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Early Look 6:55AM EST

Wednesday, September 17, 14


Index Up/Down % Last
DJ Industrials 7.00 0.03% 17,061
S&P 500 0.50 0.01% 1,992
Nasdaq -2.25 0.04% 4,056


FOMC day finally hereS&P futures flat ahead of the FOMC statement, due at 2 p.m. Eastern Time,
followed by a news conference with Federal Reserve Chairwoman Janet Yellen. Prior to that, we get
consumer prices for Aug at 8:30 am et. European shares are trading up by more than 0.4%, while Asia
was mixed with The Nikkei Index falling 22 points to 15,888, the Shanghai Index rose 11 points to 2,308
and the Hang Seng Index jumped 1% or 240 points to close at 24,376

The dollar is edging slightly higher ahead of the Fed, commodity prices oil/gold both little changed, and
the 10-yr yield slips slightly to 2.57% (expect lackluster trading action ahead of the Fed later this
afternoon. In corporate news, housing stocks get a lift on better earnings/revs from Lennar (LEN); ENDP
offered to acquire AUXL in $2B deal; steel maker U.S. Steel (X) jumps on news it was making big
strategic changes; ADBE shares fall on lower guidance; FDX set to report later this morning; RAX shares
plunged after announcing a new CEO and said it will remain independent

The Dow Industrials made a new intraday high yesterday, but closed just short of a new record, ahead
of the FOMC decision later today. Markets jumped across the board in the U.S. after a report in the Wall
Street Journal indicated the Fed could be less hawkish than markets have been expecting, as investors
try to divine when the central bank will hike interest rates. Reports the China was providing 500 billion
yuan ($81.4 billion) of liquidity to the countrys five biggest banks as Premier Li Keqiang steps up
stimulus to support economic growth, helped propel commodity markets higher

Market Closing Prices Yesterday
The S&P 500 Index jumped 14.85 points, or 0.75%, to 1,998.98
The Dow Jones Industrial Average soared 100.83 points, or 0.59%, to 17,131.97
The Nasdaq Composite spiked 33.86 points, or 0.75%, to 4,552.76
The Russell 2000 Index advanced 4.45 points, or 0.39% to 1,150.97


Events Calendar for Today
7:00 AM ET MBA Mortgage Applications Data
8:30 AM ET Consumer Price Index, for Augest. 0.0% and core est. 0.2%
8:30 AM ET Current Account Balance, for 2Qest. (-$113.4B)
10:00 AM ET NAHB Housing Index, for Septest. 56
10:30 AM ET Weekly DOE Inventory Data
2:00 PM ET FOMC Rate Decision (includes press conference)


Macro Up/Down Last
WTI Crude 0.04 94.92
Brent 0.39 99.44
Gold 1.70 1,238.0
EUR/USD 0.0004 1.2963
JPY/USD 0.18 107.30
10-Year Note -0.02 2.571%


World News
China to extend tax cuts among small business, Economic Daily reports
The Bank of England's Monetary Policy Committee voted 7-2 at its September meeting to keep
rates on hold and its quantitative-easing program unchanged, according to minutes released on
Wednesday. Seven members were in favor of leaving the key interest rate at a record low of 0.5%
and making no changes to the BOE's 375 billion-pound ($640 billion) asset-purchase program
The U.K. unemployment rate fell more than expected to the lowest level for almost six years in
the three months to July, but wage growth remained at record low levels. The jobless rate for the
May to July period was 6.2%, down from 6.4%

Sector News Breakdown
Consumer
Lennar (LEN) Q3 EPS 78c/$2.01B vs. est. 67c/$1.96B; said Q3 orders were up 23% vs. Bloomberg
est. up 18%; says housing market has continued its slow and steady recovery"; said the average
sales price $332k vs $291k YoY
Corinthian Colleges (COCO) files to delay 10-K, sees significant charges on sale of notes
receivable; sees charges on impairment of long-lived assets
Education Management (EDMC) will delay its 10-K filing with U.S. SEC.

Energy
Sunoco Logistics (SXL) reports 7.7M-unit offering
The American Petroleum Institute reported crude-oil inventories rose 3.3 million barrels in the
week ended Sept. 12, according to reports. Supplies of gasoline declined 1.2 million barrels, and
supplies of distillates rose 1 million barrels, the trade group added

Financials
Credit Suisse (CS) is drawing scrutiny from U.S. regulators over concerns the bank is not heeding
warnings to stop making loans seen as risky WSJ
Radian Group (RDN) upgraded to Buy from Neutral at Compass Point
Extra Space Storage (EXR) upgraded to Buy from Hold at Jefferies




Healthcare
Specialty healthcare company Endo International Plc (ENDP) offered to buy Auxilium
Pharmaceuticals Inc. (AUXL) for about $2.2B in cash and stock; Endo's offer of $28.10 per share
represents a premium of 30.6% to Auxilium's Tuesday closing price http://goo.gl/tGdq0F
Some of the top 20 investors at Salix Pharmaceuticals Ltd (SLXP) are threatening to vote down a
proposed deal to buy a unit of Cosmo Pharmaceuticals, and are pressing Salix to consider selling
itself instead http://goo.gl/hwSLgN
Cigna (CI) upgraded neutral to positive at Susquehanna
Gileads (GILD) Pancreatic Cancer combo simtuzumab to gemcitabine did not significantly
increase progression-free survival compared to placebo plus gemcitabine, the primary endpoint
of Phase 2 trial
DaVita (DVA) downgraded to Hold from Buy at KeyBanc
Tokai Pharmaceuticals files for 6.48M share IPO at $15 per share
Integra Lifesciences (IART) to buy Medtronic (MDT) units for $60M in cash
Civitas Solutions files for 11.7M share IPO at $17 per share
Retrophin Inc. (RTRX) said its CFO was leaving the company and board member Jeffrey Paley was
stepping down; according to an SEC filing, the Nasdaq told the company it was out of compliance
with listing rules for not having a majority of independent directors
PDL BioPharma Inc. (PDLI) said its accounting firm, Ernst & Young, resigned on Sept. 11.
Novavax, Inc. (NVAX) said enrollment has begun in a Phase 2 clinical trial of its respiratory
syncytial virus F-protein nanoparticle vaccine candidate (RSV F Vaccine), in healthy women in the
third trimester of pregnancy
Abiomed (ABMD) announced clinical trial results from RECOVER RIGHT, an Investigational Device
Exemption (IDE) study of the Impella RP (Right Percutaneous) System. The clinical trial results
demonstrated a survival rate of 73% in the overall patient population
Oncolytics Biotech (ONCY) reports KRAS-Mutated data from phase 2 pancreatic cancer study
InspireMD (NSPR) announced positive results from the CARENET Trial for its CGuard EPS
Insulet (PODD) announced that Patrick J. Sullivan has been appointed President and CEO and
Director effective immediately
Sophiris Bio (SPHS) files $100M mixed securities shelf

Industrials & Materials
U.S. Steel Corp. (X) said it was making big strategic changes; said it was not expanding into an
iron ore pellet operation in Minnesota and halting development of a carbon alloy facility in
Indiana; said it expects Q3 results to be significantly higher than the current consensus earnings
per share estimates (est. 90c and $4.56B)
YRC Worldwide (YRCW) enters amended credit agreement; sees Q3 adjusted EBITDA of about
$75M-$80M and operating income of approximately $22M-$27M
Fed-Ex (FDX) is set to report earnings later this morning; will increase shipping rates by an
average of 4.9% for U.S. domestic, U.S. export and U.S. import services starting Jan 5
Eaton (ETN) downgraded to Hold from Buy at Stifel
Greenbrier (GBX) reports 15,000 railcar orders valued at $1.37B; says 4Q to date orders span
multiple types of cars
United Launch Alliance, a joint venture of Boeing Co (BA) and Lockheed Martin (LMT), has won a
contract from the U.S. Air Force for $938M in additional work on military rocket launch services,
NASA awarded two billion-dollar contracts to Boeing Co. (BA) and Elon Musk's Space Exploration
Technologies Corp., or Space X. Boeing will get $4.2B and SpaceX $2.6B. NASA's long-range goal is
to reach Mars, with support from as many providers as possible, officials said


Technology, Media & Telecom
Adobe Systems (ADBE) rpts Q3 eps 28c/$1.005B vs. est. 26c/$1.02B; exits Q3 with 2.81M paid
creative cloud subscriptions, an increase of 502K; sees 4Q revs $1.025B-$1.075B vs. est. $1.09B
and eps 26c-32c vs. est. 31c; sees creative cloud subscriptions slightly exceeding 2H view of 1m
net new subscriptions
Rackspace (RAX) says it has ended its evaluation of alternatives.; says it will remain independent;
also names Taylor Rhodes as CEO; said no proposals were deemed to have as much value as the
expected value of standalone plan
Sony (SNE) forecasts operating loss of 40b yen from earlier forecast of 140b yen profit; keeps full-
year sales forecast unchanged
Microsoft (MSFT) raises dividend by 11% to 31c from 28c
LCD TV shipments are expected to reach 229M units in 2015 and expected to reach 245M units in
2017, reports DigiTimes
Foxconn said to struggle meeting demand for new IPhones; has continued to hire more workers
for assembling 2 new iPhone models at Zhengzhou production site, WSJ says
Smartwatches may comprise 40% of wrist devices by 2016; says release of Apple Watch next
year will trigger greater consumer interest in the mkt, according to Gartner
Apogee (APOG) rpts Q2 eps 35c/$231.9M vs. est. 33c/$219.3M; sees year rev growth ~20%, had
seen 15%-20%; sees year EPS w/items $1.62-$1.72, up from $1.40-$1.50 ex-items
Google Inc. (GOOG) said to postpone Android Silver phone plans: Information reports









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