Author Archives: Scalper1

Apple Urges Court To ‘Zealously Guard Civil Liberties’

Apple ( AAPL ) late Tuesday urged a federal judge to side with civil liberties when it reconsiders an FBI demand to force Apple to hack its iPhone security software. Apple filed its last scheduled legal brief before next Tuesday’s federal court hearing over unlocking an iPhone that belonged to deceased San Bernardino, Calif., shooter Syed Farook. In its brief, Apple acknowledged that the case is “in a difficult context after a terrible tragedy.” “But it is in just such highly charged and emotional cases that the courts must zealously guard civil liberties and the rule of law and reject government overreaching,” Apple’s lawyers wrote. “This court should therefore deny the government’s request and vacate the order.” Apple said the Justice Department and the FBI are asking the court to force Apple to resolve a policy and political issue that is dividing Congress and agencies of the executive branch. “The Justice Department and FBI argue that this court must decide the issue in a vacuum, without regard to either the swirling national debate about mandating a back door or the dangers to the security and privacy of millions of citizens posed by the relief they seek on behalf of the United States,” Apple’s lawyers wrote. Apple maintains that the All Writs Act can’t be used as “an all-powerful magic wand” to authorize such orders. Forcing Apple to create new software that degrades its device security is “unprecedented” and would have dangerous consequences, Apple says. It would violate the company’s First Amendment rights against compelled speech. “The government’s position has sweeping implications,” Apple’s attorneys wrote. “Under the government’s view, the state could force an artist to paint a poster, a singer to perform a song or an author to write a book, so long as its purpose was to achieve some permissible end, whether increasing military enrollment or promoting public health.” Apple is asking U.S. Magistrate Sheri Pym to vacate her Feb. 16 order that Apple assist the FBI in unlocking Farook’s iPhone. The parties will meet in federal court in Riverside, Calif., next Tuesday to argue the case. The case has fueled a debate over smartphone encryption, which has pitted Silicon Valley and civil rights groups against the federal government and law enforcement agencies. Companies supporting Apple’s position include Amazon.com ( AMZN ), Alphabet ( GOOGL ), Facebook ( FB ) and Microsoft ( MSFT ). RELATED: Apple-FBI Feud Over iPhone Encryption Turns Ugly .

Gilead Sciences Gets Price-Target Cut After Cancer Trials Stopped

Big biotech Gilead Sciences ( GILD ) got a price-target cut from investment bank Leerink on Wednesday, after the company cancelled clinical trials on its cancer drug Zydelig due to safety problems. The European Medicines Agency (EMA) said last Friday that it was looking into reports of serious adverse events, including deaths, in Gilead’s trials of Zydelig in various forms of blood cancer. Later, the U.S. Food and Drug Administration said that it was doing the same, and on Monday it issued a notice saying that Gilead had agreed to suspend six trials in patients with chronic lymphocytic leukemia (CLL), small lymphocytic lymphoma (SLL) and indolent non-Hodgkin lymphomas (NHLs). Zydelig, first launched in July 2014, is now approved for relapsed CLL and as a third-line treatment for B-cell NHL and SLL. “The FDA is reviewing the findings of the clinical trials and will communicate new information as necessary,” the agency said in its statement. Gilead also said that it’s suspending trials of Zydelig as a front-line treatment for any cancer. On Wednesday, Leerink analyst Geoffrey Porges slashed his peak annual sales estimate on the drug from $935 million to $174 million in 2020, which he estimates will shave 1% to 3% off EPS in the 2017-2020 period. He therefore cut his price target to 127 from 130 while maintaining an outperform rating on Gilead stock. “Though accretive to revenue, oncology accounts for a small portion of Gilead’s total revenue, 93% of which consists of antivirals,” Porges wrote. “We have never been convinced that oncology would become a major franchise for the company, and given these recent events, maintain this outlook.” Gilead stock was up 1% in early trading on the stock market today , near 90, but it’s down more than 10% this year and sports a lowest-possible IBD Accumulation/Distribution Rating of E.

Market Lab Report – Premarket Pulse 3/16/16

Major averages finished quietly lower yesterday and near the top of their respective trading ranges on mixed volume. This comes ahead of the Federal Reserve’s policy announcement at 2 p.m. EDT today following the conclusion of their two-day meeting. The Fed has become increasingly dovish with regard to any interest rate hikes this year as the global economy remains stagnant. That said, they have said they remain open to the possibility of rate hikes later this year depending on improving economic conditions. The Bank of Japan left its policy rate unchanged at -0.1% while downgrading its economic outlook. Given that its economy has not improved despite negative interest rates, it calls into question what tools central banks have to stoke their respective economies. The market’s future direction may hinge upon the Fed policy announcement, so investors should remain alert to any change of trend. For now the Market Direction Model remains on a buy signal pending any evidence to the contrary.