June 14th - Thursday - Gapping up/down

Futures indicate a slightly higher start for the mkt, after losing their slight gains following the latest read on inflation. May PPI rose 0.9% (consensus 0.6%), while the more closely-watched core rate rose 0.2% (consensus 0.2%). However, the core yr/yr rate ticked up 0.1% to 1.6%. On the Earnings front: BSC is trading lower after the co's Q2 EPS missed expectations for the first time since 2001, though it beat on revs; GS is also trading lower following Q2 earnings, despite beating on both the top and bottom line. Dow futures are currently +9; Nasdaq futures are currently +2.8; S&P futures are currently +1.3.

Notable pre-market Calls include Downgrades: SNY at HSBC and JP Morgan, DJ at UBS... On the Earnings calendar: ADBE, SWHC and TMRK are confirmed to report after the close... On the Economic calendar, nothing remains on the schedule for today.

Gapping down on weak earnings/guidance: SCSS -6.8%, CSC -3.5%, BSC -2.7%, GS -2.7% (MS -1.3% and LEH -1.0% in sympathy with BSC & GS)... Other news: IPG -4.8% (co receives Wells notice from SEC), JSDA -4.6% (Stifel notes that SBUX will discontinue sales of JSDA), SNY -4.3% (FDA advisory committee did not recommend approval of Zimulti).

Gapping up on strong earnings/guidance: LPHI +3.7%... Other news: HOKU +67.8% (co and STP sign $678 mln polysilicon supply contract), KRY +28.1% (announces requirements of MinAmb have been fulfilled regarding permitting for the Las Cristinas project), GNLB +15.5% (initiated with a Buy and and $6 tgt at Oppenheimer), ACH +8.2% (upgraded to Buy at tier-1 firm), BRLC +6.4% (CIBC made positive comments), HGSI +4.6% (phase 2 study of LymphoStat-B showed significant reductions in disease activity), ARQL +4.3% (prices a 7 mln share common stock offering of $7.75/share), DPHIQ +4.2% (Reuters reports Delphi, GM near deal with UAW), CLWR +4.0% (announces distribution agreements with DIRECTV and EchoStar) ISIL +3.5% (upgraded to Buy at Banc of America), SRZ +2.7% (Millennium Partners 'demands' changes at SRZ), MU +1.7% (positive broker commentary regarding DRAM prices in Asia).