7:57 am Gapping up (SCANX) :

Gapping up
In reaction to strong earnings/guidance: ISRG +8.1%, ARMH +6.4%, LAD +5.9%, BABY +5.2%, ZIXI +4.7%, GM +3.3%, MANH +2.7%, CB +2.4%, BA +2.2%, CREE +2%, DFS +1.4%, ABB +1.2%, ILMN +0.6%, OC +0.6%

M&A news: KLAC +16.5% (KLAC to be acquired by LRCX for value of ~$67.02/share, or ~$10.6 bln),SNDK +5.3% (SanDisk to be acquired by Western Digital for $86.50/share, or ~$19 bln),IM +0.5% (agreed to acquire Brazil-based Grupo ACAO; expects $300 mln in annual value-add solutions revs, and be modestly accretive to 2016 FY non-GAAP EPS)

Select oil/gas related names showing strength: BP 1.8% (still checking), RDS.A 1.7% (still checking), TOT 1.5% (still checking)

Other news: XOMA +17% (Novartis acquires Admune Therapeutics and licensing agreements with Palobiofarma and XOMA Corp),KERX +8.9% (The Baupost Group disclosed 34.61% active stake in 13D filing; private placement was previously announced on October 15),EPAX +5.4% (approves an initial liquidating distribution of $2.85/share),ALLT +5.2% (receives a Q4, $10 million expansion order from a Tier-1 mobile operator),WTW +3.8% (cont strength),BWINA +3.4% (appointed Steven A. Shapiro as Executive Chairman of the Board),MT +2.7% (in symp with BHP),FIT +1.8% (still checking),BHP +1.6% (provided operational review for quarter ended Sept 30, 2015: Petroleum production declined 4% from prior year to 65 MMboe),ASML +1.2% (in symp with ARMH),F +1.1% (in symp with GM),RIO +1% (in symp with BHP)

Analyst comments: EXAS +3.2% (upgraded to Overweight from Equal Weight at a boutique firm)

7:55 am S&P futures vs fair value: +6.20. Nasdaq futures vs fair value: +16.50. (:WRAPX) :

U.S. equity futures trade near their pre-market highs amid upbeat action overseas. The S&P 500 futures hover six points above fair value.

Today's economic data was limited to the weekly MBA Mortgage Index, which jumped 11.8% to follow last week's 27.6% plunge.

Treasuries hold modest gains with the 10-yr yield down one basis point at 2.06%.

In U.S. corporate news of note:

• General Motors (GM 34.60, +1.12): +3.3% after beating earnings and revenue expectations.
• Biogen (BIIB 265.00, -0.81): -0.3% after beating estimates, raising its guidance, and announcing restructuring plans.
• Boeing (BA 142.00, +3.12): +2.3% in reaction to better than expected results and improved guidance.
• Coca-Cola (KO 42.00, -0.29): -0.7% following a one-cent beat on below-consensus revenue.
• Chipotle Mexican Grill (CMG 655.00, -50.63): -7.2% after missing bottom-line estimates and reaffirming its comparable restaurant sales guidance.
• Credit Suisse (CS 25.40, -0.56): -2.2% after missing earnings/revenue expectations and proposing two share capital increases.
• Yahoo! (YHOO 32.22, -0.61): -1.9% in reaction to below-consensus earnings and guidance. Also of note, the company guided its Q3 revenue below analyst expectations.
• VMWare (VMW 61.75, -7.01): -10.2% after reporting in-line with its announcement from October 12. The stock received several downgrades following earnings.

Reviewing overnight developments:

• Asian markets ended mixed. Japan's Nikkei +1.9%, China's Shanghai Composite -3.1%, and Hong Kong's Hang Seng was closed for Chung Yeung Day.
  • In economic data:
    • Japan's September Trade Balance -JPY115 bln (expected JPY84 bln; prior -JPY570 bln) as Exports +0.6% year-over-year (expected +3.4%; prior +3.1%) and Imports -11.1% year-over-year (expected -11.7%; prior -3.1%). Separately, All Industries Activity Index -0.2% month-over-month (expected -0.1%; prior -0.1%)
    • Australia's CB Leading Index -0.4% month-over-month (prior +0.3%) and MI Leading Index +0.1% month-over-month (prior -0.3%)
    • New Zealand's Credit Card Spending +7.3% year-over-year (prior +10.4%)
  • In news:
    • Japan's trade data showed the sixth consecutive deficit while imports declined for the 9th month in a row. Notably, exports to China dropped 3.5% while exports to Asia ex-China declined 0.7%, representing the first decrease in seven months.

• Major European indices trade higher across the board. UK's FTSE +0.5%, France's CAC +0.8%, and Germany's DAX +0.9%. Elsewhere, Italy's MIB +0.4% and Spain's IBEX +0.7%.
  • Economic data was limited:
    • UK's September Public Sector Net Borrowing GBP8.63 billion (expected GBP9.40 billion; previous GBP10.79 billion
  • Among news of note:
    • European equities have advanced, but action in the currency market has been subdued with the euro trading flat against the dollar ahead of tomorrow's European Central Bank policy meeting. Currently, the pair hovers near 1.1350.

7:54 am On the Wires (:WIRES) :

• Zenyatta Ventures announced the initiation of a project with Ballard Power Systems (BLDP) using high purity Albany graphite in the membrane electrode assembly of a fuel cell
• The Coca-Cola Company (KO) announced it has signed letters of intent with three U.S. bottlers to grant expanded distribution territories in seven states as part of its ongoing efforts to re-franchise half of Company-owned U.S. bottler-delivered volume by the end of 2017. Coca-Cola Beverages Florida, Great Lakes Coca-Cola Distribution, and Atlantic Coca-Cola Bottling Company were granted territories in Florida, Michigan, Minnesota, Wisconsin, Iowa, Illinois and Missouri

7:48 am Abbott Labs beats by $0.01, reports revs in-line; guides FY15 EPS in-line (ABT) :

• Reports Q3 (Sep) earnings of $0.54 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.53; revenues rose 1.4% year/year to $5.15 bln vs the $5.14 bln Capital IQ Consensus.
• Co issues in-line guidance for FY15, sees EPS of $2.14-2.16 vs. $2.16 Capital IQ Consensus Estimate.

7:46 am Overnight Treasury Summary (BONDX) :

Yields Move Higher on Renewed Hopes for Dovish ECB Statement

• U.S. Treasuries rallied overnight as the European sovereign debt market shook off a report out Tuesday that showed expanding credit availability in the eurozone. The data had reduced hopes for an expansion to the ECB's EUR 60 bln/month asset purchase program. The European Central Bank's governing council will announce its decision and release the accompanying statement on Thursday. Trade data from Japan showed weakening demand from China. S&P 500 futures are indicating an open up 0.35% to 2,037.9, the U.S. Dollar Index is down 0.09% to 94.83, and WTI crude is down 1.12% to $45.77/bbl.
  
• Yield Check:
  
  • 2-yr: +1 bp to 0.64%
    
  • 5-yr: -1 bp to 1.38%
    
  • 10-yr: -2 bps to 2.05%
    
  • 30-yr: -2 bps to 2.90%

• International News:
  
  • Japan's trade deficit narrowed in September to JPY 115 bln from JPY -570 bln in August, confounding economists' expectations for a surplus
    
    • Exports grew a smaller-than-expected 0.6% in the year to September after rising 3.1% in August
      
      • The change in exports to the U.S., the EU, and China were +10.4%, +5.1%, and -3.5%, respectively
        
      • Analysts said that the stimulative effect of the cheap yen on exports was fading
        
    • Japan's All Industries Activity Index declined 0.2% m/m in August after falling a downwardly-revised 0.1% in July
      
  • Public sector net borrowing in the U.K. declined more than expected in September to GBP 8.63 bln from a downwardly-revised GBP 10.79 bln in August
    
    • Chancellor of the Exchequer George Osborne used the opportunity to promise more spending cuts
      
  • The Shanghai Composite closed down 3.1% after a late-session drop
    
  • The IMF issued a report saying that Mid East countries need new fiscal plans to cope with the slump in oil prices
    
  • The Central Bank of the Republic of Turkey kept the one-week repurchase rate at 7.50%, as was widely expected. The Turkish election will be held on November 1st

• Data Out Today:
  
  • MBA Mortgage Index for the week ending 10/17: Actual +11.8%, Prior -27.6%
    
  • Crude Inventories for the week ending 10/17 (10:30 ET)

7:40 am Biogen (halted, will resume at 8:00) beats by $0.69, beats on revs; raises guidance above consensus; announces restructuring, Phase 3 ASCEND study investigating natalizumab in MS did not achieve targets (BIIB) :

• Reports Q3 (Sep) earnings of $4.48 per share, excluding non-recurring items, $0.69 better than the Capital IQ Consensus of $3.79; revenues rose 10.6% year/year to $2.78 bln vs the $2.64 bln Capital IQ Consensus.
  • Total multiple sclerosis product sales were $2.2 billion compared to $2.1 billion in the same quarter last year.
  • TECFIDERA revenues were $937 million compared to $787 million in the same quarter last year. These results consisted of $754 million in U.S. sales and $183 million in sales outside the U.S. compared to $638 million and $149 million, respectively, in the third quarter of 2014.
• Co issues upside guidance for FY15, raises EPS to $16.20-16.50 from $15.50-15.95, excluding non-recurring items, vs. $15.81 Capital IQ Consensus; raises FY15 revs to +8-9% (from +6-8%) to ~$10.48-10.58 bln vs. $10.47 bln Capital IQ Consensus Estimate. This guidance implies a sequential decrease in revenue in the fourth quarter of 2015 based on the assumption of stable US wholesaler inventory levels for the balance of the year in MS and a reduction in US wholesaler inventory for Rituxan.  
• Biogen also announced a corporate restructuring, which includes the termination of a number of pipeline programs and an 11% reduction in workforce. These changes are expected to reduce the current annual run rate of operating expenses by ~$250 million. The Company plans to reinvest these savings to support key commercial initiatives, including increased sales and marketing activities behind TECFIDERA, and the advancement of high potential pipeline candidates in areas such as Alzheimer's disease, multiple sclerosis, and spinal muscular atrophy.
• First patient enrolled in aducanumab Phase 3 studies for Alzheimer's disease

7:38 am WTI oil futures are trading lower following yesterday's API inventory data and ahead of this morning's EIA inventory data (:COMDX) :

• Dec crude oil is now -1.1% at $45.79/barrel
• Dollar index is currently -0.1% at 94.86

7:37 am Northern Trust reports EPS in-line, misses on revs (NTRS) :

• Reports Q3 (Sep) earnings of $0.96 per share, in-line with the Capital IQ Consensus of $0.96; revenues rose 7.1% year/year to $1.16 bln vs the $1.17 bln Capital IQ Consensus. 
• Net interest income on an FTE basis totaled $275.0 mln, up $18.8 mln, or 7%, compared to $256.2 mln in the prior-year quarter.
• The provision for credit losses was a credit of $10.0 mln in the current quarter, reflecting improved credit quality.

7:37 am Coca-Cola beats by $0.01, misses on revs; reaffirms FY15 EPS growth guidance (KO) :

• Reports Q3 (Sep) earnings of $0.51 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.50; revenues fell 4.6% year/year to $11.43 bln vs the $11.54 bln Capital IQ Consensus.
  • Global volume grew 3%
  • Year-to-date cash from operations increased 5% to $8.4 billion, despite significant foreign currency headwinds
• Co reaffirms FY15 comparable currency neutral EPS growth of 5%, in line with prior range
  • Co estimates that the net impact of structural items on full-year 2015 results will be a 1 point headwind on both net revenues and income before taxes
  • Co expects full-year 2015 net share repurchases of $2.0 to $2.5 billion.

7:35 am Boeing beats by $0.32, beats on revs; raises guidance for FY15 on higher commercial airplane deliveries (BA) :

• Reports Q3 (Sep) earnings of $2.52 per share, $0.32 better than the Capital IQ Consensus of $2.20; revenues rose 8.7% year/year to $25.85 bln vs the $24.78 bln Capital IQ Consensus.
• Co raises guidance for FY15:
  • Sees EPS of $7.95-8.15 vs. $8.08 Capital IQ Consensus Estimate, up from prior guidance of $7.70-7.90;
  • Sees FY15 revs of $95.0-97.0 bln vs. $95.38 bln Capital IQ Consensus Estimate, up from prior guidance of $94.5-96.5 bln, on higher commercial airplane deliveries.
  • Defense, Space & Security operating margin guidance increased to approximately 10%. C
• Commercial Airplanes booked 166 net orders during the quarter.
• Backlog remains strong with nearly 5,700 airplanes valued at $426 billion.

7:35 am General Motors beats by $0.31, beats on revs (GM) :

• Reports Q3 (Sep) earnings of $1.50 per share, excluding non-recurring items, $0.31 better than the Capital IQ Consensus of $1.19; revenues fell 1.3% year/year to $38.8 bln vs the $37.2 bln Capital IQ Consensus.
• Q3 adjusted EBIT margin was 8.0%, a record for any quarter. This comapres to 5.8% in the prior year period.
• "These results reflect our work to capitalize on our strengths in the U.S. and China, while taking decisive, proactive steps to mitigate challenges elsewhere...GM is a vastly different company today than just five years ago. We're building a strong foundation, driving earnings growth in our core business and executing a plan to lead the future of personal mobility, all with the aim of creating shareholder value for years to come."
• "We expect our earnings to accelerate in the next several years, with double-digit EPS growth."

7:34 am Primoris Services announces a new industrial award valued in excess of $50 mln, from a large oil refining customer for a new cogeneration facility; project anticipated completion in 3Q17 (PRIM) :

The award is from a large oil refining customer for a new cogeneration facility at a major refinery in Southern California.

• Engineering and procurement will commence in 4Q15
• Construction is anticipated to start in 2Q16.
• The project is anticipated to be complete in 3Q17.

7:32 am SkyWest enters into a capacity purchase agreement with Delta Air Lines (DAL), to operate 19 new Embraer E175 dual-class regional jet aircraft (SKYW) :

• Co announced that it has entered into a Capacity Purchase Agreement with Delta Air Lines to operate 19 new Embraer E175 dual-class regional jet aircraft.
• SkyWest has determined that these 19 E175 aircraft will be operated by SkyWest Airlines, a wholly-owned subsidiary of SkyWest.
• The CPA is under terms and conditions similar to SkyWest's existing Delta agreements.

7:32 am Owens Corning beats by $0.29, beats on revs; expects FY15 adj EBIT to be at or above the high end of its previous guidance (OC) :

• Reports Q3 (Sep) earnings of $0.96 per share, $0.29 better than the Capital IQ Consensus of $0.67; revenues rose 5.7% year/year to $1.46 bln vs the $1.42 bln Capital IQ Consensus.
• Outlook
  • Co continues to expect to benefit in 2015 from sustained improvement in the U.S. housing market and moderate global growth. In Composites, the company now expects a full-year EBIT improvement of about $80 mln based on current volume and pricing strength, including the impact of $25 mln in currency headwinds.
  • Co expects revenue growth of about 10% in the second half with full-year operating leverage of around 40%.
  • The company now expects full-year corporate expenses to be around $110 mln.
  • Interest expense for the full-year is expected to be about $110 mln and capital expenditures ~$380 mln.
  • For the full year 2015, the company now expects adjusted EBIT to be at or above the high end of its previous guidance range of $460 mln to $500 mln.
  • The company will hold an Investor Day on November 18th in Atlanta, GA.

7:31 am Discovery Labs announces completion of enrollment in AEROSURF Phase 2a dose expansion trial; top-line results expected to be released in mid-November (DSCO) :

• With the completion of enrollment in this trial, co expects to initiate its AEROSURF phase 2b trial in Q4 2015 beginning with premature infants 29 to 32 weeks GA. In tQ4 2015, co expects to initiate an AEROSURF phase 2b clinical trial in up to 250 premature infants 26 to 32 week GA. The study is designed to evaluate two escalating doses (with potentially repeat doses) of aerosolized KL4 surfactant with a primary purpose of demonstrating evidence of efficacy. If successful, this study will inform the final design of a phase 3 clinical program. Enrollment in the phase 2b trial will begin with premature infants 29 to 32 weeks GA and will then be followed by premature infants 26 to 28 weeks GA following completion of the phase 2a program in this age group. The phase 2b clinical trial is expected to be completed in mid -- 2016.
• The Company is currently enrolling a 32-patient phase 2a clinical trial to assess the safety and tolerability of escalating (30 and 45 minutes) and potentially repeat inhaled doses of aerosolized KL4 surfactant administered to premature infants 26 to 28 week GA. Co anticipates releasing top-line results of this phase 2a trial in the first quarter of 2016.

7:31 am Manpower beats by $0.06, misses on revs; guides Q4 EPS in-line (MAN) :

• Reports Q3 (Sep) earnings of $1.61 per share, $0.06 better than the Capital IQ Consensus of $1.55; revenues fell 8.2% year/year to $4.97 bln vs the $5.06 bln Capital IQ Consensus.
• Co issues in-line guidance for Q4, sees EPS of $1.47-1.55 vs. $1.53 Capital IQ Consensus Estimate.

7:31 am Qualcomm's Capsule subsidiary receives FDA 510(k) clearance for SmartLinx Vitals Plus (QCOM) : Co announced that Capsule, a wholly owned subsidiary of the co, has received FDA 510(k) clearance of SmartLinx Vitals Plus, an innovative patient monitoring system that integrates vital signs monitoring and clinical documentation into one scalable platform. SmartLinx Vitals Plus, part of co's SmartLinx Medical Device Information System, is an alternative to traditional low acuity monitors. It provides new functionality in a single platform that allows hospitals and other health care facilities to streamline user authentication, patient identification, vitals measurement, and clinical documentation by integrating vital signs modules and components directly to the SmartLinx Neuron 2 mobile clinical computer.

7:30 am SanDisk to be acquired by Western Digital (WDC) for $86.50/share, or ~$19 bln (SNDK) :

Western Digital Corporation (WDC) announced it would acquire all of the outstanding shares of SanDisk for a combination of cash and stock. The offer values SanDisk common stock at $86.50 per share or a total equity value of ~$19 bln, using a five-day volume weighted average price ending on October 20, 2015 of $79.60 per share of Western Digital common stock. If the previously announced investment in Western Digital by Unisplendour Corporation Limited closes prior to this acquisition, Western Digital will pay $85.10 per share in cash and 0.0176 shares of Western Digital common stock per share of SanDisk common stock; and if the Unisplendour transaction has not closed or has been terminated, $67.50 in cash and 0.2387 shares of Western Digital common stock per share of SanDisk common stock.

• Western Digital expects to achieve full annual run-rate synergies of $500 million within 18 months post-closing. The transaction is expected to be EPS accretive on a non-GAAP basis within 12 months of the transaction close. Pending the closing of the transaction, Western Digital expects to continue paying its quarterly dividend and plans to suspend its share buyback program.
• The transaction will be financed by a mix of cash, new debt financing and Western Digital stock. In connection with the transaction, Western Digital expects to enter into new debt facilities totaling $18.4 billion, including a $1.0 billion revolving credit facility.

7:29 am Western Digital sees Q1 EPS $1.56 vs $1.57 Capital IQ Consensus Estimate; revs $3.4 bln vs $3.28 bln Capital IQ Consensus Estimate (WDC) :  Co wil report on Oct 28.

7:28 am On the Wires (:WIRES) :

• Bristol-Myers Squibb Company (BMY) announced that late-breaking data from the ALLY-3+ clinical trial, a study of Daklinza (daclatasvir) and sofosbuvir with ribavirin in genotype 3 HCV patients with cirrhosis, will be presented at the The Liver Meeting 2015
• Myriad Genetics (MYGN) announced that new data on its myRisk Hereditary Cancer molecular diagnostic test will be featured in five presentations at the National Society of Genetic Counselors Annual Conference
• RXi Pharmaceuticals Corporation (RXII) announced that it has selected two compounds for cosmetic product development based on its proprietary self-delivering RNAi platform. RXI-231, an sd-rxRNA compound developed to target Tyrosinase and RXI-185, an sd-rxRNA compound developed to target Collagenase, have been selected to advance in to cosmetic product development

7:22 am Kimberly-Clark beats by $0.02, reports revs in-line; raises bottom end of FY15 EPS guidance, in-line (KMB) :

• Reports Q3 (Sep) earnings of $1.51 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $1.49; revenues fell 6.7% year/year to $4.72 bln vs the $4.68 bln Capital IQ Consensus.
• Performance benefited from organic sales growth, cost savings, input cost deflation and a lower share count.
• Comparisons were negatively impacted by unfavorable foreign currency exchange rate effects, increased marketing, research and general spending on a local currency basis and higher other expense.
• Changes in foreign currency exchange rates reduced sales 12% as a result of the weakening of most currencies relative to the U.S. dollar. Organic sales rose more than 5 percent, as volumes increased ~5% and product mix/other was slightly favorable.
• Co raises bottom end of FY15 EPS guidance to $5.70-5.80, excluding non-recurring items, vs. $5.74 Capital IQ Consensus Estimate, up from $5.65-5.80.
• Organic sales, which exclude the impact of changes in foreign currency rates, are anticipated to grow 4 to 5 percent versus the prior assumption of 3 to 5%.

7:21 am St. Jude Medical reports EPS in-line, revs in-line; guides Q4 EPS below consensus (STJ) :

• Reports Q3 (Sep) earnings of $0.97 per share, in-line with the Capital IQ Consensus of $0.97; revenues fell 2.4% year/year to $1.34 bln vs the $1.35 bln Capital IQ Consensus. Worldwide neuromodulation revenue increased by approximately 19 percent on a constant currency basis, marking the fifth consecutive quarter of sales acceleration on a year over year basis.
• Co issues downside guidance for Q4, sees EPS of $1.00-1.02 vs. $1.07 Capital IQ Consensus Estimate.
  • Sees Q4 constant currency revenue growth in the range of 7-8% for the consolidated St. Jude Medical business, which now includes Thoratec. 
  • Organic constant currency sales growth for the fourth quarter is expected to be flat to slightly down.
  • The currency impact in the fourth quarter of 2015 is expected to negatively impact revenue by approximately $75 million to $85 million.
  • Q4 constant currency revenue growth guidance is negatively impacted by approximately 5 to 6 percentage points due to the extra selling week in the fourth quarter of 2014, which is the result of five fewer selling days in the fourth quarter of 2015 versus the prior year quarter.
• Co issues downside guidance for FY15, sees EPS of $3.93-3.95 vs. $3.98 Capital IQ Consensus Estimate.

7:09 am Tupperware beats by $0.08, beats on revs; guides Q4 EPS below consensus, revs in-line (TUP) :

• Reports Q3 (Sep) earnings of $0.79 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.71; revenues fell 11.5% year/year to $521.0 mln vs the $514.7 mln Capital IQ Consensus.
• Co issues guidance for Q4, sees EPS of $1.37-1.42, excluding non-recurring items, vs. $1.47 Capital IQ Consensus Estimate; sees Q4 revenue declining 8-10% YoY which computes as $612-626 mln vs. $613.7 mln Capital IQ Consensus Estimate.
• Co's current expectation for 2016 local currency sales growth is up +5-7%, including a 1-point benefit from a 53rd week in its fiscal year. Based on current exchange rates, this would result in sales in dollars being even to up 2%. Earnings guidance will be provided in January in the co's Q4 earnings release.
• Emerging markets, accounting for 70% of sales, achieved an 11% increase in local currency, a 3 point sequential improvement from Q2. The most significant contributors to Q3 growth were Brazil, China, Indonesia, and Tupperware South Africa.

7:07 am Lithia Motors beats by $0.14, beats on revs; guides Q4 EPS below consensus; guides Q1 (Mar) EPS below two analyst estimate; raises FY15 revs in-line; guides FY16 EPS below consensus, revs below consensus (LAD) :

• Reports Q3 (Sep) earnings of $2.03 per share, $0.14 better than the Capital IQ Consensus of $1.89; revenues rose 60.7% year/year to $2.08 bln vs the $2.05 bln Capital IQ Consensus. Total same store sales increased 12%. New vehicle same store sales increased 11% Used vehicle retail same store sales increased 13%
• Co issues downside guidance for Q4, sees adj EPS of $1.61-1.65 vs. $1.67 Capital IQ Consensus Estimate.
• Co issues downside guidance for Q1 (Mar), sees adj EPS of $1.46-1.50 vs. $1.56 two analyst estimate.
• Co issues in-line guidance for FY15, raises  FY15 revs to $7.8-7.9 bln from $7.6-7.8 bln vs. $7.85 bln Capital IQ Consensus Estimate. FY15 Guidance Details: New vehicle sales increasing 5.5%. New vehicle gross margin of 5.9% to 6.1%. Used vehicle sales increasing 6%.
• Co issues downside guidance for FY16, sees EPS of $7.15-7.35 vs. $7.68 Capital IQ Consensus Estimate; sees FY16 revs of $8.3-8.4 bln vs. $8.6 bln Capital IQ Consensus Estimate. FY16 Guidance Details: New vehicle sales increasing 5.5%. New vehicle gross margin of 5.9% to 6.1%. Used vehicle sales increasing 6%

7:07 am New York Community beats by $0.02 (NYCB) :

• Reports Q3 (Sep) earnings of $0.28 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.26.
  • The Company originated $2.8 bln of held-for-investment loans in the current third quarter, boosting the nine-month total to a record $9.0 bln
  • Non-performing non-covered assets declined $60.1 mln, or 43.2%, from the year-end 2014 balance to $78.8 mln, representing 0.17% of total non-covered assets, at 9/30/2015.
  •  Non-performing non-covered loans fell $21.7 mln, or 28.2%, to $55.2 mln, representing 0.16% of total non-covered loans at that date.

7:07 am Interpublic beats by $0.02, beats on revs; raises FY15 rev guidance (IPG) :

• Reports Q3 (Sep) earnings of $0.27 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.25; revenues rose 1.3% year/year to $1.87 bln vs the $1.82 bln Capital IQ Consensus.
  • Organic rev +7.1%, operating margin +100 bps to 10.3%.
• FY15 organic revenue growth now on track to exceed 5% and operating margin should improve by 100 basis points (previous guidance was for +4-5%, toward upper end of +80-100 bps).

7:06 am Trend Micro acquires HP TippingPoint for ~$300 mln (TMICY) : HP TippingPoint is a provider of next-generation intrusion prevention systems and related network security solutions. The approximately $300 million agreement encompasses security technology, intellectual property, industry expertise, as well as a large, loyal enterprise customer base.

7:05 am Angie's List beats by $0.05, misses on revs; guides FY15 below consensus (ANGI) :

• Reports Q3 (Sep) net of breakeven, $0.05 better than the Capital IQ Consensus of ($0.05); revenues rose 7.0% year/year to $86.99 mln vs the $89.64 mln Capital IQ Consensus, driven by higher service provider revenue, which increased 11% to $69.8 million, offset by a decline in membership revenue of 6% to $17.2 million from a year ago. Reported 9% growth in total paid memberships; 15% growth in total service provider contract value. First profitable third quarter in Company history.
• Co issues downside guidance for FY15, sees FY15 revs of $344-348 mln vs. $351.88 mln Capital IQ Consensus Estimate, down from previous revenue guidance range of $357 million to $363 million.
  • Now sees FY15 adjusted EBITDA of $27-30 mln for FY15, down from prior guidance of $30-32 million resulting from lower expected revenue, one-time expenses associated with the search, identification and hiring of the Company's new President and Chief Executive Officer as well as professional services fees related to activist activity in the Company's stock.

7:04 am Independence Contract Drilling amends existing senior secured revolving credit facility, modifying certain covenants (ICD) :

The amended credit facility modifies the leverage ratio covenant so that it increases from 3.75 in the first quarter of 2016 to 4.50 during the fourth quarter of 2016. The leverage ratio returns to 3.00 at the end of the second quarter of 2017. The amendments to the credit facility also reduce the minimum rig utilization covenant to 60% in 2016 and 70% in 2017, and provide for the exclusion of certain planned capital expenditures from consideration for purposes of calculating the fixed charge coverage ratio under that covenant.

• As of September 30, 2015, the Company had net debt of approximately $55.1 million. As amended, the credit facility provides for aggregate commitments of $125 million. The credit facility maintains its maturity date of November 4, 2018.

7:04 am Diamond Resorts: FrontFour Capital Group and ADW Capital Partner shareholders send a letter to the Board, requesting an exploration of strategic alternatives (DRII) : Group announced that they have delivered a letter to the President and CEO of Diamond Resorts International to express their frustrations with the company's under-performance, despite commendable execution by the management team, and to request that the Board of Directors explore available strategic alternatives, including a sale of the company.

7:03 am SteadyMed has filed an Inter Partes Review with the United States Patent and Trademark Office to invalidate United Therapeutics' (UTHR) patent related the preparation of prostacyclin derivatives such as treprostinil (STDY) :

Co has filed an Inter Partes Review with the United States Patent and Trademark Office to invalidate U.S. Patent No. 8,497,393 granted to United Therapeutics (UTHR).The patent relates to a process to prepare prostacyclin derivatives such as treprostinil, the medicine used in co's lead product candidate, Trevyent, for the treatment of pulmonary arterial hypertension.

• Co expects a decision by the USPTO to occur in advance of the anticipated product launch of Trevyent in 2017.

7:02 am Celator Pharma reports that a Phase 2 pharmacokinetic study evaluating Vyxeos (CPX-351) on cardiac depolarization/repolarization, concludes it did not prolong QT/QTc interval (CPXX) :

Co announces that a Phase 2 pharmacokinetic and pharmacodynamics study evaluating the effects of VYXEOS(CPX-351) on cardiac depolarization/repolarization has concluded and VYXEOS did not prolong the QT/QTc interval.

• The QT interval represents the amount of time the heart's electrical system takes to depolarize and repolarize during each heartbeat.
• Prolongation of the QT interval may increase the risk of cardiac arrhythmias.
• Co expects to report additional info at the ASH Annual Meeting on Sunday, December 6, 2015 from 6:00 p.m. to 8:00 p.m. EST.

7:02 am Blue Calypso closes a round of private financing in which they issued and sold an aggregate of 482,500 shares of common stock at $4.25/share resulting in gross proceeds of ~$2 mln (BCYP) :  

7:01 am Medtronic receives CE Mark for the Visia AF and Visia AF MRI SureScan single-chamber implantable cardioverter defibrillators (MDT) :  

7:01 am EMC reports Q3 in-line with downside preannoucement -- merging with Dell (EMC) :

• Reports Q3 (Sep) earnings of $0.43 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.43; revenues rose 0.8% year/year to $6.08 bln vs the $6.13 bln Capital IQ Consensus. 
• Co preannounced EPS $0.43 vs. $0.45 consensus, rev $6.05-6.08 bln vs. $6.24 bln consensus on Oct 12 when announced merger with Dell
• Co is notguiding FY15 given merger with Dell.

7:01 am Horizon Pharma reports a favorable Markman ruling in its litigation with Par Pharmaceutical, for an ANDA to market generic Ravicti (HZNP) : The judge was asked to construe disputed claim terms in U.S. Patent No. 8,404,215 and U.S. Patent No. 8,642,012 and adopted Horizon's proposed construction of all but one of the disputed claim terms.

7:00 am NeoGenomics signs an agreement to acquire Clarient Inc, for $80 mln in cash, $110 mln in Preferred Stock, and 15 mln shares of NEO common stock (NEO) :

Co has reached an agreement to acquire Clarient, Inc., and its wholly-owned subsidiary Clarient Diagnostic Services, a provider of comprehensive cancer diagnostic testing to hospitals, physicians and the pharmaceutical industry. Clarient it a unit of GE (GE).

• Clarient had 2014 revenue of $127 million and Adjusted EBITDA of ~$13 million.
• The transaction purchase price includes $80 million in cash, $110 million in Preferred Stock, and 15 million shares of NeoGenomics Common Stock, subject to customary adjustments for working capital at close. The Preferred Stock will be issued at $7.50 per share and is redeemable at the option of NeoGenomics at any time over a ten year term.
• Co stated: "Providing there are no unexpected changes to reimbursement in 2016, we expect our revenue to more than double to approximately $240 - $250 million and our Adjusted EBITDA to more than triple to between $33 and $38 million on a pro forma basis in 2016. This will be a deliberately executed integration, and we expect synergy realization to begin modestly with approximately $4-6 million of realized synergies in 2016. However, by the end of year 3, we expect $20-$30 million per year of realized synergies as we strive to be the high-quality and low-cost provider in cancer genetic testing."

7:00 am Asian Markets Close: Japan's Nikkei +1.9%; Hong Kong's Hang Seng closed for holiday: China's Shanghai Composite -3.1% (:SUMRX) :

It was a rather mixed day of trading in the Asia-Pacific region. Japan's Nikkei (+1.9%) powered higher after its trade balance report for September seemingly bolstered the case for the Bank of Japan to provide more policy stimulus. China's Shanghai Composite (-3.1%), meanwhile, fell prone to active selling interest following a huge short-term move that had driven it up nearly 13% since September 29.

Economic data

• Japan
  • September Trade Balance JPY -115 bln (expected JPY 84 bln; prior JPY -570 bln)
    • Exports +0.6% year-over-year (expected +3.4%; prior +3.1%)
    • Imports -11.1% year-over-year (expected -11.7%; prior -3.1%)
  • All Industries Activity Index -0.2% month-over-month (expected -0.1%; prior -0.1%)
• Australia
  • CB Leading Index -0.4% month-over-month (prior +0.3%)
  • MI Leading Index +0.1% month-over-month (prior -0.3%)
• New Zealand
  • Credit Card Spending +7.3% year-over-year (prior +10.4%)

Equity Markets

• Japan's Nikkei rallied 1.9%, closing near its high for the day. The move followed the September Trade Balance report, which was accented by weaker than expected exports and a noticeable slump in imports versus the prior month. The takeaway was that the trade data bolstered the potential for the Bank of Japan to provide more policy stimulus. Every sector finished higher, led by the industrials (+3.1%), materials (+2.7%), technology (+2.4%), and financials (+1.7%). Yaskawa Electric Corp (+10.1%), Pioneer Corp (+7.9%), and NTN Corp (+6.4%) led the advancers while Konami Holdings (-4.0%), Tosoh Corp (-2.7%), and Shionogi & Co (-2.1%) brought up the rear. Out of the 225 index members, 213 ended higher, 11 finished lower, and 1 was unchanged.
• Hong Kong's Hang Seng: closed for holiday (Chung Yeung Day)
• China's Shanghai Composite declined 3.1% with the entirety of the day's losses being logged in the afternoon session. There wasn't a specific news catalyst that turned the tide, although it should be noted that Japan's exports to China declined 3.5%, reflecting weakness in the Chinese economy.  Reports have suggested the sell-off was primarily a case of selling activity kicking in with a short-term overbought market. The small-cap Shenzhen Composite dropped 5.9%. Prior to Wednesday's retreat, the Shanghai Composite had risen 12.7% since September 29.
• India's Sensex declined 0.1%, rolling over after an early 0.5% gain. The weakest spots were the health care (-2.2%) and industrials (-1.6%) sectors. Dr Reddy's Laboratories (-3.5%), State Bank of India (-2.1%), and GAIL India (-1.7%) were the worst-performing issues. Vedanta (+3.8%), Bajaj Auto (+3.3%), and Bharti Airtel (+2.7%) topped the list of winners. Out of the 30 index members, 16 ended higher, 13 finished lower, and 1 was unchanged.
• Australia's S&P/ASX 200 increased 0.2%, rallying back in the afternoon session from an early 0.8% decline. Gains were led by the gold (+3.9%), metals & mining (+1.5%), and resources (+1.4%) sectors. News that BHP Billiton increased iron ore production by 7% and maintained its full-year guidance reportedly helped underpin the market. Out of the 200 index members, 101 ended higher, 76 finished lower, and 23 were unchanged.
• Regional advancers: South Korea +0.2%, Malaysia +0.1%, Indonesia +0.4%, Singapore +0.2%, Philippines +0.5%
• Regional decliners: Taiwan -0.5%, Thailand -0.2%, Vietnam -0.2%

FX

• USD/CNY +0.01% at 6.3491
• USD/INR +0.2% at 65.1675
• USD/JPY +0.1% at 120.01

6:59 am On the Wires (:WIRES) :

• Trina Solar Limited (TSL) announced that, to date, it has successfully connected to the grid two thirds of a 300MW ground-mounted solar project in Yunan, China
• Hydrogenics Corporation (HYGS) announced that it has completed the construction and shipment of a hydrogen electrolyzer, to be used in a pilot plant for the cleanup of tritiated waste water
• Southern California Edison, a unit of Edison Intl (EIX), submitted to the California Public Utilities Commission additional documents related to the commission's proceeding regarding the shutdown of the San Onofre nuclear plant. SCE recently discovered about two dozen additional documents that refer to procedural communications between SCE and commission decision-makers. In SCE's view, none of the recently discovered documents reflect any inappropriate discussions or reportable ex parte communications under the commission's rules
• Kennedy Wilson (KW) along with its equity partner, in a joint venture with the National Asset Management Agency, announced that they have secured planning permission for a development on Sir John Rogerson's Quay in Dublin 2
• American Express (AXP) Canada and Live Nation (LYV) Canada announce the renewal of a multi-year deal with expanded benefits, offering Canadian Cardmembers access to tickets and shows through the Front Of The Line program
• Synthetic Biologics (SYN) and its Pertussis academic collaborator, The University of Texas at Austin announced a grant award of $400,000 to evaluate the potential of Synthetic Biologics' monoclonal antibody, hu1B7, to prevent Pertussis in non-human primates and provide support for its potential clinical application

6:50 am Silgan Holdings misses by $0.13, reports revs in-line; guides Q4 EPS below consensus (SLGN) :

• Reports Q3 (Sep) earnings of $1.26 per share, excluding non-recurring items, $0.13 worse than the Capital IQ Consensus of $1.39; revenues fell 2.0% year/year to $1.2 bln vs the $1.2 bln Capital IQ Consensus.
  • "Our plastic container business continued a major plant optimization program, affecting almost all of its production locations, and significantly increased certain costs to minimize disruption to customers. While we remain fully committed to this program, it is clear that in the plastic container business it will be more challenging and take longer than we had originally projected."
• Co issues downside guidance for Q4, sees EPS of $0.38-0.48, excluding non-recurring items, vs. $0.55 Capital IQ Consensus Estimate. 
  • "Based on our year-to-date performance and our outlook for the remainder of the year which assumes ongoing incremental spending in the plastic container business as well as the impact of a truncated fruit and vegetable pack in the U.S." 

6:49 am BankUnited beats by $0.02 (BKU) :

• Reports Q3 (Sep) earnings of $0.50 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.48.
• Total interest income rose 11.3% YoY to $223.9 mln.

6:47 am A.O. Smith beats by $0.03, misses on revs; raises FY15 EPS guidance above consensus (AOS) :

• Reports Q3 (Sep) earnings of $0.82 per share, $0.03 better than the Capital IQ Consensus of $0.79; revenues rose 7.5% year/year to $625.1 mln vs the $649.98 mln Capital IQ Consensus.
  • AOS cites higher prices in North America, higher sales of Lochinvar-branded products and commercial water heaters in the U.S., and continued demand for the company's water heating and water treatment products in China.
  • Sales in China increased nearly 11%. Excluding the impact from the strengthening U.S. dollar, China sales increased over 13%.
  • Residential water heater volumes in the U.S. declined in the current third quarter as compared with last year.
• Co issues upside guidance for FY15, sees EPS of $3.08-3.12 vs. $3.07 Capital IQ Consensus Estimate. "Sales for the first nine months in China were up 15 percent in local currency, and we expect to maintain that growth rate for the full year."

6:46 am PowerSecure announces the award of $50 mln in new business, 2/3 of which is distributed generation business (POWR) : Co  has been awarded ~ $50 million in new business, including ~ $33 million of new distributed generation (DG) business, ~ $9 million of new energy efficiency business and ~ $8 million of new utility infrastructure business.

6:43 am McEwen Mining reports results of a feasibility study for its Gold Bar Project in Nevada, estimating annual gold production of 65K oz (MUX) :

The key outcomes of the study included:

• An Estimated initial capital expenditures of $60 million, with a pay-back period of 3 years at $1,150/oz gold and 2 years at $1,300/oz gold
• Average annual gold production of 65,000 oz at a cash cost of $728/oz
• Estimated Life-of-mine (LoM) ore production of 13 million tons at a diluted gold grade of 0.032 opt (1.1 gpt) resulting in 325,000 oz payable gold
• An Updated in-pit resource estimate: 611,000 oz M&I and 111,000 oz Inferred

6:38 am Capital Bank reports Q3 core EPS of $0.33 vs $0.33 Capital IQ Consensus (CBF) :

• The net interest margin for Q3 was 3.82%, a decline of 12 bps QoQ.
• Loan portfolio grew 12% YoY
  
• Co declared a $0.10/share quarterly common stock dividend. 
• Last quarter, the Board approved a quarterly common dividend program commencing in the third quarter at an amount to be determined

6:32 am Marketaxess misses by $0.02, reports revs in-line (MKTX) :

• Reports Q3 (Sep) earnings of $0.60 per share, $0.02 worse than the Capital IQ Consensus of $0.62; revenues rose 15.6% year/year to $74.2 mln vs the $74.4 mln Capital IQ Consensus. 
• Total trading volume of $239.7 billion, up 31.6%
• "Our third quarter results reflect strong market share gains across all of our core products. In spite of less favorable credit market conditions during the quarter, we reached record estimated market share levels in both U.S. high-grade and high-yield bonds... Adoption of our Open Trading solutions is growing and we saw new records during the quarter for Open Trading volume and trade count."

6:32 am Atara Biotherapeutics and QIMR Berghofer Medical Research Institute enter into exclusive license and research agreements (ATRA) :

Under the terms of the agreements, Co obtained an exclusive, worldwide license to develop and commercialize allogeneic cytotoxic T-lymphocytes directed against multiple epitopes of the Epstein-Barr virus and multiple epitopes of the cytomegalovirus utilizing technology developed by QIMR Berghofer. Initial applications for which the technology may be appropriate include the treatment of certain cancers such as gastric cancer, nasopharyngeal carcinoma and glioblastoma multiforme and certain autoimmune disorders such as multiple sclerosis.

• In consideration for the exclusive license, QIMR Berghofer will receive an upfront payment and will receive additional payments based on achievement of certain development, regulatory and sales-related milestones, as well as royalty payments based on future sales, if any.

6:32 am Allot Comms receives a Q4, $10 million expansion order from a Tier-1 mobile operator, for its Service Gateway Tera and ClearSee Network Analytics products (ALLT) :  

6:32 am RR Donnelley & Sons acquires Courier Advisory Group; terms not disclosed (RRD) : Courier Advisory Group is a provider of managed delivery services that includes third-party logistics, scheduled and on-demand delivery, and managed courier services for a number of industries.

6:31 am Nielsen reports EPS in-line, revs in-line (NLSN) :

• Reports Q3 (Sep) earnings of $0.69 per share, in-line with the Capital IQ Consensus of $0.69; revenues fell 2.6% year/year to $1.53 bln vs the $1.54 bln Capital IQ Consensus.
• Revenues within the Buy segment decreased 7.1%, or increased 4.1% on a constant currency basis, to $816 million.
• Revenues in the developed markets grew 3.1% on a constant currency basis, fueled by continued investments and client wins.
• Buy emerging markets revenue grew 6.3% on a constant currency basis, despite the macroeconomic headwinds. This was a reflection of strong growth in the larger markets paired with softness in some of the secondary countries within the global footprint.

6:31 am Athersys and Chugai Pharmaceutical Co end their license agreement for MultiStem cell therapy (ATHX) : Co announces today that Athersys and Chugai Pharma have ended the license agreement between them for the exclusive development and commercialization of MultiStem cell therapy for ischemic stroke in Japan. The parties were unable to reach an agreement on the modification of the financial terms and on development strategy in Japan, in light of the results from the Phase 2 clinical study. All rights will revert to Athersys, and Athersys will retain the $10 mln license fee paid by Chugai. Athersys remains enthusiastic about the development of MultiStem cell therapy in Japan.

6:27 am Asbury Automotive beats by $0.01, beats on revs (ABG) :

• Reports Q3 (Sep) earnings of $1.43 per share, $0.01 better than the Capital IQ Consensus of $1.42; revenues rose 14.0% year/year to $1.72 bln vs the $1.66 bln Capital IQ Consensus. 
• "During the last four quarters, we have acquired dealerships representing over $400 million in annualized revenues, reduced our share count by approximately 15% and improved our operating margins... Despite continued pressure on new vehicle margins, we increased same store revenues 8%, grew same store gross profit 6% and delivered overall income from operations growth of 16%."

6:17 am ARM Holdings follow up: ARM.L up 7% at three month high in London after beating by GBP0.01 on in-line rev; guides FY15 rev in-line (ARMH) :

• Reports Q3 (Sep) earnings of GBP0.08 per share, GBP0.01 better than the Capital IQ Consensus of GBP0.07; revenues rose 24.3% year/year to GBP243.1 mln vs the GBP240.81 mln Capital IQ Consensus.
• Group revenues in US$ up 17% year-on-year ( revenues up 24% year-on-year)
  • Processor licensing revenue in US$ up 5% year-on-year
  • Processor royalty revenue in US$ up 37% year-on-year
  • Normalised PBT and EPS up 27% and 29% year-on-year respectively
• Outlook - Co expects group dollar revenues for the full-year to be in-line with market expectations. 
  • ARM enters the final quarter of 2015 with strong royalty momentum, as indicated by industry and customer data, and a healthy licensing pipeline.

6:11 am Polaris Inds beats by $0.02, beats on revs; narrows FY15 guidance, in-line (PII) :

• Reports Q3 (Sep) earnings of $2.30 per share, $0.02 better than the Capital IQ Consensus of $2.28; revenues rose 11.8% year/year to $1.46 bln vs the $1.43 bln Capital IQ Consensus.
• Co issues in-line guidance for FY15, raises low end of EPS to $7.37-7.42 from $7.32-7.42 vs. $7.40 Capital IQ Consensus Estimate; lowers high end of FY15 revs to +10-11% to ~$4.93-4.97 bln frin +10-12% vs. $4.99 bln Capital IQ Consensus Estimate. 
• "Our record third quarter results continue to reflect the efficacy of our long-term strategy and the resiliency of the Polaris organization, as motorcycle growth accelerated, ORV share gains continued and our developing adjacencies built momentum. We accomplished this in a difficult environment, with the combination of weakening currencies and softening economies adding to the pressure we face from the sluggish oil and agriculture markets, all in the midst of the most competitive powersports landscape we have seen in nearly a decade."

6:10 am Natus Medical beats by $0.01, beats on revs; guides Q4 EPS in-line, revs above consensus; raises FY15 guidance (BABY) :

Reports Q3 (Sep) earnings of $0.39 per share, $0.01 better than the Capital IQ Consensus of $0.38; revenues rose 5.2% year/year to $94.58 mln vs the $93.62 mln Capital IQ Consensus.

• Co issues guidance for Q4, sees EPS of $0.47-0.49 vs. $0.48 Capital IQ Consensus Estimate; sees Q4 revs of $102-105 mln vs. $101.83 mln Capital IQ Consensus Estimate.
• Co raises guidance for FY15, sees EPS of $1.51-1.53 (up from $1.50-1.52) vs. $1.51 Capital IQ Consensus Estimate; sees FY15 revs of $378-381 mln (up from 376-378 mln) vs. $376.93 mln Capital IQ Consensus Estimate.

6:09 am Thermo Fisher beats by $0.01, reports revs in-line; raises FY15 guidance (TMO) :

• Reports Q3 (Sep) earnings of $1.80 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $1.79; revenues fell 1.2% year/year to $4.12 bln vs the $4.1 bln Capital IQ Consensus.
• Co issues raised guidance for FY15, raises bottom end of EPS to $7.33-7.41 from $7.28-7.41, excluding non-recurring items, vs. $7.39 Capital IQ Consensus Estimate; raises FY15 revs to $16.81-16.91 bln from $16.72-16.86 bln vs. $16.81 bln Capital IQ Consensus Estimate.
• Co expanded adjusted operating margin by 70 basis points to 22.6%.

6:06 am Carlisle Cos misses by $0.06, misses on revs (CSL) :

• Reports Q3 (Sep) earnings of $1.56 per share, $0.06 worse than the Capital IQ Consensus of $1.62; revenues rose 7.6% year/year to $973.1 mln vs the $1031.58 mln Capital IQ Consensus.
  • Net sales from the acquisition of the Finishing Brands business, which now constitutes the Carlisle Fluid Technologies segment, contributed 7.5% to net sales in the third quarter. Net sales from the acquisition of LHi Technology, reported in the Carlisle Interconnect Technologies segment, contributed 2.9% to net sales. Organic net sales declined by 1.0%. Fluctuations from foreign exchange had a negative impact to net sales of 1.8%.

6:01 am Sino Mercury Acquisition announces shareholder approval for its merger with Wins Financial Group; transaction consumation expected in the next several days (SMAC) :  

5:48 am S&P futures vs fair value: +5.80. Nasdaq futures vs fair value: +14.30. :

5:48 am European Markets : FTSE...6357.64...+12.50...+0.20%.  DAX...10188.41...+40.70...+0.40%.

5:48 am Asian Markets : Nikkei...18554.28...+347.10...+1.90%.  Hang Seng...Holiday.........

5:48 am Avolon Holdings receives shareholder approval for merger with with Bohai Leasing; expect to complete the Merger no later than the first quarter of 2016 (AVOL) :

5:10 am Orion Marine sees Q3 EPS below consensus; completes its previously discussed asset review (ORN) :

• Co issues guidance for Q3 (Sep), sees EPS of ($0.30)-($0.25) vs $0.14 Capital IQ Consensus Estimate.
  • During the third quarter of 2015, five projects in the Company's Heavy Civil Marine Construction segment, specifically managed out of the Company's Tampa, Florida office, experienced significant increases to their respective forecasted costs as a result of changes in management's estimate to complete the projects and/or actual costs incurred when performing and finalizing the projects.
  • The impacts from the five Tampa projects, along with one-time, non-cash expenses related to the disposition of under-utilized equipment and facilities, and the valuation allowance on a portion of the Company's Florida deferred tax asset, will significantly affect the Company's third quarter results.
• Additionally during the quarter, the Company completed its previously discussed asset review and it has identified several non-essential or underutilized assets, both equipment and property, that will be disposed of and will result in a one-time, non-cash charge of approximately $2.6 million. The disposal of these assets will not have a material impact on ongoing operations, but will result in an annual expense reduction of ~$1.2 million.
  

4:56 am Toyota Motor to recall ~2 mln vehicles for Power Window Master Switch (TM) : The Power Window Master Switch in the involved vehicles may have been manufactured with insufficient lubricant grease.

4:53 am Syngenta CEO steps down; appoints co's CFO at interim CEO (SYT) :

Co announced that Mike Mack has informed the Board of his intention to step down as Chief Executive Officer and Executive Director of the Company. The Board accepted Mike's decision and he will be leaving the Company at the end of October 2015.

• John Ramsay, Chief Financial Officer, is appointed CEO ad interim until the appointment of a new Chief Executive.

4:51 am General Motors appoints 2 executives for litigation oversight (GM) : Co announced that it has appointed Ann Cathcart Chaplin as Deputy General Counsel for Litigation, effective Dec. 14, 2015. She will report to Craig Glidden, executive vice president and general counsel. In addition, Jeffrey Taylor is joining the company effective November 1 as Deputy General Counsel for Federal Oversight. He will also report to Glidden.

4:38 am KLA-Tencor beats by $0.15, beats on revs (KLAC) :

• Reports Q1 (Sep) earnings of $0.71 per share, $0.15 better than the Capital IQ Consensus of $0.56; revenues were unchanged from the year-ago period at $643 mln.

4:18 am Lam Research beats by $0.10, reports revs in-line; guides Q2 EPS above consensus, revs above consensus (LRCX) :

• Reports Q1 (Sep) earnings of $1.82 per share, $0.10 better than the Capital IQ Consensus of $1.72; revenues rose 38.8% year/year to $1.6 bln vs the $1.6 bln Capital IQ Consensus.
• Co issues upside guidance for Q2, sees EPS of $1.32-1.52 vs. $1.30 Capital IQ Consensus Estimate; sees Q2 revs of ~1.41 bln (+/-$75 mln) vs. $1.4 bln Capital IQ Consensus Estimate.

4:13 am KLA-Tencor to be acquired by Lam Research (LRCX) for value of ~$67.02/share, or ~$10.6 bln (KLAC) :

Lam Research (LRCX) and KLA-Tencor (KLAC) announced that they have entered into a definitive agreement, unanimously approved by the boards of directors of both companies, for Lam Research to acquire all outstanding KLA-Tencor shares in a cash and stock transaction.

• KLA-Tencor stockholders will be entitled to elect to receive for the shares of KLA-Tencor stock they hold the economic equivalent of $32.00 in cash and 0.5 of a share of Lam Research common stock, in all-cash, all-stock, or mixed consideration, subject to proration as more fully described in the merger agreement.
• The transaction values KLA-Tencor at ~$67.02 per share, or $10.6 billion in equity value based on the closing stock price of Lam on October 20, 2015
• The combined company will have approximately $8.7 billion in pro forma annual revenue.
• The transaction is expected to be accretive to Lam's non-GAAP earnings and free cash flow per share during the first 12 months post-closing.
  • The combined company expects to realize $250 million in annualized cost synergies within 18 to 24 months of closing and anticipates generating approximately $600 million in incremental annual revenue by 2020 through improved differentiation of each company's products and creation of new capabilities.

4:04 am On The Wires (:WIRES) :

• ARM (ARMH) is continuing its support for China's expanding Internet of Things industry by providing a new cloud-enabled education kit for universities. The ARM IoT Education Kit will teach students how to use the ARM mbed IoT Device Platform, create smartphone apps and control connected devices such as a robot or a mini weather station to gather temperature, humidity and air pressure data.
• INTL FCStone (INTL) announced that its Singapore-based subsidiary, INTL FCStone Pte. Ltd., received its Capital Markets Services License from the Monetary Authority of Singapore and with it has significantly expanded its capabilities and key personnel in an effort to meet the increasing demand for commodity risk management services. 
• Toshiba Corporation (TOSBF) launched a new line-up of NAND flash memory products for embedded applications that are compatible with the widely used Serial Peripheral Interface
• Lockheed Martin (LMT) successfully completed the maiden flight of the F-16V, the latest and most advanced F-16 on the market. 
• Landmark, a Halliburton (HAL) business line and a leading provider of software for the upstream oil and gas industry, and CGG (CGG) announced a geosciences technology collaboration. The collaboration will allow shared customers to seamlessly access best-in-class interpretation and reservoir characterization technologies and geoscience data from both companies, using the industry's first E&P enterprise class platform
• CEVA (CEVA) introduced a new silicon-based DSP development platform to accelerate the deployment of 'smart and connected' devices.
  
  

3:47 am Credit Suisse misses by CHF0.09, misses on revs; proposes two share capital increases to further strengthen the Group's capital base (CS) :

• Reports Q3 (Sep) earnings of CHF0.45 per share, CHF0.09 worse than the Capital IQ Consensus of CHF0.54; revenues fell 9.0% year/year to CHF5.99 bln vs the CHF6.42 bln Capital IQ Consensus.
  • Reported Core pre-tax income of CHF 861 million
  • Reported net income of CHF 779 million
  • Both Private Banking & Wealth Management and Investment Banking results were impacted by low levels of client activity and adverse market conditions
  • New assets: CHF 16.4 billion
• Additionally, co will propose to an Extraordinary General Meeting to be held on November 19, 2015, to approve two separate share capital increases:
  • A first capital increase through the issuing of new registered shares to a number of qualified investors, and a second capital increase through a rights offering for existing shareholders.
  • Through the proposed share capital increases, Credit Suisse Group AG intends to strengthen its Common Equity Tier 1 capital and gain greater financial flexibility for the implementation of its strategic objectives.

3:02 am Partner Comms to buy back Series B, C and E Notes (PTNR) :

Co adopted a buy-back plan of Series B, C and E Notes, which are traded on the Tel Aviv Stock Exchange, according to which the Company may, from time to time, repurchase its Series B, C and E Notes.

• Under the Plan, the Company is authorized to repurchase its Series B, C and E Notes up to an aggregate amount of NIS 250 million in open market transactions on the TASE, in privately negotiated transactions or in a combination of the two, until October 19, 2016.

2:58 am Novartis acquires Admune Therapeutics and licensing agreements with Palobiofarma and XOMA (XOMA) Corp (NVS) :

Novartis announced today that it is broadening its portfolio of cancer immunotherapies with the acquisition of Admune Therapeutics and licensing agreements with Palobiofarma and XOMA (XOMA) Corporation.

• With four programs currently in clinical trials and five more expected to enter the clinic by the end of 2016, Novartis has rapidly built a robust portfolio of programs focused on stimulating the body's immune system to combat cancers.
• Deals add IL-15, adenosine receptor and TGF-beta inhibition programs to Novartis immuno-oncology portfolio.
• All three programs will be explored as monotherapies and in combination with chimeric antigen receptor T-cell technology, novel checkpoint inhibitors, STING agonists and Novartis' deep portfolio of targeted therapies

2:49 am Synta Pharma terminates Phase 3 GALAXY-2 trial of ganetespib and docetaxel (SNTA) :

Co announced it has decided to terminate the Phase 3 GALAXY-2 trial of ganetespib and docetaxel in the second-line treatment of patients with advanced non-small cell lung adenocarcinoma. Based on the review of a pre-planned interim analysis, the study's Independent Data Monitoring Committee concluded that the addition of ganetespib to docetaxel is unlikely to demonstrate a statistically significant improvement in the primary endpoint of overall survival compared to docetaxel alone. The IDMC noted that the combination of ganetespib and docetaxel was generally well tolerated in the study, with an adverse event profile consistent with previous studies combining these agents.

• Upon formal acceptance of the IDMC's recommendation, Synta will communicate with regulatory authorities, and will notify study investigators that treatment with ganetespib should be discontinued in the GALAXY-2 trial.