5:46 pm RigNet announces it has been awarded a contract to provide remote communications solutions to a premium offshore driller across its entire global fleet of existing and newbuild rigs (RNET) : RigNet will provide comprehensive managed remote communications solutions across the customer's fleet of jackups, drillships and semisubmersibles operating in the U.S. Gulf of Mexico, Asia Pacific, Europe and Africa regions. The contract includes provision and maintenance of both stabilized and fixed antennas to deliver communications across multiple satellite bands for greater flexibility.

5:36 pm PBF Energy announces that its Fluid Catalytic Cracking Unit has successfully restarted and is operating to plan; updates production guidance (PBF) :

The co provided an update to the operations at the Delaware City refinery which had been running at reduced rates following an unplanned shutdown of its Fluid Catalytic Cracking Unit on August 21, 2015. The FCC has successfully restarted and is operating to plan. During the outage, the company elected to move forward the planned maintenance of its crude and reformer units. The planned maintenance is expected to be complete by the end of September.

• The company provides the following updated guidance for the remainder of 2015: the East Coast is expected to process approximately 300,000 to 320,000 barrels per day for the third quarter and 320,000 to 340,000 bpd for the fourth quarter; the Mid-Continent is expected to process approximately 165,000 to 175,000 bpd for the third quarter and 150,000 to 160,000 bpd for the fourth quarter.

5:35 pm Synchronoss Tech reiterates that it has a multi-year contract in place with Verizon Wireless (VZ), focused primarily on the company's Personal Cloud offering and related services; no change in the agreement between Synchronoss and Verizon Wireless (SNCR) :

Co reiterates that it has a multi-year contract in place with Verizon Wireless (VZ), focused primarily on the company's Personal Cloud offering and related services. There has been no change in the agreement between Synchronoss and Verizon Wireless.

• Che Phillip, vice president of mobile internet services for Verizon, said, "Verizon's cloud services have been extremely well received by our wireless customers because it's a rich addition to the overall value proposition which is based on America's best and most reliable wireless network. A strategic partner, Synchronoss has supported our successful strategy as it relates to cloud based services for our wireless customers, and most recently we've extended the partnership to deploy similar applications to customers of our wired services. We remain committed to the relationship with Synchronoss as we continue to drive added value and capabilities of our cloud services for Verizon's valued customers."
• Steve Waldis, founder, chairman and CEO of Synchronoss, said, "We are proud to partner with an industry leader such as Verizon Wireless, and our company works tirelessly to deliver world-class products and services to support their strategic initiatives. We have greatly expanded our relationship over time, and in the last year increased our joint commitment by putting in place a new multi-year agreement that extends into 2018. We look forward to continuing to build on our partnership and finding new, innovative ways to further improve the user experience."

5:23 pm Worthington beats by $0.03, misses on revs (WOR) :

Reports Q1 (Aug) earnings of $0.54 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.51; revenues fell 12.1% year/year to $758.15 mln vs the $856.11 mln consensus.

• EPS figure excludes pre-tax impairment and restructuring charges totaling $6.1 million, which reduced GAAP earnings per diluted share by $0.06
• The decrease in revenues was driven by lower volume in all business segments, combined with lower average selling prices in Steel Processing driven by the decline in steel
  prices.
• Gross margin declined $16.5 million from the prior year quarter to $113.0 million on lower volume and the unfavorable impact of inventory holding losses in Steel Processing in the current quarter due to the decline in steel prices.

Outlook: "In the face of challenging markets, we are pleased with the Company's performance and we are optimistic about our momentum going into the next quarter. However, we are mindful of the uncertainty of the macro economic issues and we remain focused on the things we can control. We re-launched our lean Transformation process across the Company and we have already seen a positive impact from several Kaizen events. Our innovation teams are helping us launch new consumer products in Cylinders with more in development."

5:09 pm H.B. Fuller misses by $0.07, misses on revs; guides Q4 EPS, revs below consensus; lowers FY15 EPS, revs guidance below consensus (FUL) :

Reports Q3 (Aug) earnings of $0.61 per share, $0.07 worse than the Capital IQ Consensus Estimate of $0.68; revenues fell 0.5% year/year to $524.13 mln vs the $534.57 mln consensus.

• Co issues downside guidance for Q4, sees EPS of $0.70 vs. $0.78 Capital IQ Consensus Estimate; sees Q4 revs of $540 mln vs. $569.53 mln Capital IQ Consensus Estimate.
• Co lowers guidance for FY15, sees EPS of $2.23 (vs. prior of $2.45) vs. $2.41 Capital IQ Consensus Estimate; sees FY15 revs of $2.075 bln (vs. prior of $2.1 bln) vs. $2.11 bln Capital IQ Consensus Estimate. The co now expects FY15 adj-EBITDA of $270 mln vs. prior guidance of $275 mln. The co stated it was updating its earnings guidance for the 2015 fiscal year primarily to reflect lower revenue expectation in the Americas operating segment and a slightly higher tax rate.

4:52 pm Paylocity announces offering of 3.74 mln shares of common stock by selling stockholders (PCTY) : Co announces that it has commenced a roadshow to market its common stock in connection with a secondary offering by certain Paylocity stockholders who are proposing to sell an aggregate of 3,740,000 shares. Deutsche Bank Securities Inc., BofA Merrill Lynch, William Blair & Company, L.L.C. and Stifel, Nicolaus & Company, Incorporated are serving as joint book-running managers for the offering.

4:34 pm Raymond James releases August operating data (RJF) :

Total securities commissions and fees of $299.7 million increased 8 percent compared to August 2014 and 2 percent compared to July 2015. The growth in August was largely driven by the Private Client Group segment, which started the quarter with a higher level of assets in fee-based accounts. Transactional commissions in the Private Client Group segment and Equity Capital Markets division also benefited from elevated market volatility at the end of the month.

• Client assets under administration of $488.5 billion increased 1 percent over August 2014 but declined 3 percent compared to July 2015, as declines in the equity markets offset positive recruiting and retention results. Similarly, financial assets under management of $68.0 billion increased 3 percent over August 2014 but declined 4 percent compared to July 2015.
• Total net loans at Raymond James Bank reached a record $12.7 billion, an increase of 17 percent over August 2014 and $300 million over July 2015. The growth was driven by consistently strong production coupled with a decrease in the rate of payoffs during the month.

4:33 pm Pennsylvania R.E.I.T. announces completion of refinancing of Willow Grove Park and Springfield Mall; loans total $202.5 mln (PEI) : Co announces it has completed the refinancings of Willow Grove Park and Springfield Mall. The loans total $202.5 million, at PREIT's share, and carry a weighted average interest rate of 3.97%, generating proceeds of $38.1 million and future annual interest expense savings of approximately $2.5 million on the prior loan balances. The Company will use proceeds to repay amounts outstanding under its 2013 Revolving Facility.

4:32 pm Alpha Pro Tech announces that CEO and Co-Founder Sheldon Hoffman has retired effective September 21 (APT) : Effective immediately, Al Millar will assume the role of CEO in addition to his current role as President of the company. The vacancy on the Board of Directors created by Mr. Hoffman's retirement is not being filled at this time. The Board of Directors expects to appoint a director to replace Mr. Hoffman in the near future.

4:31 pm Fairmount Santrol announces that CFO Christopher Nagel will leave his position, effective October 20, 2015 (FMSA) :

Nagel's departure is not the result of any dispute or disagreement with the Company or any matter relating to the Company's accounting practices or financial statements.

• Fairmount Santrol has engaged an executive search firm to assist in finding a successor and will begin meeting with qualified candidates as soon as possible.
• Within the next few weeks, the Company expects to designate an interim CFO.

4:31 pm Vanda Pharma announces that a Fanapt patent is now listed in the FDA's Orange Book (VNDA) :  As described in the Orange Book, this patent covers a method of treating schizophrenia by administering Fanapt to a patient by reducing the dose in patients who are also being treated with the antidepressant fluoxetine.

4:28 pm Valero Energy Partners acquires the Corpus Christi Terminal Services Business from a subsidiary of Valero Energy Corporation (VLO) for $465 mln (VLP) :

Co announced that the board of directors of its general partner has approved the Partnership's acquisition of the Corpus Christi Terminal Services Business from a subsidiary of Valero Energy Corporation (VLO) for total consideration of $465 million. The transaction is expected to close effective October 1, 2015.

• The business to be acquired includes two terminals that support Valero's Corpus Christi East and West refineries. The assets consist of 134 tanks with 10.1 million barrels of storage capacity for crude oil, intermediates, and refined petroleum products.
• The Partnership expects to finance the acquisition with $395 million in borrowings under a subordinated loan agreement with Valero, as well as the issuance of additional common units and general partner units to Valero subsidiaries, valued collectively at ~$70 million.
• Upon closing, the Partnership plans to enter into a 10-year terminaling agreement with a subsidiary of Valero. The business to be acquired is expected to contribute ~$50 million of EBITDA in its first full year of operation

4:28 pm Boeing confirms the signing of several new airplane orders, and an expanded collaboration with China's aviation industry (BA) :

The co today, with China President Xi Jinping, announced several agreements that are expected to broaden and deepen mutually beneficial cooperation between Boeing and China.

• Boeing and China Aviation Supplies Holding Company have signed a General Terms Agreement related to the purchase of 300 airplanes. The package has a value of approximately $38 billion at list prices
• Boeing and the National Development Reform Commission have signed a Memorandum of Understanding that will advance their long-term strategic cooperation
• Boeing and Commercial Aircraft Corporation of China will partner to open a facility in China for the interiors completion, paint and delivery of Boeing 737 aircraft to Chinese customers. The joint venture facility will significantly expand Boeing's collaboration with China's aviation industry while also enabling future production rate increases at Boeing's 737 final assembly factory in Renton, Wash. This China-based facility will not reduce 737 Program employment in Washington State.
• Boeing and Aviation Industry Corp. of China will broaden their long-term collaboration to support Boeing's commercial airplane programs. In a framework agreement, the companies said they intend to further advance AVIC's manufacturing capabilities by adding major component and assembly work packages; strengthening leadership; and developing AVIC's broad aviation infrastructure and business practices, including supply chain management.

4:26 pm ESSA Pharma announces FDA approval for its IND application to initiate a Phase 1/2 clinical study of EPI-506, to treat metastatic castration-resistant prostate cancer in patients who have failed current therapies (EPIX) :

Enrolment in the clinical trial is expected to commence in the next few weeks. The trial is expected to enroll ~150 subjects. The Company also intends to seek approval from the Health Protection Branch in Canada to include Canadian sites in the Phase 1/2 study, and plans to file a Clinical Trial Authorization application with the HPB in order to obtain that approval. 

• The approval of the IND application is expected to trigger an additional $3.7 million of funding from the Cancer Prevention and Research Institute of Texas. Under ESSA's agreement with CPRIT, a total of $12 million of grant funding (repayable out of potential product revenues) will be made available to the Company, of which $2.8 million has already been received. ESSA expects to receive the additional $3.7 million in the next few weeks.

4:10 pm BSQUARE enters into a two-year, $12 million credit agreement (BSQR) : The credit agreement provides for interest-only payments on outstanding draws with principal due on September 22, 2017, and provides the company with additional financial resources that can be used, when needed, to grow

4:08 pm Closing Market Summary: Energy and Materials Pace Midweek Retreat (:WRAPX) :

The major averages registered their second consecutive retreat on Wednesday with the S&P 500 shedding 0.2% while the Nasdaq Composite (-0.1%) ended just ahead.

Overall, the midweek session was a choppy affair that saw the benchmark index spend some time on both sides of its flat line. That trading dynamic resulted from mixed performance among the ten sectors as three top-weighted groups-technology (+0.2%), financials (+0.1%), and health care (-0.1%)-displayed flashes of intraday strength while most of the remaining sectors struggled.

Most notably, commodity-sensitive energy (-1.4%) and materials (-2.1%) finished at the bottom of the leaderboard while the industrial sector (-0.7%) also kept the market under pressure. Altogether, the three sectors responded negatively to last night's release of China's preliminary September Caixin Manufacturing PMI, which fell to a 6.5-year low of 47.0 from 47.3 (expected 47.5).

It is worth pointing out that the energy sector was also pressured by crude oil, which climbed in the morning, but reversed from its best level in a move that coincided with equities retreating from their morning highs. WTI crude continued its retreat into the afternoon, ending the pit session lower by 3.8% at $44.53/bbl.

On the upside, the top-weighted technology sector (+0.2%) settled in the lead thanks to gains among large cap names like Apple (AAPL 114.32, +0.92), Google (GOOGL 653.29, +0.09), Intel (INTC 28.74, +0.07), and Microsoft (MSFT 43.87, -0.03). However, high-beta chipmakers did not fare as well as Intel, evidenced by a 0.7% decline in the PHLX Semiconductor Index.

Elsewhere, financials (+0.1%) and health care (-0.1%) displayed intraday strength, but the health care sector could not stay in the green into the close as renewed weakness in biotechnology took a toll on the countercyclical sector. The iShares Nasdaq Biotechnology ETF (IBB 332.82, -2.58) surrendered 0.8%, extending this week's decline to 6.7%.

Today's choppy action in the stock market had little impact on Treasuries as the 10-yr note spent the day in the red, pushing its yield up two basis points to 2.15%.

Investor participation was on the light side with fewer than 800 million shares changing hands at the NYSE floor.

Economic data was limited to the weekly MBA Mortgage Index, which surged 13.9% to follow last week's 7.0% decrease.

Tomorrow, weekly Initial Claims (Briefing.com consensus 271K), August Durable Orders (expected -2.0%) will be reported at 8:30 ET while August New Home Sales (expected 515,000) will be announced at 10:00 ET.

• Nasdaq Composite +0.4% YTD
• Russell 2000 -5.3% YTD
• S&P 500 -5.8% YTD
• Dow Jones Industrial Average -8.7% YTD

4:05 pm CB&I is awarded a contract by Total Petrochemicals & Refining USA, to provide its ethylene technology and front-end engineering and design services for a proposed new ethane cracker (CBI) :  

4:03 pm Steelcase beats by $0.02, beats on revs; guides Q3 EPS in-line, revs in-line (SCS) :

Reports Q2 (Aug) earnings of $0.35 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.33; revenues rose 4.1% year/year to $819 mln vs the $796.6 mln consensus. Co issues in-line guidance for Q3, sees EPS of $0.31-0.35, excluding non-recurring items, vs. $0.32 Capital IQ Consensus Estimate; sees Q3 revs of $800-820 mln vs. $811.60 mln Capital IQ Consensus Estimate.

"In the Americas, second quarter orders increased 4 percent organically compared to the prior year, and reflected fewer requests for extended delivery dates compared to the past three quarters. As a result, order backlog in the Americas at the end of the second quarter was approximately 11 percent lower compared to the end of the first quarter and 7 percent higher compared to the prior year. EMEA second quarter orders declined 7 percent on an organic basis compared to a strong prior year, which grew by 10 percent and reflected a strong ending backlog".

4:02 pm MercadoLibre obtains approval from the Argentine Industry Secretary for income tax and payroll exemptions under a new software development law (MELI) :

• These income tax and payroll exemptions are expected to not only reduce effective income tax rate for Argentinean ops for as long as it maintains eligibility under the new law, but also will generate a reduction in labor costs. 
• On September 17, 2015, the Argentine industry secretary issued Resolution 1041/2015 approving the application for eligibility under the new software development law. As a result, Argentinean ops have been granted a tax holiday, retroactive to September 18, 2014... The new software development law will expire on December 31, 2019.
• As a result of MercadoLibre's eligibility under the new law, co expects to record a one-time income tax gain of approximately $13.0 mln to $15.5 mln in the third quarter of 2015. Of that gain, co  anticipates that $4.0 -5.5 mln will be attributed to Q3 2015. In addition, the co estimates that its Argentine effective income tax rate Q3 2015 will be materially lower than the statutory income tax rate. Furthermore, co expects to record a one-time labor cost gain of ~$3.0 mln to $4.5 mln in Q3 2015. Of that gain, co anticipates that $0.7 -1.5 mln will be attributed to Q3 2015.

4:02 pm Sabra Healthcare REIT reports an update on the tenant of the Forest Park Medical Center-Frisco hospital (SBRA) :

Recently, Sabra served Frisco with a notice of pending event of default under its lease as a result of Frisco's non-payment of rent. Due to Frisco's failure to obtain the required financing under the amended memorandum of understanding between Sabra and Frisco described in Sabra's Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, the MOU did not become effective and has been withdrawn.

• On September 22, 2015, Frisco filed a petition for relief under Chapter 11 of the United States Bankruptcy Code in the Eastern District of Texas. Frisco has retained a firm to market the hospital assets for sale which may or may not include Sabra's investment in the hospital real estate.
• Any sale of the hospital real estate or any new lease in favor of a buyer would require Sabra's consent and approval.

4:01 pm Conatus Pharma announces top-line results from Multicenter Phase 2 portal hypertension clinical trial in patients with liver cirrhosis; study met various primary endpoints (shares halted) (CNAT) :

The co announced that its exploratory Phase 2 Portal Hypertension clinical trial of emricasan, a first-in-class, orally active pan-caspase inhibitor, met the following primary endpoints: a) a clinically meaningful and statistically significant change from baseline in hepatic venous pressure gradient, a measurement of pressure in the portal vein, in patients with liver cirrhosis and severe portal hypertension; and b) a statistically significant change from baseline in cleaved Cytokeratin 18, a mechanism-specific biomarker of excessive cell death that contributes to chronic inflammation, in the total evaluable liver cirrhosis patient population.

• The HVPG endpoint was analyzed in: a) patients with baseline HVPG values =12 mmHg (N=12); b) patients with baseline HVPG values increase from mean baseline of 8.1 mmHg; p=0.12) or the total evaluable patient population (--1.1 mmHg from mean baseline of 15.2 mmHg; p=0.26). The cCK18 endpoint, analyzed in the total evaluable patient population, showed a statistically significant reduction (presults from prior trials, emricasan was safe and well tolerated in the PH trial, with no dose-limiting toxicities and no drug-related serious adverse events. Detailed results are expected to be presented in a future scientific forum.

3:37 pm Treasury Market Summary (BONDX) :

Treasuries End Mixed

• U.S. Treasuries flirted with their unchanged marks for most of today's session. They seesawed on the stock market's repeated attempts at rallies and remarks from ECB President Mario Draghi. Oil reversed course lower despite a larger-than-expected draw on crude stockpiles last week and the euro gained against all of the other majors. Fed Chair Yellen will speak publicly tomorrow afternoon and her remarks will be closely watched
  
• Yield Check:
  
  • 2-yr: unch at 0.70%
    
  • 5-yr: +1 bp to 1.44%
    
  • 10-yr: +1 bp to 2.15%
    
  • 30-yr: unch at 2.94%

• News:
  
  • Mario Draghi gave prepared remarks to the European Parliament followed by a question-and-answer session:
    
    • He said that "more time is needed" to assess whether the emerging market slowdown is temporary or permanent and to assess the "driving forces behind the drop in the international price of commodities and behind the recent episodes of severe financial turbulence"
      
    • He said that if the inflation outlook weakens "over the medium term more fundamentally than we project at present, we would not hesitate to act."
      
    • Two members of the ECB's Governing Council, Ewald Nowotny and Bostjan Jazbec, had earlier thrown cold water on investor hopes for a fast-tracked route to ECB balance sheet expansion. Nowotny said that an expansion deserves "a much more thorough examination" and Jazbec said that "It seems that QE is bearing results, so now it's too early to talk about any new policies."
      
  • The MBA Mortgage Index for the week ending 9/19 rose 13.9% versus the prior reading of -7.0%. Much of the activity was from refinancing and analysts attributed it to the uncertainty surrounding the September FOMC meeting
    
  • U.S. crude oil stockpiles fell a greater-than-expected 1.93 mln barrels in the week to September 19. The report by the U.S. Energy Information Administration also showed production rising to 9.13 mln barrels per day
    
  • The $35 bln 5-year note auction was met with strong demand from indirect bidders and stopped through by 0.9 basis points:
    
    • High yield: 1.467%
      
    • Bid-to-cover: 2.57
      
    • Indirect bid: 63.5%
      
    • Direct bid: 5.0%

• Commodities:
  
  • WTI crude: -3.65% to $44.67/bbl.
    
  • Gold: +0.50% to $1,130.40/troy oz.
    
  • Copper: -0.15% to $2.294/lb.

• Currencies:
  
  • EUR/USD: +0.44% to $1.1182
    
  • USD/JPY: +0.18% to 120.23

• Data Out Thursday:
  
  • Initial Jobless Claims for the week ending 9/19 and Continuing Jobless Claims for the week ending 9/12 (08:30 ET)
    
  • August Durable Goods Orders and Durable Goods ex-transportation (08:30 ET)
    
  • August New Home Sales (10:00 ET)
    
  • Natural Gas Inventories for the week ending 9/19 (10:30 ET)
    
• Treasury Auction:
  
  • $29 bln 7-year note auction (results at 13:00 ET)
    
• Fed Speaker:
  
  • Fed Chair Yellen (17:00 ET) (FOMC Voter)

3:32 pm Earnings Calendar (:SUMRX) :

Today after the close look for the following companies to report:

• WOR, SCS, FUL

Tomorrow before the open look for the following companies to report:

• ACN, KBH, OMN, SCHL

2:42 pm Currency Market Summary (:FOREX) :

Euro Rallies after Draghi Remarks

• The euro rallied today after European Central Bank President Mario Draghi did not provide strong enough assurance to short-sellers of the single currency that the ECB's asset purchase program would be expanded/extended in the near term
  
  • He said that, "More time is needed to determine in particular whether the loss of growth momentum in emerging markets is of a temporary or permanent nature and to assess the driving forces behind the drop in the international price of commodities and behind the recent episodes of severe financial turbulence."
    
  • Also contributing to the rally was the release of purchasing managers' indices for the eurozone, France, and Germany
    
    • In the eurozone, the initial reading of Markit's Composite PMI showed a greater-than-expected fall to 53.9 in September from 54.3 in October
      
    • The internals of the survey were more positive, with faster growth of new work and backlogs of orders
      
    • Markit said that Q3 is shaping up to be the best quarter for the eurozone in 4 years
      
  • EUR/USD: +0.54% to $1.1194
    
• The U.S. Dollar Index fell 0.14% to 96.15
  
• GBP/USD: -0.63% to $1.5255
  
• USD/JPY: +0.20% to 120.25
  
• USD/CHF: +0.27% to 0.9775
  
• USD/CAD: +0.45% to 1.3335
  
  • Canadian core retail sales (which exclude autos) were flat m/m in July after rising 0.5% in June. Economists were expecting another gain in July
    
    • Headline retail sales rose 0.5% m/m in July, in line with expectations and outpacing the gain of 0.4% from June
      
• AUD/USD: -1.17% to $0.6998
  
  • The Conference Board's Leading Economic Indicators index rose 0.3% m/m in July, with 5 out of 7 components rising. That was the first rise for LEI in five months
    
    • The Coincident Index rose 0.2% m/m
      
• NZD/USD: -0.78% to $0.6245

1:35 pm Notable movers of interest (SCANX) :

The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

• TSO (97.84 +3.69%): Refiners outperforming (VLO also higher).
• CCL (51.25 +2.93%): Upgraded to Buy from Neutral at Nomura, PT raised to $61 at Stifel following yesterday's earnings and subsequent stock reaction.
• PFE (32.59 +1.02%): Pfizer and GlaxoSmithKline's (GSK) ViiV Healthcare announced that its Phase IIIb/IV STRIIVING study met its primary endpoint.

Large Cap Losers

• BBD (5.31 -5.18%): Continued weakness in Brazilian names (ITUB, VIV, PBR, ABEV, BSBR also lower).
• EPD (25.92 -2.45%): Oil & gas names weak with WTI crude -3.8% (LNG, EC among names lower).
• JD (24.46 -4.23%): Chinese names weaker following a 2.2% (BABA, BIDU among names from the region lower).

Mid Cap Gainers

• ABGB (5.36 +24.36%): Reports the co is near a deal regarding its planned $725 mln capital offering.
• BMR (21.97 +14.52%): Bloomberg reporting the co is exploring a sale, and has received interest from various parties, including Blackstone (BX).
• FNFG (10.11 +12.78%): Reports out the co is exploring a sale.

Mid Cap Losers

• LPI (9.57 -7.71%): Mid-cap oil and gas names hit especially hard with WTI crude pulling back 3% (WLL, SDRL, CPG, WFT, among many under pressure.
• WYNN (60.56 -5.27%): Casino's underperforming amid continued Macau slowdown fears (MPEL also lower).
• PCRX (57.22 -5.63%): Underperforming after competitor Heron Therapeutics (HRTX) announced positive top-line results from its Phase 2 study in the management of post-operative pain. The primary and all secondary endpoints were met.

1:10 pm Nasdaq Comp +1.6 climbs out of the red, S&P -3.7 and Dow -67 extending push off lows (:TECHX) : Sector leadership on the push off the lows has been noted in: Technology XLK, Software IGV, Internet FDN, Biotech IBB.

1:06 pm GoPro announces it is bringing immersive, spherical videos to Facebook's (FB) News Feed (GPRO) : Beginning today, people on Facebook can experience exclusive GoPro 360-degree video directly through their web browser or Android mobile device.

1:04 pm Auction Out (BONDX) :

Treasury Auction Results

• $35 bln 5-year note auction
  
  • Auction results:
    
    • High yield: 1.467%
      
    • Bid-to-cover: 2.57
      
    • Indirect bid: 63.5%
      
    • Direct bid: 5.0%
      
  • Average results of prior 12 auctions:
    
    • High yield: 1.550%
      
    • Bid-to-cover: 2.49
      
    • Indirect bid: 57.9%
      
    • Direct bid: 7.69%

12:57 pm Midday Market Summary: Growth-Sensitive Sectors Weigh (:WRAPX) :

The major averages hover near their lows at midday with the Dow Jones Industrial Average (-0.6%) trading behind the S&P 500 (-0.4%) and Nasdaq Composite (-0.1%).

The current standing represents a turn from the morning dynamic that saw the S&P 500 spent the first 90 minutes of the day in a slow climb; however, continued weakness in most cyclical sectors has sent the market into the red. Growth-sensitive materials (-1.6%), industrials (-0.9%), and energy (-0.8%) have paced the slide to midday lows while commodities have also struggled following a disappointing Caixin Manufacturing PMI from China (47.0; consensus 47.5), which fell to a 6.5-year low.

Interestingly, crude oil was able to rally briefly, but that move has been retraced fully. The energy component hit a session high at $47.15/bbl, but has followed that with a slide to a new low, currently trading lower by 3.0% at $44.96/bbl. It is worth noting that the turn in crude oil futures coincided with the reversal in the equity market.

Although most cyclical sectors underperform at this juncture, heavily-weighted financials (-0.2%) and technology (unch) have stayed ahead of the broader market, keeping the S&P 500 from sliding deeper into the red. Notably, the technology sector has been held up by large cap names with the likes of Apple (AAPL 113.81, +0.41), Google (GOOGL 655.98, +2.78), and Facebook (FB 93.57, +0.61) up between 0.3% and 0.7%.

Similar to technology, the health care sector (-0.1%) has been able to withstand some of today's pressure. That being said, the sector is down 2.2% for the week versus a 1.2% week-to-date decline in the S&P 500. Biotechnology was responsible for the relative weakness over the past two days, but today, the iShares Nasdaq Biotechnology ETF (IBB 334.74, -0.66) is lower by 0.1%.

Elsewhere, Treasuries have climbed off their morning lows, but they remain in negative territory with the 10-yr yield up two basis points at 2.15%.

Today's economic data was limited to the weekly MBA Mortgage Index, which surged 13.9% to follow last week's 7.0% decrease.

12:38 pm Anheuser-Busch InBev acquires Golden Road Brewing; terms not disclosed (BUD) :  

12:12 pm Nasdaq Comp -20 joins Dow -109 and S&P -9.7 at new session lows (:TECHX) :  

12:11 pm New Supply (BONDX) :

Treasury Auction Preview

• $35 bln 5-year note auction (results at 13:00 ET)
  
  • Prior auction results:
    
    • High yield: 1.46%
      
    • Bid-to-cover: 2.34
      
    • Indirect bid: 50.10%
      
    • Direct bid: 7.50%
      
  • Average results of prior 12 auctions:
    
    • High yield: 1.550%
      
    • Bid-to-cover: 2.49
      
    • Indirect bid: 57.9%
      
    • Direct bid: 7.69%

12:08 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (259) outpacing new highs (26) (SCANX) :

Stocks that traded to 52 week highs: ADEP, AKO.B, AMSG, BGS, CBNJ, CCRN, CNCE, CSFL, CVT, EDUC, FBC, FLO, FNFG, HFWA, HRTX, IMPV, MATR, MCZ, MSEX, NBN, NSEC, RYAAY, SLP, SMED, TAST, UHAL

Stocks that traded to 52 week lows: ABB, ABEV, ACAS, ACW, ADTN, AEG, AES, AGTC, AIR, AKS, ALIM, AM, AMCO, AMG, APAM, APPS, ARC, ARCB, ARG, ARO, ATI, ATU, ATW, AVH, AVL, AXAS, AXLL, BBD, BBOX, BBVA, BCC, BEBE, BEN, BETR, BITI, BKD, BKE, BOJA, BOOM, BSBR, BTE, BWA, BWEN, CAFD, CAI, CAS, CAT, CBD, CCJ, CETC, CFX, CG, CGNT, CHEF, CHSP, CIG, CIG.C, CIR, CKP, CNHI, CNX, CPGX, CPPL, CQH, CR, CRMT, CRS, CTG, CU, CVA, CVGI, CZZ, DAVE, DB, DCIX, DDC, DELTW, DGI, DHX, DNR, DRYS, DWA, EBR, ECR, EEQ, EIGI, EMES, EMR, EQGP, EQM, FAST, FCH, FDML, FLDM, FLR, FMSA, FOGO, FREE, FSTR, FWM, GASS, GIGA, GLOG, GLOP, GLPW, GLRE, GMLP, GNK, GRIF, GSIT, HBM, HCLP, HIFR, HK, HNSN, HOS, HP, HSC, HSGX, HST, HSTM, HT, HUN, HWCC, HZO, I, IDSY, ININ, IP, IPHS, IPI, JOY, KAMN, KEYW, KMT, KS, KSS, LITE, LNG, LNN, LWAY, LXFR, LXU, M, MANT, MCFT, MDM, MELI, MEOH, MITL, MJN, MNK, MNKD, MOD, MOG.A, MON, MOS, MPEL, MSL, MSM, MT, MTSC, MUR, MXPT, NAV, NEP, NEWP, NEWS, NHF, NPO, NSLP, NSM, NSPR, NTK, NWPX, NWSA, OLN, OMED, OZM, PBR, PBR.A, PCH, PDFS, PDS, PERF, PICO, PJC, PKE, PLCM, PLTM, POT, PSIX, PSTR, PTR, PVA, PWE, QIWI, RBC, RCAP, RCON, RRTS, SAMG, SAN, SBS, SCHN, SD, SEP, SGNT, SGOC, SJT, SNCR, SNHY, SPW, SRF, SRV, SWFT, SWN, SXC, SXE, TDW, TEF, TERP, TEX, TG, TGI, THRX, TIME, TKR, TLK, TLN, TRIB, TRMB, TROX, TSU, TWI, TWIN, TX, UGP, ULTR, UNIS, UPL, USAP, UTI, UTX, VECO, VIV, VJET, VNCE, VRNT, VSCP, WCC, WDC, WDR, WOR, WPP, WPRT, X, XPO, XRA

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: EWP, EWZ, JO, MOO, PPLT, XME

12:08 pm iShares Europe slides to new weekly / multi-year low (IEV) : The IEV has slipped slightly under its August trough (39.66) to set a new multi-year low this week (today's low 39.42). Other country ETFs that have fallen below their August lows include: Spain EWP, Switzerland EWL, France EWQ, Germany EWG, Sweden EWD.

11:51 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:

• UK's FTSE:+1.6%
• Germany's DAX:+0.4%
• France's CAC:+0.1%
• Spain's IBEX:-0.7%
• Portugal's PSI:+0.4%
• Italy's MIB Index:+0.2%
• Irish Ovrl Index:+0.5%
• Greece ASE General Index: -1.3%

11:37 am Columbia Pipeline and Columbia Pipeline Partners (CPPL) report their subsidiary, Columbia Gas Transmission's Mountaineer XPress Project has been accepted into pre-filing by the FERC (CPGX) : Columbia plans to formally file its application with the FERC for MXP and Gulf XPress in April 2016

11:35 am Stock indices roll back into the red -- Dow -75, S&P -4.9, Nasdaq Comp -4 (:TECHX) :  

11:32 am Caterpillar sets new low for the week at 70.39, its multi-year low from Aug is at 70.23 (CAT) :  

11:25 am Relative weakness in Materials XLB and Industrial XLI (:TECHX) : Both have slipped to new lows for the week with the XLB nearing its 52-wk close low from Aug at 40.73 (session low 40.78).

11:17 am Lagging Dow -54 did not confirm new morning highs in other major averages and has recently dipped to a new session low (:TECHX) : S&P -1 is back in the red with Nasdaq Comp +10 slipping off its high.

11:11 am Currency Commentary: DXY Attempting to Hold Gains (:SUMRX) :

• The Dollar Index is taking a pause from its recent run. The DXY is seeing some support at 96.10 in early intraday trade. On the economic data front the Markit reported that the preliminary look at U.S. Manufacturing PMI came in line with expectations and was flat from August. The news is helping provide some support to the greenback as it attempts to hold some recent gains. Market attention will turn to Fed hair Janet Yellen who will be speaking tomorrow. Markets would like some clarity to what is being viewed as a confusing message from the Fed last week.
• The euro is bouncing around as ECB President Mario Draghi testifies on monetary policy in front of EU Parliament. Mr. Draghi touched upon the issues hitting the markets including worries about lingering weak inflation and a slow down in emerging markets. But he reiterated that the ECB stood ready to increase its activity if necessary. The euro has seen a buy the news reaction to the comments which is not surprising given its 2% decline ahead of the testimony. The single currency was able to rally to 1.1190 before seeing resistance and rolling back to 1.1150.
• The pound has been under steady selling pressure as it slides to the 1.5220 level.  Sterling has seen increased selling pressure after breaking below its 200 sma. This will set up another test of the 1.5170 area for support in coming sessions.
• The yen remains quiet as Japanese markets remain closed for Holidays (they will reopen tomorrow). The yen weas able to run to 119.60 in overnight trade as Asian markets were down on a weaker than expected Chinese Manufacturing PMI number. But yen held the 119.60 area and has crossed back over into the 120 area (FOREX, BONDX).

11:02 am Volkswagen AG CEO resigns amid scandal fallout (VLKAY) : "I am shocked by the events of the past few days. Above all, I am stunned that misconduct on such a scale was possible in the Volkswagen Group. As CEO I accept responsibility for the irregularities that have been found in diesel engines and have therefore requested the Supervisory Board to agree on terminating my function as CEO of the Volkswagen Group. I am doing this in the interests of the company even though I am not aware of any wrong doing on my part."

10:50 am S&P +3.3 and Nasdaq Comp +15 drift near new morning highs while Dow -9 continues to lag (:TECHX) : Weighing on the Dow are UTX -1.2 and CAT -1% (pressuring XLI) along with BA -1%, VZ -0.7%, GS -0.5%, DIS -0.4%.

10:37 am Biotech reverses, now leading market higher (XBI +1.9%, IBB +0.7%) vs. QQQ +0.4% SPY +0.2% (IBB) :  

10:31 am Relative strength in recent trade (:TECHX) : The indices have pushed off early pullback lows with the Nasdaq Comp and S&P setting new session highs. Sectors that have outperformed the S&P on a relative basis on this move include: Biotech IBB, Pharma PPH, Health XLV, Medical Supplies, Bank KBE, Reg Bank KRE, Housing XHB, Software IGV, Restaurant.

10:28 am Homebuilders (ITB +0.8%) strong after bouncing off 200 day moving averages yesterday (ITB) : HOV +3.2%, LGIH +2.7%, RYL +2.6%, SPF +2.3%, MTH +1.6%, DHI +1.5%, TOL +1.5%, TMHC +1.4%, MDC +1.4%, LEN +1.3%, BZH +1%, ITB +0.8%, PHM +0.8%, MHO +0.6%, XHB +0.4%, WLH +0.2%, TPH -0.1%, UCP -3.7%

10:04 am AGL Resources' Elizabethtown Gas subsidiary seeking approval from the New Jersey Board of Public Utilities to invest more than $1.1 bln over a 10-year period to replace 630 miles of pipeline (GAS) :  

10:04 am Limited slip off early highs and now upticks -- S&P +0.2, Dow -17, Nasdaq Comp +3 (:TECHX) : The S&P and ES-Mini retraced roughly 50% of the recent bounce attempt and are attempting to rebound.

10:02 am Cyberonics and Sorin S.p.A. announce the High Court of England and Wales has issued an order, approving the completion of their cross-border merger (CYBX) :  

10:00 am PACCAR approves the repurchase of $300 million of its common stock (PCAR) : The co recently completed its previously authorized $300 million share repurchase program

9:48 am Relative sector weakness (:TECHX) : Underperforming sectors in early action include: Biotech IBB (CLVS, SGEN, NBIX, BLUE, OTIC, VRTX, ALXN, CHRS, MYGN, REGN), Casino (WYNN -4%, MPEL -3.7%, LVS -3.5%, MGM -2.7%), Airline JETS, Rail, Semi SMH, Ag/Chem MOO

9:46 am Digital Ally re-launches its Laser Ally laser detection and ranging speed detection product line (DGLY) : Following three years of litigation, Digital Ally and DragonEye Technology, LLC have agreed to resolve their differences out of court. DragonEye is the manufacturer of the Laser Ally LIDAR, which trademark brand is exclusively distributed by Digital Ally, Inc. Sales of Laser Ally will resume in the fourth quarter of this year.

9:46 am Relative sector strength (:TECHX) : Choppy action not far from the flat line for major averages thus far.  Sectors displaying some relative strength include: Gold Miners GDX, Crude Oil USO, Auto CARZ (VLKAY +1.4%), Copper JJC, Housing XHB (LGIH +1.9%, RYL +1.9%, SPF +1.8%, DHI +1.2%), Reg Bank KRE, Gold GLD, Bank KBE. 

9:43 am Biotech a laggard once again early in the session (XBI -1.2%, IBB -1%); QQQ, SPY flat (IBB) :  

9:42 am Opening Market Summary: Health Care Sector Displays Early Weakness (:WRAPX) :

As expected, the major averages started the trading day near their flat lines. The S&P 500 hovers just below its unchanged level with six sectors showing opening losses. That being said, the weakest performer-health care-is down just 0.3% so far today.

Similar to health care, financials (-0.1%) and industrials (-0.1%) hover in the red while energy (+0.3%), utilities (+0.1%), and technology (+0.1%) sit above their flat lines.

Also of note, Treasuries have retreated to new lows, pushing the 10-yr yield up to 2.16% (+2 bps).

9:35 am Choppy trade at steady to slightly higher levels for major averages -- Dow +9, S&P +1.3, Nasdaq Comp +6 (:TECHX) :  

9:32 am Pulmatrix will report data from a Phase 1B study evaluating PUR0200, on September 29th at the 2015 European Respiratory Society Congress (PULM) :  

9:29 am On the Wires (:WIRES) :

• Midcoast Energy Partners (MEP), an Enbridge (ENB) company, announced that R. Poe Reed will join the company's general partner as vice president and chief commercial officer, effective Sept. 28, 2015
• John Iannotti has joined OneBeacon Insurance Group (OB) as President of Professional Liability
• Hill International (HIL) announced that its project, the Foothill Gold Line from Pasadena to Azusa in Southern California, has reached substantial completion. The 11.5-mile light rail project will now be turned over by the Foothill Gold Line Construction Authority to the Los Angeles Metro for pre-revenue service.
• Kelso Technologies Inc. (KIQ) reported that it has established an in-house inspection and re-certification service for its pressure relief valves
• Amgen (AMGN) announced the upcoming presentation of new data from studies evaluating Kyprolis (carfilzomib) for Injection, at the 15th International Myeloma Workshop

9:26 am Digital Realty Trust announces a private placement offering of two series of senior notes; size and terms not disclosed (DLR) : Net proceeds from the offering are expected to be used to fund a portion of the aggregate purchase price for the previously announced pending acquisition of Telx Holdings, Inc. To the extent that there are excess net proceeds, such excess may be applied to repay other indebtedness.

9:16 am S&P futures vs fair value: -1.40. Nasdaq futures vs fair value: +6.50. (:WRAPX) :

The stock market is on track for a flat open as S&P 500 futures trade within two points of fair value.

Futures on the benchmark index are little changed after stringing together a 25-point rebound off its overnight low, which was reached after the release of a disappointing preliminary Caixin Manufacturing PMI for September. The index fell to 47.0 from 47.3 (expected 47.5), representing a 6 year low.

Despite the weak data from China, European markets have been able to rally while U.S. futures have tagged along. Notably, Germany's DAX is higher by 0.9% at this juncture with Volkswagen up 8.3% after diving nearly 35.0% over the past two days.

U.S. Treasuries have climbed off their lows, but they remain in the red with the 10-yr yield up almost a basis point at 2.14%.

Things have been relatively quiet on the corporate front with M&A specuation headlining this morning's developments. BioMed Realty (BMR 21.26, +2.08) is on track to open higher by 10.8% after Bloomberg reported the company is considering a sale to Blackstone (BX 33.90, 0.00). Elsewhere, Citrix Systems (CTXS 74.25, +2.10) has climbed 2.9% in pre-market after Reuters reported the company is making a final effort to sell itself.

9:03 am Amgen And Allergan (AGN) announce positive top-line results from their Phase 3 study of ABP 215; primary efficacy analysis demonstrates clinical equivalence; safety, immunogenicity comparable to Bevacizumab (AMGN) :

• The primary endpoint, an assessment of objective response rates was within the prespecified margin for ABP 215 compared to bevacizumab, showing clinical equivalence. Safety and immunogenicity of ABP 215 were comparable to bevacizumab. Secondary endpoint results were consistent with the primary finding and included risk difference of ORR, duration of response and progression-free survival.
• This was a randomized, double-blind, active-controlled study that evaluated safety and efficacy of ABP 215 compared to bevacizumab in adult patients with advanced non-squamous NSCLC receiving first-line chemotherapy with carboplatin and paclitaxel.
  

9:02 am Marathon Patent Group's Orthophoenix subsidiary enters into a settlement and license agreement with Osseon; terms not disclosed (MARA) :  

9:02 am Erie Indemnity announces that CFO Marcia Dall will depart on October 9 2015 to accept the position of EVP/CFO of Churchill Downs (CHDN) (ERIE) :

• Greg Gutting, ERIE's current senior vice president, controller, will serve as interim CFO.
• Churchill Downs confirmed Dall will assume her new role on October 12, 2015. Dall succeeds Bill Mudd as CFO. Mudd will remain President and will add the title of COO.

9:01 am Danaos acquires three vessels through a newly-formed joint venture, Gemini Shipholdings Corporation (DAC) :

Co announced the acquisition of three vessels through a newly-formed joint venture, capitalizing on depressed asset prices in the resale market. The vessels were acquired by Gemini Shipholdings Corporation, beneficially owned by Danaos and its largest stockholder. Danaos' initial 49% ownership interest in Gemini was acquired through an investment of $7.35 million. The vessels acquired are:

• The 6,422 TEU NYK Lodestar, which has already commenced a 2 year time charter with NYK
• The 5,610 TEU Suez Canal, which is on a 7 year bareboat charter to Gemini with a purchase obligation at the end of the charter
• The 5,544 TEU Genoa, which is on a 7 year bareboat charter to Gemini with a purchase obligation at the end of the charter

9:01 am CTI BioPharma (halted) to submit NDA for Pacritinib in Q4 based primarily on data from single pivotal Persist-1 Trial following pre-NDA meeting with the FDA (CTIC) :

• Co announced its plan to submit a new drug application (:NDA) to the U.S. Food and Drug Administration (:FDA) following a productive pre-NDA meeting for pacritinib, an investigational oral kinase inhibitor with specificity for JAK2, FLT3, IRAK1 and CSF1R.
• The company expects to submit the NDA in the fourth quarter of 2015 and to request accelerated approval for the treatment of patients with intermediate and high-risk myelofibrosis with low platelet counts of less than 50,000 per microliter (
• "We look forward to working with the FDA on the submission and review of this application."

9:00 am Pandora Media announces that it has generated more than $1.5 bln in all-time royalties for music makers (P) : Co achieved this milestone due to joint revenue streams flowing from ad-supported and paying subscribers.

9:00 am Aviat Networks to provide microwave solutions to a Tier 1 mobile operator in the United States (AVNW) : A new Aviat customer, the operator will deploy CTR 8540 and CTR 8312 microwave solutions in support of its nationwide LTE rural rollout.

8:59 am On the Wires (:WIRES) :

• UQM Technologies, (UQM) announced that Zenith Motors has received a 45 unit all-electric truck order from DHL Express USA; the Zenith delivery vehicles are powered by the UQM PowerPhase Pro 135 propulsion systems
• Clovis Oncology (CLVS) announced that three oral presentations and four scientific posters highlighting updated results from clinical studies of the company's two compounds in advanced clinical development are being presented at the 2015 European Cancer Congress
• Finjan Holdings, Inc. (FNJN) announced that the USPTO has granted it a U.S. Patent covering malicious mobile code runtime monitoring system and methods. The paten provides protection systems and methods capable of protecting a personal computer or other network accessible devices from malicious operations.
• Capstone Turbine Corporation (CPST) announced that it received an order for a C1000 microturbine to upgrade a processing plant for an Italian silica manufacturer. The order is scheduled to be commissioned in December 2015.
• Provectus Biopharmaceuticals (PVCT) announced it has completed development of the protocol for Phase1b/2 testing of its investigational cancer drug PV-10 in combination with pembrolizumab in patients with Stage IV melanoma. The Phase 1b/2 study will incorporate a modest sized single arm Phase 1b component of 24 subjects with expedited safety and efficacy end points.

8:57 am S&P futures vs fair value: +3.40. Nasdaq futures vs fair value: +19.30. (:WRAPX) :

The S&P 500 futures trade three points above fair value.

Most markets in the Asia-Pacific region fell prone to stepped-up selling pressure following Wall Street's weak showing on Tuesday and a disappointing flash PMI reading out of China on Wednesday. Specifically, the Caixin Manufacturing PMI reading fell to 47.0 from 47.3, marking a 6 year low. The downbeat survey on manufacturing activity contributed to existing growth concerns for China and the global economy.

• In economic data:
  • China's preliminary September Caixin Manufacturing PMI 47.0 (expected 47.5; prior 47.3)
  • Singapore's August CPI -0.8% year-over-year (expected -0.5%; prior -0.4%)

------

• Japan's Nikkei: closed for holiday (Autumn Equinox)
• Hong Kong's Hang Seng declined 2.3%, but had been down as 3.6% in the wake of a disappointing manufacturing survey out of China and reports that Citic Securities has been accused by the Chinese government of front-running state-sponsored stock purchases. Galaxy Entertainment (-5.5%), Kunlun Energy (-5.4%), and China Overseas Land & Investment (-4.7%) led the losses. Out of the 50 index members, only two -- China Resources Enterprise (+0.4%) and Hengan International Group (+0.4%) -- ended higher.
• China's Shanghai Composite declined 2.2% after the Caixin flash PMI reading for September checked in at a 6 year low of 47.0, which was also below economists' average expectation. Once again, there was heightened trading activity in the final hour that was accented with a selling bias.

Major European indices trade higher across the board with UK's FTSE (+2.2%) in the lead.

• Investors received several data points:
  • Eurozone preliminary September Manufacturing PMI 52.0, as expected (52.3 prior) and Services PMI 54.0 (expected 54.2; prior 54.4)
  • Germany's preliminary September Manufacturing PMI 52.5 (expected 52.8; last 53.3) and preliminary Services PMI 54.3 (consensus 54.6; prior 54.9)
  • France's preliminary September Manufacturing PMI 50.4 (consensus 48.5; prior 48.3) and Services PMI 51.2 (expected 51.0; last 50.6). Separately, Q2 GDP was flat quarter-over-quarter, as expected (prior 0.0%)

------

• France's CAC is higher by 1.1% with more than 30 of its components trading with gains. Growth-sensitive Solvay and Total lead with respective gains of 3.1% and 2.5% while automakers remain weak. Renault and Peugeot trade lower by 3.0% and 1.5%, respectively.
• Germany's DAX has climbed 1.3% amid gains in 26 of its 30 components. Lufthansa and Volkswagen lead with gains close to 5.0% apiece while utility stocks also outperform. E.On and RWE hold respective gains of 2.9% and 2.0%
• UK's FTSE has jumped 2.2% with miners leading the rally after struggling yesterday. Anglo American, Glencore, and Rio Tinto have gained between 2.7% and 4.1%. Airlines have also shown strength with easyJet and International Consolidated Airlines up 3.3% and 5.2%, respectively.

8:50 am Rayonier Adv. Materials amends its existing agreement with its second largest customer, Nantong Cellulose Fibers Company, and extended the term of the agreement through calendar year 2019 (RYAM) : Pricing for the upcoming years will be set annually, consistent with past practice and the terms of the amended agreement, and it is anticipated that annual volumes will be comparable to recent historical levels.

8:39 am European Markets Update: CAC +1.0%, DAX +1.0%, FTSE +1.9% (:SUMRX) :

Major European indices trade higher across the board with UK's FTSE (+1.9%) in the lead.

• Investors received several data points:
  • Eurozone preliminary September Manufacturing PMI 52.0, as expected (52.3 prior) and Services PMI 54.0 (expected 54.2; prior 54.4)
  • Germany's preliminary September Manufacturing PMI 52.5 (expected 52.8; last 53.3) and preliminary Services PMI 54.3 (consensus 54.6; prior 54.9)
  • France's preliminary September Manufacturing PMI 50.4 (consensus 48.5; prior 48.3) and Services PMI 51.2 (expected 51.0; last 50.6). Separately, Q2 GDP was flat quarter-over-quarter, as expected (prior 0.0%)

------

• France's CAC is higher by 1.0% with more than 30 of its components trading with gains. Growth-sensitive Solvay and Total lead with respective gains of 3.1% and 2.5% while automakers remain weak. Renault and Peugeot trade lower by 3.0% and 1.5%, respectively.
• Germany's DAX has climbed 1.0% amid gains in 26 of its 30 components. Lufthansa and Volkswagen lead with gains close to 5.0% apiece while utility stocks also outperform. E.On and RWE hold respective gains of 2.9% and 2.0%
• UK's FTSE has jumped 1.9% with miners leading the rally after struggling yesterday. Anglo American, Glencore, and Rio Tinto have gained between 2.7% and 4.1%. Airlines have also shown strength with easyJet and International Consolidated Airlines up 3.3% and 5.2%, respectively.

8:33 am Gevo announces operational and financial targets for 2016 following its settlement with Butamax; includes isobutanol production target at Luverne between 750K-1 mln gallons in 2016 (GEVO) :

Operational and financial targets for 2016 include:

• Increased isobutanol production at Luverne to a range of 750,000 to 1 million gallons in 2016, up 7-10x from expected 2015 production levels
• Decreasing the variable cost of producing isobutanol at Luverne to a range of $3.00-$3.50/gallon, a decrease of approximately 50% from the current cost of production, enabling isobutanol to be produced at a positive contribution margin, based on an expected average selling price for isobutanol of between $3.50-$4.50/gallon
• Increasing sales of isobutanol into core markets such as the alcohol-to-jet (:ATJ), marina, off-road, isooctane and solvents markets
• Achieving an average quarterly corporate-wide EBITDA burn rate (excluding stock-based compensation) of $3.5-$4.5 million per quarter, versus a comparable quarterly burn rate of $6.0 million realized over the first half of 2015

 Underpinning the above improvements will be ~$5.0 million of capital expenditures that Gevo intends to deploy at Luverne over the next 3-6 months.

8:33 am Orexigen Therapeutics receives $22 mln in payments from U.S. and Korean Partners (OREX) :

Co announce receipt of the first of three potential $15 million anniversary milestone payments from Takeda Pharma, Orexigen's United States partner for Contrave.

• Two additional potential $15 million anniversary milestone payments are expected from Takeda in the fourth quarter of each of 2016 and 2017.
• Orexigen also announced receipt of the $7 million upfront payment from Kwang Dong Pharmaceutical Company Ltd., based in Seoul, Korea.
• Kwang Dong expects to begin marketing Contrave in the second half of 2016, if regulatory approval is obtained.

8:32 am S&P futures vs fair value: +3.60. Nasdaq futures vs fair value: +19.50. (:WRAPX) :

Not much change in the pre-market standing as S&P 500 futures continue hovering just above the unchanged level. Futures had been up about 10 points in earlier action, but they have pulled back from their highs. To be fair, the slip from highs followed a 25-point rally off overnight lows.

Similar to equity futures, the Dollar Index (96.30, +0.01) is flat after erasing its overnight loss.

Meanwhile, Treasuries hold modest losses with the 10-yr yield up one basis point at 2.14%.

8:32 am Public Service names Daniel J. Cregg as CFO effective October 8 (PEG) : Co announces that Daniel J. Cregg, currently VP of finance for PSE&G, was elected by the Board of Directors to be Executive VP and CFO, effective October 8. He succeeds current CFO, Caroline Dorsa whose previously announced retirement will be effective at that time.

8:31 am WABCO Holdings announces proposals to cease manufacturing operations at two production facilities in Western Europe (WBC) :

Co announced proposals to cease manufacturing operations at two production facilities in Western Europe to preserve the company's global competitiveness for certain mechanical products. These proposals would result in a total reduction of workforce of approximately 320 positions. Both of these factories make conventional mechanical components. Pending the outcome of the formal processes, production could cease at the Meppel facility by the second half of 2016, and at the Claye-Souilly plant in the second half of 2017, with production being transferred to other facilities within WABCO's globally integrated supply chain.

• The Company expects to incur approximately $55 to $70 million in costs associated with these actions, including approximately $45 to $60 million of net cash costs. With these proposals, the Company anticipates annualized savings of approximately $20 million after the production activity transfers to other WABCO facilities.

8:31 am Amyris announces a multi-year technology investment agreement with DARPA worth up to $35 mln (AMRS) :

• Co announces a multi-year, Technology Investment Agreement worth up to $35 mln with the Defense Advanced Research Projects Agency's Biological Technologies Office to create new research and development tools and technologies that will significantly reduce the time and cost of bringing new molecules to market.
• Amyris has chosen five specialized subcontractors to assist in achieving these innovations.

8:26 am On the Wires (:WIRES) :

• 8x8, Inc. (EGHT) announced that the company has secured the United Kingdom's Cyber Essentials Plus accreditation and is now accepted onto their Network Services framework agreement for Unified Communications.
• GAIN Capital Holdings (GCAP) announced that it is updating the rules of engagement for liquidity providers on GTX, its institutional electronic communication network. The new rules focus on market makers who provide Reviewable Liquidity, defined as orders and quotes submitted to the GTX venue which must be accepted or declined prior to execution.
• Emerson (EMR) announced that its Wi-Fi thermostat is now compatible with Wink home automation systems.
  

8:26 am On the Wires (:WIRES) :

• N-Viro International Corporation (NVIC) announced its sister company, N-Viro Energy Ltd has executed a Letter of Intent with Zhejiang Jiangxing Joint Sewage Treatment Co. The agreement outlines a strategy for the parties to jointly develop N-Viro Fuel, a waste-to-energy process, on proposed leased property within the sewage treatment plant.
• Alaska Airlines (ALK) and Icelandair have entered into a codeshare agreement and frequent flier partnership. With the new codeshare agreement, to take effect Nov. 1, customers flying on Alaska Airlines and Icelandair will enjoy integrated reservations and ticketing, one-stop check-in, baggage checked to its final destination, coordinated flight schedules, the ability to earn miles and/or points on the reciprocal airline and consistent passenger service standards. Elite-level members of each airline's frequent flier program also will receive reciprocal club lounge benefits.
• The J. M. Smucker Company (SJM) announced that it has extended its exchange offer for its 1.75% Notes due 2018, 2.5% Notes due 2020, its 3% Notes due 2022, its 3.5% Notes due 2025, its 4.250% Notes due 2035, and its 4.375% Notes due 2045.
• Digital Turbine, Inc. (APPS) and Millicom (MIICF) announced a multi-year agreement to deploy Digital Turbine's Ignite solution on new Android devices. The agreement is expected to kick off in the fourth quarter of calendar 2015 with the rollout of Ignite.

8:24 am 2U announces a 3.1 mln share public offering of common stock by the company, and a 400K common share offering by selling stockholders (TWOU) : Proceeds of the offering will be used by the company for general corporate purposes, including expenditures for program marketing, sales, technology, and content development, in connection with new program launches and growing existing programs

8:23 am European Yields (BONDX) :

Sovereign Yields Mixed after Markit PMI

• In the eurozone, the initial reading of Markit's Composite PMI showed a greater-than-expected fall to 53.9 in September from 54.3 in October
  
  • The Services PMI fell to 54.0 in September from 54.4 in August and the Manufacturing PMI decline to 52.0 from 52.3
    
  • The data reinforced the idea that French growth is grinding to a halt despite unprecedented monetary stimulus
    
    • The data were consistent with French GDP growth of 0.1% for Q3 and German GDP growth of 0.4% over the same period
      
  • The internals of the survey were more positive than the headline number, with faster growth of new work and backlogs of orders
    
  • Markit called is calling Q3 the "best quarter in four years," due to those stronger components
    
    • The strong performance may cause the ECB to hesitate in expanding its asset purchase program
      
  • Portugal raised its 2014 budget deficit to 7.2% of GDP after the government could not find a suitable buyer for its stake in Novo Banco, the country's third largest bank. The EUR 4.9 bln recapitalization of the lender will now be added to the 2014 deficit
  • The Catalonia region of Spain will hold an election on Sunday, September 27th. Pro-independence parties have hinted that they would declare independence if they win a majority of seats, even if they do not win a majority of votes
    
    • Many analysts believe that this is unlikely because it would lack legitimacy without the approval of a majority of Catalonia's voters
      
    • According to some officials, independence from Spain would result in departure from the eurozone and therefore a freeze on bank deposits
      
    • Furthermore, the Spanish general election is set for late-December and the anti-austerity party, Podemos, is expected to do well
      
  • The German Finanzagentur auctioned off EUR 5 bln of 2-year Schatz at a high yield of -0.26%
    
• Yield Check:
  
  • France, 10-yr OAT: -1 bp to 0.90%
    
  • Germany, 10-yr Bund: +1 bp to 0.60%
    
  • Greece, 10-yr note: +2 bps to 8.09%
    
  • Italy, 10-yr BTP: -2 bps to 1.73%
    
  • Portugal, 10-yr note: +2 bps to 2.62%
    
  • Spain, 10-yr ODE: +1 bp to 1.97%
    
  • U.K., 10-yr Gilt: +1 bp to 1.68%

8:22 am Gapping down (SCANX) : Gapping down
In reaction to disappointing earnings/guidance: TSM -1.8%, (guidance)

Other news: AXPW -13.8% (co's CFO Charles Trego to resign effective October 2), NBG -6.2% (still checking), SNP -5.1% (Shanghai down over 2% overnight), CEO -3% (Shanghai down over 2% overnight), SYT -2.1% (still checking), CEA -1.5% (Shanghai down over 2% overnight), VVUS -1.2% (Board of Directors Expresses No Opinion and Remains Neutral Toward Icahn Group's Unsolicited Offer to Purchase 4.50% Convertible Senior Notes), OA -1.1% (priced $400 mln of 5.50% senior notes due 2023 at 100% of face value), RIG -1% (issued its monthly fleet update summary, reporting that its GSF Rig 140 and GSF Galaxy II are idle), SPEX -1% (filed for $10 mln offering of common stock and warrants), SQM -1% (provided business update: Co will stop stop operating its Pedro de Valdivia facility), TOT -0.6% (provides update on strategy and outlook), DEO -0.4% (provides qualitative guidance update ahead of its AGM)

Analyst comments: KMX -1.2% (downgraded to Perform from Outperform at Oppenheimer)

8:20 am Gapping up (SCANX) : Gapping up
In reaction to strong earnings/guidance: CPRT +0.5%

M&A news: BMR +9% (considering sale to private equity firm Blackstone (BX), according to Bloomberg),FNFG +6.7% (hired bankers to explore sale of the company, according to Bloomberg),CTXS +3.9% (trying to make final effort to sell the company, according to Reuters)

Select metals/mining stocks trading higher: AUY +1.9%, GDX +1.7%, AEM +1.7%, FCX +1.5%, RIO +1.4%, RIO +1.4%, ABX +1.1%, GOLD +1.1%

Other news: SGNL +46.6% (signs a Master Service Agreement with a leading biopharmaceutical company, to deploy its MyPRS test),HRTX +25.5% (reports Positive Top-Line Results from Phase 2 Study of HTX-011 in the Management of Post-Operative Pain -- Pain intensity through 72 hours reduced by 40%),SOL +9% (authorizes a $20 mln ADS repurchase program),NOK +2.1% (rebounding with EU bourses),CDTI +2% (name likely catching interest following Volkswagen news),ALU +2% (rebounding with EU bourses),ITCI +1.5% (prices 6,900,000 shares of common stock at $43.50 per share),P +1.5% (cont strength),WPX +1.3% (Integrated Core Strategies (Millennium International Management) discloses 4.6% passive stake in 13G filing),GSK +0.9% (GlaxoSmithKline, Pfizer (PFE) unit ViiV reports new Phase IIIb/IV data met primary endpoint)

Analyst comments: CCL +1.6% (upgraded to Buy from Neutral at Nomura),BIDU +1.4% (upgraded to Buy from Underperform at Credit Agricole),INTC +1.2% (upgraded to Mkt Perform from Underperform at Bernstein)

8:13 am PPG Industries restores normal operations at its Fresno, California, announces plans for $20 mln in upgrades (PPG) : The co announced that it has restored normal operations at its Fresno, California, glass manufacturing facility and lifted the force majeure on architectural, residential and specialty glass products for customers located in the western U.S. and western Canada. The company also announced plans to invest $20 million in upgrades for the Fresno facility, which will begin in January 2016. PPG plans to rebuild the glass tank and enhance other manufacturing equipment at the plant.

8:09 am SunEdison signs a power purchase agreement with Equinix (EQIX) for 105 megawatts of new solar power (SUNE) : This purchase will cover all of Equinix's California data centers, including 11 facilities located in the Los Angeles and Silicon Valley metro areas, as well as its Redwood City, California global headquarters. With this deployment, Equinix's data center footprint will increase its use of clean, renewable sources from 30% to 43% globally.

8:07 am Astrotech reports FY15 results (ASTC) :

• FY15 GAAP EPS $0.52, or ($0.52) ex-discontinued operations, vs. $0.26 last year with rev +295% to $513K (no estimates).
• "The successful sale of Astrotech Space Operations ("ASO") has provided us with the investment in working capital necessary to finalize the readiness of our products for sale to their target markets," said Thomas B. Pickens III, Chairman and CEO of Astrotech Corporation. "The successful completion of Phase I and the recent award for Phase II of the NGCD contract further validates our technological breakthrough in 1st Detect's mini-mass spectrometry platform for government and commercial markets, as the majority of our industry peers failed to achieve these milestones. With what we believe are superior products that target lucrative market opportunities, we are excited about the prospects for 1st Detect."

8:04 am DepoMed announces two favorable decisions in inter partes review proceedings versus Endo Pharmaceuticals (ENDP) (DEPO) :

• Co announced favorable decisions by the Patent Trial and Appeal Board (PTABF) of the US PTO that confirmed the patentability of all 23 claims of two Depomed patents (U.S. Patent Nos. 6,340,475 and 6,635,280) subject to inter partes review proceedings (IPRs) initiated by Endo Pharmaceuticals (Endo). This decision clears the way for Depomed to continue its patent infringement lawsuit against Endo related to OPANA ER.
• Depomed's patent infringement lawsuits in New Jersey Federal District Court alleging infringement of U.S. Patent Nos. 6,340,475 and 6,635,280 by Endo's OPANA ER product and Purdue's Oxycontin product have been stayed pending the outcome of the IPRs initiated by Endo and Purdue. Based on the PTAB's final decisions against the IPR challenges initiated by Endo and Purdue, Depomed will request that the District Court lift the stay. Endo and Purdue will not be able to assert invalidity arguments based on prior art they raised or could have raised in the IPRs.

8:03 am TeleComm Sys is awarded a five-year contract extension valued at ~$68 million, from the Department of Defense (TSYS) : Co was awarded a competitive five-year contract extension (a base plus five option periods) valued at ~$68 million to provide the Department of Defense's personnel with critical curriculum development and training delivery services to support the government's cybersecurity workforce development.

8:02 am S&W Seed signs and closes a $20 mln asset-based credit facility with KeyBank (SANW) : The new credit facility is being utilized to refinance the Company's existing Export-Import Bank-backed senior debt and provides additional borrowing capacity and financial flexibility to support S&W's growth objectives, including increasing seed production to expand revenue. The new facility has a variable interest rate based on a margin above short-term market rates (~2.2% per annum at current market rates)- represents a 75 basis point reduction in interest rate margin compared to the previous facility.

8:02 am S&P futures vs fair value: +0.90. Nasdaq futures vs fair value: +14.30. (:WRAPX) :

U.S. equity futures trade little changed after seeing a wide trading range overnight. The S&P 500 futures hover within a point of fair value after a 25-point rally off lows.

Meanwhile, Treasuries have retreated, sending the 10-yr yield higher by a basis point to 2.15%.

Today's economic data was limited to the weekly MBA Mortgage Index, which surged 13.9% to follow last week's 7.0% decrease.

In U.S. corporate news of note:

• Citrix Systems (CTXS 74.25, +2.10): +2.9% after Reuters reported the company is making a final effort to sell itself.
• Intel (INTC 29.05, +0.38): +1.3% after being upgraded to 'Market Perform' from 'Underperform' at Bernstein.

Reviewing overnight developments:

• Asian markets ended mostly lower. China's Shanghai Composite -2.2%, Hong Kong's Hang Seng -2.3%, and Japan's Nikkei was closed for Autumn Equinox.
  • In economic data:
    • China's preliminary September Caixin Manufacturing PMI 47.0 (expected 47.5; prior 47.3)
    • Singapore's August CPI -0.8% year-over-year (expected -0.5%; prior -0.4%)
  • In news:
    • In addition to pressuring markets in China and Hong Kong, the disappointing Manufacturing PMI reading weighed on the Australian dollar, sending the currency lower by about 50 pips against the U.S. dollar. That said, the AUD/USD pair has trimmed its loss in half since the report's release.

• Major European indices trade higher across the board. UK's FTSE +1.7%, France's CAC +0.6%, and Germany's DAX +0.7%. Elsewhere, Italy's MIB +1.2% and Spain's IBEX +0.2%
  • Investors received several data points:
    • Eurozone preliminary September Manufacturing PMI 52.0, as expected (52.3 prior) and Services PMI 54.0 (expected 54.2; prior 54.4)
    • Germany's preliminary September Manufacturing PMI 52.5 (expected 52.8; last 53.3) and preliminary Services PMI 54.3 (consensus 54.6; prior 54.9)
    • France's preliminary September Manufacturing PMI 50.4 (consensus 48.5; prior 48.3) and Services PMI 51.2 (expected 51.0; last 50.6). Separately, Q2 GDP was flat quarter-over-quarter, as expected (prior 0.0%)
  • Among news of note:
    • European markets have rebounded from yesterday's plunge with Volkswagen climbing 3.4% after diving nearly 35.0% over the past two days

8:01 am IPC Healthcare acquires a Tampa-based psychiatry group; financial terms not disclosed (IPCM) :

• Co announces it has acquired the psychiatry practice of Ashit Vijapura,The Tampa, Florida-based practice focuses on providing psychiatry services in both acute and post-acute settings. This acquisition is expected to add more than 24,500 encounters on a combined annualized basis.
  

8:01 am ZELTIQ Aesthetics receives FDA clearance to treat submental fat with Coolsculpting procedure (ZLTQ) : Co announces that it received an expanded clearance from the FDA paving the way for introduction of the new, CoolMini applicator, which is designed to treat smaller pockets of fat, including the submental, or chin fat area, more commonly referred to as the double chin. The new CoolMini applicator is uniquely designed for small volume areas of fat.

8:01 am Orthofix announces publication of data confirming the clinical benefits of Trinity Evolution cellular bone allograft in foot and ankle procedures; demonstrated per joint fusion rates of 86.8% at 12 months follow-up (OFIX) :

• Co announces results from the largest study conducted to date evaluating the safety and effectiveness of their cellular bone allograft. Trinity Evolution, in foot and ankle arthrodesis procedures.
• Published online in Foot & Ankle International, patients treated with Trinity Evolution demonstrated per joint fusion rates of 86.8% at 12 months follow-up. Additionally, successful fusion significantly correlated with improvements in pain, function, and Quality Of Life, even in patients with comorbidities such as obesity, diabetes and smoking.
• The primary endpoint was successful fusion based on high resolution CT scans and radiographs assessed by an independent lab. Based on radiographic effectiveness, the study demonstrated a per joint fusion rate of 81.1 percent (124/153) at six months, which increased to 86.8 percent (112/139) at 12 months.

8:00 am General Electric's Healthcare unit announces $300 million commitment to support Emerging Market health (GE) : Co announced the creation of a new business unit, Sustainable Healthcare Solutions (:SHS), that will develop technologies and healthcare delivery solutions across multiple care settings. The new organization will invest $300 million as part of a multi-phase effort to develop a more robust affordable healthcare portfolio for customers. The unit will combine GE Healthcare's operations in India, South Asia, Africa and Southeast Asia.

7:52 am On the Wires (:WIRES) :

• CGI (GIB) and ebase announced they have extended and expanded their partnership, where over the next year, CGI will implement new technologies to improve existing virtual desktop infrastructure, telephony, and network systems. The five-year project, currently ebase's largest IT undertaking, is valued at 15 million euros.
• Cameco (CCJ) and AREVA announced the start of production at the Cigar Lake uranium mine and McClean Lake mill, at their minesite in northern Saskatchewan, Canada.

7:45 am ReneSola's Board authorizes a $20 mln ADS repurchase program (SOL) :  

7:38 am Harvest Capital Credit amends its senior secured revolving credit facility, by extending its revolving period to April, 2017 and reducing its rate to Libor plus 3.25% (HCAP) :  

7:38 am Asian Markets Close: Japan's Nikkei closed for holiday; Hong Kong's Hang Seng -2.3%; China's Shanghai Composite -2.2% (:SUMRX) :

Most markets in the Asia-Pacific region fell prone to stepped-up selling pressure following Wall Street's weak showing on Tuesday and a disappointing flash PMI reading out of China on Wednesday. Specifically, the Caixin Manufacturing PMI reading fell to 47.0 from 47.3, marking a 6 year low. The downbeat survey on manufacturing activity contributed to existing growth concerns for China and the global economy.

Economic Data

• China
  • September Caixin Manufacturing PMI 47.0 (expected 47.5; prior 47.3)
• Australia
  • CB Leading Index +0.3% month-over-month (prior -0.3%)
• Singapore
  • August CPI -0.8% year-over-year (expected -0.5%; prior -0.4%)

Equity Markets

• Japan's Nikkei: closed for holiday (Autumn Equinox)
• Hong Kong's Hang Seng declined 2.3%, but had been down as 3.6% in the wake of a disappointing manufacturing survey out of China and reports that Citic Securities has been accused by the Chinese government of front-running state-sponsored stock purchases. Galaxy Entertainment (-5.5%), Kunlun Energy (-5.4%), and China Overseas Land & Investment (-4.7%) led the losses. Out of the 50 index members, only two -- China Resources Enterprise (+0.4%) and Hengan International Group (+0.4%) -- ended higher.
• China's Shanghai Composite declined 2.2% after the Caixin flash PMI reading for September checked in at a 6 year low of 47.0, which was also below economists' average expectation. Once again, there was heightened trading activity in the final hour that was accented with a selling bias.
• India's Sensex increased 0.7%, recouping a portion of Tuesday's 2.1% slide. Gains were led by the materials (+0.9%), financials (+0.7%), and health care (+0.7%) sectors. Vedanta (+2.9%), Lupin (+2.7%), and HDFC Bank (+1.8%) were the top-performing stocks. Tata Motors (-1.7%), Bharti Airtel (-1.7%), and Bharat Heavy Electricals (-1.3%) were downside leaders. Out of the 30 index members, 19 ended higher and 11 finished lower.
• Australia's S&P/ASX 200 declined 2.1% and ended near its lows for the day as growth concerns pressured the market. Loss leaders included the metals & mining (-3.8%), resources (-3.4%), and materials (-3.0%) sectors. Out of the 200 index members, 27 ended higher, 162 finished lower, and 11 were unchanged.
• Regional advancers: None
• Regional decliners: South Korea -1.9%, Taiwan -2.1%, Malaysia -1.4%, Indonesia -2.3%, Singapore -0.8%, Thailand -0.6%, Vietnam -0.1%, Philippines -1.8%

FX

• USD/CNY +0.1% at 6.3839
• USD/INR +0.2% at 66.0137
• USD/JPY +0.1% at 120.25

7:30 am Engility is awarded a $31 mln contract extension by the U.S. Army, to help enhance the effectiveness of psychological health and traumatic brain injury programs for service members and vets (EGL) :  

7:30 am Overnight Treasury Summary (BONDX) :

Government Yields Edge Lower

• The U.S. Treasury complex is lower this morning, giving back an overnight advance that was set off by China's Caixan manufacturing PMI hitting a six-year low. Having since recovered, S&P 500 futures are indicating a 0.45% higher open to 1,951.6 and WTI crude is up 0.93% to $46.79/bbl. The U.S. Dollar Index is down 0.07% to 96.21. Today's session is another one light on data and the $35 bln 5-year note auction is the main event. On Thursday, Janet Yellen will give public remarks for the first time since her FOMC press conference
  
• Yield Check:
  
  • 2-yr: unch at 0.70%
    
  • 5-yr: +2 bps to 1.45%
    
  • 10-yr: +2 bps to 2.15%
    
  • 30-yr: +1 bp to 2.96%

• International News:
  
  • September's initial reading of China's Caixin manufacturing PMI was 47.0, less than expected and a decline from the 47.3 in August
    
    • The reading was the lowest since 2009
      
  • In the eurozone, the initial reading of Markit's Composite PMI showed a greater-than-expected fall to 53.9 in September from 54.3 in October
    
    • The Services PMI fell to 54.0 in September from 54.4 in August and the Manufacturing PMI decline to 52.0 from 52.3
      
    • The internals of the survey were more positive than the headline number, with faster growth of new work and backlogs of orders
      
    • The data were consistent with French GDP growth of 0.1% for Q3 and German GDP growth of 0.4% over the same period
      
  • The European Central Bank amended its asset-backed security (:ABS) purchase program, increasing the proportion of purchases to be made by national central banks rather than external managers

• Data Out Today:
  
  • MBA Mortgage Index for the week ending 9/19 (07:00 ET)
    
  • Crude Inventories for the week ending 9/19 (10:30 ET)
    
• Treasury Auction:
  
  • $35 bln 5-year note auction (results at 13:00 ET)
    
• Fed Speaker:
  
  • Atlanta Fed President Lockhart (FOMC voter) (12:30 ET)

7:29 am On the Wires (:WIRES) :

• Genzyme, a Sanofi (SNY) company, announced that new investigational data on its marketed treatments, Aubagio (teriflunomide) and Lemtrada (alemtuzumab), as well as data from the company's MS pipeline, will be presented during the 31st Congress of the European Committee for Treatment and Research in Multiple Sclerosis
• Microsemi Corporation (MSCC) announced the Philippine Atmospheric, Geophysical and Astronomical Services Administration has selected Microsemi's Precise Time Scale System for its Astronomical Observation and Time Service Unit
• PDL BioPharma (PDLI) announced that it has received ~$21.4 million in connection with the termination of its structured financing agreement with Avinger (AVGR), which included repayment of the full principal amount outstanding of $20.6 million as well as accrued interest and a prepayment fee
• BB&T Corporation (BBT) announced that H. Wade Reece, chairman and CEO of BB&T Insurance Holdings Inc., will retire effective Dec. 31, 2015.

7:12 am Early premarket gappers (SCANX) : Gapping up: HRTX +28.1%, ALU +2.3%, YNDX +2%, RDS.A +1.5%, WPX +1.3%, BUD +1.3%, INTC +1.3%, RIO +1.3%, SNY +1.3%, CCL +1.2%, GSK +0.9%, LLL +0.5%

Gapping down: AXPW -13.8%, NBG -7.8%, EW -5%, ABC -2.2%, TSM -1.8%, NKE -1.7%, NXPI -1.6%, CTSH -1.6%, SYT -1.5%, VVUS -1.2%, OA -1.1%, SAN -1.1%, RIG -1%, SPEX -1%, SQM -1%, CVS -1%

7:07 am J. C. Penney promotes John Tighe to Chief Merchant effective October 1 (JCP) : Tighe most recently served as senior vice president and senior general merchandise manager for the men's, children's, footwear, handbag and intimate apparel divisions. He will succeed Elizabeth Sweney who will serve in an advisory role through the end of the fiscal year, at which time she will retire from the Company after 16 years of service.

7:02 am OncoGenex Pharma announces initial results from the Phase 2 Rainier study; the addition of apatorsen to ABRAXANE and gemcitabine did not demonstrate a survival benefit compared to ABRAXANE and gemcitabine alone (OGXI) :

The co announced today initial results from the Phase 2 Rainier study evaluating apatorsen in combination with ABRAXANE (paclitaxel protein-bound particles for injectable suspension) (albumin-bound) and gemcitabine compared to ABRAXANE and gemcitabine alone in patients with untreated metastatic pancreatic cancer. The addition of apatorsen to ABRAXANE and gemcitabine did not demonstrate a survival benefit compared to ABRAXANE and gemcitabine alone. The study was sponsored and conducted by Sarah Cannon Research Institute and further results will be presented by SCRI at a future medical meeting.

• The most common grade 3/4 treatment-related toxicities on the apatorsen arm were anemia, neutropenia and fatigue, also consistent with the chemotherapy regimen side effects. These and other adverse events observed on the apatorsen arm were similar to those seen in previous trials, with the exception of an increase in grade 4 or greater AEs and serious AEs in this pancreatic cancer trial. While patients in the apatorsen arm had fewer treatment discontinuations due to progressive disease, more patients discontinued therapy due to AEs.

7:01 am Signal Genetics signs a Master Service Agreement with a leading biopharmaceutical company, to deploy its MyPRS test (SGNL) : The first two projects under this MSA will deploy Signal's proprietary MyPRS test to inform the clinical stage development program of a novel treatment -- including potential combination therapies with current drugs -- for patients with multiple myeloma. Signal and its newest biopharmaceutical partner will commence both projects prior to year-end 2015.

7:01 am Post to acquire Willamette Egg Farms for $90 mln; expected to contribute ~$80 mln to net sales and ~$15 mln of adj EBITDA to Post's results on full year basis (POST) :

Post anticipates completing the acquisition early in its first quarter of fiscal 2016, subject to customary closing conditions, including the expiration of waiting periods required under antitrust laws. The acquisition is expected to be funded from cash on hand.

• The co disclosed in a regulatory filing that it acquired Willamette Egg Farms for $90 mln

7:00 am Avinger enters into a term loan agreement and a securities purchase agreement with CRG (AVGR) :

• Co announces it has entered into a term loan agreement and a securities purchase agreement with CRG. The agreements provide Avinger with new financing of up to $55.0 mln. Under the terms of the term loan agreement, Avinger initially borrowed $30.0 mln, which requires only interest payments for four years. Concurrent with this first tranche, CRG purchased $5.0 mln in shares of the Company's common stock at a price of $14.357/share.  
• Avinger has the option under the term loan agreement to borrow an additional $20.0 mln, in two tranches of $10.0 mln each, at its discretion upon achieving certain milestones. Avinger plans to use proceeds from the financing to retire existing debt & fund post-marketing clinical trials.

6:27 am On The Wires (:WIRES) :

• Atlas Copco (ATLKY) announced it has won a major order in Germany for generators and compressors for usage at construction sites. The order value is MEUR 7.1 (MSEK 68).
• Nestl's (NSRGY) Institute of Health Sciences SA has signed a research collaboration agreement with AC Immune SA.. The aim of the collaboration is to develop a sensitive, minimally invasive Tau diagnostic assay for early Alzheimer's disease by applying Nestl's proprietary multiplexed ultrasensitive antibody technology platform.
• Nobilis Health (HLTH) announced that it has executed an agreement to jointly own and operate the former Freedom Pain Hospital located in Scottsdale, Arizona. Nobilis will acquire a 60% stake and management control of the joint venture entity which was formed to own and operate the successor hospital. In the transaction, Nobilis contributed approximately $3.2 million dollars to acquire its 60% stake.
• Zscaler, the Internet security company, today announced the closing of its latest financing, a $25 million continuation of its oversubscribed Series D round from Google (GOOG) Capital. This latest round of financing brings the company's total funding raised in the Series D to $110 million.
• In its 2015 annual report, BHP Billiton (BHP) reaffirmed its FY16 CapEx budget of $8.5 bln, which is down from $11 bln in FY15
• SolarWorld Americas Inc., a subsidiary of SolarWorld AG (SRWRY), has received an order to supply solar power modules with a capacity of 65 megawatts to Panasonic Enterprise Solutions (PCRFY). The contract is expected to be fulfilled in 2016. The high-efficiency, 72-cell solar modules Sunmodule XL Mono will be used in a solar farm in the U.S. state of Oregon.
  

6:05 am Accenture acquires Sagacious Consultants; terms not disclosed (ACN) : Sagacious Consultants is an electronic health record consulting practice

5:58 am Banco Santander presents growth targets; targets double earnings growth by 2018 (SAN) :

Co presented its strategic plan 2016-2018 and gave details of the commercial transformation taking place, based on client loyalty, digitalization and operational excellence.

• Milestones and targets for 2016:
  • growth in loyal and digital customers (15% and 33%, respectively), whilst keeping cost-income stable vs 2015, and growing earnings per share and dividend per share.
  • The three-year plan financial targets are to increase EPS, reaching double digit growth by 2018, ROTE of c13%, and cost-income ratio of less than 45%, while growing CET1 fully loaded to be above 11% in 2018.
  • The bank detailed plans about how the new commercial strategy would lead to organic capital growth.
• The targets announced to achieve by 2018 are:
  • Enhanced profitability (ROTE c.13%)
  • Increasing EPS, reaching double digit growth by 2018
  • Fully Loaded Core Tier 1 Equity (CET1) greater than 11%
  • A cost-income ratio of less than 45%
  • An average cost of risk for the period 2015-2018 of 1.2%

5:56 am S&P futures vs fair value: +5.30. Nasdaq futures vs fair value: +22.50. :

5:56 am European Markets : FTSE...6016.87...+81.00...+1.40%.  DAX...9674.38...+103.70...+1.10%.

5:56 am Asian Markets : Nikkei...Holiday.........  Hang Seng...21302.91...-493.70...-2.30%.

5:38 am GlaxoSmithKline, Pfizer (PFE) unit ViiV reports new Phase IIIb/IV data met primary endpoint (GSK) :

ViiV Healthcare announced 24-week data from the Phase IIIb/IV STRIIVING study, an open-label study evaluating the efficacy, safety and tolerability of switching from an antiretroviral therapy to the once-daily, fixed-dose dolutegravir-based regimen, Triumeq in virologically suppressed adults with HIV-1

• The study included adults who remained on their existing ART to 24 weeks. STRIIVING met its primary endpoint, demonstrating that viral suppression was non-inferior for patients switching to abacavir/dolutegravir/lamivudine: 85% vs. 88%, per protocol: 93% vs. 93%
• No patients had protocol defined virologic failure and therefore no patients were evaluated for treatment-emergent resistance in either arm
  

5:32 am Taiwan Semi sees Q3 revs above consensus due to favorable FX (TSM) :

Co announced that its Q3 revenue will exceed the company's guidance given on July 16, 2015 due to a more favorable US dollar exchange rate to the NT dollar.

• Co issues upside guidance for Q3 (Sep), sees Q3 (Sep) revs of NT$211-213 bln vs. $209.67 bln Capital IQ Consensus Estimate (above co's guidance NT$207-210 bln).
• Both gross profit and operating profit margins to be within the range of its July guidance of 47% to 49% for the gross profit margin and 36.5% to 38.5% for the operating profit margin.

Q4 - The company further expects its fourth-quarter revenue will experience a sequential decline, with profit margin rates similar to its third quarter. As a result, the company expects its full-year revenue growth rate will still be close to double digits from 2014 as the company previously indicated.

• Co issues downside guidance for Q4 (Dec), sees Q4 (Dec) revs of NT$198-204 bln vs. $209.53 bln Capital IQ Consensus Estimate.

4:38 am On The Wires (:WIRES) :

• TSYS (TSS) announced that it has extended its payments agreement with ING Bank (ING) for their commercial card portfolio. TSYS has been supporting ING Bank N.V. since 2009 with the TS2 processing platform, as well as providing additional services.
• Telenor Group (TELNY) announced that Uninor, its subsidiary in India, will change its name to Telenor India.
• TNT (TNTEY) announced it is launching a scheduled road connection to Georgia and reducing European road transit times to Moscow.
  

3:36 am Total S.A. provides update on strategy and outlook; expected production to grow 6-7% per year through 2017 (TOT) :

Key messages of the presentation include:

• Total is executing its plan to reduce capital expenditures to 23-24 B$ in 2015, from the peak of 28 B$ in 2013. The Group will further reduce investment down to 20-21 B$ in 2016, before returning to a sustainable level of 17-19 B$ from 2017 onwards.
• Opex reduction target increased by 50% from $2 bln to $3 bln by 2017
• Total achieved a production increase of 11% year on year during the first half of 2015. Production is planned to grow by an average of 6-7% per year between 2014 and 2017 and by an average of 5% per year between 2014 and 2019. Main drivers for production growth include twenty major start-ups, eight of which are in 2015, and increasing production efficiency.
• The Group confirms that organic free cash flow will cover the dividend by 2017 at $60/b.
• The Group is committed to its oil and gas integrated business model and plans to allocate its capital employed 75% to Upstream and 25% to Downstream.
• The Group also plans to invest Capex of around $500 mln per year to build profitable businesses in new energies
  

2:59 am AXA SA signs share repurchase agreement to eliminate dilutive impact of shareplan (AXAHY) : In the context of the AXA Group's 2015 employee share offering and in order to eliminate the associated dilutive effect, AXA has today signed a share repurchase agreement with an investment services provider whereby AXA will buyback and cancel shares for a maximum value of 411,700,000, all in accordance with its share repurchase program.

2:51 am Swiss Re unit acquires Guardian Financial Services for GBP1.6 bln (SSREY) :

Swiss Re announces its business unit, Admin Re, agreed to acquire Guardian Financial Services for GBP1.6 billion. 

• Acquisition will support Admin Re's ambition to emerge as a leading closed life book consolidator in the UK, with over four million policies
• Acquisition expected to significantly increase Admin Re's gross cash generation capacity and return on equity
• Attractive opportunity to deploy part of excess capital above the Swiss Re Group's profitability hurdle rate of 11% ROE; in line with the Group strategy

2:47 am Saratoga Investment: ISS and Glass Lewis recommend stockholders vote 'FOR' share proposal (SAR) :

Co announces that Institutional Shareholder Services and Glass Lewis issued a report recommending that stockholders of Saratoga Investment Corp. vote "FOR" all of the proposals included in the proxy statement for the Company's 2015 Annual Meeting of Stockholders, including one which would allow the Company to issue and sell shares of its common stock below its then current net asset value per share

• The co stated has no immediate plans to sell any shares of its common stock at a price below NAV and the authority granted under this proposal expires after one year

2:41 am Sun Life announces offering of up to $500 mln of Series 2015-1 Subordinated Unsecured 2.60% Fixed/Floating Debentures due 2025 (SLF) :  

2:38 am Intra-Cellular Therapies prices 6,900,000 shares of common stock at $43.50 per share (ITCI) :