mortgage deals at WFC during Q1. (Also: WFC admits refi slowdown may hurt) [Financials] Comment!
• ATK
  11:22 AM Alliant Tech Systems (ATK -1%) and Alenia Aermacchi successfully complete the first phase of ground and flight tests of their MC-27J multi-mission aircraft. A Roll-On/Roll-Off Gun System pallet was installed and tested on the Alenia Aermacchi C-27J Spartan airlifter at Eglin Air Force base in Florida. The test events were designed and certified by the U.S. Air Force and marked off as successful by Air Force Special Operations Command. [On the Move] Comment!
• TMUS, SFTBF.PK
  11:21 AM T-Mobile USA (TMUS +3.3%) is “Plan B” for SoftBank (SFTBF.PK) if its merger with Sprint (S +0.3%) doesn’t go through, says CEO Masayoshi Son. But Son adds he “[plans] to go with Plan A if possible.” Reuters reported last week SoftBank is talking with Deutsche Telekom (DTEGY.PK) about buying its 74% stake in T-Mobile USA if the Sprint merger fails thanks to a rival bid from Dish (DISH). For now, Sprint’s board (unlike Clearwire’s) is spurning Dish. As always, Son isn’t lacking for confidence. “I am determined to be No. 1 in the world very soon in my industry … You are lucky not to be my competitor.” [Tech, M&A, On the Move] Comment!
• PTR
  11:16 AM PetroChina (PTR -3.6%) discloses a ~$3.3B investment in a new joint venture to construct oil and natural gas pipelines in China. [Energy, On the Move] Comment!
• KRFT
  11:08 AM Kraft Foods (KRFT -0.7%) says it will create two new standalone business units for reporting purposes. Meals and Desserts (Cool Whip, Jello-O, Kract Mac & Cheese) and Enhancers and Snack Nuts (Miracle Whip, Grey Poupon, Good Seasons, A-1 steak sauce) are the two units which will become effective on July 1. [Consumer] 1 Comment
• UUP, UDN
  11:08 AM The IMF cuts its 2014 U.S. GDP growth outlook to 2.7% from 3%. The organization cut its 2013 forecast for U.S. growth to 1.7% from 2% in April. [U.S. Economy, Breaking News] Comment!
• TWX
  11:04 AM Warner Bros. (TWX) spent an estimated $225M to make Man of Steel in the hopes the film will kickstart a whole new string of hits for the franchise. The box office estimate for the opening weekend in the U.S. is right around $115M of which the studio will get a decent cut. What to watch: If the film is a box office and critical success, look for more talk of sequels and a potential Justice League movie down the road. [Consumer] Comment!
• 11:00 AM On the hour: Dow -0.48%. 10-yr +0.3%. Euro -0.28% vs. dollar. Crude +1.22% to $97.87. Gold +0.8% to $1388.85. Comment!
• CPST
  10:59 AM Capstone Turbine (CPST -7%) slides on the back of a mixed FQ4 earnings report yesterday and a downgrade to Hold on valuation by analysts at Ardour Capital. [Earnings, On the Move] 1 Comment
• CLR
  10:59 AM A Reuters discussion of the divorce of Continental Resources (CLR -1.2%) CEO Harold Hamm and his ~$11B fortune, and notes Hamm may have to unload a portion of his 68% stake in CLR to raise cash, which could cut his stake to less than 50%. A sale of a large block of CLR shares likely would send the price down, but if Hamm puts more shares onto the market, investors might eagerly snap them up. [Energy] 1 Comment
• INVN, STM
  10:56 AM Apple is ramping as an InvenSense (INVN +5.4%) customer and the Sep. quarter will be an inflection point for sales, says Piper in a note giving a lift to the motion sensor maker’s shares. Pac Crest, Wedge Partners, and most recently Goldman have already reported of an iPhone 5S design win for InvenSense; Goldman added it thinks InvenSense “holds a cost advantage and a clearer roadmap for advanced products” than archrival and historical Apple supplier STMicroelectronics (STM), and also raised the possibility of iPad and low-cost iPhone design wins. [Tech, On the Move, Quick Ideas] Comment!
• BKS
  10:52 AM Barnes & Noble (BKS +1.9%) trades higher as shares keep up their bouncy ways. Though this week the focus has been on the on-again, off-again rumored dalliance of Microsoft with Nook Media, Jim Cramer reminds investors that on the retail bookstore side B&N is the only game in town. To many, the sum of the parts still looks to be worth more than the whole if BKS trades below $20. [Consumer] Comment!
• ARNA
  10:49 AM ConsumerReports advises overweight individuals to just “skip” Arena Pharmaceuticals’ (ARNA -2.2%) Belviq citing “slim results” and “risks galore.” The nonprofit says its medical advisers note that users can expect to lose only 3-3.7% of their body weight over the course of a year and may gain it back. Risk factors cited in the report include “headache, dizziness, fatigue, nausea, dry mouth, and constipation.” The report recommends the following alternative: “eat less and exercise.” [Healthcare, On the Move] 4 Comments
• AMSC
  10:43 AM Mixed FQ4 results and light guidance lead American Superconductor (AMSC -10.6%) to tumble towards its 52-week low of $2.30. The superconductor/wind turbine parts maker expects FQ1 revenue to exceed $22M and EPS to be better than -$0.26; the consensus is at $24.1M and -$0.18. FQ4 gross margin was 11.1%, +600 bps Q/Q but -130 bps Y/Y. Wind division sales -47% Y/Y (were -33% in FQ3), grid division -3% (a big reversal from FQ3′s +34%). R&D spend -35% Y/Y to $3.8M, SG&A -23% to $13.3M. (PR) [Tech, Earnings, On the Move] Comment!
• HDNG
  10:42 AM Hardinge (HDNG -1.2%) slips in spite of an upbeat intiation at Ascendiant this morning with a Buy rating and a $17 price target. The firm says that the company’s recent acquisition of Forkardt is expected to increase higher margin workholding revenue to one third of total sales from roughly one quarter of sales currently. Additionally, the company has made investments in existing facilities which should improve productivity and expand capacity. [On the Move] Comment!
• AN, SHLD
  10:41 AM The sale of AutoNation (AN +1.8%) shares by Eddie Lampert’s ESL Partners appears to be tied to client redemptions, according to a Bloomberg report. Turmoil at Sears Holdings (SHLD -0.7%) could be part of the anxiety. (video) [Consumer] 11 Comments
• MPEL
  10:33 AM Oppenheimer walks away from a meeting with management at Melco Crown (MPEL +0.6%) convinced the casino operator can continue to improve table yields and boost its penetration rate in Mainland China. Though the short-term outlook looks good, the long-term view is also promising with Japan and Taiwan sitting as two potentially-attractive markets for the company. The investment firm maintains MPEL at an Outperform rating along with the $30 price target on shares. [Consumer] Comment!
• CCJ
  10:27 AM Cameco (CCJ +1.1%) says it has received an operating license for its 50%-owned Cigar Lake uranium project in Saskatchewan. CCJ expects to begin jet boring in ore this summer, with the first packaged pounds expected in Q4. [Energy] 1 Comment
• CAKE, DFRG
  10:25 AM Restaurant watch: Forecasts have been slowly improving for the restaurant industry including a reading on the National Restaurant Association’s Restaurant Performance Index hit which hit a ten-month high in April. Chains that don’t offer discount pricing could benefit as traffic picks up and some operators remain stuck in a value mode, according to NPD.  Cheesecake Factory (CAKE +0.8%), Del Frisco (DFRG +0.3%), and Ruth’s Hospitality (RUTH +3.1%) fit the bill. [Consumer, Quick Ideas] Comment!
• NBL
  10:20 AM Noble Energy (NBL +0.2%) says its second Gunflint appraisal confirmed the resources of the Gulf of Mexico discovery but failed to find commercial hydrocarbons with its deeper target. Once operations are completed, the well will be suspended for future use. The net cost of drilling the lower exploration zone was ~$15M, which will be expensed in Q2. [Energy] Comment!
• BBRY
  10:17 AM “Anecdotal checks” indicate strong U.S. demand for the Q10 (particularly among business users) and soft Z10 demand, says Wells Fargo, which is raising its FQ2 (Aug. quarter) revenue and EPS estimates for BlackBery (BBRY +2.5%) to $3.4B and $0.15 (consensus is at $3.3B and $0.12) . Wells, which has a valuation range of $19-$20, also thinks the consensus for FQ1 BB10 sales has risen to ~3.5M, sees possible upside to its FQ1 and FY14 estimates, and believes shares could “react favorably” if BlackBerry simply meets FY14 forecasts. 1M Q5 sales are forecast for FQ2. (SocGen) (Jefferies) [Tech, On the Move] 11 Comments
• AHT
  10:12 AM Ashford Hospitality Trust (AHT) declares $0.12/share quarterly dividend, in line with previous. Forward yield 3.50%. For shareholders of record June 28. Payable July 15. Ex-div date June 26. (PR) [Dividends] Comment!
• LHO
  10:11 AM LaSalle Hotel Properties (LHO) declares $0.20/share quarterly dividend, in line with previous. Forward yield 3.18%. For shareholders of record June 28. Payable July 15. Ex-div date June 26. (PR) [Dividends] Comment!
• RLJ
  10:11 AM RLJ Lodging Trust (RLJ) declares $0.205/share quarterly dividend, in line with previous. Forward yield 3.49%. For shareholders of record June 28. Payable July 15. Ex-div date June 26. (PR) [Dividends] Comment!
• GM, F
  10:10 AM The Big Three (GM, F, FIATY.PK) automakers are lobbying hard for continued tariffs on Japanese cars, according to Nikkei. The existing import tariffs in the U.S. on Japanese automakers (TM, HMC, NSANY.OB, MZDAY.PK, SZKMY.PK) have been a key negotiating point in recent trade talks and proposed agreements. [Consumer] Comment!
• MYGN, DGX
  10:09 AM Myriad Genetics (MYGN -7.1%) slumps and is now off ~22% since intraday highs hit Thursday after the Supreme Court’s ruling on gene patents. Investors’ fears that methods outside of MYGN’s cDNA synthetics can be used to analyze genes were seemingly confirmed when Quest Diagnostics’ (DGX +0.7%) director of media relations said the company plans “to validate and offer a BRCA1 and BRCA2 test service to physicians and patients later this year” (more). “The focus now shifts to the competitive dynamic,” Jefferies says, reiterating a Hold rating. Meanwhile, BofA and RBC cut the shares to Neutral and Sector Perform respectively. (previous) [Healthcare, On the Move] Comment!
• 10:00 AM On the hour: Dow +0.09%. 10-yr +0.26%. Euro -0.38% vs. dollar. Crude +1.48% to $98.12. Gold +0.79% to $1388.65. Comment!
• WMT
  9:59 AM Wal-Mart’s (WMT +0.1%) arm in Mexico is reportedly considering selling its Vips restaurant business as part of a broader plan to shed non-core assets which are holding down sales growth. [Consumer] Comment!
• 9:56 AM June Reuters/UofM Consumer Sentiment: 82.7 vs. 84.5 expected and 84.5 prior. [U.S. Economy] 1 Comment
• SHLD
  9:55 AM Shares of Sears Holdings (SHLD +0.5%) trade higher after the company announces store closings in Canada. Brian Sozzi of Belus Capital Advisors says it’s only the first wave of what could be “many many” closures. The stat that tells it all: In the U.S., Sears’ same-store sales have fallen 7 straight years. [Consumer, On the Move] Comment!
• NOK, SI
  9:54 AM Nokia (NOK +4.2%) rallies after the WSJ reportsSiemens (SI -0.5%) is talking to P-E firms, including TPG, KKR, and Blackstone, to “gauge their interest” in buying its 50% stake in Nokia Siemens, and that Nokia itself is thinking of buying Siemens out (possibly with the help of Finnish sovereign wealth fund Solidium). Analysts have pegged the value of NSN, which has turned profitable following a huge restructuring, at above €7B ($9.4B) after factoring debt. Bloomberg reported in February Nokia and Siemens had “intensified talks” to end Siemens’ involvement in NSN. [Tech, On the Move, M&A] 14 Comments
• ACAD
  9:52 AM JMP (Outperform) boosts its price target on Acadia Pharmaceuticals (ACAD +3.2%) to $27 from $16. SA contributor PTSD Trader recently said pimavanserin is the “silver lining in the company’s playbook.” [Healthcare, On the Move] Comment!
• JPM
  9:45 AM JPMorgan (JPM -0.6%) says its private-equity unit One Equity Partners will become independent and will raise its next fund from an external group of limited partners. The group will continue to manage existing portfolio companies for the bank. (PR) [Financials] Comment!
• CLF
  9:42 AM Cliffs Natural Resources’ (CLF +2.9%) deal with Essar Steel Algoma to extend its iron ore pellet sales contract plan through 2024 is a positive move, FBR Capital says, given it provides some certainty of volumes beyond 2016. With the contract extension, the firm believes the supply/demand dynamics improve for the Great Lakes beyond 2015 as it reduces potential surplus supply. [Commodities, On the Move] Comment!
• HIMX
  9:42 AM Himax (HIMX -5.3%) slumps to $5.46 after pricing its 22.1M-share stock offering (the shares are being sold on behalf of top shareholder/customer Innolux) at $5.25. No word yet on if/when Himax will make a similar offering on its own behalf (as is made possible by recent filings). [Tech, On the Move] Comment!
• BCSB, FNB
  9:35 AM BCSB Bancorp (BCSB +32.7%) soars after entering into a definitive merger agreement to be acquired for $23.77/share by F.N.B. Corp. (FNB -1.3%) in an all stock deal worth $79M. (PR) [Financials, M&A, On the Move] Comment!
• RBCN
  9:35 AM Rubicon (RBCN -4.3%) opens lower after getting cut to Sell by Goldman’s Brian Lee, who says checks indicate ongoing 6″ LED wafer share loss at top customer LG, and the potential for ASP drops of 25%-30% in the 6″ market (made up 1/3 of 2012 sales). He thinks this translates into “downside risk” following Rubicon’s run-up. SA Pro contributor Valuable Insights recently argued Rubicon is due for a cyclical upturn, and that wafer prices (often below cost) can only go up from here. [Tech, On the Move] Comment!
• 9:31 AM At the open: Dow -0.06% to 15168. S&P -0.07% to 1635. Nasdaq -0.07% to 3443. Treasurys: 30-year +0.16%. 10-yr +0.18%. 5-yr +0.14%. Commodities: Crude +1.33% to $97.98. Gold +0.61% to $1386.15. Currencies: Euro -0.45% vs. dollar. Yen -0.17%. Pound +0.46%. Comment!
• DD
  9:30 AM DuPont (DD) -1.4% premarket as BAML downgrades shares to Neutral from Buy after DD said yesterday it expects its H1 operating EPS to come in ~10% below last year vs. an earlier 7%-9% lower outlook. Jefferies trims its 2013-15 EPS estimates but keeps its rating at Hold and raises its price target to $56 from $52. [Commodities, Quick Ideas] Comment!
• ELN
  9:27 AM Elan (ELN) says that “in light of the expressions of interest” it will formally begin the process of a sale. Although Royalty Pharma “will be invited to participate, shareholders are urged not to tender into the current Royalty Pharma hostile offer,” the company says. ELN +10% premarket. (PR) [Healthcare, On the Move, Breaking News] Comment!
• BKW
  9:22 AM Burger King Worldwide (BKW) wants to take on McDonald’s and Yum Brands in South Africa to take advantage of growth opportunities in the region. The restaurant operator will start with 12 new openings next year. [Consumer] Comment!
• MSFT, GOOG
  9:21 AM Microsoft (MSFT) finally releases a version of Office for the iPhone. But the app requires an Office 365 subscription, and while users can create/edit Word and Excel docs, they can’t yet do the same for PowerPoint. Interestingly, Microsoft tells The Verge it doesn’t plan to create an iPad app, arguing the Office Web Apps are available. With mobile productivity apps typically going for $10 apiece or less (much less than PC Office app licenses or 365 subscriptions), Microsoft seems more interested in using Office mobile apps to drive 365 sales and differentiate Windows 8/Phone than anything else. Google (GOOG) offers its Quickoffice apps for free to Google Apps for Business subs. (previous) [Tech] 5 Comments
• 9:20 AM Market preview: Stock futures point to slight losses at the open as traders grapple with the headline PPI, which posted a hotter than expected 0.5% M/M gain. Treasurys pared gains after an overnight advance, while the dollar ran to session highs as traders try to price in potential Fed tapering. The Nikkei rose 1.9% after yesterday’s 6.4% plunge, as Japan’s Lower House approved PM Abe’s growth plan. Later: consumer sentiment. Comment!
• RH, PXLW
  9:19 AM Premarket gainers: RH +13%. PXLW +11%. GRPN +8%. SCTY +8%. SYRG +6%. INVN +6%. ACAD +6%. SWHC +5%. Losers: CEMP -14%. AMSC -9%. HIMX -7%. CLSN -5%. [On the Move] Comment!
• 9:15 AM May Industrial Production: 0.0% vs. +0.2% expected, -0.4% prior (revised). Capacity utilization 77.6% vs. 77.9% consensus; 77.7% prior (revised). [U.S. Economy] 1 Comment
• 9:13 AM While producer prices may have risen more than expected and the most since February last month, don’t expect anyone to get too bent out of shape. Stripping out food and energy — which rose 0.6% and 1.3% respectively thanks to a spike in prices for the always dangerous combination of eggs, imitation cheese, and gasoline — wholesale prices rose only 0.1% (nicely in line with estimates) and just 1.7% Y/Y. The accepted interpretation from Reuters: “Underlying inflation pressures remained muted, which could argue against an early scaling back of QE.” [U.S. Economy] 4 Comments
• LPI
  9:04 AM Laredo Petroleum (LPI) appoints Jay Still as President and COO effective July 8, replacing Jerry Schuyler, who is leaving the company next year. Still completed 18 years at Pioneer Natural Resources, where he recently served as executive vice president of domestic operations. [Energy] Comment!
• 9:00 AM On the hour: S&P -0.13%. 10-yr +0.18%. Euro -0.45% vs. dollar. Crude +1.07% to $97.72. Gold +0.71% to $1387.55. Comment!
• BA, BEAV
  8:52 AM Color from Morgan Stanley’s aerospace upgrades: Boeing (BA) initiated at Overweight (PT $120) and is a “key beneficiary of the commercial aerospace upcycle [as] record backlogs [should] increase production rates [and] drive return on capital to investors,” B/E Aerospace (BEAV) initiated at Overweight (PT $77) on its position as a “near-pure-play [on] increasing wide-body production rates” (787, 777, A350 XWB), and TransDigm (TDG) is initiated at Overweight (PT $177) on its “organic and M&A driven growth opportunities.” Comment!
• FCX
  8:50 AM Workers at Freeport McMoRan’s (FCX) massive mining operations in eastern Indonesia call off a threatened strike after the company suspended five managers in the wake of last month’s deadly accident, but the miner’s production operations remain halted. FCX says the halt is causing a production loss of 3M lbs. of copper and 3K oz. gold per day. [Commodities] 2 Comments
• ASTX
  8:40 AM Astex Pharmaceuticals (ASTX) jumps 4% before the bell after saying treatment with the hypomethylating agent, SGI-110 produced an overall clinical response rate of 40% in patients with heavily pre-treated myelodysplastic syndrome (preleukemia). (PR) [Healthcare, On the Move] Comment!
• GNRC
  8:39 AM Generac (GNRC) -2.6% premarket after announcing funds affiliated with its largest shareholder CCMP Capital are selling 6.5M GNRC shares. GNRC had 68.4M shares outstanding as of May 1. [Consumer, On the Move] Comment!
• CEMP
  8:33 AM Shares of Cempra (CEMP) crater 12% premarket after the company announced a proposed public offering Thursday evening. [Healthcare, On the Move] Comment!
• SFD
  8:33 AM Smithfield Foods (SFD): FQ4 EPS of $0.21 misses by $0.21. Revenue of $3.32B (+3% Y/Y) beats by $0.05B. (PR) [Earnings, Breaking News, Consumer] Comment!
• 8:31 AM Q1 Current Account: -$106.1B vs. consensus of -$111.2B; -$110.4B in Q4. [U.S. Economy] Comment!
• 8:30 AM May Producer Price Index: +0.5% vs. +0.2% expected and -0.7% prior. Core PPI +0.1% vs. +0.1% expected and +0.1% prior. [U.S. Economy] Comment!
• EPHE, EIDO
  8:30 AM Markets in Southeast Asia cap off a week of wild swings (I, II, III) with gains as stocks in the Philippines (EPHE), Indonesia (EIDO, IDX), and Thailand (THD) jump 2.1%, 3.32%, and 4.42% respectively. Of course, Philippine Finance Secretary Cesar Purisima wasn’t losing any sleep anyway: “I am not concerned because Philippine economic fundamentals are good and improving,” he says, adding that “markets go up and down.” Elsewhere, the Straits Times (EWS, EWSS) rises 1% and stocks in Vietnam (VNM) are in the red by 1.18%. [Global & FX] Comment!
• XOM, RDS.A
  8:29 AM Owners of prospective U.K. shale acreage reportedly spurned interest from four of the world’s oil majors – Exxon (XOM), Shell (RDS.A), Total (TOT) and Statoil (STO) – in favor of a deal with Centrica (CPYYF.PK) due to its perceived ability to more easily maneuver through political risks. The deal highlights the growing interest in U.K. shale gas reserves even though it’s not known if gas can be commercially produced from the license area. [Energy] 3 Comments
• WHR
  8:24 AM Analysts think a fresh round of stimulus from Brazil will benefit Whirlpool (WHR) which is a big seller in the nation and has a lot of tax credits. [Consumer] Comment!
• 8:18 AM Credit Suisse analyst Satya Kumar believes California will support distributed solar generation and upgrades SolarCity (SCTY +9.32% premarket) to Outperform from Neutral. The price target on the shares is now $52 from $28 and Kumar thinks FY14′s net loss will be only around one third as wide as consensus. [Energy, On the Move] Comment!
• NWS, NWSA
  8:17 AM News Corp. (NWS, NWSA) trades 1.1% lower premarket after announcing longtime CFO David DeVoe will retire. It’s a busy time for Rupert Murdoch these days, not only is his business splitting into two, he’s also reported to be splitting up his marriage. Unlike the predicament Steve Wynn found himself in with shares of Wynn Resorts and a divorce situation, Wendi Murdoch doesn’t have a sizable stake in the media company. [Consumer] 1 Comment
• ED
  8:10 AM Consolidated Edison (ED) is upgraded to Buy from Neutral at Citigroup after the firm’s positive meetings with ED management and a recent pullback in shares. The upward revision is based on wide support for storm hardening spending including at Mayor Bloomberg’s recent press conference, leading to further rate base growth, and the removal of overhangs from Hurricane Sandy response. ED +0.7% premarket. [Energy, Quick Ideas] Comment!
• AMSC
  8:05 AM American Superconductor (AMSC): FQ4 EPS of -$0.35 misses by $0.14. Revenue of $20.4M beats by $1.6M. (PR) [Earnings, Breaking News, Tech] Comment!
• WFC
  8:04 AM Sterne Agee cuts Wells Fargo (WFC) to Neutral from Buy, price target unchanged at $42. Details as they become available. (Previous: Atlantic says WFC probably “over earning” on elevated refi volumes) [Financials] Comment!
• LAS
  8:04 AM Lentuo International (LAS): Q1 EPS of -$0.02. Revenue of $112.8M (-7.4% Y/Y). (PR) [Earnings, Breaking News] Comment!
• 8:00 AM Three breakfast reads: 1) The Fed’s Third Mandate 2) Brazil losing reserves fast as speculators attack real 3) Japan: No News Is Bad News [U.S. Economy, Global & FX] Comment!
• 8:00 AM On the hour: S&P -0.1%. 10-yr +0.17%. Euro -0.50% vs. dollar. Crude +0.42% to $97.1. Gold +0.11% to $1379.25. Comment!
• HRL
  7:58 AM Hormel Foods (HRL) gets an upgrade to Buy from Hold from KeyBanc (PT $48) as accretion from the acquisition of the iconic Skippy peanut butter brand, lower costs, and improved new product growth should create upside to FY14 EPS estimates. Meanwhile, SA contributor Joseph Reinke said recently that the shares are overvalued and present a “low to negative return potential with moderate risk.” [Consumer] Comment!
• SHLD
  7:57 AM Sears Holdings (SHLD) is selling the leases of two stores in Toronto back to their landlords for $191M. A third store could fetch another $53M within the next five years if an option is exercised. The moves come amid heightened competition in Canada with Target opening stores this year and Nordstrom to follow shortly. [Consumer] 1 Comment
• BA
  7:51 AM Boeing (BA) reportedly is set to launch a larger, 323-seat version of its 787 Dreamliner to meet demand for long-haul travel within Asia and elsewhere, with a formal announcement likely at next week’s Paris Airshow. The arrival of a new 787 version has been anticipated, as Singapore Airlines made a provisional commitment to buy the $300M plane; other airlines also could be part of an early pool of buyers. 4 Comments
• HYGS
  7:49 AM SA Pro contributor pick Hydrogenics (HYGS), up some 60% since Joe Springer’s May 23 recommendation, says the largest Power to Gas facility in the world is now live in Falkenhagen, Germany. (PR) [Energy] Comment!
• ZMH
  7:48 AM Zimmer Holdings (ZMH) declares $0.20/share quarterly dividend, in line with previous. Forward yield 1.02%. For shareholders of record June 28. Payable July 26. Ex-div date June 26. (PR) [Dividends] Comment!
• RCAP
  7:48 AM RCS Capital (RCAP) declares its first ever quarterly dividend of $0.18/share. Forward yield 4.15%. For shareholders of record June 28. Payable July 10. Ex-div date June 26. (PR) [Dividends] Comment!
• TCBK
  7:48 AM TriCo Bancshares (TCBK) declares $0.11/share quarterly dividend, 22.2% increase from prior dividend of $0.09. Forward yield 2.07%. For shareholders of record June 22. Payable June 28. Ex-div date June 19. (PR) [Dividends] Comment!
• FBNC
  7:47 AM First Bancorp (FBNC) declares $0.08/share quarterly dividend, in line with previous. Forward yield 2.29%. For shareholders of record June 30. Payable July 25. Ex-div date June 26. (PR) [Dividends] Comment!
• CMCSA
  7:47 AM NBC Entertainment (CMCSA) president Jennifer Salke says management at the network has two years to turn around its primetime schedule to pull itself out of its ratings morass. New shows on the network will be promoted on The Voice but will then need to stand on their own, notes the exec. [Consumer] 1 Comment
• GRPN
  7:40 AM Groupon (GRPN) +7.8% premarket as Deutsche Bank upgrades shares to Buy from Hold and lifts its price target to $10 from $6. GRPN should be in a position to grow billings 20% or more on the transition to a pull strategy, DB says, marked by further traction in mobile and SEO/SEM, which should result in up to 30% upside to 2015 consensus EBITDA in a bull case. [Tech, Quick Ideas, On the Move] Comment!
• LULU
  7:39 AM Lululemon (LULU) will open standalone men’s stores before 2016, according to CEO Christine Day. The outgoing exec made the announcement yesterday during the retailer’s presentation at the William Blair & Company Growth Stock Conference. (webcast) [Consumer] 1 Comment
• INO
  7:39 AM Shares of Inovio (INO) rise 16.13% premarket as the company’s H7N9 (Avian Flu) vaccine produces a protective antibody response in 100% of animals vaccinated. The HAI titer was 1:130 versus the 1:40 required to demonstrate protection in humans. (PR) [Healthcare] 2 Comments
• OMEX
  7:19 AM Odyssey Marine Exploration (OMEX) nets $8.75M on a $10M early exercise of an option held by Mako Resources to purchase 8M shares of Oceanica Resources, S. de R.L., owned by Odyssey. The exercise price of $1.25/share, discounted from an original $2.50 in order to facilitate this transaction, represents a 25% increase over the price Mako paid for the 15M shares of Oceanica it bought in February. Mako still holds an option to buy another 7M shares of Oceanica at $2.50 before Dec. 31. (PR) [Breaking News] 3 Comments
• F
  7:14 AM Ford (F) says it will target a 30% reduction in carbon dioxide emissions per vehicle by 2025 after it saw a 37% reduction in the metric for the period from 2000 to 2010. [Consumer] 1 Comment
• HMC
  7:06 AM Honda (HMC) says it will delay producing electric vehicles in China as it waits to find a source for cheaper parts. The automaker indicates production will start within the next three years. [Consumer, Global & FX] Comment!
• GME
  7:01 AM Oppenheimer upgrades GameStop (GME) to Outperform to go along with a price target lift up to $50. GME +1.4% premarket. (Previous: GameStop cruises through E3 better than expected) [Consumer] Comment!
• 7:00 AM On the hour: S&P -0.19%. 10-yr +0.19%. Euro -0.41% vs. dollar. Crude +0.34% to $97.02. Gold +0.11% to $1379.25. Comment!
• UPI
  6:58 AM Uroplasty (UPI) indicates it will delay filing its annual report until it completes a review of internal controls concerning employee expense reimbursements. UPI -16.4% premarket. [Healthcare, On the Move] Comment!
• NTDOY.PK
  6:55 AM Nintendo (NTDOY.PK) CEO Satoro Iwata says relaxed marketing efforts by the company are partially to blame for the poor sales of the Wii U on top of the game delays which got the gaming console off to a rough start. He thinks if one publisher has a breakaway hit the Wii U can become relevant, but that could be wishful thinking. Electronic Arts skipped the platform completely during it E3 announcements this year. [Consumer, Global & FX] Comment!
• MHR
  6:53 AM Magnum Hunter (MHR): FQ4 EPS of $0.05 beats by $0.12. Revenue of $83.7M beats by $1.07M. (PR) [Earnings, Breaking News] 1 Comment
• ODP
  6:45 AM Office Depot (ODP) has been sued by Starboard for not holding an annual shareholder meeting to elect directors for over 13 months. Starboard says it wants to reconstitute the board even with a merger on tap and has six candidates to nominate for the job. [Consumer] Comment!
• 6:22 AM Bank of England Deputy Governor Paul Tucker has resigned and will probably leave the BOE in the autumn. Tucker’s departure comes after he lost out to Mark Carney for the top job at the bank, and after he faced questions about his role in the scandal over Libor manipulation. Tucker has been an active member of the G20′s Financial Stability Board and of other international committees, so his resignation could lead to a loss of influence for the bank. (PR) [Global & FX, Top Stories, Breaking News] Comment!
• DTEGF.PK, VZ
  6:15 AM T-Mobile USA (DTEGF.PK) and Verizon Wireless (VZ, VOD) are reportedly not part of the NSA’s program to collect metadata about the phone calls on their networks, partly due to their ownership ties to foreign companies. However, it’s likely that the NSA is still able to scoop up the metadata, as the the calls eventually travel on infrastructure operated by U.S. companies that do work with the NSA. [Tech, Consumer] 4 Comments
• 6:00 AM Overseas: Japan +1.94%. Hong Kong +0.39%. China +0.64%. India +1.76%. London +0.37%. Paris +0.34%. Frankfurt +0.62%. 1 Comment
• SSNLF.PK
  5:59 AM Samsung has unveiled the Galaxy S4 Zoom (SSNLF.PK), a version of its new flagship phone that incorporates a 16MP camera with a 10x optical zoom. The 4.3″ device is an attempt to show that it’s possible to incorporate such a high-quality camera inside a phone while keeping the device slim enough to attract customers. It may also be an attempt by Samsung to gain market share in the digital camera market, where it remains well behind leading vendors such as Canon and Nikon. (previous) [Tech, Consumer] 1 Comment
• 5:44 AM India’s wholesale price index, its main inflation gauge, slowed to a 3 1/2 year low of +4.7% on year in may from 4.9% in April. Inflation has been dropping over recent months, due to easing food and commodity prices, as well as the Reserve Bank of India’s tight monetary policy. The RBI is due to hold a policy meeting next week, when it will be under pressure to cut its key interest rate from 7.25% because of the falling inflation and stuttering economy, and despite the weak rupee. [Global & FX, Top Stories] Comment!
• 5:17 AM Eurozone employment fell 0.5% on quarter in Q1 to 145.1M vs -0.3% in Q4 2012. On year, employment dropped 1% vs -0.8%. Lithuania and Estonia enjoyed the largest increases in employment, while Greece and Portugal suffered the largest declines. (PR) [Global & FX] Comment!
• 5:12 AM Eurozone inflation rose to 1.4% on year in May from 1.2% in April. Core CPI increased to 1.2% from 1%. On month, inflation rose to 0.1% from -0.1%. All the readings were in line with consensus. The lowest rate was in Greece (-0.3%) and the highest in Romania (4.4%). The biggest contributors to inflation were fruit and vegetables and electricity, while fuel for transport, telecommunications and medical & paramedical services had the largest impact on keeping prices down. (PR) [Global & FX, Top Stories] Comment!
• VLKAY.PK, VLKAF.PK
  5:03 AM Volkswagen (VLKAY.PK) reports May sales +6.9% y/y to 816,500 vehicles. Sales YTD +5.9% to 3.87M. “Audi, Volkswagen Passenger Cars and Porsche as well as SEAT maintained delivery levels in spite of continuing difficult market conditions. Meanwhile, developments on markets worldwide remain uneven and are characterized by continuing economic uncertainty, above all in Western Europe. In contrast, the sales situation in China remains encouraging.” (PR) [Earnings] Comment!
• EADSF.PK, BA
  4:58 AM Airbus’ (EADSF.PK) A350 wide-bodied jet has taken off from the company’s Toulouse factory on its maiden flight after eight years of development that has cost an estimated $15B. Built with lightweight carbon composites and boasting increased fuel efficiency, the A350 is seen as a direct competitor to Boeing’s (BA) troubled 787. The A350 has so far attracted over 600 orders. [Top Stories] 6 Comments
• INTC, DIS
  4:47 AM Intel (INTC) is reportedly encountering difficulty in signing up programming deals for its upcoming online TV service, with major media companies such as Disney (DIS), Time Warner (TWX), Viacom (VIA), News Corp (NWS) and Comcast (CMCSA) yet to sign on. Pressure from cable TV providers such as Time Warner (TWC) is one reason, as is a fear of damaging the current lucrative ecosystem that the content and service providers enjoy. [Tech, Consumer] 13 Comments
• FEZ
  4:33 AM Most European shares (FEZ) follow their Asian counterparts higher on reduced fears about the tapering off of the Fed’s money printing splurge. EU Stoxx 50 +0.5%, London +0.5%, Paris +0.4%, Frankfurt +0.9%, Madrid +0.5%, Milan -0.1%. [On the Move, Global & FX, Top Stories] Comment!
• DXJ, EWH
  4:25 AM Asian stocks fall sharply and then recover some but not all of their losses a day or so later. That seems to have been a recurring pattern over the past few weeks since the great global sell-off began and the past couple of days have been no different. Shares bounced back today, helped by decent retail sales data in the U.S. yesterday and a report that the Fed’s QE tapering will be so gentle you won’t even feel it. Japan (DXJ) +1.9%, Hong Kong (EWH) +0.4%, China (FXI) +0.6%, India (INDY) +1.5%, Australia (EWA) +2%, Philippines (EPHE) +2.1%, Thailand (THD) +3.6%. [Global & FX, Top Stories, On the Move] 4 Comments
• FIATY.PK
  4:00 AM Fiat could reportedly secure refinancing deals for its debt and that of Chrysler by the end of next week. Fiat (FIATY.PK) is poised to close an agreement with nine banks for €1.95B of its own debt, while it hopes to lower the rate of a $2.95B term loan at Chrysler as well. Fiat is also looking to raise money to acquire the 41.5% of Chrysler owned by the United Auto Workers’ retiree health-care trust. [Consumer] Comment!
• CG, HD
  3:42 AM Looking to benefit from the housing rebound, HD Supply plans to raise up to $1.33B in its IPO by selling 53.2M shares, or about 29%, for $22-25 each. At the midpoint of the range, the building supplies company would have an enterprise value of $8.67B, including a working-capital surplus of about $1.2B. HD Supply’s owners include Carlyle Group (CG) and former parent company Home Depot (HD), which has a 12.5% stake. Comment!
• BEE
  3:29 AM More on Strategic Hotels & Resorts (BEE) possible sale: The luxury hotel REIT has hired Wells Fargo unit Eastdil Secured to explore its options. Strategic’s portfolio includes Ritz-Carlton and JW Marriott luxury brands and is worth $3.5B, well above the company’s $1.82B market cap. The decision to consider a sale follows pressure from activist investor Orange Capital, which owns a 3.7% stake in Strategic. Shares jumped 10.6% in AH trading. [Consumer, M&A] Comment!
• DB, C
  3:19 AM The U.K. Financial Conduct Authority (FCA) has reportedly sent requests for information to Deutsche Bank (DB), Citigroup (C) and two other banks as part of an investigation into the possible manipulation of the $4.7T-a-day forex market, which is the biggest and one of the least regulated in the financial system. The FCA and other regulators are also looking to increase oversight of the market. (See WM/Reuters probe) [Financials, Global & FX, Top Stories] Comment!
• MBI, AGO
  3:06 AM Detroit emergency manager Kevyn Orr is due to unveil his restructuring plan for the debt-laden city today to public labor unions, bondholders and bond insurers, including MBIA (MBI) and Assured Guaranty (AGO). Orr will reportedly try to persuade creditors to accept as little as 10 cents on the dollar for the city’s debt. He has indicated that creditors would be far better off compromising now than taking their chances with a Chapter 9 bankruptcy filing. [U.S. Economy, Top Stories] 7 Comments
• 2:55 AM The renewal this year of a tax credit for R&D that had expired at the end of 2011 helped boost profit at many of the country’s biggest companies in Q1 2013, the WSJ finds. Among S&P 500 firms, 465 set aside 5.6% less money for taxes, helping their cumulative profits increase 6.7%. The credit didn’t apply in 2012 and is due to run out again at the end of this year. [U.S. Economy, Tech] Comment!
• 2:42 AM Japanese Prime Minister Shinzo Abe has pledged to unveil further steps to vanquish deflation after the elections for the upper house of parliament next month, when Abe’s Democratic Party is expected to gain a majority. Today, the cabinet approved the proposals that Abe has already announced, which have caused major disappointment due to the lack of corporate tax cuts, and deeper labor market and farming sector liberalization. [Global & FX] Comment!
• AMSC, SFD
  12:05 AM Notable earnings before Friday’s open: AMSC, SFD [Earnings] Comment!
• THD
  12:03 AM The baht fell and Thai stocks dropped 2.1% in Thursday’s session, but somehow THD popped 2.8% on heavy volume. Benzinga’s Todd Shriber writes that in the midst of the ETF’s multi-week decline, “If there is good news it is that all of THD’s previous nasty pullbacks have been followed by lengthy runs higher.” Comment!
• 12:00 AM Friday’s economic calendar: 8:30 Producer Price Index 8:30 Current Account 9:15 Industrial Production 9:55 Reuters/UofM Consumer Sentiment Comment!