Hourly In Play (R)

Updated: 14-Jul-20 01:00 ET

 Monday After the Close   
17:51  GRTX Galera completes patient enrollment in its pilot Phase 1b/2a trial (7.35 +0.17)

  • Co announces it has completed patient enrollment in its pilot Phase 1b/2a safety and anti-cancer efficacy clinical trial of avasopasem manganese (GC4419) in combination with stereotactic body radiation therapy (SBRT) in patients with locally advanced pancreatic cancer (LAPC).
  • The trial is also assessing safety and tolerability to determine the recommended dose of SBRT when combined with GC4419 or placebo.
17:39  VCTR Victory Capital reports assets under management (AUM) of $129.1 bln on June 30, up 1.1% from end of May (17.77 -0.98)

17:25  ENOB Enochian Biosciences files for $50 mln common stock offering (3.69 -0.23)

17:00  MHK Mohawk discloses receipt of subpoenas issued by the US Attorney's Office for the Northern District of Georgia and the SEC in connection with allegations of fabricated revenues and other charges (76.60 +6.13)

  • "As we manage through the current economic disruption, Mohawk is well positioned with a strong balance sheet and limited debt. We have recently issued over $1 billion of long term bonds to strengthen our ability to strategically invest and better position Mohawk for the future. Our operations are improving as countries adapt to Covid-19."
  • "On June 29, 2020, an Amended Class Action Complaint for violations of federal securities laws was filed against Mohawk and its CEO Jeff Lorberbaum in the Northern District of Georgia. The complaint alleges that the Company (1) engaged in fabricating revenues by attempting delivery to customers that were closed and recognizing these attempts as sales; (2) overproduced product to report higher operating margins and maintained significant inventory that was not salable; and (3) valued certain inventory improperly or improperly delivered inventory with knowledge that it was defective and customers would return it. The Company intends to vigorously defend itself in the lawsuit."
  • "On June 25, 2020, the company received subpoenas issued by the U.S. Attorney's Office for the Northern District of Georgia and the U.S. Securities and Exchange Commission on topics similar to those raised by the amended complaint. The company is cooperating with those authorities."
16:50  PNM PNM Resources reaffirms EPS guidance for FY20 (38.83 -0.03)

  • Co reaffirms guidance for FY20 (Dec), sees EPS of $2.16-2.26 vs. $2.17 S&P Capital IQ Consensus.
  • During Q2, reductions to load related to COVID-19 were offset by warmer than normal temperatures across New Mexico and Texas.
16:47  IVC Invacare reports preliminary Q2 revenue below consensus estimate; quotes for mobility and seating products improve from Q2 (6.33 +0.17)

  • Co reports preliminary Q2 revenue of $196 mln vs. the $215.4 mln S&P Capital IQ consensus estimate.
  • When adjusted for the impact of foreign currency translation and the divestiture of Dynamic Controls, preliminary constant currency net sales decreased 13% compared to 2Q19.
  • Adjusted EBITDA is expected to be favorable to 2Q19 driven by higher gross margin as a percentage of net sales and lower SG&A expenses.
  • As a result of the sudden shift in product mix and our long-lead supply chain, IVC also expects a temporary increase in inventory. However, IVC anticipates this inventory will convert to cash in the remainder of 2020 and into 2021.
  • Business Update: At the start of 3Q20, quotes for mobility and seating products have improved compared to 2Q20 on a global basis. However, the magnitude of the recovery is different by region as result of different shutdown actions in each country. While it is difficult to estimate the shape of the recovery, consolidated net sales are expected to increase sequentially with the resumption of access to clinics, but remain at a lower level than the same periods in 2019.
16:35  LK Luckin Coffee (LKNCY) appoints Jinyi Guo as new Chairman (2.90 -0.82)

The company held an extraordinary general meeting (EGM) of shareholders on July 5 and a Board meeting on July 12. Pursuant to the results of the EGM, Ms. Jie Yang and Ms. Ying Zeng have been appointed as independent directors to the Board, and Mr. David Hui Li, Mr. Erhai Liu, Mr. Charles Zhengyao Lu, and Mr. Sean Shao ceased to be directors to the Board. Pursuant to the results of the Board Meeting, Mr. Yang Cha and Mr. Feng Liu have been appointed as independent directors to the Board. Mr. Jinyi Guo, a director to the Board and the former Acting CEO of the company, has been appointed as the Chairman to the Board and the CEO of the company.
16:33  VNDA Vanda Pharma receives FDA authorization for individual patient expanded access protocol for the use of tradipitant for gastroparesis (11.36 -0.13)

  • Co announces that the FDA has authorized a single patient in an Individual Patient Expanded Access protocol.
  • This patient had previously participated in a randomized study of tradipitant in gastroparesis for 12 weeks.
  • The patient and treating physician requested expanded access to continue treatment beyond 12 weeks, as the treating physician had judged that tradipitant was the only treatment that effectively managed the patient's gastroparesis symptoms.
  • The FDA's Division of Gastroenterology has authorized expanded access to tradipitant for this patient for an additional 6 months under this protocol with the potential to renew upon written request containing additional safety information collected during those 6 months.
  • The 12-week randomized placebo-controlled Phase III study of tradipitant in patients with gastroparesis that this patient originally participated in is ongoing.
16:22  AB AllianceBernstein assets under management increase to $600 bln (27.12 +0.18)

  • Co announces that preliminary assets under management increased to $600 billion during June 2020 from $596 billion at the end of May.
  • The 0.7% increase was due to market appreciation, partially offset by firmwide net outflows.
  • By channel, net outflows from Institutions and Private Wealth exceeded Retail net inflows.
16:21  INMB INmune Bio reports interim Phase 1b clinical data demonstrating that XPro1595 decreases neuroinflammation in Alzheimer's disease patients (8.85 +1.85)

  • INmune Bio today reported clinical data demonstrating that its lead drug candidate, XPro1595, decreases neuroinflammation in patients with Alzheimer's disease. Interim results from a Phase Ib clinical trial show that treatment with XPro1595 decreases white matter free water, a biomarker of neuroinflammation measured by MRI.
  • XPro1595 is a next-generation inhibitor of tumor necrosis factor (TNF) that selectively neutralizes soluble TNF, an inflammatory cytokine implicated in Alzheimer's pathology, without affecting transmembrane TNF or the TNF receptors.
  • INmune compared biomarker data obtained from six patients treated with XPro1595 for 12 weeks with data from 25 Alzheimer's patients from the Alzheimer's Disease Neuroimaging Initiative (ADNI) that are part of a natural history database in patients with Alzheimer's. Over a 12-week period, whole brain inflammation increased by 5.1% in the ADNI patients compared to an increase of 1.7% and a decrease of 2.3% in patients treated weekly with 0.3mg/kg or 1.0mg/kg of XPro1595, respectively. A more detailed analysis revealed a 40.6% reduction in neuroinflammation in the Arcuate Fasciculus in patients treated with XPro1595. The Arcuate Fasciculus is a major white matter anterior/posterior tract containing long and short fibers that connects the frontal, parietal, and temporal lobes and is important for language and short-term memory. By contrast, the ADNI cohort had a 4.6% increase in Arcuate Fasciculus neuroinflammation.
  • INmune will host a key opinion leader event at 8 a.m. EDT tomorrow.
16:21  WRAPX Closing Stock Market Summary

The S&P 500 advanced as much as 1.6% on Monday, but a confluence of negative-sounding headlines caused noticeable profit taking in many of the technology-related stocks that left the benchmark index down 0.9% for the session. The Nasdaq Composite fell 2.1%, and Russell 2000 fell 1.3%. The Dow Jones Industrial Average (+0.04%) eked out a fractional gain. 

The S&P 500 information technology (-2.1%), communication services (-2.0%), and consumer discretionary (-1.7%) sectors declined the most, while the health care (+0.5%), industrials (+0.4%), and financials (+0.3%) sectors showed relative strength. 

The day started in rally mode with the FAANG stocks hitting fresh all-time highs and health care stocks outperforming after two COVID-19 vaccine candidates from the Pfizer (PFE 35.21, +1.38, +4.1%) and BioNTech (BNTX 77.78, +7.42, +10.6%) collaboration received fast-track designation from the FDA. 

After the S&P 500 topped out at the 3235.28 level at around 1:40 p.m. ET, the Treasury Budget for June revealed a record $864.1 billion deficit, the Los Angeles and San Diego Unified School Districts announced that the new school year will start remotely, and Secretary of State Pompeo confirmed the U.S. will strengthen its policy on China's territorial claims in the South China Sea.

Losses accelerated, taking the market into negative territory, after California Governor Newsom announced all counties have to re-close indoor operations in several business sectors due to the coronavirus. In addition, the inability of the S&P 500 to stay above its June 8 closing level (3232.39) likely contributed to the downwards momentum.

Shares of Tesla (TSLA 1497.06, -47.59, -3.1%), which were up as much as 16%, turned negative and encouraged profit taking in many of the other mega-cap technology stocks that some say had gotten overbought. Each of the FAANG stocks closed lower. 

In other developments, PepsiCo (PEP 134.94, +0.45, +0.3%) beat top and bottom-line estimates; Analog Devices (ADI 117.25, -7.25, -5.8%) issued upside Q3 guidance and agreed to acquire Maxim Integrated (MXIM 69.29, +5.20, +8.1%) for approximately $21 billion in stock; and Macau lifted its quarantine travel restrictions, boosting many of the casino stocks. 

U.S. Treasuries ended the session near their flat lines. The 2-yr yield was flat at 0.16%, and the 10-yr yield increased one basis point to 0.64%. The U.S. Dollar Index decreased 0.1% to 96.54. WTI crude decreased 1.2%, or $0.49, to $40.08/bbl.

Reviewing Monday's economic data:

  • The Treasury Budget was earmarked with a gaping (and record) $864.1 billion deficit for the month of June. This budget data is not seasonally adjusted, so the June deficit cannot be compared to the May deficit of $398.7 billion other than to say both qualify as massive shortfalls in terms of government finances. The deficit in June 2019 was $8.5 billion.
    • The key takeaway from the report is that the huge swing in the budget was a function of the tax filing deadline being extended, and government spending surging, due to stimulus measures employed in response to the COVID-19 impact.

Looking ahead, investors will receive the Consumer Price Index for June on Tuesday.

  • Nasdaq Composite +15.8% YTD
  • S&P 500 -2.3% YTD
  • Dow Jones Industrial Average -8.6% YTD
  • Russell 2000 -15.9% YTD
16:20  IVZ Invesco reports preliminary June 30, 2020 assets under managementof $1.145 bln, up 0.2% from previous month-end (10.62 +0.09)

  • Co reports preliminary month-end assets under management of $1,145.2 bln, an increase of 0.2% versus previous month-end.
  • Net long-term outflows were $5.2 bln.
  • Non-management fee earning net outflows were $9.5 bln and money market net outflows were $7.4 bln.
  • AUM was positively impacted by favorable market returns, which increased AUM by $22 bln.
16:19  ABT Abbott Labs settles patent cases with Edwards Lifesciences (93.14 +0.10)

  • Abbott (ABT) announces it has reached an agreement with Edwards Lifesciences (EW) to settle all outstanding patent disputes between the companies in cases related to transcatheter mitral and tricuspid repair products.
  • Abbott will receive a one-time payment and ongoing payments based on Pascal sales through 2025 as well as a potential sales milestone payment in 2026. Details of the settlement are confidential.
16:17  JEF Jefferies names Matthew Larson as new Chief Financial Officer (16.27 +0.26)

  • JEF announces today that, effective August 24, 2020, Matthew Larson will become Jefferies Group's Chief Financial Officer, succeeding Teresa Gendron, who has been Jefferies Group's Interim Financial Officer since the untimely illness and death of its former CFO, Peg Broadbent.
  • Mr. Larson is currently the Chief Financial Officer of Barclays Americas, as well as CFO of Barclays PLC's Global Markets business.
16:16  OSMT Osmotica Pharmaceuticals commences 5.0 mln share common stock offering (7.72 -1.05)

16:09  GILD Gilead Sciences and Arcus Biosciences (RCUS) close of their option and co-development and co-commercialization partnership agreement (76.68 +0.36)

  • GILD and RCUS announce the closing of their option and co-development and co-commercialization partnership agreement signed on May 27, 2020.
  • Under the terms of the agreements, the closing of this transaction triggered a payment of $175 mln by GILD to RCUS.
  • In addition, GILD made an equity investment in Arcus of approximately $200 mln by purchasing shares at a price of $33.54 per share.
  • As a result of this investment and GILD's participation in RCUS's follow-on offering on May 28, 2020, GILD now owns nearly 8.2 mln shares of common stock of RCUS, representing approximately 13% of RCUS's outstanding shares.
16:05  MRUS Merus and Caris Life Sciences launch collaboration intended to detect NRG1 fusions in cancer patients (13.66 -0.72)

Merus and Caris Life Sciences, an innovator in molecular science focused on fulfilling the promise of precision medicine, today announced a collaboration to detect neuregulin 1 (NRG1) fusions in cancer patients. Under the agreement, Caris has agreed to perform whole exome sequencing of DNA and whole transcriptome sequencing of RNA for certain cancer patients, focusing on pancreatic cancer, to identify the presence ofNRG1 fusions and to increase awareness of and potential enrollment in Merus' bispecific antibody Zenocutuzumab Phase 1/2 eNRGy trial.
16:03  IMMU Immunomedics expands collaboration with Roche (RHHBY) to evaluate Trodelvy with Tecentriq in patients with metastatic urothelial cancer and metastatic non-small cell lung cancer (39.97 -1.35)

  • Immunomedics today announced an extension of its current clinical collaboration with Roche to evaluate Trodelvy, Immunomedics' anti-Trop-2 ADC, in combination with Tecentriq, Roche's programmed cell death ligand 1 (PD-L1)-blocking checkpoint inhibitor (CPI), in patients with metastatic urothelial cancer (mUC) and metastatic non-small cell lung cancer (mNSCLC).
  • Roche will be conducting two open-label, multicenter, randomized Phase 1b/2 studies using its MORPHEUS platform. The MORPHEUS-mUC study will randomize CPI-nave mUC patients who have failed platinum-containing chemotherapy to receive the Tecentriq plus Trodelvy combination or Tecentriq alone. The second study, Morpheus-Lung, will enroll CPI-experienced mNSCLC patients after failure with platinum-based regimen to receive either Tecentriq and Trodelvy or docetaxel alone.
16:03  ALT Altimmune files for share common stock offering, no amount provided (25.00 +2.65)


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