HOT STOCKS
08:29 EDT AGCO, DE
theflyonthewall.com: Agco drops 2% after Deere issues FY19 guidance
Shares of farm equipment maker Agco (AGCO) are lower in pre-market trading after Deere (DE) guided for its equipment sales to increase by about 7% for FY19 compared with 2018. Deere chairman and CEO Samuel Allen said earlier along with the company’s Q4 report: “In the fourth quarter, farm machinery sales in the Americas made further gains while construction-equipment sales continued to move higher, helped in part by our Wirtgen road-building business, whose financial contribution has exceeded our original forecasts. At the same time, the company has continued to face cost pressures for raw materials such as steel, which are being addressed through pricing actions and ongoing cost management…The replacement cycle for farm machinery is very much alive, despite tensions over global trade and other geopolitical issues.” In pre-market trading, Deere shares are down about 3% to $134.00 while Agco shares are down 1.9% to $56.85. :theflyonthewall.com
08:18 EDT SGMS
theflyonthewall.com: Scientific Games launches eInstant and digital games with Norwegian lottery
Scientific Games has launched multiple digital games with Norsk Tipping, Norway’s national lottery operator and World Lottery Association member. In partnership with Scientific Games, Norsk Tipping has added 10 online slot games to their Kong Kasino game category and two new eInstant games to their Flax portfolio – scratch games online -, with additional launches of online slots and eInstant games planned for the coming months. In addition to the selection of eInstant games, Scientific Games has launched some of its most popular iGaming titles with the Norwegian operator. :theflyonthewall.com
08:10 EDT KTOS
theflyonthewall.com: Kratos Defense awarded $29M directed energy systems contract
Kratos Defense announced that the Kratos Defense & rocket support services, or KDRSS, division has been awarded a $29M contract to develop prototype technologies, components and subsystems for the enhancement of existing or new directed energy, or DE, systems. The effort will extend DE system capabilities of counter rocket, artillery and mortar, counter unmanned aircraft systems, or C-UAS, and/or counter intel, surveillance, reconnaissance missions for the US Army Space and Missile Defense Command/Army Forces Strategic Command. The specific technologies include beam control, high energy lasers, adaptive optics, power, thermal, sensors, illuminators, joint fires, fire support, and target tracking. These prototype projects are directly relevant to enhancing mission effectiveness of military personnel and the supporting platforms, systems, components, or materials proposed to be acquired or developed by the Army. Work under this contract is anticipated to be performed at Kratos facilities and at government locations in Huntsville, Alabama. :theflyonthewall.com
08:04 EDT PTE
theflyonthewall.com: PolarityTE receives Q-code for SkinTE reimbursement from CMS
PolarityTE announced that the Centers for Medicare and Medicaid has assigned a unique product Q-code under the Healthcare Common Procedure Coding System for SkinTE. This HCPCS Q-code will help facilitate the reimbursement for SkinTE. The HCPCS Q-code for SkinTE will be billed as Q4200, effective January 1, 2019. :theflyonthewall.com
08:03 EDT SIMO
theflyonthewall.com: Silicon Motion announces new $200M share repurchase program
Silicon Motion announced that its board has authorized a new program for the company to repurchase up to $200M of its American depositary shares, or ADSs, over a 24 month period, effective immediately. Repurchases under the new program will be made in the open market or according to other methods in compliance with SEC Rule 10b-18, subject to market conditions, applicable legal requirements and other factors. The company expects to use cash on hand to fund the repurchases. The plan does not obligate the company to acquire any particular amount of ADS, and it may be suspended at any time at the company’s discretion. :theflyonthewall.com
08:03 EDT RDC
theflyonthewall.com: Rowan Companies transfers contracts to its Rowan Resolute
Rowan Companies’ previously disclosed contract with Fieldwood Energy for the Rowan Reliance will be transferred to the Rowan Resolute under the same contractual terms, which includes a one-year, firm term plus three 90-day options. Additionally, LLOG has elected to exercise its final option on the Rowan Resolute, which is expected to keep the rig with LLOG until February 2019. The Rowan Resolute is expected to commence operations for Fieldwood after a short contract preparation period immediately following the LLOG program. The Rowan Reliance will remain warm-stacked offshore Louisiana in the US Gulf of Mexico. :theflyonthewall.com
08:02 EDT VRAY
theflyonthewall.com: ViewRay names Rob Fuchs as Chief Human Resources Officer
ViewRay announced the appointment of Robert Fuchs as Chief Human Resources Officer effective October 22, 2018. Fuchs has over 18 years of experience in leading human resources. Prior to joining ViewRay, Rob was the Senior Vice President, Global Human Resources Officer for Advanced Energy. Previously, he served as Senior Vice President, Global Human Resources Officer for Spectranetics. :theflyonthewall.com
07:54 EDT DE
theflyonthewall.com: Deere sees FY19 company worldwide agriculture & turf sales up approx. 3%
Sees FY19 U.S./Canada Ag industry sales flat to up 5%. Sees EU 28 Ag sales approximately flat. Sees South American Ag flat to up 5%. Sees Asia Ag about flat to slightly down. Sees U.S. and Canada turf and utility flat to up 5%. Sees Worldwide Construction & Forestry net sales up about 15%. Sees R&D expense up about 6%. Sees SG&A up about 7%. Sees FY19 effective tax rate about 25%-27%. Comments from slides that will be presented on the Q4 earnings conference call. :theflyonthewall.com
07:47 EDT JEC
theflyonthewall.com: Jacobs Engineering awarded contract extension at NASA’s Langley Research Center
Jacobs Engineering was awarded an extension to the Center Maintenance, Operations and Engineering contract at NASA’s Langley Research Center in Hampton, Virginia. The contract extension is a one-year option and NASA estimates a potential value of $46M, bringing the total current value of the contract to $214M. The option begins this October and extends the period of performance through September 2019. Under this contract extension, Jacobs will continue providing facility-related intelligent asset management and operations and engineering support services. :theflyonthewall.com
07:31 EDT TMHC
theflyonthewall.com: Taylor Morrison extends and increases stock repurchase program
Taylor Morrison has authorized an extension of its stock repurchase program until Dec. 31, 2019. The board also increased the amount available for repurchases under the program by $100M of the company’s Class A Common Stock, which is in addition to $13M in remaining availability under the existing authorization that had been due to expire on Dec. 31, 2018. Repurchases of the company’s Class A Common Stock under the program will occur from time to time in open market purchases, privately negotiated transactions or other transactions through Dec. 31, 2019. :theflyonthewall.com
07:08 EDT SYBT
theflyonthewall.com: S.Y. Bancorp CFO Nancy Davis to retire
Stock Yards Bancorp announced that it will promote T. Clay Stinnett, to the position of CFO of Stock Yards Bancorp and Stock Yards Bank & Trust Company, effective May 1, 2019. His promotion reflects the decision by Nancy Davis, currently CFO, to retire from the Company on April 30, 2019. Stinnett currently serves as EVP and chief strategic officer of the company, focusing on strategic planning and corporate development, a position he has held since 2011. In this capacity, he oversees potential expansion, including new market opportunities and potential acquisitions, and evaluates the extension of the Company’s product offerings. Stinnett also manages significant operating areas, several of which he will continue to oversee in addition to his new responsibilities as CFO. :theflyonthewall.com
07:03 EDT SYN
theflyonthewall.com: Synthetic Biologics reports positive outcome of FDA meeting on SYN-004
Synthetic Biologics has completed an End-of-Phase 2 meeting with the FDA to discuss development of SYN-004 – ribaxamase – for the prevention of antibiotic-mediated Clostridium difficile infection. Pursuant to the meeting, the FDA has proposed criteria for Phase 3 clinical efficacy and safety which, if achieved, may support submission for marketing approval of ribaxamase on the basis of a single Phase 3 clinical trial. Final agreement on these criteria is contingent on FDA evaluation of a detailed Phase 3 clinical trial protocol. Synthetic Biologics, in consultation with the FDA, has confirmed the key elements of the Phase 3 clinical program to support a marketing application for ribaxamase, the company’s first-in-class oral enzyme designed to degrade certain intravenous beta-lactam antibiotics within the gastrointestinal tract to prevent microbiome damage, Clostridium difficile infection, overgrowth of pathogenic organisms and the emergence of antimicrobial resistance. The FDA agreed to a primary safety endpoint of noninferiority in mortality between the ribaxamase treatment group versus placebo at 3 months post-randomization. Synthetic Biologics anticipates initiating the Phase 3 clinical program after securing additional potential financing via a strategic partnership. :theflyonthewall.com
07:02 EDT CATO
theflyonthewall.com: Cato Corp. authorizes increase in share repurchase program
The Cato Corporation announced that its Board of Directors has authorized an increase in the company’s share repurchase program of 2M shares. Prior to this authorization, the company had approximately 19,000 shares remaining in open authorizations. :theflyonthewall.com
06:57 EDT EMITF
theflyonthewall.com: Elbit Imaging announces sale of additional Elbit Medical shares
Elbit Imaging announced that the company has completed the sale of an additional 19,389,062 shares of Elbit Medical Technologies to an affiliate of Exigent Capital Group, at a price per share of NIS 0.96, and total consideration of approximately $5M. The sold shares constitute approximately 8% of the outstanding share capital of Elbit Medical. As a result of the sale, the company’s shareholding in Elbit Medical decreased to approximately 66% and Exigent Capital Group shareholding in Elbit Medical increased to 23%. On September 6, 2018 and November 8, 2018, the company sold 33,713,163 Elbit Medical shares, constituting approximately 15% of Elbit Medical’s outstanding share capital, to affiliates of Exigent Capital Group. :theflyonthewall.com
06:54 EDT EADSY
theflyonthewall.com: Airbus appoints Michael Schollhorn COO for Airbus Commercial Aircraft
Airbus has appointed Michael Schollhorn, 53, as COO for Airbus Commercial Aircraft, effective 1 February 2019. Schollhorn, currently COO for BSH Home Appliances, will succeed Tom Williams, 66, who retires 31 December 2018 after 50 successful years in the aerospace industry, 19 of which were in top Airbus management positions. Michael Schollhorn will report to Guillaume Faury who will succeed Tom Enders as Airbus CEO following the shareholders Annual General Meeting on 10 April 2019. He will also become a Member of the Airbus Executive Committee. Reference Link :theflyonthewall.com
06:54 EDT XHR, H
theflyonthewall.com: Xenia Hotels acquires Park Hyatt Aviara Resort, Golf Club & Spa for $170M
Xenia Hotels (XHR) announced its acquisition of Park Hyatt Aviara Resort, Golf Club & Spa, a 327-room luxury resort located in Carlsbad, California, for a purchase price of $170M, or approximately $520,000 per key. The company does not anticipate the hotel to materially contribute to the company’s EBITDA during the remainder of 2018. Situated on a 222-acre site, Park Hyatt Aviara Resort, Golf Club & Spa features 327 rooms, 78,000 square feet of meeting space and amenities including the 15,000 square foot Aviara Spa, six tennis courts, two outdoor swimming pools, Aviara Kids Academy, and the Aviara Golf Club, which includes an 18-hole golf course designed by Arnold Palmer. The resort will continue to be managed by Hyatt (H), which has managed the property since 2010. :theflyonthewall.com
06:49 EDT EADSY, IFNNY
theflyonthewall.com: Airbus appoints Dominik Asam as future CFO
In the context of the ongoing management transition process led by its Board of Directors, Airbus (EADSY) has appointed Dominik Asam, 49, to succeed Harald Wilhelm, 52, as CRO in April 2019. Asam, currently CFO of Munich-based Infineon Technologies (IFNNY), will join Airbus on 1 April 2019 ensuring a smooth handover with Harald Wilhelm, who remains in charge in his current role until the Annual General Meeting on 10 April 2019. As CFO, Dominik Asam will report to future CEO Guillaume Faury and become a Member of the Airbus Executive Committee. Reference Link :theflyonthewall.com
06:21 EDT DE theflyonthewall.com: Deere down 4.7% to $132.03 after Q4 results miss estimates :theflyonthewall.com
06:19 EDT DFS
theflyonthewall.com: Discover’s Diners partners with Brazil’s Elo to launch Elo Diners Club cards
Discover’s subsidiary Diners Club International and Elo, a 100% Brazilian payment brand, will extend their partnership with the launch of Elo Diners Club International Cards in Brazil. Elo, whose shareholders are Banco do Brasil, Bradesco and Caixa Economica Federal – extends its partnership with Discover by adding the Diners Club brand to its card portfolio in Brazil. Diners Club Brazil cards, that are issued by Elo, will run on the Discover Global Network. The two companies have worked together since 2015. The first transaction from this deal occurred in 2016 and since then Elo has issued several million Elo Global Cards in the first two years. :theflyonthewall.com
06:17 EDT DE
theflyonthewall.com: Deere CEO says company has ‘continued to face cost pressures for raw materials’
“John Deere has concluded another solid year in which the company benefited from a further improvement in market conditions and a favorable customer response to its lineup of advanced products,” said Samuel Allen, chairman and CEO. “In the fourth quarter, farm machinery sales in the Americas made further gains while construction-equipment sales continued to move higher, helped in part by our Wirtgen road-building business, whose financial contribution has exceeded our original forecasts. At the same time, the company has continued to face cost pressures for raw materials such as steel, which are being addressed through pricing actions and ongoing cost management.” Added Allen, “The company’s strong performance has allowed for significant investment in new products, services, and technologies. In addition, the company in 2018 returned almost $1.8 billion to shareholders in higher dividends and the repurchase of over $900 million of stock. These steps reflect the strength of the company and our optimism about its future prospects.” :theflyonthewall.com
06:15 EDT DE
theflyonthewall.com: Deere sees FY19 CapEx approximately $1.15B
Up from $893M in FY18. :theflyonthewall.com
06:11 EDT ALB
theflyonthewall.com: Albemarle signs exclusivity agreement with Mineral Resources for lithium JV
Albemarle announced that it has signed an exclusivity agreement with Mineral Resources in relation to the potential creation of a 50/50 joint venture, or JV, to own and operate the Wodgina hard rock lithium mine and ultimately develop an integrated lithium hydroxide operation at the resource site. Wodgina, located in the Pilbara region of Western Australia, is a hard rock lithium deposit, with an estimated mine life of over 30 years. The proposed JV, which remains subject to negotiation of definitive documents, would combine Albemarle’s lithium production and marketing expertise with Mineral Resources, or MRL, regional presence and mining capabilities. Under the terms of the agreement, Albemarle would manage the marketing and sales of lithium hydroxide produced by the JV via Albemarle’s long term agreement strategy. The purchase price for Albemarle’s 50% interest in the JV would be $1.15B, which Albemarle expects to fund with available cash and new credit facilities. It is expected that the transaction will be accretive to Albemarle’s earnings. Albemarle would acquire a 50% interest in all mineral rights within the Wodgina tenements, other than iron ore and tantalum, all fixed infrastructure and utility assets, the spodumene concentration plant and the mobile mining equipment. The parties would jointly manage the JV, through a company to be owned in equal shares by the parties. After construction and ramp-up of the spodumene concentration plant, the JV is expected to produce up to 750Ktpa of 6% spodumene concentrate from Wodgina which is planned to be used as feedstock to the future lithium hydroxide plant. The parties would jointly fund, design, build and operate a lithium hydroxide plant in stages at Wodgina utilizing Albemarle’s core design. The first stage, once fully commissioned, is expected to produce at least 50ktpa of battery grade lithium hydroxide. Construction would commence as soon as the necessary licenses and approvals are in place. The second stage is expected to convert the remaining volume of spodumene concentrate to battery grade lithium hydroxide, at which point the plant is expected to be producing at least 100Ktpa of lithium hydroxide. An exclusivity period until December 14 for the parties to agree upon and execute binding definitive documents. While the above terms have been commercially agreed and the agreement is binding in respect to the exclusivity period, the parties will only become legally bound to enter into the proposed joint venture upon execution of definitive documents and board approval by the parties. Completion of the transaction will be subject to satisfaction of conditions of an administrative nature, any regulatory approvals and any third party consents. :theflyonthewall.com
06:07 EDT RNSDF, NSANY
theflyonthewall.com: Carlos Ghosn remains as Renault chairman, CEO
The company said, “The Board of Directors of Renault (RNSDF) held adopted transitional governance measures to preserve the interests of the Group and the continuity of its operations. The Board was chaired by the lead independent director Mr. Philippe Lagayette after the opening of judicial proceedings against Mr. Carlos Ghosn in Japan. At this stage, the Board is unable to comment on the evidence seemingly gathered against Mr. Ghosn by Nissan and the Japanese judicial authorities. Mr. Ghosn, temporarily incapacitated, remains Chairman and CEO The Board of Directors resolved to appoint Mr. Thierry Bollore on a temporary basis as Deputy CEO. Mr. Bollore will therefore lead the management team of the Group, having the same powers as Mr. Carlos Ghosn. During this period, the Board will meet on a regular basis under the chairmanship of the lead independent director to protect the interests of Renault and the sustainability of the Alliance. The Board decided to request Nissan (NSANY), on the basis of the principles of transparence, trust and mutual respect set forth in the Alliance Charter, to provide all information in their possession arising from the internal investigations related to Mr. Ghosn.The Board endorsed the support expressed by the Nissan management to the Renault Nissan Mitsubishi Alliance, which remains the priority of the Group.” Reference Link :theflyonthewall.com
06:04 EDT KW
theflyonthewall.com: Kennedy Wilson acquires 188-unit apartment community in Boise for $24M
Kennedy Wilson has acquired Cottonwoods Apartments, a wholly-owned 188-unit apartment community in Boise, Idaho for $24M. Kennedy Wilson invested approximately $11M of equity and secured a $14M loan from Freddie Mac at a fixed rate of 4.33% for 10 years. Beginning immediately, Kennedy Wilson will initiate a large-scale renovation and rebranding of the property. More than $6M will be invested to upgrade the unit interiors, improve the clubhouse, fitness center and pool, and address deferred maintenance projects. :theflyonthewall.com
06:03 EDT KRP
theflyonthewall.com: Kimbell Royalty Partners announces $107.8M drop down acquisition
Kimbell Royalty Partners announced the purchase of certain oil and gas royalty assets from certain affiliated sellers for approximately $107.8M. The transaction is expected to close on or around December 20 and be immediately accretive to distributable cash flow per unit. The transaction includes diversified package of royalty interests with over 70% of production from premier resource plays, including the Eagle Ford Shale, Permian Basin, Appalachian Basin and Bakken Formation. The transaction adds approximately 16,700 net royalty acres, increasing Kimbell’s total net royalty acre position by 15% to approximately 131,900 net royalty acres across the continental U.S. :theflyonthewall.com
05:35 EDT SPI
theflyonthewall.com: SPI Energy receives Nasdaq filing extension
SPI Energy announced that it received a letter from The Nasdaq Stock Market stating that the Nasdaq Hearings Panel granted the company’s request for additional time to file its Annual Report on Form 20-F for the year ended December 31, 2017. The company’s continued listing is subject to, among other things, the following: on or before December 3, 2018, the company shall have effected a reverse stock split in a ratio sufficient to meet the minimum bid price rule, and shall have evidenced a closing bid price of over $1.00 for at least 10 consecutive trading days, and the company file with the SEC its Form 20-F for the year ended December 31, 2017 by no later than December 10, 2018. In addition, due to the company’s history of late filings, the Panel imposed a Panel Monitor pursuant to Listing Rule 5815(d)(4)(A), that will last through 2019. As provided in that Listing Rule, if at any time during the monitor period the company fails any listing standard, the Nasdaq Staff will issue a Staff Delisting Determination and the Hearings Department will promptly schedule a new hearing. In addition, the Panel decision requires that the company be able to demonstrate compliance with all requirements for continued listing on Nasdaq and that the company provide prompt notification of any significant events that occur during the extension period. The Panel reserved the right to reconsider the terms of its decision based on any event, condition or circumstance that exists or develops that would, in the opinion of the Panel, make continued listing of the company’s securities on Nasdaq inadvisable or unwarranted. In addition, the Nasdaq Listing and Hearing Review Council may review the Panel decision on its own motion, in which event it may affirm, modify, reverse or remand the decision to the Panel. In the event the company is unable to fully comply with the terms of the Panel decision, the company’s securities may be delisted from The Nasdaq Stock Market. :theflyonthewall.com
05:28 EDT IQ, GOOG, GOOGL
theflyonthewall.com: iQIYI announces DRM partnership with Google
iQIYI (IQ) announced that it is partnering with Google (GOOG) in the field of Digital Rights Management, or DRM, to incorporate Google’s Widevine DRM technology into its Multi-DRM system, which has already earned recognition by ChinaDRM Lab, China’s most prestigious DRM organization. iQIYI has been a consistent leader in the application of DRM in China, and is the first Chinese internet video platform to incorporate Google Widevine DRM on its platform for use on the Chrome browser. DRM technology is the system used globally to securely distribute content, and is widely deployed in the entertainment industry to protect film media and other IP. Google Widevine is the native DRM solution for the Google Chrome browser and Android platform. With a leading encryption system for secure distribution and protection of video playback on any consumer device, Widevine DRM is deployed by nearly every major online video service. iQIYI’s use of Widevine DRM will enhance protection of licensed content on its platform, with the added benefit of allowing users accessing iQIYI via Chrome on both Windows and MacOS to enjoy a high-definition viewing experience. :theflyonthewall.com
05:24 EDT BZUN, LITB
theflyonthewall.com: Baozun appoints Robin Lu as CFO
Baozun announced that Robin Lu has been appointed as CFO, effective November 30. Lu will succeed Beck Chen, who will leave the company to pursue other opportunities. Chen will continue to work until November 30 to ensure a smooth transition. Before joining Baozun, Lu served as CFO of LightInTheBox Holding (LITB) from 2014 to 2018. :theflyonthewall.com
05:21 EDT NAVI
theflyonthewall.com: Navient CEO sends letter to holders in response to AP article
Navient released the following letter from Jack Remondi CEO, to company shareholders: “Today’s article by the Associated Press continues the practice of ignoring facts to make false, sensational and harmful accusations that discourage borrowers from working with their servicers. Despite being in possession of the Federal Student Aid, or FSA, review and our account-by-account response, the article repeated a series of false accusations that are not found in any section of the review. A full reading of the report, our responses included in the report and comments provided by the U.S. Department of Education clearly and unequivocally refute the accusations that Navient was improperly steering borrowers. They also affirmatively conclude that in those instances where forbearance was used, it was applied appropriately. According to a Department of Education statement on the review: …in approximately 9 percent of those calls, it was not clear whether Navient had sufficiently discussed options with the borrower. In response to FSA’s preliminary conclusions, Navient provided detailed information about each of the calls at issue. Based on FSA’s review of Navient’s responses and FSA’s independent review of Navient’s overall performance, FSA has concluded that Navient is substantially in compliance with its obligations. The article also claims that the CFPB and others did not possess the report (though later it admits they did). In fact, the review has been in the hands of the CFPB and state AGs for nearly a year. One of the main claims is that enrolling borrowers in forbearance is an inappropriate and therefore deceptive practice. This conclusion is deceptive in itself and shows a lack of understanding of the different repayment options available to borrowers and how forbearance can be both a proper and lower cost option for borrowers. It also ignores the fact that the option of forbearance was authorized by Congress and no senator has initiated any bill to eliminate it as a valid option. A full reading of the review and our response makes it clear that we discussed options other than forbearance or that forbearance was the most appropriate option choice for the borrower. Navient provided these details to Senator Warren in a letter dated November 15, 2018. The letter, which we are releasing at navient.com/legalfacts in response to the Senator’s press release makes clear that the accusations are false and misleading and are a blatant attempt to discredit the good work of my 6,000-plus dedicated colleagues. The Department of Education statement continued: Program data indicated that Navient’s overall use of forbearance was consistent with that of other servicers, while the duration of forbearances for Navient borrowers was actually among the lowest of the Department’s nine servicers. Navient also had among the highest take-up rates for income-driven repayment plans, as well as longer than average call durations in comparison to all servicers. The federal loan programs offer over 50 different repayment options. Some are designed for long-term challenges and others are designed to address short-term challenges. Contrary to some views, no single option is always best or always worst. It always depends on the borrowers’ unique circumstances. The most expensive option is doing nothing and allowing the account to become delinquent and/or default. At Navient we help our customers select the option that best fits their needs. The results are crystal clear, borrowers serviced by Navient have the highest enrollment in income-driven repayment programs of all comparable servicers and are least likely to default. We are proud of these industry leading results and I am proud of the work our team does each and every day to assist borrowers. It is deeply sad that these false accusations are spread without facts to support them and, as a result, borrowers are discouraged from engaging with their services. Nevertheless, we will continue to provide quality service to help our customers succeed.” :theflyonthewall.com
05:17 EDT ABIL
theflyonthewall.com: Ability to acquire supplier of principal cellular interception system
Ability announced that, subject to the terms and conditions of a Stock Purchase Agreement, including the company’s satisfactory due diligence, the company has entered into an agreement to acquire the supplier that develops and licenses to the company on an exclusive basis Ultimate Interception, or ULIN, the company’s principal cellular interception system. Under the Stock Purchase Agreement, subject to the company’s satisfactory due diligence, the company has agreed to purchase all the issued and outstanding shares of the supplier and in consideration, the company agreed to issue 354,609 ordinary shares of the company, which is the equivalent to $1M, based on the closing share price of the company on the Nasdaq Capital Market on November 20, 2018. In addition, the company agreed to issue to the Seller three warrants, each warrant exercisable for 100,000 ordinary shares of the company at an exercise price of $3.81, with the first warrant exercisable for 30 days from the first anniversary of the closing date, the second warrant exercisable for 30 days from the second anniversary of the closing date, and the third warrant exercisable for 30 days from the third anniversary of the closing date. Closing is subject to satisfactory due diligence by the company, entry into a service agreement, and other closing conditions. There can be no assurance that the closing conditions will be satisfied or that the acquisition will be completed as contemplated or at all. If the acquisition is completed, the company estimates that the company will incur additional operating expenses of approximately $750,000 on an annualized basis while the company would no longer be subject to the revenue share arrangement under the existing reseller agreement with the supplier. :theflyonthewall.com
05:01 EDT DXCM, GOOG, GOOGL
theflyonthewall.com: DexCom, Alphabet’s Verily amend collaboration and license agreement
DexCom (DXCM) and Verily, an Alphabet (GOOG, GOOGL) company, announced last night an amendment to their collaboration and license agreement surrounding the ongoing development efforts between the companies. “The revised terms are intended to reinforce the companies’ mutual product development goals, while expanding options for future collaborations,” said the companies. “The agreement also accelerates Dexcom’s efforts to advance into the Type 2 diabetes space and improves its future profitability,” they added. In consideration of Verily’s performance of its obligations under the joint development plan, the licenses granted to Dexcom and the amendment of the original agreement, Dexcom will make an upfront payment, as well as potential future milestone payments upon the achievement of certain goals, as follows: Dexcom will make an initial payment of $250M in shares of its common stock. The issuance of shares of common stock is subject to customary closing conditions, including expiration of any waiting period under the Hart-Scott-Rodino Act, and, if these conditions are not met, Dexcom would be obligated to make this payment in cash; Additional milestone payments of up to $280M may become due and payable by Dexcom upon the achievement of future product launch and revenue milestones. Dexcom may make up to $275M of these milestone payments in shares of its common stock, subject to customary closing conditions. They companies added: “Agreement strengthens product development timelines for the second generation CGM system. Dexcom will continue to evaluate near-term opportunities for the first generation product, and the company’s focus shifts to commercializing the second generation offering; Agreement structure increases synergy with Verily’s Onduo franchise, where Dexcom will be the preferred CGM device supplier into Onduo’s Type 2 diabetes management program.” :theflyonthewall.com

UPGRADES
08:06 EDT TNDM
theflyonthewall.com: Tandem Diabetes upgraded to Outperform following selloff at Baird
As reported previously, Baird analyst Jeff Johnson upgraded Tandem Diabetes to Outperform from Neutral. The analyst believes the recent selloff in the shares is overdone, especially in the context of Street estimates that now appear too low for 2019-2020. He has increased confidence the company will take market share from big competitors and believes the shares can rally into the $40 range over the next few quarters. However, Johnson lowered his price target to $46 from $49 on Tandem Diabetes shares. :theflyonthewall.com
08:01 EDT BBY, AMZN
theflyonthewall.com: Best Buy upgraded to Neutral following quarterly results at Wedbush
As previously reported, Wedbush analyst Michael Pachter upgraded Best Buy (BBY) to Neutral from Underperform, with a $65 price target, saying it has consistently defied his expectations and the company appears to have settled on the right formula for long-term growth. The analyst applauds Best Buy for its many accomplishments, not least of which is achieving the difficult financial targets it has set for itself year after year. While Pachter stills harbor some concerns, including competition from Amazon (AMZN), he thinks Best Buy is poised to deliver on its promises in the coming years. :theflyonthewall.com
07:23 EDT RP
theflyonthewall.com: RealPage upgraded to Outperform at RBC Capital on ‘overdone’ selling
As reported earlier, RBC Capital analyst Matthew Hedberg upgraded RealPage to Outperform from Sector Perform and kept his price target at $62. The analyst states that the company recorded one of its better quarters in years and also cites his recent positive takeaways from discussions with its management. After a 31% decline in the stock price, Hedberg also believes that RealPage valuation of 10.9-times enterprise value to expected EBITDA is “opportunistic”. :theflyonthewall.com
07:19 EDT WIX
theflyonthewall.com: Wix.com upgraded to Outperform at RBC Capital on valuation
As reported earlier, RBC Capital analyst Mark Mahaney upgraded Wix.com to Outperform from Sector Perform and kept his price target at $110. The analyst cites the company’s 30% stock price retreat taking its valuation “close to trough” levels along with his survey work findings and expectations of pending catalysts that include “Wix Code, Pricing Tier Changes, & New Product Announcement”. Mahaney further points to Wix.com’s “clear history of very robust top-line growth and strong free cash flow generation”, noting that it is viewed as “one of the best fundamental assets” in his in our Mid/Small Cap coverage universe. :theflyonthewall.com
06:34 EDT NMHLY
theflyonthewall.com: NMC Health upgraded to Overweight from Neutral at JPMorgan
JPMorgan analyst Marc Hammoud upgraded NMC Health to Overweight and raised his price target for the shares to 4,265p from 3,450p. The company “continues to be a strong growth story” driven by a mix of organic initiatives and aggressive acquisition activity, Hammoud tells investors in a research note. :theflyonthewall.com
06:26 EDT BBY theflyonthewall.com: Best Buy upgraded to Neutral from Underperform at Wedbush :theflyonthewall.com
06:13 EDT EIX
theflyonthewall.com: Edison International upgraded to Buy from Neutral at Mizuho
Mizuho analyst Paul Fremont upgraded Edison International to Buy while lowering his price target for the shares to $57.50 from $62. Following an analysis of the company’s 2017-2018 wildfire/mudslide liabilities, the analyst estimates “more upside opportunity than downside opportunity” from current stock levels. His after-tax and after-insurance base case liability estimate is $3.3B for the 2017-2018 wildfires and mudslides. :theflyonthewall.com
06:08 EDT UMPQ
theflyonthewall.com: Umpqua Holdings upgraded to Neutral from Underweight at Piper Jaffray
Piper Jaffray analyst Matthew Clark upgraded Umpqua Holdings to Neutral with an unchanged price target of $20. The analyst sees fewer earnings headwinds and notes the stock is down 9% year-to-date. Sentiment is “washed out” and the shares now offer a 4.4% dividend yield and trade at a modest discount to peers, Clark tells investors in a research note. :theflyonthewall.com
06:07 EDT WIX theflyonthewall.com: Wix.com upgraded to Outperform from Sector Perform at RBC Capital :theflyonthewall.com
06:07 EDT PAM theflyonthewall.com: Pampa Energia upgraded to Outperform from Neutral at Credit Suisse :theflyonthewall.com
06:04 EDT RP theflyonthewall.com: RealPage upgraded to Outperform from Sector Perform at RBC Capital :theflyonthewall.com
06:04 EDT TNDM theflyonthewall.com: Tandem Diabetes upgraded to Outperform from Neutral at Baird :theflyonthewall.com
05:15 EDT PFODF
theflyonthewall.com: Premier Foods upgraded to Buy from Hold at Jefferies
Jefferies analyst Martin Deboo upgraded Premier Foods to Buy and raised his price target for the shares to 50p from 48p. :theflyonthewall.com

DOWNGRADES
08:18 EDT LMB theflyonthewall.com: Limbach Holding downgraded to Neutral from Buy at Roth Capital :theflyonthewall.com
07:17 EDT ECL
theflyonthewall.com: Oppenheimer downgrades Ecolab on valuation after ‘solid’ Q3
Oppenheimer analyst Scott Schneeberger downgraded Ecolab to Perform from Outperform citing valuation and a “less certain” economic/oil price environment. The analyst reported “solid” Q3 results but reduced its 2018 adjusted earnings outlook on cost inflation and incremental currency headwinds in the second half of the year, Schneeberger tells investors in a research note. The analyst reduced his estimates accordingly but still views double-digit adjusted earnings growth as achievable over the next two years. :theflyonthewall.com
07:01 EDT GS
theflyonthewall.com: Goldman Sachs downgraded to Equal Weight on 1MDB probe risks at Morgan Stanley
As previously reported, Morgan Stanley analyst Betsy Graseck downgraded Goldman Sachs to Equal Weight from Overweight, citing the risks and uncertainties related to the bank being investigated for its role in raising funds for 1MDB. It is currently unclear how long the issue will take to resolve, what the fines and penalties could be and what costs Goldman will incur, said Graseck, who doesn’t see the stock’s multiple expanding significantly until the 1MDB issue is resolved. She lowered her price target on Goldman Sachs shares to $226 from $291. :theflyonthewall.com
06:31 EDT SWGAY theflyonthewall.com: Swatch Group downgraded to Sell from Neutral at UBS :theflyonthewall.com
06:31 EDT SWGAY
theflyonthewall.com: Swatch Group downgraded to Sector Perform from Outperform at RBC Capital
RBC Capital analyst Rogerio Fujimori downgraded Swatch Group to Sector Perform and lowered his price target for the shares to 370 francs from 450 francs. The analyst sees a lack of near-term catalysts and believes current consensus margin expectations are too high. :theflyonthewall.com
06:21 EDT LOW, HD
theflyonthewall.com: Lowe’s downgraded to Hold from Buy at Stifel
Stifel analyst John Baugh downgraded Lowe’s (LOW) to Hold from Buy and lowered his price target for the shares to $92 from $125. The company’s “poor” Q3 results indicate near term execution risks are higher and the macro backdrop is unlikely to improve in the near term either, Baugh tells investors in a post-earnings research note. With macro concerns and execution worries, the analyst feels “it is prudent to step aside on the name at this time.” Home Depot (HD) has “widened the gap on performance and it will take some heavy lifting to reverse course,” Baugh contends. :theflyonthewall.com
06:10 EDT LNT
theflyonthewall.com: Alliant Energy downgraded to Underperform from Neutral at BofA/Merrill
BofA/Merrill analyst Julien Dumoulin-Smith downgraded Alliant Energy to Underperform from Neutral citing relative valuation. The analyst side the current premium valuation is unwarranted given declining CapEx and moderating earnings growth. :theflyonthewall.com
06:07 EDT GS theflyonthewall.com: Goldman Sachs downgraded to Equal Weight from Overweight at Morgan Stanley :theflyonthewall.com
06:07 EDT ECL theflyonthewall.com: Ecolab downgraded to Perform from Outperform at Oppenheimer :theflyonthewall.com
05:21 EDT TEDU
theflyonthewall.com: Tarena downgraded to Underperform from Hold at Jefferies
Jefferies analyst Johnny Wong downgraded Tarena International to Underperform and lowered his price target for the shares to $5.80 from $8 following the company’s Q3 results. The analyst now expects the company to post losses in the next three fiscal years due to slowing enrollment from retail adults, high marketing expenses, and the push out in kids education break-even point to fiscal 2020. :theflyonthewall.com
05:16 EDT INVVY
theflyonthewall.com: Indivior downgraded to Hold from Buy at Jefferies
Jefferies analyst James Vane-Tempest downgraded Indivior to Hold and lowered his price target for the shares to GBP 1.20 from GBP 2.60. :theflyonthewall.com

INITIATIONS
08:01 EDT DY
theflyonthewall.com: Dycom assumed with a Buy at Canaccord
Canaccord analyst Chip Moore assumed coverage on Dycom with a Buy as he believes it is well-positioned as a near pure-play in telecom network expansion. He noted shares are down roughly 40% year-to-date, making the valuation reasonable ahead of what he views as the next cyclical wave of multi-year growth. Moore has an $84 price target on Dycom shares. :theflyonthewall.com
07:56 EDT NBIX
theflyonthewall.com: Neurocrine initiated with a Buy at Canaccord
Canaccord analyst Sumant Kulkarni initiated Neurocrine with a Buy rating as he said the company is one of the few where a product launch exceeded expectations. He said he is guardedly optimistic heading into Phase 2b data for Ingrezza in pediatric Tourette syndrome and with the stock’s recent pullback, he sees an attractive entry point. He also thinks the pullback could cause investors to look at Neurocrine to be involved in industry consolidation. Kulkarni set a $111 price target on Neurocrine shares. :theflyonthewall.com
07:51 EDT DLPN
theflyonthewall.com: Dolphin Entertainment initiated with a Buy at Canaccord
Canaccord analyst Austin Moldow initiated Dolphin Entertainment with a Buy rating as he believes one of the best ways to take advantage of the secular tailwinds in content spending is to gain exposure to content marketing services. As the owner of 42West, Dolphin is one of the few opportunities to benefit from these tailwinds, said Moldow, who has a $3 price target on the shares. :theflyonthewall.com
07:50 EDT ARCE
theflyonthewall.com: Arco Platform initiated with a Buy at UBS
UBS analyst Maria Tereza Azevedo started Arco Platform with a Buy rating and $28 price target. The analyst views Arco as an “attractive investment proposition” given its “unique” product and market position in the private Brazilian K-12 learning system sector. She likes the company’s software-as-a-service type and asset/regulatory-light business model. :theflyonthewall.com
07:46 EDT CIDM
theflyonthewall.com: Cinedigm initiated with a Buy at Canaccord
Canaccord analyst Austin Moldow initiated Cinedigm with a Buy rating, stating that it is undergoing a transition from a legacy equipment business to a digital and streaming business. The analyst believes in its growth potential and expects it to be driven by its portfolio of advertising supported by OTT streaming services. Moldow has a $2 price target on Cinedigm shares. :theflyonthewall.com
07:14 EDT GMDA
theflyonthewall.com: Gamida Cell initiated with an Outperform at Oppenheimer
Oppenheimer analyst Mark Breidenbach started Gamida Cell with an Outperform rating and $15 price target. The analyst sees Gamida’s proprietary cell expansion technology as a “versatile approach for improving the performance of cell-based products.” He believes the company’s lead product, NiCord, could provide a safe and effective source of stem cells for transplant patients who lack compatible donors. :theflyonthewall.com
07:11 EDT GMDA
theflyonthewall.com: Gamida Cell initiated with an Outperform at BMO Capital
BMO Capital analyst Matthew Luchini initiated Gamida Cell with an Outperform rating and a price target of $19. The analyst believes that the company’s lead product NiCord may become a “universal treatment for patients with blood cancer needing stem cell transplant”, offering “the benefits of umbilical cord blood transplantation”. Luchini adds that the “promising” Phase I/II data should help de-risk the ongoing Phase III study and anticipates its peak sales to reach about $220M. If the platform is applied to cancer, the analyst believes that the Phase I data expected next year could unlock potential to upside opportunity of over $1B. :theflyonthewall.com
07:03 EDT OIBR
theflyonthewall.com: Oi S.A. initiated with an Equal Weight at Barclays
Barclays analyst Mathieu Robilliard started Oi S.A. with an Equal Weight rating and $2.23 price target. The company is making progress in its turnaround, which should lead to improving trends, says the analyst. :theflyonthewall.com
06:36 EDT BGNE
theflyonthewall.com: BeiGene initiated with an Overweight at JPMorgan
JPMorgan analyst Leon Chik last initiated coverage of BeiGene with an Overweight rating and $174 price target. The company over the past eight years has built a “strong innovative pipeline” composed of eight clinical candidates, three of which are already in Phase 3 clinical trials, Chik tells investors in a research note. He points out BeiGene also has exclusive licenses from Celgene for the China market to generate near-term sales and gross profits. :theflyonthewall.com
05:28 EDT MRKR
theflyonthewall.com: Marker Therapeutics initiated with a Buy at Nomura Instinet
Nomura Instinet analyst Christopher Marai started Marker Therapeutics with a Buy rating and $16 price target. The analyst believes the company’s MultiTAA platform, which selects for and expands patient tumor-specific T cells by directly presenting a blend of tumor-associated antigens and cytokines in vitro, is “amenable to rapid approval.” Further, Marker is trading at a discount to immunotherapy peers despite offering a “strong” de-risking data flow that will likely result in share upside over the next 12 months, Marai tells investors in a research note. :theflyonthewall.com
05:23 EDT ZLAB
theflyonthewall.com: Zai Lab initiated with a Buy at Jefferies
Jefferies analyst Maury Raycroft started Zai Lab with a Buy rating and $34 price target. The analyst likes the company’s structure of forming partnerships around assets that are already clinically de-risked. The partnerships reduce risk and allow Zai Lab to accelerate a drug’s path to market in China, Raycroft tells investors in a research note. :theflyonthewall.com
05:03 EDT ANAB
theflyonthewall.com: AnaptysBio initiated with an Overweight at JPMorgan
JPMorgan started AnaptysBio with an Overweight rating and $115 price target.:theflyonthewall.com
GENERAL RECOMMENDATIONS
08:25 EDT USCR
theflyonthewall.com: U.S. Concrete price target lowered to $47 from $70 at SunTrust
SunTrust analyst Rohit Seth lowered his price target on U.S. Concrete to $47 after its Q3 earnings miss and FY18 revenue guidance cut along with the anticipated negative impact of fires in California’s Bay Area. The analyst also cites the overall multiple compression in the Building Materials industry. Longer term, Seth maintains his Buy rating on U.S. Concrete, expecting the company to benefit from continued construction spending growth in NYC, Dallas, and California areas along with the anticipated “improving margin profile” from fixed cost leverage and more positive price to cost dynamic in 2019. :theflyonthewall.com
08:25 EDT HUM, WBA, AMZN, CVS, AET, UNH
theflyonthewall.com: Humana-Walgreens strategic deal makes sense, takeout less likely, says Leerink
Following a media report saying that Humana (HUM) and Walgreens Boots Alliance (WBA) are in talks to take stakes in each other and possibly expand their retail clinic partnership inked on June 19, Leerink analyst Ana Gupte says she believes it makes strategic sense, though she believes an outright takeout is less likely given the multiple differential. As MCOs backward integrate into care delivery, the analyst believes a closer strategic alignment between the two companies can help Humana better compete with the likes of CVS (CVS)-Aetna (AET) and Optum-UnitedHealth (UNH) in the Medicare Advantage market while allowing Walgreens to further stave off e-commerce threats such as Amazon (AMZN), though Humana maintains its strategic investment focus on the home healthcare setting for Seniors. :theflyonthewall.com
08:20 EDT JEC
theflyonthewall.com: Jacobs Engineering shares offer better than average risk/reward, says Baird
Baird analyst Andrew Wittmann said he recently moderated his conviction in Johnson Engineering shares as the stock approached his target. Macroeconomic factors aside, he believes the shares offer better than average risk/reward for an industrial, citing its balance sheet and less cyclical markets. Wittmann reiterated his Outperform rating and lowered his price target to $80 from $84 on Jacobs Engineering shares. :theflyonthewall.com
08:15 EDT AVB, AMZN
theflyonthewall.com: AvalonBay price target raised to $205 from $196 at Argus
Argus analyst Jacob Kilstein raised his price target on AvalonBay (AVB) to $205 and kept his Buy rating, citing the company’s better than expected Q3 earnings along with his diminishing concerns about housing oversupply in New York over the near term. The analyst specifically expects the company to benefit from Amazon.com (AMZN) selection of New York’s Long Island City as a location of its new headquarters. Kilstein believes that the 5% decline in AvalonBay stock price since June of 2017 offers a favorable entry and contends that the headwinds of higher interest rates and oversupply in some area have been priced in. :theflyonthewall.com
08:12 EDT LOW
theflyonthewall.com: Lowe’s price target lowered to $115 from $125 at KeyBanc
KeyBanc analyst Bradley Thomas lowered his price target for Lowe’s to $115 from $125, while reiterating an Overweight rating on the shares. The analyst notes that Q3 EPS was above expectations, on tax rate and margins, though comps came in below expectations. The company continues to on-board new executives under the leadership of new CEO Marvin Ellison, and new initiatives to improve productivity and capital efficiency will ramp in the quarters ahead, he contends. Thomas looks for meaningful self-help opportunities to scale in 2019, which keeps him positive, even with moderated expectations for the industry. :theflyonthewall.com
08:06 EDT MOMO
theflyonthewall.com: Momo price target lowered to $40 from $50 at TH Data Capital
TH Data Capital analyst Tian Hou lowered his price target for Momo to $40 and keeps a Buy rating on the shares ahead of the company’s Q3 results in late November. The analyst expects revenue to be in-line with consensus but points out Momo also needs to invest in Tantan. As such, he believes the company’s margin is likely to be lower than Q2 and Q3 of last year. Given today’s “economic, political and market situation,” many Chinese companies are likely to be “more conservative in their business operation,” Hou tells investors in a research note. :theflyonthewall.com
08:04 EDT FL
theflyonthewall.com: Foot Locker recovery thesis playing out, says Canaccord
Canaccord analyst Camilo Lyon noted Foot Locker reported solid Q3 results and said the beat was high quality. He was particularly pleased with the inflection in footwear and Europe as it benefited from the breadth and depth of on-trend platforms that resulted in an improving inventory mix. Lyon believes the results show his recovery thesis is playing out. He reiterated his Buy rating and raised his price target to $64 from $63 on Foot Locker shares. :theflyonthewall.com
08:03 EDT HEAR, LOGI
theflyonthewall.com: Investors should buy Turtle Beach, Logitech shares, says DA Davidson
DA Davidson analyst Tom Forte kept his Buy rating and $30 price target on Turtle Beach (HEAR), saying that investors should buy the stock after the latest NPD gaming data for the month of October and tweets from an NPD analyst. Forte adds that he is also bullish on Logitech (LOGI), keeping his Buy rating and $58 price target on that stock. The analyst is citing a “record” month of October sales going back to 1995, thanks to the latest boost from gaming titles Call of Duty and Red Dead Redemption 2, both of which offer a battle royale format. Forte further notes that NPD disclosed that “sales in the headsets & headphones category doubled in the month of October”, and sees the “broadening appeal for gaming, battle royale, and eSports” as positive for the two accessory companies. :theflyonthewall.com
08:02 EDT DXCM
theflyonthewall.com: Amended Verily agreement a win for DexCom, says William Blair
William Blair analyst Margaret Kaczor views the amendment to its collaboration agreement with Verily as a financial and strategic win for DexCom. The new deal should strengthen their partnership and “meaningfully improve” Dexcom’s future profitability, Kaczor tells investors in a research note. Overall, despite the near-term dilution, the amended agreement is a positive step for the company that should give it more control over the launch prospects of its next-generation devices and flexibility over commercial strategies in the type 2 patient population, says the analyst. She keeps an Outperform rating on shares of DexCom. :theflyonthewall.com
08:00 EDT WBA, HUM, AET, CVS
theflyonthewall.com: Jefferies not sure how Humana would benefit from Walgreens stake
The stake talks between Walgreens Boots Alliance (WBA) and Humana (HUM), as reported last night by the Wall Street Journal, follows in the pattern of the Aetna (AET)/CVS Health (CVS) deal, but it is not fully clear how Humana would benefit from an investment in Walgreens, Jefferies analyst Brian Tanquilut tells investors in a research note. For Walgreens, a partnership approach matches the company’s strategy and would help address questions about the long-term viability of the retail pharmacy model, adds the analyst. He believes partnering with Humana helps Walgreens drive market share. Further, a deal could also help strengthen Humana’s brand and improve its ability to market directly to prospective insurance lives, especially as healthcare increasingly becomes consumer-focused, Tanquilut says. :theflyonthewall.com
07:57 EDT ROST
theflyonthewall.com: Ross Stores price target lowered to $95 from $100 at Credit Suisse
Credit Suisse analyst Michael Binetti lowered his price target for Ross Stores to $95 from $100 following quarterly results. The analyst reiterates an Outperform rating on the shares. :theflyonthewall.com
07:56 EDT TGT, WMT
theflyonthewall.com: Target price target lowered to $70 from $88 at BMO Capital
BMO Capital analyst Kelly Bania lowered her price target on Target (TGT) to $70 and kept her Market Perform rating after its Q3 results, saying that its gross margin performance and a lack of leverage on e-commerce sales are her “key” concerns for the stock. The analyst cites the digital fulfillment costs accelerating along with the company’s secondary margin pressures that included additional inventory as factors impacting the quarter. Even though she sees some of these concerns being alleviated in Q4, Bania contends that the e-commerce leverage is the key difference supporting her preference for Walmart (WMT). :theflyonthewall.com
07:55 EDT ADI
theflyonthewall.com: Analog Devices price target lowered to $102 from $117 at Loop Capital
Loop Capital analyst Cody Acree lowered his price target on Analog Devices to $102 to reflect the broader industry multiple contraction, modelling an 18-times forward earnings multiple and a FY20 EPS of $5.54. The analyst also keeps his Buy rating after the company’s Q4 earnings beat, saying the quarter was “not as bad as feared”, adding that investors’ positive reaction to the print “may signal an increased interest to move money back into semiconductors”. Acree still maintains a somewhat cautious view based on Analog Devices’ “commentary regarding tariff-related inflationary pressure, particularly in the industrial and automotive markets, which have been among the largest drivers of growth for the chip industry over the past few years.” :theflyonthewall.com
07:54 EDT BBY
theflyonthewall.com: Best Buy price target lowered to $70 from $78 at Credit Suisse
Credit Suisse analyst Seth Sigman lowered his price target for Best Buy to $70 from $78 and reiterated a Neutral rating on the shares. The analyst notes that Best Buy reported “healthy” Q3 results, but his take is mixed as results indicate less outperformance versus the industry benchmarks he tracks, and he believes there is uncertainty on the bridge to Q4 comps. Further, the stock historically has traded primarily with comps, and difficult comparisons ahead may pose a challenge, Sigman contends. That said, the analyst has a high level of confidence in the company’s management team, and was encouraged by margin trends in the quarter and the outlook for Q4. :theflyonthewall.com
07:53 EDT GPS
theflyonthewall.com: Jefferies recommends Gap with 100% potential upside after Q3 results
Jefferies analyst Randal Konik says Gap’s Q3 results showed that Old Navy “is a machine,” Athleta is a “major” long-term growth vehicle, Banana is in “great cyclical shape,” and the Gap brand’s footprint issues are being “addressed aggressively.” The analyst expects “significant closures” within the Gap brand fleet, which he believes should uncover the portfolio’s “hidden jewels” of Old Navy and Athleta. He recommends buying shares of Gap with his sum-of-the-parts analysis yielding 100% upside. Konik keeps a Buy rating on Gap with a $50 price target. :theflyonthewall.com
07:50 EDT HRL
theflyonthewall.com: Hormel Foods price target raised to $39 from $33 at Credit Suisse
Credit Suisse analyst Robert Moskow raised his price target for Hormel Foods to $39 from $33 following quarterly results. The analyst reiterates a Neutral rating on the shares. :theflyonthewall.com
07:49 EDT LOW
theflyonthewall.com: Lowe’s price target lowered to $99 from $111 at Credit Suisse
Credit Suisse analyst Seth Sigman lowered his price target for Lowe’s to $99 from $111 and reiterated a Neutral rating on the shares. The analyst believes Q3 results reflected a transitional period, where comps were still under pressure due to the many execution and store level issues, although some progress was made in laying the foundational elements of this turnaround including exiting non-core assets and optimizing its assortment and inventory position. Overall, Sigman thinks it is too early to judge the turnaround, and sees many opportunities for improvement although estimates already embed that, and there is risk the demand trends are less supportive. The roadmap in December will be the next major catalyst, he contends. :theflyonthewall.com
07:47 EDT FL, NKE
theflyonthewall.com: Jefferies says Foot Locker ‘back on its feet,’ boosts target to $62
Jefferies analyst Janine Stichter proclaims Foot Locker is “back on its feet” after the company reported upside in Q3 to both sales and margins. The analyst sees a case for both earnings upside and multiple expansion as “confidence in the top-line sustainability is restored.” She raised her price target for Foot Locker shares to $62 from $60 and keeps a Buy rating on the name Foot Locker remains Stichter’s favorite way to play Nike’s (NKE) resurgence in North America. :theflyonthewall.com
07:45 EDT ADSK
theflyonthewall.com: Autodesk price target lowered to $160 from $175 at Oppenheimer
Oppenheimer analyst Koji Ikeda lowered his price target for Autodesk to $160 from $175 on group multiples compression. The analyst believes the company’s Q3 results are another data point that Autodesk’s products are entrenched and considered strategic in its end-markets. He reiterates an Outperform rating on the shares. :theflyonthewall.com
07:43 EDT AMZN, VMW, MSFT
theflyonthewall.com: AWS has long runway for future growth, says Oppenheimer
Oppenheimer analyst Timothy Horan says that Amazon Web Services (AMZN), AWS, continues to move up the stack improving Security, AI/ML, IoT, Database services and bundling in with infrastructure to maintain prices of legacy services. The analyst expects a number of new features and tools for Lambda, Aurora and Greengrass. He also sees Amazon discussing UC&C, gaming and blockchain. AWS kicked off its hybrid offering with its VMware (VMW) partnership and Kubernetes support, but it still lacks the full stack that Microsoft (MSFT) has for hybrid deployments-which are critical for enterprise customers that want to capture the benefits of the cloud while still maintaining on-premise datacenters for sensitive workloads, he contends. Overall, Horan believes demand remains strong, and thinks only about 25% of total enterprise workloads have moved to the cloud, which gives AWS a long runway for future growth. :theflyonthewall.com
07:40 EDT TJX
theflyonthewall.com: TJX price target lowered to $52 from $57 at RBC Capital
RBC Capital analyst Brian Tunick lowered his price target on TJX to $52 after its in-line Q3 earnings and below-consensus outlook for Q4 and FY19. The analyst keeps his Outerpfor rating, noting that the company continues to post “enviable comps fueled by traffic increases and share gains”, but believes that investors are disappointed by its FY19 outlook driven by the negative impact of higher freight costs and wage inflation. :theflyonthewall.com
07:33 EDT QADA
theflyonthewall.com: Qad Inc. price target lowered to $52 from $61 at Stifel
Stifel analyst Brad Reback said Qad Inc. reported “solid” Q3 results after adjusting for foreign exchange headwinds, but noted that its subscription revenue growth is expected to decelerate in the first half of FY20 given that FY19 bookings were more back-end weighted. Stating that he is not overly concerned about this timing issue, Reback keeps a Buy rating on Qad shares, but lowered his price target to $52 from $61 to account for multiple compression across the broader software sector. :theflyonthewall.com
07:29 EDT KSS
theflyonthewall.com: Kohl’s price target lowered to $73 from $82 at RBC Capital
RBC Capital analyst Brian Tunick lowered his price target on Kohl’s to $73 and kept his Sector Perform rating. The analyst notes that the company outperformed its globally exposed peers over the past 6 months, but the latest negative reaction to its in-line Q3 results suggests “skepticism” around its longer-term growth story. Tunick adds that the initiatives at Kohl’s to increase comps may produce a mid-single-digit earnings growth in the long term, but expects the stock to remain within the 12- to- 13-times earnings trading range without accelerated EPS growth trajectory. :theflyonthewall.com
07:28 EDT KSS
theflyonthewall.com: Kohl’s faces ‘intimidating’ expectations in Q4, says Morgan Stanley
Morgan Stanley analyst Kimberly Greenberger believes Kohl’s 2018 revenue guidance appears difficult to achieve, noting that the company will require significant comp acceleration in Q4 to reach the “intimidating” bar it has set as it faces its hardest comparison of the year. She also wonders if cool weather in October has pulled some demand forward and out of the holiday quarter, which could add another challenge. She raised her Q4 comp estimate to down 2.5% from a prior view of down 3.5%, citing Kohl’s exposure to store closures and its increased marketing spending. Greenberger maintains an Underweight rating on Kohl’s with a $51 price target. :theflyonthewall.com
07:26 EDT MCD
theflyonthewall.com: McDonald’s price target raised to $202 from $197 at Wells Fargo
Wells Fargo analyst Jon Tower raised his price target for McDonald’s to $202 from $197 and reiterated an Outperform rating on the shares. The analyst thinks an underappreciated aspect of the company’s U.S. business is the brand’s technological reach, particularly its direct feed into the consumer through the app. While the app is only a few years old, Tower thinks the scale of the platform has reached a point where McDonald’s is now leaning on this channel to drive incremental sales particularly in the value category, with ripples from this felt across the industry in Q3. :theflyonthewall.com
07:23 EDT FL, NKE
theflyonthewall.com: Foot Locker price target raised to $64 from $58 at Wells Fargo
Wells Fargo analyst Tom Nikic raised his price target for Foot Locker (FL) to $64 from $58 and reiterated an Outperform rating on the shares. The analyst believes Foot Locker’s turnaround story continues to pick up steam, as he thinks the Q3 print alleviated many of the concerns that have weighed on the shares this year. Nikic continues to view Foot Locker as a “very compelling turnaround story,” driven by improving product flows, strong relationships with their key vendors such as Nike (NKE), a capable management team that has shown an ability to quickly adapt to changing market conditions, and a stock that is still fairly inexpensive. :theflyonthewall.com
07:08 EDT TGT
theflyonthewall.com: Target margin concerns unlikely to abate in near-term, says Stifel
Stifel analyst Mark Astrachan noted that Target’s Q3 gross margin was 100bps below consensus and company guidance, due to higher fulfillment costs and the timing of holiday inventory costs. The gross margin weakness more than offsets the solid growth in same-store sales, according to Astrachan, who views the Q3 results as indicative that margin concerns are unlikely to abate in the near-term. He lowered his price target on Target shares to $80 from $93 following the report and keeps a Hold rating on the stock. :theflyonthewall.com
07:07 EDT FL
theflyonthewall.com: Barclays remains bullish on shares of Foot Locker
In a post-earnings research note titled “Good Things Come to Those Who Wait,” Barclays analyst Matthew McClintock says he remains bullish on shares of Foot Locker. The company is “clearly on the path to acceleration” that management has referred to all year, which indicates 2019 “could prove to be a return to normalcy,” McClintock tells investors. He increased his estimates and keeps an Overweight rating on Foot Locker with a $70 price target. :theflyonthewall.com
07:01 EDT WEX
theflyonthewall.com: Wex price target lowered to $186 from $230 at Deutsche Bank
Deutsche Bank analyst Ashish Sabadra lowered his price target for Wex to $186 to reflect the “severe” oil price decline. The analyst now estimates a blended fuel price for 2019 and 2020 of $2.66 compared with his prior estimate of $2.95. Every 10c move in fuel prices has an 18c per share impact on Wex’s earnings, Sabadra tells investors in a research note. The analyst, however, maintains a Buy rating on the stock. He believes Wex’s fundamentals remain stable and that market share gains bode well for sustained high single- to low double-digit organic growth in 2019 and 2020. :theflyonthewall.com
06:58 EDT WYNN
theflyonthewall.com: Wynn Resorts shares set up well to outperform, says Deutsche Bank
Deutsche Bank analyst Carlo Santarelli believes Wynn Resorts management was prudent to reset the bar lower “during a period in which heroism is hardly being rewarded in gaming.” The analyst finds the guidance conservative, which he thinks sets up shares of Wynn Resorts well to outperform, relative to peers. Santarelli keeps a Buy rating on the name. :theflyonthewall.com
06:50 EDT BBY
theflyonthewall.com: Best Buy price target lowered to $81 from $87 at Piper Jaffray
Piper Jaffray analyst Peter Keith lowered his price target for Best Buy to $81 while reiterating an Overweight rating on the shares. The company reported “very solid” Q3 earnings and continues to show broad-based strength across the store, Keith tells investors in a post-earnings research note. The analyst, however, reduced his multiple assumption slightly to account for slightly slower comp and earnings growth. :theflyonthewall.com
06:47 EDT FNKO
theflyonthewall.com: Funko holiday off to a strong start, says Piper Jaffray
After meeting with management, Piper Jaffray analyst Erinn Murphy believes Funko’s holiday is off to a strong start and that her Q4 estimates have upside. The analyst came away bullish on the company’s sales roadmap and sees “ample growth” in the U.S. as well as international. She keeps an Overweight rating on Funko shares with a $24 price target. :theflyonthewall.com
06:33 EDT ADI
theflyonthewall.com: Analog Devices price target lowered to $102 from $117 at Loop Capital
Loop Capital analyst Cody Acree lowered his price target on Analog Devices to $102 to reflect the broader industry multiple contraction, modelling an 18-times forward earnings multiple and a FY20 EPS of $5.54. The analyst also keeps his Buy rating after the company’s Q4 earnings beat, saying the quarter was “not as bad as feared”, adding that investors’ positive reaction to the print “may signal an increased interest to move money back into semiconductors”. Acree still maintains a somewhat cautious view based on Analog Devices’ “commentary regarding tariff-related inflationary pressure, particularly in the industrial and automotive markets, which have been among the largest drivers of growth for the chip industry over the past few years.” :theflyonthewall.com
06:28 EDT DXCM, GOOG, GOOGL
theflyonthewall.com: Amended Verily agreement ‘major win’ for DexCom holders, says Piper Jaffray
After talking with management, Piper Jaffray analyst JP McKim believes the amended collaboration and license agreement with Alphabet’s (GOOG, GOOGL) Verily “seems like a no brainer” and is a “major win for the long term value” of DexCom (DXCM) shareholders. The royalty payments from the original agreement have been eliminated and those would have been at least a 500 basis point headwind on the margin profile of DexCom’s business, McKim tells investors in a research note. He expects the company to release some longer term margin targets at its analyst day and says “removing this future headwind is a major win.” Further, DexCom is now the preferred continuous glucose monitoring supplier into Onduo’s Type 2 diabetes management program, says the analyst. He reiterates an Overweight rating on the shares with a $157 price target. :theflyonthewall.com
06:21 EDT BJ
theflyonthewall.com: BJ’s Wholesale is ‘attractively valued’, says Loop Capital
Loop Capital analyst Laura Champine kept her Buy rating and $35 price target on BJ’s Wholesale after its Q3 earnings beat and better than expected comps of up 1.9%. The analyst also cites the management’s announcement that its “new store opening process is yielding improved early results”, forecasting the company to increase its club openings from 2 to 3-5 per year. Champine expects BJ’s Wholesale EBITDA to rise 32% with the help of the 10% membership fee increase anticipated in January, adding that the stock is “attractively valued” at 13-times forward earnings and 9-times on enterprise value to expected EBITDA multiple basis. :theflyonthewall.com
06:17 EDT EMES
theflyonthewall.com: Emerge Energy price target lowered to $5 from $7 at Stifel
Stifel analyst Stephen Gengaro lowered his price target for Emerge Energy Services to $5 from $7 after taking over coverage of the name. He keeps his firm’s Hold rating on the shares. Despite the Q4 slowdown, frac sand demand should continue to rise sharply in 2019-2020 driven by both rising U.S. completion activity and increased sand usage per well, Gengaro tells investors in a research note. The analyst, however, adds that supply is “simply rising too fast.” Over the past year there has been a significant rise in lower cost in-basin frac sand capacity that is clearly weighing on both demand and price for Northern White Sand, says Gengaro. :theflyonthewall.com
06:10 EDT CAL
theflyonthewall.com: Caleres price target lowered to $30 from $37 at Loop Capital
Loop Capital analyst Laura Champine lowered her price target on Caleres to $30 and kept her Hold rating after its Q3 earnings miss. The analyst notes that while the company met her forecast with a 2.8% increase in same store sales as its brand portfolio recovered, its gross margins were “hammered” given the aggressive promoting by the Famous Footwear brand, falling 60bps from last year. Champine also lowers her FY18 EPS view to $2.35 from $2.49 and FY19 view to $2.56 from $2.76. :theflyonthewall.com
06:10 EDT FL
theflyonthewall.com: Foot Locker price target raised to $51 from $42 at Piper Jaffray
Piper Jaffray analyst Erinn Murphy raised her price target for Foot Locker to $51 following the company’s better than expected Q3 results. The analyst says that while her long-term view is unchanged, she commends Foot Locker’s execution. The analyst increased her estimates but keeps a Neutral rating on the shares. :theflyonthewall.com
06:06 EDT CRM
theflyonthewall.com: Salesforce price target lowered to $160 from $190 at Piper Jaffray
Piper Jaffray analyst Alex Zukin lowered his price target for Salesforce to $160 ahead of the company’s Q3 results on November 27 and keeps an Overweight rating on the name. A “healthy” demand environment, “strong” execution in multiple verticals, MuleSoft acceleration and a “robust” pipeline heading into the Q4 period support “sustained growth,” Zukin tells investors in a pre-earnings research note. The analyst’s reduced price target reflects the “meaningful multiple contraction across the sector” but he points out Salesforce is trading below peer averages. :theflyonthewall.com
05:12 EDT SE
theflyonthewall.com: Sea Limited posted ‘strong’ Q3 results, says Piper Jaffray
Piper Jaffray analyst Michael Olson says Sea Limited had a “strong” Q3 with revenue and adjusted EBITDA ahead of plan. The combination of GDP and connectivity growth, along with a “secular rising tide” in the company’s core verticals, will drive “strong” near-term growth, followed by “material” long-term profitability, Olson tells investors in a post-earnings research note. He lowered his price target for the shares to $18 from $19 on his sum-of-the-parts valuation but maintains an Overweight rating on Sea Limited. :theflyonthewall.com
05:09 EDT ADSK
theflyonthewall.com: Autodesk price target raised to $76 from $64 at MUFG
MUFG analyst Stephen Bersey raised his price target for Autodesk to $76 after the company’s Q3 results topped his estimates. Autodesk had a solid quarter, as revenue, annualized recurring revenue , and annualized revenue per subscription “exhibited momentum,” Bersey tells investors in a post-earnings research note. The analyst also thinks the acquisition of PlanGrid should complement the company’s BIM360 product offering. However, Bersey continues to have questions about the longer-term growth prospects of Autodesk and “potentially its continued reliance on acquisitions to help drive growth.” He keeps an Underweight rating on the shares. :theflyonthewall.com
04:55 EDT ADI
theflyonthewall.com: Analog Devices price target raised to $105 from $100 at B. Riley FBR
B. Riley FBR analyst Craig Ellis raised his price target for Analog Devices to $105 saying the company’s “solid” quarter ad “above-peer” guidance shows the company’s favorable portfolio positioning. The analyst keeps a Buy rating on the shares. :theflyonthewall.com

SYNDICATE
07:28 EDT TLC
theflyonthewall.com: Taiwan Liposome 3.75M share Secondary priced at $5.80
The deal size was cut to $21.8M in common stock from $30M in common stock. Cantor Fitzgerald acted as lead book running manager for the offering. :theflyonthewall.com
GENERAL NEWS
08:20 EDT
theflyonthewall.com: U.S. Durable Goods Preview
U.S. Durable Goods Preview: October durable goods orders are expected to drop by 3.5% (median -2.7%) on the month while shipments grow 0.5% and inventories grow by 0.3%. The data compare to respective September figures which had orders down 3.5%, shipments up 1.2% and inventories up 0.7%. :theflyonthewall.com
08:20 EDT
theflyonthewall.com: U.S. initial jobless claims preview:
U.S. initial jobless claims preview: initial jobless claims are expected to edge up 1k to 217k in the week ended November 17 (median 215k), from 216k in the prior week. Forecast risk remains downward, however, as the economy accelerates and the labor market continues to tighten. Continuing claims are expected to fall 26k to 1,650k for the week-ended November 3, from 1,676k in the prior week. The 202k figure in the week ended September 15 marked the lowest reading since December of 1969. preview. :theflyonthewall.com
08:15 EDT
theflyonthewall.com: Jobless Claims to be reported at 08:30
Week of 11/17 Jobless Claims will be reported at 08:30 . Current consensus is 215K :theflyonthewall.com
08:15 EDT
theflyonthewall.com: Durable Goods Orders to be reported at 08:30
October Durable Goods Orders will be reported at 08:30 . Current consensus is [2.4]% for the month :theflyonthewall.com
08:15 EDT
theflyonthewall.com: Durable Goods Orders Ex-transportation to be reported at 08:30
October Durable Goods Orders Ex-transportation will be reported at 08:30 . Current consensus is 0.4% for the month :theflyonthewall.com
07:54 EDT SPY, SPX
theflyonthewall.com: President Trump thanks Saudi Arabia for oil prices getting lower
President Donald Trump tweeted: “Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let’s go lower!” He followed that tweet with another, stating: “MAKE AMERICA GREAT AGAIN!” Reference Link :theflyonthewall.com
07:37 EDT
theflyonthewall.com: Futures suggesting modest bounce for stocks
Stock futures are suggesting a modest bounce following yesterday’s major selloff, which has pushed 75% of the S&P into correction mode. The Dow now stands more than 9% below its record high and is just one bad trading session away from joining the other major averages in correction territory. All three of the major averages are sitting at three-week lows. Investors are hoping today’s early move is the beginning of a “Santa Claus rally,” which occurs when there is a flurry of buying into the end of the year. In early pre-market trading, Dow futures are 117 points above fair value, Nasdaq futures are 53 points above fair value and S&P futures are 15 points above fair value. :theflyonthewall.com
07:35 EDT
theflyonthewall.com: U.S. MBA mortgage market index sank 0.1%
U.S. MBA mortgage market index sank 0.1% in data released earlier, accompanied by a 3.1% increase in the purchase index and a 5.0% drop in the refinancing index for the week ended November 16. The 30-year fixed mortgage rate fell 1 basis point to 5.16% after the CPI report was relatively tame and Fedspeak from Powell and Clarida acknowledged global slowdown risks. Housing data has been mixed so far this week, for an update on the sector see our existing home sales, housing starts and new home sales. :theflyonthewall.com
07:30 EDT
theflyonthewall.com: European stock markets broadly higher,
European stock markets broadly higher, with DAX and FTSE 100 posting gains of 0.55% and 0.65% respectively. The MIB outperformed, but is down from highs amid conflicting signals on the lingering budget dispute with Brussels. Overall though stock market sentiment started to stabilise during the Asian session and improved further in Europe. Tech stock concerns still saw Topix and Nikkei closing with losses of -0.60% and -0.35% respectively, but the Hang Seng was up 0.51% at the close, Shanghai and Shenzen Comp closed with gains of 0.21% and 0.54% respectively as officials hammer out the details of a meeting between President Trump and Chins’a President Xi Jinping in Buenos Aires on December 1. Oil prices moved higher and the front end Nymex future is trading comfortably above the USD 54 per barrel mark, and U.S. futures are moving higher, although the multitude of risks from trade tensions to Brexit concerns will likely limit gains for now, even if the OECD forecast remains cautiously optimistic that a hard landing for the world economy can be avoided.:theflyonthewall.com
07:20 EDT
theflyonthewall.com: FX Update: The Dollar has traded mixed
FX Update: The Dollar has traded mixed, gaining versus the Yen while losing ground to Dollar Bloc currencies, with a rebound in European equity markets and S&P 500 futures facilitating some squaring out of risk-off positioning. EUR-USD recouped to near 1.1400 from the 113.58 low see yesterday, while USD-JPY lifted back above 113.00 during the London AM session. Most Yen crosses have also lifted, too. Sino-U.S. trade tensions remain on the boil, with the Trump administration saying that China had “no altered” its alleged predatory trade practices. In data today, Japan’s all-industry activity index contracted by 0.9% m/m in September. AUD-USD lifted out of yesterday’s one-week low at 0.7202 to the 0.7235 area. USD-CAD steadied after rallying strongly during yesterday’s 5%-plus oil price rout, which drove underperformance in the Canadian Dollar. The pair has retreated back under 1.3300 after leaving a five-month high at 1.3318 yesterday. Oil prices have rebounded by 2% so far today. Sterling has been trading neutrally so far today. Cable flipped back above 1.2800, tracking EUR-USD. The UK government and Brussel’s are scrambling to finalise a deal ahead of Sunday’s special EU summit, though it remains highly uncertain that the Brexit plan will pass in parliament. There is a flurry of U.S. economic data releases today ahead of the Thanksgiving holiday tomorrow. :theflyonthewall.com
07:03 EDT
theflyonthewall.com: MBA Mortgage Applications Composite Index data reported
Week of 11/16 MBA Mortgage Applications Composite Index down -0.1% for the week :theflyonthewall.com
07:00 EDT
theflyonthewall.com: Treasury Market Outlook:
Treasury Market Outlook: 10-year Treasury yields moved up overnight, as stock market sentiment started to stabilise, with stock futures moving higher. As of 11:41GMT the 10-year yield is up 0.9 bp at 3.072%, the 2-year yield gained 0.4 bp and is at 2.808%, leaving the curve steeper. This mirrors developments in Europe, where Bund and Gilt yields are up 1.9 bp and 1.1 bp, although both are down from highs on ongoing Italy and Brexit jitters, as PM May is in Brussels for talks with European Commission President Juncker to smooth out remaining issues. The OECD cut back its growth forecast for the world economy but remained cautiously optimistic that a hard landing can be avoided. Still fears that ongoing trade tensions will have a larger impact on the world economy remain even if Chinese stock markets managed to close with modest gains on hopes of progress at the December 1 meeting between U.S. President Trump and China’s leader Xi Jinping. In Europe DAX and FTSE 100 are up 0.66% and 0.69% respectively after a mixed close in Asia where Topix and Nikkei still headed south. A nearly 1% gain in the Nasdaq, however, is leading U.S. futures higher. The U.S. calendar is busy into long weekend and includes weekly jobless claims, as well as consumer sentiment data. :theflyonthewall.com
06:45 EDT theflyonthewall.com: Week of 11/16 MBA Mortgage Applications to be released at 07:00 :theflyonthewall.com
05:45 EDT
theflyonthewall.com: OECD cautiously optimistic on world growth.
OECD cautiously optimistic on world growth. The overall forecast for 2019 was cut back to 3.5% from 3.7% with trade tensions and rising rates taking their toll, but it seems the organisation is cautiously optimistic that a hard landing can be avoided. Instead the global economy is heading for a fragile soft landing as the expansion has reached its limit for now. U.S. growth is seen at 2.9% this year, falling to 2.7% and 2.1% in 2019 and 2020. For the Eurozone the OECD sees growth of 1.9% this year, followed by 1.8% and 1.6% over the next two years and with Italy continuing to underperform. The forecasts will further undermine Rome’s budget plans, which foresee a gradual reduction in deficit and debt levels based on the assumption that their reform package will lift growth lastingly. For the Brexit hit U.K. economy the OECD sees growth of 1.4% and 1.1% in 2019 and 2020 after an estimated 1.3% this year and with the risk of a hard Brexit hanging over the outlook. :theflyonthewall.com
04:55 EDT theflyonthewall.com: Week of 11/16 MBA Mortgage Applications to be released at 07:00 :theflyonthewall.com
04:55 EDT
theflyonthewall.com: Jobless Claims to be reported at 08:30
Week of 11/17 Jobless Claims will be reported at 08:30 . Current consensus is 215K :theflyonthewall.com
04:55 EDT theflyonthewall.com: Week of 11/16 EIA Petroleum Status Report to be released at 10:30 :theflyonthewall.com
04:55 EDT theflyonthewall.com: 6-Month Bill Announcement to be released at 11:00 :theflyonthewall.com
04:55 EDT theflyonthewall.com: 3-Month Bill Announcement to be released at 11:00 :theflyonthewall.com
04:55 EDT theflyonthewall.com: Week of 11/16 EIA Natural Gas Report to be released at 12:00 :theflyonthewall.com
04:55 EDT theflyonthewall.com: Week of 11/21 Baker-Hughes Rig Count to be released at 13:00 :theflyonthewall.com
04:55 EDT
theflyonthewall.com: Durable Goods Orders to be reported at 08:30
October Durable Goods Orders will be reported at 08:30 . Current consensus is [2.4]% for the month :theflyonthewall.com
04:55 EDT
theflyonthewall.com: Durable Goods Orders Ex-transportation to be reported at 08:30
October Durable Goods Orders Ex-transportation will be reported at 08:30 . Current consensus is 0.4% for the month :theflyonthewall.com
04:55 EDT
theflyonthewall.com: Existing Home Sales to be reported at 10:00
October Existing Home Sales will be reported at 10:00 . Current consensus is 5.210M :theflyonthewall.com
04:55 EDT
theflyonthewall.com: Consumer Sentiment Index to be reported at 10:00
Consumer Sentiment Index will be reported at 10:00 . Current consensus is 98.3:theflyonthewall.com
04:55 EDT
theflyonthewall.com: Leading Indicators to be reported at 10:00
October Leading Indicators will be reported at 10:00 . Current consensus is 0.1% for the month :theflyonthewall.com
03:00 EDT
theflyonthewall.com: FX Action: USD-CAD has steadied
FX Action: USD-CAD has steadied after rallying strongly during yesterday’s 5%-plus oil price rout, which drove underperformance in the Canadian Dollar. The pair has retreated back under 1.3300 after leaving a five-month high at 1.3318 yesterday. Analysts advise trend following. Support comes in at 1.3236-40. The Canadian calendar brings the release of September wholesale shipments today, which is not normally a market mover. Analysts expect to 0.3% rise after the 0.1% contraction in August. Canada’s Federal Government will also release its annual fall economic and fiscal update. CPI and retail sales data are due on Friday. Analysts project CPI to hold steady at 0.0% m/m in October, which should leave the annual growth rate at 2.1% y/y, down from 2.2% in September. Analysts forecast core CPI at 2% y/y. Analysts see retail sales rising 0.1% m/m in September after slipping 0.1% in August. :theflyonthewall.com
02:35 EDT
theflyonthewall.com: FX Update: The Dollar majors have traded mixed
FX Update: The Dollar majors have traded mixed, with the U.S. currency gaining versus the Yen but losing ground against rebounding Dollar Bloc currencies, with a lift-from-lows and rebound in S&P 500 futures facilitating some squaring out of risk-off positioning. USD-JPY has lifted three-day highs in the upper 112.0s, and most Yen crosses have also lifted. Asian stocks managed to claw back some lost ground after a rough start, although most have remained in negative territory. Sino-U.S. trade tensions remain on the boil, with the Trump administration saying China had “no altered” its alleged predatory trade practices. In data, Japan’s all-industry activity index contracted by 0.9% m/m in September. EUR-USD has recouped to 1.1400 from the 113.58 low see yesterday, while AUD-USD has lifted out of yesterday’s one-week low at 0.7202 to the 0.7240 area. USD-CAD has steadied after rallying strongly during yesterday’s 5%-plus oil price rout, which drove underperformance in the Canadian Dollar. The pair has retreated back under 1.3300 after leaving a five-month high at 1.3318 yesterday. :theflyonthewall.com
02:00 EDT
theflyonthewall.com: FX Action: USD-JPY has traded moderately firmer
FX Action: USD-JPY has traded moderately firmer, to the three-day highs in the upper 112.0s. Most Yen crosses have also lifted, too, as the Japanese currency came under pressure as Asian stocks managed to claw back some lost ground after a rough start, although most have remained in negative territory. The Nikkei 225 closed 0.4% for the worse, while China’s SSE is showing a loss of 0.1% as of the late PM session. S&P 500 futures are up 0.5% after the cash index close out on Wall Street with a hefty 1.8% loss. Sino-U.S. trade tensions remain on the boil, with the Trump administration saying China had “no altered” its alleged predatory trade practices. In data, Japan’s all-industry activity index contracted by 0.9% m/m in September. USD-JPY’s fundamentals (yield differentials and the associated contrast between Fed and BoJ policy paths) remain supportive, though periodic episodes of risk aversion have been an intermittent offsetting bearish force. USD-JPY has resistance at 113.00-05, which encompasses the prevailing situation of the 50-day moving average. Support comes in at 112.60-63. :theflyonthewall.com
01:45 EDT
theflyonthewall.com: Asian Market Wrap:
Asian Market Wrap: 10-year Treasury yields are up 0.4 bp at 3.066%, JGB rates fell back -0.8 bp to 0.085%. 10-year Treasury yields are still up versus last week’s close, and so far central banks are putting on a brave face and remain on course to take out more stimulus, but global markets are clearly struggling amid the multitude of uncertainties and risks. The sell off on stock markets continues and concerns are spreading to corporate bond markets, which investors struggling to find havens. Japanese indices are broadly lower, although the pace of the decline slowed somewhat during the Asian session, and the -0.35% drop in the Nikkei looks modest compared to the 2.2% slide in the Dow Jones yesterday. Most Asian markets managed to make of some of their early losses during the course of the session and oil prices have come back from an early low of USD 53.39 and are trading at USD 54.14 per barrel. The tech stock sector remains under pressure and the Topix is down 0.60%. The Hang Seng lost -0.58%, while mainland China bourses. managed to pare losses and Shanghai and Shenzen Comp are now up 0.04% and 0.28% respectively as officials hammer out the details of a meeting between President Trump and Chins’a President Xi Jinping in Buenos Aires on December 1. U.S. stock futures are also moving higher. :theflyonthewall.com

PERIODICALS
07:41 EDT BDRBF
theflyonthewall.com: Bombardier to cut 490 additional jobs in Belfast, BBC reports
Bombardier is planning to eliminate 490 additional jobs from its Belfast operations after announcing it was cutting 5,000 positions across its global operations earlier this month, BBC reports, citing the firm. The company said it had “reviewed our manpower requirements in Belfast” and “regrets to confirm that we must reduce our workforce”, adding “We continue to explore opportunities to help mitigate the number of compulsory redundancies. However, we need to continue to cut costs and improve the efficiency of our operations to help ensure our long-term competitiveness.” Reference Link :theflyonthewall.com
07:41 EDT GS
theflyonthewall.com: KIPCO hires Goldman Sachs for sale of 60.5% OSN stake, Reuters reports
Kuwait Projects, or KIPCO, has hired Goldman Sachs to advise it on the sale of its majority stake in OSN, according to Reuters, citing sources familiar with the matter. OSN is down 10% year-over-year in income and is facing negative profitability with lessened demand in core markets. The KIPCO board has already approved a divestiture of its 60.5% equity interest in OSN, which represents over a quarter of its portfolio in value. Reference Link :theflyonthewall.com
07:37 EDT XPO, VZ
theflyonthewall.com: Senators ask Verizon, XPO about warehouse conditions for women, NY Times reports
Nine senators wrote letters to the chief executives of Verizon (VZ) and XPO Logistics (XPO) demanding that the companies account for the conditions in a Memphis warehouse where several women suffered miscarriages, Natalie Kitroeff of New York Times reports. The letters follow a New York Times investigation last month that found six women had lost their pregnancies after being denied breaks from heavy lifting at the XPO warehouse which handles cellphones and tablets Verizon ships to customers on the East Coast. Reference Link :theflyonthewall.com
07:37 EDT WFC
theflyonthewall.com: Wells Fargo fights to shut customers out of auto payout plan, Reuters reports
Wells Fargo is fighting to leave some customers out of a plan to compensate roughly 600,000 drivers it pushed into unnecessary car insurance contradicting its promise to help every customer who was hurt, Reuters reports, citing court documents. The bank was fined $1B by U.S. regulators over the insurance program which ran from 2002 to 2016 but Wells Fargo only plans to compensate drivers forced into policies from 2005 onwards. Reference Link :theflyonthewall.com
07:31 EDT NSANY, RNSDF
theflyonthewall.com: Nissan seeks to weaken Renault influence, Reuters reports
Japan said it is prepared to work for the stability of the Nissan (NSANY)-Renault (RNSDF) global alliance after the arrest of chairman Carlos Ghosn, but a Nissan executive said the automaker is looking to weaken the control of its French partners, Reuters reports, citing the executive. “We need to return to the original idea of a win-win relationship,” the executive said, adding it should be “a more equal relationship than before” and a reduction of Renault’s stake should be an option under consideration. Reference Link :theflyonthewall.com
07:25 EDT DB, DNSKY
theflyonthewall.com: Deutsche exec says bank had limited need to know of Danske details, Reuters says
Deutsche Bank’s (DB) chief regulatory officer Sylvie Matherat said the bank only played a secondary role as a correspondent bank to scandal-hit Danske Bank (DNSKY), limiting what it needed to know about the people behind the transactions, Reuters reports, citing Matherat. Danske is facing allegations of money laundering via its Estonia brancj and Deutsche reportedly helped process up to $150B in suspicious payments. Reference Link :theflyonthewall.com
07:23 EDT AAPL
theflyonthewall.com: Foxconn, biggest iPhone assembler, cutting expenses and jobs, Bloomberg reports
Foxconn Technology Group, the biggest assembler of Apple (AAPL) iPhones, plans to reduce expenses in 2019 by $2.9B amid a “very difficult and competitive year,” Bloomberg reports, citing an internal company memo. Foxconn’s iPhone business needs to reduce expenses by 6B yuan next year and the company plans to eliminate about 10% of non-technical staff, according to the memo obtained by Bloomberg. Reference Link :theflyonthewall.com
07:20 EDT AMZN
theflyonthewall.com: Amazon opens Spanish pop-up store, Reuters reports
Amazon opened its first pop-up store in Spain selling everything from electronic goods to video games to clothing and will open similar stores in Italy, Germany and Britain, Reuters reports, citing an Amazon spokeswoman. The European pop-up locations signal how the online retailer is increasingly turning to physical stores to attract and retain customers. Reference Link :theflyonthewall.com
07:16 EDT NVDA
theflyonthewall.com: Nvidia to provide AI platform for Chinese EV startups, Reuters reports
Nvidia has signed separate deals with Chinese electric vehicle startups XPeng Motors, Singulato Motors and SF Motors to develop autonomous driving technology, Reuters reports, citing comments made by CEO Jensen Huang. The CEO said XPeng and Singulato will use Nvidia’s artificial intelligence driving chip Xavier and its computing platform to develop hardware for autonomous driving.Reference Link :theflyonthewall.com
07:13 EDT NSANY
theflyonthewall.com: Nissan chairman Carlos Ghosn to be detained for 10 days, Reuters reports
Tokyo District Court has ruled that Nissan chairman Carlos Ghosn and representative director Greg Kelly will be detained for 10 days, according to Reuters, citing Kyodo News. Ghosn was arrested after an internal investigation by Nissan found he allegedly engaged in years of malpractice, including personal use of company money and misrepresenting earnings. Reference Link:theflyonthewall.com
07:05 EDT RNSDF, NSANY
theflyonthewall.com: France, Japan keen to pursue Renault-Nissan consolidation, Reuters reports
French Finance Minister Bruno Le Maire said France and Japan are looking to pursue the consolidation of the alliance between Renault (RNSDF) and Nissan (NSANY), Reuters reports, citing Le Maire. “At this stage, we do not have any evidence to support the accusations against Mr Carlos Ghosn,” he said. “I would like to emphasise the Renault board’s request that Nissan share all the evidence available to it.” Reference Link :theflyonthewall.com
07:00 EDT HYMTF
theflyonthewall.com: U.S. prosecutors probe Hyundai, Kia vehicle recalls, Reuters reports
U.S. prosecutors are probing whether Hyundai Motor and affiliate Kia Motors’ vehicle recalls over engine defects were conducted properly, Reuters reports, citing a person with knowledge of the matter and documents. The firms recalled roughly 1.7M vehicles in 2015 and 2017 in the U.S. in one of their biggest recalls in the country citing an engine failure that raises the risk of an accident.Reference Link :theflyonthewall.com
06:43 EDT GPS
theflyonthewall.com: Gap reviews whether to close hundreds of weaker locations, WSJ reports
Gap is evaluating whether to shutter hundreds of underperforming stores at its namesake brand after the unit reported a 7% drop in quarterly comparable sales, the Wall Street Journal reports, citing comments made by CEO Art Peck. The brand, which has roughly 800 locations in North America, is reviewing some flagship stores as well as “hundreds of other stores” based on profits, traffic trends and other factors. “We have had a lot of stores that are in the bottom half of the fleet that have continued to deteriorate over time, and it’s my strong belief that we’ve kicked the can down the road on this and offered a deteriorating customer experience and it does have a negative effect on the health of the brand,” Peck said. Reference Link :theflyonthewall.com
06:37 EDT TCEHY, SPOT
theflyonthewall.com: Tencent Music Entertainment could push IPO until 2019, Reuters reports
Tencent Music Entertainment, or TME, is facing crunch time on its $2B IPO scheduled for November and has discussed pushing the IPO date back until early 2019, according to Reuters, citing sources involved. TME is seen as China and Tencent’s (TCEHY) answer to Spotify (SPOT). While no decision has been made by the company yet, it reportedly is emphasizing valuation and market conditions. The IPO was initially scheduled for October before being pushed back the first time to November. Reference Link :theflyonthewall.com
06:36 EDT UAL
theflyonthewall.com: United wins victory in Newark Airport fee dispute, WSJ reports
The Federal Aviation Administration has sided with United Continental Holdings in their dispute with the Port Authority of New York and New Jersey over what they claimed were exorbitant fees at Newark Liberty International Airport, the Wall Street Journal reports, citing the FAA. The agency said the Port Authority was not transparent in establishing flight fees and had poor record-keeping and accounting practices and also said it had improperly used airport revenue to cover the cost of other projects. Reference Link :theflyonthewall.com
06:32 EDT AAPL
theflyonthewall.com: Apple in talks to provide veterans access to electronic health records, WSJ says
Apple is in talks with the Department of Veteran Affairs to offer portable electronic health records to military veterans in a partnership that would streamline patients’ hospitals visits and enable the company to tap millions of new customers, the Wall Street Journal reports, citing people familiar with the effort. Apple is planning to create special software tools allowing the VA’s estimated 9M veterans currently enrolled to transfer their health records to iPhones and provide engineering support to the agency. Reference Link :theflyonthewall.com
06:26 EDT JD
theflyonthewall.com: JD.com ‘Singles Day’ fueled by illegal student labor, FT reports
Over 100,000 employees helped JD.com sort, pack and ship $23B of goods during China’s annual Singles Day sales event but hundreds of them were vocational school students who were told they had to work 12- to 16-hour shifts in some cases through the night, the Financial Times reports, citing students. The students, who worked at a steep discount to the minimum wage, should not have worked any overtime or night shifts under Chinese law. Reference Link :theflyonthewall.com
06:21 EDT DNSKY
theflyonthewall.com: Danske Bank faces money laundering lawsuit, FT reports
Danske Bank is facing a lawsuit from an international coalition of class-action law firms who claim investors lost billions of dollars due to the fallout from its EUR200B money laundering scandal, the Financial Times reports, citing Nemeth Sigetty, a Danish law firm. The move is the most serious civil case for damages so far and comes after shares in the bank have dropped by roughly 50% this year as the scandal intensified. Reference Link :theflyonthewall.com
06:13 EDT NSANY, RNSDF, MMTOF
theflyonthewall.com: Japan calls for stable alliance among Nissan, Renault, Mitsubishi, Reuters says
Japan’s Chief Cabinet Secretary Yoshihide Suga said he believes it is important for Nissan Motor (NSANY), Renault (RNSDF) and Mitsubishi (MMTOF) to maintain a stable alliance, Reuters reports, citing Suga. The automakers’ alliance has been dealt a blow by the arrest of Nissan’s chairman Carlos Ghosn on allegations of financial misconduct. Reference Link :theflyonthewall.com
06:01 EDT NSANY
theflyonthewall.com: Japan prosecutors mull bringing case against Nissan, Reuters reports
Japanese prosecutors are mulling bringing a case against Nissan after chairman Carlos Ghosn’s arrest on allegations of financial misconduct, Reuters reports, citing the Asahi Shimbun daily. Prosecutors said Ghosn and representative director Greg Kelly conspired to under-report Ghosn’s compensation over five years beginning in 2010 as being roughly half of the actual Y10B, or $88.65M, which means the company also bore responsibility. Reference Link :theflyonthewall.com
06:00 EDT FB
theflyonthewall.com: Facebook’s Sandberg says Definers referenced in some emails, TechCrunch reports
In an internal memo obtained by TechCrunch, Facebook Chief Operating Officer Sheryl Sandberg said, “When I read the story in New York Times last week, I didn’t remember a firm called Definers. I asked our team to look into the work Definers did for us and to double-check whether anything had crossed my desk. Some of their work was incorporated into materials presented to me and I received a small number of emails where Definers was referenced. I also want to emphasize that it was never anyone’s intention to play into an anti-Semitic narrative against Mr. Soros or anyone else. Being Jewish is a core part of who I am and our company stands firmly against hate. The idea that our work has been interpreted as anti-Semitic is abhorrent to me – and deeply personal.” :theflyonthewall.com
05:37 EDT FB
theflyonthewall.com: Zuckerberg tells CNN stepping down as Facebook chairman ‘not the plan’
In an interview with CNN, Facebook CEO Mark Zuckerberg said stepping down as the company’s chairman is “not the plan.” Zuckerberg also expressed support for Chief Operating Officer Sheryl Sandberg. “Sheryl is a really important part of this company and is leading a lot of the efforts for a lot of the biggest issues that we have,” Zuckerberg told CNN Business. “She’s been an important partner to me for ten years. I’m really proud of the work that we’ve done together and I hope that we work together for decades more to come.” He added, “”A lot of the criticism around the biggest issues has been fair, but I do think that if we are going to be real, there is this bigger picture as well, which is that we have a different world view than some of the folks who are covering us.” Reference Link :theflyonthewall.com