7/28/2015

Mid-Afternoon Market Update: Celldex Therapeutics Rallies as Pandora Drops

Toward the end of trading Monday, the Dow traded down 0.33 percent to 15,399.45 while the NASDAQ declined 0.23 percent to 3,765.48. The S&P also fell, dropping 0.45 percent to 1,702.73.

Top Headline
Apple (NASDAQ: AAPL) reported that it has sold nine million new iPhone 5s and iPhone 5c models in the first three days after the launch of the new iPhones on Friday. Last September, Apple sold more than 5 million iPhone 5 models in the first three days after its launch. Apple also said that it estimates Q4 sales to be near the high end of its earlier projected range of $34 billion to $37 billion.

Equities Trading UP
Isis Pharmaceuticals (NASDAQ: ISIS) shot up 6.71 percent to $38.48 after the company reported positive Phase 2 data on ISIS-APOCIII Rx in patients with familial chylomicronemia.

Shares of Apple (NASDAQ: AAPL) got a boost, shooting up 5.16 percent to $491.51 after the company reported that it has sold nine million new iPhone 5s and iPhone 5c models in the first weekend.

Celldex Therapeutics (NASDAQ: CLDX) was also up, gaining 12.12 percent to $32.46 after following a bullish report out of Leerink Swann.

Equities Trading DOWN
Shares of Pandora (NYSE: P) were down 10.15 percent to $24.25 as traders looked to take profit on the stock after shares posted a massive rally over the past 3 weeks.

J. C. Penney Company (NYSE: JCP) shares tumbled 4.78 percent to $12.33. JC Penney is in talks to raise more money, Bloomberg reported.

Northern Tier Energy LP (NYSE: NTI) was down, falling 7.37 percent to $18.10 after the company reported an operational issue with crude unit. 

Commodities
In commodity news, oil traded down 1.07 percent to $103.62, while gold traded down 0.73 percent to $1,322.40. Silver traded up 0.10 percent Monday to $21.80, while copper fell 0.54 percent to $3.30.

Eurozone
European shares were lower today. The Spanish Ibex Index dropped 0.68 percent, while Italy's FTSE MIB Index fell 0.32 percent. Meanwhile, the German DAX dropped 0.47 percent and the French CAC 40 fell 0.75 percent while U.K. shares declined 0.59 percent.

Economics
The Chicago Fed National Activity Index surged to +0.14 in August, versus -0.43 in July. The preliminary reading of Markit flash manufacturing PMI declined to 52.8 in September, versus a reading of 53.1 in August.

7/19/2015

The Deal: Continuing Slow Sales Send Rue21 Shares Down

NEW YORK (The Deal) -- Teen apparel retailer Rue21 (RUE) filed financial data for its second quarter and other data to be supplied to potential lenders for its $990 million buyout by Apax Partners LP.

The May 23 deal offers $42.00 per share in cash for Rue21, and the shares have been down this week over concerns about the industry's performance. Rue shares traded down 25 cents Thursday to $41, at a spread of $1, or 2.4%.

The buyout goes to a vote of Rue21 shareholders Sept. 19. Apax affiliate SKM II owns about 30% and has committed to support the deal.

For the quarter ended Aug. 3, the retailer reported that sales rose 13.5% due to new stores (8%) and the increased size of single transactions (3.7%), although unit sales were lower. Net income decreased 88% compared to the same quarter in 2012 down to $1.1 million from $9.1 million. Merger-related expenses accounted for $2.4 million of the decline. Store operating expenses rose due to the increased number of outlets, and selling, general and administrative expense increased 18%. Earnings per share fell to 5 cents from 50 cents in the second quarter of 2012. In a separate filing with the Securities and Exchange Commission, Rue21 reported as part of its debt financing activities that the soft sales patterns seen in the second quarter continued into August. "The company took a strategic approach to managing merchandise margin and inventory levels and maintained a normal promotional cadence." August same store sales were down 7.6%, total sales up 4.2%, merchandise margin improved 200 basis points and gross margin improved 40 basis points. Administrative expense for August, excluding stock compensation and merger costs, decreased 4% from August 2012. Rue21 said in the filing that while it expects for conditions to improve for the teen retail sector into the holiday season, the company is prepared to manage the business for a prolonged period of top line weakness, if necessary. New stores opened for at least 12 months have been consistent in delivering investment returns in excess of 100%. Much of any continued comparable store sales weakness is expected to be offset by cash flows and new store profits. Rue21 said it identified approximately $3 million in expense reductions that it intends to implement during the third quarter. The buyout has a 20-day debt marketing period beginning Sept. 3. The debt commitment letter with JPMorgan Chase & Co., Bank of America Corp. and Goldman Sachs Group Inc. provides $780 million in a $530 million senior secured term loan, a $250 million senior unsecured bridge facility and a $150 million revolving credit facility. The reverse termination fee is $62.7 million. -- Written by Scott Stuart in New York