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October 26, 2014 3:38 AM EDT
Updated: Oct 24, 2014 7:45 AM EDT  

Cantor Morning News®



Today's Stories From Cantor Fitzgerald

 Dogukan Aksoy  (212) 610-2348

        Nick Cernero (212) 610-3629

        Friday October  24th,  2014



o   US equity futures trade below fair value and below earlier reported levels amidst mixed to lower session in Europe and mixed close in Asia. The relative underperformance in Nasdaq futures results from the reaction to Amazon's (AMZN) Q3 earnings. AMZN is trading (11%) to $278.66, pre-market. Global sentiment is overshadowed by renewed Ebola scare in US. The focus will remain on corporate updates with bellwether earnings from Ford (F), Procter & Gamble (PG) and UPS (UPS) before the open. The macro calendar is light today with Sep New Home Sales due at 10:00 ET.

o   FX:The GBP currency was a tad firmer as Q3 advance GDP came in line with expectation. The GBP/USD moved 40 pips higher towards 1.6070 area in the aftermath of the data release and poised to snap a 3-day losing streak. The USD/JPY pair was back above the 108 level aided by reports that BOJ saw a much bigger possibility of inflation slipping below 1%, pushed down by falling crude oil prices then opening the door for more potential QE Russia's RUB currency (Ruble) continues to test record lows against USD and Euro; concerns that S&P might cut its sovereign rating to 'junk status'

o   GOLD: Gold traded near the lowest price in a week as investors weighed signs the U.S. economy is improving against the outlook for a delay to raising borrowing costs.

o  CRUDE: West Texas Intermediate retreated from the biggest gain since September amid speculation a drop in Saudi Arabian oil supplies isn’t a signal that OPEC’s largest producer has decided to cut production. Brent slid as well.

o   TREASURIES: Treasuries rose the most in a week after a doctor in New York City tested positive for Ebola, spurring demand for the haven assets amid concern further spreading of the virus will weigh on the global economy.

o  European Markets:

o   Equity markets open lower amid cautious outlook from BASF and Ebola concerns in New York City. Banking sector in focus as ECB stress test results due to be published on Sunday Oct 26th. UK prelim. Q3 GDP was bang in line with expectations, +0.7% q/q and +3.0% y/y. Market participants assessed more earnings this morning, with chemical and retail names underperforming. In general, decliners lead advancers 15-4 led by oil & gas

o  Asian Markets:

o  The Nikkei closed up +1.0% Friday. A weaker yen overnight was broadly cited as supporting equities as the $-¥ traded around 108 throughout the day today. There also continued to be focus on the earnings calendar as well as yesterday's JGB auction as yields fell in to negative territory. The Nikkei closed up +5.2% this week in volatile trade, but is still down (5.5%) to date in October. China released another troubling report on the housing sector, with property prices rising y/y in just 10 out of 70 cities vs 48 in the prior month. In China there continued to be talk on further policy easing measures by authorities. Sentiment surrounding China's real estate sector also appeared to have begun to change as reports noted that the bottom of the slump in property prices may be nearing. Korea's Q3 GDP numbers were broadly shrugged off by markets, as the KOSPI was weighed down by an earnings miss by index heavyweight Posco. Indian markets remained closed for the Diwali Balipratipada public holiday, and will reopen Monday.


o  New York doctor returning from Guinea tested positive for Ebola: The NYT reports that a doctor in New York city may become the New York's first diagnosed case. A further test will be conducted to confirm the initial test.-NYT

o  Fed’s $4 Trillion Holdings Keep Boosting Growth Beyond End of QE:As the Federal Reserve prepares to end its third round of bond buying next week, the central bank plans to hang on to the record $4.48 trillion balance sheet it has accumulated since announcing the first round of purchases in November 2008.-BBG

o  Alibaba hankers for a 37 percent stake in Lionsgate: The Chinese Internet tycoon — who is set to make the rounds of movie studios to scoop up content — is hungering after Mark Rachesky’s 37.4 percent of Lionsgate, the studio behind the blockbuster film franchise, The Post has learned.-NYP

o  European policy makers at odds over how to revive Eurozone economy:The  WSJ said, in an article that did not break any ground, that the standoff among the ECB, Germanyand other governments is holding back Europe's recovery. It said that tensions having sharpened as economic data deteriorated and threatens to prevent an adequate policy response. It cited Marcel Fratzscher, head of the German Institute for Economic Research, who said that a grand bargain is needed in which governments understand that monetary policy can only be successful when accompanied by structural reformsand fiscal policy.-WSJ

o  ECB defends bond-buying plan at top EU court:The  FT reported that the ECB defended its bond-buying programme, telling the European Court of Justice that it was essential in preventing the break-up of the single currency and therefore within its mandate.-FT

o  Spain Fin Min de Guindos: stated that still work needed to be done regarding bring down unemployment in Spain; hoped Europe will not enter new recession, sees 'light' recovery in early 2015-TTN

o  Germany's Merkel says Germany will not soften its strict budget stance:  Reuters cited comments by German Chancellor Merkel, who said that Berlin will not ditch its plans for a balanced budget next year. She said Germany's stance is important and if it strays from the path then that gives ground for others to do the same.-Reuters

o  Germany cuts its economic forecasts: The  FT noted that Berlin cuts its growth forecast for this year and next year. It said that just six months ago forecasts were fairly rosy at 1.8% for 2014 and 2% for 2015, which are now seen at 1.2% and 1.3%, respectively. It cited German Economy Minister Sigmar Gabriel, who said a dip in growth is not a cataclysm and fundamental conditions in the domestic economy are very good as before.-FT

o  Fitch places France's rating on negative watch:  Fitch Ratings placed France AA+ rating on negative watch. It said it will seek to resolve the negative rating at its next scheduled review of France to be published on 12-Dec. It highlighted that the outlook for the French economy had deteriorated, which impaired the prospects for fiscal consolidation and stabilizing the public debt ratio.-Fitch Ratings

o  Greek bond yields back above 7%: The  FT reported that Greece's long-term borrowing costs jumped above 7% on Tuesday for the first time in months amid concerns over political stability. It noted that Athens is pressing for a clean exit from its international bailout deal in Dec when the EU portion of the plan ends, even though the IMF component of the scheme runs until 2016.-FT

o  Moody says Italy's reform efforts offset credit impact of return to recession:  Moody's said that Italy's accelerated reform efforts, together with low funding costs and a primary surplus, mitigate the impact of the economy's return to recession.-Moody

o  Global fund flows helping support Japanese inflation:  Nikkei reported that Japanese prices are likely to feel more upward pressure from global flows of money. The article discussed a number of factors, including US Fed liftoff expectations as well as global property prices which are likely to increase inflationary pressure in Japan.-Nikkei

o  Weak yen weighing on Chinese operations:  WSJ discussed how the yen's weakness relative to the yuan has become a headwind for Japanese companies operating in China. The article noted that it is particularly affecting companies who pay wages and operating costs in yuan and receive revenue in yen.-WSJ

o  BoJ concerns over CPI under 1% increasing:  WSJ cited people familiar with the central bank's thinking who said that BoJ officials are growing more concerned that CPI could slip below 1%. Recall governor Haruhiko Kuroda called for some stability in inflation, but forecast that CPI would not fall below 1%.-WSJ


o   M&A

o   LGF Alibaba looking at buyinh 37.4% stake in Lions Gate-NY Post

o  http://nypost.com/2014/10/24/alibaba-hankers-for-a-37-percent-stake-in-lionsgate/

o  AMCX AMC Networks and BBC Worldwide announce new creative partnership; AMCX to invest $200M in BBC America

o  RP Property software group RealPage approached by buyers – FT


o  IPO

o   Airbnb said to discuss employee stock sale valuing company at~ $13B --WSJ


o   CHRS Coherus Biosciences files amended S-1; to offer 6.3M shares in range of $12-15/share through JPMorgan and Credit Suisse

o   HTCH Hutchinson closes $37.5M convertible debt offering, private exchange

o   DRYS DryShips announces secondary offering of indeterminate amount through RS Platou Markets and Pareto Securities


o   LGF Alibaba looking at buying 37.4% stake in Lions Gate - NY Post 

o   INFA Informatica downgraded to underperform from neutral at Bank of America Merrill Lynch

o   EGOV NIC Inc downgraded to market perform from strong buy at Raymond James

o   XOXO XO Group to cease operations at its warehouse in Redding, CA; expects pre-tax costs

o   NCR NCR Corp upgraded to neutral from sell at Goldman Sachs

o   MXIM Maxim Integrated upgraded to buy from hold at Deutsche Bank

o   DRIV Digital River to be acquired by investor group led by Siris Capital for $26.00/share cash

o   MSFT Microsoft provides Q2

o   IRF International Rectifier downgraded to hold from buy at Drexel Hamilton

o   SYNA Synaptics guides Q2

o   N NetSuite increases FY

o   INFA Informatica guides Q4

o   HTCH Hutchinson closes $37.5M convertible debt offering, private exchange

o   KLAC KLA-Tencor reports Q1

o   VRSN VeriSign guides FY14 revenue

o   TESS TESSCO Technologies reports Q2

o   PLXS Plexus Corp upgraded to outperform from market perform at Raymond James

o   PRCP Perceptron guides Q1

o   LOGM StreetAccount Metrics Recap - LogMeIn Q3 Earnings

o   AEHR Aehr Test Systems receives follow-on order for ABTS test and burn in system


o   NDAQ Nasdaq OMX Group reports Q3

o   MLV & Co upgrades EDR; downgrades ACC

o   EMCI EMC Insurance Group guides Q3

o   NPBC National Penn Bancshares reports Q3

o   PCBK Pacific Continental downgraded to market perform from outperform at Keefe, Bruyette & Woods

o   OFC Corporate Office Properties reports Q3

o   FNFG First Niagara reports Q3

o   MITT AG Mortgage Investment Trust downgraded to market perform from market outperform at JMP Securities

o   BK Bank of New York Mellon receives Chinese regulatory approval to sell its 49% stake in JV with Western Securities - Reuters

o   BSRR Sierra Bancorp CEO James Holly to retire effective 31-Mar

o   HFWA Heritage Financial Corp reports Q3

o   CPMK Capmark Financial reports Q3

o   HOMB Home Bancshares completes acquisition of Broward Financial; previously announced 30-Jul

o   OCFC OceanFirst Financial reports Q3

o   MOFG MidWestOne Financial reports Q3

o   WRE Washington REIT reports Q3

o   UHT Universal Health Realty Income Trust reports Q3

o   HBHC Hancock Holding reports Q3 


o   VSTM Verastem presents new data on Mesothelioma programs

o   SCAI Surgical Care Affiliates initiated hold at Jefferies

o   MNOV MediciNova announces CDC support of clinical trial in ALS with MN-166

o   MDVN Medivation Inc. licenses clinical stage anti-PD-1 immune modulatory monoclonal antibody from CureTech Ltd.

o   KND Kindred Healthcare closed operations of long-term acute care hospital in Pennsylvania

o   CLVS Clovis Oncology announces enrollment of first patient in Lucitanib phase 2 study in squamous Non-small cell lung cancer

o   NPSP PDUFA action date for Natpara BLA extended three months to 24-Jan-15

o   WX WuXi PharmaTech issues press release regarding previously reported orphan designation for ibalizumab

o   GMED Globus Medical acquires Transplant Technologies of Texas

o   LJPC La Jolla Pharmaceutical issues press release regarding ASN abstract on diabetic CKD

o   IG IGI Laboratories reports Q3

o   GEVA Synageva BioPharma presents sebelipase alfa data at the NASPGHAN meeting

o   VTAE Vitae Pharmaceuticals reports positive results from ph 1 trials of BACE inhibitor BI1181181/VTP-37948 in Alzheimer's

o   FPRX Five Prime Therapeutics expands respiratory disease collaboration with GlaxoSmithKline

o   UPI Uroplasty reports Q2

o   CUR Neuralstem presents first data in study of neural cells in Alzheimer's at Congress of Neurological Surgeons

o   RMD ResMed reports Q1

o   PFE Pfizer authorizes new $11B buyback 


o   FET Forum Energy Technologies reports Q3

o   BAS Basic Energy Services reports Q3

o   NGLS Targa Resources Partners increases quarterly distribution by 2.2%

o   TRGP Targa Resources Corp increases quarterly dividend by 6.2%

o   HMLP Höegh LNG Partners declares prorated Q3

o   WFT Weatherford International Plc discloses agreement to sell its shares in Proserv Group; terms not disclosed

o   SMLP Summit Midstream Partners declares quarterly distribution of $0.54

o   SWN Southwestern Energy reports Q3

o   TLLP Tesoro Logistics increases quarterly distribution by 4.5%

o   ROYT Pacific Coast Oil Trust announces November cash distribution of $0.08808 per unit

o   REGI Renewable Energy Group completes upgrades to its 30M gallon biorefinery in Mason City, Iowa,

o   USAC USA Compression increases quarterly distribution by 1.0%

o   AMID American Midstream Partners, LP increases quarterly distribution by 2.2%

o   HEP Holly Energy Partners increases quarterly dividend by 1.5%

o   RRMS Rose Rock Midstream increases quarterly distribution by 7.5%

o   CLNE Clean Energy Fuels reports Q3


o   LYB LyondellBasell Industries NV reports Q3

o   RS Reliance Steel upgraded to buy from hold at Jefferies

o   CCF Chase Corporation reports Q4

o   NEU NewMarket Corporation CFO David Fiorenza to be succeeded, effective 1-Jan

o   MTX Minerals Technologies reports Q3

o   SSD Simpson Manufacturing reports Q3

o   NEU NewMarket increases quarterly dividend by 27.3%

o   SXT Sensient reports Q3

o   AA Alcoa confirms plans to sell Mt. Holly smelter for $67.5M

o   CE Celanese increases share repurchase authorization to $500M

o   POL PolyOne reports Q3

o   CENX Century Aluminum to acquire full ownership of Mt. Holly smelter for $67.5M

o   WIRE Encore Wire reports Q3 

o   GIFI Gulf Island Fabrication reports Q3

o   LMT Lockheed Martin has reached $4B agreement with Pentagon for more F35s -- Reuters

o   VMI Valmont reports Q3

o   LAYN Layne Christensen guides Q3

o   FLS Flowserve guides FY

o   FLS Flowserve reports Q3

o   CBI Chicago Bridge reports Q3 


o  LGF Alibaba looking at buying 37.4% stake in Lions Gate - NY Post 

·        http://nypost.com/2014/10/24/alibaba-hankers-for-a-37-percent-stake-in-lionsgate/         

o   Barclays initiates MFRM, TPX

o   STRT Strattec Security reports Q1

o   GPRO GoPro initiated underperform at Oppenheimer

o   ELY Callaway Golf reports Q3

o   STS Supreme Industries reports Q3

o   DECK Deckers Outdoor reports Q2 

o   SENEA Seneca Foods Corporation reports Q2

o   JBSS John Sanfilippo & Son reports Q1 

o   Goldman Sachs downgrades AEO, ANF

o   EDU New Oriental Education & Technology reports Q1

o   CTCM CTC Media downgraded to hold from buy at Danske Bank


o   UACL Universal Truckload Services reports Q3

o   HUBG Hub Group reports Q3

o   SWFT Swift Transportation reports Q3

o   DRYS DryShips announces secondary offering of indeterminate amount through RS Platou Markets and Pareto Securities

o   FWRD Forward Air reports Q3

o   MMLP Martin Midstream Partners increases quarterly dividend by 2.5%

o   ECHO Echo Global Logistics reports Q3 


o   WYN Wyndham Worldwide reports Q3

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