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  • Today - Wednesday, February 10, 2016

  • 9:17 AM
    • Time Warner (NYSE:TWX) is sliding premarket, -7.6%, after its Q4 results showed a significant miss on revenues as Warner Bros. declined, though profits beat expectations and the company offered full-year guidance better than expected.
    • As with Viacom and Paramount, a lack of hit movies hurt Warner Bros. with a comp against the prior year's Hobbit sequel, as well as Interstellar.
    • Turner benefited from a bump in ad revenues (up 5% to $52M), while subscription, content and other revenues were flat. HBO, meanwhile, rode a 20% gain in Content and other revenues boosted by international licensing.
    • Revenue by segment: Turner, $2.66B (up 2.1%); Home Box Office, $1.41B (up 5.5%); Warner Bros., $3.31B (down 13.4%). Adjusted operating income was flat at HBO, but fell slightly at Warner Bros. and dropped 15% at Turner.
    • It's bumping its quarterly dividend 15% for March and has authorized a new $5B share repurchase program.
    • The company guided to full-year adjusted EPS of $5.30-$5.40, stronger than a consensus expectation of $5.26.
    • Conference call to come at 10:30 a.m. ET.
    • Press Release
    | 9:17 AM | 1 Comment
  • 8:36 AM
     
    • Financial conditions "have become less supportive to growth," says Janet Yellen in prepared remarks leading off two days of Congressional testimony on the economy and all things Fed.
    • There are also "downside risks" from global conditions (China), which could hit export activity and tighten financial conditions even further.
    • On the upside, big declines in interest rates and the price of oil should be a boon.
    • The Fed boss takes pains to say there's no preset course for rate hikes. The Q&A could be of interest as she will surely be asked about the "dots" showing expectations for four rate hikes this year.
    | 8:36 AM | 33 Comments
  • 8:19 AM
     
    • The general theme of the team's picks was a benign environment - the dollar to rise vs. the euro and yen on divergent monetary policies; peripheral EU bonds to outperform German; U.S. banks to outperform the broader market (a particular stinker).
    • "Markets have started out this week by aggressively de-risking, apparently owing to fears that the recent slowdown in global growth could descend into recession," says the bank's Charles Himmelberg. "Financial credit spreads are spiking, especially in Europe, possibly signaling a reactivation of systemic risk concerns.”
    • Goldman's one trade working this year is a recommendation to a buy a basket of 48 non-commodity exporting companies vs. a basket of 50 emerging-market bank stocks.
    | 8:19 AM | 2 Comments
  • 8:03 AM
    • Tesla Motors (NASDAQ:TSLA) reports earnings today after the bell in a highly anticipated event.
    • Revenue: The company is expected to post sales of $1.8B, up 69% from last year.
    • Profit: The consensus EPS estimate stands at $0.07. Also watch automotive gross margin (ex-ZEV credits) for the impact of ramping up production, sales, and development.
    • Production/deliveries: Tesla is likely to give out a high-flying 2016 Model X production target after delivering 50,580 vehicles in 2015. Investors will be looking for details on the run-rate over the last few weeks after Tesla tipped it can churn out 238 vehicles per week shortly.
    • Model 3: Tesla confirmed a $35K price tag on the new EV model, but Elon Musk will be quizzed on the conference call on engineering progress and the critical timetable for the mass-market model roll-out.
    • Gigafactory: Updates on costs and the employee count at the Nevada plant could be issued.
    • Energy: The company has been relatively quiet on key partnerships in energy storage. Is there an ace up its sleeve?
    • Tesla is +2.53% premarket to $152.00 even.
    | 8:03 AM | 33 Comments
  • 7:12 AM
    • Banks are leading Europe's first gain in eight days after Deutsche Bank eased concerns over its funds by saying it's considering a bond buyback. The stock's higher by 13.5% in Frankfurt action.
    • Italy's (NYSEARCA:EWI5.2% moonshot is leading the Stoxx 50's (NYSEARCA:FEZ2.6% advance. Germany's (NYSEARCA:EWG) up 2.5%.
    • The Nikkei fell another 2.3% overnight, but finished well of its worst levels.
    • Nasdaq 100 futures are up 1.4%, S&P 500 1%, and DJIA 0.75%.
    • The 10-year Treasury yield is ahead two basis points to 1.75%, gold is down 1.3% to $1,183, and oil is up 1.5% to $28.37.
    • Later: Janet Yellen gets a chance to walk back any Fed hawkishness still remaining when she testifies before Congress.
    • ETFs: SPY, QQQ, DIA, SH, SSO, SDS, VOO, IVV, UPRO, SPXU, PSQ, TQQQ, SPXL, RSP, SPXS, QID, SQQQ, QLD, DOG, DXD, UDOW, RWL, EPS, SDOW, VFINX, DDM, BXUB, QQEW, QQQE, SPLX, SFLA, BXUC, QQXT, SPUU, LLSP, UDPIX, OTPIX, RYARX
    | 7:12 AM | 11 Comments
  • 5:09 AM
     
    • Fed Chair Janet Yellen is set to deliver her semi-annual monetary policy testimony in Washington today in what will be her first major appearance of the year and since the Fed's controversial rate hike last December.
    • The meeting will give the best insight to date on whether the central bank feels it can proceed with a rate tightening cycle or will be waylaid by problems including financial market volatility, the oil rout, slumping Chinese growth and weakness in the global economy.
    | 5:09 AM | 32 Comments
  • 4:04 AM
    • Oil prices are pushing higher after Iran proclaimed it was open to cooperation with Saudi Arabia, partly recovering from a 6% fall in the previous session on oversupply worries and weak equities.
    • "We support any form of dialogue and cooperation with OPEC member states including Saudi Arabia," Iranian oil minister Bijan Zangeneh told Press TV.
    • Traders will also turn to EIA's weekly inventory data this morning, following yesterday's API figures that reported a build of 2.4M barrels in U.S. crude stockpiles.
    • Crude futures +2.3% to $28.58/bbl.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | 4:04 AM | 36 Comments
  • 2:27 AM
    • Japanese stocks extended a heavy selloff today, closing in the red for six of the past seven sessions, despite a festive atmosphere across East Asia for the Lunar New Year holiday.
    • With many now questioning the Bank of Japan's recent move into negative interest rates, Japanese Prime Minister Shinzo Abe defended BOJ Governor Haruhiko Kuroda's handling of economy, and said it was up to the central bank to decide what policy instruments to use.
    • Nikkei -2.3% to 15,713
    • ETFs: DXJ, EWJ, DFJ, DBJP, NKY, JOF, JPNL, EZJ, DXJS, JEQ, EWV, HEWJ, SCJ, JSC, JPP, JHDG, QJPN, DXJH, DXJT, DXJF, FJP, JPMV, DXJR, DXJC, JDG, JPN, FXJP, JPXN, JPNH, HGJP, HEGJ, HFXJ
    | 2:27 AM | 3 Comments
  • Tuesday, February 9, 2016

  • 5:58 PM
    • Shares of Walt Disney (NYSE:DIS) continued declining as much as 7% in postmarket trading early in its earnings conference call, and made up a bit of ground during ESPN-related questioning -- now down 3.4%, despite upbeat talk from CEO Bob Iger: "We feel really good about how all four of our businesses are positioned."
    • Star Wars boosted Studio Entertainment (revenues up 46%; operating income up 86%), and not just the new movie, either: Classic titles in the franchise drove increased home entertainment results, and higher TV/SVOD distribution was driven by global growth.
    • Parks and Resorts increased operating income (up 22%) faster than revenue (up 9% to $4.3B), boosted by domestic parks that saw attendance growth and higher guest spending, with higher average ticket prices at parks and the cruise line. International results were affected of course by higher pre-opening costs at Shanghai, opening in June.
    • With analysts and the market seemingly focused like lasers on ESPN, Iger noted "We've actually seen an uptick in ESPN subs, which is encouraging"; notions that ESPN is cratering in any way are "ridiculous; sports is too popular" and "the predictions many have made are more dire than they should be."
    • While there were discrepancies among public comments last summer about what caused declines (cord-cutting or skinny bundles?), execs are in line now: Nielsen was telling them it was a simple loss of subs, but with corrected numbers, "we concluded that our sub loss was largely due to the fact that ESPN was not part of skinny bundles that had launched."
    • Iger's comments on TV suggested a split bet: "The expanded basic bundle will remain the dominant product for consumers for the foreseeable future," he says, while also noting that the company has brands built for over-the-top: Star Wars, Marvel and (most interestingly) ESPN. "Expect innovation and pursuit of new distribution opportunities."
    • Previously: Disney now down 3.2% after 'Star Wars' pushes record quarterly earnings (Feb. 09 2016)
    • Related: Walt Disney's (DIS) CEO Bob Iger on Q1 2016 Results - Earnings Call Transcript (Feb. 09 2016)
    | 5:58 PM | 72 Comments
  • 4:37 PM
    • Walt Disney (NYSE:DIS) has turned south after hours, -3.2%, after posting an all-time high in quarterly earnings, easily beating expectations with a little help from a space opera. Revenues jumped 14% Y/Y.
    • Earnings of $2.9B were a record and up nearly 32% from the prior year.
    • Studio Entertainment and Consumer Products & Interactive Media both reported record operating income, up 86% and 23% respectively, credited to success from Star Wars: The Force Awakens. Parks & Resorts grew operating income 22%, while it fell 6% at Media Networks.
    • Revenue by segment: Media Networks, $6.33B (up 8%); Parks & Resorts, $4.28B (up 9%); Studio Entertainment, $2.72B (up 46%); Consumer Products & Interactive Media, $1.91B (up 8%).
    • The company pointed to timing of the College Football Playoff -- games moved to the New Year's holiday and ratings sank -- for the hit to Media Networks. But: "We've actually seen an uptick recently in ESPN subs," CEO Bob Iger tells CNBC.
    • Conference call to come at 5 p.m. ET.
    • Press Release
    | 4:37 PM | 87 Comments
  • 4:32 PM
    • Though SolarCity (NASDAQ:SCTY) beat Q4 revenue and EPS estimates, the company has reported quarterly installations of 272MW (+54% Y/Y), below guidance of 280MW-300MW.
    • Moreover, SolarCity expects installations in seasonally weaker Q1 to total 180MW (-34% Q/Q and +18% Y/Y). SolarCity: "This represents a higher-than-usual seasonal slowdown that we have historically experienced after strong fourth quarters largely owing to two reasons. First is the impact of our decision to end Nevada operations in December 2015; NV contributed 23 MW in Q4 2015. It also reflects our renewed focus on our cash conversion cycle, particularly in longer lead-time commercial projects." Q1 EPS guidance of -$2.55 to -$2.65  is below a -$2.36 consensus.
    • The company expects installations to "ramp throughout 2016," and is reiterating full-year installation guidance of 1.25GW. SolarCity: "Though the ITC extension certainly provides us with more tailwinds to growth, the primary focus of our company in 2016 is our goal of generating positive cash by year-end ... our guidance still implies over 40% annual growth in 2016."
    • Q4 metrics: Deployments +44% Y/Y to 253MW. Cumulative MW deployed +76% to 1.74GW. Cost/watt fell $0.13 Q/Q and $0.15 Y/Y to $2.71. Gross value of MW deployed fell $0.22 Q/Q and rose $0.06 Y/Y to $3.64. Delinquencies of 180+ days remain "comfortably below 1%."
    • Financials: Operating lease & system incentive revenue +53% Y/Y to $75.4M. System/component sale revenue +77% to $40.1M.GAAP operating expenses +68% to $227M - sales/marketing spend totaled $128.1M, G&A $76.2M, and R&D $22.8M.

      2015 capex totaled $176.6M. SolarCity ended the year with $394M in cash/investments, over $1.2B in PowerCo debt, and over $1.4B in DevCo debt. Solar bonds and convertible debt respectively accounted for $214M and $909M of the DevCo debt.
    • SolarCity's Q4 results, shareholder letter (.pdf), slides (.pdf)
    • Update (6:36PM ET): The post has been updated to include additional details about SolarCity's Q4. Shares are now down 32.6% after hours to $17.75.
    | 4:32 PM | 72 Comments
  • 4:25 PM
     
    • The stock market ended a volatile session with a late rally that pulled the major averages just short of their flat lines.
    • Early weakness was tied to concerns about Japan's sharp losses and worries about the health of Europe's banking sector and the exposure to bad loans and negative interest rates; Deutsche Bank, which fell 1% today, has surrendered 36.3% YTD.
    • Today saw some buying on the dips, as "people looking long-term are seeing more value, but at the same time people are a bit cautious ahead of the Fed," said Kate Warne, investment strategist at Edward Jones.
    • WTI crude sank 6% to $27.93/bbl but had fallen as much as 8%; independent oil and gas names such as EOG Resources (-4.2%) and Anadarko Petroleum (-7%) suffered the largest losses from oil's tumble, and the broader energy sector fell 2.5%.
    • Materials (+1.2%) and health care (+0.7%) were the sectors showing the day's largest advance.
    • Investor participation was slightly above the recent average, with 1.12B shares changing hands at the NYSE floor.
    • U.S. Treasurys ended little changed; the yield on the 10-year note ended lower by 2 bps at 1.73%.
    | 4:25 PM | 2 Comments
  • 3:24 PM
    • What to watch as Walt Disney (DIS +0.5%) reports after the bell: Anything to say about whether ESPN can dampen top-line enthusiasm coming from the early success of Star Wars.
    • Results should still be strong Y/Y, says SA contributor JJ Kinahan; the question is whether the recent strength is sustainable as subscribers depart ESPN by the millions.
    • Implied volatility is high, Kinahan says, suggesting a strong move either direction out of earnings. Some options traders are buying puts to hedge against a drop.
    • Analyst Michael Nathanson warns of legitimate concern over twin levers on ESPN: declining affiliate fee growth against the rising cost of providing sports. The company needs to be proactive about the ESPN narrative to fend off long-term worries, he says.
    | 3:24 PM | 5 Comments
  • 2:26 PM
    • Amid growing concerns about the bank's financial health, the FT reports Deutsche Bank (DB -2.4%) is "considering buying back several billion euros of its debt." Shares have pared their Tuesday losses following the report.
    • The FT adds the buyback is expected to focus on senior bonds, of which Deutsche had €50B ($56.5B) as of September. Contingent convertible bonds, the subject of much recent investor concern, aren't expected to be involved.
    • Bank debt worries have led to surging CDS prices in recent weeks. The FT states a CDS for Deutsche's 5-year senior euro debt was trading at 242 bps today, its highest level since the end of the 2011 eurozone crisis.
    • Earlier: Deutsche CEO says company is "rock-solid"
    • Yesterday: Deutsche Bank at record low as fear over European banks grows
    | 2:26 PM | 13 Comments
  • 12:52 PM
    • Viacom (VIA -12.3%, VIAB -15.2%) is now off more than 15% and hitting new 52-week lows after a tense earnings call where chief Philippe Dauman pushed back against "naysayers."
    • The call followed a Q4 report where the company saw declines in revenue with ad sales slipping and film revenues that tumbled 15%.
    • "Our outlook and the facts have been distorted and obscured by the naysayers, self-interested critics and publicity seekers," Dauman said. Despite a couple of years of price declines, Viacom's stock buyers have waded through "a lot of noise."
    • "How is this not a business in decline?" asks Bernstein's Todd Juenger, who rates the stock Underperform. Everything was down Y/Y, he notes, and "at this juncture, we think the stock is being driven much more by handicapping of the Dish renewal, and any continued drama surrounding changes in control. None of which is addressed in the press release, and probably won’t be addressed on the conference call either."
    • Regarding change of control: The company said Sumner Redstone (now chairman emeritus) was on the call, but he didn't speak, leaving commentary to new Executive Chairman Dauman.
    • Juenger has a $42 price target; VIAB shares closed yesterday at $41.85 and are trading currently at $35.51. The shares have lost 47.7% of value over the past 12 months.
    • Previously: Viacom -4.8% as ad sales, movie revenues decline (Feb. 09 2016)
    • Previously: Viacom EPS in-line, misses on revenue (Feb. 09 2016)
    • Previously: Viacom, Snapchat agree on multiyear ad sales deal (Feb. 09 2016)
    | 12:52 PM | 9 Comments
  • 10:33 AM
    • Carlyle Group (CG -1.1%) has put together more than $3B for a fund for long-term investments by private equity, Bloomberg reports.
    • It's part of a trend by private-equity firms to break out of a 10-year horizon and put money to work for still longer. Carlyle has recruited a 14-member team and the fund has already invested nearly $500M in two companies, according to Tyler Zachem, a relative newcomer who will co-lead the group with Carlyle vet Eliot Merrill.
    • “We used to have to have pass" on deals where capital was needed longer, or family-owned firms that didn't want to go public in five years. "Now, we can lean in.”
    • The fund, called Carlyle Global Partners, will share the main buyout fund's mandate of at least doubling its investment over time, but will target lower annual returns and charge a lower fee than 20% of gains.
    | 10:33 AM | 3 Comments
  • 10:05 AM
     
    • 5.607M job openings vs. consensus of 5.431M, 5.346M (revised) in November.
    • Report
    | 10:05 AM | 9 Comments
  • 6:03 AM
     
  • 4:46 AM
    • The surplus of supply over demand at the start of the year is "even greater" than initially expected, the International Energy Agency said in its latest monthly report.
    • "With the market already awash in oil, it is very hard to see how oil prices can rise significantly in the short term."
    • Supply may exceed consumption by an average of 1.75M bpd in the first half of 2016, compared with an estimate of 1.5M last month, and the excess could swell if OPEC members bolster production.
    • Crude futures +2.2% to $30.34/bbl.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | 4:46 AM | 51 Comments
  • 2:20 AM
     
    • It's another ugly day for world shares. Investors are concerned that a protracted period of slowing global growth, plunging oil prices and rock-bottom interest rates will combine to inflict pain on the world's largest financial institutions, while the lofty valuations of tech stocks further weigh on sentiment.
    • The 'fear factor' in the markets is also being magnified by Fed Chair Janet Yellen's testimony this week, sending traders stampeding into only the safest of safe-haven assets.
    • U.S. 10 Year Treasury Yield -4 bps to 1.69% (a more than one-year low)
    • Asia: Japan -5.4%. Hong Kong closed. China closed. India -1.2%
    • Europe: London -0.6%. Paris -1.7%. Frankfurt -1.3%.
    • U.S. futures: Dow -0.4%. S&P -0.4%. Nasdaq -0.4%.
    | 2:20 AM | 27 Comments
  • Monday, February 8, 2016

  • 7:31 PM
    • Chinese markets are closed for the week with the Lunar New Year, but Japan is taking its Tuesday cues from Monday's markets in Europe and the U.S.
    • The Nikkei is down 680 points (about 4%) in early trading. The Nikkei 225 had reversed a four-day slide on Monday but has resumed its downtrend in the face of global trading weakness in energy and financials.
    • The dollar is down 0.3% against the yen.
    • Markets closed for Tuesday: China, Taiwan, Malaysia, Vietnam, Hong Kong, South Korea, and Singapore.
    • ETFs: DXJ, EWJ, DFJ, DBJP, NKY, JOF, JPNL, EZJ, DXJS, JEQ, EWV, HEWJ, SCJ, JSC, JPP, JHDG, QJPN, DXJH, DXJT, DXJF, FJP, JPMV, DXJR, DXJC, JDG, JPN, FXJP, JPXN, JPNH, HGJP, HEGJ, HFXJ
    | 7:31 PM | 11 Comments
  • 3:29 PM
    • AOL chief Tim Armstrong is the point person as Verizon (VZ -0.7%) explores a bid for assets at Yahoo (YHOO -4.3%), Bloomberg reports.
    • Discussions aren't far along and Verizon hasn't hired any bankers, but Armstrong is the one leading preliminary discussions, sources said.
    • Another source said Armstrong was picking up on conversations he had with Yahoo CEO Marissa Mayer at the Sun Valley media conference in 2014 -- before AOL was bought by Verizon, but while he was exploring the idea of combining AOL and Yahoo. The two are both former Google executives.
    • Armstrong has had a fairly free hand to run AOL as an independent advertising/media business at Verizon, and he also ran point on Verizon's $248M purchase of Millennial Media last year -- another company with which the independent AOL had begun tie-up talks.
    • Yahoo has dipped today, -4.3%, to a new 52-week low of $26.48.
    • Previously: Verizon confirms interest in buying Yahoo (Feb. 08 2016)
    • Previously: Bain and TPG reportedly eyeing Yahoo; shares close down 4.7% post-earnings (Feb. 03 2016)
    • Previously: AOL closes $248M deal for Millennial Media (Oct. 23 2015)
    | 3:29 PM | 9 Comments
  • 2:52 PM
    • Denver's 24-10 defeat of Carolina in the Super Bowl drew 111.9M viewers in overnight ratings for CBS (CBS -5.3%) last night -- down from last year's 114.4M, despite an upbeat Les Moonves pressing for an all-time high.
    • That makes it the No. 3 most watched program in television history.
    • File under "TV lessons": The show did however peak at 115.5M million viewers between 8:30 and 9 p.m. -- when Beyonce appeared on the halftime show with Coldplay and Bruno Mars.
    • Streaming coverage set records across every category as the live stream drew 3.96M unique viewers across all devices, and watched 101 minutes on average. For the first time, national ads ran in the same spots on the linear broadcast and streaming presentation.
    | 2:52 PM | 2 Comments
  • 2:37 PM
    • Many tech stocks are seeing 6%+ losses as investors flee to safety yet again. The Nasdaq is down 3.4%, and the S&P 2.7%.
    • As was the case on Friday following Tableau and LinkedIn's disappointing guidance, a slew of enterprise tech stocks are seeing big losses, with cloud software and security tech names well-represented on the casualty list.
    • Also: Solar stocks are having another brutal day (TAN -6.7%) as energy stocks get routed amid fears Chesapeake Energy is close to bankruptcy. WTI crude oil is once more near $30/barrel.
    • Enterprise software decliners: Adobe (ADBE -9.6%), Paylocity (PCTY -19.1%), Salesforce (CRM -9.9%), Workday (WDAY -12%), Guidewire (GWRE -12.5%), ServiceNow (NOW -11.5%), Zendesk (ZEN -13.8%), Paycom (PAYC -13.4%), Marin Software (MRIN -10.3%), Castlight (CSLT -8.4%), Cornerstone OnDemand (CSOD -12.1%), Atlassian (TEAM -13.2%), inContact (SAAS -9.6%), and Bazaarvoice (BV -14.5%).
    • Enterprise security decliners: Palo Alto Networks (PANW -12.2%), FireEye (FEYE -9.8%), CyberArk (CYBR -11.5%), Proofpoint (PFPT -12.7%), Qualys (QLYS -8.9%), Imperva (IMPV -9.7%), Rapid7 (RPD -9.4%), and Barracuda (CUDA -8.4%).
    • Solar decliners: SunEdison (SUNE -11.3%), SunPower (SPWR -8.8%), JinkoSolar (JKS -7.6%), SolarEdge (SEDG -7.9%), Yingli (YGE -7.1%), TerraForm Power (TERP -10.7%), and TerraForm Global (GLBL -9.2%).
    • Other major decliners: Micron (MU -9.1%), Western Digital (WDC -10.5%), Arista (ANET -10.9%), Universal Display (OLED -10.6%), Rackspace (RAX -11.3%), Fitbit (FIT -8.7%), Nimble Storage (NMBL -11.3%), Sierra Wireless (SWIR -9.9%), Rocket Fuel (FUEL -9.8%), Knowles (KN -9%), Mitel (MITL -8.9%), and Alarm.com (ALRM -8.9%).
    • Previously covered: Yelp, Cognizant, Tableau, Globant, Ambarella, European tech stocks
    | 2:37 PM | 26 Comments
  • 1:22 PM
    • Yelp (NYSE:YELP): Q4 EPS of $0.11 beats by $0.14.
    • Revenue of $153.7M (+39.9% Y/Y) beats by $1.3M.
    • Expects Q1 revenue of $154M-$157M (+31% Y/Y at the midpoint) vs. a $154.4M consensus.
    • Expects 2016 revenue of $685M-$700M (+26% Y/Y at the midpoint) vs. a $687.4M consensus.
    • CFO Rob Krolik will be stepping down in the coming months. A search will be carried out to find a successor.
    • Shares are halted.
    • Press Release
    • Update (1:39PM ET): Yelp is down 2.8% after resuming trading. Shares were down more sharply earlier today.
    | 1:22 PM | 9 Comments
  • 5:22 AM
    • Most global stock markets are posting big losses as traders fret about a recession following Friday's disappointing U.S. jobs report, indicating Wall Street may carry on with the heavy casualties seen at the end of last week.
    • Investors are also looking ahead to testimony from Fed Chair Janet Yellen on Wednesday and Thursday, triggering continued uncertainty around the potential for the central bank to still raise interest rates this year.
    • Major Asian markets are closed for the Lunar New Year holidays.
    • Asia: Japan +1.1%. Hong Kong closed. China closed. India -1.7%
    • Europe: London -2%. Paris -2.6%. Frankfurt -2.8%.
    • U.S. futures: Dow -1.4%. S&P -1.5%. Nasdaq -2%.
    • ETFs: SPY, QQQ, DIA, SH, SSO, SDS, VOO, IVV, UPRO, PSQ, SPXU, TQQQ, SPXL, RSP, SPXS, QID, SQQQ, QLD, DOG, DXD, RWL, UDOW, EPS, SDOW, DDM, VFINX, BXUB, QQEW, QQQE, SPLX, SFLA, BXUC, QQXT, SPUU, LLSP, UDPIX, OTPIX, RYARX
    | 5:22 AM | 53 Comments
  • 4:54 AM
    • Oil futures are drifting into the red after a weekend meeting between Saudi Arabia and Venezuela to discuss coordination on crude costs ended with few signs there would be steps taken to boost prices.
    • "They seem like just general talk about cooperation, but nothing about cutting production," OPEC sources said. "The issue is not with Venezuela, it is with Iran."
    • Crude futures -3.5% $29.81/bbl.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | 4:54 AM | 72 Comments
  • Saturday, February 6, 2016

  • 2:42 PM
    • BuzzFeed reports Twitter (NYSE:TWTR) plans to launch an algorithmic (non-chronological) Timeline view as soon as next week.
    • The site adds it's "unclear" if Twitter will force users to rely on an algorithmic feed - that, in turn, has led to considerable angst among some Twitter users. However, NBC News' Josh Sternberg reports the feed will be strictly opt-in. VC/Twitter investor Chris Sacca: "There is a 0% chance Twitter eliminates the chronological feed."
    • Facebook's core news feed has long used an algorithmic view - it relies on data about user activity to order content based on what Facebook thinks a particular user wants to see. While many Twitter users find its chronological firehose invaluable for providing real-time news, commentary, and one-liners about what's going on in the world, many also feel overwhelmed by it (particularly given all the posts relaying the same story/event), and struggle to stay on top of news and commentary published while they were logged out.
    • Twitter began testing an algorithmic feed about two months ago. The efforts follow a mixed reaction to Twitter's much-hyped Moments feature, and with user growth/engagement concerns continuing to weigh heavily on shares. Q4 results arrive on Wednesday.
    • Yesterday: Twitter among Internet stocks hammered following LinkedIn's earnings
    • Last month: Twitter building feature that supports much longer tweets
    • Update: Jack Dorsey has responded to BuzzFeed's report and the ensuing backlash. "Regarding #RIPTwitter: I want you all to know we're always listening. We never planned to reorder timelines next week ... I *love* real-time. We love the live stream. It's us. And we're going to continue to refine it to make Twitter feel more, not less, live! ... Twitter can help make connections in real-time based on dynamic interests and topics, rather than a static social/friend graph. We get it."
    | 2:42 PM | 34 Comments
  • Friday, February 5, 2016

  • 8:29 PM
    • Privately held Chobani says it has rejected overtures from PepsiCo (NYSE:PEP) to take a stake, preferring to go it alone in a contentious yogurt market.
    • The sticking point was the size of the stake, Bloomberg reports: Pepsi wanted a majority share, while Chobani wanted to sell a minority stake. The move effectively ends talks of a tie-up.
    • Chobani has reportedly smoothed over struggles from rapid growth that included a massive yogurt plant in Idaho, and the company now plans to self-fund expansion, including a move into Mexico.
    • It looks like the end of a proxy war that could have valued Chobani at $3B. In the fall, rival Coca-Cola (NYSE:KO) ended talks to invest in Chobani, deciding it wasn't a great fit.
    • PepsiCo had ended its joint yogurt venture with Muller in December by closing a western New York plant that had opened in 2013.
    | 8:29 PM | 21 Comments
  • 11:39 AM
    • Lions Gate (NYSE:LGF) has hit a three-year low, tumbling 30.6% in its worst decline since going public, after a dim Q3 earnings report that showed weakness in its film results. The move is knocking half a billion dollars off the studio's market cap.
    • Starz (NASDAQ:STRZA) -- now back in merger talks with Lions Gate -- has tanked 15.7% as well so far today.
    • FBR & Co. has cut its price target on Lions Gate twice since Thanksgiving -- first from $43 to $38 at the end of November, and then from $38 to $31 on Monday. Shares closed at $25.45 yesterday and are trading at $17.72 today.
    • Stifel Nicolaus this morning cut its price target to $35, from $42. It holds a Buy rating on the stock, as does FBR. B. Riley on Wednesday reiterated its Buy rating and $50 price target.
    • Previously: Lions Gate down 5.3% as movie weakness spurs Q3 misses (Feb. 04 2016)
    • Previously: Lions Gate Entertainment misses by $0.07, misses on revenue (Feb. 04 2016)
    | 11:39 AM | 21 Comments
  • 11:01 AM
    • A long list of enterprise software and security tech names are off sharply after business intelligence/analytics software upstart Tableau (down 45.3%) reported slower-than-expected license revenue growth and issued below-consensus Q1/2016 guidance.
    • Also possibly weighing: LinkedIn (down 39.6%), which derives a large % of its revenue from cloud-based recruiting and sales tools for enterprises, issued weak Q1/2016 guidance.
    • Given the magnitude of the drops, margin calls and forced selling by funds could be playing a big role. The Nasdaq is down 2.2%.
    • Tableau suggested its growth slowdown has to do with softening IT spend and a need to improve sales productivity, but analysts have raised questions about competition from the likes of Microsoft, Amazon, and Qlik. LinkedIn forecast a growth slowdown for its field sales hiring solutions business, while blaming European/Asian macro pressures. The company also noted its display ad business continues declining amid weak industry growth.
    • Major enterprise software decliners include Splunk (SPLK -23.7%), Workday (WDAY -15.1%), Adobe (ADBE -7%), Zendesk (ZEN -15.2%), ServiceNow (NOW -13.6%), NetSuite (N -12.4%), Salesforce (CRM -11.2%), Paycom (PAYC -10.6%), Ellie Mae (ELLI -11.5%), Cornerstone OnDemand (CSOD -7.8%), Veeva (VEEV -7.7%), Ultimate Software (ULTI -9%), Luxoft (LXFT -7.5%), Manhattan Associates (MANH -8.5%), Box (BOX -6.6%), Guidewire (GWRE -13.6%), Demandware (DWRE -9.3%), Hortonworks (HDP -9.7%), and Tableau rival Qlik (QLIK -16.6%). The casualty list includes many cloud software firms, as well as several analytics software plays. Previously covered: New Relic, Atlassian.
    • Major decliners among security tech firms: Palo Alto Networks (PANW -12%), FireEye (FEYE -8.9%), Rapid7 (RPD -8.6%), CyberArk (CYBR -8.3%), Proofpoint (PFPT -8%), Imperva (IMPV -8.3%), Fortinet (FTNT -6.9%), and Vasco (VDSI -5.1%). The selloff comes in spite of an FQ3 beat and in-line FQ4 guidance from Symantec, which has been losing share to various upstarts.
    | 11:01 AM | 19 Comments
  • 8:46 AM
    | 8:46 AM | 27 Comments
  • 8:41 AM
    • Along with 151K jobs gained in January vs. estimates for 190K, December's 292K job gain was revised down to 262K, and November's 252K gain was revised higher to 280K. We'll call the revisions a wash.
    • The unemployment rate fell to 4.9% vs. 5% expected, and the labor force participation rate edged higher to 62.7%.
    • The broader U-6 unemployment rate held steady at 9.9%. It was 11.3% a year ago.
    • The average workweek rose by 0.1 hour to 34.6 hours. Average hourly earnings gained a big $0.12 to $25.39 (more than 5% annualized). On a Y/Y basis, wages were higher by 2.5%.
    • Initially maybe keying on the dip in unemployment and fast wage growth, the 10-year Treasury yield popped to 1.87%, but has since fallen to 1.84%. TLT +0.3%, TBT -0.6% premarket
    • Previously: Payrolls miss, but UE rate dips to 4.9% (Feb. 5)
    | 8:41 AM | 5 Comments
  • 8:31 AM
     
    • Jan. Trade Balance: -$43.4B vs. -$43.0B expected and -$42.2B (revised) prior.
    • Exports decreased to $181.5B, while imports increased to $224.9B.
    | 8:31 AM | 1 Comment
  • 8:30 AM
     
    • January Nonfarm Payrolls: +151K vs. consensus +190K, +262K (revised from 292K) previous.
    • Unemployment rate: 4.9% vs. 5% consensus, 5% previous.
    | 8:30 AM | 48 Comments
  • 7:13 AM
    | 7:13 AM | 13 Comments
  • Thursday, February 4, 2016

  • 5:54 PM
    • According to an FCC application, AT&T (NYSE:T) is pursuing a three-year experimental license to test 5G service in Austin, Texas, which might put it on a timeline with competitor Verizon (NYSE:VZ) in pursuing the next-gen wireless standard.
    • The telecom giant wants to do fixed and mobile tests with "various types of experimental wireless equipment" (but from undisclosed providers). The goal is to allow for trials (in the 3.5 GHz, 4 GHz, 15 GHz and 28 GHz bands) before standards are finalized in 2018-2019. A 5G service could provide wireless data speeds comparable to gigabit broadband.
    • Last September, Verizon announced an ambitious timetable that included 5G testing in 2016 followed by "some level of commercial deployment" in 2017; the company's CFO Fran Shammo has promised they would get to 5G first. Observers have assumed commercial rollout wouldn't happen until 2020.
    • This could also put some heat on upcoming spectrum auctions; tests are one thing, but commercial service means a need for more airwaves.
    • Previously: Verizon announces ambitious 5G timetable; to start field tests next year (Sep. 08 2015)
    | 5:54 PM | 24 Comments
  • 4:25 PM
     
    • Stocks closed modestly higher in choppy trading, as investors moved cautiously ahead of tomorrow’s jobs report.
    • Banks (+0.9), materials (+2.8%) and industrial companies (+1.7%), which are down sharply so far this year, were the day's biggest gainers.
    • Investor participation was consistent with recent volume, with more than 1B shares changing hands at the NYSE floor.
    • WTI crude oil started the day strong after rallying 8% yesterday but lost steam and ended the session 1.7% lower at $31.72/bbl, closing near its low of the day.
    • The dollar extended its recent downward trajectory, falling ~1%.
    • U.S. Treasury prices ended near their highs, as the yield on the benchmark 10-year note fell by 3 bps at 1.85%.
    | 4:25 PM | 9 Comments
  • 4:09 PM
    • LinkedIn (NYSE:LNKD): Q4 EPS of $0.94 beats by $0.16.
    • Revenue of $861.9M (+34.0% Y/Y) beats by $4.31M.
    • Expects Q1 revenue of $820M, below an $866.7M consensus.
    • Expects 2016 revenue of $3.6B-$3.65B and EPS of $3.05-$3.20, below a consensus of $3.91B and $3.67.
    • Shares -19% after hours.
    • Press Release
    | 4:09 PM | 51 Comments
  • 8:30 AM
     
    • Initial Jobless Claims+8K to 285K vs. 280K consensus, 277K prior (revised).
    • Continuing Claims 2.255M vs. 2.208M prior.
    | 8:30 AM | 12 Comments
  • 8:06 AM
    • Results from the Fed's Senior Loan Officer Opinion Survey show banks tightened standards on commercial and industrial and commercial real estate loans in Q4. Lenders also expect standards to tighten more over the course of this year.
    • Deutsche's Jim Reid says there's never been two consecutive quarters of tightening standards without signaling an eventual move into recession and a notable default cycle.
    • Households loans look to be a different story, with the survey finding a moderate easing of standards for residential mortgages, as well as on auto loans.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ, XLFS
    | 8:06 AM | 13 Comments
  • 7:32 AM
    | 7:32 AM | 3 Comments
  • 7:30 AM
     
  • Wednesday, February 3, 2016

  • 7:30 PM
    • Shortly after Yahoo (NASDAQ:YHOO) confirmed it's exploring "additional strategic alternatives" while pushing ahead with a reverse spinoff of its core business, the FT reports Bain, TPG, and other P-E firms are weighing potential bids for core Yahoo. The paper adds AT&T (NYSE:T) and InterActiveCorp (NASDAQ:IAC) "are also believed to be examining the company."
    • Many firms are expected to make full or partial bids for core Yahoo. CFO Ken Goldman: "A number of companies have said they want to look at us, and there are a number of private equity firms that are interested in looking at us. I’m not saying that we’ve received offers ... I’m saying parties have expressed interest in us. And what we’re saying is that we’ll be open [to] that.”
    • Re/code's Kara Swisher reports Yahoo has hired well-known tech i-banker Frank Quattrone to help it explore options; Goldman Sachs and Morgan Stanley are already on the payroll. "It is clear to us that what is happening inside is very dysfunctional," says an unnamed major investor talking to Swisher.
    • Meanwhile, with a sale effort and job cuts already expected, Yahoo fell below $28 in regular trading following its Q4 report and myriad of job cut, writedown, and strategic review announcements. Weak guidance may have weighed: Yahoo guided in its earnings slides (.pdf) for Q1 GAAP revenue of $1.05B-$1.09B and 2016 revenue of $4.4B-$4.6B, below consensus estimates of $1.14B and $4.78B.

      2016 ex-TAC revenue guidance of $3.4B-$3.6B is below 2015 ex-TAC revenue of $4.09B, which itself was below 2014's $4.4B. Non-GAAP op. income is  expected to drop to $150M-$250M from 2015's $342M and 2014's $755M.
    • Also of note: 1) $230M of Yahoo's $4.46B goodwill writedown was related to the $1.1B Tumblr acquisition. On the earnings call (transcript), Yahoo disclosed Tumblr failed to hit the company's $100M 2015 revenue target. 2) Along with everything else, Yahoo has begun exploring the sale of "non-strategic assets" such as patents and real estate. It estimates such sales could yield $1B-$3B in cash by year's end.
    • Prior Yahoo coverage
    | 7:30 PM | 20 Comments
  • 5:05 PM
    • Richard H. Anderson, Delta's (NYSE:DAL) CEO since 2007, is retiring on May 2. He'll remain with the company as executive chairman; Dan Carp will step down as non-executive chairman, while remaining on the board.
    • President Ed Bastian will succeed Anderson as CEO. EVP/chief revenue officer Glen Hauenstein will succeed Bastian as President. Global sales SVP Steve Sear has been promoted to international President and EVP of global sales. Following Anderson's appointment as chairman, director Frank Blake will become Delta's lead director.
    • DAL -0.4% after hours to $43.61.
    | 5:05 PM | 8 Comments
  • 4:42 PM
    • GoPro (NASDAQ:GPRO) has used its Q4 report to guide for Q1 revenue of $160M-$180M (far below a $298M consensus) and 2016 revenue of $1.35B-$1.5B (below a $1.61B consensus).
    • The company also discloses CFO Jack Lazar is leaving. GoPro's new CFO is Brian McGee, who joined the company last year after serving as the VP of Business Operations for Qualcomm's Atheros Wi-Fi chip unit. McGee has also served as the CFO of Lexar Media.
    • Though officially missing consensus, Q4 revenue ($436.6M) was slightly above the guidance provided in GoPro's Jan. 13 warning ($435M). Give the Q4 consensus doesn't fully account for the warning, the Q1 consensus likely doesn't either.
    • GoPro is halted. Video processor supplier Ambarella (NASDAQ:AMBA) has fallen to $35.10 after hours.
    • Results/guidance details: GoPro shipped 2M cameras in Q4, down 16.1% Y/Y. 66.6% of revenue was direct vs. 61.8% a year ago. Americas, EMEA, and Asia-Pac revenue all fell Y/Y.

      Non-GAAP gross margin, hurt in Q4 by a $30M-$35M charge and "price protection" actions, fell to 29.6% from 46.8% in Q3 and 48% a year ago. Q1 GM guidance is at 35% (+/- 100 bps), still well below Q1 2015's 45.2%. In spite of job cuts, non-GAAP opex is expected to be at $165M-$170M, up from $115.1M a year ago.

      1.5M shares have been repurchased through GoPro's buyback program at an average price of $23.05 (over 2x current levels). The company ended Q4 with $474M in cash and no debt.

      GoPro states its Q4 U.S. digital camera/camcorder share (per NPD) rose 180 bps Y/Y to 21.3%, and that its European digital imaging share rose 400 bps to 12%. The GoPro mobile app was downloaded 2.75M times, bringing cumulative downloads to nearly 24M.
    • GoPro's Q4 results, earnings release
    • Update (5:19PM ET): After coming off its halt, GoPro is down 9.8% after hours. Ambarella has pares its losses: Shares are now down 2.6%.
    • Update 2 (5:37PM ET): The post has been updated to include additional details about GoPro's results and guidance.
    | 4:42 PM | 42 Comments
  • 4:20 PM
     
    • Stocks staged a late turnaround in a volatile session, led by a 183-point gain for the Dow after falling as much as 193 points earlier, as an 8% surge in crude oil prices goosed beaten-down energy and materials companies.
    • The energy and materials sector indexes jumped 3.6% and 3.3%, respectively, as U.S. crude futures popped 8% to $32.28/bbl; however, financials (-0.1%), consumer discretionary (-0.3%) and tech (-0.4%) underperformed.
    • The dollar fell sharply vs. the euro and yen, as investors sold amid falling interest rates in the U.S. and continued nervousness about global growth.
    • Also, NY Fed President Dudley said financial conditions have tightened since December's rate increases and that additional strength from the dollar could have "significant consequences" for the U.S. economy.
    • Trading activity was in-line with recent averages, as more than 1B shares changed hands on the NYSE floor.
    • U.S. Treasury prices ended on their lows, with the yield on the 10-year benchmark note higher by 3 bps at 1.88%.
    | 4:20 PM | 3 Comments
  • 2:36 PM
    • Renewed chatter of talks between Russia and Saudi Arabia on production cuts seems as good of an excuse as any for oil's 7.3% gain today to $32.08 per barrel. USO +8.4%
    • The move comes despite the EIA reporting a big 7.8M barrel build in crude stocks.
    • Oil's moonshot has brought the XLE with it, and, in turn, the major averages. Down 1% earlier, the S&P 500 is higher by 0.1%, with the XLE up a full 2.2%.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, UGA, USL, DNO, UHN, OLO, SZO, OLEM
    | 2:36 PM | 110 Comments
  • 10:25 AM
    • This just in: The financial sector is having a worse go it this year than energy, with the XLF lower by 13.6% YTD vs. the XLE's 9% decline.
    • Leading a big reversal from this morning higher open is the XLF's 2% decline. The S&P 500 is now off 1%, and the XLE "just" 0.85%.
    • Among the issues for the financials are two items: 1) Hopes for a sustained rate hike cycle have been dashed, with the 10-year yield tumbling all the way to 1.82% currently from about 2.30% when the Fed hiked in mid-December. Fed speakers are all-of-a-sudden sounding very dovish (Dudley is the latest), and short-term rate futures are now pricing in just a 50% chance of even one Fed rate increase this year; 2) For lenders specifically, there's worry over their exposure to the crashing energy sector. No doubt better capitalized today than 10 years ago, losses are still losses even if they don't threaten the viability of the bank.
    • JPMorgan (JPM -2.6%), Wells Fargo (WFC -3.6%), Morgan Stanley (MS -3.5%), KeyCorp (KEY -3.1%), PNC Financial (PNC -2%), Comerica (CMA -2.7%), Schwab (SCHW -3.8%), MetLife (MET -2.5%)
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, PSCF, FINZ, KRS, XLFS
    | 10:25 AM | 16 Comments
  • 10:00 AM
     
    | 10:00 AM | 1 Comment
  • 9:45 AM
     
    • January US PMI Services Index: 53.2 vs.53.7 consensus, 54.3 in December.
    • The overall slowdown in January largely reflected a more subdued expansion of service sector activity, as manufacturing output rose at a slightly faster pace than December’s 26-month low.
    | 9:45 AM
  • 9:02 AM
     
    • Financial conditions today are "considerably tighter" than in December when the FOMC hiked says FRBNY President Bill Dudley. Were such conditions to persist into March (the time of the next FOMC meet), "we would have to take that into consideration." Translation: S&P 500 of 1,900 or lower equals no hike, S&P 500 of, say, 1,985 or higher equals hike.
    • The weakening global economy and stronger dollar, he says, could have "significant consequences" for the U.S. economy.
    • His remarks are considerably more dovish than a speech in mid-January in which he brushed aside the rough start to the year, and more-or-less promised the rate hike cycle would continue.
    | 9:02 AM | 21 Comments
  • 8:23 AM
    • January's private-sector job gain of 205K moderated from December's big 267K advance (revised from an originally reported 257K), but it beat expectations of 190K.
    • Job growth in the three months ended in January averaged 224K vs. 185K in the previous three months, and 199K in the three months prior to that. What's a central banker to do?
    • The 10-year Treasury yield remains higher by three basis points to 1.88%.
    • TLT -0.45%, TBT +0.9% premarket
    • Full ADP report
    • ETFs: TBT, TLT, TMV, TBF, EDV, TMF, TTT, ZROZ, TLH, SBND, VGLT, UBT, DLBS, TLO, LBND, DLBL, TYBS, VUSTX
    | 8:23 AM | 5 Comments
  • 8:16 AM
     
    • Jan. ADP Jobs Report: +205K vs. 190K consensus, 267K prior (revised).
    • Service sector contributed majorly by adding 192K jobs.
    | 8:16 AM | 19 Comments
  • 8:02 AM
    • BlackRock (NYSE:BLK) CEO Larry Fink pens an open letter to corporate CEOs here and in Europe urging them to focus on long-term value creation.
    • Echoing many of the points made by a certain presidential candidate, Fink notes S&P 500 dividends last year amounted to the highest proportion of earnings since 2009, and buybacks through the end of Q3 were 27% above year-ago levels. While supporting the return of excess cash to shareholders (they are the owners of the company, after all), Fink asks companies to adopt "balanced capital plans."
    • "We are asking that every CEO lay out for shareholders each year a strategic framework for long-term value creation. Additionally, because boards have a critical role to play in strategic planning, we believe CEOs should explicitly affirm that their boards have reviewed those plans."
    • As for quarterly earnings "hysteria," Fink isn't a fan. While still supporting the reporting of quarterly results, Fink asks companies to do away with forward guidance, and instead focus on demonstrating progress made toward fulfilling strategic plans.
    • Previously: Dimon and Buffett convene secret meetings on promoting long-termism (Feb. 2)
    • ETFs: SPY, SH, SSO, SDS, VOO, IVV, UPRO, SPXU, SPXL, RSP, SPXS, RWL, EPS, VFINX, BXUB, SPLX, SFLA, BXUC, SPUU, LLSP, RYARX
    | 8:02 AM | 16 Comments
  • 7:21 AM
    | 7:21 AM | 22 Comments
  • 7:13 AM
    • Lowe's (NYSE:LOW) announces it will acquire Canadian chain Rona for $2.3B.
    • The company expects the transaction to be accretive to earnings in the first year after closing.
    • Lowe's made a run at Rona four years ago, but was turned away.
    • LOW +0.22% premarket to $72.03.
    | 7:13 AM | 3 Comments
  • 4:08 AM
    • Japanese shares led losses across Asia today, amid ongoing volatility in the oil market, a stronger yen, and weak earnings from Nomura that hit brokerages.
    • The downturn also reflects fading expectations that the Bank of Japan will take supportive steps after its decision to introduce negative interest rates late last week.
    • Minutes released by the BOJ overnight showed an intense debate by board members over Friday's sub-zero measures.
    • Nikkei -3.2%. Hang Seng -2.3%. Shanghai -0.4%.
    • ETFs: DXJ, EWJ, DFJ, DBJP, NKY, JOF, EZJ, JEQ, JPNL, DXJS, EWV, SCJ, HEWJ, JSC, JPXN, JPP, QJPN, FJP, DXJT, JPMV, DXJR, DXJC, JHDG, DXJH, DXJF, JDG, JPNH, HGJP, HEGJ, JPN, FXJP, HFXJ
    | 4:08 AM | 9 Comments
  • Tuesday, February 2, 2016

  • 5:37 PM
    • Pacific Biosciences (NASDAQ:PACB) jumped into the close in the last hour, up 24.3%, on news that Roche Holding (OTCQX:RHHBY -2.3%) approached the firm to talk buyout, Reuters reports.
    • Price disagreement means the talks haven't advanced yet, sources said.
    • Roche's interest lies in Pacific Biosciences' advanced gene sequencing technology. The two formed a development/distribution partnership in 2013.
    • A deal in this area would show continued signs of life in life science M&A. Roche has been making small deals over the past year to fill out some therapeutic areas.
    | 5:37 PM | 1 Comment
  • 4:27 PM
    | 4:27 PM | 121 Comments
  • 4:14 PM
    • Gilead Sciences (NASDAQ:GILD) is up 1.7% after hours as it posted solid beats on the top and bottom line and authorized a new $12B stock repurchase plan.
    • Revenues were up 16.4% for the quarter and up 31% to $32.2B for the full year. EPS rose 56% for the full year, to $12.61.
    • Antiviral product sales came to $7.9B, up from $6.7B mainly due to launching HCV products in Japan and continuing rollouts in Europe despite a decline in the U.S.
    • Other product sales (including Letairis, Ranexa, AmBisome) came to $523M, up from $496M.
    • Cash and equivalents at year end was $26.2B.
    • Along with bumping its quarterly dividend by 10% starting in Q2, it declared a new $12B buyback program to commence at the close of its $15B program, authorized last January.
    • Press Release
    | 4:14 PM | 66 Comments
  • 1:03 PM
    • Digitmes reports Asian camera lens makers 'have sent dual-lens camera samples to Apple (AAPL -1.2%) for testing," and that Apple is reportedly planning to include a dual-lens camera within a next-gen iPhone.
    • Dual lenses can allow users to zoom in without diminishing imaging quality - one lens can be wide-angle, and the other a zoom lens - and also improve low-light performance. Most interestingly, they can also enable depth analysis, which in turn enables features such as 3D image capture, background removal, and automatic blurring.
    • The report follows Apple's purchase (reported last April) of LinX Computational Imaging, a startup that was working on multi-sensor camera modules promised to deliver SLR-like image quality, superior low-light shots, and the ability to simultaneously take multiple shots at different apertures.
    • Separately, 9to5 Mac reports Apple plans to hold its expected March event on the 15th (a Tuesday). In-line with past reports, 9to5 states Apple plans to reveal a new 4" iPhone (believed to be called the 5se and feature improved internals), an iPad Air 3, and an Apple Watch software/band update.
    • The Air 3 is expected to include (per 9to5) an improved camera and speakers, and a smart connector for attaching peripherals. Other reports have indicated the tablet will sport a 4K display and improved battery life.
    | 1:03 PM | 68 Comments
  • 9:58 AM
    • A big bounce in the price of crude oil at the end of January - which took the price of Texas Tea to nearly $35 per barrel from about $27 - is officially over. With today's 5% decline to back under $30, crude is lower by almost 12% in the first one day-plus in February.
    • Shocking no one, the XLE's 3.2% slump is leading the S&P 500's early 1.4% drop.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, UGA, USL, DNO, UHN, OLO, SZO, OLEM
    | 9:58 AM | 40 Comments
  • 9:50 AM
    • An early slump in equities and a resumption of the downtrend in oil has money pouring into Treasurys today, with the 10-year yield lower by a full seven basis points to 1.88% - a level not seen since April.
    • Thirty-day Fed Funds futures are now pricing in less than a 100% chance of even one rate hike this year.
    • TLT +1.2%, TBT -2.4%
    | 9:50 AM | 3 Comments
  • 9:40 AM
     
    • Among the attendees are top guys from BlackRock, Fidelity, Vanguard, and Capital Group. Among the subjects: Improving corporate governance and encouraging long-term thinking.
    • The meetings come at a time of increasing shareholder activism (Dimon himself has been a target) which typically calls for expense cuts and share buybacks. Folks like Michael Dell - who recently took his company private - argue stock markets are too focused on short-term gains.
    • According to the FT, the powerful group just met at JPMorgan's NYC offices, and first met this past August (in Southampton?).
    • Aside from this leak, the group may put a statement of best practice on corporate governance which would offer suggestions on director roles, executive compensation, board tenure, and shareholder rights. Any formal deliverable is still months away, according to the FT's sources.
    | 9:40 AM | 4 Comments
  • 9:15 AM
    • During the company's Q4 earnings call, Sirius XM (NASDAQ:SIRI) CFO David Frear noted the company cut back on buybacks in Q4 by about a third, "after the stock broke through resistance to the upside," but that the company took advantage of a January pullback.
    • The company repurchased almost $200M of stock during the month; "Leverage is still conservative" at about 3.3 times EBITDA "and we continue to have liquidity" to deploy more cash.
    • "I'm not inclined to drive our leverage to 4 times just on the stock buyback," Frear said, pointing to about $2B/year in capital return. "That's what you can expect unless we can find something cheaper to buy in the market."
    • As for spectrum shakeups going on this year: "We are not a seller of spectrum," says CEO Jim Meyer. "We're in the business of using spectrum."
    • "We're investing today -- today -- in chipsets that won't even go into vehicles until the end of this decade," he said. "Very clearly, we could use it for video" -- and subscribers are very interested in a deep library of Howard Stern video -- "very clearly, we could use it to have 300 channels or more of audio."
    • SIRI -1.9% premarket after Q4 earnings.
    • Previously: Sirius XM -1.9% after record revenues, in-line profits (Feb. 02 2016)
    • Previously: Sirius XM EPS in-line, beats on revenue (Feb. 02 2016)
    | 9:15 AM | 34 Comments
  • 3:04 AM
    | 3:04 AM | 24 Comments
  • Monday, February 1, 2016

  • 4:25 PM
     
    • Stocks clawed through morning losses to finish little changed, despite sharply lower crude oil prices and soft China manufacturing data.
    • The session saw a divergence with the recent close correlation of stocks and oil, as the major indexes bounced nicely off their lows despite a 6% drop in U.S. crude oil futures to $31.62/bbl.
    • "What people are keying into now is continued incremental easing around global central banks, even incremental easing by the Fed...almost to the point that weak economic statistics, if they're not shockingly weak, could mean the Fed (will not) tighten as much," says Ben Pace, chief investment officer at HPM Partners.
    • Utilities closed 1% higher to lead S&P sectors, followed by telecom, while energy was easily the day's largest loser (-1.9%).
    • Today's participation was a bit below recent averages, with less than 1B shares changing hands at the NYSE floor.
    • Treasury prices ended near their lows as stocks rallied; the yield on the benchmark 10-year note ended higher by 3 bps at 1.95%.
    | 4:25 PM | 2 Comments
  • 3:56 PM
    • With the DirecTV acquisition in the rear-view mirror and long-term video consolidation plans under way, AT&T (T +0.5%) today is reshuffling execs to address the convergence of video and mobile.
    • Ralph de la Vega, previously chief of mobile, is becoming vice chairman and taking over business and international units, while John Stankey (Internet and TV) is becoming CEO of the entertainment group, and adding mobility to his responsibilities there.
    • De la Vega will continue to run Mexico's wireless unit and will take over DirecTV's Latin American operations from Stankey, while Stankey will take over consumer aspects at the company.
    • Both men will report to CEO Randall Stephenson. Glenn Lurie, who was made chief of the mobility business in 2014, will report to Stankey.
    | 3:56 PM
  • 2:30 PM
    • "Silver Lake has no interest in acquiring even a slice of Twitter (TWTR +4.9%)," a source tells Fortune.
    • Twitter, up over 11% at one point this morning, has pared its gains following Fortune's report. The Information previously reported Mark Andreessen and Silver Lake had "considered some sort of deal" involving Twitter, while qualifying its report by adding it doesn't know if "anything is active."
    • Twitter remains just ~$2 above a Jan. 20 post-IPO low of $15.48. Q4 results arrive in nine days.
    | 2:30 PM | 29 Comments
  • 2:15 PM
    | 2:15 PM | 23 Comments
  • 11:20 AM
    • Ahead of Tuesday afternoon's Q4 report, the WSJ reports Yahoo (YHOO -1%) plans to unveil a cost-cutting plan (in tandem with the report) that includes shuttering several business units and laying off up to 15% of its workforce. Business Insider reported in January Yahoo is planning to cut at least 10% of its workforce.
    • The WSJ's report comes three months after one from Re/code stating Yahoo, which has already carried out multiple job cuts amid ongoing display ad revenue pressures/share loss - has hired McKinsey to help decide which businesses to keep or sell. Headcount was at 10.7K as of Yahoo's most recent quarter, down from a peak of 14K.
    • The WSJ observes a restructuring could help Yahoo look more appealing to a potential acquirer, as well as fend off activists calling for job cuts and critical of Marissa Mayer's performance. Reuters has reported Yahoo has turned down offers from P-E firms and others for its core business. The WSJ's sources state Yahoo's board "has put off any serious [buyout] talks for now."
    | 11:20 AM | 23 Comments
  • 10:25 AM
    • The PMI edged up to 48.2 in January from 48 in December, but remained at a level signalling an overall decline in manufacturing activity.
    • New Orders and Production, however, both rose above 50.
    • Employment fell to 45.9 from 48. Supplier deliveries rose to 50 from 49.8, and Backlogs rose to 43 from 41.
    • Prices remained at 33.5.
    • Already higher ahead of the report, the 10-year Treasury yield remains up by three basis points to 1.95%. TLT -0.4%, TBT +0.8%
    | 10:25 AM
  • 10:01 AM
     
    • Jan. ISM Manufacturing Index: 48.2 vs. 48.3 consensus and 48.2 prior.
    • New orders 51.5 vs. 49.2
    • Production 50.2 vs. 49.8
    • Employment 45.9 vs. 48.1
    | 10:01 AM | 3 Comments
  • 9:46 AM
     
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