(212) 829-5484 Laux, Porter, Cavanaugh

Yesterdays consumer confidence  number slipped in July indicating that the consumers are still worried about the economy. The restaurants have been a battered sector this year. However yesterday we saw strong #s out of PNRA, BWLD which may tell us there is some light at the end of the tunnel.

 

SP 500 futures  hovering around   200  m/a   look  for some  resistance  here  ahead of the 1129 level.  RSI  seems to  be  leveling  off around  the  60 level  65  would  be  resistance  if  you are  looking for a sell off to begin.  A large amount of bearish  engulfing patterns  seems to  gives credence to this  view.   VIX  is  right  around its  200 ma/a as well.

 

DRG Index  appears  to  be  concluding  a  b wave  of  and  abc  correction. It needs  to  take  out  the  280  level  to  start  a c wave  down. UNH   had  a significant  negative  technical  move  yesterday needs  to  hold its   200 m/a  and  will also  move  w/  HMO  group as AET  and WLP  earnings are  digested

Today's Healthcare Stories
Active Names | Earnings | Sector News, M&A, Capital Raises

Active Names

Biotech/Pharma: GPRO CYPB HSP TLCR CPEX JAZZ AMGN HGSI SQNM

Healthcare Services: PSSI CFN VAR KCI MDT COV BEC BRKR MCK RHB

Restaurants/Publishing/Retail: HIS PEET

 

Earnings

WLP WellPoint   1.67 ex-items vs 1.55. Revs $14.22B vs $14.61B. Raises outlook.. expects to buy back $1B  shares in 2H2010.

CVS .65c vs .67c est. Revenues $24.01B vs $24.17B. Guides full year EPS to $2.68-$2.73, below prior $2.77-$2.84 vs Reuters $2.78. Company is lowering its retail same store sales guidance for the year to a range of 2.0% to 3.5% from a range of 3.5% to 5.5%.

BRKR Bruker reports Q2 EPS $0.15 ex-items vs Reuters $0.12. Revenues of $300.9M vs Reuters $283.5M.

WAT Waters reports Q2 EPS $0.93 ex-items vs Reuters $0.90 . Revenues of $391.0M vs Reuters $389.5M

AET Aetna reports Q2 EPS $0.75 ex-items vs $0.74 Revenues of $8.50B vs Reuters $8.49B. Guides full year EPS to $3.05-3.15 vs prior guidance $2.75-2.85 and Reuters $2.98.

PNRA Panera Bread .90c ex-items vs .83c. Revenues $378.1M vs $376.2M . Q3 .71-.73c vs .75c. Q4  1.11-1.13 vs 1.08 est.  Company owned comps +9.6% vs +9.3%. Franchised comps +10.1% vs +8.7 %.

BWLD Buffalo Wild Wings  .50c vs .42c. Revenues $145.7M vs $141M.

CEPH Cephalon  2.05c ex-items vs 1.77c. Revenues $726M vs 694M.  Net sales for Q3 $670-700M vs $717M.

ILMN Illumina  Guides f10 non-GAAP EPS to $0.93-$1.00 vs Reuters $0.99; Revenues $852.48 vs Reuters $826.8M.

Sector News, M&A, Capital Raises

MRK Merck grants license to Labcorp (LH) for development of test for potential identification of patients responsive to Hepatits C therapy.

CVS receives 12-year Aetna Pharmacy Service Contract

MDT Medtronic US FDA panel votes 6-5 saying the benefits of Medtronic's AMPLIFY spine device outweigh the risks

VRUS Pharmasset initiates multiple ascending dose trial for drug treating chronic Hep C.

HMA Barron’s Trader says company has strongest admission growth of any public for profit hospital..cost cuts should help them beat estimates.

Disclaimer: Prepared by staff of Cantor Fitzgerald & Co. ("Cantor") and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient's organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal. ***All eco data from Bloomberg and DJ