About Us | Contact Us
September 30, 2014 5:53 PM EDT
Updated: Sep 30, 2014 7:56 AM EDT  

Cantor Morning News®

 

 

Today's Stories From Cantor Fitzgerald

 Dogukan Aksoy  (212) 610-2348

        Nick Cernero (212) 610-3629

      Tuesday, September 30th   2014

TOP NEWS

 

o   US STOCK FUTURES: S&P futures +5.6 vs fv, Nasdaq +13.1 vs fv, Dow +53 vs fv

o  US futures trade around levels previously reported and remain above fair value mirroring gains in Europe. Amidst a light corporate earnings calendar, Walgreen (WAG) is reporting results before the opening bell. Macro-data for today include the weekly updates on retail sales from ICSC-Goldman and Redbook at 7:45 ET and 8:55 ET, respectively. Jul Case-Shiller Home Price Index is published at 9:00 ET, followed by Sep Chicago PMI at 9:45 ET and Sep Consumer Confidence at 10:00 ET.

o  FX:EUR/USD Ran higher by 10-15 pips on better than expected German retail sales then drifted back down throughout the morning session breaking to 2-year lows around 1.2660 just before the release of Sept Eurozone CPI. After core CPI came in 0.2% lower than expected EUR/USD continued lower to 1.2620. Emerging market currencies are relatively quiet compared to yesterday with no real news out of protests in Hong Kong. USD/JPY tested below 109.20 (-30pips from the highs), while AUD/USD and NZD/USD rose 0.4% about $0.8760 and $0.7820 respectively.

o  GOLD: Gold fell to the lowest level since January on the outlook for higher US interest rates that strengthened the dollar. Silver also dropped to the lowest in four years.

o  TREASURIES:Treasury and Gilt yields rise after declining on Monday's session; Euro zone bond yields move lower following Euro Zone CPI data. Peripheral equity indices supported by weaker than expected core CPI data.

o  CRUDE: Brent and WTI heads for the biggest quarterly decline in more than two years as abundant crude supplies offset the reisk of disruption from conflict in the middle east.

o  European Markets: FTSE 100 (0.16%), DAX +0.49%, CAC40 +0.99%

o  Equity markets open slightly higher following the losses seen on Monday's session, RBS gains on guidance. . Macro economic data is in focus - with numerous releases leading to choppy trading. Peripheral debt spreads are mixed vs bunds. German cable operator Tele Columbus announced its intention to IPO and the latest new issue to start trading,

o  Asian Markets: Nikkei (0.84%), Hang Seng (1.28%), Shanghai Composite +0.26%

o  Chinese stocks rose again on Tuesday, with the Shanghai Composite Index adding 0.26%. The index capped its best quarterly performance since 2009, as it gained 15%. China markets are closed from 1-7-Oct for its national holiday. The Nikkei closed down (0.8%) Tuesday. Continued weakness in economic data was cited as a headwind. The index finished September up +4.9% and the quarter up +7.1%, but slipped back into negative territory for the year. The Nikkei is down (0.7%) ytd. China HSBC final manufacturing PMI dominated a rather active for economic data session. The final print declined from the 50.5 Flash print to 50.2 but remained in expansion for the 4th consecutive month.

o   BIG STORIES TODAY

o  EBay Announces Plan to Separate From Payments Unit PayPal:  EBay Inc., the world’s biggest online marketplace, said it would split off its payments arm   PayPal, finally bowing to pressure from activist shareholder  Carl Icahn after nine months.-BBG

o  China's stocks come back to life: The WSJ reported that there are signs the current rally in Chinese stocks may be the start of something bigger, not just a short-term phenomenon. It pointed out the largest quarterly rally since 2009 comes at a time when investors shift interest from the property market to stocks.-WSJ

o  Hedge fund sees Shanghai-HK link boost inflows: Bloomberg noted that Northwest Investment Management, a Hong Kong hedge fund, said its seeing more pension investor interest as the link of the Shanghai and Hong Kong exchanges opens up a new way to invest in China.-BBG

o  Protests continue; expected to pick up into holiday: Pro-democracy protests in Hong Kong gained momentum overnight, with more demonstrators joining the protests. More than 100K protesters were reported outside the main government offices and CBD in the main protests at Admiralty, while tens of thousands of protestors were also reported to be demonstrating in the Causeway Bay shopping district as well as in Mong Kok and Tsim Shua Tsui.-WIRES

o  Germany's Bundesbank says solid finances key for growth: Reuters cited comments by Bundesbank President Weidmann, who said that solid finances are a key precondition for achieving sustainable economic growth and not a contradiction, as many suggest.-Reuters

o  Macroeconomic Indicators Turn Less Positive in Recent Weeks: Our macroeconomic indicators generally suggest the U.S. economy lost a bit of momentum in recent weeks.  Wage and salary growth has pulled back.  Income tax withholdings increased 3.2% y-o-y in real terms in the past five weeks, below the 3.6% y-o-y in July and 3.7% y-o-y in August.  The TrimTabs Macroeconomic Index, a correlation weighted composite index of leading economic variables, has turned flat.-TRIMTABS

o  Liquidity Indicators Remain Negative for Short Term: We turned outright negative on U.S. equities on a short-term basis two weeks ago, and the S&P 500 has dropped slightly since that time.  We have no reason to change our stance now based on liquidity data.  Both our demand indicators and our supply indicators suggest stock prices are likely to be flat to lower over the next week or so.-TRIMTABS

o  Apple Wins China Approval for IPhone 6 With Sales Next Month: Apple Inc. will sell the new iPhone 6 and iPhone 6 Plus in China next month after agreeing to improve user security and privacy.-BBG

o  Apple Irish Tax Deal Deviated From Arm’s Length Concept:  Apple Inc.’s tax deals with Ireland don’t comply with international standards and the company may need to repay improper subsidies dating back to 2003, the European Union said.-BBG

o  AMC Said Close to $200 Million Deal for Stake in BBC America:  AMC Networks Inc., the cable television programmer, is nearing a deal to acquire almost 50 percent of BBC America for about $200 million, according to people with knowledge of the matter.-BBG

o  New York's financial regulator wants some Commerzbank AG employees to be fired as part of a settlement over allegations the German lender improperly processed transactions with Iran and other countries facing U.S. sanctions, according to people familiar with the matter.

o  Top executives of Pimco and its German parent, Allianz SE, scrambled on Monday to stem the outflow of money after the stunning exit of star bond manager Bill Gross last week, but even after months of internal strife Allianz said it plans to let Pimco continue to steer its own ship.

o  State-backed Royal Bank of Scotland said on Monday it would invest more than 1 billion pounds to improve services for its commercial and corporate customers.

o   TOP STOCK AND SECTOR MOVING STORIES

o   M&A

o   AMCX AMC Networks nearing purchase of "sizable stake" in BBC America for about $200M - Variety

o   DWA SoftBank negotiations to purchase DreamWorks Animation have cooled off -- WSJ

o  EBay Announces Plan to Separate From Payments Unit PayPal

o  MOVE News Corp (NWSA) to purchase Move for $21/sh, or ~$950M

o  SYNDICATE

o  IPO

o  VBTX Veritex files amended S-1; to offer 2.7M shares between $12-14 per share in IPO

o  RADB Radius Bancorp files IPO of indterminate amount through Baird and Sandler O'Neill

o  PTXP PennTex Midstream Partners files $150M IPO through Citi, Barclays, RBC, and Tudor Pickering

o  OTHER

o  CDXC ChromaDex announces $5.0M in growth capital financing from Hercules

o  USDP USD Partners files amended S-1; to offer 8.85M shares in range of $19-21/sh through Citi, Barclays, Credit Suisse, BofA

o  FDUS Fidus Investment secondary priced at $17/share through Raymond James and Baird

o  WUBA 58.com Inc. 5M share block being shopped through Credit Suisse

o  JBLU JetBlue Airways 5M share block being shopped in the $10.40 range by Morgan Stanley

o  TSL Trina Solar files secondary ADS offering of indeterminate amount through Deutsche Bank, Barclays, and Credit Suisse

o  CPB Campbell Soup files mixed securities shelf of indeterminate amount

o   TECH/MEDIA/TELECOM  

o  EBay Announces Plan to Separate From Payments Unit PayPal

o  IDN Intellicheck Mobilisa awarded $300K contract to install Defense ID system at Fort Meade

o  AAPL China notes security concerns amid approval of iPhone 6 -- NYT Bits blog

o  Hexcel to build carbon fiber plant in Roussillon, France as part of $250M investment

o  SEAC SeaChange holder Roumell Asset Management seeks to get company to increase its share repurchases

o  CRTC excludes Google (GOOG), Netflix (NFLX) from its pending ruling on future of TV in Canada - Globe and Mail

o  FINANCIALS/REITS

o  CDXC ChromaDex announces $5.0M in growth capital financing from Hercules (

o  ICAP expects H1 revenue (10%) lower y/y on a constant currency basis; (15%) lower on a reported basis

o  FDUS Fidus Investment secondary priced at $17/share through Raymond James and Baird

o   HEALTHCARE

o  Cantor Research Highlight: SGEN (SELL): Shares of Seattle Genetics traded off over -7% after disclosing positive top-line results of AETHERA, a trial examining ADCETRIS in a consolidation setting for Hodgkin lymphoma (HL). The limited results released indicate that ADCETRIS-treated patients had a 43% reduction in the risk of progression or death, which translated into a +75% increase in progression free survival (PFS), the primary endpoint. Our price target remains $29 which is based on a sum-of-the-parts valuation using a 7x multiple on 2015 ADCETRIS revenue, or $15, plus a pipeline that we value at approximately $12 per share, and the company's cash, another $2 per share.-Mara Goldstein

o  SGEN Seattle Genetics downgraded to underperform from neutral at Bank of America Merrill Lynch

o  CDXC ChromaDex announces $5.0M in growth capital financing from Hercules

o  BLFS BioLife Solutions forms biologistex CCM joint venture with SAVSU Technologies

o  CYTR CytRx initiates Phase IIb clinical trial of Aldoxorubicin

o  CHDX Chindex completes Go-Private transaction with Healthy Harmony Holdings, L.P.

o  PFE Pfizer and Kyowa Hakko Kirin to collaborate on Immuno-Oncology combination study

o  MNKD MannKind announces receipt of $150M licensing upfront payment

o  SLXP FDA approves Salix Pharmaceuticals' sNDA for Relistor SC

o  NEO NeoGenomics appoints Robert Shovlin as COO

o  VVUS FDA approves supplemental NDA for Qsymia

o  ISR IsoRay reports FY

o  IMSC Implant Sciences reports Q4

o  TXMD TherapeuticsMD, Inc. begins phase 3 clinical trial of TX-004HR

o  LMNX Luminex receives FDA clearance to add three new targets to its xTAG Gastrointestinal Pathogen Panel

o  CPRX Catalyst Pharmaceuticals announces positive top-line phase 3 data from pivotal Firdapse clinical trial in patients with Lambert-Eaton Myasthenic Syndrome

o   ENERGY/UTILITIES

o  PTXP: PennTex Midstream Partners files $150M IPO through Citi, Barclays, RBC, and Tudor Pickering

o  SLB Schlumberger withdrawing US/EU employees from Russia - Bloomberg

o  PQ PetroQuest Energy completes sale of Eagle Ford assets for net proceeds of $9.7M

o  EEP Enbridge Energy Partners now targets Sandpiper pipeline in-service date for 2017

o  GTAT GT Advanced Technologies target decreased to $13 from $17 at UBS

o  ATHL Athlon Energy downgraded to neutral from buy at Mizuho Securities USA Inc

o  ATHL Athlon Energy downgraded to sector perform from outperform at RBC Capital

o  ATHL Athlon Energy downgraded to neutral from buy at UBS

o  CRR Carbo Ceramics downgraded to underweight from equal-weight at Morgan Stanley

o  ATHL Athlon Energy downgraded to hold from buy at Canaccord Genuity

o  RRC Range Resources initiated outperform at Imperial Capital

o  SSE Seventy Seven Energy, Inc. upgraded to buy from hold at Jefferies

o  HLX Helix subsidiary Helix Q5000 Holdings S.A.R.L. enters new $250M credit facility

o  TSL Trina Solar files secondary ADS offering of indeterminate amount through Deutsche Bank, Barclays, and Credit Suisse

o  SM SM Energy CEO Anthony Best to retire effective 31-Jan-15

o  SCOK SinoCoking Coal and Coke reports FY

o  EXXI Energy XXI reaffirms quarterly production guidance; provides operations update

o  D FERC approves Dominion to site, construct, operate Cove Point LNG liquefaction, export project

o  ZBB ZBB Energy reports Q4

o   MATERIALS/INDUSTRIALS:

o  Bank of America Merrill Lynch upgrades AA, CENX

o  PPP Primero Mining initiated buy at Bank of America Merrill Lynch

o  LYB LyondellBasell CEO, management board chairman Jim Gallogly to retire in early 2015

o  MERC Mercer International Inc. to acquire minority interest in Stendal Mill, amends Stendal Mill's credit facilities

o  LAS Lentuo International files $300M mixed shelf

o  LMT Lockheed Martin upgraded to buy from hold at Stifel Nicolaus

o   CONSUMERS/SERVICES:

o  MOVE News Corp  to purchase Move for $21/sh, or ~$950M

o  VSI Vitamin Shoppe downgraded to neutral from overweight at Piper Jaffray

o  BOOT Boot Barn files $86.3M IPO through JP Morgan, Piper Jaffray and Jefferies

o  AOI Alliance One announces plans to enter the Ugandan tobacco leaf market

o  CPB Campbell Soup files mixed securities shelf of indeterminate amount

o  SANW S&W Seed reports Q4

o   AUTOS/TRANSPORTS:

o  GM General Motors CEO Mary Barra to unveil multi-year financial strategy 1-Oct – WSJ

o  F Ford guides 2014 pre-tax profit to $6B

o  F Ford issues press release on company's 2020 vision

o  GAMING, LODGING, & LEISURE

o  Carl Icahn may put $100M in to help save Trump Entertainment - WSJ

DISCLAIMER: Prepared by staff of Cantor Fitzgerald & Co. (“Cantor”) and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient’s organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal. ***All eco data from Bloomberg and DJ]

 

 


Download File