Briefing.com

Hourly In Play (R)

Updated: 18-Jun-19 13:00 ET

 Today's In Play   
12:55  WRAPX Midday Market Summary: Wall Street buoyed by dovish expectations and U.S.-China trade optimism

U.S. stocks have rallied on news that U.S.-China trade talks are set to resume and the European Central Bank (ECB) is ready to enact additional stimulus efforts if necessary. Today's 1.1% gain the S&P 500 has it less than 1.0% shy of its record close. 

The Dow Jones Industrial Average is up 1.4%, the Nasdaq Composite is up 1.6%, and the Russell 2000 is up 1.2%. 

Today's positive disposition was forged overnight after ECB President Draghi suggested the central bank is willing to provide additional stimulus if economic conditions don't improve and inflation remains low. The news put pressure on the euro and sent Treasury yields in the region, and in the U.S., lower. The U.S. 10-yr note yield fell as much as seven basis points to 2.02%, and the 10-yr German bund yield fell as much as eight basis points to -0.32%. 

Minutes after the open, President Trump tweeted that the U.S. will talk with China before, and during, the G-20 summit. Bloomberg reported that President Xi said he is willing to meet with President Trump at G-20. The news has tamed the rally in Treasuries, but it has provided fuel for equities as the market has been waiting for progress on the U.S.-China trade front.

Currently, equities are off their highs, but six of the 11 S&P 500 sectors are still up at least 1.0%. The trade news has buoyed shares of Apple (AAPL 198.84, +4.94, +2.5%) and semiconductor companies, which are contributing to the leadership of the information technology sector (+1.8%). The Philadelphia Semiconductor Index is up 4.2%. Oil prices ($53.84, +$1.92, +3.7%) have also jumped on the trade news.

The defensive-oriented utilities (-0.3%), consumer staples (-0.3%), and real estate (-0.2%) sectors are the lone sectors in the red. 

Shares of Facebook (FB 189.14, +0.13) are up just 0.1% after being up as much as 2.9% today on the release of its white paper for its cryptocurrency. At its high today, the stock was up 18.5% over the last 11 trading sessions. 

Today's monetary and trade headlines have given the Fed new things to consider as it begins its two-day policy meeting. Expectations are high for the Fed, especially when under President Trump's critical gaze and amid rumors that the White House was considering the legal ramifications of demoting Fed Chair Powell in February. 

Reviewing today's economic lone economic data, Housing Starts and Building Permits for May:

  • Housing starts dipped 0.9% m/m in May to a seasonally adjusted annual rate of 1.269 million (Briefing.com consensus 1.240 million) from an upwardly revised 1.281 million (from 1.235 million) in April. Permits increased 0.3% m/m in May to a seasonally adjusted annual rate of 1.294 million (Briefing.com consensus 1.295 million) from an upwardly revised 1.290 million (from 1.269 million) in April.
    • The key takeaway from the report was that the number of units under construction at the end of the period held at a seasonally adjusted annual rate of 1.131 million for the third straight month. That left the second quarter average 1.5% below the first quarter average, which will be a negative input for Q2 GDP forecasts.
12:17  SCANX Small cap notable movers of interest -- G1 Therapeutics (GTHX) gains on trilaciclib results -Technical-

The following are some of today's most notable small cap movers of interest ($300 mln - $2 bln market cap), ranked by % change (all stocks over 100K average daily volume).

Small Cap Gainers

  • GTHX (26.86 +36%): Announced preliminary overall survival results from the Phase 2 trial of trilaciclib in combination with chemotherapy in women with metastatic triple-negative breast cancer; those randomized to receive the combination regimen, reported co, had a statistically significant improvement in OS compared with women receiving chemotherapy (gemcitabine/carboplatin) alone. No serious adverse events attributed to treatment with trilaciclib were noted in this trial.
  • SPWR (9.96 +20.29%): Upgraded at Goldman -- to Buy from Neutral, with its price target raised to $11 -- alongside several solar power industry peers.
  • XON (8.5 +11.84%): Announced a $100 mln exclusive licensing deal with health and wellness company Surterra Wellness; through the agreement, which is designed to advance Surterra's cannabinoid production using co's yeast fermentation platform to bring new products to market, Surterra will gain access to co's technology for microbial production of cannabinoids, and co will be entitled to cash and equity payments in exchange for providing exclusive access to its technology, including a $25 mln technology access fee and various R&D expense reimbursements, developmental milestones, and royalties in coming years. Co is on track to realize production of pure cannabinoids at a target cost of goods of < $1,000/kg. Reaches highest levels since January.

Small Cap Losers

  • GCP (22.71 -13.94%): Has concluded its strategic review process, during which it engaged with both industry players and private equity investors as co considered potential value-enhancing changes including a sale or combination; however, this process, said co's board, "did not result in a transaction that would provide adequate value to [co's] shareholders," and thus co will pursue its standalone strategic and financial plan while continuing to evaluate value opportunities as its industry evolves. Touched down to three-year lows.
  • UBX (8.43 -8.09%): Announced top-line results from its Phase 1 study of UBX0101 in patients with moderate to severe osteoarthritis of the knee; in the study, UBX0101 was safe and well-tolerated up to the maximum 4 mg dose, and improvements in several clinical measures were observed after a single dose. In Part B of the study, analysis of biomarkers across paired samples showed that in approx. half the biomarkers measured in synovial fluid modulation was observed consistent with elimination of senescent cells and potential improvement in the tissue environment. The stock improves after recording all-time lows in early trade.
  • AHT (3.21 -8.02%): Continued weakness; shares of co, which cut its dividend at the end of last week and which was downgraded to Neutral from Buy at DA Davidson yesterday, establish new multi-year lows on above average volume.
12:09  GO Grocery Outlet increases expected price range of pending IPO, now planning to offer 17.19 mln shares between $18.00-19.00 (Prior $15.00-17.00)

 
12:06  TALKX Market Briefing: Letting up some on early gas pedal

The major indices continue to hold the bulk of today's gains, but have fallen off their best levels of the session. Ostensibly, a headline suggesting the White House has considered the legal ramifications of demoting Fed Chair Powell took some wind out of the market's sails.

The latter report, however, was clarified as a conversation that took place in February. Nevertheless, the fact that it happened at all -- and that the report has been resuscitated a day before an FOMC decision -- has kicked up some uncertainty that has tempered some of the earlier buying interest.

Similarly, according to a CNBC report, NEC Director Kudlow clarified that the phone conversation between Presidents Trump and Xi today was more about scheduling an important talk and wasn't that deep. Still, market participants wanted the two leaders to meet and that appears to be happening now, so it has been construed as a positive development.

In any event, there hasn't been a rush to sell today's strength, so much as there has been a paring of big, headline-driven gains off the open.

Nine out of 11 sectors are up. The two exceptions are the defensive-oriented consumer staples (-0.5%) and utilities (-0.3%) sectors.

The Nasdaq Composite is up 1.6%; the Dow Jones Industrial Average is up 1.3%; the Russell 2000 is up 1.2%; and the S&P 500 is up 1.1%.

11:43  SCANX Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (191) outpacing new lows (14) -Technical-

Stocks that traded to 52 week highs: AAN, AAT, ABG, ABT, ACM, ADP, AEM, AFL, AHH, ALLE, AMH, AMT, ANIP, ANSS, APPF, ARES, ARWR, ATO, AVB, AXP, AY, AYX, AZO, AZUL, BOOT, BRKR, BRX, CASY, CELG, CHDN, CHTR, CINF, CNNE, COLD, COST, CP, CPT, CSGP, CSII, CUBE, CVA, CWST, CZZ, DEI, DHR, DIS, DISH, KDP, DRE, EGP, ELS, ENPH, ENSG, EQC, EQIX, EQR, ERI, ESS, EVBG, EXAS, FR, GIB, GIL, GLOB, GNRC, HCP, HLNE, HLT, HON, HR, HSIC, HXL, IDXX, IIPR, INT, INVH, IQV, KBR, KIM, KMB, KRC, LNTH, LPT, LULU, LXP, MAA, MDC, MDLZ, MMS, MRK, MSFT, MSI, NEO, NI, NOVT, NOW, NVCR, NVS, PEN, PHM, PLD, PLNT, PNM, POR, PRFT, PRO, PSB, PYPL, RACE, REG, RELX, REXR, RGA, RGEN, RNR, ROP, RUN, SAGE, SBAC, SEDG, SMG, SNAP, SPWR, SRE, STAR, STE, SUI, SWX, TFX, TMO, TPX, TREE, TRNO, TRV, UAA, UDR, VCYT, VEEV, VTR, VYGR, WELL, WK, WMT, WP, WPC, WRB, BEP, BKT, BND, BNDX, CYRX, EIM, EMB, EMD, EPRT, FNV, GLIBA, HIO, HIX, HTA, IEF, IEI, IGIB, IGSB, IOVA, IRT, ISTB, IUSB, LIN, MBB, MRTX, PDP, PID, PLAN, PTY, RQI, SHY, SLQD, SMAR, STAG, TLT, UA, USIG, VCIT, VCLT, VCSH, VER, VGIT, VGLT, VGSH, VMBS

Stocks that traded to 52 week lows: AHT, CHS, CMCM, DBI, EVH, GHL, LW, NE, RYAAY, TLRD, WFTIF, GCP, KZR, UBX

Thinly-Traded Stocks (ADV below 100k) that traded to 52 week highs on High Volume: GLPG, SLP, BFZ, BLE, HPI, NAN, NKX, NQP, PMM

Thinly-Traded Stocks (ADV below 100k) that traded to 52 week lows on High Volume: CEL, CO, MOGU

ETFs that traded to 52 week highs: AGG, BND, CSJ, EMB, GDX, GLD, IAU, ICF, IEF, IEI, IHI, IYR, KIE, LQD, MBB, PBW, PHO, RSX, SHY, TAN, TLH, TLT, URE, VNQ, XHB, XLP

ETFs that traded to 52 week lows: FXA, TBT
11:34  CCOI Cogent Communications intends to commence an offering of EUR 135 mln of senior notes due 2024 (59.63 +0.99)

 
11:21  BA Boeing: Int'l Consolidated Airlines (ICAGY) signs letter of intent with Boeing for 200 B737 aircraft to join its fleet (364.74 +9.84)

The mix of 737-8 and 737-10 aircraft would be delivered between 2023 and 2027 and would be powered by CFM Leap engines. It is anticipated that the aircraft would be used by a number of the Group's airlines including Vueling, LEVEL plus British Airways at London Gatwick airport. The list price is approximately US$117 million for the Boeing 737-8 and US$131 million for the 737-10.
10:40  SUMRX Morning Commodities: Oil 2% higher in morning trade, gold giving up gains

  • Commodities are higher (+0.7% at 78.36 as measured by the Bloomberg Commodity Index)
  • Dollar index is higher (+0.2% at 97.7390)
  • Looking at energy:
    • Jul WTI crude oil futures are now +$1.60 (+1.7%) at $53.77/barrel
    • In other energy, Jul natural gas is -$0.02 at $2.36/MMBtu
  • Moving on to metals:
    • Aug gold is currently +$3.05 at $1345.95/oz, while Jul silver is +$0.09 at $14.92/oz
    • Jul copper is now +$0.06 at $2.70/lb
10:34  WU Western Union stock not liking Libra sign (19.61 -0.45)

A lot of stocks are trading higher today, aided by rate-cut and trade deal hopes. Western Union (WU 19.61, -0.45, -2.2%) isn't one of those stocks. It is down today because of the fanfare surrounding the announcement of Libra, a new digital currency that will, among other things, reportedly make it easier for consumers to transfer money more quickly and without any fees.

That of course gets to the heart of Western Union's money transfer business, which is expected to face competitive pressure from Libra when it goes mainstream -- something that could take some time yet, but which is seen as a good likelihood given the consortium backing its launch and the open-source approach to its development. 

10:32  SUMRX Economic Summary: Building permits below expectations, while Housing Starts ahead of estimates

Economic Data Summary:

  • May Building Permits 1.269 mln vs Briefing.com consensus of 1.295 mln; April was revised to 1.281 mln from 1.269 mln
  • May Housing Starts 1.294 mln vs Briefing.com consensus of 1.240 mln; April was revised to 1.290 mln from 1.139 mln
    • The key takeaway from the report was that the number of units under construction at the end of the period held at a seasonally adjusted annual rate of 1.131 million for the third straight month. That left the second quarter average 1.5% below the first quarter average, which will be a negative input for Q2 GDP forecasts.

Upcoming Economic Data:

  • Weekly MBA Mortgage Applications due out Wednesday at 7:00 (Last Week was 26.8%)

Upcoming Fed/Treasury Events:

  • The Federal Reserve will begin a two day meeting tomorrow. The rate decision and economic projections will be Wednesday at 14:00 followed by a press conference with Fed Chair Jerome Powell at 14:30 ET

Other International Events of Interest:

  • British Chancellor of the Exchequer Philip Hammond is reportedly preparing to resign due to a disagreement over Prime Minister May's spending plans. The second round of voting for the next leader of the British Conservative party will take place today.
10:14  SMH Semiconductors (+4%) leading the market higher after President Trump confirmed he will meet with President Xi next week at the G-20 (106.21 +4.18)

  • With ample exposure to China, chip stocks some of the most sensitive to US-China trade sentiment.
  • SGH +6.53% NVDA +6.05% ICHR +5.83% AVGO +5.64% LRCX +5.32% WDC +5.29% ON +5.16% AMD +5.03% MU +5.09% OLED +4.90% SYNA +4.73% PI +4.58% CRUS +4.33% ADI +4.28% UCTT +4.27% SWKS +4.22% SMTC +4.20% IIVI +4.18% XLNX +4.18% AMAT +4.06% MKSI +3.92% SIMO +4.07% LITE +4.08% KLAC +4.01% MXL +3.88% QRVO +3.76% STM +3.72% AMKR +3.64% TXN +3.54% QCOM +3.50% MXIM +3.43%
10:13  OPTNX Early Options Activity

Taking an early look at the options market, we found the following names that may be worth watching throughout the day for further indication of investor expectations given their options volume and implied volatility movement.

Stocks seeing volatility buying (bullish call buying/bearish put buying):

Calls:

  • GOLD Jun 14 calls are seeing interest with 3290 contracts trading vs. open int of 1450, pushing implied vol up around 2 points to ~39%. Co is expected to report earnings late July.

Puts:

  • iShares Brazil ETF (EWZ) Jun 42 puts are seeing interest with 2420 contracts trading vs. open int of 1250, pushing implied vol up around 2 points to ~38%.

Stocks seeing volatility selling:

  • PSN implied vol is lower following earnings/guidance

Sentiment: The CBOE Put/Call ratio is currently: 1.00, VIX: (15.15, -0.20, -1.3%).
This week is options expiration -- Friday, June 21st is the last day to trade June equity options.
*Please use the Talk to Us link at the top of the page to provide feedback on this comment as well as the OPTNX comments.

10:00  TALKX Market Briefing: Rally running on twin catalysts

A good day, underpinned by monetary policy stimulus expectations, got even better a short time ago after President Trump tweeted that he had a "very good telephone conversation with President Xi of China." Mr. Trump added that the two leaders will have an extended meeting at the G-20 Summit and that their respective teams are beginning talks prior to the meeting.

Not surprisingly, there is a risk-on vibe in the stock market, with growth stocks powering the early advance.

Every sector is up with the exception of the utilities sector (-0.3%). The strongest gains are being seen in the information technology (+1.8%), industrials (+1.7%), communication services (+1.6%), and consumer discretionary (+1.4%) sectors. The Philadelphia Semiconductor Index is up 3.4%.

The updraft in stocks has take some steam out of the Treasury market, which boiled over early after ECB President Draghi sent the bund yield to a record-low -0.32% with an observation that the ECB could, and would, provide more stimulus if economic conditions deteriorated and threatened the ECB's inflation aim.

The 10-yr note yield, which went as low as 2.02% following Mr. Draghi's comment, is up to 2.07%.

In short, the stock market is running on the positive-sounding headline provided by President Trump and policy stimulus expectations, not worrying too much yet about the idea that the seemingly constructive trade dealings could leave the Fed in a wait-and-see mode with its monetary policy approach (which the stock market doesn't really want to see).

The Nasdaq Composite is up 1.8%; the Russell 2000 is up 1.6%; the Dow Jones Industrial Average is up 1.3%; and the S&P 500 is up 1.2%.

09:58  JBL Jabil Q3 Earnings Preview (27.23 +0.42)

Electronic manufacturing services company Jabil is slated to release Q3 earnings tonight with a conference call to follow at 4:30 p.m. ET.

  • As it stands the current Capital IQ Consensus Estimate for JBL's Q3 EPS is $0.57 (vs $0.46 a year ago) on revenue growth of 10.6% to $6.01 billion.
    • Guidance for Q3 calls for EPS of $0.47-0.67 on sales of $5.7-6.3 billion.
    • Also sees non-GAAP operating income between $150-200 million.
    • FY19 guidance stands at FCF "approaching" $400 million on $3 in core EPS and $25 billion in revenue.
  • Last quarter JBL reported slightly better than expected EPS of $0.64 per share on revenues which rose 13.3% yr/yr to $6.01 bln, but fell slightly short of expectations. The stock struggled to find direction in the sessions following the Q2 report, but along with the broader market, found traction in early April only to give up its gains in May.
  • Also recall that JBL management stated on last quarter's conference call that, in terms of fiscal 2019, the company's semi-cap equipment business was weak during the first half of the year, but JBL operated it to plan as the company anticipated this weakness at the start of the year. Jabil also believed that demand in semi-cap would begin to normalize in the June, July timeframe this year, but admitted that wasn't not going to happen. The company now plans for a more normalized recovery in early 2020.
    • What's more, Jabil now expects stronger revenue in 5G wireless and cloud this year, offset slightly by the protracted recovery in the semi-cap space, which is reflected in lower enterprise sales. While the company still expects its semi-cap business to be profitable for the year, the continued weakness has lowered its EMS margin expectations by 20 basis points to 3.3% for the fiscal year on slightly higher revenues of $15 billion.
    • Management also stated that, as the company moves through the balance of the year, it expects its inventory levels to moderate from Q2 levels.
  • JBL has recouped its 200-day SMA (26.70), a level the stock gave up amongst the late-May declines. Shares have mostly moved sideways these past few days and bump into resistance near the 27.30 area into the report.
09:46  SPY Stocks extend gap up to six-week high after President Trump says he had a good conversation with President Xi and there will be an extended meeting at the G-20 next week (292.83 +3.46)

Nasdaq 100 (QQQ) +1.9%, DJIA (DIA) +1.3%, S&P 500 (SPY) +1.2%
09:44  WRAPX Opening Market Summary: Wall Street opens higher on ECB comments, U.S.-China trade talks

U.S. stocks jump at the open following dovish comments from the ECB and President Trump saying that the U.S. will talk to China before G-20. The S&P 500 is up 0.9%, the Dow Jones Industrial Average is up 1.1%, and the Nasdaq Composite is up 1.3%.

Looking at the S&P 500 sectors shows communication services (+1.3%) and information technology (+1.4%) leading the broad-based advance. The utilities sector (+0.1%) underperforms, but it still holds a modest gain. 

U.S. Treasuries have advanced, pushing yields lower across the curve. The 2-yr yield is down four basis points to 1.81%, and the 10-yr yield is down five basis points to 2.04%. The U.S. Dollar Index is up 0.1% to 97.62. WTI crude is up 1.5% to $52.70/bbl.

09:33  SCANX Earnings/guidance movers

  • TPX +5.97% STLD +4.61% PSN +3.53% SM +2.74% EQT +1.64%
  • ANTM -0.14%
09:30  WIRES On The Wires

  • Ebix (EBIX) announced that its Board of Directors has approved the process of appointment of up to five investment bankers, with an initial public offering targeted timeline of Q2 2020 for its EbixCash operations headquartered in India. The company is in advanced stages of selection of investment bankers, towards launching the EbixCash IPO on the Indian stock exchanges. The details of the IPO in terms of the targeted money raise and the bankers who would lead this exercise will be announced in due course.
  • Embraer SA (ERJ) Defense & Security and ELTA Systems, a subsidiary of Israel Aerospace Industries, signed a Strategic Cooperation Agreement to introduce the P600 AEW (Airborne Early Warning). Designed to compete in a new segment of the AEW market, this next generation aircraft is based on the advanced super midsize platform of the Embraer Praetor 600 business jet. The primary sensor of the P600 AEW is the IAI/ELTA 4th generation Digital Active Electronically Scanned Array radar with integrated IFF capabilities.
  • MongoDB (MDB) announced new cloud services and features that will provide a better way to work with data beyond the database. The beta versions of MongoDB Atlas Data Lake and MongoDB Atlas Full-Text Search allow users to access compelling new features in a fully managed MongoDB environment with no additional infrastructure or systems to manage. Furthermore, the general availability of MongoDB Charts lets customers create charts and graphs, build and share dashboards, and embed them directly into web apps to create more engaging user experiences. MongoDB also unveiled the product vision for Realm, a company it acquired in May, and announced the latest version of its core database, MongoDB 4.2.
  • Progenics Pharm (PGNX) today announced that EXINI, a wholly owned subsidiary of Progenics, has entered into a transfer agreement with FUJIFILM Toyama Chemical Co for the rights to Progenics' Automated Bone Scan Index (aBSI) product in Japan for use under the name BONENAVI. BONENAVI has been licensed to FFTC for use in Japan since 2011. Under the terms of the agreement, FFTC will acquire, by a combination of purchase and license, the Japanese software, source code, supporting data, and all Japanese patents associated with the aBSI product from Progenics for use in Japan. In exchange, Progenics will receive an upfront payment and service fees for aBSI and other AI products over three years in Japan.
  • Nexstar (NXST) announced today that its indirect wholly-owned subsidiary, Nexstar Escrow, intends to offer up to $1,120 mln in aggregate principal amount of new senior notes due 2027 in a private offering. Nexstar Broadcasting intends to use the net proceeds from the proposed offering, together with borrowings under future secured indebtedness, to fund its proposed acquisition of Tribune Media Company.
  • Norbord (OSB) announced its intention to launch an offering of approx. $350 mln in aggregate principal amount of senior secured notes. Norbord intends to use the net proceeds from this offering to redeem for cash all of its outstanding 5.375% Senior Secured Notes due 2020.
09:11  XON Intrexon and Surterra Wellness announce exclusive global licensing agreement (shares halted) (7.60 )

  • The companies will join forces to advance Surterra's cannabinoid production utilizing Intrexon's proprietary yeast fermentation platform. The $100 mln deal, including milestones and royalties, will leverage each company's expertise to ultimately bring new cannabis products to market to meet growing, and more selective, future consumer demand, with greater supply chain security, in a more consistent, efficient, and cost effective way. This is the second strategic deal between Surterra and Intrexon in three months.
  • Under the terms of the exclusive worldwide product development and licensing collaboration, Intrexon will be entitled to cash and equity payments in exchange for exclusive access to its technology. Intrexon will receive a $25 mln technology access fee -- $10 mln in cash upfront and $15 mln in Surterra common shares (as privately valued). Additionally, Intrexon expects to receive approx. $20 mln in R&D expense reimbursement over the next five years, developmental milestones on each cannabinoid developed, and royalties on each cannabinoid commercialized.
09:11  WRAPX S&amp;P futures vs fair value: +18.10. Nasdaq futures vs fair value: +85.10.

Wall Street is set to follow Europe's lead after ECB President Mario Draghi suggested that the central bank could provide more stimulus if economic conditions don't improve and inflation remains low. The S&P 500 futures trade 18 points, or 0.6%, above fair value.

Most notably, this view has sent the 10-yr German bund yield down eight basis points to -0.32% and has fueled an interest rate differential trade that has helped send U.S. Treasury yields lower. The U.S. 10-yr note yield is down six basis points to 2.03%. The U.S. Dollar Index is up 0.1% to 97.65.

The lower yields remain a positive consideration for risk assets. As it stands in the futures trade, the S&P 500 will open less than 1.5% from its record close. 

09:01  TBPH Theravance Biopharma presents new data from Phase 2 clinical trial of ampreloxetine in patients with neurogenic orthostatic hypotension (16.70 )

New data demonstrated that the study's previously reported improvements in nOH symptom severity following four weeks of treatment were sustained until the completion of 20 weeks of ampreloxetine therapy. Following discontinuation of treatment at the end of 20 weeks, these improvements in patients' nOH symptoms deteriorated, with severity returning to baseline levels.
09:00  FB Facebook follow up: Announces plans for crypto project Libra, whose mission is to enable a simple global currency and financial infrastructure that empowers billions of people (189.01 )

Facebook (FB) is gapping up 2.2% to a six week high after announcing its blockchain initiative Libra. Libra's mission is to enable a simple global currency and financial infrastructure that empowers billions of people.

The White Paper outlines their plans for a new decentralized blockchain, a low-volatility cryptocurrency, and a smart contract platform that together aim to create a new opportunity for responsible financial services innovation.

Libra is made up of three parts that will work together to create a more inclusive financial system: 1. It is built on a secure, scalable, and reliable blockchain; 2. It is backed by a reserve of assets designed to give it intrinsic value; 3. It is governed by the independent Libra Association tasked with evolving the ecosystem.

The Libra Association is an independent, not-for-profit membership organization headquartered in Geneva, Switzerland. The association's purpose is to coordinate and provide a framework for governance for the network and reserve and lead social impact grant-making in support of financial inclusion. Target launch is in the first half of 2020.

Publicly traded founding members of the Libra Association include: MA, V, PYPL, BKNG, FB, FTCH, LYFT, UBER, MELI, SPOT, VOD

Facebook created Calibra, a regulated subsidiary, to ensure separation between social and financial data and to build and operate services on its behalf on top of the Libra network. The first product Calibra will introduce is a digital wallet for Libra, a new global currency powered by blockchain technology. The wallet will be available in Messenger, WhatsApp and as a standalone app - expected to launch in 2020.

Calibra Chief David Marcus tweet thread

Much of the details were in-line with press reports. As we laid out yesterday, this project has huge potential for Facebook. RBC is already out positive this morning.

08:55  MLND Millendo Therapeutics announces departure of Chief Medical Officer Pharis Mohideen, M.D. (12.70 )

The co announced that Pharis Mohideen, M.D., is departing the company to pursue a career opportunity closer to his home in New Jersey, allowing him to spend more time with his family. The company has initiated a search for a new CMO and is working with Dr. Mohideen on the details of his departure and transition plans for the organization. Ryan Zeidan, Ph.D., Senior Vice President of Development, will continue to lead the development activities at the company and in the interim will also oversee the medical function.
08:50  WRAPX S&amp;P futures vs fair value: +17.90. Nasdaq futures vs fair value: +80.90.

The S&P 500 futures trade 18 points, or 0.6%, above fair value.

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Hong Kong's Chief Executive Carrie Lam apologized for the handling of the extradition bill, but she added that she cannot step down or withdraw the bill. Bank of Japan Governor Haruhiko Kuroda testified before the Japanese Diet, noting that uncertainty surrounding the global economy is high and that risks are tilted to the downside. Australia's housing data continued weakening, as the Q1 House Price Index decreased 3.0% (expected -2.5%) after falling 2.4% in Q4.

  • In economic data:
    • China's May House Prices +10.7% yr/yr (last 10.7%)
    • Japan's June Reuters Tankan Index 6 (last 12)
    • Australia's Q1 House Price Index -3.0% qtr/qtr (expected -2.5%; last -2.4%)
    • New Zealand's Q2 Westpac Consumer Sentiment 103.5 (last 103.8)

---Equity Markets---

  • Japan's Nikkei: -0.7%
  • Hong Kong's Hang Seng: +1.0%
  • China's Shanghai Composite: +0.1%
  • India's Sensex: +0.2%
  • South Korea's Kospi: +0.4%
  • Australia's ASX All Ordinaries: +0.6%

Major European indices trade higher across the board. Regional equities rallied off their lows after European Central Bank President Mario Draghi spoke at the ECB's annual forum in Sintra, noting that the central bank is ready to increase its stimulus efforts if inflation measures remain low. An ECB source reportedly said that a rate cut would be the primary tool that the ECB would use. British Chancellor of the Exchequer Philip Hammond is reportedly preparing to resign due to a disagreement over Prime Minister May's spending plans. The second round of voting for the next leader of the British Conservative party will take place today.

  • In economic data:
    • Eurozone's April trade surplus EUR15.70 bln (expected EUR8.80 bln; last EUR23.20 bln). May CPI +0.1% m/m (expected 0.2%; last 0.7%); +1.2% yr/yr, as expected (last 1.7%). May Core CPI -0.1% m/m (expected 0.9%; last 0.9%); +0.8% yr/yr, as expected (last 1.3%). June ZEW Economic Sentiment -20.2 (expected -3.6; last -1.6)
    • Germany's June ZEW Economic Sentiment -21.1 (expected -5.7; last -2.1) and ZEW Current Conditions 7.8 (expected 6.0; last 8.2)

---Equity Markets---

  • STOXX Europe 600: +1.3%
  • Germany's DAX: +1.6%
  • U.K.'s FTSE 100: +1.1%
  • France's CAC 40: +1.7%
  • Italy's FTSE MIB: +2.0%
  • Spain's IBEX 35: +1.0%
08:36  WIRES On The Wires

  • United States Cellular Corporation (USM) successfully bid for high frequency spectrum in recent Federal Communications Commission (FCC) Millimeter Wave Spectrum Auctions and purchased licenses covering 98 percent of its subscribers for $256.0 million or 1.7 cents per MHz pop.
  • ANI Pharmaceuticals, Inc. (ANIP) acquired a pipeline of seven development stage generic products from Coeptis Pharmaceuticals, Inc. for $2.3 million dollars in cash and up to $12.0 million in additional development and commercial milestones. As part of the agreement, ANI will pay a portion of gross profit generated from one of the injectable products to the commercial manufacturing partner. Included in the purchase price, ANI is also acquiring raw materials (API), manufacturing and packaging components, and reference drug valued at approximately $1.5M combined. The portfolio includes three oral and four injectable products and has a combined current annual U.S. market value of $1.02 billion according to IQVIA and ANI estimates.
  • Jounce Therapeutics, Inc. (JNCE) initiated dosing in the Phase 2 EMERGE clinical trial of its lead product candidate, vopratelimab, in combination with ipilimumab in patients with non-small cell lung cancer or urothelial cancer who have progressed on or after PD-1/PD-L1 inhibitor therapies. These patient populations represent a rapidly growing area of unmet need as PD-1 inhibitors move into earlier lines of therapy, with few options and no established standard of care for patients who progress after a PD-1/PD-L1 inhibitor. Preliminary efficacy and relationship to biomarker data is expected in 2020.
  • Amazon (AMZN) has partnered with GE Capital Aviation Services to lease an additional fifteen Boeing (BA) 737-800 aircraft that will enter the air network by 2021. These fifteen aircraft will be in addition to the five Boeing 737-800's already leased from GECAS and announced earlier this year. The aircraft will fly in the United States out of the more than 20 air gateways in the Amazon Air network.
  • CACI International Inc (CACI) secured an $880 million task order to provide information technology and engineering services to the U.S. Army's Product Lead Reserve Component Automation System-Force Management System. The Information Technology Enterprise Management Systems Solution task order, made under the U.S. General Services Administration's Alliant 2 contract vehicle, represents continuing work for CACI and expansion to support the Army's vision for Global Force Information Management.
  • Embraer (ERJ) announced at the 53rd International Paris Air Show, that it has signed a contract with Binter, of Spain, for two additional E195-E2s, confirming purchase rights from the original contract, signed in 2018. The two new E195-E2s will be included in Embraer's 2019 second-quarter backlog and have a value of USD 141.8 million, based on Embraer's current list prices. The airline is celebrating 30 years of operations in 2019.
08:35  BMRN BioMarin Pharm announces publication of Phase 2 results in the New England Journal of Medicine (84.17 )

The NEJM publication described results of an ongoing open-label, Phase 2 study in children with achondroplasia, where vosoritide demonstrated a sustained increase in height and associated height Z scores for up to 42 months of treatment in children in cohort 3 receiving a continuous dose of 15 g/kg/day. Annualized growth velocity increased from baseline in all cohorts during each 12-month interval by 1.10 to 2.34 cm/year through 42 months. In cohort 3 (n=10) receiving 15 g/kg continuous dosing from baseline, the mean annualized growth velocity derived between 30 and 42 months was 5.51 cm/year representing a 1.46 cm/year (95% CI -0.15, 3.07) change from baseline. In cohort 4 (n=9) receiving 30 g/kg continuous dosing from baseline, the mean annualized growth velocity between 18 and 30 months was 5.60 cm/year representing a 1.10 cm/year (95% CI -0.27, 2.48) change from baseline.
08:32  WRAPX S&amp;P futures vs fair value: +20.40. Nasdaq futures vs fair value: +89.90.

The S&P 500 futures trade 20 points, or 0.7%, above fair value.

Housing starts increased to a seasonally adjusted annualized rate of 1.269 million units in May (Briefing.com consensus 1.240 million) from a revised 1.281 million units in April (from 1.139 million). Building permits increased to a seasonally adjusted 1.294 million in May (Briefing.com consensus 1.295 million) from a revised 1.290 million in April (from 1.269 million).

08:31  NWSA News Corp. 'is actively evaluating strategic options for its News America Marketing business' (12.24 )

The review of NAM, one of the most valued partners in the marketing services industry for brands, retailers, and technology innovators, includes exploring a potential sale. This process is being undertaken in order to allow greater focus on News Corp's primary pillars, including the creation and distribution of premium content and global digital real estate services.
08:30  ECONX May Building Permits 1294K vs 1295K Briefing.com consensus

 
08:30  ECONX May Housing Starts 1269K vs 1240K Briefing.com consensus

 
08:30  ABEO Abeona Therapeutics: FDA has granted Fast Track designation to its ABO-202 program (5.37 )

 
08:18  FLMN Falcon Minerals appoints Bryan C. Gunderson as CFO (7.54 )

Gunderson most recently served as Executive Vice President - Finance of Nine Point Energy, a private oil & gas exploration and production company, where he was responsible for corporate finance, budgeting, and financial controls.
08:16  BHVN Biohaven Pharmaceutical slumps 30% as announcement of underwritten public offering throws cold water on takeover speculation (57.36 )

  • Shares of drugmaker Biohaven are under heavy pressure this morning, currently down 30% after the company filed a mixed securities shelf and announced the commencement of an underwritten public offering of $300 mln of its common shares. The development comes after shares curiously dropped as much as 17% intra-day yesterday, while the majority of the biotech sector outperformed after Pfizer (PFE) scooped up Array Biopharma (ARRY) for $11.4 bln in cash, a 62% premium to Array's Friday close. 
  • For reference, Biohaven shares jumped 20% on April 12 when Bloomberg reported that the company was evaluating its options after fielding takeover interest. In the weeks since, Biohaven has been the subject of numerous unsubstantiated M&A pieces, and was further propped up by the company cancelling out of an investor conference and only responding to the news by affirming that it does not comment on rumors and speculation. 
  • Currently down nearly 30%, shares have quickly erased four months of gains that pushed the stock to record levels. Amid yesterday's sell-off, both Canaccord & William Blair issued mid-day notes defending shares, with Canaccord detailing that they had spoken to management and were assured there was no news to justify the selloff. In hindsight, it seems clear that the outsized move lower yesterday can only be explained by a leak of the imminent stock offering. 
  • In an SEC filing, the company disclosed that it expects the net proceeds from this offering, together with existing cash, will be used to advance and expand the development of their CGRP receptor antagonist platform, including the planned regulatory filings, including the NDA submissions for rimegepant, and to advance and expand the development of glutamate modulation platform product candidates and continue development of the co's MPO platform.
  • In March, the company announced that it concluded its pre-New Drug Application (NDA) meetings with the FDA for rimegepant Zydis ODT (orally dissolving tablet) and tablet formulations for the acute treatment of migraine. The company subsequently purchased an FDA priority review voucher to use with the NDA submission, which provides for an expedited 6-month review. Biohaven has said it expects to submit the NDA this quarter.
08:08  SUMRX Gapping up/down: MGI +141% after strategic agreement news with Ripple, SPWR +6% after upgrade at GS, TWLO +2% after Buy initiation at Needham; STLD -2% after guidance, KBH -1.5% after downgrade

Gapping up
In reaction to strong earnings/guidance
:

  • N/A.

Other news:

  • MGI +141.4% (on strategic agreement news with Ripple, a provider of enterprise blockchain solutions for global payments; Includes $30 million equity investment in MoneyGram)
  • BYND +16% (continued strength; short squeeze)
  • PHAS +12.5% (announces "positive preliminary results" from its Phase 2a clinical trial for PB2452)
  • EIGR +9.6% (receives Breakthrough Therapy Designation from FDA for avexitide for the treatment of post-bariatric hypoglycemia)
  • ARQL +2.6% (continued strength - was up 17% on the day)
  • ILMN +1.8% (wins infringement suit against Ariosa Diagnostics; intends to seek all remedies for infringement)
  • FB +1.6% (Facebook in 2020 will open a new subsidiary called Calibra; first product will be a new digital wallet for a new digital currency)
  • AZN +1.6% (AstraZeneca & Merck (MRK) announce that the European Commission has approved Lynparza as a 1st-line maintenance treatment for women with BRCA-mutated advanced ovarian cancer)
  • NVO +1.4% (confirms FDA approval of expanded indication for Victoza)
  • SNY +1.2% (Sanofi and Google (GOOG) will establish a new virtual Innovation Lab with the ambition to radically transform how future medicines and health services are delivered by tapping into the power of emerging data technologies)
  • SCPL +0.9% (10% owner Park West bought ~330K shares worth ~$4.4 mln)
  • HSY +0.9% (following CEO Michelle Buck CNBC interview)
  • MRK +0.8% (FDA approves KEYTRUDA as monotherapy for the treatment of patients with metastatic small cell lung cancer with disease progression on or after platinum-based chemotherapy and at least one other prior line of therapy)
  • GE +0.7% (General Electric Aviation Unit: IndiGo places $20 bln LEAP order)
  • SNV +0.6% (increases prior $400 mln share repurchase authorization to $725 mln)

Analyst comments:

  • SPWR +5.8% (upgraded to Buy from Neutral at Goldman)
  • RUN +4.4% (upgraded to Buy from Neutral at Goldman)
  • TDS +4.2% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
  • TWLO +2.3% (initiated with a Buy at Needham)
  • PINS +2% (initiated with Outperform rating and $33 tgt at Wedbush)
  • SEDG +1.6% (upgraded to Neutral from Sell at Goldman)

Gapping down
In reaction to disappointing earnings/guidance
:

  • STLD -2%

Other news:

  • BHVN -29.6% (files mixed securities shelf offering; commences underwritten public offering of $300 mln of common shares)
  • RMTI -26.3% (commenced an underwritten public offering of common stock)
  • UBX -12.8% (announces results from its Phase 1 study of UBX0101)
  • CALA -9.8% (commences underwritten public offering of 10 mln shares of common stock)
  • PACB -7.2% (UK's CMA finds that Illumina's (ILMN) proposed takeover of PacBio raises competition concerns in the supply of specialist DNA sequencing systems in the UK)
  • SRNE -2.5% (files for ~1.33 mln share common stock offering by selling shareholders)

Analyst comments:

  • KBH -1.5% (downgraded to Underperform from Mkt Perform at Raymond James)
  • IHG -1.4% (downgraded to Underweight from Equal Weight at Barclays)
  • ORCL -0.5% (downgraded to Neutral from Outperform at Macquarie)
  • SCHW -0.5% (downgraded to Hold from Buy at Deutsche Bank)
08:06  SCANX Gapping down

Gapping down
In reaction to disappointing earnings/guidance
:

  • STLD -2%

Other news:

  • BHVN -29.6% (files mixed securities shelf offering; commences underwritten public offering of $300 mln of common shares)
  • RMTI -26.3% (commenced an underwritten public offering of common stock)
  • UBX -12.8% (announces results from its Phase 1 study of UBX0101)
  • CALA -9.8% (commences underwritten public offering of 10 mln shares of common stock)
  • PACB -7.2% (UK's CMA finds that Illumina's (ILMN) proposed takeover of PacBio raises competition concerns in the supply of specialist DNA sequencing systems in the UK)
  • SRNE -2.5% (files for ~1.33 mln share common stock offering by selling shareholders)

Analyst comments:

  • KBH -1.5% (downgraded to Underperform from Mkt Perform at Raymond James)
  • IHG -1.4% (downgraded to Underweight from Equal Weight at Barclays)
  • ORCL -0.5% (downgraded to Neutral from Outperform at Macquarie)
  • SCHW -0.5% (downgraded to Hold from Buy at Deutsche Bank)
08:03  CBAY CymaBay Therapeutics announces FDA clearance of the Investigational New Drug Application for seladelpar to treat primary sclerosing cholangitis (6.56 )

The company intends to initiate a Phase 2 study to evaluate the safety, tolerability, and efficacy of seladelpar in patients with PSC in the third quarter.
08:03  BONDX Overnight Treasury Market Summary

Climbing Once Again

  • U.S. Treasuries are on track for a firmly higher start that will lift 10s and 30s to fresh highs for the year. Shorter tenors will also begin the cash session with gains, though they have some more distance to cover before hitting fresh 2019 highs after showing relative weakness over the past couple days. Treasury futures spent the night in a steady ascent, which accelerated after European Central Bank President Mario Draghi indicated that the ECB will provide more stimulus if the European economy remains weak. Besides boosting Treasuries, the comments have pressured Germany's 10-yr bund yield to a fresh record low at -0.32%. The U.S. Dollar Index is up 0.1% at 97.68 after finishing yesterday's session just above its 50-day moving average (97.49).
  • Yield Check:
    • 2-yr: -4 bps to 1.81%
    • 3-yr: -6 bps to 1.74%
    • 5-yr: -7 bps to 1.78%
    • 10-yr: -7 bps to 2.02%
    • 30-yr: -6 bps to 2.52%
  • News:
    • Hong Kong's Chief Executive Carrie Lam apologized for the handling of the extradition bill, but she added that she cannot step down or withdraw the bill.
    • Bank of Japan Governor Haruhiko Kuroda testified before the Japanese Diet, noting that uncertainty surrounding the global economy is high and that risks are tilted to the downside.
    • China's May House Prices increased 10.7% yr/yr (last 10.7%)
    • Japan's June Reuters Tankan Index fell to 6 from 12
    • Australia's Q1 House Price Index decreased 3.0% qtr/qtr (expected -2.5%; last -2.4%)
    • British Chancellor of the Exchequer Philip Hammond is reportedly preparing to resign due to a disagreement over Prime Minister May's spending plans. The second round of voting for the next leader of the British Conservative party will take place today.
    • Eurozone's April trade surplus totaled EUR15.70 bln (expected EUR8.80 bln; last EUR23.20 bln). May CPI increased 0.1% m/m (expected 0.2%; last 0.7%), growing 1.2% yr/yr, as expected (last 1.7%). May Core CPI decreased 0.1% m/m (expected 0.9%; last 0.9%), but was up 0.8% yr/yr, as expected (last 1.3%). June ZEW Economic Sentiment fell to -20.2 (expected -3.6) from -1.6.
    • Germany's June ZEW Economic Sentiment fell to -21.1 (expected -5.7) from -2.1 while ZEW Current Conditions decreased to 7.8 (expected 6.0) from 8.2.
  • Commodities:
    • WTI Crude: -0.1% to $51.86/bbl
    • Gold: +0.8% to $1353.00/ozt
    • Copper: +0.9% to $2.67/lb
  • Currencies:
    • EUR/USD: -0.3% to 1.1193
    • GBP/USD: -0.2% to 1.2512
    • USD/CNH: +0.1% to 6.9366
    • USD/JPY: -0.3% to 108.22
  • Data out Today:
    • 8:30 ET: May Housing Starts (Briefing.com consensus 1.240 mln; prior 1.139 mln) and Building Permits (Briefing.com consensus 1.295 mln; prior 1.269 mln)
08:03  TPX Tempur Sealy Int'l enters into two new third-party retail relationships, expands existing retailer relationship -- additional net sales from these three supply agreements are expected to be in excess of $400 mln on an annual run rate basis (69.56 )

The additional net sales from these three supply agreements are expected to be in excess of $400 million on an annual run rate basis once product launches are completed. The impact on the company's previously announced adjusted EBITDA guidance for 2019 is not expected to be material, with an initial estimate of incremental annual adjusted EBITDA benefit in the range of $75 million to $100 million beginning in 2020.

  • The company announced it has entered into a supply agreement with Mattress Firm, the largest specialty mattress retailer in North America, to reintroduce Tempur-Pedic, Stearns & Foster, and Sealy branded products into approximately 2,500 Mattress Firm stores across the United States. The reintroduction of products into Mattress Firm stores is expected to commence in the fourth quarter of 2019 and to be completed early in the first quarter of 2020.
  • The company also announced the recent expansion in its long-term supply agreement with Big Lots (BIG), a 1,400-store retailer in the United States. This agreement is expected to grow the sales of entry-level Sealy products and to drive unit volume, primarily in the below $1,000 retail price point, a segment that has been a recent focus of the company. Big Lots' growing partnership with Sealy is evidence of the investments in product quality and manufacturing reliability that Sealy has made in recent years. Sealy's launch of new products with Big Lots is expected to be complete by year end 2019.
  • Additionally, as previously announced, the company also recently extended its European retail distribution network by reaching a supply agreement with Beter Bed Holding, one of Europe's leading bedding retailers. The launch of new products with Beter Bed Holding is expected to be complete by the end of 2019, and initially will include over 100 stores.
08:02  EVBG Everbridge names David Meredith as CEO, effective July 15, 2019 (89.48 )

  • Meredith most recently served as COO at Rackspace.
  • Meredith succeeds long-time CEO Jaime Ellertson who is transitioning to the role of Executive Chairman of the Everbridge Board.
08:01  SCANX Gapping up

Gapping up
In reaction to strong earnings/guidance
:

  • N/A.

Other news:

  • MGI +141.4% (on strategic agreement news with Ripple, a provider of enterprise blockchain solutions for global payments; Includes $30 million equity investment in MoneyGram)
  • BYND +16% (continued strength; short squeeze)
  • PHAS +12.5% (announces "positive preliminary results" from its Phase 2a clinical trial for PB2452)
  • EIGR +9.6% (receives Breakthrough Therapy Designation from FDA for avexitide for the treatment of post-bariatric hypoglycemia)
  • ARQL +2.6% (continued strength - was up 17% on the day)
  • ILMN +1.8% (wins infringement suit against Ariosa Diagnostics; intends to seek all remedies for infringment)
  • FB +1.6% (Facebook in 2020 will open a new subsidiary called Calibra; first product will be a new digital wallet for a new digital currency)
  • AZN +1.6% (AstraZeneca & Merck (MRK) announce that the European Commission has approved Lynparza as a 1st-line maintenance treatment for women with BRCA-mutated advanced ovarian cancer)
  • NVO +1.4% (confirms FDA approval of expanded indication for Victoza)
  • SNY +1.2% (Sanofi and Google (GOOG) will establish a new virtual Innovation Lab with the ambition to radically transform how future medicines and health services are delivered by tapping into the power of emerging data technologies)
  • SCPL +0.9% (10% owner Park West bought ~330K shares worth ~$4.4 mln )
  • HSY +0.9% (following CEO Michelle Buck CNBC interview)
  • MRK +0.8% (FDA approves KEYTRUDA as monotherapy for the treatment of patients with metastatic small cell lung cancer with disease progression on or after platinum-based chemotherapy and at least one other prior line of therapy)
  • GE +0.7% (General Electric Aviation Unit: IndiGo places $20 bln LEAP order)
  • SNV +0.6% (increases prior $400 mln share repurchase authorization to $725 mln)

Analyst comments:

  • SPWR +5.8% (upgraded to Buy from Neutral at Goldman)
  • RUN +4.4% (upgraded to Buy from Neutral at Goldman)
  • TDS +4.2% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
  • TWLO +2.3% (initiated with a Buy at Needham)
  • PINS +2% (initiated with Outperform rating and $33 tgt at Wedbush)
  • SEDG +1.6% (upgraded to Neutral from Sell at Goldman)
08:01  MAS Masco concludes strategic review, will pursue the sale of its Cabinetry and Windows businesses (37.94 )

For 2018, the Cabinetry Products and Windows and Other Specialty Products segments on a combined basis reported $1.7 billion in net sales, $120 million in operating profit and $161 million in adjusted EBITDA (defined as operating profit plus depreciation and amortization expense of $36 million and excluding $5 million of rationalization charges), which represented 20 percent of Masco's consolidated net sales, 10 percent of consolidated operating profit, and 11 percent of consolidated adjusted EBITDA.
08:01  ALNY Alnylam Pharma: Japanese MHLW has approved ONPATTRO for the treatment of hereditary transthyretin-mediated (hATTR) amyloidosis with polyneuropathy (71.50 )

 
07:59  WRAPX S&amp;P futures vs fair value: +18.60. Nasdaq futures vs fair value: +83.50.

U.S. equity futures, and Treasuries, have advanced after ECB President Draghi suggested today that the ECB could provide more stimulus if inflation remains low. The S&P 500 futures trade 19 points, or 0.6%, above fair value.

The view has lifted European equities and has prompted weakness in the euro and a further drop in the German bund yield, which is down eight basis points to -0.32%. On a related note, President Trump accused the central bank of weakening its currency for years to make it easier to compete against the U.S. 

The drop in the bund yield is fueling an interest rate differential trade that has helped lower Treasury yields across the curve. The 10-yr note yield is currently down six basis points to 2.02%. The U.S. Dollar Index is up 0.1% to 97.68. WTI crude is down 0.1% to $51.89/bbl.

The news also comes as the Federal Reserve gets set to begin its two-day policy meeting today, and many investors are hoping the Fed takes a similar stance. 

On the data front, investors will receive Housing Starts (Briefing.com consensus 1.240 million) and Building Permits (Briefing.com consensus 1.295 million) for May at 8:30 a.m. ET.

In U.S. Corporate news:

  • Facebook (FB 191.88, +2.87): +1.5% after announcing the release of its cryptocurrency, Libra, and its corresponding digital wallet, Calibra. Facebook expects Calibra to launch in 2020.
  • Beyond Meat (BYND 198.00, +26.33): +15.5% as the public craze for plant-based meat continues to push the stock higher and squeeze short sellers. 
  • Twilio (TWLO 143.17, +1.75): +1.8% after the stock was initiated with a Buy rating at Needham with a price target of $140.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei -0.7%, Hong Kong's Hang Seng +1.0%, China's Shanghai Composite +0.1%, India's Sensex +0.2%, South Korea's Kospi +0.4%, Australia's ASX All Ordinaries +0.6%.
    • In economic data:
      • China's May House Prices +10.7% yr/yr (last 10.7%)
      • Japan's June Reuters Tankan Index 6 (last 12)
      • Australia's Q1 House Price Index -3.0% qtr/qtr (expected -2.5%; last -2.4%)
      • New Zealand's Q2 Westpac Consumer Sentiment 103.5 (last 103.8)
    • In news:
      • Hong Kong's Chief Executive Carrie Lam apologized for the handling of the extradition bill, but she added that she cannot step down or withdraw the bill.
      • Bank of Japan Governor Haruhiko Kuroda testified before the Japanese Diet, noting that uncertainty surrounding the global economy is high and that risks are tilted to the downside.
      • Australia's housing data continued weakening, as the Q1 House Price Index decreased 3.0% (expected -2.5%) after falling 2.4% in Q4.
  • Major European indices trade higher across the board. STOXX Europe 600 +1.0%, Germany's DAX +1.2%, U.K.'s FTSE 100 +0.8%, France's CAC 40 +1.4%, Italy's FTSE MIB +1.4%, Spain's IBEX 35 +0.6%.
    • In economic data:
      • Eurozone's April trade surplus EUR15.70 bln (expected EUR8.80 bln; last EUR23.20 bln). May CPI +0.1% m/m (expected 0.2%; last 0.7%); +1.2% yr/yr, as expected (last 1.7%). May Core CPI -0.1% m/m (expected 0.9%; last 0.9%); +0.8% yr/yr, as expected (last 1.3%). June ZEW Economic Sentiment -20.2 (expected -3.6; last -1.6)
      • Germany's June ZEW Economic Sentiment -21.1 (expected -5.7; last -2.1) and ZEW Current Conditions 7.8 (expected 6.0; last 8.2)
    • In news:
      • Regional equities rallied off their lows after European Central Bank President Mario Draghi spoke at the ECB's annual forum in Sintra, noting that the central bank is ready to increase its stimulus efforts if inflation measures remain low.
      • An ECB source reportedly said that a rate cut would be the primary tool that the ECB would use.
      • British Chancellor of the Exchequer Philip Hammond is reportedly preparing to resign due to a disagreement over Prime Minister May's spending plans.
      • The second round of voting for the next leader of the British Conservative party will take place today.
07:44  FUN Cedar Fair commences $500 mln private offering of senior notes (50.42 )

 
07:34  SIRI Sirius XM to offer $750 mln of Senior Notes due 2024 (5.63 )

The company intends to use the net proceeds from this offering, together with cash on hand, to redeem a portion of its 6.00% Senior Notes due 2024 at a purchase price of 103.00% of the principal amount thereof plus accrued and unpaid interest thereon to, but excluding, the redemption date.
07:33  WIRES On The Wires

  • Rocket Pharmaceuticals, Inc. (RCKT) announces that patient dosing has commenced in the open-label, Phase 1 clinical trial of RP-A501, the Company's adeno-associated viral vector (AAV)-based gene therapy for the treatment of Danon disease.
  • BeiGene, Ltd. (BGNE) and SpringWorks Therapeutics, Inc., a clinical-stage biopharmaceutical company focused on developing life-changing medicines for patients with severe rare diseases and cancer, today announced the formation of MapKure, LLC, a newly created entity that is jointly owned by BeiGene and SpringWorks. MapKure intends to develop BGB-3245, an investigational, oral, selective small molecule inhibitor of monomer and dimer forms of activating B-RAF mutations including V600 BRAF mutations, non-V600 B-RAF mutations, and RAF fusions.
  • Enlivex Therapeutics (ENLV) announced that the Australian Patent Office (IP Australia) granted a new patent (#2013353573) covering ALLOCETRATM, the company's immunotherapy product. This new patent adds intellectual property protection, including methods, uses and pharmaceutical compositions in Australia.
  • Axon (AAXN) announced that the United States District Court for the District of Kansas granted summary judgment in favor of Axon Enterprise, Inc. (Case No. 16-2032-CM) finding that Axon's Signal technology does not infringe Digital Ally's (DGLY) U.S. Patent No. 9,253,452. The court entered judgment for Axon and dismissed the case in its entirety. "The Court's ruling ends a three-and-a-half-year legal dispute in which Digital Ally repeatedly attempted to try its case in the press," Axon General Counsel Isaiah Fields said. "We chose to try our case in the court and prevailed."
  • Embraer (ERJ) announced, at the 53rd International Paris Air Show, that over the next 20 years forecasts a steady market demand for 10,550 new aircraft with up to 150 seats worldwide, worth USD 600 billion. Market growth will drive 55% of total demand and the remaining 45% will be delivered to replace ageing aircraft.
07:30  SUMRX European Markets Update: DAX +1.2%, FTSE +0.8%, CAC +1.4%

Major European indices trade higher across the board. Regional equities rallied off their lows after European Central Bank President Mario Draghi spoke at the ECB's annual forum in Sintra, noting that the central bank is ready to increase its stimulus efforts if inflation measures remain low. An ECB source reportedly said that a rate cut would be the primary tool that the ECB would use. British Chancellor of the Exchequer Philip Hammond is reportedly preparing to resign due to a disagreement over Prime Minister May's spending plans. The second round of voting for the next leader of the British Conservative party will take place today.

  • In economic data:
    • Eurozone's April trade surplus EUR15.70 bln (expected EUR8.80 bln; last EUR23.20 bln). May CPI +0.1% m/m (expected 0.2%; last 0.7%); +1.2% yr/yr, as expected (last 1.7%). May Core CPI -0.1% m/m (expected 0.9%; last 0.9%); +0.8% yr/yr, as expected (last 1.3%). June ZEW Economic Sentiment -20.2 (expected -3.6; last -1.6)
    • Germany's June ZEW Economic Sentiment -21.1 (expected -5.7; last -2.1) and ZEW Current Conditions 7.8 (expected 6.0; last 8.2)

---Equity Markets---

  • STOXX Europe 600: +1.0%
  • Germany's DAX: +1.2%
  • U.K.'s FTSE 100: +0.8%
  • France's CAC 40: +1.4%
  • Italy's FTSE MIB: +1.4%
  • Spain's IBEX 35: +0.6%

---FX---

  • EUR/USD: -0.2% to 1.1194
  • GBP/USD: -0.1% to 1.2527
  • USD/CHF: +0.1% to 0.9995
07:25  S&P futures vs fair value: +23.10. Nasdaq futures vs fair value: +70.30.

07:01  UBX Unity Biotechnology announces results from its Phase 1 study of UBX0101 in patients with moderate to severe osteoarthritis (OA) of the knee (9.17 )

  • "Osteoarthritis of the knee impacts a significant portion of the population as we age," said Jamie Dananberg, chief medical officer of UNITY. "The observed changes in this early setting were greater than what are generally considered to be clinically meaningful. We look forward to continuing to explore the utility of UBX0101 in this important disease setting."
  • UNITY plans to present additional data at an upcoming scientific meeting.
07:00  MOS Mosaic announced that it will close its idled Plant City phosphates manufacturing facility in Hillsborough County, Florida (23.28 )

 
07:00  SUMRX Asian Markets Close: Nikkei -0.7%, Hang Seng +1.0%, Shanghai +0.1%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Hong Kong's Chief Executive Carrie Lam apologized for the handling of the extradition bill, but she added that she cannot step down or withdraw the bill. Bank of Japan Governor Haruhiko Kuroda testified before the Japanese Diet, noting that uncertainty surrounding the global economy is high and that risks are tilted to the downside. Australia's housing data continued weakening, as the Q1 House Price Index decreased 3.0% (expected -2.5%) after falling 2.4% in Q4.

  • In economic data:
    • China's May House Prices +10.7% yr/yr (last 10.7%)
    • Japan's June Reuters Tankan Index 6 (last 12)
    • Australia's Q1 House Price Index -3.0% qtr/qtr (expected -2.5%; last -2.4%)
    • New Zealand's Q2 Westpac Consumer Sentiment 103.5 (last 103.8)

---Equity Markets---

  • Japan's Nikkei: -0.7%
  • Hong Kong's Hang Seng: +1.0%
  • China's Shanghai Composite: +0.1%
  • India's Sensex: +0.2%
  • South Korea's Kospi: +0.4%
  • Australia's ASX All Ordinaries: +0.6%

---FX---

  • USD/JPY: -0.2% to 108.32
  • USD/CNH: +0.1% to 6.9361
  • USD/INR: -0.3% to 69.63
06:59  WIRES On The Wires

  • Roche (RHHBY) announced that Japan's Ministry of Health, Labour and Welfare (MHLW) has approved Rozlytrek (entrectinib) for the treatment of adult and paediatric patients with neurotrophic tyrosine receptor kinase (NTRK) fusion-positive, advanced recurrent solid tumours.
  • Rolls-Royce (RYCEY) has entered into an agreement to acquire the electric and hybrid-electric aerospace propulsion activities of Siemens (SIEGY) in a move that will accelerate the delivery of the co's electrification strategy and boost their ambition to play a major role in the 'third era' of aviation. The acquisition is expected to complete late 2019, following a period of employee consultation.
  • Avianca Holdings S.A. and Avianca S.A. (AVH) announce that, in board meetings held today, Anko van der Werff was appointed as Executive President and CEO of Avianca Holdings S.A. and as President of Aerovas del Continente Americano S.A. Avianca. Anko van der Werff's last position was in the Aeromexico Group, where he served as Executive Commercial Vice President for the last five years.
  • Endeavour Silver Corp. (EXK) announces that it has received the final tailings permit for the Terronera silver-gold mine project located in Jalisco state, Mexico.
  • Lannett Company, Inc. (LCI) announced that it has commenced marketing Aspirin and Extended-Release Dipyridamole Capsules, 25 mg/200 mg, the therapeutic equivalent to the reference listed drug, Aggrenox Capsules, 25 mg/200 mg, of Boehringer Ingelheim Pharmaceuticals, Inc. Total U.S. sales of Aspirin and Extended-Release Dipyridamole Capsules, 25 mg/200 mg, was approximately $158 million for the 12 months ended April 2019, according to IQVIA, although actual generic market values are expected to be lower.
06:56  FXI Shanghai... +0.09%

 
06:56  S&P futures vs fair value: +15.90. Nasdaq futures vs fair value: +75.40.

06:56  European Markets

FTSE...7411.36...+54.10...+0.70%.  DAX...12222.16...+136.30...+1.10%.
06:56  Asian Markets

Nikkei...20973...-151.30...-0.70%.  Hang Seng...27499...+271.60...+1.00%.
06:49  SCANX Early premarket gappers

Gapping up:

  • MGI +152.4%, PHAS +16.5%, BYND +11.2%, EIGR +9.6%, ARQL +7.5%, FB +2.3%, GE +1.5%, AZN +1.2%, NVO +1%, SCPL +0.9%, PINS +0.9%, SNY +0.8%, SNV +0.5%

Gapping down:

  • RMTI -27.2%, BHVN -25%, CALA -10.3%, PACB -5.1%, SRNE -2.5%, STLD -2%
06:46  MRK Merck: FDA approves KEYTRUDA as monotherapy for the treatment of patients with metastatic small cell lung cancer with disease progression on or after platinum-based chemotherapy and at least one other prior line of therapy (83.30 )

 
06:38  PSN Parsons beats by $0.31, beats on revs (31.32 )

  • Reports Q1 (Mar) earnings of $0.57 per share, excluding non-recurring items, $0.31 better than the S&P Capital IQ Consensus of $0.26; revenues rose 19.8% year/year to $904.4 mln vs the $884.08 mln S&P Capital IQ Consensus.
  • Total backlog: First quarter 2019: $8.6 bln, 35% increase over the first quarter of 2018. Adjusted EBITDA for the first quarter of 2019 was $68 mln, a 43% increase over the prior year period.
06:37  SM SM Energy raises Q2, FY19 production guidance (10.96 )

The co announces that second quarter 2019 production is exceeding expectations and the Company is raising guidance for second quarter and full year production volumes by 0.4 MMBoe, at the mid-point, due to better than expected well performance and completion timing. Second quarter and full year production is expected to be approximately 43-44% oil.

  • The Company also announces strong 30-day peak IP rates on two wells testing new intervals, the Dean and the Wolfcamp D in the RockStar area of the Permian Basin, which produced approximately 1,550 Boe/d and 1,400 Boe/d, respectively. In addition, at the previously reported Watson State Austin Chalk test in South Texas, the well reached a 30-day peak IP rate of nearly 3,200 Boe/d (three-stream). These intervals have the potential to add significantly to the Company's inventory in the Midland Basin and South Texas, respectively.
06:34  ALXN Alexion Pharma: Ultomiris receives marketing authorization from Japan's Ministry of Health, Labour and Welfare for the Treatment of Adults with Paroxysmal Nocturnal Hemoglobinuria (120.14 )

Co announced that Japan's Ministry of Health, Labour and Welfare has approved Ultomiris, the first and only long-acting C5 complement inhibitor administered every eight weeks, for the treatment of adult patients with paroxysmal nocturnal hemoglobinuria.
06:32  NRZ New Residential Investment signs asset purchase agreement with Ditech Holding Corporation (15.58 )

  • Under the terms of the APA, subject to certain conditions, New Residential has agreed to purchase, among other assets, Ditech Financial's forward Fannie Mae, Ginnie Mae and non-agency mortgage servicing rights, with an aggregate unpaid principal balance of approximately $63 bln as of March 31, 2019, the servicer advance receivables relating to such MSRs and other net assets core to the forward origination and servicing businesses.
  • Additionally, New Residential has agreed to assume certain Ditech office spaces and plans to make employment offers to a number of Ditech employees. Under the APA, New Residential will not purchase any of the stock or assets related to Ditech Financial's reverse mortgage business.
06:31  GCP GCP Applied Tech. concludes strategic review process, says process did not result in a transaction that would provide adequate value to shareholders (26.39 )

"Over the course of this review process, the company contacted and engaged with both strategic industry players and private equity investors. However, this process did not result in a transaction that would provide adequate value to our shareholders. Accordingly, the Board has determined that the best opportunity to enhance shareholder value is to pursue the company's standalone strategic and financial plan. The Board, however, will continue to evaluate opportunities to drive value for GCP shareholders as our industry continues to evolve."
06:14  GE General Electric Aviation Unit: IndiGo places $20 bln LEAP order (10.05 )

  • IndiGo announced that it has ordered CFM International LEAP-1A engines to power 280 Airbus A320neo and A321neo aircraft. The contract, which includes spare engines and an overhaul support agreement, is valued at more than $20 billion U.S. at list price.
  • Also, S7 Airlines and GE announced the signing of a seven-year TrueChoiceTM Flight Hour service agreement to cover the airline's fleet of CF34-8E engines that power its 17 Embraer E170 aircraft. The TrueChoice Flight Hour agreement covers the maintenance, repair and overhaul of the engines and is valued at more than $85 million over the life of the agreement.
06:07  VALE Vale S.A. suspended its nickel processing activities at the Ona Puma plant, in the State of Para (12.87 )

 
06:06  PACB Pacific Biosciences: UK's CMA finds that Illumina's (ILMN) proposed takeover of PacBio raises competition concerns in the supply of specialist DNA sequencing systems in the UK (6.68 )

CMA Release
06:06  EQT EQT Corp.: Rice Team delivers comprehensive investor presentation to EQT shareholders; says EQT's preliminary 2Q 2019 results show EQT is failing to generate free cash flow; urges shareholders to vote the white universal proxy card (15.85 )

Presentation stated "Among other things, the presentation provides support for the following key points in the upcoming election: EQT is a perennial underperformer and has failed to realize the synergies from the Rice Energy merger Negative 48% TSR since the Rice Energy merger (1) and 10-year low stock price Highest costs of any producer in the Appalachian Basin (as determined by industry analysts and EQT's own banker) EQT has abandoned virtually all of its claimed $10 billion of potential Rice merger synergies"
06:02  CBT Cabot prices offering of $300 mln of 4.00% senior unsecured notes due 2029 (45.80 )

 
06:02  GTHX G1 Therapeutics announces preliminary overall survival results from randomized Phase 2 trial Trilaciclib in combination with chemotherapy -- showed statistically significant improvement in overall survival in women with metastatic triple-negative breast cancer (19.75 )

The co announced preliminary overall survival (OS) results from a randomized Phase 2 trial which demonstrated that women with metastatic triple-negative breast cancer (mTNBC) lived significantly longer when receiving trilaciclib and chemotherapy compared with women receiving chemotherapy alone. Detailed data from this trial will be presented at a medical meeting later this year.

  • Updated anti-tumor efficacy results demonstrated that women receiving trilaciclib and a chemotherapy regimen of gemcitabine/carboplatin had a statistically significant improvement in OS compared with those receiving gemcitabine/carboplatin alone.
06:01  AXNX Axonics Modulation announces FDA approves use of full-body MRI for pivotal study patients (35.93 )

  • The approval was a result of a supplement filed by Axonics with the FDA under the Investigational Device Exemption regarding the Company's ARTISAN-SNM 129-patient pivotal clinical study.
  • The FDA concluded that Axonics provided sufficient data to support full-body MRIs.
06:00  AZN AstraZeneca &amp; Merck (MRK) announce that the European Commission has approved Lynparza as a 1st-line maintenance treatment for women with BRCA-mutated advanced ovarian cancer (39.98 )

This is the third indication for Lynparza in the EU. AstraZeneca and MSD are exploring additional trials in ovarian cancer, including the ongoing Phase III PAOLA-1 trial, which is testing Lynparza in combination with bevacizumab as a 1st-line maintenance treatment for women with newly-diagnosed, advanced, stage IIIB-IV high grade serous or endometrioid ovarian cancer, regardless of BRCA status.
06:00  AJG Arthur J. Gallagher acquires Hawthorn, Victoria-based P2 Group; terms not disclosed (86.29 )

Founded in 2003, P2 Group helps employers proactively manage occupational health and reduce the risk of worker injuries and WorkCover claims.
06:00  VWAGY Volkswagen AG to group more than 5,000 digital experts together in 'Car.Software' unit by 2025 (16.20 )

  • Co to boost in-house share of car software development from the current figure of less than 10 percent to at least 60 percent by 2025.
  • The objective is to orient the unit towards the requirements of innovative software development. For this purpose, Volkswagen will be contributing flexible working models, the latest collaboration technologies and agile types of cooperation. This year, about 500 experts are to work together in this agile software unit. The figure is already due to rise to about 2,000 by 2020.
06:00  WIRES On The Wires

  • Triumph Group (TGI) and Air France Industries KLM Engineering & Maintenance announced that they intend to create an aftermarket strategic partnership to give airlines and MRO customers global coverage for maintenance, repair and overhaul (MRO) services in the aftermarket.
  • Air Lease Corporation (AL) announced long-term lease placements with Sky Airline (Chile) for three new Airbus A321-200neo aircraft. The co further announced long-term lease placements for two new Airbus A320neo and two new Airbus A321neo LR aircraft with Peach Aviation.
  • Sanofi (SNY) and Google (GOOG) will establish a new virtual Innovation Lab with the ambition to radically transform how future medicines and health services are delivered by tapping into the power of emerging data technologies. The collaboration aims to change how Sanofi develops new treatments and will focus on three key objectives: to better understand patients and diseases, to increase Sanofi's operational efficiency, and to improve the experience of Sanofi's patients and customers.
  • A shareholder of Global Cord Blood Corporation (CO) has hired The Seiden Group, a law firm headquartered in New York, as shareholder counsel to communicate minority shareholder interests to the Independent Directors and help effect necessary changes for the benefit of the Company and its shareholders, including minority shareholders in the United States. The Seiden Group issued a letter today to the Independent Directors of Global Cord on behalf of the shareholder making certain requests relating to a potential merger with a Singaporean company and explaining why the deal would harm investors.
  • Establishment Labs Holdings Inc. (ESTA) announced it has entered into an amendment to its existing credit agreement with affiliates of Madryn Asset Management, LP, effective June 17, 2019. The amended terms of the Credit Agreement, which was originally entered into on August 24, 2017, provides Establishment Labs with up to $25 million in new borrowing capacity from Madryn to increase the company's financial flexibility.
06:00  WIRES On The Wires

  • Boeing (BA), Korean Air and Air Lease Corporation (AL) announced at the Paris Air Show the airline plans to add 30 new 787 Dreamliner airplanes to its fleet, with a commitment to purchase 10 new 787-10s and 10 additional 787-9 airplanes valued at $6.3 billion at current list prices. As part of this agreement, Korean Air will also lease 10 787-10s from ALC. Separately, Air Lease announced long-term lease placements for six new Airbus A330-900neo aircraft with Virgin Atlantic Airways.
  • Farfetch Limited (FTCH) announced that it has joined as a Founding Member of the Libra Association and will work closely with other Founding Member organizations in the lead-up to the public launch of the initiative in the first half of 2020.
  • Raytheon Company (RTN) and Northrop Grumman Corporation (NOC) have signed a teaming agreement to develop, produce and integrate Northrop Grumman's scramjet combustors to power Raytheon's air-breathing hypersonic weapons. The teaming agreement uses the combined capabilities of both companies to accelerate development and demonstrate readiness to produce the next generation of tactical missile systems.
  • The Volvo Group (VLVLY) has signed an agreement with NVIDIA (NVDA) to jointly develop the decision making system of autonomous commercial vehicles and machines. Utilizing NVIDIA's end-to-end artificial intelligence platform for training, simulation and in-vehicle computing, the resulting system is designed to safely handle fully autonomous driving on public roads and highways.
  • Collins Aerospace, a unit of United Technologies (UTX), announced it has recently been awarded more than $1.5 billion in tailored agreements for components spanning its Power & Controls and Aerostructures business units-across multiple commercial platforms with global commercial customers. Collins also announced that it has been awarded a contract by the NATO Support and Procurement Agency to support NP2000 propeller upgrades for 24 Lockheed Martin C-130H aircraft for the U.S. Air National Guard.
06:00  CTSH Cognizant Tech to acquire Zenith Technologies; terms not disclosed (62.56 )

Zenith Technologies is a privately-held life sciences manufacturing technology services company headquartered in Cork, Ireland. Zenith Technologies specializes in implementing digital technologies to manage, control and optimize drug and medical device production for maximum operational efficiency and regulatory compliance.
06:00  SUMRX Overnight Summary -- World markets recover from an early dip after dovish Draghi dialect

  • The global equity markets are off to mixed start this morning with the US and Asia trading higher, while Asia finished in the red. The strength in Europe stemmed from comments from ECB President Mario Draghi who had some dovish comments at the ECB Forum. S&P Futures are trading about 8-points higher, around the 2904 zone, not far off of the overnight high of 2908.00. The session low was put in place early on at 2889.00.
  • In Asia, Both Japan and China finished the day down 0.7%. The weakness in Asia seemed to due to traders taking a cautious stance ahead of several central bank updates that loom this week. The Nikkei hit nearly a 2-week low with modest strength in the yen. Softbank was among the biggest losers, dropping over 3% in the day. 
  • European bourses began the day in negative territory but Mario Draghi's comments saved the day after the ECB President suggested there is the central bank still has room to cut rates and there is still a runway of opportunity for stimulus measures. This was all the markets needed to hear to put in a recovery. Banks are among the weakest groups, however with the threat of lower interest rates. Lenders such as Soc Gen and Credit Ag are down 1%, thus far.

Market Updates 

  • S&P Futures vs Fair Value: +9.0
  • 10 yr Note: 2.05%
  • USD/JPY: 108.34  -0.19
  • EUR/USD: 1.1186  -0.0032
  • Europe: FTSE  +0.5%  DAX  +0.8%  CAC +1.1%
  • Asia: Hang Seng  +1.0%  Shanghai -0.7% Nikkei -0.7%
  • Gold (1348.10 +5.20) Silver (14.87 +0.04) Crude (51.92 -0.01)
 Monday After the Close   
18:05  T AT&amp;T details new spectrum licenses following the close of FCC Auction 102 (32.30 -0.05)

  • The company won 24 GHz spectrum in 383 Partial Economic Areas (PEAs) for a nationwide average of 254 MHz. All of the licenses won were in the more valuable upper 500 MHz portion of the 24 GHz band. AT&T will use the spectrum to bolster its mobile 5G strategy. The company spent about $980 million in the auction.
  • This purchase of high-quality spectrum does not change AT&T's 2019 guidance for free cash flow, net asset monetization or debt leverage ratio. The company continues to expect $6-$8 billion in proceeds from asset monetization, net of spectrum purchases and other asset acquisitions. After reaching the 2.5x range for net-debt-to-adjusted-EBITDA, the company will also look at using a portion of its free cash flow after dividends to evaluate share buybacks and retire shares it issued in conjunction with the Time Warner acquisition.
18:01  BHVN Biohaven Pharmaceutical commences underwritten public offering of $300 mln of common shares (57.36 -5.62)

 
17:42  NVO Novo Nordisk A/S confirms FDA approval of expanded indication for Victoza (liraglutide) injection to lower blood sugar along with diet and exercise in children and adolescents aged 10-17 years with type 2 diabetes (51.01 +0.05)

 
17:17  RCKT Rocket Pharmaceuticals files for $350 mln mixed securities shelf offering (16.93 +0.80)

 
17:01  STLD Steel Dynamics sees Q2 EPS of $0.86-0.90 vs $0.94 S&amp;P Capital IQ Consensus (26.23 -0.20)

  • Q2 earnings from steel operations is expected to decrease in comparison to sequential first quarter results. Although average product pricing declined across the steel platform, the reduced earnings were primarily related to lower profitability from long product steel operations, as shipments and metal spread declined in the quarter. Underlying domestic steel demand remains intact although steel buying hesitancy and inventory destocking has resulted from a weakening scrap price environment. Q2 profitability for the company's metals recycling platform is expected to decrease when compared to sequential first quarter results, principally based on reduced ferrous metal spread as average pricing declined through the quarter. Q2 earnings from steel fabrication business are expected to improve from sequential first quarter results, due to both higher shipments and metal spread expansion, as demand remains strong and steel input costs decline.
  • The order backlog is stronger than it was at this time last year, and customers remain optimistic concerning non-residential construction projects entering the summer construction season, although the unusually wet weather across the United States has caused some construction project delays.
16:52  CWEN Clearway Energy entered into binding equity commitment agreements in previously announced partnership with Clearway Group; expects to fully close the transaction by the end of 2019 (16.30 +0.19)

These agreements commit the Company to invest an estimated $111 million in net corporate capital, subject to closing adjustments. The transaction is expected to contribute incremental asset CAFD on an average annual basis of ~$12 million beginning in 2020, which reflects the improved operational profile of the projects and the impact from the new non-recourse capital structure employed at the partnership.
16:41  ANTM Anthem to reaffirm FY19 guidance during investor meetings - expects adj EPS of greater than $19.20 vs $19.30 consensus (287.45 +2.13)

 
16:41  HCHC HC2's energy portfolio company American Natural Gas acquires natural gas fuel provider ampCNG for $41 mln (2.52 +0.10)

The acquisition of ampCNG's 20 natural gas fueling stations, located primarily in the Southeastern U.S. and Texas, expands ANG's network reach to over 60 stations, making it one of the largest owners and operators of compressed natural gas stations in the country. ANG expects to achieve certain synergies through the acquisition. ANG is funding the acquisition through a combination of cash and the issuance of debt and preferred shares at the portfolio company level.
16:36  MGI Moneygram +50% on strategic agreement news with Ripple, a provider of enterprise blockchain solutions for global payments; Includes $30 million equity investment in MoneyGram (1.45 -0.04)

  • Through this partnership, which will have an initial term of two years, Ripple will become MoneyGram's key partner for cross-border settlement using digital assets.
  • As part of this partnership, Ripple has made an initial investment of $30 million in MoneyGram equity, made up of common stock and a warrant to purchase common stock. Ripple purchased the newly-issued common stock (including the shares underlying the warrant) from MoneyGram at $4.10 per share, which represents a significant premium to MoneyGram's current market price. In addition, at MoneyGram's election, Ripple may fund additional purchases of common stock or warrants up to $20 million at a minimum price of $4.10 per share.
16:33  VNTR Venator Materials responds to Tronox (TROX) allegations (4.92 -0.18)

In Venator's lawsuit, which arises from Tronox's refusal to honor its contract to pay a $75 million "Break Fee" to Venator upon conditions which have now been met, Venator seeks, among other relief, a judgment for $75 million. Tronox today filed an answer to Venator's lawsuit and has included counterclaims suggesting Venator is liable for not concluding negotiations that Tronox prematurely terminated while Venator was continuing to seek FTC approval for its proposed acquisition of Ashtabula. "Tronox has been a disappointing counterparty, failing to honor its commitment to Venator and now inventing counterclaims the evidence will show are detached from the actual facts. We look forward to our day in court."
16:33  CAAP Corporacin Amrica Airports reports preliminary May 2019 passenger traffic growth of +3.3% yr/yr (7.96 +0.24)

Total passenger traffic in May 2019 increased 3.3% yr/yr, primarily reflecting growth of 11.9% in Argentina and 11.8% in Armenia, further supported by growth across most other countries of operations, partially offset by declines in Brazil and Uruguay.
16:31  SNV Synovus increases prior $400 mln share repurchase authorization to $725 mln (32.70 -0.31)

The company has previously repurchased approx. $325 mln of its common stock under the share repurchase program, leaving approx. $400 mln of additional availability during 2019.
16:30  SRNE Sorrento Therapeutics files for ~1.33 mln share common stock offering by selling shareholders (3.64 +0.49)

 
16:20  BHVN Biohaven Pharmaceutical files mixed securities shelf offering (57.36 -5.62)

 
16:19  WRAPX Closing Stock Market Summary

The stock market increased modestly on Monday, finding support in the technology stocks while market participants eyed a key policy decision from the Federal Reserve later this week. The S&P 500 eked out a gain of 0.1%, finishing near its session lows. 

The Dow Jones Industrial Average increased 0.1%, the Nasdaq Composite increased 0.6%, and the Russell 2000 increased 0.7%. 

The Federal Open Market Committee will release its rate decision at the conclusion of its two-day policy meeting on Wednesday. While no rate cut is expected, expectations are high for the Fed to signal it is willing to lower rates sooner rather than later. 

These high hopes lifted the S&P 500, Dow, and Nasdaq to monthly gains of at least 5.0%, including Monday's advance. With decent gains already registered ahead of the meeting, and still no progress on the U.S.-China trade front, investors showed little conviction in buying the broader market.

The S&P 500 sectors finished mixed. The S&P 500 communication services sector (+1.1%) outperformed on the back of Facebook (FB 189.01, +7.68, +4.2%) and Netflix (NFLX 350.62, +10.89, +3.2%). The real estate (+1.1%) and energy (+0.9%) sectors also outperformed, while the financials (-0.9%) and materials (-0.9%) sectors dragged on the broader market. 

Facebook continued to outperform ahead of the release of its cryptocurrency white paper tomorrow. Many analysts have speculated that its cryptocurrency project will provide new growth opportunities. Netflix benefited from comments out of Piper Jaffray, which expects the company to provide solid Q2 results next month. 

In M&A news, Array Biopharma (ARRY 46.44, +16.85, +56.9%) and Sotheby's (BID 56.13, +20.74, +58.6%) agreed to be acquired for hefty premiums of over 60%. Array Biopharma will be acquired by Pfizer (PFE 42.88, +0.12, +0.3%) for approximately $11.4 billion, or $48 per share, in cash. Sotheby's will be acquired by private investor Patrick Drahi for $3.7 billion, or $57 per share, in cash.

U.S. Treasuries finished little changed. The 2-yr yield increased one basis point to 1.85%, and the 10-yr yield decreased one basis point to 2.09%. The U.S. Dollar Index was unchanged at 97.57. WTI crude fell 1.5% to $51.76/bbl. 

Reviewing Monday's economic data, which included the Empire State Manufacturing Survey for June and the NAHB Housing Market Index for June:

  • The Empire State Manufacturing Survey for June fell to -8.6 from the prior month's reading of 17.8. The 26 point drop was the largest monthly decline on record, sending it comfortably below 0.0, which is the dividing line between expansion and contraction for this report.
  • The NAHB Housing Market Index for June came in at 64 (Briefing.com consensus 66), down from 66 from May.

Looking ahead, investors will receive Housing Start and Building Permits for May on Tuesday.

  • Nasdaq Composite +18.2% YTD
  • S&P 500 +15.3% YTD
  • Russell 2000 +13.7% YTD
  • Dow Jones Industrial Average +11.9% YTD
16:17  LCI Lannett approved restructuring plan of subsidiary Cody Laboratories (5.30 +0.08)

The Company has been unable to sell the Cody API business as an ongoing operation and now intends to sell the equipment and real estate utilized by the Cody API business and to have Cody Labs cease all operations. In connection with the Cody API Restructuring Plan, there will be a reduction of all remaining 70 positions at Cody Labs. The Company expects that the actions contemplated under the Cody API Restructuring Plan will be substantially completed by September 30, 2019. The Company currently estimates that it will incur approximately $5.0 million of total costs to implement the Cody API Restructuring Plan.
16:17  EIGR Eiger BioPharmaceuticals receives Breakthrough Therapy Designation from FDA for avexitide for the treatment of post-bariatric hypoglycemia (10.49 +0.36)

Avexitide is a targeted, first-in-class, GLP-1 antagonist in development for the treatment of post-bariatric hypoglycemia (PBH), for which there is no approved treatment. PBH is a chronic condition occurring in post-bariatric surgical patients leading to dangerously low, postprandial blood glucose levels. Severe PBH episodes can result in altered mental status, loss of consciousness, seizures, and coma. Due to increasing morbid obesity, the number of bariatric surgeries are increasing, leading to an increased number of patients suffering from PBH.
16:17  EQT EQT Corp. sees Q2 sales volume at high end of range, FCF better than guidance; sees cap-ex savings and additional FCF under target 10% initiative (15.85 +0.04)

In the second quarter, EQT continued to drive operational efficiencies, building on the Company's progress in the prior two quarters. Through May 31, 2019, EQT achieved the following operational results:

  • Continued improvements in drilling days / 1,000 feet, which decreased 8% compared to the first quarter 2019.
  • Additional efficiencies in frac stages / crew, with a 20% efficiency gain compared to the first quarter 2019.
  • Continued advancements in frac plug drill-out days, with a 14% increase in plugs drilled per day compared to the first quarter 2019.
  • During the second quarter, the Drilling Team will surpass 3,000,000 feet drilled 100% remotely through the Company's proprietary real-time operations center. EQT was one of the first U.S. land based operators to drill 100% remotely, demonstrating the Company's innovative and technology-driven vision and approach to industry changing development.

Using fewer resources to deliver the Company's targeted 2019 activity levels, EQT expects ~$25 million of additional annual capital expenditure savings under the Target 10% Initiative. With the recently identified incremental savings, EQT's new management has identified $175 million in annual cost savings to date and now expects adjusted free cash flow(1) of over $3.0 billion through 2023, increasing to $3.4 billion if Target 10% is fully realized. Based on the Company's performance to date, EQT also expects the following financial results for the second quarter 2019:

  • Sales volumes at the high end of the Company's guidance of 355-375 Bcfe;
  • Capital expenditures in line with expectations; and
  • Adjusted free cash flow improvement of $25 million over the previously provided guidance, excluding the impact of litigation reserves and proxy-related costs.
16:08  CGBD TCG BDC, Inc. declares special dividend of $0.08/share (15.10 -0.03)

The dividend will be payable on July 17, 2019 to stockholders of record as of June 28, 2019.
16:06  ILMN Illumina wins infringement suit against Ariosa Diagnostics; intends to seek all remedies for infringment (351.11 +7.11)

Co announces that the High Court of Justice, Chancery Division, Patents Court in the United Kingdom issued a judgment in its favor in the patent infringement suit filed against Ariosa Diagnostics, Inc.

The Court found that Ariosa's Harmony non-invasive prenatal test infringed EP 1 524 321 and that the patent claims were valid. The patent is directed to the size selection of extracellular DNA in maternal plasma samples. Size selection boosts the fetal fraction, leading to fewer test samples being rejected for low fetal fraction.

ILMN intends to seek all available remedies for the infringement, including damages, injunctive relief, and attorney fees. 
16:04  PHAS PhaseBio Pharmaceuticals announces "positive preliminary results" from its Phase 2a clinical trial for PB2452 (12.27 +0.65)

Co announces preliminary data from its Phase 2a clinical trial of PB2452, which is the first trial of PB2452 to include older (ages 50-64) and elderly (ages 65-80) subjects on dual antiplatelet therapy of ticagrelor and low-dose aspirin.

Subjects in the trial resemble the patient population most likely to be treated with ticagrelor and potentially benefit from PB2452, if approved.

In the trial, statistically significant reversal of ticagrelor was achieved within 5 minutes of initiation of PB2452 infusion and sustained for over 20 hours. Platelet function was normalized by 15 minutes following initiation of PB2452 infusion and remained normal for over 20 hours. To date, PB2452 has been generally well tolerated in the Phase 2a trial, with only minor adverse events reported.

These new data are consistent with results from PhaseBio's previously published Phase 1 trial conducted in healthy younger volunteers treated with ticagrelor alone and not aspirin. Efficacy of PB2452 in the Phase 2a trial is measured using the same three assays that were utilized in the Phase 1 trial, with results from all three assays showing a high degree of correlation in both trials.
16:03  CALA Calithera Biosciences commences underwritten public offering of 10 mln shares of common stock (5.80 +0.59)

 
16:02  RMTI Rockwell Medical commenced an underwritten public offering of common stock (4.41 +0.23)

Rockwell Medical anticipates using the net proceeds from the offering for the commercialization of Dialysate Triferic and I.V. Triferic, research and development and general corporate purposes.

Copyright © Briefing.com. All rights reserved.