Market Wrap: Manufacturing Index Rises to Multi-Year Highs; Apple: No Breach in Recent Photo Leak; Merger Monday! Sep 2, 2014 05:18PM

Market wrap for September 2nd

End of the Day: S&P 500 down 1.1 to 2,002.28; Dow Jones down 30.9 to 17,067.56; Nasdaq up 17.9 to 4,598.19

* According to the Institute for Supply Management: The August PMI registered 59 percent, an increase of 1.9 percentage points from July's reading of 57.1 percent, indicating continued expansion in manufacturing. (Consensus estimates were looking for a reading of 57.) This month's PMI reflects the highest reading since March 2011 when the index registered 59.1 percent.

The New Orders Index registered 66.7 percent, an increase of 3.3 percentage points from the 63.4 percent reading in July, indicating growth in new orders for the 15th consecutive month. The Production Index registered 64.5 percent, 3.3 percentage points above the July reading of 61.2 percent. The Employment Index grew for the 14th consecutive month, registering 58.1 percent, a slight decrease of 0.1 percentage point below the July reading of 58.2 percent. Inventories of raw materials registered 52 percent, an increase of 3.5 percentage points from the July reading of 48.5 percent, indicating growth in inventories following one month of contraction. The August PMI® is led by the highest recorded New Orders Index since April 2004 when it registered 67.1 percent. At the same time, comments from the panel reflect a positive outlook mixed with caution over global geopolitical unrest.

* The U.S. Census Bureau of the Department of Commerce announced that construction spending during July 2014 was estimated at a seasonally adjusted annual rate of $981.3 billion, 1.8 percent (±1.6%) above the revised June estimate of $963.7 billion. (Consensus estimates were looking for a gain of 1.0 percent.) The July figure is 8.2 percent (±2.3%) above the July 2013 estimate of $906.6 billion. During the first 7 months of this year, construction spending amounted to $535.4 billion, 7.9 percent (±1.5%) above the $496.3 billion for the same period in 2013.

* Dollar General (NYSE: DG) announced that it has sent an enhanced acquisition proposal to the Board of Directors of Family Dollar Stores, Inc. (NYSE: FDO). Under the terms of the revised proposal, Dollar General would increase its all-cash proposal for all outstanding shares of Family Dollar to $80.00 per share. To provide even greater certainty of consummation to the Family Dollar Board, Dollar General also increased the number of stores that it would be willing to agree to divest to 1,500 if ordered by the Federal Trade Commission (“FTC”) and, as further evidence of its confidence in its ability to obtain antitrust approval, has agreed to pay a $500 million reverse break-up fee to Family Dollar relating to antitrust matters. All other terms and conditions of the proposal remain unchanged.

* Compuware (Nasdaq: CPWR) and Thoma Bravo jointly announced that Compuware has entered into a definitive agreement to be acquired by leading private equity investment firm Thoma Bravo, LLC, in a transaction valued at approximately $2.5 billion. Under the terms of the agreement, pending shareholder approval, Compuware shareholders will receive an aggregate value of approximately $10.92 per share.

* Apple (Nasdaq: AAPL) issued the following statement on Tuesday: We wanted to provide an update to our investigation into the theft of photos of certain celebrities. When we learned of the theft, we were outraged and immediately mobilized Apple’s engineers to discover the source. Our customers’ privacy and security are of utmost importance to us. After more than 40 hours of investigation, we have discovered that certain celebrity accounts were compromised by a very targeted attack on user names, passwords and security questions, a practice that has become all too common on the Internet. None of the cases we have investigated has resulted from any breach in any of Apple’s systems including iCloud or Find my iPhone. We are continuing to work with law enforcement to help identify the criminals involved.

* In a 13G filing on Zynga (Nasdaq: ZNGA), hedge fund Eminence Capital disclosed a 5.1 percent, or 38,067,989 share, stake in the company. This is up 43.48 percent from the 26,531,473 shares held at the end of the latest quarter ending June 30, 2014.

* Home Depot (NYSE: HD) shares dropped Tuesday on reports of a massive credit card breach. According to reports, Home Depot is working with banks and law enforcement agencies to investigate the suspicious activity. The article cites spokesperson Paula Drake. The report went on to say multiple banks are seeing evidence of a massive breach. For more color, click here.

* Halliburton (NYSE: HAL) announced that it has reached an agreement to settle a substantial majority of the plaintiffs’ class claims asserted against the company as a result of the April 20, 2010 Macondo well incident in the Gulf of Mexico. The approximately $1.1 billion settlement, which includes legal fees, is subject to approval by the United States District Court for the Eastern District of Louisiana, and will be paid into a trust until all appeals have been resolved in three installments over the next two years. The company’s previously accrued loss contingency provision relating to the multi-district litigation proceedings is currently $1.3 billion.

* Norwegian Cruise Line (Nasdaq: NCLH) has entered into a definitive agreement to acquire Prestige Cruises International, Inc. ("Prestige"), the market leader in the upscale cruise segment and parent company of Oceania Cruises and Regent Seven Seas Cruises, in cash and stock for a total transaction consideration of $3.025 billion, including the assumption of debt.

* Digital Ally (Nasdaq: DGLY) ran higher Tuesday following reports that police officers in Ferguson, MO, began wearing the camera devices on their uniforms this weekend. Digital Ally and Safety Visions donated about 50 cameras.

* Select Income REIT (NYSE: SIR) announced that its Board has unanimously approved a definitive merger agreement to acquire all of the outstanding common stock of Cole Corporate Income Trust (CCIT) for approximately $3.0 billion, payable in a combination of cash and SIR common shares plus the assumption of certain mortgage debt, to create an office and industrial net lease REIT leader. The transaction is subject to approval by SIR and CCIT shareholders and other customary conditions, and it is expected to close during the first quarter of 2015.

* Exelixis, Inc. (Nasdaq: EXEL) announced top-line results from the final analysis of COMET-1, the phase 3 pivotal trial of cabozantinib in men with metastatic castration-resistant prostate cancer (mCRPC) whose disease progressed after treatment with docetaxel as well as abiraterone and/or enzalutamide. The trial did not meet its primary endpoint of demonstrating a statistically significant increase in overall survival (OS) for patients treated with cabozantinib as compared to prednisone. The median OS for the cabozantinib arm of the trial was 11.0 months versus 9.8 months for the prednisone arm (hazard ratio 0.90; 95% confidence interval 0.76 – 1.06; p value 0.212).


Notable 52-Week Highs and Lows of the Day 9/2: (DGLY) (AAPL) (TSLA) High; (EXEL) (CONN) (MPEL) Low Sep 2, 2014 02:53PM

52-Week High:
  • Digital Ally (Nasdaq: DGLY) $32.87. Shares showing additional gains as officers in Ferguson began wearing the camera devices on their uniforms this weekend. Digital Ally and Safety Visions donated about 50 cameras.

  • Tesla Motors, Inc. (Nasdaq: TSLA) $284.89. Tesla Motors rising as Stifel Nicolaus upgraded the stock from Hold to Buy an set a target price of $400. For more color, click here.

  • Apple Inc. (Nasdaq: AAPL) $103.74. Apple moving higher today as Piper Jaffray raised its target price on the stock from $105 to $120 and Nomura raised its target from $95 to a modest $104. Shares are now up over 31 percent for 2014.

  • China HGS Real Estate Inc. (Nasdaq: HGSH) $10.50. China HGS Real Estate rising after it announced that the Company signed its second shanty area rebuilding framework agreement with the Hantai District government of Hanzhong City. Pursuant to the agreement, the Company will be engaged in development of shanty areas surrounding the Lianhuachi Area located in the Hantai District, Hanzhong City. The estimated investment in the project is approximately US$750 million. The local government will coordinate with the Company to implement the reform plans. The Company will closely work with local government on the detail implementation plan and manage the project progress.
52-Week Low:
  • Exelixis, Inc. (Nasdaq: EXEL) $1.85. Exelixis slammed today after it announced top-line results from the final analysis of COMET-1, the phase 3 pivotal trial of cabozantinib in men with metastatic castration-resistant prostate cancer (mCRPC) whose disease progressed after treatment with docetaxel as well as abiraterone and/or enzalutamide. The trial did not meet its primary endpoint of demonstrating a statistically significant increase in overall survival (OS) for patients treated with cabozantinib as compared to prednisone. The median OS for the cabozantinib arm of the trial was 11.0 months versus 9.8 months for the prednisone arm (hazard ratio 0.90; 95% confidence interval 0.76 – 1.06; p value 0.212).

  • Conn's, Inc. (Nasdaq: CONN) $31.00. Conn's reported Q2 EPS of $0.50, $0.25 worse than the analyst estimate of $0.75. Revenue for the quarter came in at $353 million versus the consensus estimate of $353.65 million. Same store sales increased 11.7 percent, on top of an 18.4 percent increase a year ago. Conn's said it sees FY15 EPS of $2.80 - $3.00, versus the consensus of $3.54. Same stores sales expected up 5 to 10 percent in FY15.

  • Melco Crown Entertainment (Nasdaq: MPEL) $26.28. Melco Crown Entertainment fell Tuesday following news that total gross gaming revenue in Macau declined 6.1 last month. Notably, VIP revenue fell 19 percent.


Trading Radar for 9/3: PVH Corp. (PVH), Toll Bros. (TOL), Vince Holding (VNCE), AeroVironment (AVAV) Report Sep 2, 2014 02:18PM

The Trading Radar highlights key earnings and economic announcements for the next trading session:

Before Markets Open:
Economics:
7:00am EDT

  • MBA Mortgage Index - no Street consensus
Earnings:

eGain Communications (Nasdaq: EGAN) - consensus EPS $0.00
G-III Apparel Group Ltd (Nasdaq: GIII) - consensus EPS $0.16
Toll Brothers, Inc. (NYSE: TOL) - consensus EPS $0.45
Vince Holding (NYSE: VNCE) - consensus EPS $0.24

Intraday or Not Specified:
Economics:
10:00am EDT

  • Factory Orders - Street sees 12.0%
2:00pm EDT
  • Fed's Beige Book - no Street consensus
2:00pm EDT
  • Auto & Truck Sales - no Street consensus
After Markets Close:
Earnings:

ABM Industries, Inc. (NYSE: ABM) - consensus EPS $0.46
AeroVironment, Inc. (Nasdaq: AVAV) - consensus loss $0.11
Bazaarvoice (NYSE: BV) - consensus loss $0.11
Christopher & Banks Corp. (NYSE: CBK) - consensus EPS $0.04
Dominion Diamond Corp (NYSE: DDC) - consensus EPS $0.19
H&R Block, Inc. (NYSE: HRB) - consensus loss $0.40
Matrix Service Co (Nasdaq: MTRX) - consensus EPS $0.36
PVH Corp. (NYSE: PVH) - consensus EPS $1.42
Shoe Carnival, Inc. (Nasdaq: SCVL) - consensus EPS $0.15

Check out our Earnings Insider for news and updates on earnings as they happen!


Unusual 11 Mid-Day Movers 9/2: (XRSC) (DGLY) (ISNS) Higher; (EXEL) (CONN) (RSH) Lower Sep 2, 2014 12:57PM

XRS Corporation (Nasdaq: XRSC) 82.9% HIGHER; Omnitracs, LLC announced that it has agreed to acquire XRS Corporation, a leader in mobile fleet optimization software. Subject to the terms and conditions of the definitive agreement, Omnitracs will pay $5.60 per share of XRS, which equates to $178 million in equity value.

Digital Ally (Nasdaq: DGLY) 61.3% HIGHER; adding to gains on reports Fire and EMS agencies are also looking for grants to buy the company's on-body video products. Shares are up 63% today and 807% since first being discovered as a play on on-officer video them in the wake of Ferguson.

Exelixis, Inc. (Nasdaq: EXEL) 54.5% LOWER; announced top-line results from the final analysis of COMET-1, the phase 3 pivotal trial of cabozantinib in men with metastatic castration-resistant prostate cancer (mCRPC) whose disease progressed after treatment with docetaxel as well as abiraterone and/or enzalutamide. The trial did not meet its primary endpoint of demonstrating a statistically significant increase in overall survival (OS) for patients treated with cabozantinib as compared to prednisone. The median OS for the cabozantinib arm of the trial was 11.0 months versus 9.8 months for the prednisone arm (hazard ratio 0.90; 95% confidence interval 0.76 – 1.06; p value 0.212).

Image Sensing Systems (Nasdaq: ISNS) 44.2% HIGHER; seeing additional gains as a Ferguson-related play. The company offers cameras for law enforcement aimed at reading license plates, as well as the make and model of automobiles.

Conn's, Inc. (Nasdaq: CONN) 30.1% LOWER; reported Q2 EPS of $0.50, $0.25 worse than the analyst estimate of $0.75. Revenue for the quarter came in at $353 million versus the consensus estimate of $353.65 million. Same store sales increased 11.7%, on top of an 18.4% increase a year ago. Conn's, Inc. sees FY2015 EPS of $2.80-$3.00, versus the consensus of $3.54. Same stores sales expected up 5% to 10%.

MGT Capital Investments, Inc. (AMEX: MGT) 24.5% HIGHER; MGT was notified today by NYSE MKT of unusual trading activity in its stock, and the Exchange requested the Company to respond by press release to the unusual activity. The Company's general policy is not to comment on market rumors or speculation, including unusual market activity, and instead urges investors to look to the Company's filings with the SEC and its official press releases.

China HGS Real Estate, Inc. (Nasdaq: HGSH) 22.2% HIGHER; announced that the Company signed its second shanty area rebuilding framework agreement with the Hantai District government of Hanzhong City. Pursuant to the agreement, the Company will be engaged in development of shanty areas surrounding the Lianhuachi Area located in the Hantai District, Hanzhong City. The estimated investment in the project is approximately US$750 million. The local government will coordinate with the Company to implement the reform plans. The Company will closely work with local government on the detail implementation plan and manage the project progress.

RadioShack (NYSE: RSH) 19.7% LOWER; pulling back following a monsterous 135 percent move higher last week.

Ascent Solar Technologies, Inc. (Nasdaq: ASTI) 16.8% HIGHER; that it entered into a Stock Purchase Agreement (SPA) on August 29, 2014 with existing stockholders TFG Radiant Investment Group (“TFG Radiant”) and Series A investor, Seng Wei Seow (“Seow”) for approximately $8.0 million of common stock.

Alder BioPharmaceuticals (Nasdaq: ALDR) 14.8% LOWER; announced that it has regained the worldwide rights to clazakizumab, a humanized monoclonal antibody to the pro-inflammatory cytokine IL-6, from Bristol-Myers Squibb (NYSE: BMY) based on BMS' decision to end further development following a portfolio prioritization and not based on any new or unexpected efficacy or safety data or technical issues. Alder plans to continue the clinical development of the therapeutic antibody in autoimmune/inflammatory disease based on the positive study results reported to date.

Ivanhoe Energy Inc. (Nasdaq: IVAN) 11.5% LOWER; seeing some profit taking after a 55.4 percent pop higher last Friday.

To get this report daily visit http://www.streetinsider.com/entities/Unusual+11+Mid-Day+Movers.


Streetinsider.com's Hot Lunchtime Reads 9/2: (LVS) (BBRY) (ZLTQ) (AMX) (TSL) Sep 2, 2014 12:12PM

The following is a list of notable articles to help get you through the lunch hour:
  • BlackBerry (BBRY) Plans Sept. 24th Events in Three non-U.S. Cities -> Read this!

  • ZELTIQ Aesthetics (ZLTQ) Gains on Bullish Stifel Research -> Read this!

  • Weak Macau Data Pressures Gaming Stocks (LVS) (MPEL) (WYNN) (MGM) -> Read this!

  • America Movil (AMX) Taps Banker to Assist in Sale of Certain Phone Assets (T) -> Read this!

  • Roth Positive on Trina Solar (TSL) Following Yunnan Metallurgical New Energy Transaction -> Read this!

  • Goldman Sachs Adds ENI (E) to CL-Buy List (Earlier) -> Read this!

  • Taser (TASR) a Buy on Upgrade Cycle and Position in On-Officer Video - Ladenburg Thalmann -> Read this!


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Sep 2, 2014 11:10AM Notable Analyst Rating Changes 9/2: (TSLA) (GRPN) (WDR) Upgraded; (PHM) (BA) (FCX) Downgraded
Sep 2, 2014 10:26AM Notable Mergers and Acquisitions of the Day 9/2: (CPWR) (DG)/(FDO) (NCLH) (ADM) (FLWS)
Sep 2, 2014 09:30AM Pre-Open Stock Movers 9/2 (HGSH) (DGLY) (CPWR) Higher; (EXEL) (CONN) (RIBT) Lower (more...)
Aug 29, 2014 03:50PM Top 10 News for 8/25 - 8/29: S&P 500's New Record; U.S. Q2 GDP Outpaces Views; Major Mergers Aplenty
Aug 29, 2014 03:30PM Trading Radar for 9/2: Guidewire (GWRE), Conn's (CONN), Paragon Shipping (PRGN) Report
Aug 29, 2014 02:09PM Notable 52-Week Highs and Lows of the Day 8/29: (DGLY) (NXPI) (UTHR) High; (CBMX) (FRO) Low
Aug 29, 2014 12:45PM Unusual 11 Mid-Day Movers 8/29: (IVAN) (NCTY) (UTHR) Higher; (SGOC) (VII) (FRO) Lower
Aug 29, 2014 12:05PM Streetinsider.com's Hot Lunchtime Reads 8/29: (AAPL) (SYT) (ATVI) (RDEN)
Aug 29, 2014 10:26AM Notable Analyst Rating Changes 8/29: (AGCO) (BRC) (OVTI) Upgraded; (CWST) (FUEL) (SNSS) Downgraded
Aug 29, 2014 10:09AM Notable Mergers and Acquisitions of the Day 8/29: (MCHP)/(CSRE) (CRTO)
Aug 29, 2014 09:30AM Pre-Open Stock Movers 8/29: (CRTO) (UEPS) (DGLY) Higher; (FRO) (BIG) (ZOES) Lower (more...)
Aug 28, 2014 06:25PM After-Hours Stock Movers 8/28: (UEPS) (VEEV) (SPLK) Higher; (ZOES) Lower (more...)
Aug 28, 2014 05:18PM Market Wrap: Revised Q2 GDP Ramps Higher; Telecom Italia Makes Run at Vivendi's GVT; Apple Affirms Sept. Event
Aug 28, 2014 02:20PM Trading Radar for 8/09: Big Lots (BIG) Reports
Aug 28, 2014 12:40PM Unusual 11 Mid-Day Movers 8/28: (SGOC) (CSRE) (DGLY) Higher; (GOMO) (FRO) (WSM) Lower
Aug 28, 2014 12:12PM Streetinsider.com's Hot Lunchtime Reads 8/28: (TKMR) (MSFT) (ISIS) (WDAY)
Aug 28, 2014 10:21AM Notable Analyst Rating Changes 8/28: (COT) (ALU) (CHL) Upgraded; (GTAT) (JCP) (V) Downgraded
Aug 28, 2014 09:58AM Notable Mergers and Acquisitions of the Day 8/28: (TI)/(VIIVHY) (LEA) (COBR) (MPB)
Aug 28, 2014 09:25AM Pre-Open Stock Movers 8/28: (CREG) (DGLY) (TKMR) Higher; (GOMO) (WSM) (GCO) Lower (more...)
Aug 27, 2014 06:15PM After-Hours Stock Movers 8/27: (CREG) (CCUR) (FEYE) Higher; (GOMO) (WSM) (GES) Lower (more...)
Aug 27, 2014 05:22PM Market Wrap: Apple Loses Ban Appeal vs Samsung; Alibaba Reports Improved Profit; Tiffany Shines in Q2
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Aug 27, 2014 03:02PM Oi S.A. (OIBR) Said Seeking Partners for TIM Breakup (AMX) (TEF)
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Aug 27, 2014 12:03PM Streetinsider.com's Hot Lunchtime Reads 8/27: (TSLA) (TIF) (MSFT) (FB) (HLF)
Aug 27, 2014 10:35AM Notable Analyst Rating Changes 8/27: (RCII) (BMO) (LVLT) Upgraded; (FBC) (FB) (BNS) Downgraded
Aug 27, 2014 10:09AM Notable Mergers and Acquisitions of the Day 8/27: (LIVE) (ZAZA)
Aug 27, 2014 09:44AM Pre-Open Stock Movers 8/27 (TUBE) (EXPR) (MIK) Higher; (SWHC) (YGE) (RGR) Lower (more...)
Aug 26, 2014 06:05PM After-Hours Stock Movers 8/26: (TUBE) (CHMT) (ARUN) Higher; (SWHC) (RGR) (TIVO) Lower (more...)
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Aug 26, 2014 05:11PM Cooper Tire's (CTB) CCT Unit Valued at $440M, According to Independent Valuation
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Aug 26, 2014 12:47PM Unusual 11 Mid-Day Movers 8/26: (VII) (INSN) (KITE) Higher; (ADEP) (DRL) (XUE) Lower
Aug 26, 2014 12:11PM Streetinsider.com's Hot Lunchtime Reads 8/26: (RSH) (ARIA) (NFLX) (MBLY)
Aug 26, 2014 10:12AM Notable Analyst Rating Changes 8/26: (MT) (ITMN) (MPEL) Upgraded; (QIHU) (SPG) (LIN) Downgraded
Aug 26, 2014 09:45AM Notable Mergers and Acquisitions of the Day 8/26: (THI)/(BKW) (AMZN) (KKR) (ESGR)
Aug 26, 2014 09:25AM Pre-Open Stock Movers 8/26: (DGLY) (KITE) (DSW) (THI) Higher; (DRL) (ADEP) (SAFM) (BBY) Lower (more...)
Aug 25, 2014 06:12PM After-Hours Stock Movers 8/25: (KITE) (ACHN) (CMTL) Higher; (ADEP) (WDC) Lower (more...)
Aug 25, 2014 05:21PM Market Wrap: S&P's New Milestone; Hot Biotech, Fast Food M&A Action; Amazon Pulls Trigger on Twitch
Aug 25, 2014 03:00PM Notable 52-Week Highs and Lows of the Day 8/25: (GILD) (X) (BITA) High; (GEF) (NTWK) Low
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Aug 25, 2014 10:58AM Notable Analyst Rating Changes 8/25: (X) (WPX) (CBOE) Upgraded; (THOR) (STLD) (ITMN) Downgraded
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