Hourly In Play (R)

Updated: 19-Sep-18 07:00 ET

 Today's In Play   
06:55  S&P futures vs fair value: +0.80. Nasdaq futures vs fair value: +0.80.

06:55  European Markets

FTSE...7301.96...+1.70...+0.00%.  DAX...12186.27...+28.60...+0.20%.
06:55  Asian Markets

Nikkei...23672.5...+252.00...+1.10%.  Hang Seng...27407...+322.70...+1.20%.
06:54  FXI Shanghai... +1.14%

06:54  WIRES On The Wires

  • WABCO Holdings Inc. (WBC) announced that it has signed a Memorandum of Understanding with Nidec Motor to define, develop, manufacture and commercialize fully integrated electric drivetrain and brake control solutions for longitudinal control of commercial vehicles. Additionally, the company signed a Memorandum of Understanding with Baidu (BIDU) to collaborate on developing a best-in-class, cost-effective and highly standardized suite of solutions for Level 4 Autonomous Driving in hub-to-hub highway applications for commercial vehicles.
  • Astronics Corporation (ATRO) announced that its wholly owned subsidiary, Astronics AeroSat, recently received the Civil Aviation Administration of China Validation of Supplemental Type Certification (VSTC) of its satellite communications connectivity system.
  • Zymeworks Inc. (ZYME) announced it has named Anthony Polverino, Ph.D., Executive Vice President of Early Development and Chief Scientific Officer. In his new role, Dr. Polverino will be instrumental in setting and driving Zymeworks' R&D strategy. From 2016 until 2018, Dr. Polverino was at Kite Pharma, Inc., which was acquired by Gilead Sciences, Inc. in 2017.
  • AutoNation, Inc. (AN) announced that Mike Jackson, Chairman, CEO and President, has extended his contract with the Company as Executive Chairman. The Company also announced that the Board of Directors has retained the executive search and leadership advisory firm, Spencer Stuart, to support the CEO succession process, which will consider both internal and external candidates. Mr. Jackson will continue to lead the Company in his current role as Chairman, CEO and President during the succession process.
  • Endeavour Silver Corp. (EXK) reports that infill drilling within the Terronera vein system on the Terronera property in Jalisco State, Mexico (view Terronera map here) has intersected high grade silver-gold mineralization in an additional 17 drill holes.
06:12  WIRES On The Wires

  • Celanese (CE) announced it will raise prices of all acetate tow product grades sold in Eastern Europe and Asia by $1.00/kg. This price increase will be effective for orders shipped on or after November 1, 2018, or as contracts otherwise allow.
  • R.R. Donnelley & Sons (RRD) announced that it has commenced cash tender offers to purchase up to $350,000,000 aggregate principal amount of its outstanding 7.625% Senior Notes due 2020, 7.875% Senior Notes due 2021, 8.875% Debentures due 2021 and 7.000% Senior Notes due 2022
06:05  KL Kirkland Lake Gold acquires 14,705,882 common shares of Osisko Mining for CAD1.70 per share, worth CAD25 mln (17.57 )

06:04  MSFT Microsoft increases quarterly dividend to $0.46/share from $0.42/share (113.21 )

06:02  JLL Jones Lang LaSalle CFO Christie Kelly resigns to pursue other opportunities (144.01 )

Chief Administrative Officer Trish Maxson will expand her remit to become interim CFO until a permanent successor is in place. The changes take immediate effect, with Kelly staying on with JLL until year-end to ensure a smooth transition.
06:02  NNN National Retail Properties prices offering of $400 mln of 4.300% senior unsecured notes due 2028 and $300 mln of 4.800% senior unsecured notes due 2048 (45.20 )

06:02  ARGX argenx prices 3,475,000 American Depositary Shares at a price to the public of $86.50 per ADS (87.30 )

06:01  GTHX G1 Therapeutics prices underwritten public offering of 3 mln shares of its common stock at a public offering price of $60.00 per share (62.94 )

06:00  WIRES On The Wires

  • Kirkland Lake Gold Ltd. (KL) announced new high-grade results from the ongoing underground drilling programs at the Fosterville Mine in Victoria, Australia. Underground drilling continues to target down-plunge extensions of Swan Mineral Reserves with results providing confirmation of the geological model and continuity of high-grade, visible-gold bearing mineralization on the Swan structure. Results from 19 new drill holes, totaling 6,482 m, outside of the December 31, 2017 Measured and Indicated Mineral Resources in the Swan Zone continue to return intervals of exceptionally high grades with visible gold. The drilling demonstrates that high-grade, visible-gold bearing quartz veins extend at least 200 m down-plunge from current Mineral Reserves.
  • Alibaba Group Holding Ltd. (BABA) and SAP SE (SAP) announced plans to offer SAP S/4HANA Cloud and SAP Cloud Platform on Alibaba Cloud's infrastructure as a service in China to help customers transition to the cloud and build intelligent enterprises.
  • WABCO Holdings Inc. (WBC) has signed a strategic agreement with RIO, the groundbreaking digital brand of global commercial vehicle manufacturer, the TRATON GROUP. Under the agreement, RIO will leverage WABCO's advanced Fleet Management Solutions within its fast-growing cloud-based connectivity environment to support the European logistics industry. Additionally, the company announced that it has signed a Memorandum of Understanding with Valeo to supply WABCO with advanced short and mid-range sensors, including 77GHz radar and solid-state LiDAR, to develop and industrialize the next generation of Advanced Driver Assistance Systems, among the key building blocks for vehicle autonomy.
  • Russian online service has raised additional funds in a new investment round, which drew in $17 million. The lead investor of the round, PJSC MTS (MBT), Russia's largest telecoms operator and digital services provider, accounted for $12 million of this investment.
  • GE Transportation (GE) announced at InnoTrans 2018 that Indian Railways has confirmed its acceptance of GE's 4,500-horsepower diesel-electric Evolution Series prototype locomotive. This critical milestone was achieved following the successful completion of rigorous testing on Indian Railways' tracks following the locomotive handover in February 2018.
  • Collectors Universe, Inc. (CLCT) announced the termination of David G. Hall's employment as the Company's President and Chief Operating Officer, effective as of the close of business on September 18, 2018. Joseph J. Orlando, the Company's Chief Executive Officer, will assume Mr. Hall's duties.
 Tuesday After the Close   
17:05  SRLP Sprague Resources announced that Gary Rinaldi will be retiring as COO/CFO of its General Partner - will assist with the transition until Dec 31 (26.65 -0.15)

  • Sprague also announced that Mr. David Long will replace Mr. Rinaldi as Chief Financial Officer of its General Partner. Mr. Long will join Sprague on December 3, 2018 and will assume the role of Chief Financial Officer on January 1, 2019. The General Partner does not intend to appoint a successor Chief Operating Officer; President and CEO David Glendon will assume the responsibilities of the COO role. Mr. Long is currently Senior Vice President with Kinetico, a subsidiary of its Sponsor, Axel Johnson.
17:02  ARES Ares Management and Starwood Energy to sell 660 MW electric transmission line to Argo Infrastructure Partners; Financial details were not disclosed (22.30 +0.70)

  • Ares EIF, the power and infrastructure strategy at Ares Management, L.P. and Starwood Energy Group Global signed an agreement to sell their respective interests in Hudson Transmission Partners, LLC ("HTP") to an investment vehicle managed by Argo Infrastructure Partners, LLC. The transaction is subject to customary regulatory approvals and is expected to close later in 2018 or in early 2019.
16:33  JPM JPMorgan Chase officially declared quarterly dividend of $0.80 per share vs prior $0.56 per share (in-line with June 28 plan) (114.30 +0.46)

16:32  CLXT Calyxt appoints Jim Blome to CEO role (16.00 +0.11)

Calyxt and Cellectis S.A. (CLLS) announce the appointment of James Blome, former President and CEO of Bayer CropScience LP (North America), as Chief Executive Officer of Calyxt, effective October 1, 2018.
16:32  JT Jianpu Technology appoints Yu Zou as its Chief Scientist (4.34 0.00)

Before joining Jianpu, Mr. Zou served as a senior director of Research and Development (R&D) at Inc. (JD).
16:32  ROSE Rosehill Resources announces recent production increase to over 20,000 net BOE per day; co continues to demonstrate and expect strong production growth in 2018 and beyond (8.35 +0.22)

  • Co announces that its net daily production exceeded 20,000 barrels of oil equivalent ("BOE") in early September. This production level was achieved based on strong performance from wells recently placed online on the Weber lease in Loving County, Texas along with contributions from Lea County, New Mexico and the co's Southern Delaware operating area.
  • Rosehill continues to demonstrate and expect strong production growth in 2018 and beyond from the co's prolific acreage in the Delaware Basin.
16:31  JNJ Johnson & Johnson's Janssen submits New Drug Application to U.S. FDA seeking approval of erdafitinib for the treatment of metastatic urothelial cancer (140.54 +0.58)

The NDA submission is based on data from the BLC2001 (NCT02365597) Phase 2 clinical trial, which evaluated the efficacy and safety of erdafitinib in the treatment of adult patients with locally advanced or metastatic UC, whose tumors have certain FGFR alterations.
16:31  SMRT Stein Mart announces five-year extended and amended $275 million credit agreements (1.97 -0.10)

  • Co announced that it has extended and amended its existing revolving credit agreement with Wells Fargo Bank (Wells Fargo) and its term loan agreement with Gordon Brothers Finance Company (GBF). These agreements are coordinated through an intercreditor agreement and provide for combined borrowing availability of $275 million.
16:30  SON Sonoco's Hartsville paper operations temporarily shut following Hurricane Florence flooding; expects to provide an estimate of the impact on the business and financial results later this month (58.12 +0.19)

Sonoco is working to offset the negative impacts by leveraging inventory and production from the rest of its global mill network and supplier relationships. Sonoco carries property and business interruption insurance, subject to a $1 million self-insured retention, but the extent of the resulting claim and ultimate recovery is currently unknown.
16:24  WRAPX Closing Market Summary: Unlikely Rebound Leaves Stocks Flat for the Week

Stocks rallied on Tuesday as investors shrugged off a fresh exchange of tariffs between the world's two largest economies. The S&P 500 climbed 0.5%, reclaiming its Monday decline, while the Dow Jones Industrial Average and the Nasdaq Composite advanced 0.7% and 0.8%, respectively. The major averages opened higher and climbed into the afternoon, finishing a step below their best marks of the day.

President Trump announced after Monday's close that the U.S. will be slapping tariffs on $200 billion worth of Chinese goods starting on September 24. The tariff rate will start at 10%, but will increase to 25% on January 1. Mr. Trump also said he will impose additional tariffs on $267 billion worth of Chinese goods if Beijing retaliates -- which it vowed to do with 5-10% tariffs on $60 billion worth of U.S. goods.

Like Wall Street, Asian stocks also managed to rally despite the seemingly negative headlines, with China's Shanghai Composite adding 1.8%.

In an attempt to explain Tuesday's gains, some analysts pointed to the fact that the initial 10% tariff rate by the U.S. was not as harsh as expected -- thereby reflecting a willingness to negotiate -- while others said the rally reflects the market's belief that the U.S.-China trade dispute will eventually die down. Regardless, it's worth noting that short-covering activity was likely a helping hand for the bulls.

The consumer discretionary (+1.3%) and information technology (+0.6%) sectors outperformed on Tuesday after leading Monday's retreat. The trade-sensitive industrial sector (+0.9%) was also strong, as was the energy space (+0.7%), which benefited from a rise in the price of crude oil; WTI crude futures jumped 1.5% to $69.87/bbl.

Oil rallied amid speculation that OPEC won't be raising production in the short term to offset any lost supply from Iran, which will soon be facing U.S. oil sanctions. Also of note, Bloomberg reported on Tuesday that Saudi Arabia is comfortable with Brent above $80 a barrel.

On the corporate front, Oracle (ORCL 49.03, -0.15, -0.3%), FedEx (FDX 241.58, -14.15, -5.5%), General Mills (GIS 44.13, -3.64, -7.6%), and AutoZone (AZO 732.76, -14.76, -2.0%) fell after reporting earnings. Separately, Tesla (TSLA 284.96, -9.88) lost 3.7% on news that it's under investigation by the Justice Department over CEO Elon Musk's August 7 tweet about taking the company private.

In the bond market, U.S. Treasuries tumbled on Tuesday, sending yields higher across the curve, with the benchmark 10-yr yield jumping five basis points to 3.05% -- which marks its highest level in four months. The Fed-sensitive 2-yr yield ticked up one basis point to 2.79%, hitting its highest level in over a decade.

Reviewing Tuesday's economic data, which was limited to the NAHB Housing Market Index for September:

  • The NAHB Housing Market Index for September came in at 67 ( consensus 66), unchanged from the August reading.

On Wednesday, investors will receive the weekly MBA Mortgage Applications Index, August Housing Starts and Building Permits, and the Q2 Current Account Balance.

  • Nasdaq Composite +15.3% YTD
  • Russell 2000 +11.4% YTD
  • S&P 500 +8.6% YTD
  • Dow Jones Industrial Average +6.2% YTD
16:22  EMR Emerson reports three-month order data with Aug 0-5% (78.41 +0.64)

  • August 2018 Orders Comments: Emerson trailing three-month orders +2%. Underlying orders +7%, excluding unfavorable currency translation of 5%, and remained in the 5 to 10% range communicated at annual Investor Conference in February. Automation Solutions orders +1% with underlying orders up 8% excluding unfavorable currency translation of 7%. Systems underlying orders growth continued in the high-single digits, reflecting strong demand for small and mid-sized projects. Maintenance and repair underlying orders growth also remained in the high-single digits, reflecting steady demand in the U.S. and China. Commercial & Residential Solutions orders +3% with underlying orders up 4% excluding unfavorable currency translation of 1%. Strong demand in North American air conditioning and refrigeration markets was offset by slower demand across Asia and the Middle East.
16:18  SJT San Juan Basin Royalty closed near lows (-9%) after declaring no cash distribution for September and CapEx in excess of plan (4.76 -0.45)

Excess production costs for this reporting month are due to a significant increase in capital expenditures for well recompletions, with the majority occurring in the San Juan 29-5 unit. Progress in Transition Reporting: Hilcorp has advised the Trust that for the reporting month of July 2018, oil production was actualized while gas revenues were accrued based on actual production volumes, including an estimate of $169,000 for non-operated revenue.
16:07  EVOP EVO Payments announced proposed underwritten offering of 6,022,225 shares of common stock by company and selling stockholders (26.24 -0.43)

  • The offering includes 6.0 mln shares of Class A common stock offered by the company and 22,225 shares offered by two individual selling stockholders. The selling stockholders will receive all of the net proceeds from the sale of their selection of shares.
  • Evo Payments intends to use proceeds to purchase LLC interests in EVO Investco, LLC and paired shares of the Company's Class D common stock from funds affiliated with Madison Dearborn Partners, LLC.

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