8:54 am S&P futures vs fair value: +4.20. Nasdaq futures vs fair value: +9.80. (:WRAPX) :

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

Markets in the Asia-Pacific region ended Friday mostly lower. Japan (+0.8%) was the notable exception, setting aside some early disappointment over some weak CPI and household spending data and the decision by the Bank of Japan to leave its monetary policy unchanged. A report suggesting the government might introduce some fiscal stimulus with a supplementary budget helped bolster investor sentiment. Separately, the yuan made its biggest gain since 2005 on reports the PBOC is considering a reduction in capital controls in the Shanghai free trade zone. Elsewhere, the Bank of Japan left its uncollateralized overnight call rate unchanged at 0.10%, as expected, and maintained the size of its asset purchase program for September.

• In economic data:
  • Japan's Household Spending -1.3% month-over-month (expected +0.3%; prior +2.5%); -0.4% year-over-year (expected +1.2%; prior +2.9%), September National CPI 0.0% year-over-year (expected +0.1%; prior +0.2%), October Tokyo CPI +0.1% year-over-year (expected 0.0%; prior -0.1%), September National Core CPI -0.1% year-over-year (expected -0.2%; prior -0.1%), October Tokyo Core CPI -0.2% (expected -0.1%; prior -0.2%), September Unemployment Rate 3.4% (expected 3.4%; prior 3.4%), September Housing Starts +2.6% year-over-year (expected +6.6%; prior +8.8%), and September Construction Orders +6.7% year-over-year (prior -15.6%)
  • Australia's Q3 PPI +0.9% quarter-over-quarter (prior +0.3%); +1.7% year-over-year (prior +1.1%), September Housing Credit +0.6% (prior +0.6%), and September Private Sector Credit +0.8% month-over-month (expected +0.5%; prior +0.6%)
  • South Korea's September Industrial Production +1.9% month-over-month (expected +0.4%; prior +0.2%); +2.4% year-over-year (expected +0.6%; prior +0.1%), and Retail Sales +0.5% month-over-month (prior +2.1%)
  • Singapore's Q4 Business Expectations -16.0 (prior +2.0)
  • New Zealand's October ANZ Business Confidence +10.5% (expected -10.0%; prior -18.9%)

------

• Japan's Nikkei increased 0.8%. The Nikkei had been modestly lower earlier in the day in the wake of the Bank of Japan's decision to leave its monetary policy unchanged and some unsatisfying CPI and household spending data. It rallied back in the afternoon, however, amid media reports the government might introduce a supplementary budget in excess of JPY 3 trln with some emphasis on improving urban infrastructure. Gains were led by the health care (+2.9%), consumer discretionary (+1.5%), and consumer staples (+1.5%) sectors. The top-performing issues were Tokuyama (+11.9%), Shionogi (+11.4%), and Nichirei (+6.6%). The biggest laggards were GS Yuasa (-11.2%), Konica Minolta (-9.5%), and Mitsui Engineering & Shipbuilding (-8.8%). Out of the 225 index members, 163 ended higher, 56 finished lower, and 6 were unchanged. For the week the Nikkei gained 1.4%.
• Hong Kong's Hang Seng declined 0.8% and finished at its lows in a seesaw session. Trading in the afternoon was accented by a steady downtrend in the market, with losses in the financial and energy groups weighing. AIA Group (-3.0%), China Life Insurance (-2.3%), and Sands China (-2.3%) were the worst-performing issues while China Mengniu Dairy (+3.4%), Li & Fung (+3.3%), and Lenovo Group (+2.3%) topped the list of winners. Out of the 50 index members, 14 ended higher, 33 finished lower, and 3 were unchanged. For the week the Hang Seng declined 2.2%.
• China's Shanghai Composite declined 0.1% after being down 1.2% shortly after the start of trading. Participants bought the dip, although some selling pressure emerged in the final hour to tip the market back into negative territory. Separately, the yuan had its biggest move against the dollar since 2005 on reports the PBOC is entertaining a reduction in capital controls in the Shanghai free trade zone. For the week the Shanghai 'A' Shares declined 0.9% while the Shanghai 'B' shares increased 2.1%.

Major European indices trade lower across the board, but their losses have been contained for the most part. Meanwhile, the euro has inched up against the dollar to erase the bulk of this week's decline. Currently, the single currency is on course to end the week near 1.1018 after returning into the neighborhood of last week's settlement at 1.1025.

• Investors received several data points:
  • Eurozone October CPI 0.0% year-over-year (expected 0.1%; prior -0.1%), Core CPI +1.0% year-over-year (consensus 0.9%; prior 0.9%), and September Unemployment Rate ticked down to 10.8% from 10.9% (expected 11.0%)
  • Germany's September Retail Sales 0.0% month-over-month (expected 0.4%; prior -0.7%); +3.4% year-over-year (consensus 4.2%; last 2.1%)
  • France's September Consumer Spending 0.0% month-over-month (consensus 0.2%; prior 0.1%) and September PPI +0.1% month-over-month (last -0.9%)
  • Spain's preliminary Q3 GDP +0.8% quarter-over-quarter, as expected
  • Italy's October CPI +0.2% month-over-month (expected 0.1%; prior -0.4%) and September PPI -0.2% month-over-month (prior -0.6%)
  • Swiss October KOF Leading Indicators slipped to 99.8 from 100.3 (consensus 100.0)

------

• In France, the CAC is lower by 0.1% with consumer names on the defensive. L'Oreal has tumbled 5.0% while Accor, Carrefour, and Danone hold losses between 1.4% and 2.2%. Financials outperform with BNP Paribas and Credit Agricole trading higher by 1.7% and 0.4%, respectively.
• Germany's DAX has given up 0.1% amid weakness in heavyweight components. Bayer, Deutsche Bank, BMW, and Adidas show losses between 0.4% and 1.0%. Utilities outperform with RWE and E.On holding respective gains of 2.7% and 0.9%.
• UK's FTSE is lower by 0.4% with financials and consumer names struggling. Royal Bank of Scotland, Barclays, Unilever, and WM Morrison Supermarkets show losses between 1.3% and 2.0%.

8:47 am Huntington Ingalls elects Christopher Kastner to succeed Barbara Niland as CFO, effective with Niland's retirement on March 1, 2016 (HII) : Kastner, who currently serves as corporate vice president and general manager, corporate development, will continue to report to Petters in his new role beginning next March.

8:45 am Uranium Energy appoints interim CFO (UEC) :

• Co announce the appointment of Pat Obara, the Company's current Vice President, Administration, as the Company's interim Chief Financial Officer.
• Obara is replacing Mark Katsumata who is resigning to pursue other interests.
• Obara served as the Chief Financial Officer of UEC from August 2006 to January 2011.

8:40 am XPO Logistics completes acquisition of Con-Way (CNW) (XPO) :  

8:37 am Pinnacle West misses by $0.02, reports revs in-line; guides FY15 EPS in-line; guides FY16 EPS in-line (PNW) :

• Reports Q3 (Sep) earnings of $2.30 per share, $0.02 worse than the Capital IQ Consensus of $2.32; revenues rose 2.3% year/year to $1.2 bln vs the $1.19 bln Capital IQ Consensus.
• Co issues in-line guidance for FY15, sees EPS of $3.75-$3.95 vs. $3.82 Capital IQ Consensus Estimate.
• Co issues in-line guidance for FY16, sees EPS of $3.90-$4.10 vs. $4.02 Capital IQ Consensus Estimate.
• Longer-term, the company's goal is to achieve a consolidated earned return on average common equity of more than 9.5% annually through 2016.

8:36 am Chevron beats by $0.33, beats on revs (CVX) :

• Reports Q3 (Sep) earnings of $1.09 per share, $0.33 better than the Capital IQ Consensus of $0.76; revenues fell 37.2% year/year to $34.31 bln vs the $27.02 bln single analyst estimate.
• Third quarter earnings were down substantially from a year ago. While downstream earnings remained strong, lower overall earnings reflected weaker market prices for both crude oil and natural gas, which depressed upstream profitability. Co is focused on improving results by changing outcomes within its control. Operating and administrative expenses are 7% lower than last year, and co expects further reductions in the quarters ahead.
• Co expects capital and exploratory expenditures for 2016 to be $25-28 billion, roughly 25% lower than this year's budget. Co expects further reductions in spending for 2017 and 2018, to the $20 to $24 billion range, depending on business conditions at the time. With the lower investment, we anticipate reducing our employee workforce by 6--7,000.
• The co continues to make good progress on its asset sales program. In the last two years the co has generated $11 billion in proceeds. The co expected $5-10 billion in additional proceeds by the end of 2017.

8:36 am European Markets Update: CAC -0.1%, DAX -0.1%, FTSE -0.4% (:SUMRX) :

Major European indices trade lower across the board, but their losses have been contained for the most part. Meanwhile, the euro has inched up against the dollar to erase the bulk of this week's decline. Currently, the single currency is on course to end the week near 1.1018 after returning into the neighborhood of last week's settlement at 1.1025.

• Investors received several data points:
  • Eurozone October CPI 0.0% year-over-year (expected 0.1%; prior -0.1%), Core CPI +1.0% year-over-year (consensus 0.9%; prior 0.9%), and September Unemployment Rate ticked down to 10.8% from 10.9% (expected 11.0%)
  • Germany's September Retail Sales 0.0% month-over-month (expected 0.4%; prior -0.7%); +3.4% year-over-year (consensus 4.2%; last 2.1%)
  • France's September Consumer Spending 0.0% month-over-month (consensus 0.2%; prior 0.1%) and September PPI +0.1% month-over-month (last -0.9%)
  • Spain's preliminary Q3 GDP +0.8% quarter-over-quarter, as expected
  • Italy's October CPI +0.2% month-over-month (expected 0.1%; prior -0.4%) and September PPI -0.2% month-over-month (prior -0.6%)
  • Swiss October KOF Leading Indicators slipped to 99.8 from 100.3 (consensus 100.0)

------

• In France, the CAC is lower by 0.1% with consumer names on the defensive. L'Oreal has tumbled 5.0% while Accor, Carrefour, and Danone hold losses between 1.4% and 2.2%. Financials outperform with BNP Paribas and Credit Agricole trading higher by 1.7% and 0.4%, respectively.
• Germany's DAX has given up 0.1% amid weakness in heavyweight components. Bayer, Deutsche Bank, BMW, and Adidas show losses between 0.4% and 1.0%. Utilities outperform with RWE and E.On holding respective gains of 2.7% and 0.9%.
• UK's FTSE is lower by 0.4% with financials and consumer names struggling. Royal Bank of Scotland, Barclays, Unilever, and WM Morrison Supermarkets show losses between 1.3% and 2.0%.

8:34 am Brinks beats by $0.01, reports revs in-line; reaffirms FY15, FY16 EPS guidance (BCO) :

• Reports Q3 (Sep) earnings of $0.37 per share, excluding non-recurring items, $0.01 better than the two analyst estimate of $0.36; revenues fell 13.1% year/year to $759 mln vs the $758.04 mln two analyst estimate.
• Co reaffirms guidance for FY15, sees EPS of $1.40-1.50, excluding non-recurring items, vs. $1.44 Capital IQ Consensus Estimate.
• Co reaffirms guidance for FY16, sees EPS of $2.00-2.20, excluding non-recurring items, vs. $2.00 Capital IQ Consensus Estimate.

8:33 am Gapping down (SCANX) : Gapping down
In reaction to disappointing earnings/guidance: SCTY -19.3%, FWM -17.6%, AAN -17.3%, CTRL -17.2%, CENX -15.9%, SEM -15.3%, DGI -8.2%, ORC -8.2%, MX -7.5%, GNW -7.1%, RKUS -6.9%, FRGI -6.8%, LSCC -5.6%, SAM -4.9%, EYES -4%, KEY -4%, BBVA -4%, MOH -2.9%, CVS -2.7%, OUTR -2.4%, ETN -1.9%, EA -1.4%, CL -1.2%, RBS -1.1%, IM -0.8%, FLS -0.7%, BPL -0.7%, SBUX -0.5%

Other news: AUMN -9.7% (reported that it will suspend mining and processing activities at the Velardena mine/mill in the first half of November, due to the pricing environment), VRX -8.5% (announces it will terminate its relationship with Philidor), SUNE -6.4% (in reaction to David Tepper shooting down rumor that he was entering a long in the co), RPM -3.6% ( discloses that it and its General Counsel received Wells notices from the SEC's Division of Enforcement), NYCB -2.4% (prices offering of ~40.6 mln shares of its common stock at $16.00/share), CFG -1.9% (prices the secondary offering of 110,461,782 shares being sold by The Royal Bank of Scotland (RBS) at $23.38/share), LVLT -1% (priced its $900 mln private offering of 5.375% Senior Notes due 2024 at par), TSLA -1% (still checking, may be trading down with SCTY (has traded similarly in the past))

Analyst comments: RPRX -2.9% (downgraded to Hold at Brean Capital), RTIX -0.9% (downgraded to Hold at Canaccord Genuity)

8:32 am Interdigital Comm beats by $0.41, beats on revs (IDCC) :

• Reports Q3 (Sep) earnings of $0.68 per share, $0.41 better than the Capital IQ Consensus of $0.27; revenues rose 29.4% year/year to $100.4 mln vs the $79.05 mln two analyst estimate.
• Recurring revenue was $78.6 million, consisting of current patent royalties and current technology solutions revenue, representing an increase of 7% compared to recurring revenue of $73.2 million in third quarter 2014. This increase in recurring revenue was primarily attributable to a 16% increase in per-unit royalties, driven by increased shipments by Pegatron Corporation and our other Taiwan-based licensees.
• "The ongoing market strength of our licensees continues to drive recurring revenue growth, even as we work to expand our licensee base," said William J. Merritt, President and CEO of InterDigital. "That growth, coupled with our careful expense management, highlights the tremendous operating leverage of our business, which positions us very strongly as revenues expand."

8:31 am S&P futures vs fair value: +4.40. Nasdaq futures vs fair value: +10.50. (:WRAPX) :

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

The Q3 Employment Cost Index rose 0.6% while the Briefing.com consensus expected an increase of 0.5%.

Separately, September personal income rose 0.1% while the Briefing.com consensus expected an uptick of 0.2%. Meanwhile, personal spending also rose 0.1% while the consensus expected a reading of 0.2%.

Core PCE prices rose 0.1%, which is what the consensus expected.

8:31 am Market View: Front-month Dec. eMini stock-index futures continue to trade with a modest bid here following the 8:30 am ET economic data points (:TECHX) :

• ESz5 now +4.25
  
  
• YMz5 now +35
  
  
• NQz5 now +10.00

8:31 am Integra's CUSA Excel+ system has been cleared by the FDA for liver resection and tumor removal (IART) :  

8:28 am Gapping up (SCANX) : Gapping up
In reaction to strong earnings/guidance: VSCP +40%, CRAY +21.5%, YRCW +17%, IMPV +15.1%, COLM +14.8%, DECK +13.5%, ACRX +13.4%, LNKD +12.3%, FSLR +12.3%, LC +11.5%, QTM +8.7%, FLDM +8.4%, MXWL +7.5%, BCOV +6.9%, EXPE +6.6%, MOBL +6.6%, LPG +6.6%, BIDU +6.5%, GBX +6.4%, LYV +6.3%, ABBV +6.1%, ABBV +6.1%, ATEN +5.8%, EXTR +5.8%, EXTR +5.8%, UVE +4.8%, CATM +4.4%, CSCD +4%, ON +3.4%, UTSI +3.2%, PRMW +2.7%, BUD +2.7%, TSYS +2.4%, LNG +2%, EGO +1.9%, FE +1.8%, NUS +1.5%, THRM +1.3%, MTSN +1.3%, PSX +1.2%, EXC +1.1%, SCSC +0.9%, XOM +0.7%

M&A news: FNFG +3.5% (to be acquired by KeyCorp (KEY) for $11.40/share, or ~$4.1 bln), PMCS +2.2% (PMC-Sierra and Skyworks (SWKS) Announce Amended and Restated Merger Agreement for Increased Consideration of $11.60 per Share in Cash)

Select metals/mining stocks trading higher: MTL +10.3%, GFI +2.8%, GG +1.9%, BBL +1.5%, BHP +1.2%, IAG +1.1%, VALE +0.7%, GDX +0.6%

Other news: LPCN +15.6% (announces the FDA has accepted for filing, its NDA for LPCN 1021 ), QIWI +7.8% (rebounding following yday's decline), LUNA +4.9% (reports that its icometrix division recently received a $7 million purchase order, for 100G integrated coherent receivers), AEMD +3.1% (provided update on the principal investigator for its FDA-approved feasibility study of the Hemopurifier therapy), MDVN +2.1% (confirms Q3 net sales of XTANDI, as reported by collaboration partner Astellas Pharma (ALPMY) this morning), AIG +1.5% (still considering spin-off or sale of mortgage unit amid activist pressure, according to WSJ), ANAC +1.2% ( reports top-line results from the long-term safety study of 2% Crisaborole Topical Ointment; demonstrated a safety profile consistent with that seen in the Phase 3 pivotal studies), NOK +1.1% (Nokia and China Mobile (CHL) agree to to a $1 bln contract for mobile communications equipment and services), EZCH +0.8% (Gamco Investors (Mario Gabelli) discloses 5.41% active stake 13D filing)

Analyst comments: ABMD +3.6% (upgraded to at upgraded to Outperform at Raymond James VRTX +3% (upgraded to Buy at H.C. Wainwright), NVDA +2% (upgraded to Equal-Weight at Morgan Stanley), RIO +1.8% (upgraded to Buy at Investec, MDXG +1.5% (upgraded to Outperform from Market Perform at Northland)

8:28 am European Yields (BONDX) :

Eurozone Debt Trades Sideways on Better Data

• Eurozone government debt has given back much of its post-ECB meeting gains over the past two days as the FOMC statement increased market expectations for December liftoff to roughly 50/50 and the Treasury complex traded lower. The 10-year Bund yield was at 0.57% before European Central Bank President Mario Draghi signaled last Thursday that the deposit rate might be cut at the December ECB meeting. Within four trading sessions, the 10-year Bund yield was down to 0.42%. That yield is now back to 0.53% amidst a steady flow of improving (if still weak) eurozone economic data and a higher likelihood of imminent Fed liftoff. In theory, QE may actually increase yields, as growth prospects improve and investors move out the risk curve in a "dash to trash"
  
• The eurozone's unemployment rate fell to 10.8% in September, its lowest level since January 2012.The August reading was revised down to 10.9% from 11.0%
  
  • The eurozone's headline consumer price index was flat y/y in October, falling short of economists' expectations
    
  • Core prices in the eurozone were flat in the year to October, missing expectations but beating the 0.1% fall in September
    
• German retail sales were flat in the month to September, badly missing analyst estimates. August's print was revised down to -0.7% from -0.4%
  
• The Spanish economy grew 0.8% q/q in the third quarter, according to preliminary data. The growth was in line with estimates but worse than the 1.0% growth from Q2. Record spending by tourists supported the gain
  
• French consumer spending was flat m/m in September, worse than both expectations and the downwardly-revised 0.1% gain in August
  
• Yield Check:
  
  • France, 10-yr OAT: -1 bp to 0.87%
    
  • Germany, 10-yr Bund: -1 bp to 0.53%
    
  • Greece, 10-yr note: -9 bps to 7.72%
    
  • Italy, 10-yr BTP: -1 bp to 1.48%
    
  • Portugal, 10-yr note: +9 bps to 2.60%
    
  • Spain, 10-yr ODE: +1 bp to 1.67%
    
  • U.K., 19-yr Gilt: unch at 1.93%

8:27 am Integrated Electrical acquires the membership interests of Calumet Armature & Electric; terms not disclosed (IESC) : Calumet Armature & Electric is an Illinois-based provider of design, manufacturing, assembly, and repair services of electric motors for the industrial and mass transit markets

8:26 am Oi SA enters exclusivity agreement with LetterOne regarding a potential combination with TIM Participacoes S.A. (TSU) (OIBR) :

The co announced that after having evaluated the exclusivity proposal for the potential transaction with the purpose of making possible a consolidation of the Brazilian telecommunications sector involving a potential business combination with TIM Participacoes S.A. (TSU), which was delivered by LetterOne Technology, Oi sent a letter to L1 Technology, containing an exclusivity counterproposal, by which Oi and L1 Technology would grant each other a mutual right of exclusivity for a period of seven (7) months from October 23, 2015, with respect to, primarily, business combinations involving companies or assets in the Brazilian telecommunications sector.

• Oi has received confirmation that L1 Technology agrees with all the terms of the counterproposal. As a result, Oi and L1 Technology are bound by exclusivity for the period of seven (7) months from October 23, 2015.

8:24 am Virtus Investment Partners misses by $0.27, reports revs in-line (VRTS) :

• Reports Q3 (Sep) earnings of $1.74 per share, $0.27 worse than the Capital IQ Consensus of $2.01; revenues fell 21.6% year/year to $92.38 mln vs the $93.15 mln two analyst estimate.
• Total assets under management were $47.9 billion at September 30, 2015 compared with $59.6 billion at September 30, 2014 and $52.4 billion at June 30, 2015. The decrease from prior periods is attributable to net outflows and market depreciation.

8:23 am On the Wires (:WIRES) :

• Oi S.A. (OIBR) sent a letter to L1 Technology, containing an exclusivity counterproposal, by which Oi and L1 Technology would grant each other a mutual right of exclusivity for a period of seven (7) months from October 23, 2015, with respect to, primarily, business combinations involving companies or assets in the Brazilian telecommunications sector. Oi received confirmation that L1 Technology agrees with all the terms of the counterproposal.
• CB&I (CBI) was awarded an early works contract by Lotte Chemical Louisiana, to provide construction planning and reviews as well as early works services associated with a proposed monoethylene glycol facility in Lake Charles, Louisiana. Co also announced it has been awarded a contract in excess of $70 million by a major electric utility company for maintenance, modification and supplemental labor services at a nuclear generating station in the U.S.
• Sutor Technology Group Limited (TOR) announced that ArcelorMittal Steel Group visited Sutor recently and reached an agreement with Sutor for business cooperation
• Portola Pharmaceuticals (PTLA) announced it has completed patient enrollment in the pivotal Phase 3 APEX Study. Portola plans to report top-line data at the end of the first quarter of 2016. If the trial is successful, the Company expects to submit a New Drug Application (:NDA) to the U.S. Food and Drug Administration (:FDA) in the second half of 2016 under Fast Track designation.

8:15 am Cheniere Energy Partners LP reports Q3 (CQH) :

Reports Q3 (Sep) earnings of $0.02 per share, in-line with the Capital IQ Consensus of $0.02; revenues was unchanged year/year to $5.08 mln vs the $5.09 mln Capital IQ Consensus.

• "Our only business consists of owning Cheniere Partners common units, Class B units and subordinated units representing an aggregate approximately 55.9% limited partner interest in Cheniere Partners as of September 30, 2015."

8:11 am CB&I has been awarded a contract in excess of $70 mln by a major electric utility company (CBI) :  

8:10 am Exxon Mobil beats by $0.11, beats on revs (XOM) :

• Reports Q3 (Sep) earnings of $1.01 per share, $0.11 better than the Capital IQ Consensus of $0.90; revenues fell 37.1% year/year to $67.34 bln vs the $63.67 bln Capital IQ Consensus.
• Significantly lower Upstream realizations more than offset higher Downstream and Chemical earnings.
• Downstream segment earnings nearly doubled from the third quarter of 2014 due to stronger refining margins. Chemical results, comparable with the year-ago quarter, reflect continued strength in product margins and the quality of the company's product and asset mix.
• Upstream production volumes increased 2.3%, or 87,000 barrels per day, to 3.9 million oil-equivalent barrels per day. Liquids volumes of 2.3 million barrels per day rose 13 percent driven by new developments in Canada, Indonesia, the United States, Angola and Nigeria.

8:07 am Provident Finl misses by $0.02 (PFS) :

• Reports Q3 (Sep) earnings of $0.33 per share, $0.02 worse than the Capital IQ Consensus of $0.35. 
• For the three months ended September 30, 2015, net interest income decreased $422,000 to $62.5 million, from $63.0 million for the same period in 2014. The decline in net interest income for the quarter ended September 30, 2015 was primarily due to compression in the net interest margin, which outpaced the impact of growth in earning assets.
• The Company's net interest margin decreased 4 basis points to 3.13% for the quarter ended September 30, 2015, from 3.17% for the trailing quarter. The weighted average yield on interest-earning assets decreased 5 basis points to 3.66% for the quarter ended September 30, 2015, compared with 3.71% for the quarter ended June 30, 2015.

8:06 am Stillwater Mining misses by $0.07, beats on revs (SWC) :

• Reports Q3 (Sep) loss of $0.10 per share, $0.07 worse than the Capital IQ Consensus of ($0.03); revenues fell 33.2% year/year to $168.4 mln vs the $158.3 mln Capital IQ Consensus.
• Mined palladium and platinum production of 128,100 ounces, a 4% increase over 123,000 ounces mined during the third quarter of 2014
  
• Processed 161,000 ounces of recycled palladium, platinum and rhodium, an increase of 36.8% over 117,700 ounces recycled during the third quarter of 2014

8:04 am Exelon beats by $0.10, beats on revs; guides FY15 EPS in-line (EXC) :

• Reports Q3 (Sep) earnings of $0.83 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $0.73; revenues rose 7.2% year/year to $7.41 bln vs the $6.96 bln two analyst estimate.
• Co issues raised guidance for FY15, sees EPS of $2.40-2.60 from $2.35-2.55 vs. $2.49 Capital IQ Consensus Estimate.

8:03 am American Axle beats by $0.10, misses on revs (AXL) :

• Reports Q3 (Sep) earnings of $0.78 per share, $0.10 better than the Capital IQ Consensus of $0.68; revenues rose 2.2% year/year to $971.6 mln vs the $987.75 mln Capital IQ Consensus. Non-GM sales were up 8.4% in the quarter to $321.6 million as compared to $296.8 million in the third quarter of 2014.

8:03 am Seagate Tech misses by $0.03, reports revs in-line with preannouncement (STX) :

• Reports Q1 (Sep) earnings of $0.54 per share, $0.03 worse than the Capital IQ Consensus of $0.57; revenues fell 22.7% year/year to $2.92 bln vs the $2.92 bln Capital IQ Consensus.
• "While lower than planned nearline enterprise demand temporarily impacted our financial results, we are pleased with the momentum we have across our products, which will be further supported by the newly acquired assets of Dot Hill and our ability to now completely integrate the Samsung hard drive business. As we look forward, we are focused on delivering storage solutions for a significant range of existing, growing and emerging areas, and believe we have the right strategy and portfolio to deliver value to shareholders." 

8:02 am Parke Bancorp will sell its SBA Subsidiary to Berkshire Hills (BHLB); terms not disclosed (PKBK) :

Co announced that it and its majority-owned subsidiary, 44 Business Capital (44BC) have entered into a Purchase and Assumption Agreement with Berkshire Hills Bancorp (BHLB) to sell the assets of 44BC and certain related assets held by the bank. Berkshire has agreed to purchase the assets of 44BC.

• In addition, Berkshire has agreed to pay Parke Bank to purchase certain servicing rights for specified SBA loans and will purchase $38.4 million in SBA loans held as loans by Parke Bank. Closing anticipated in 1Q16

8:01 am Flushing Fin announces that CFO David Fry will retire, effective February 5, 2016; EVP Susan Cullen to be named successor (FFIC) : Susan Cullen, who joined the Company as Executive Vice President and Chief Accounting Officer in 2015, will be named to succeed Fry as Chief Financial Officer and Treasurer, effective upon his retirement. Cullen was also most recently an EVP/SEC Reporting and Investor Relations Officer at Hudson Valley Bank, which was acquired by Sterling Bancorp.

8:00 am PMC-Sierra and Skyworks (SWKS) announce amended and restated merger agreement for increased consideration of $11.60/share in Cash (PMCS) :

Co and Skyworks Solutions, Inc. (SWKS) enteres into an amended and restated merger agreement under which Skyworks has agreed to acquire PMCS for $11.60 in cash per share of PMCS common stock, an increase from its previous agreement to acquire PMCS for $10.50 in cash per share of PMCS common stock.

• The amended and restated merger agreement also provides for an increase in the termination fee from $70.0 mln to $88.5 mln.
• The transaction is expected to close in the first half of calendar 2016, subject to PMCS shareholder approval.

7:58 am On the Wires (:WIRES) :

• Enterprise Products Partners (EPD) announced it will be conducting a binding open commitment period to gauge shipper support for a proposed expansion of the Aegis pipeline. The 270-mile Aegis system is designed to transport purity ethane from Enterprise's Mont Belvieu, Texas liquids storage complex to petrochemical facilities in Texas and Louisiana.
• Ocean Power Technologies (OPTT) announced that it redeployed the APB350 PowerBuoy off the coast of New Jersey and resumed sea trials. OPT is also releasing selected performance data gathered during the A1's initial deployment as well as initial results of the Accelerated Life Testing on its redesigned APB350 Power TakeOff system
• Antares Pharma (ATRS) announced that the last patient has completed treatment in the dose-blinded, multiple-dose 52 week Phase 3 study to evaluate the efficacy and safety of QuickShot Testosterone administered subcutaneously once each week to adult males with hypogonadism.
• Solazyme (SZYM) and Bunge Limited (BG) have agreed to expand JV to include a focus on food. The expansion includes a range of oils for food and products for animal nutrition.

7:55 am S&P futures vs fair value: +2.70. Nasdaq futures vs fair value: +6.30. (:WRAPX) :

U.S. equity futures trade little changed after slipping from their pre-market highs with S&P 500 futures hovering three points above fair value.

Meanwhile, Treasuries hold gains with the 10-yr yield slipping one basis point to 2.16%.

September Personal Income (Briefing.com consensus 0.2%), Personal Spending (expected 0.2%), Core PCE Prices (consensus 0.1%), and Q3 Employment Cost Index (expected 0.5%) will all be released at 8:30 ET while October Chicago PMI (expected 49.0) and the final reading of the Michigan Sentiment Index for October (consensus 92.6) will be reported at 9:45 ET and 10:00 ET, respectively.

In U.S. corporate news of note:

• Starbucks (SBUX 62.04, -0.46): -0.7% after reporting in-line results and guiding below analyst expectations.
• ON Semiconductor (ON 10.71, +0.43): +4.2% after reporting in-line results and guiding below analyst estimates.
• LinkedIn (LNKD 246.00, +29.00): +13.4% in reaction to better than expected results and upbeat earnings guidance.
• AbbVie (ABBV 56.80, +2.70): +5.0% following better than expected earnings and improved guidance.
• Colgate-Palmolive (CL 68.99, -0.24): -0.4% after beating bottom-line estimates on light revenue.
• Baidu (BIDU 182.00, +13.01): +7.7% after better than expected earnings overshadowed cautious revenue guidance.
• First Solar (FSLR 57.78, +6.79): +13.3% after beating estimates and issuing upbeat guidance.
• CVS Health (CVS 100.51, -3.29): -3.2% after below-consensus guidance masked in-line earnings on above-consensus revenue.
• Anheuser-Busch Inbev (BUD 120.54, +2.80): +2.4% despite missing estimates.

Reviewing overnight developments:

• Asian markets ended mostly lower. China's Shanghai Composite -0.1%, Hong Kong's Hang Seng -0.8%, and Japan's Nikkei +0.8%
  • In economic data:
    • Japan's Household Spending -1.3% month-over-month (expected +0.3%; prior +2.5%); -0.4% year-over-year (expected +1.2%; prior +2.9%), September National CPI 0.0% year-over-year (expected +0.1%; prior +0.2%), October Tokyo CPI +0.1% year-over-year (expected 0.0%; prior -0.1%), September National Core CPI -0.1% year-over-year (expected -0.2%; prior -0.1%), October Tokyo Core CPI -0.2% (expected -0.1%; prior -0.2%), September Unemployment Rate 3.4% (expected 3.4%; prior 3.4%), September Housing Starts +2.6% year-over-year (expected +6.6%; prior +8.8%), and September Construction Orders +6.7% year-over-year (prior -15.6%)
    • Australia's Q3 PPI +0.9% quarter-over-quarter (prior +0.3%); +1.7% year-over-year (prior +1.1%), September Housing Credit +0.6% (prior +0.6%), and September Private Sector Credit +0.8% month-over-month (expected +0.5%; prior +0.6%)
    • South Korea's September Industrial Production +1.9% month-over-month (expected +0.4%; prior +0.2%); +2.4% year-over-year (expected +0.6%; prior +0.1%), and Retail Sales +0.5% month-over-month (prior +2.1%)
    • Singapore's Q4 Business Expectations -16.0 (prior +2.0)
    • New Zealand's October ANZ Business Confidence +10.5% (expected -10.0%; prior -18.9%)
  • In news:
    • The Bank of Japan left its uncollateralized overnight call rate unchanged at 0.10%, as expected, and maintained the size of its asset purchase program for September

• Major European indices trade lower across the board. France's CAC -0.2%, Germany's DAX -0.4%, and UK's FTSE -0.4%. Elsewhere, Italy's MIB -0.1% and Spain's IBEX -1.0%
  • Investors received several data points:
    • Eurozone October CPI 0.0% year-over-year (expected 0.1%; prior -0.1%), Core CPI +1.0% year-over-year (consensus 0.9%; prior 0.9%), and September Unemployment Rate ticked down to 10.8% from 10.9% (expected 11.0%)
    • Germany's September Retail Sales 0.0% month-over-month (expected 0.4%; prior -0.7%); +3.4% year-over-year (consensus 4.2%; last 2.1%)
    • France's September Consumer Spending 0.0% month-over-month (consensus 0.2%; prior 0.1%) and September PPI +0.1% month-over-month (last -0.9%)
    • Spain's preliminary Q3 GDP +0.8% quarter-over-quarter, as expected
    • Italy's October CPI +0.2% month-over-month (expected 0.1%; prior -0.4%) and September PPI -0.2% month-over-month (prior -0.6%)
    • Swiss October KOF Leading Indicators slipped to 99.8 from 100.3 (consensus 100.0)
  • Among news of note:
    • The euro has inched up against the dollar to erase the bulk of this week's decline. Currently, the single currency is on course to end the week near 1.1008 after slipping from last week's settlement of 1.1025

7:55 am Citizens Financial Group prices the secondary offering of 110,461,782 shares being sold by The Royal Bank of Scotland (RBS) at $23.38/share (CFG) : CFG is not selling any shares and will not receive any of the proceeds from the Offering. RBS will fully exit its ownership stake in CFG common stock immediately following the closing of the transaction.

7:52 am Welltower beats by $0.02, reports revs in-line; guides FY15 FFO in-line (HCN) :

• Reports Q3 (Sep) funds from operations of $1.12 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $1.10; revenues rose 15.5% year/year to $978.99 mln vs the $970.21 mln Capital IQ Consensus.
• Co issues in-line guidance for FY15, sees FFO of $4.32-4.37 vs. $4.33 Capital IQ Consensus Estimate.

7:49 am Solazyme misses by $0.05, misses on revs (SZYM) :

• Reports Q3 (Sep) loss of $0.39 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus of ($0.34); revenues fell 35.2% year/year to $11.4 mln vs the $16.24 mln Capital IQ Consensus. 
• The YoY decline in revenues was due to expected decreases in funded program revenue and slower than anticipated adoption rates for Encapso lubricant.

7:45 am Public Service misses by $0.01; guides FY15 EPS in-line; co raised the bottom end of its FY15 EPS guidance (PEG) :

• Reports Q3 (Sep) earnings of $0.80 per share, $0.01 worse than the Capital IQ Consensus of $0.81.
• While the businesses benefited from favorable weather, our results also reflect the benefit from our strategy of increasing investment in infrastructure, a disciplined approach to cost management and the continued availability of low-cost gas supply.
• Based on its strong results, the co raised the bottom end of its FY15 EPS guidance to $2.85-2.95 vs. $2.92 Capital IQ Consensus Estimate, up from $2.80-2.95.

7:37 am Overnight Treasury Summary (BONDX) :

Treasuries Recover Some Losses

• Treasury yields (which move inversely to prices) are declining modestly this morning after touching one-month highs on Thursday. The eurozone's improving employment picture sent the single currency higher and the U.S. Dollar Index down 0.30% to 96.99. The greenback has gained sharply against the euro over the past week as the European Central Bank appears destined to ease more and the Fed signaled more forcefully than it has since the recovery began that the next FOMC meeting potentially holds a rate hike. Today, we receive personal income/spending data as well as the personal consumption expenditures price index, the Fed's preferred metric for inflation
  
• Yield Check:
  
  • 2-yr: unch at 0.72%
    
  • 5-yr: -1 bp to 1.52%
    
  • 10-yr: -2 bps to 2.15%
    
  • 30-yr: -2 bps to 2.94%

• International News:
  
  • The Bank of Japan sat on its hands today and did not announce further monetary easing, as roughly half of analysts had expected. The BoJ current buys $665 of assets per year (JPY 80 tln)
    
    • The current round of unconventional monetary easing began in April of 2013 and failed to achieve its stated goal of getting inflation up to 2% within two years
      
      • The central bank now says that it aims to reach that target between October 2016 and March 2017
        
    • The bank continues to express confidence in its policy, but it has downgraded its growth and inflation forecasts for the year to April 2016 to 1.2% and 0.1%, respectively
      
  • The eurozone's unemployment rate fell to 10.8% in September, its lowest level since January 2012.The August reading was revised down to 10.9% from 11.0%
    
  • Core prices in the eurozone were flat in the year to October, missing expectations but beating the 0.1% fall in September. The core CPI data was preliminary
    
    • The Spanish economy grew 0.8% q/q in the third quarter, according to preliminary data. The growth was in line with estimates but worse than the 1.0% growth from Q2. Record spending by tourists supported the gain
    • French consumer spending was flat m/m in September, worse than both expectations and the downwardly-revised 0.1% gain in August
      
  • The Bank of Russia kept its main policy rate at 11.0% in light of substantial inflation risks. About half of analysts expected a 50 bp cut
    
    • The bank said in its statement that as upward price pressures ebb, it will stand ready to ease more
      
  • The Chinese yuan had its biggest one day rally since March as the PBoC announced further easing of capital controls. There is also speculation that the yuan will be included in the International Monetary Fund's SDR's (special drawing rights), its basket of international reserve currencies

• Data Out Today:
  
  • September Personal Income and Personal Spending (08:30 ET)
    
  • September PCE Prices -- Core (08:30 ET)
    
  • Q3 Employment Cost Index (08:30 ET)
    
  • October Chicago PMI (09:45 ET)
    
  • October Michigan Sentiment -- Final (10:00 ET)

7:37 am Tower Intl misses by $0.10, misses on revs; reaffirmed FY15 EPS in-line, slightly lowers revs guidance, now below consensus (TOWR) :

• Reports Q3 (Sep) earnings of $0.54 per share, $0.10 worse than the Capital IQ Consensus of $0.64; revenues fell 4.5% year/year to $475.2 mln vs the $490.2 mln Capital IQ Consensus.
• Co reaffirmed guidance for FY15, sees EPS of $3.15 vs. $3.15 Capital IQ Consensus Estimate; lowers FY15 revs guidance by $50 mln to $1.95 bln vs. $1.97 bln Capital IQ Consensus Estimate.
• The co expects its two China JV sales to close in the Fourth Quarter, resulting in anticipated cash sale proceeds of about $50 million, plus elimination of about $47 million of minority interests in Tower's net assets; together, this represents more than $4.50 per TOWR share in enterprise value expected to be received in Q4.

7:37 am Lincoln Electric beats by $0.01, misses on revs (LECO) :

• Reports Q3 (Sep) earnings of $0.89 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.88; revenues fell 9.9% year/year to $645.2 mln vs the $652.77 mln Capital IQ Consensus; price and acquisitions were offset by lower volumes and unfavorable foreign currency translation.
• "We improved profit margin performance on an adjusted basis in weakening market conditions and against difficult year-over-year comparisons. Further to the cost reductions initiated in the second quarter, we implemented additional measures that in aggregate now provide approximately $20 million to $25 million in annualized temporary cost savings and $10 million to $12 million in annualized structural savings. Looking ahead, we will continue to execute on our '2020 Vision and Strategy' and manage margin performance through aggressive cost reduction actions in a slowing demand environment."

7:35 am CBOE Holdings beats by $0.03, beats on revs (CBOE) :

• Reports Q3 (Sep) earnings of $0.76 per share, $0.03 better than the Capital IQ Consensus of $0.73; revenues rose 25.6% year/year to $187 mln vs the $182.63 mln Capital IQ Consensus.
  • Revenue increase was largely driven by a $40.5 mln increase in transaction fees, partially offset by a $1.6 mln decrease in access fees. 
  • Transaction fees rose 39% in the quarter due to a 31% increase in the average revenue per contract (:RPC) and a 6% increase in trading volume compared with the third quarter of 2014.
• Core expenses for the 2015 fiscal year are now expected to be in the range of $194.0 million to $196.0 million. The previous guidance range was $190.0 million to $194.0 million. The increase primarily reflects higher incentive-based compensation, which is aligned with the company's financial performance.  

7:34 am Independence Realty Trust reports FFO in-line, misses on revs (IRT) :

• Reports Q3 (Sep) funds from operations of $0.20 per share, in-line with the Capital IQ Consensus of $0.20; revenues rose 96.2% year/year to $25.5 mln vs the $26.02 mln Capital IQ Consensus. Co reported 4.7% increase in rental income for Q3.

7:33 am Domtar beats by $0.31, misses on revs; cautious on short term pulp outlook (UFS) :

• Reports Q3 (Sep) earnings of $0.86 per share, excluding non-recurring items, $0.31 better than the Capital IQ Consensus of $0.55; revenues fell 8.0% year/year to $1.29 bln vs the $1.37 bln Capital IQ Consensus. 
• Outlook: Paper should be impacted by seasonality and mix in the fourth quarter while prices for pulp are still expected to remain under pressure. We remain cautious on the short-term pulp outlook due to the strong U.S. dollar. The fourth quarter should benefit from lower maintenance activities in our network while we expect higher input costs due to increased raw material and energy usage due to colder weather. Personal Care results are expected to continue to benefit from market growth and cost savings from its new manufacturing platform.
• "We had a good operating performance in Pulp and Paper, particularly during our annual maintenance outages, resulting in strong productivity and lower costs. Our paper shipments are also trending better than forecast due to better demand and lower imports and we continue to position the company to capitalize on opportunities in our key markets."

7:33 am Heartland Payment Systems beats by $0.03, beats on revs; guides FY15 EPS above consensus, revs above consensus (HPY) :

• Reports Q3 (Sep) earnings of $0.79 per share, $0.03 better than the Capital IQ Consensus of $0.76; revenues rose 26.7% year/year to $214.6 mln vs the $206.12 mln Capital IQ Consensus.
• Co issues upside guidance for FY15, sees EPS of $2.86-2.89, excluding non-recurring items, vs. $2.85 Capital IQ Consensus Estimate; sees FY15 revs of $810-815 mln vs. $805.85 mln Capital IQ Consensus Estimate.

7:32 am Rockwell Collins misses by $0.02, misses on revs; guides FY16 EPS in-line, revs in-line (COL) :

• Reports Q4 (Sep) earnings of $1.38 per share, $0.02 worse than the Capital IQ Consensus of $1.40; revenues fell 1.6% year/year to $1.38 bln vs the $1.41 bln Capital IQ Consensus.
• Co issues in-line guidance for FY16, sees EPS of $5.20-5.40 vs. $5.37 Capital IQ Consensus Estimate; sees FY16 revs of $5.3-5.4 bln vs. $5.37 bln Capital IQ Consensus Estimate.
• Co CEO commented: "As we enter fiscal year 2016, we are sharply focused on meeting our commitments to our customers, including executing on a number of important development programs that are expected to drive growth over the balance of the decade. While growth in 2016 will be muted particularly in the first half of the fiscal year, I remain confident our strategies will drive long-term double-digit growth in earnings and cash flow."

7:32 am Heartland Payment Systems acquires privately held, point-of-sale systems provider Digital Dining; terms not disclosed (HPY) :  

7:31 am IMAX and 21st Century Fox (FOXA) enter long-term, multi-picture agreement (IMAX) :

Co and Twentieth Century Fox, a division of 21st Century Fox (FOX), jointly announced the companies have entered into a long-term, multi-picture agreement.

• Some of the bigger movies that this deal includes: Deadpool, Independence Day Resurgence, Maze Runner: The Death Cure and the studio's untitled Wolverine project.

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

• Mallinckrodt's (MNK) INOmax has been approved in Australia And Japan for pulmonary hypertension in conjunction w/ heart surgery
• Ritchie Bros (RBA) announced that it sold $104 million of heavy equipment and trucks at its unreserved public auction in Edmonton
• Isis Pharmaceuticals (ISIS) announced the initiation of a Phase 2 study evaluating ISIS-FXIRx in patients with end-stage renal disease (:ESRD) on hemodialysis. The Phase 2 study is intended to further characterize the profile of ISIS-FXIRx and will provide essential data for Bayer's future clinical development program for ISIS-FXIRx. Upon completion of the study and advancement of the program by Bayer, Isis will be eligible to receive a $55 million payment
• China Cord Blood Corporation (CO) announced that the Company's Guangdong subsidiary, Guangdong Cord Blood Bank, was accredited by American Association of Blood Banks

7:25 am Investors Bancorp beat by $0.01 (ISBC) :

• Reports Q3 (Sep) earnings of $0.14 per share, $0.01 better than the Capital IQ Consensus of $0.13. 
• Net loans increased $1.27 billion, or 8.5%, to $16.15 billion at September 30, 2015 from $14.89 billion at Dec 31, 2014.
• Net interest margin for the three months ended September 30, 2015 was 3.14% which was consistent with the quarter ended June 30, 2015. Net interest margin decreased 13 basis points compared to the quarter ended September 30, 2014.

7:20 am First Data prices an offering of $3.4 bln aggregate principal amount of 7.000% senior notes due 2023 (FDC) :  

7:18 am Brasil Foods S.A. reports Q3 results (BRFS) :

• Net Operating Revenues of R$8.3 billion, 14.4% higher than in 3Q14.
• EBITDA of R$1.5 billion, 34.8% above 3Q14, and EBITDA margin of 18.4% compared with 15.6% in 3Q14 and 17.4% in 2Q15.
• Net Income of R$877 million, 53.3% higher on an annual comparison and 140.7% higher on a quarterly comparison, with a net margin of 10.6%.

7:17 am Aaron's misses by $0.09, beats on revs; guides FY15 EPS below consensus (AAN) :

• Reports Q3 (Sep) earnings of $0.39 per share, $0.09 worse than the Capital IQ Consensus of $0.48; revenues rose 14.2% year/year to $797.7 mln vs the $779.66 mln Capital IQ Consensus.
• Co issues downside guidance for FY15, sees EPS of $2.02-2.22 vs. $2.32 Capital IQ Consensus Estimate, down from previous guidance of $2.16-2.36. Sees EBITDA in the range of $308-328 mln compared with the previous guidance of $325-350 mln. No change is being made to previously provided revenue or EBITDA guidance for the core segment.

7:15 am Asian Markets Close: Japan's Nikkei +0.8%; Hong Kong's Hang Seng -0.8%; China's Shanghai Composite -0.1% (:SUMRX) :

Markets in the Asia-Pacific region ended Friday mostly lower. Japan (+0.8%) was the notable exception, setting aside some early disappointment over some weak CPI and household spending data and the decision by the Bank of Japan to leave its monetary policy unchanged. A report suggesting the government might introduce some fiscal stimulus with a supplementary budget helped bolster investor sentiment. Separately, the yuan made its biggest gain since 2005 on reports the PBOC is considering a reduction in capital controls in the Shanghai free trade zone.

Economic data

• Japan
  • Bank of Japan leaves uncollateralized overnight call rate unchanged at 0.10%, as expected, and maintains size of asset purchase program September
  • Household Spending -1.3% month-over-month (expected +0.3%; prior +2.5%); -0.4% year-over-year (expected +1.2%; prior +2.9%)
  • September National CPI 0.0% year-over-year (expected +0.1%; prior +0.2%)
    • October Tokyo CPI +0.1% year-over-year (expected 0.0%; prior -0.1%)
  • September National Core CPI -0.1% year-over-year (expected -0.2%; prior -0.1%)
    • October Tokyo Core CPI -0.2% (expected -0.1%; prior -0.2%)
  • September Unemployment Rate 3.4% (expected 3.4%; prior 3.4%)
  • September Housing Starts +2.6% year-over-year (expected +6.6%; prior +8.8%)
  • September Construction Orders +6.7% year-over-year (prior -15.6%)
• Australia
  • Q3 PPI +0.9% quarter-over-quarter (prior +0.3%); +1.7% year-over-year (prior +1.1%)
  • September Housing Credit +0.6% (prior +0.6%)
  • September Private Sector Credit +0.8% month-over-month (expected +0.5%; prior +0.6%)
• South Korea
  • September Industrial Production +1.9% month-over-month (expected +0.4%; prior +0.2%); +2.4% year-over-year (expected +0.6%; prior +0.1%)
  • Retail Sales +0.5% month-over-month (prior +2.1%)
• Singapore
  • Q4 Business Expectations -16.0 (prior +2.0)
• New Zealand
  • October ANZ Business Confidence +10.5% (expected -10.0%; prior -18.9%)

Equity Markets

• Japan's Nikkei increased 0.8%. The Nikkei had been modestly lower earlier in the day in the wake of the Bank of Japan's decision to leave its monetary policy unchanged and some unsatisfying CPI and household spending data. It rallied back in the afternoon, however, amid media reports the government might introduce a supplementary budget in excess of JPY 3 trln with some emphasis on improving urban infrastructure. Gains were led by the health care (+2.9%), consumer discretionary (+1.5%), and consumer staples (+1.5%) sectors. The top-performing issues were Tokuyama (+11.9%), Shionogi (+11.4%), and Nichirei (+6.6%). The biggest laggards were GS Yuasa (-11.2%), Konica Minolta (-9.5%), and Mitsui Engineering & Shipbuilding (-8.8%). Out of the 225 index members, 163 ended higher, 56 finished lower, and 6 were unchanged. For the week the Nikkei gained 1.4%.
  
  
• Hong Kong's Hang Seng declined 0.8% and finished at its lows in a seesaw session. Trading in the afternoon was accented by a steady downtrend in the market, with losses in the financial and energy groups weighing. AIA Group (-3.0%), China Life Insurance (-2.3%), and Sands China (-2.3%) were the worst-performing issues while China Mengniu Dairy (+3.4%), Li & Fung (+3.3%), and Lenovo Group (+2.3%) topped the list of winners. Out of the 50 index members, 14 ended higher, 33 finished lower, and 3 were unchanged. For the week the Hang Seng declined 2.2%.
  
  
• China's Shanghai Composite declined 0.1% after being down 1.2% shortly after the start of trading. Participants bought the dip, although some selling pressure emerged in the final hour to tip the market back into negative territory. Separately, the yuan had its biggest move against the dollar since 2005 on reports the PBOC is entertaining a reduction in capital controls in the Shanghai free trade zone. For the week the Shanghai 'A' Shares declined 0.9% while the Shanghai 'B' shares increased 2.1%.
  
  
• India's Sensex declined 0.7% and ended near its lows for the day with selling interest picking up in the afternoon trade. The losses were paced by the industrials (-4.0%), materials (-1.7%), and consumer staples (-1.4%) sectors. Vedanta (-6.7%), ITC (-4.4%), and Larsen & Toubro (-4.1%) led individual decliners while NTPC Ltd (+3.8%), ICICI Bank (+2.0%), and Dr Reddy's Laboratories (+1.4%) led individual winners. Out of the 30 index members, 10 ended higher and 20 finished lower. For the week the Sensex declined 3.0%.
  
  
• Australia's S&P/ASX 200 declined 0.5%, but pared an earlier loss that had it down 1.2%. The weakest links in Friday's trade were the gold (-2.8%), metals & mining (-2.0%), and consumer staples (-1.8%) sectors. Out of the 200 index members, 115 ended higher, 71 finished lower, and 14 were unchanged. For the week the S&P/ASX 200 declined 2.1%.
  
  
• Regional advancers: Thailand +0.2%, Vietnam +0.4%
• Regional decliners: South Korea -0.2%, Taiwan -0.2%, Malaysia -0.1%, Indonesia -0.4%, Singapore -0.1%, Philippines -0.8%

FX

• USD/CNY -0.6% at 6.3174
• USD/INR +0.05% at 65.3350
• USD/JPY -0.6% at 120.36

7:11 am Valero Energy Partners beats by $0.01, misses on revs (VLP) :

• Reports Q3 (Sep) earnings of $0.51 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.50; revenues rose 84.0% year/year to $62 mln vs the $62.94 mln Capital IQ Consensus.

7:11 am KCG Holdings beats by $0.04, beats on revs (KCG) :

• Reports Q3 (Sep) earnings of $0.24 per share, $0.04 better than the Capital IQ Consensus of $0.20; revenues rose 38.5% year/year to $377 mln vs the $350.1 mln single analyst estimate.
• Market making set a new quarterly high for exchange-listed U.S. equity share volume and gained approximately two percentage points in market share of retail SEC Rule 605 U.S. equity share volume from the second quarter 2015. Average daily algorithmic execution U.S. equity share volume attributable to institutional clients grew quarter over quarter and year over year.
• "Algorithmic execution on behalf of clients as well as high-touch sales trading performed well given the heightened institutional trading activity in U.S. equities. Algorithmic execution continued to onboard new institutional clients and generate additive trade volumes and revenues. During the quarter, 13 institutional clients began using KCG algorithms and we onboarded an additional 12 new institutional investors as clients. Algorithmic execution volume from institutional clients rose 7 percent quarter over quarter and 30 percent year over year."

7:11 am Mylan Labs beats by $0.06, misses on revs; sees FY15 EPS at high end of range (MYL) :

• Reports Q3 (Sep) earnings of $1.43 per share, $0.06 better than the Capital IQ Consensus of $1.37; revenues rose 30.1% year/year to $2.71 bln vs the $2.79 bln Capital IQ Consensus, up 36% on a constant currency basis versus the prior year period. GAAP total revenues of $2.70 billion. Excluding the impact of the acquisition of Abbott's non-U.S. developed markets specialty and branded generics business ("EPD Business"), adjusted total revenues increased 14% on a constant currency basis, reflecting the continued strength in our legacy business.
• Co issues guidance for FY15, sees EPS at high end of prior $4.15-4.35 range vs. $4.21 Capital IQ Consensus Estimate.  
• Mylan remains steadfastly committed to our value-creating offer for Perrigo (PRGO).

7:10 am Monotype Imaging beats by $0.07, beats on revs; guides Q4 EPS above consensus, revs in-line (TYPE) :

• Reports Q3 (Sep) earnings of $0.31 per share, $0.07 better than the Capital IQ Consensus of $0.24; revenues rose 4.9% year/year to $49.35 mln vs the $48.27 mln Capital IQ Consensus.
• Co issues guidance for Q4, sees EPS of $0.29-0.33 vs. $0.29 Capital IQ Consensus Estimate; sees Q4 revs of $48-50.5 mln vs. $49.94 mln Capital IQ Consensus Estimate.
• The company also raised its FY15 outlook, based upon this quarter's strong results

7:09 am Phillips 66 Partners beats by $0.05, reports revs in-line; co increased quarterly distribution by 7% to $0.428/common unit (PSXP) :

• Reports Q3 (Sep) earnings of $0.50 per share, $0.05 better than the Capital IQ Consensus of $0.45; revenues rose 76.8% year/year to $94.4 mln vs the $95.15 mln Capital IQ Consensus
• Total revenues and other income for the third quarter of 2015 were $91.4 million, an increase of $7.6 million from the second quarter of 2015.
• The increase was due to improved equity earnings from the Explorer and Sand Hills pipelines, as well as higher volumes in the Sweeny to Pasadena Products System and Clifton Ridge Crude System.
• The Eagle Ford Gathering System also experienced an increase in volumes driven by the commencement of its second phase in September.

Strategic update:

• The partnership continues to make progress on its organic growth projects. In September, the second phase of the Eagle Ford Gathering System commenced operations.
• The partnership also continued to develop the Cross-Channel Connector Products System with the final third-party connection expected in November 2015.

7:08 am Legg Mason misses by $0.10, misses on revs (LM) :

• Reports Q2 (Sep) earnings of $0.89 per share, $0.10 worse than the two analyst estimate of $0.99; revenues fell 5.0% year/year to $673.1 mln vs the $694.03 mln Capital IQ Consensus. 
• Operating margin was 19.8%, as compared to 17.6% in the prior quarter. Operating margin, as adjusted, was 24.0%, as compared to 22.6% in the prior quarter.

Assets Under Management 

• AUM decreased 4% to $672.1 billion at September 30, 2015 compared with $699.2 billion at June 30, 2015, driven by $22.6 billion in negative market performance, $4.6 billion in negative foreign exchange and liquidity outflows of $3.0 billion. This was partially offset by long-term net inflows of $3.1 billion. AUM was down 5% from $707.8 billion at September 30, 2014.
• Long-term net inflows of $3.1 billion included fixed income inflows of $3.0 billion and equity inflows of $0.1 billion.
• At September 30, 2015, fixed income represented 55% of AUM, while equity represented 26%, and liquidity represented 19%.
• By geography, 64% of AUM was from clients domiciled in the United States and 36% from non-US domiciled clients.

7:08 am Lifepoint Hospitals beats by $0.04, beats on revs (LPNT) :

• Reports Q3 (Sep) earnings of $0.94 per share, including impairment charges, $0.04 better than the Capital IQ Consensus of $0.90; revenues rose 12.3% year/year to $1.31 bln vs the $1.3 bln Capital IQ Consensus.
• "We are excited about our acquisition strategy and the opportunity to expand margins in recently acquired hospitals. This and the significant capacity available in our balance sheet are among the factors that will allow us to continue driving shareholder value."  

7:06 am Moody's beats by $0.04, misses on revs; reaffirms FY15 EPS guidance (MCO) :

• Reports Q3 (Sep) earnings of $1.11 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $1.07; revenues rose 2.3% year/year to $834.9 mln vs the $847.01 mln Capital IQ Consensus.
• Co reaffirms guidance for FY15, sees EPS of $4.55-4.65 vs. $4.61 Capital IQ Consensus Estimate. FY15 Global MIS revenue is still expected to increase in the mid-single-digit percent range. However, non-US revenue is now expected to decline in the mid-single-digit percent range.
• Global revenue for Moody's Investors Service for Q3 was $548.1 million, flat versus the prior year period, but up 5% on a constant currency basis.

7:06 am Phillips 66 beats by $0.78; adds $2 bln to buyback (PSX) :

• Reports Q3 (Sep) earnings of $3.02 per share, $0.78 better than the Capital IQ Consensus of $2.24. 
• "Our best quarterly earnings this year were driven by stronger results from Refining and Marketing. Higher refining capacity utilization and product margins increased financial results for these businesses," said Greg Garland, Chairman and CEO. "In addition, we announced our 2016 capital budget and a $2 billion increase to the company's share repurchase program, which reflects our commitment to disciplined capital allocation."

7:05 am Galena Biopharma names Bijan Nejadnik, M.D. as Chief Medical Officer effective immediately (GALE) : Nejadnik joins Galena from Jazz Pharmaceuticals (JAZZ) where he was the Executive Director, Hematology-Oncology and led the clinical team towards a recently filed NDA.

7:05 am Moneygram beats by $0.02, beats on revs; co appoints Lawrence Angelilli as CFO (MGI) :

• Reports Q3 (Sep) earnings of $0.24 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.22; revenues rose 3.0% year/year to $368.6 mln vs the $361.83 mln Capital IQ Consensus
• Self-service money transfer transactions increase 71%
• Money transfer constant currency revenue up 9%, total Company constant currency revenue up 8%
• MoneyGram returns to positive adjusted free cash flow
  
• The Company's outlook for 2015 is unchanged. For the full year 2015, the Company estimates approximately flat constant currency revenue growth. For Adjusted EBITDA, the Company estimates a decline of ~8% to 12% on a constant currency basis for the full year 2015
• In other news, co announced that Lawrence Angelilli has been named executive vice president and chief financial officer, effective Jan. 1, 2016. Angelilli succeeds W. Alexander Holmes, who will assume MoneyGram's chief executive role on the same date.

7:04 am WisdomTree reports EPS in-line, beats on revs; declared $0.25 special dividend (WETF) :

• Reports Q3 (Sep) earnings of $0.17 per share, in-line with the Capital IQ Consensus of $0.17; revenues rose 71.5% year/year to $80.8 mln vs the $79.07 mln Capital IQ Consensus.
• U.S. listed ETF assets under management ("AUM") was $53.0 billion at the end of the third quarter, up 35.0% for the year and up 48.1% from the third quarter of last year primarily due to record net inflows. However, AUM declined 13.5% from the end of the second quarter of this year due to $7.6 billion of negative market movement as well as $0.7 billion of net outflows, primarily in our emerging market ETFs.
• Co also declared a special cash dividend of $0.25 per share of the Company's common stock.

7:04 am Ruth's Hospitality Group beats by $0.01, reports revs in-line (RUTH) :

• Reports Q3 (Sep) earnings of $0.08 per share, $0.01 better than the Capital IQ Consensus of $0.07; revenues rose 8.8% year/year to $80.3 mln vs the $80 mln Capital IQ Consensus. 
• Company-owned comparable restaurant sales increased 3.3%, which consisted of an average check increase of 3.8%, partially offset by a traffic decrease of 0.5%.
• Co updated FY15 expense guidance.

7:02 am Oasmia Pharmaceutical reports a second order for Paclical, valued at $7.5 mln (OASM) : Co announced that its distribution partner in Russia and the Commonwealth of Independent States, CIS, Pharmasyntez, has placed its second order for Paclical, Oasmia's lead cancer product for an end user sale value of $7.5 million. 

7:01 am AbbVie beats by $0.05, reports revs in-line; raises FY15 EPS slightly; guides FY16 EPS in-line; sees $37 bln in sales in 2020 with double digit EPS CAGR (ABBV) :

• Reports Q3 (Sep) earnings of $1.13 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $1.08; revenues rose 18.4% year/year to $5.94 bln vs the $5.89 bln Capital IQ Consensus. 
  • On an operational basis, sales increased 26.2 percent, excluding a 7.8 percent unfavorable impact from foreign exchange rate fluctuations. Third-quarter sales growth was driven by the continued strength of HUMIRA and other promoted products.
  • Global HUMIRA sales increased 19.6 percent on an operational basis, or 12.1 percent including the impact of foreign exchange rate fluctuations. Strong U.S. HUMIRA growth of 30.4 percent was driven by continued momentum across all three major market categories, rheumatology, dermatology and gastroenterology.
• Co issues upside guidance for FY15, sees EPS of $4.26-4.28, excluding non-recurring items, vs. $4.24 Capital IQ Consensus Estimate.
• Co issues in-line guidance for FY16, sees EPS of $4.90-5.10, excluding non-recurring items, vs. $4.95 Capital IQ Consensus Estimate. 
• Board declared an increase in the company's quarterly cash dividend 12% from $0.51 per share to $0.57 per share beginning with the dividend payable on February 16, 2016 to shareholders of record as of January 15, 2016
• Company expects to deliver double-digit adjusted earnings-per-share (eps) growth on average through 2020
• Based on continued strong performance from its existing portfolio of on-market products, including its flagship brands HUMIRA and IMBRUVICA, as well as growth from pipeline products, the company is providing guidance for total company sales of ~$37 billion in 2020. This reflects roughly 10 percent sales growth, on average, over the five year period.
  • This guidance includes estimated global HUMIRA sales of more than $18 billion in 2020, which the co believes appropriately captures the expected biosimilar dynamics globally. Additionally, the co is projecting its IMBRUVICA revenue will reach ~$5 billion in 2020, driven by continued growth within the hematologic oncology market. Through internal research and development efforts and strategic licensing and acquisition activities, the company has built a robust pipeline of medicines, with the potential to deliver nearly $30 billion in nominal sales by 2024 (excluding new HUMIRA indications, new IMBRUVICA indications and next-generation HCV, which are considered on-market products for this calculation). The co is on track to launch more than 20 new products or indications through 2020, including seven approvals that will contribute in 2016 and beyond. 

7:01 am Columbus McKinnon misses by $0.02, beats on revs (CMCO) :

• Reports Q2 (Sep) earnings of $0.40 per share, $0.02 worse than the Capital IQ Consensus of $0.42; revenues fell 0.7% year/year to $146 mln vs the $143.63 mln Capital IQ Consensus.
• Backlog was $110.8 million at September 30, 2015, which includes $18.1 million for Magnetek. This compares with backlog of $84.9 million at June 30, 2015. Backlog that represents longer-lead time project orders was $46.8 million, or 42% of total backlog. These projects are scheduled for shipment beyond December 31, 2015 and compares with project backlog of $32.4 million at June 30, 2015. The increase in project backlog was due to projects won in EMEA as well as the impact of Magnetek project backlog. Backlog is not necessarily a leading indicator of sales for the Company.

7:00 am Prima Biomed raises AUD $2 million via an equity placement at A$0.05 per ordinary (PBMD) : Proceeds will be used to fund Prima's IMP321 clinical trial program and provide additional working capital that will fund the Company's operations into 2017

7:00 am Moko Social Media priced its 1.5 mln underwritten ADR offering at $1.70/share (MOKO) : The gross proceeds are expected to be ~$2.55 mln before deducting underwriting discounts and commissions and other estimated offering expenses.

6:58 am ITT Industries beats by $0.04, reports revs in-line; reaffirms FY15 EPS guidance (ITT) :

• Reports Q3 (Sep) earnings of $0.63 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.59; revenues fell 8.4% year/year to $601.9 mln vs the $607.69 mln Capital IQ Consensus.
• Co reaffirms guidance for FY15, sees EPS of $2.45-2.55, excluding non-recurring items, vs. $2.52 Capital IQ Consensus Estimate.
• Organic revenue decreased 1%, reflecting strength in industrial project pumps and short-cycle baseline pumps and valves, due to solid backlog entering the year.

6:58 am Colgate-Palmolive beats by $0.08, misses on revs; gives outlook for 2016 (CL) :

• Reports Q3 (Sep) earnings of $0.80 per share, $0.08 better than the Capital IQ Consensus of $0.72; revenues fell 8.7% year/year to $4 bln vs the $4.07 bln Capital IQ Consensus.
• "As we look ahead, macroeconomic conditions and foreign exchange volatility remain challenging. Despite that, we anticipate another year of solid organic sales growth in 2015 driven by a full new product pipeline across all categories and geographies. Based on current spot rates, we now plan for full year gross profit margin to be even with the year ago level, and expect a low to mid-single-digit earnings per share decline on a dollar basis, excluding charges related to the 2012 Restructuring Program. This earnings per share decline continues to reflect a double-digit increase on a currency-neutral basis."
• "Looking ahead to 2016, we continue to see deterioration in foreign exchange rates. Given such volatility, providing guidance on a dollar basis at this time would be premature."
• Expects 2016 to be a year of gross margin expansion and double-digit earnings per share growth on a currency-neutral basis, excluding charges related to the 2012 Restructuring Program."

6:55 am CVS Health reports EPS in-line, beats on revs; guides FY15 EPS in-line; guides FY16 EPS below consensus (CVS) :

• Reports Q3 (Sep) earnings of $1.29 per share, in-line with the Capital IQ Consensus of $1.29; revenues rose 10.3% year/year to $38.64 bln vs the $37.9 bln Capital IQ Consensus.
• Co raises low end of guidance range for FY15, sees EPS of $5.14-5.18 vs. $5.16 Capital IQ Consensus Estimate (prior range $5.11-5.18). Reaffirms expectation for 2015 free cash flow of $5.9 billion to $6.2 billion, and 2015 cash flow from operations of $7.6 billion to $7.9 billion.
• Co issues downside guidance for FY16, sees EPS of $5.68-5.88 vs. $5.96 Capital IQ Consensus Estimate. This range is in line with the five-year growth targets the Company provided at its Analyst Day in December of 2013 for the years 2013 through 2018.

6:50 am Nokia and China Mobile (CHL) agree to to a $1 bln contract for mobile communications equipment and services (NOK) :

Nokia Networks and China Mobile (CHL) have announced a comprehensive framework agreement for mobile communications equipment and services valued at more than $1 bln (EUR930 million).

• Deliveries under the agreement commenced in Q1 2015, and will continue in 2016
• Framework agreement includes Nokia Networks 4G TD-LTE technology and wireless network equipment, core solutions, software and services

6:46 am Mylan Labs reports that a US district court has denied Perrigo's (PRGO) motion for a preliminary injunction, concerning a possible acquisition (MYL) :

Co announces that the U.S. District Court for the Southern District of New York has denied the motion by Perrigo Company plc (PRGO) for a preliminary injunction concerning co's proposed acquisition of Perrigo, ruling that co had provided adequate public disclosures regarding the synergies expected to be achieved from the combination.

• The court also ruled that co's disclosures regarding its intention to de-list Perrigo from the NYSE and the TASE as soon as practicable following the consummation of the offer were appropriate.

6:39 am Steris beats by $0.07, reports revs in-line; reaffirms FY16 guidance (STE) :

• Reports Q2 (Sep) earnings of $0.83 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.76; revenues rose 5.9% year/year to $489.9 mln vs the $487.8 mln Capital IQ Consensus; FX headwind 2%.
• Co reaffirms guidance for FY16, sees EPS of $3.15-3.30, excluding non-recurring items, vs. $3.26 Capital IQ Consensus Estimate; sees FY16 revs of +6-7% to ~$1.96-1.98 bln vs. $2 bln Capital IQ Consensus Estimate. 
• The Synergy Health acquisition is anticipated to close on Monday, November 2, 2015. STERIS plans to provide an outlook inclusive of Synergy Health as soon as practical.

6:39 am Progessive Waste beats by $0.07, reports revs in-line; reaffirms FY15 revs guidance (BIN) :

• Reports Q3 (Sep) earnings of $0.36 per share, $0.07 better than the Capital IQ Consensus of $0.29; revenues fell 6.3% year/year to $488.5 mln vs the $489.3 mln Capital IQ Consensus.
• Co reaffirms rev guidance for FY15 and lowers EPS guidance, sees EPS of $1.18-1.22 vs. $1.11 Capital IQ Consensus Estimate, down from prior guidance of $1.20-1.34; sees FY15 revs of $1.925-1.945 bln vs. $1.93 bln Capital IQ Consensus Estimate.

6:36 am PNM Resources beats by $0.01, reports revs in-line; narrows FY15 EPS in-line (PNM) :

• Reports Q3 (Sep) earnings of $0.76 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.75; revenues rose 0.8% year/year to $417.4 mln vs the $417 mln single analyst estimate.
• Co issues in-line guidance for FY15, sees EPS of $1.56-1.61 from $1.50-1.62, excluding non-recurring items, vs. $1.57 Capital IQ Consensus Estimate.

6:35 am Buckeye Partners misses by $0.13, misses on revs (BPL) :

• Reports Q3 (Sep) earnings of $0.78 per share, $0.13 worse than the Capital IQ Consensus of $0.91; revenues fell 53.7% year/year to $728.4 mln vs the $1.12 bln Capital IQ Consensus.
• "We are pleased to report that our 1.1 million barrels of refrigerated LPG storage capacity at our BTP facility in South Texas is now in-service. In addition, we are nearing completion of the commissioning phase for our 50,000 barrel per day splitter facility. We believe both will contribute substantial additional cash flows in the fourth quarter."

6:33 am Aon reports EPS in-line, misses on revs (AON) :

• Reports Q3 (Sep) earnings of $1.24 per share, in-line with the Capital IQ Consensus of $1.24; revenues fell 5.0% year/year to $2.74 bln vs the $2.85 bln Capital IQ Consensus.

6:33 am Eaton misses by $0.01, misses on revs; guides Q4 EPS in-line; expands restructuring (ETN) :

• Reports Q3 (Sep) earnings of $0.97 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.98; revenues fell 9.2% year/year to $5.2 bln vs the $5.32 bln Capital IQ Consensus.
  • The sales decline consisted of 6 percent from negative currency translation and 3 percent from a decline in organic sales.
• Co issues in-line guidance for Q4, sees EPS of $1.10-1.15, excluding non-recurring items, vs. $1.12 Capital IQ Consensus Estimate. 
  • "As we begin to plan for 2016, it is apparent that markets are likely to remain soft," said Cutler. "To deal with such weak markets, we will be expanding our 2016 restructuring program. We had been planning on this second restructuring program, in addition to the $145 million program we announced in the second quarter of 2015, to be on the order of $50 million to $60 million, but in light of current market weakness we are expanding the program to between $90 million and $100 million."

6:32 am First Niagara to be acquired by KeyCorp (KEY) for $11.40/share, or ~$4.1 bln (FNFG) :

KeyCorp (KEY) and First Niagara Financial Group announced that they have entered into a definitive agreement under which KeyCorp will acquire First Niagara in a cash and stock transaction for total consideration valued at approximately $4.1 billion.

• Under the terms of the agreement, which was unanimously approved by the Boards of Directors of each company, the merger consideration will be approximately $4.1 billion.  First Niagara shareholders will receive 0.68 KeyCorp shares and $2.30 in cash for each First Niagara common share.  The per share consideration is valued at $11.40 per share based on the closing price of KeyCorp common stock on October 29, 2015.  In conjunction with the closing of the transaction, three members of the First Niagara Board of Directors are expected to join the KeyCorp Board, which will be expanded accordingly. 
• The acquisition diversifies KeyCorp's loan portfolio, strengthens its core retail deposit franchise and provides expanded scale.  Upon completion of the transaction, the combined company will have approximately $99.8 billion in deposits, $83.6 billion in loans and 1,366 branches across 15 states.  The combined company will have approximately $135 billion of pro forma assets providing increased operating leverage to deliver improved financial performance.
• KeyCorp expects the acquisition to be accretive to earnings per share in 2017, excluding one-time charges, and expects the transaction to deliver an attractive Internal Rate of Return of approximately 15%.

The announcement confirms a WSJ article yesterday that the two were in advanced talks.

6:30 am On The Wires (:WIRES) :

• Violin Memory (VMEM) announced that a major online retailer of consumer electronics has deployed the Violin 7300 Flash Storage Platform to improve its online transaction processing, critical to maintaining rapid, reliable and secure responsiveness to its customers worldwide.
• Petrobras (PBR) announces the proposed terms for the signature of new amendments to the naphtha supply agreements to Braskem (BAK), allowing supply to continue during negotiations for a long-term contract. Petrobras has been negotiating with Braskem for more than two years, seeking a balanced and equitable solution for both companies.
• Xueda Education Group (XUE) announced that it has called an extraordinary general meeting of shareholders, to be held on December 16, 2015 at 10:00 a.m. . The meeting will be held to consider and vote on, among other things, a proposal to authorize and approve the previously announced agreement and plan of merger dated July 26, 2015 by and among the Company, Xiamen Insight Investment Co., and Xueda Acquisition Limited, the plan of merger required to be filed with the Registrar of Companies of the Cayman Islands and the transactions contemplated by the merger agreement, including the merger

6:20 am Iron Mountain beats by $0.05, misses on revs; reaffirms FY15 FFO guidance, revs guidance; guides FY16 FFO in-line, revs above consensus (IRM) :

• Reports Q3 (Sep) funds from operations of $0.55 per share, $0.05 better than the two analyst estimate of $0.50; revenues fell 4.6% year/year to $746.5 mln vs the $761.37 mln Capital IQ Consensus; +2% ex-FX; storage rental +.2%, service rev -1.3%.
• Co reaffirms guidance for FY15, sees FFO of $2.00-2.20 vs. $2.01 Capital IQ Consensus Estimate; sees FY15 revs of $3.0-3.06 bln vs. $3.04 bln Capital IQ Consensus Estimate.
• Co issues guidance for FY16, sees FFO of $2.15-2.45 vs. $2.25 Capital IQ Consensus Estimate; sees FY16 revs of $3.165-3.265 vs. $3.14 bln Capital IQ Consensus Estimate.

6:18 am Pengrowth Energy receives non-compliance notice from the NYSE relating to its stock being under the $1.00 requirement (PGH) : Under the NYSE's rules, Pengrowth has a period of six months from the date of the NYSE notification to regain compliance with the NYSE's price listing standard and avoid delisting.

6:16 am Greenbrier beats by $0.24, misses on revs; guides FY16 EPS in-line, revs above consensus; authorizes $100 mln increase to share repurchase program; increases quarterly div 33% (GBX) :

• Reports Q4 (Aug) earnings of $2.02 per share, $0.24 better than the Capital IQ Consensus of $1.78; revenues rose 23.8% year/year to $765.5 mln vs the $815.76 mln Capital IQ Consensus. Q4 New railcar deliveries totaled 6,200 units for the quarter vs 5,700 units last year,
• Co issues guidance for FY16, sees EPS of $5.65-6.15 vs. $6.01 Capital IQ Consensus Estimate; sees FY16 revs of $2.8 bln vs. $2.72 bln Capital IQ Consensus Estimate. Co sees FY16 deliveries between 22.0-22.5K.
• Board authorizes $100 mln increase to share repurchase program, bringing cumulative repurchase authorizations to $225 million since October 31, 2013. Quarterly dividend increases 33% to $0.20/share.
• Co also announces that William Furman, Chairman and CEO intends to make certain sales of common stock of the Company in accordance with the Company's policies regarding stock transactions, which may include future sales pursuant to a pre-arranged stock trading plan.
  

6:16 am Anheuser-Busch InBev misses by $0.24, misses on revs; expects FY15 revenue per hl will grow ahead of inflation due to higher than expected premium brand volumes (BUD) :

• Reports Q3 (Sep) earnings of $1.02 per share, $0.24 worse than the Capital IQ Consensus of $1.26; revenues fell 7.1% year/year to $11.38 bln vs the $11.54 bln Capital IQ Consensus.
  • Revenue grew by 7.9% organically in 3Q15, with solid revenue per hl growth of 6.3%, driven by revenue management and premiumization initiatives. On a constant geographic basis, revenue per hl grew by 7.8%. I
  • Volume: Total volumes grew by 1.5% in 3Q15, with own beer volumes up 2.3%, and non-beer volumes down 6.1%. The growth in beer volumes was driven mainly by strong performances in Mexico and Latin America North, as well as an easier comparable in the US.
• Outlook: Co is amending guidance.
  • Co's previous guidance was for revenue per hl to grow organically in line with inflation, on a constant geographic basis, as a result of revenue management initiatives and continued improvements in mix.
  • Co now expects revenue per hl will grow ahead of inflation due to higher than expected premium brand volumes
• Proposed combination with SABMiller: On 13 October 2015, the boards of AB InBev and SABMiller announced that they had reached an agreement in principle on the key terms of a possible recommended offer to be made by AB InBev for the entire issued and to be issued share capital of SABMiller.
  • The board of SABMiller has indicated to AB InBev that it would be prepared unanimously to recommend the all-cash offer of GBP 44.00 per SABMiller share to SABMiller shareholders, subject to their fiduciary duties and satisfactory resolution of the other terms and conditions of the Possible Offer.

6:12 am Dorian LPG beats by $0.11, beats on revs (LPG) :

• Reports Q2 (Sep) earnings of $0.72 per share, $0.11 better than the Capital IQ Consensus of $0.61; revenues rose 267.2% year/year to $74.9 mln vs the $68.35 mln Capital IQ Consensus. 
• "Going forward, we anticipate higher profits and cash generated from operations as a result of our larger fleet, assuming continued favorable market conditions. We will continue to evaluate ways to best return that cash to our investors, underscoring the commitment of both the board and management to increasing shareholder value."

6:09 am Genesee & Wyoming beats by $0.06, reports revs in-line (GWR) :

• Reports Q3 (Sep) earnings of $1.09 per share, $0.06 better than the Capital IQ Consensus of $1.03; revenues rose 26.3% year/year to $546.3 mln vs the $550.02 mln Capital IQ Consensus. Excluding $4.0 million of revenues from new operations and a $5.0 million decrease due to the impact of foreign currency depreciation, North American Operations same railroad revenues decreased by $29.5 million, or 8.7%, primarily due to declines in coal and metals shipments.
• North American Operations traffic decreased 42,771 carloads, or 9.3%, to 419,571 carloads in the third quarter of 2015.
• Excluding 8,683 carloads from new operations, same railroad traffic decreased 51,454 carloads, or 11.1%. 
• "Our outlook for the second half of 2015 remains unchanged from August, with third quarter results stronger than planned and fourth quarter outlook expected to be weaker than planned. As we finish the year and look ahead to 2016, our management team is concentrated on optimizing the strong free cash flow that underpins the value of our 120 railroads. In addition, we continue to evaluate potential acquisitions and investments worldwide."

6:01 am WisdomTree to acquire GreenHaven Commodity Services for $11.75 mln (WETF) :

The co announced it entered into an agreement to acquire GreenHaven Commodity Services, LLC, the managing owner of the GreenHaven Continuous Commodity Index Fund (GCC), and GreenHaven Coal Services, LLC, the sponsor of the GreenHaven Coal Fund (TONS), from GreenHaven, LLC and GreenHaven Group, LLC, respectively.

• WisdomTree will retain GreenHaven Advisors, LLC as the sub-advisor to the funds to conduct portfolio management services. The transaction consideration is $11.75 million in cash. GCC has $247 million in assets under management and TONS has $1 million in assets under management, as of October 28, 2015.
• The financial impact of the transaction is not material to WisdomTree earnings per share.

6:01 am Theravance announces a modified dutch tender auction for $75 mln of its common stock, at a price between $8.50/share and $9.25/share, as part of its previously disclosed plan (THRX) : Co expects to fund the purchase of shares in the tender offer with existing cash and cash equivalents

5:48 am S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +11.80. :

5:48 am European Markets : FTSE...6388.14...-7.50...-0.10%.  DAX...10816.72...+15.90...+0.20%.

5:48 am Asian Markets : Nikkei...19083.10...+147.40...+0.80%.  Hang Seng...22640.04...-179.90...-0.80%.

5:48 am On The Wires (:WIRES) :

• Gilead Sciences (GILD) and WuXi PharmaTech (WX) announced that they have entered into a strategic partnership to conduct analytical and stability studies of small-molecule new chemical entities to support global marketing applications and commercial products. Under the agreement, WuXi will equip and operate a dedicated, fully cGMP-compliant 12,500-square-foot analytical testing facility in Shanghai.
• Delek Group's (DGRLY) gas subsidiaries announced that they have accepted a request by DEFA (a Governmental gas company owned by the Government of Cyprus) to postpone the period of validity of a proposal for the supply of natural gas from October 31, 2015 to December 18, 2015. The proposal is for the supply of natural gas through pipelines from the Leviathan project. Accordingly, the commercial examination process and the negotiation between DEFA and the bidders are expected to continue in the near future.
• Sasol (SSL) confirms that two of its three applications in Mozambique's 5th Licensing Round were successful. Sasol (70% interest, operator) and Empresa Nacional de Hidrocarbonetos, the state oil company (30% carried interest), were awarded the onshore Area PT5-C, which is 3,012 square kilometres, adjacent to the Pande and Temane fields.

5:45 am Asciano: Qube Holdings acquires 19.99% stake, says purchased the shares to decide on ownership of Asciano's Australian terminal assets (AANOF) :

Qube Holdings Limited announces that, with the support of two co-investors, Global Infrastructure Partners and Canada Pension Plan Investment Board, it has acquired an aggregate interest representing 19.99% of the shares in Asciano Limited. Qube has entered into this transaction to participate in deciding the ownership of Asciano's first class Australian terminal assets. It believes a strategic combination of Qube with the Patrick Containers Terminals business as well as a small number of assets in the bulk, automotive and general stevedoring businesses currently owned by Asciano has the potential to create significant value. Qube has no present interest in acquiring any of Asciano's businesses beyond the Patrick Businesses.

• In August, Brookfield Infrastructure (BIP) entered into an agreement to acquire Asciano for ~AUD 12 bln

5:00 am Valeant Pharma announces it will terminate its relationship with Philidor (VRX) :

The co announced that it is severing all ties with Philidor Rx Services, LLC, and that Philidor has informed Valeant that it will shut down operations as soon as possible, consistent with applicable laws.

• "The newest allegations about activities at Philidor raise additional questions about the company's business practices. We have lost confidence in Philidor's ability to continue to operate in a manner that is acceptable to Valeant and the patients and doctors we serve." 
• Valeant intends to develop a plan to ensure patients' access to drugs is minimally disrupted. Valeant has informed Philidor that to the extent that managed care plans will no longer reimburse prescriptions in process, Valeant will fill them at the company's expense.
• In Q3, Philidor represented 6.8% of total Valeant revenue.

4:24 am On The Wires (:WIRES) :

• MorphoSys AG announced that it has received a milestone payment from Bayer HealthCare (BAYRY) in connection with the initiation of a Phase 1 clinical trial of a HuCAL antibody in the field of bleeding disorders. The antibody targets the tissue factor pathway inhibitor, a major inhibitor of tissue factor-initiated blood clotting.
• Hutchison China MediTech (Pending IPO: HCM) announced its drug R&D subsidiary will present further scientific data on sulfatinib, fruquintinib and savolitinib at the International Conference on Molecular Targets and Cancer Therapeutics, which will be held in Boston, Massachusetts, USA from 5 to 9 November 2015. The co also announced has successfully completed its first-in-human Phase I clinical trial of HMPL-523. HMPL-523 is a novel, highly selective and potent small molecule inhibitor targeting spleen tyrosine kinase, also known as Syk, a key component in B-cell receptor signalling. The preliminary safety profile of HMPL-523 was in-line with our expectations.
• 3E Company, a Verisk Analytics (VRSK) business, and Airsweb announced a strategic alliance aimed at promoting seamless access to critical hazard communication documentation, substance-level regulatory content, and chemical regulatory data.
• Saint-Gobain (CODYY) has signed an agreement with In Group, a local building distribution player, to sell its businesses in the Czech Republic and Hungary. These businesses reported sales of 138 million in 2014. Following the 2013-2014 sale of its tiling operations in Slovakia, Poland and the Czech Republic along with the sale of Raab Karcher in Poland, the Building Distribution sector has completed the optimization of its portfolio in Eastern Europe.
• Fairfax Financial Holdings (FRFHF) announced that it has agreed with its joint venture partner, ICICI Bank Limited, to acquire an additional 9.0% of the issued and outstanding shares of ICICI Lombard General Insurance Company Limited. The proposed transaction values the Company at Rs. 17,225 crore ($2.6 billion), is subject to governmental and regulatory approvals and is expected to close in the first quarter of 2016.
• NorthWestern Energy (NWE) announced that the South Dakota Public Utility Commission has formally approved its stipulated settlement agreement with staff and intervening parties. The approval is the final step in the company's first general rate adjustment request in 34 years. Under the agreement, NorthWestern will be allowed to increase base rates by $20.2 million annually compared to the original request of $26.5 million and includes recovery for the recently acquired Beethoven wind project. 

4:21 am Eldorado Gold misses by $0.02, beats on revs, raises production guidance (EGO) :

Reports Q3 (Sep) loss of $0.01 per share, $0.02 worse than the Capital IQ Consensus of $0.01; revenues fell 19.7% year/year to $211.5 mln vs the $197.84 mln Capital IQ Consensus.

• Gold production for 2015 is forecast to be 710,000 ounces of gold with average cash costs for commercial production of $565 per ounce and all-in sustaining cash costs of $870 per ounce. Previous mid-year guidance was production of 690,000 ounces at average cash costs of $590 per ounce and all-in sustaining cash costs of $925 per ounce. Forecasted sustaining capital spending remains unchanged at $110.0 million. New project development capital spending is now forecast at $225.0 million, compared with previous guidance of $300.0 million. The forecast for new project development capital is lower than previous guidance mainly due to presently projected lower capital spending at Skouries.
• The company also announced that in light of the current gold price, and as a part of continued cost savings, it will implement a reduction in the base salary for its CEO, the Executive Team, and a reduction in the annual retainer fee for the Board effective November 1, 2015
• Regarding Greece: Activities recommenced in October after the Council of State -- Greece's Supreme Court on administrative and environmental matters -- issued an injunction against enforcement of the decision of the Ministry of Energy and Environment. This is an interim injunction which will be in effect pending the final decision of the Council of State in the proceedings in which the interim injunction was granted.

4:13 am Weyerhaeuser beats by $0.08, reports revs in-line (WY) :

• Reports Q3 (Sep) earnings of $0.35 per share, $0.08 better than the Capital IQ Consensus of $0.27; revenues fell 5.0% year/year to $1.82 bln vs the $1.84 bln Capital IQ Consensus.

Q4 Outlook

• Weyerhaeuser expects comparable earnings from the Timberlands segment in the fourth quarter. In the West, the company expects slightly higher fee harvest volumes and improved mix primarily due to increased shipments to Japan. In the South, the company anticipates comparable fee harvest volumes and higher logging costs.
• Weyerhaeuser expects significantly lower earnings from the Wood Products segment in the fourth quarter. The company anticipates seasonally lower sales volumes, reduced operating rates, and additional planned maintenance primarily in oriented strand board. The company also expects lower average sales realizations for lumber and higher average sales realizations for oriented strand board.
• Weyerhaeuser expects lower earnings from the Cellulose Fibers segment in the fourth quarter. The company anticipates lower average pulp sales realizations, increased scheduled maintenance, and seasonally higher fiber costs.

4:09 am UTStarcom expects Q3 revs ahead of prior guidance (UTSI) : The co announced that it expects Q3 revs of $25-27 mln vs $20.22 mln two analyst estimate and prior guidance for $18-22 mln. The company will host a conference call to discuss the Company's financial results for the third quarter 2015 before U.S. markets open on Monday, November 9, 2015.

4:06 am Arkansas Best misses by $0.06, reports revs in-line (ARCB) :

• Reports Q3 (Sep) earnings of $0.74 per share, $0.06 worse than the Capital IQ Consensus of $0.80; revenues fell 0.3% year/year to $709.38 mln vs the $712.01 mln Capital IQ Consensus.
• "While softer freight demand amid an increasingly sluggish economy impacted our third quarter results, revenue growth in our asset-light logistics businesses confirms that our customers find value in our expanded supply chain, moving and fleet maintenance offerings."

4:00 am Schneider Electric confirms it had sold its Juno Lighting unit to Acuity Brands (AYI) for ~$385 mln (SBGSY) : The transaction would generate a capital loss/ impairment of up to $300m (c. 270m). Such loss/impairment would be excluded from the basis of calculation for Schneider Electric's 2015 dividend.

3:58 am Celgene announces that the European Commission has approved VIDAZAfor the treatment of adult patients aged 65 years or older with acute myeloid leukaemia (CELG) : The co announced that the European Commission has approved VIDAZA for the treatment of adult patients aged 65 years or older with acute myeloid leukaemia who are not eligible for haematopoietic stem cell transplantation. The VIDAZA Marketing Authorisation has been updated to include this new indication in AML, covering patients who have >30% myeloblasts according to the WHO classification; previously, the indication covered AML patients with

3:54 am New York Community prices offering of ~40.6 mln shares of its common stock at $16.00/share (NYCB) :  

3:52 am MiMedx Group comments on the FDA Draft Guidance on Homologous Use of Human Cells, Tissues, and Cellular and Tissue-Based Products (MDXG) :

The co commented on the proposed Draft Guidance on Homologous Use of Human Cells, Tissues, and Cellular and Tissue-Based Products that the Food and Drug Administration published for comment on October 28, 2015 and the Notice of Public Hearing and Request for Comments released today indicating the agency would hold a public hearing on April 13, 2016 to obtain input on that Guidance as well as three other recently issued guidance documents on HCT/Ps.

• "It is our management's opinion that we are and have been in compliance with the homologous use requirements.  We have always marketed our products with general intended uses that have been documented by the FDA as being homologous use for amniotic tissue.   Our marketing does not reflect statements about our membranes being intended for use for specific indications such as dermal ulcers.  Our materials are much more general, and reflect uses that the FDA has already declared as homologous use for amniotic tissue."

3:47 am Target launches international version of its website, will deliver to international consumers this holiday season; separately announces free shipping for the holidays (TGT) : The new site, which Target recently began testing, also will allow U.S. customers to ship Target orders to around the world, just in time for this holiday season. Target has partnered with Borderfree, a Pitney Bowes (PBI) company to be able to ship globally. Countries where shipping from Target is now available include China, India, Canada, Mexico, European Union countries and more. Target also announced that beginning Nov. 1 through Dec. 25, Target will bring back free shipping and returns. Beginning next week, Target is expanding Instacart, the popular on-demand grocery delivery service from Minneapolis, where it was first piloted, to San Francisco.