All Market News

  • Today - Tuesday, October 23, 2018
    • Allegheny Technologies (ATI -3.8%) reports Q3 sales increase 17% to $1.02B, with High Performance Materials & Components sales +14.2% to $585M and Flat Rolled Products revenues increase 22% to $435M
    • Gross margin expands ~360bps to 15.7%; operating margin improves from 6.3% to 10.3%.
    • For HPMC segment, the company reaffirms FY18 segment operating profit margin improvement of ~300 bps Y/Y.
    • Amid price declines in several key raw materials, resulting in short-term mismatch between input costs and surcharge index pricing mechanism, ATI expects weaker Q4 FRP segment results; however, anticipates operating margin improvement of 150 to 300bps Y/Y.
    • Expects to generate at least $150M of free cash flow for FY18, as well as anticipates to end 2018 with zero borrowings under ABL revolving credit facility.
    • Previously: Allegheny Technologies misses by $0.02, beats on revenue (Oct. 23)
    • JPMorgan is “a bit more cautious” ahead of Amazon’s (AMZN -3.3%) earnings results happening after the market closes on Thursday.
    • The firm cites potential headwinds from Amazon’s recent $15/hour minimum wage increase and the prospect for higher shipping costs under a proposed U.S. Postal Service rate change, which could put pressure on margins.
    • Positive trends include growth in advertising and web services, opportunities from grocery and healthcare, and Prime subscriber adds despite price increases.
    • Firm reiterates an Overweight rating with a “top pick” status and a $2,200 price target.
    • Source: Bloomberg First Word. 
    • Previously: Amazon, FedEx, and UPS drop on proposed USPS price increase (Oct. 11)
    • Previously: Amazon sets $15 minimum wage for all U.S. employees (Oct. 2)
    • Pentair (PNR +0.3%) reports Q3 with EPS and revenue beats.
    • The company expects Q4 adj. EPS of $0.59, excluding non-recurring items, vs. a consensus of $0.59; Q4 revenue of ~$736M vs. a consensus of $733.6M.
    • PNR expects 2018 Adj. EPS of ~$2.33 vs. a consensus of $2.31.
    • Previously: Pentair beats by $0.02, beats on revenue (Oct. 23)
    • Investors are showing some anxiety with U.S.-focused casino stocks ahead of earnings reports from the group.
    • They may be taking their cues from Telsey Advisory analyst Brian McGill, who warned today in a note that channel checks imply weakness in Las Vegas.
    • Notable decliners: Eldorado Resorts (NASDAQ:ERI) -5.0%, Golden Entertainment (NASDAQ:GDEN) -4.9%, Penn National Gaming (NASDAQ:PENN) -4.5%, MGM Resorts (NYSE:MGM) -4.0%, Caesars Entertainment (NASDAQ:CZR) -2.9%, Century Casinos (NASDAQ:CNTY) -2.3%.
    • Related ETF: BJK.
    • A number of selling stockholders have filed to offer shares of ANGI Homeservices (ANGI -1.5%) in a shelf registration.
    • More than 7.48M shares are registered for a maximum offering price of $143.06M.
    • Prominent among the selling holders are entities affiliated with FMR (who hold about 3.3%), those affiliated with General Catalyst (just over 2%), those affiliated with Highland Capital Partners (with 1.8%) and Revolution Growth II (just over 1.8%).
    • After the offering, FMR would trim its stake to 1.53% while the rest would exit.
    • Wells Fargo (WFC -0.4%) says it will commit more than $1.6B in lending and philanthropy over five years to Washington, DC, neighborhoods.
    • The bank, in collaboration with the National Community Reinvestment Coaltion and local organizations, creates the Where We Live campaign to increase economic opportunity across the city.
    • The program will triple Wells Fargo's community giving and concentrate resources on the biggest needs identified by community leaders--affordable housing, small business, and job skills, the company said.
    • Previously: Banks see customers pull billions from accounts that don't pay interest: WSJ (Oct. 22)
    • Iamgold (IAG +3.9%) says a new feasibility study for its Boto gold project in Senegal shows significant economic and operational improvement compared to results from February's pre-feasibility study.
    • IAG says the study outlines an economically “robust” project, which would produce 140K oz./year on average for nearly 13 years, at a life-of-mine cash cost of $714/oz. and all-in sustaining costs of $753/oz.
    • IAG says Boto's proven and probable reserves have increased by 510K oz. to 1.93M oz. compared with the February pre-feasibility study, grading 1.71% gold.
    • The new feasibility study would be used to support an application for a mining concession to be submitted in Q4, with approval expected in H1 2019.
    • Lyft (LYFT) will acquire London-based AR startup Blue Vision Labs for about $72M with an additional $30M on the table for milestones, according to TechCrunch.
    • Blue Vision tech uses street-level images using basic smartphone cameras to build collaborative, interactive AR layers. The startup raised $17M in private funding with backers including GV, Accel, and Horizons Ventures.
    • The Blue Vision tech and team will join Lyft’s Level 5 autonomous car division.  
      *In other Level 5 news, the ride-hail company will also launch its first Ford (NYSE:F) car from the self-driving imitative. The Ford Fusion Hybrid will hit city streets “soon.”
    • Lyft (and competitor Uber) plans to go public sometime next year.
    • Previously: WSJ: Lyft eyes first-half IPO at $15B-plus valuation (Oct. 16)
    • Previously: Bloomberg: Lyft seeking formal proposals from banks for 2019 IPO (Oct. 9)
    • Post updated to correct the acquisition price.
    • GATX (GATX -7.4%) reported Q3 revenue of $349.7M, a decrease of 2.8% Y/Y.
    • Revenues by Segments: Rail North America $233M (-3.7% Y/Y); Rail International $54.1M (+3.4% Y/Y); Portfolio Management $3.4M (-27.7% Y/Y) and American Steamship company $58.8M (-2.3% Y/Y).
    • Rail North America fleet utilization was 99.2% at end of Q3; Lease Price Index was negative 11%; avg. lease renewal term was 33 months and investment volume was $129.1M. Fleet of ~119,000 railcars, including ~16,000 boxcars.
    • Rail International: GRE’s fleet consisted of ~23,000 railcars and fleet utilization was 98.4% at end of Q3.
    • ASC carried 8.7M net tons of cargo in the third quarter of 2018, compared to 9.8M net tons in the prior year period.
    • FY18 Guidance: EPS of $4.9-5.1
    • Previously: GATX beats by $0.15, misses on revenue (Oct. 23)
    • eXp World Holdings' (EXPI -1.3%) residential real estate brokerage unit agrees to acquire ShowMeNow, an on-demand home tour app that allows home shoppers to request immediate access to properties they're interested in.
    • The new ShowMeNow mobile app will be able available for beta testing in the Q1 2019 in select markets, exclusively for eXp Realty agents.
    • Terms of the deal weren't disclosed.
    • Previously: eXp World Holdings down 2.9% despite strong Q2 results (Aug. 13)
    • Centene (CNC -8.2%) slumps on more than 50% higher volume following its Q3 results released this morning. Revenue and non-GAAP EPS beat consensus, but GAAP EPS fell short.
    • The company updated its 2018 guidance, modestly raising its outlook for revenue but lowering the upper ranges for GAAP and non-GAAP EPS.
    • Another factor pressuring shares was its health benefit ratio of 86.3%, within its previously announced range for the year (85.9 - 86.4%) but above Q2's 85.7% and Q1's 84.3%, implying a negative trend.
    • Previously: Centene beats by $0.02, beats on revenue (Oct. 23)
    • Previously: Centene Q3 revenues up 40%; non-GAAP EPS up 33%; raises lower end of guidance (Oct. 23)
    • Las Vegas Sands (LVS -3%) reports earnings tomorrow after the closing bell.
    • Analysts expect the casino operator to report revenue of $3.41B, consisting of $2.1B out of Macau, $774M from the Marina Bay Sands property and $411M from Vegas operations.
    • Property EBITDA of $1.29B and EPS of $0.81 is also anticipated.
    • Options trading on LVS implies a 5% move for shares up or down after the report drops, a bigger move than average. LVS is down 29% since the last time the casino operator reported earnings amid a broad downturn in the Macau casino sector. As one of the first Macau-focused names to report, the numbers from Las Vegas Sands could impact Wynn Resorts (NASDAQ:WYNN) and Melco Resorts & Entertainment (NASDAQ:MLCO) as well.
    • Uber (UBER) plans to extend UberEats food delivery to 70% of the U.S. population by the end of the year, a 50% increase from the current availability.
    • The company is working to strengthen its core businesses ahead of next year’s IPO.  
    • Competitor GrubHub (NYSE:GRUB) is down 3.8%.  
    • Previously: Uber plans to go all-electric in London (Oct. 23)
    • B2Gold (BTG +4%) is higher after reporting positive results from an expansion study of its El Limon Mine in Nicaragua and is considering a $35M investment to increase production at the mine.
    • BTG says the expansion study indicates that increasing plant capacity to 600K metric tons/year from 485K and adding a third stage of milling to achieve a fine grind would result in a much longer mine life with significantly higher gold production and lower operating costs.
    • The study estimates yearly production would increase to ~75K oz./year in 10 years of underground and open pit mining with 18K oz./year of gold that could be processed from tailings thereafter; combined, El Limon would deliver 985K oz. of gold over 21 years.
    • Wheeler REIT (NASDAQ:WHLR) climbs 2.7% after selling two non-core assets for about $7.46M and using the proceeds to pay down $4.5M of property-level debt and $1.6M of a loan.
    • Earlier this month, the REIT fended off a proxy fight by Stilwell Group, an activist investor which sought to replace three of Wheeler's eight directors.
    • Wheeler sold Eagle Harbor, a 23,303-square-foot strip center in Carrollton, VA, for $5.7M at an 8% capitalization rate and Chartway Federal Credit Union building, a 3,620-square-foot single-tenant net leased asset in Virginia Beach, VA, for $1.75M at a 6.9% capitalization rate.
    • Balance on Revere loan has been cut to $1.3M from $6.8M at the beginning of the year.
    • Previously: Wheeler REIT reports all eight company directors re-elected (Oct. 9)
    • Quest Diagnostics (DGX -7.1%) is down on modestly higher volume following its Q3 report that featured a $60M revenue miss and lowered 2018 revenue guidance.
    • Sell-side bull Ross Muken of Evercore (OUTPERFORM/$118), in typical after-the-fact fashion, says the selloff is merely a hiccup considering M&A potential and its contract with UnitedHealthcare, adding that management believes they will have a strong 2019. He also cites the $100M in repurchased shares in Q3.
    • Jefferies' Brian Tanquilut (HOLD/$110): revenue miss and lowered guidance will "prove disappointing to investors."
    • Previously: Quest Diagnostics EPS in-line, misses on revenue (Oct. 23)
    • Previously: Quest Diagnostics Q3 revenues up 2%; non-GAAP EPS up 24%; updates guidance (Oct. 23)
    • Dow -1.71%.
    • 10-yr +0.49%.
    • Euro +0.04% vs. dollar.
    • Crude -2.54% to $67.41.
    • Gold +1.16% to $1,235.5
    • Bitcoin -0.02% to $6,562.0
    • Arch Capital's (ACGL -0.9%) U.S. mortgage insurance operation gets $506.1M of indemnity reinsurances from Bellemeade Re 2018-3 Ltd., a special purpose reinsurer.
    • The transaction covers a portfolio of mortgage insurance policies issued by Arch MI and affiliates primarily during H1 2018.
    • Bellemeade Re 2018-3 Ltd. is funding its reinsurance obligations through the issuance of four classes of amortizing notes with 10-year legal final maturities. This insurance-linked security transaction provides Arch MI with collateralized coverage from Bellemeade Re 2018-3 Ltd. for potential losses on a portion of its MI portfolio.
    • YTD, Arch MI accessed capital markets three times for risk-transfer transactions involving its MI portfolio, gaining $1.53B of reinsurance protection for loans representing more than $136Bof unpaid principal balance.
    • Previously: Arch Mortgage Insurance doesn't see significant impact from PMIERS 2.0 (Oct. 5)
    • Wolfe Research thinks Cooper Tire & Rubber (CTB +1%) may "meaningfully" beat estimates after the firm factors in the read-through from the America Tire Distributors bankruptcy filing.
    • The filing indicated that Cooper was American Tire's second largest OEM creditor in a sign that it made market share gains during the quarter.
    • The new revelation isn't enough to knock Wolfe off its Underperform rating on CTB.
    • Ten more attorneys general are seeking access to the docket on the proposed Sprint/T-Mobile Merger, the FCC says.
    • Those officials (in Alabama, Connecticut, Florida, Hawaii, Mississippi, Tennessee, Virginia, Washington, and Wisconsin, along with the District of Columbia) would join New York and California in looking into information about mobile carrier records.
    • The notice gives the two carriers the chance to contact the AGs on the matter.
    • Amid a down market, Sprint (NYSE:S) is down 1.9% today; T-Mobile (NASDAQ:TMUS) is down 2%.
    • Source: Bloomberg
    • RH (NYSE:RH) is up 1.0% on a down market day after catching an initiation from Wedbush at an Outperform rating.
    • Wedbush jumped in with its bullish call after seeing RH fall off 11% yesterday without any major catalyst in sight. The firm's analyst team points to RH's "powerful" membership model and "strong" pricing power.
    • Analyst scorecard on RH: 9 Buy-equivalent ratings, 11 Hold-equivalents ratings, 2 Sell-equivalent ratings.
    • Exxon Mobil (XOM -2.2%) and Russia's Rosneft (OTCPK:RNFTF) plan to build a $15B liquefied natural gas plant in a consortium with Indian and Japanese partners, Reuters reports.
    • The four companies - XOM, Rosneft, Japan’s SODECO and India’s ONGC Videsh - are partners in the Sakhalin-1 group of fields that would supply the gas, but XOM and Rosneft initially had planned to build the LNG plant without the other consortium members.
    • As well as spreading the costs among more stakeholders, the broader involvement of the participants may mitigate sanctions risk, according to the report.
    • Leading the rouged-up homebuilders today is Pulte Group (PHM +5.3%), which topped Q3 estimates. New orders were shy of official Street expectations, but - amid growing concerns of a rate-related housing slowdown - probably topped the whisper numbers.
    • Speaking of rates, they're down big today - the 10-year Treasury yield off seven basis points to 3.127%.
    • Toll Brothers (TOL +0.6%), Lennar (LEN +1%), D.R. Horton (DHI +0.4%), LGI Homes (LGIH +2.7%), M/I Homes (MHO +1.9%), KB Home (KBH)
    • ETFs: XHB, ITB, PKB, NAIL, HOML, CLAW
    • Previously: Stocks bushwhacked as Caterpillar, 3M earnings disappoint (Oct. 23)
    • AudioCodes (AUDC +11.5%) trades up 11.5% after reporting Q3 revenue growth of 13.5% Y/Y to $44.52M.
    • Service revenues increased by 10.8%Y/Y to $14.1M & revenues related to UC-SIP business increased more than 30% Y/Y.
    • Adj. gross margin was 62.7%.
    • Adj. operating margin was 13.5%.
    • Repurchased ~133K of its ordinary shares at an aggregate cost of $1.1M.
    • Declared an annual cash dividend of 0.20/share, in the aggregate amount of $5.8M, was paid on August 20, 2018.
    • Previously: AudioCodes beats by $0.07, beats on revenue (Oct. 23 2018)
    • A Phase 2 clinical trial evaluating BeyondSpring's (BYSI -4%) Plinabulin, combined with Amgen's (AMGN -1.9%) Neulasta (pegfilgrastim), for the prevention of chemo-induced neutropenia (CIN) low and bone pain demonstrated a treatment effect.
    • 50% of patients receiving high-risk TAC (docetaxel, doxorubicin and cyclophosphamide) chemo who also received Plinabulin + Neulasta experienced grade 3 (serious) or grade 4 (life-threatening) neutropenia compared to 81% who received Neulasta only (p=0.0456). Duration of grade 3/4 neutropenia was 0.94 days in the Plinabulin group compared to 1.38 days for the Neulasta-only group.
    • 6% of patients receiving Plinabulin + Neulasta experienced at least one day of bone pain compared to 95% who received Neulasta alone (p<0.0001).
    • Plinabulin is a marine-derived small molecule that contributes to the prevention of neutropenia by activating a protein called GEF-H1 that plays a key role in signaling pathways affecting the levels of neutrophils.
    • Neutropenia is an abnormally low level of neutrophils (a type of white blood cell that plays a key role in fighting infections) in the blood.
    • The current standard of care for treating CIN is G-CSF agents like Neulasta or Neupogen (filgrastim), but they are associated with bone pain and do not eliminate the risk of grade 3/4 neutropenia.
    • Shares are down 4% but only on ~7,300 shares.
    • First Financial Corporation (NASDAQ:THFF): Q3 GAAP EPS of $0.92 beats by $0.03.
    • Revenue of $37.74M (+5.9% Y/Y) misses by $0.56M.
    • Press Release
    • Fifth Third Bancorp (NASDAQ:FITB) gains 0.8% in midmorning trading as the broader market sags.
    • "Although market dynamics remained challenging during the quarter, our net interest margin increased and we generated solid loan, deposit, and household growth," says Chairman, CEO and President Greg D. Carmichael.
    • The bank posts Q3 non-GAAP EPS of 64 cents, beating consensus by a penny, and says it's on track to achieve long-term financial targets for ROTCE, ROA, and efficiency ratio under its Project NorthStar.
    • Q3 fully taxable-equivalent net interest income of $1.05B increases from $1.02B in Q2 and $977M a year ago; FTE net interest margin 3.23%, up 2 basis points from Q2 and up 16 bps from Q3 2017.
    • Q3 average portfolio of loans and leases increases to $93.2B from $92.6B in Q2 and $91.9B in Q3 2017; average deposits of $104.7B compares with $103.9B in Q2 and $101.8B in Q3 2017.
    • Q3 net charge-off ratio of 0.30% compares with 0.41% in Q2 and 0.29% in the year-ago quarter.
    • Q3 efficiency on FTE basis 62.6% vs. 58.7% in Q2 and 38.4% in Q3 2017.
    • FITB has received necessary shareholder approvals for its MB Financial (NASDAQ:MBFI) acquisition and still sees completing the transaction in Q1 2019.
    • Previously: Fifth Third Bancorp beats by $0.01, misses on revenue (Oct. 23)
    • EbixCash (NASDAQ:EBIX) acquires a 67% stake in Indian trucking logistics B2B marketplace Routier for undisclosed terms.
    • Routier clients include Coca-Cola and Samsung, and small trucking companies account for 75% of the freight transportation business.  
    • Ebix shares are down 3.3% to $57.42.  
    • Farfetch (NYSE:FTCH) is down 9.6% to trade at its lowest level in two weeks.
    • Shares have slipped back below the $20 mark where the IPO was priced on September 21 and stand about 29% below the price target doled out by Deutsche Bank a week ago.
    • U.S. WTI crude oil -2.6% to $67.56/bbl and Brent -2.3% to $78.01/bbl after Saudi Arabia said it could supply more crude quickly if needed.
    • Saudi Energy Minister Khalid al-Falih told a conference in Riyadh that the oil market was in a “good place” and the kingdom would "continue with the mindset we have now, which is to meet any demand that materializes to ensure customers are satisfied."
    • "Saudi Arabia's energy minister has dealt a fresh heap of bearish fodder onto the energy complex," quipped PVM Oil analyst Stephen Brennock.
    • Falih said he would not rule out the possibility that Saudi Arabia would produce 1M-2M bbl/day more than current levels in future, and Saudi Aramco head Amin Nasser said it would take only three months to reach maximum production capacity of 12M bbl/day if needed.
    • Oil and gas names are broadly and sharply lower: XOM -2.5%, CVX -3%, RDS.A -2.8%, BP -2.8%, COP -4%, PSX -4.6%, VLO -5%, PXD -3.9%, EOG -4.3%, DVN -3.7%, APA -4.5%, APC -3.8%, MRO -6.2%, MPC -6.8%, HES -4.2%, SWN -3.3%, SLB -3.2%, HAL -4.1%, BHGE -3.4%, KMI -3.6%, EPD -3.2%, CHK -2.8%.
    • ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, ERYY, ERGF, OILD, OILU, USAI
    • Superior Energy (SPN -6.1%) reports Q3 sales +13.2% to $573M primarily driven by Drilling, as well as Onshore & production segments, which was partially offset by Technical division.
    • Sales by segments: Drilling Products & Services: $99M (+28.5%); Onshore:$294.9M (+%); Production Services: $105.8M (+8.8%); Technical Solutions: $73.1M (-12%)
    • The company says demand from US land customers has grown steadily since 2H 2016, resulting in expansion in oil field service industry capacity; however growth in the Permian Basin paused, resulting in near-term oversupply of hydraulic fracturing capacity impacting pricing and fleet utilization.
    • EBITDA margin expanded ~490bps to 17.4%; operating loss narrowed to $0.11M as compared to $45.3M
    • Previously: Superior Energy misses by $0.01, beats on revenue (Oct. 22)
    • UBS maintains a Neutral rating on Nvidia (NASDAQ:NVDA) but lowers the target from $285 to $260.
    • The firm thinks the gaming ramp could prove more elongated than consensus expects.
    • Source: StreetAccount.
    • Nvidia shares are down 5.6% to $218.20.
    • Post title updated to reflect that Nvidia's drop is also due to the 2.4% drop for the Nasdaq.
    • Oracle (NYSE:ORCL) buys cloud-based AI data engine company DataFox for undisclosed terms. The acquired tech will enhance Oracle Cloud Applications.
    • DataFox’s data engine continually extracts detailed company-level data from over 2.8M public and private businesses. The company adds 1.2M businesses annually.
    • DataFox raised $19M at a $33M valuation in January 2017. Backers included Slack, GV, and strategic investor Goldman Sachs.  
    • In other Oracle news, Needham initiates ORCL at Hold alongside Red Hat (NYSE:RHT), which gets a Buy rating and a $183 price target. (Source: StreetAccount). 
    • Oracle shares are down 0.7% to $47.62. Red Hat shares are down 1.4% to $120.20.  
    • McDonald's (MCD +6.1%) is far and away the biggest gainer on the retreating Dow after a strong earnings report.
    • Analysts are pointing to the operating margin beat and tight G&A expense control by the restaurant company, while the near-miss on the U.S. comparable sales isn't creating any ripple of anxiety.
    • Shares of McDonald's are trading at their highest level since January.
    • Previously: McDonald's beats by $0.11, beats on revenue (Oct. 23)
    • Previously: McDonald's higher after strong global comp (Oct. 23)
    • State Street (STT -4%) expands its New Economy Sector ETF lineup, adding ETFs for space and deep sea travel, clean energy, and a new economy composite.
    • SPDR Kensho Final Frontiers ETF (XKFF) seeks to provide exposure to the commercialization of space and deep sea travel and exploration.
    • SPDR Kensho Clean Power ETF (XKCP) focuses on the clean power industry in both generation and underlying technology.
    • SPDR Kensho New Economics Composite ETF (KOMP) seeks to track an index that combines 16 new economy industries, ranging from 3D printing to genetic engineering.
    • Kensho Technologies uses alternative data and artificial intelligence to identify and analyze large amounts of data from companies developing products and services driving the new economy.
    • Previously: Schwab may start a no-fee index fund for retail clients: Credit Suisse (Oct. 19)
    • HealthStream (HSTM -3.9%) Q3 results: Revenues: $59.9M (+9% Y/Y); Workforce Solutions: $49.1M (+10.1% Y/Y).
    • Net Income: $3M (+20% Y/Y); Non-GAAP Net Income: $3.6M (+38.5% Y/Y); EPS: 0.09 (+12.5 Y/Y%); CF Ops (9 mo.): $28.8M (-19.3% Y/Y).
    • ~4.827M subscribers implemented for use, 4.852M contracted to use subscription-based solutions.
    • 2018 Guidance: Total revenue growth: 6-8%; revenue growth in Workforce Solutions:  4-6%; revenue growth in Provider Solutions: 10-20%; operating income to increase 45-60%; Capex of $19M.
    • Previously: HealthStream beats by $0.01, beats on revenue (Oct. 22 2018)
    • In an update to their push for monetizing mid-band satellite spectrum, the C-Band Alliance suggests some 200 MHz of airwaves might be cleared for use by others.
    • That's more than previously expected.
    • The group, which includes Intelsat (I -1.5%), Eutelsat (EUTLY +0.5%), SES (SGBAF -1.1%), Telesat and Intel (INTC -2.4%), has been promoting taking the spectrum and repurposing it for 5G terrestrial use by wireless carriers.
    • The airwaves could be cleared within 18-36 months of a final FCC order, assuming full adoption of its proposal, the Alliance says.
    • Previously: Goldman Sachs cautious on Intelsat (Oct. 22 2018)
    • Previously: European satellite firms form mid-band clearinghouse (Oct. 01 2018)
    • Hexcel (HXL -6%) reported Q3 sales growth of 10% Y/Y to $540.5M, with Composite Materials sales +8.5% Y/Y to $432.8M and Engineered Products +16.3% Y/Y to $107.7M.
    • Sales by Markets: Commercial Aerospace $373.1M (+5.8% Y/Y); Space & Defense $90.4M (+9.3% Y/Y) and Industrial $77M (+37% Y/Y).
    • Q3 Margins: Gross declined by 110 bps to 26.5% and Adj. operating declined by 20 bps to 17.9%.
    • Segment Operating margins: Composite Materials 20.6% a decline of 110 bps, and Engineered Products 14.4% an improvement of 130 bps.
    • Free cash flow for the first nine months was $128.2M compared to $87.2M a year ago.
    • Company’s Total debt, net of cash was at $942.8M as of September 30 2018.
    • Company used $102M to repurchase shares of its common stock during the quarter. The remaining authorization under the share repurchase program at September 30, 2018 was $460M.
    • FY18 Guidance: Sales $2.14-2.2B (prior was $2.1-2.2B); Adj. EPS of $2.99-3.07 (previously $2.96-3.1); FCF +$230M and Capex $170-190M.
    • Previously: Hexcel beats by $0.02, misses on revenue (Oct. 22)
    • Previously: Hexcel declares $0.15 dividend (Oct. 22)
    • Bloomberg reports that Netflix's (NFLX -3.3%) $2B bond offer is oversubscribed.
    • Sources say investors have shown a slight preference for the bonds denominated in euros over dollars.
    • The latest bond issue by Netflix has been closely watched to see if the low credit agency ratings would impact demand.
    • CASI Pharmaceuticals (CASI -0.7%) has acquired a U.S. FDA-approved abbreviated new drug application from Laurus Labs Limited (India).
    • The drug, tenofovir disoproxil fumarate, is indicated for the treatment of hepatitis B virus.
    • As part of the transaction, CASI will make certain upfront and milestone payments in different phases.
    • New Age Beverages (NASDAQ:NBEV) is down 12.1% in morning trading as the broad sell-off in marijuana names encapsulates the stock again.
    • Shares of New Age are now down 33% over the last week.
    • Previously: Pot stocks poised to continue selloff (Oct. 23)
    • Tesla (NASDAQ:TSLA) is up 6.4% on the day and traded as high as $278.96 earlier.
    • Underpinning the rally, Citron Research has rattled some cages with a reversal to a long view on Tesla for this quarter.
    • The firm, which by the way is still suing Tesla over Musk's tweets, thinks demand for Tesla vehicles is "pulling directly" from competitors, including the likes of Honda and Toyota. Citron also observes that there is no Tesla killer out there that it can clearly see.
    • Finally, there's that bit about Tesla moving up their earnings day to October 24 (tomorrow). "Does anybody think that Tesla decided to move up its earnings release date because of bad news?," asks Citron.
    • Full Citron report (.pdf)
    • Previously: Tesla rallies with Citron a long (Oct. 23)
    • Stocks plunge following disappointing earnings from some blue-chip companies and renewed selling in China's stock market; Dow -2%, S&P -2.1%, Nasdaq -2.5%.
    • Caterpillar -9.2% despite narrowly beating earnings estimates and reaffirming guidance, as investors were spooked by its outlook for rising costs; CAT already was more than 15% for the month.
    • Meanwhile, 3M -7.7% after reporting below-consensus top and bottom lines and lowering its earnings guidance as sales growth receded across most of its business lines.
    • Looking abroad, China's Shanghai Composite surrendered some of its recent rally, closing -2.3%, and Japan's Nikkei ended -2.7%; major European markets are sharply lower, with Germany's DAX -2.1%, France's CAC -1.5% and U.K.'s FTSE -0.9%.
    • "We just look like we're getting further away from a deal with China," says Art Hogan, chief market strategist at B. Riley FBR. "The ramifications of a prolonged trade ware are really seeping into investors' minds right now. I think we're coming to a capitulation point."
    • The energy sector (-2.4%) leads the broad-based retreat, with industrials (-2.6%), tech (-2.2%) and materials (-1.9%) also lagging; only utilities (+0.3%) is in positive territory.
    • U.S. WTI crude oil -2.7% at $67.46/bbl, and gold +1.2% at ~$1,240/oz., its highest level since July.
    • Meanwhile, the demand for U.S. Treasurys has pushed yields lower, with the benchmark 10-year yield dropping 6 bps to 3.13%.
    • The European Commission clears HP’s (NYSE:HPQ) acquisition of UK-based print service management company Apogee, finding that the companies had “very limited” overlap and strong players would remain in the market after the merger.
    • The £380M acquisition was announced in August. The deal is expected to close by the end of the year. After the close, Apogee will operate as an independent subsidiary. 
    • HP shares are down 3.2% today amid general hardware weakness following Susquehanna downgrades.  
    • Previously: Enterprise hardware and memory stocks fall on Susquehanna cuts (Oct. 23)
    • Previously: HP acquires office equipment dealer for £380M (Aug. 1)
    • Canada Jetlines (OTCQB:JETMF +1.4%) has announced an exclusive Airbus A320 pilot training agreement with global aviation training leader CAE (CAE -1.4%).
    • Starting in the first half of 2019, CAE instructors will train Jetlines' pilots at CAE’s training center in Montreal using the latest training equipment suite.
    • In addition, the airline’s pilots will have access, on-site and remotely, to the most advanced training material, leveraging Pelesys, a CAE company, for Airbus A320 comprehensive ground-school training solutions
    • The FDA accepts for review Xeris Pharmaceuticals' (XERS -0.3%) marketing application seeking approval for a ready-to-use, room temperature-stable liquid glucagon auto-injector for the treatment of severe hypoglycemia (low blood sugar).
    • The agency's action date is June 10, 2019.
    • Dow -1.52%.
    • 10-yr +0.47%.
    • Euro -0.03% vs. dollar.
    • Crude -2.24% to $67.62.
    • Gold +1.50% to $1,239.8
    • Bitcoin -1.26% to $6,563.5
    • Ping An Insurance (OTCPK:PNGAY -1.4%) and Merian Global Investors (NASDAQ:UK) sign an MOU in an effort to explore business development opportunities in fund distribution, marketing, and investment advisory, including knowledge sharing and trading.
    • The MOU follows an earlier agreement under which management of Merian China Equity Fund was outsourced to Ping An Asset Management (Hong Kong).
    • Previously: Ping An mulling rival offer for China Biologic (July 10)
    • Lion Point Capital discloses a 16.9% active stake including swap agreements in Resolute Energy (REN -3.3%) and says it has engaged in discussions with the company on strategies to enhance shareholder value, including a potential sale.
    • Lion Point says REN "should promptly and fulsomely explore strategic interest, rescind the shareholder rights plan, engage in a comprehensive strategic review and begin discussions with shareholders over changes in the size and composition" of the company's board.
    • Kimmeridge Energy, which owns 9.7% of REN shares, last week called on the company to explore a sale or merger and threatened to seek new board members.
    • Innovus Pharmaceuticals (OTCQB:INNV +5.4%) announces the establishment of Medicare reimbursement for its GlucoGorx Blood Glucose Monitoring System and GlucoGorx Blood Glucose Test Strip.
    • Xunlei Limited (XNET -3.5%) has signed a strategic deal with the venture-capital wing of People's Daily Online to promote the blockchain.
    • Xunlei and People Capital will set up a technology innovation lab as part of the latter's Blockchain Research Institute.
    • And a high-level industrial service platform will be built to organize offline activities, the companies say, to ease info sharing, promotion and identification of potential blockchain start-ups.
    • Tesla (NASDAQ:TSLA) is up 4.1% in early trading on a round of positive comments from Wall Street analysts just ahead of earnings.
    • Baird recommends buying shares into the report on the view that a new chairman or board announcement could be a catalyst. A favorable report on production targets is also seen stoking shares.
    • New Street Research reiterates a Buy rating on Tesla, pointing to the potential for a "major" free cash flow beat in Q3.
    • Tesla also landed on the list of 11 "high conviction" stocks put out by Morgan Stanley with a view toward upcoming earnings.
    • Finally there is Citron Research wading into the debate again, but on the long side. "Citron is long Tesla as the Model 3 is a proven hit and many of the TSLA warning signs have proven not to be significant," writes the firm known for short selling. "While the media has been focused on Elon Musk’s eccentric, outlandish and at times offensive behavior, it has failed to notice the legitimate disruption of the auto industry that is currently being DOMINATED by Tesla," adds CR.
    • Tesla's share price jump today comes against a market bleeding off around 1.5% on broad China and earnings concerns.
    • Tune in tomorrow for some interesting action after the earnings report drops and Elon Musk jumps on the conference call.
    • Citron's blog post on Tesla
    • Sources: MarketWatch, Bloomberg
    • Zymeworks (ZYME -1.9%) will collaborate with Danish outfit LEO Pharma A/S to discover and develop bispecific antibodies, leveraging ZYME's Azymetric and EFECT platforms, for potential indications in dermatology, inflammation and autoimmune disorders.
    • LEO will retain the rights to develop two candidates for dermatology applications while ZYME will retain the rights for all other indications.
    • Under the terms of the partnership, ZYME is eligible to receive an upfront payment of $5M and up to $231M in milestone payments for the first candidate and up to $244M for the second. It will also receive research funding and royalties on net sales.
    • Arch Coal (NYSE:ARCH) opens ~1% higher after easily beating analyst expectations for Q3 earnings and revenues, generating its highest level of revenues, net income and EBITDA since its emergence from Chapter 11.
    • Arch says Q3 Powder River Basin sales volumes rose 14% Q/Q as its mines benefited from the usual seasonal pick-up in summer demand along with accelerated shipments to several customers; the higher volumes, coupled with effective cost control, helped drive down per-ton costs by 8% Q/Q to $9.76, and average per-ton cash margin for the segment surged 61% Q/Q.
    • Also, the company says it is in the process of finalizing a revision to the mining and reclamation plan at its Black Thunder mine that could result in a $90M-$110M reduction on a discounted basis in the asset retirement obligation on its balance sheet.
    • Arch says it expects to sell 6.3M-6.7M tons of coking coal and 83M-87N tons of thermal coal for the year.
    • Synovus Financial (SNV -0.8%) Q3 adjusted EPS of 95 cents, up from 92 cents in Q2 and 65 cents in Q3 2017.
    • Q3 net interest income of $291.6M, up 2.5% vs. Q2 and up 11% vs. year-ago quarter; net interest margin 3.89%, up 3 basis points from Q2 and up 26 bps from Q3 2017.
    • Q3 core banking fees of $35.7M fell 4.7% from Q2 and unchanged from a year ago.
    • Total loans at Q3 end of $25.6B, up 7% Q/Q annualized and up 4.5% Y/Y.
    1. Commercial and industrial loans increased 7.4% annualized from Q2 and 6.6% from a year ago;
    2. Consumer loans rose by 9.4% annualized from Q2 and 15% from a year ago.
    3. Commercial real estate loans rose by 4.1% annualized from Q2 and 7.1% vs. Q3 2017.
    • Q3 net charge-off ratio of 0.24%  vs. 0.29% in Q2.
    • Common equity Tier 1 ratio of 9.92% at Sept. 30, 2018 slips from 10.06% a year ago.
    • Tangible common equity ratio was 8.68% vs. 8.88% a year ago.
    • Previously: Synovus beats by $0.03, misses on revenue (Oct. 23)
    • Ingredion (NYSE:INGR) opens down 11% after the company says it expects Q3 EPS of $1.70. The mark falls well below the consensus estimate of $1.95.
    • The company cites "significant" FX headwinds caused by weakening foreign currencies in Argentina, Brazil and Pakistan. Several unplanned power outages in North America during the quarter led to higher manufacturing and supply chain costs.
    • Ingredion press release
    • Now American Express (AXP -1.9%) and Amazon (AMZN -2.6%) get together to create a card for small business in the U.S.
    • The Amazon Business American Express Card offers flexible benefits allowing small businesses to decide between rewards or payment terms purchase by purchase with no annual credit card fee.
    • Card members can use their rewards to shop at Amazon Business and Amazon.com or apply rewards towards a purchase on their statement.
    • Upon sign-up, Prime members get a $125 Amazon.com gift card and all other customers get a $100 Amazon.com gift card.
    • Previously: American Express gains after Q3 earnings beat, guidance boost, PayPal pact (Oct. 19)
    • Compass Minerals (CMP -8.2%announces that production rates at its Goderich salt mine were lower-than-expected for Q3, hence the company issues lower FY18 EPS to ~$2.20-$2.50.
    • The company says salt segment earnings was pressured by lower-than-expected production at Goderich mine, and improvements to ramp up production is slower than expected since the end of the strike.
    • Compass Minerals estimates a negative impact of $15M for Salt segment earnings related to the cost impact
    • Q3 CC is scheduled on Thursday, Nov. 1
    • Uber (UBER) wants London to be the first city with its all-electric taxi fleet by 2025. The company will add a “clean air fee” to rides to help drivers offset the cost of the switch.
    • Uber recently regained its license in the city though the new license has a shorter timeframe than usual. Local transportation regulators had objected to some of Uber’s business practices and wanted more transparency and safety measures.  
    • Previously: Uber receives shortened, 15-month license in London (June 26)