Day Traders Diary

7/8/13

U.S. equity futures are continuing higher this morning, with S&P futures +8 following a mixed performance overseas. The Asian session started off strong, but a couple of uninspiring Chinese growth outlooks turned sentiment negative in the region. First, the Securities Journal thinks Q2 GDP could come in around +7.5%, then Citi said it sees this year's growth slowing to +7.4% and then to +7.1% next year. By the end of the session, most the Asian markets were under water.

On the other hand, the EU bourses started off strong and have continued higher since the opening. Financials and technology are leading the way, with chip stocks in particular getting a boost from a sector upgrade from Kepler. The Greece Fin Min indicated that talks with the Troika are moving along well and are very close to reaching a deal for the next tranche of aid. European stocks are also bid due to the late session recovery from the US on Friday.

Earnings/Guidance: (See Earnings Calendar for full list):

BABY lowered guidance for Q2 (Jun), sees Q2 (Jun) revs of $81-82 mln from prior guidance of $86-90 mln vs. $88.57 mln Capital IQ Consensus Estimate. "Weakness in our International markets, particularly Europe, led to an unexpected decline in revenue late in the second quarter...Domestic revenue was within our expectations."

ASX reports Jun revs of NT$16.61 bln, up 8.0% YoY, -4.8% sequentially; sees Q2 revs below consensus

Other news:

TRI to suspend early releases of Michigan Sentiment data, according to reports

CYTK says it was recently informed by its data management vendor that a programming error in the electronic data capture system, caused 58 patients initially randomized to and treated with tirasemtiv to receive placebo instead; error has been corrected

CTIC announced that the National Institute for Health and Care Excellence, a non-departmental public body of the Department of Health in the United Kingdom, has notified CTIC and issued a statement on their website stating that CTIC's patient access scheme has been approved by the Department of Health and the appeal stage of this appraisal topic is suspended. The draft final appraisal document and evaluation report have been removed from the NICE website, since it is no longer relevant. NICE has agreed that the Appraisal Committee will consider the new evidence on the cost effectiveness of PIXUVRI at its meeting on September 11, 2013.

ASTX announces plans to file IND with the FDA for ASTX727

DELL: Carl Ichan issues letter to DELL shareholders says 'I am proposing a total risk to my affiliates and myself of $5 bln' (out over the weekend)

DVA announces that Garry Menzel to join the co in mid-September and become its CFO

Analyst Research (see Upgrades/Downgrades calendar for full list):

Wunderlich downgrades Mortgage REITs; cuts AGNC, IVR, CYS, MTGE, MITT and WMC to Hold from Buy

DE downgraded to Neutral from Overweight at Piper Jaffray

INTC downgraded to Underweight from Equal Weight at Evercore

AMTD upgraded to Buy at Citigroup

CYT upgraded to Buy at Goldman

JHX upgraded to Buy at Goldman

VNTV upgraded to Buy from Neutral at Goldman

PCLN upgraded to Overweight from Equal-Weight at Morgan Stanley

FISV upgraded to Overweight from Equal Weight at Barclays

CTSH downgraded to Equal Weight from Overweight at Barclays

LPS downgraded to Equal Weight from Overweight at Barclays

PAY downgraded to Equal Weight from Overweight at Barclays

DAN downgraded to Hold from Buy at Deutsche Bank

ONNN downgraded to Equal Weight at Evercore

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