Cantor Morning News | Industrials

The Industrials finished the day up fractionally across the board on very thin volume ahead of the FOMC meeting/comments today. Precious metals drifting lower this morning on news that Chinese imports were lower than expected in July. Auto parts manufacturer’s likely to take a breather today from recent run up off Deutsche Bank’s downgrading of ALV, BWA, and TRW.

Macro/Technicals

XAL : 41.27 ; +2.52%
S&P 500 Auto : +.72%
S&P 500 Transportation : +1.33%
S&P 500 Materials : +.44%
GLD : 117.40 ; +0.00%
XLI : 31.01 ; +.52

Sector News, M&A, Capital Raises

Industrials

· Honeywell (HON) acquires shares of Sperian Protection (SPR.FP) owned by Essilor

o Honeywell also acquires all Sperian shares held by Ginette Dalloz and Societe Civile Familiale Dalloz for €117 each, in accordance with the previously announced Share Purchase agreement. As a result of this acquisition, Honeywell now holds 28.28% of the share capital and 27.53% of the voting rights of Sperian Protection

· Raytheon (RTN) awarded $450.8M contract

o RTN was awarded a $450,827,357 contract to provide engineering and manufacturing development phase of the Small Diameter Bomb Increment II (SDB II) program (nomenclature, Guided Bomb Unit-53/B). The SDB II will initially be integrated on the F-15E, F-35B and F-35C aircraft. At this time, $23.5M has been obligated.

Transports

Pinnacle Airlines (PNCL) reports July traffic +0.1%

Capacity +4.6%
Load factor (3.4 pts) to 78.4%

UAL Corp (UAUA) reports July PRASM +22-23%

Traffic +2.1%
Capacity +1.8%
Load factor +0.3 points to 87.2%

NSC Norfolk Southern carloads
Total car loadings were +13.8% to 133,150; vs last week +16.8%

· Intermodal +21.5% to 59,537; vs +18.0%

· Coal and Coke +4.7% to 28,738; vs +19.9%

· Merchandise +10.6% to 44,875; vs +13.5%

o Selected products within Merchandise category:

§ Chemicals +5.7% vs +8.8%

§ Motor Vehicles & Equipment (9.3%) vs (4.2%)

§ Crushed Stone, Sand and Gravel +32.5% vs +32.7%

§ Grain +21.5% vs +18.2%

§ Metals and Products +31.7% vs +31.1%

Materials/Metals

· Kaiser Aluminum (KALU) corporation acquires Nichols wire facility, Florence, Alabama

o KALU announced it has completed the acquisition of the Nichols Wire facility in Florence, Alabama which manufactures bare mechanical alloy wire products, nails and aluminum rod for aerospace, general engineering, and automotive applications. The facility, which employs approximately 100 personnel, will be integrated into Kaiser Aluminum's Fabricated Products business segment. The business typically generates annual value added revenue, which represents net sales less the hedged cost of alloyed metal, of approximately $15M at profitability levels comparable to the existing Fabricated Products portfolio.

Autos

· Tata Reports Profit as Economy Spurs Jaguar Land Rover Sales- BBG

o Tata Motors Ltd., the Indian owner of Jaguar Land Rover, posted a first-quarter profit as the global economic recovery spurred demand for luxury sport-utility vehicles and $80,000 XF sedans. Sales rose 64 percent

o Jaguar Land Rover vehicle sales jumped 59 percent as the unit benefited from a rebound in demand that has also caused Bayerische Motoren Werke AG and Daimler AG to raise their profit forecasts

Research Away

Deutsche Bank downgrades ALV, BWA, TRW

· Autoliv (ALV) downgraded to hold from buy; target remains $67

· BorgWarner (BWA) downgraded to hold from buy; target remains $48

· TRW Automotive (TRW) downgraded to hold from buy; target remains $40

NOC -Northrop Grumman downgraded to market perform from outperform at FBR Capital The firm expects shares to underperform relative to peers in 2H10. Target is $75.

DOV -Dover Corp added to Conviction Buy List at Goldman Sachs The target is $60.

Steel: EU Steel Sector view upgraded to 'more positive' from neutral at UBS

Top Events/Earnings Calendar

· RTK Rentech updates on stock sold through equity distribution agreement with Knight Capital

· RTN Raytheon awarded $450.8M contract

· SNHY Sun Hydraulics reports Q2 EPS

· ABAT Advanced Battery Tech reports Q2 EPS

· ENS EnerSys receives $39M in contracts for submarine batteries

· CPLP Capital Product Partners announces 5.5M common unit offering through UBS and Citi

· GNK Genco Shipping & Trading reports Q2 EPS

· CPST Capstone Turbine reports Q1 EPS $0.00 vs year-ago

· IESC Integrated Electrical reports Q3 EPS

· PRGN Paragon Shipping reports Q2 EPS

· PANL Universal Display reports Q2 EPS

· ASEI American Science & Engineering reports Q1 EPS

· MDR McDermott reports Q2 EPS

· MYRG MYR Group reports Q2 EPS

· RTK Rentech reports Q3 EPS

· CHOP China Gerui Advanced Materials Group initiated market outperform at Rodman & Renshaw; target is $10.

· ZOLT Zoltek reports Q3 EPS

· CDE Coeur d'Alene Mines reports Q2 EPS

· NP Neenah Paper reports Q2 EPS

· RMIXQ U.S. Concrete reports Q2 EPS

· CXDC China XD Plastics Co reports Q2 adj. EPS

· SA Seabridge Gold reports Q2 EPS

· JAG Jaguar Mining reports Q2 EPS

· KALU Kaiser Aluminum corporation acquires Nichols wire facility, Florence, Alabama

· GSS Golden Star reports Q2 EPS $0.03 vs. year-ago $0.00-- from 10-Q filing

· SMG Scotts Miracle-Gro reports Q2

· TDG Transdigm reports Q3

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