The Asian markets climbed up as the shipping, resources, and finance sectors received a big boost following the hike of stocks overnight due to upbeat results, with the shares of Japan rallying into a 3rd straight session.
The stock average of Nikkei (JP:100000018 +1.21% JP:100000018 +1.21%) climbed 1.2 percent, extending the gains of this week to 3.2 percent and Hang Seng Index of Hong Kong (HK:HSI +0.99% HK:HSI +0.99%) rose 1 percent.
Kospi of South Korea (KR:SEU +0.70% KR:SEU +0.70%) progressed 0.7 percent, S&P/ASX 200 index of Australia (AU:XJO +0.82%) rose 0.8 percent and Shanghai Composite Index of China (CN:000001 +0.32%) inched higher by 0.3 percent.
The regional equities shortly regained from the highs of the day, and the stock futures of United States changed slightly lower, amidst early signs that Barack Obama (US president) had been victorious in the 2nd presidential debate with Mitt Romney (Republican nominee), conducted on Tuesday.
On Tuesday, the stocks of US exhibited a positive performance on optimism, earnings, and data that Europe will discover a way out from its debt issues.
A strategist working at Credit Agricole, Dariusz Kowalczyk said that the investors were expecting that the policy makers throughout the world will triumph in decreasing the markets risks and eventually transforming the global markets around.
The Nikkei stated that Yoshihiko Noda (Prime Minister of Japan) will probably call an urgent cabinet conference on Wednesday to talk about the stimulus steps for the Japanese markets.
The euro climbed to a 1-month high against yen, pointing out to enhanced risk appetite, following Tuesday’s reports that Spain was looking at requesting for a credit margin from the bailout fund of the European Union.
The exporters of Japan progressed on the strength of euro, with Panasonic Corp. (JP:6752 +2.23% PC +1.11%) climbing 2.2 percent, Sony Corp. (JP:6758 +2.03% SNE +2.00%) rising 2 percent, and Toyota Motor Corp gaining 1 percent.
Suzuki Motor Corp. (JP:7269 +1.79% SZKMF -3.39%) climbed 1.8 percent following the introduction of a revamped Alto model by its Indian joint venture, Maruti Suzuki India Limited (IN:532500 +0.19%).
Finance conditions in Tokyo also gained after the easing of concerns about Europe. Nomura Holdings Inc. (JP:8604 +3.27% NMR +1.98%) progressed 3.3 percent, and Matsui Securities Co. (JP:8628 +1.81% MAUSY -1.58%) rose 1.8 percent.
In Hong Kong, port operators associated with international trading, were also high, with Cosco Pacific Ltd. (HK:1199 +5.82% CSPKY %) climbing 5.8 percent and China Merchants Holdings International Co. (HK:144 +5.46% CMHHF -3.23%) progressing up by 5.5 percent.
Eanings Review: Rambus Inc. (NASDAQ:RMBS), Revlon Inc (NYSE:REV)
Revlon Inc(NYSE:REV) +2.5% after-hours after announcing that President and CEO Fabian Garcia is stepping down “to pursue other opportunities,” and Executive Vice Chair Paul Meister will oversee operations on an interim basis.
REV also says it expects Q4 revenues of $785M, below $801M from the year-earlier quarter but ahead of analyst consensus estimate of $743M, and a $60M-$80M net loss for the quarter due to a charge related to the recent tax law changes.
REV expects Q4 adjusted EBITDA of $110M-$115M vs. $115M analyst consensus.
CFO Chris Peterson also denies rumors that the company is considering a material asset transfer that would shield assets from lenders.
Rambus Inc.(NASDAQ:RMBS) shares are down 5.5% aftermarket following Q4 results that beat revenue estimates and met on EPS. In-line Q1 guidance (under ASC 605 accounting change) has revenue from $94M to $100M (consensus: $100.38M) and EPS from $0.17 to $0.23 (consensus: $0.18).
Revenue breakdown: Royalties, $77.9M (+10% Y/Y); Product, $8.5M (-27%); Contract and other revenue, $15.5M (+2%); Licensing billings, $76.6M (+18%).Key metrics: Non-GAAP operating margin, 31%; total operating expenses, $67.5M; cash and equivalents, $172.2M; cash flow from operations, $33.3M.
ADTRAN, Inc. (NASDAQ:ADTN) Hits New Lows After Issuing disappointing Earnings Forecast
ADTRAN, Inc.(NASDAQ:ADTN) slumped to a 52-week low after forecasting below consensus guidance for Q4, revising its revenue estimate downward to $125M from $155M-$165M earlier and seeing EPS of ~$0.01; analysts had expected EPS of ~$0.14 and revenue of $161.2M.
ADTN also projects Q1 to come in at roughly the same as Q4, misses analyst consensus of $167.5M.
CEO Tom Stanton says Q4 results have been hurt by a merger-related review, which ADTN expects to be completed in 60-90 days, and slowdown in the spending at a domestic Tier 1 customer.
MKM Partners analyst Michael Genovese believes the customer is CenturyLink (CTL -2%), which accounted for 24% of ADTN’s total sales in 2016.
The analyst thinks the weakness should prove temporary, adding that ADTN’s performance likely will accelerate into 2019 as the company stands to benefit from 5G spending; MKM trims its ADTN target price to $25 from $27 but keeps its Buy rating.
Big IPO Coming: Celator Pharmaceuticals Inc(NASDAQ:CPXX), Moleculin Biotech’s (MBRX)
Today at 10am Eastern, Moleculin Biotech ticker symbol MBRX will debut on the Nasdaq stock exchange and is being considered as one of the most highly anticipated IPO’s of 2016 by the street. The excitement and anticipation is arising from many experts saying that Moleculin Biotech’s (MBRX) drug annamycin is far superior to Celator Pharmaceuticals Inc(NASDAQ:CPXX) drug daunorubicin.
CPXX which has been bought out by Jazz Pharmaceuticals plc – Ordinary Shares(NASDAQ:JAZZ) for $1.5 Billion Dollars last week, share price ran from $1.6 to $31 in 2 months. Moleculin Biotech’s share structure is a 1.5m public float Priced at $6.