Good Morning Wall Street, Tuesday, March 24, 2015

US futures pushing higher at this hour after yesterday’s market digested last week’s gains and ahead of a plethora of data, with CPI, PMI and new-home sales ahead, as well as a speech by St. Louis Fed President Bullard. The futures are profiting by overnight data showing that German PMI jumped to a month high and  business activity in the eurozone hit a 46-month high. These reports helped offset a very negative report on Chinese factory activity, which showed a drop to an 11-month low.

 

ON THE ECONOMIC CALENDAR:

  • 6AM: Fed Bullard speech from London: The Future of International Monetary Policy and It’s Impact on the Global Economic Recovery
  • 8:30AM: Consumer Price Index for Feb: expectation +0.2%, after a drop of 0.7% in January
  • 8:55AM: Redbook Chain Store Sales: expectation 0.1%
  • 9AM: FHFA House Price Index
  • 9:45AM: PMI Manufacturing Index Flash
  • 10AM: New Home Sales: expectation 455K, down from previous 481K
  • 10AM: Richmond Fed Manufacturing
  • 1PM: Results of $26B, 2 Year Note Auction

EARNINGS:

  • MKC earnings: FQ1 EPS of $0.70 beats by $0.06.Revenue of $1.01B (+1.7% Y/Y) beats by $24.88M : FY15 reaffirmes its expected constant currency growth rate for sales, adjusted operating income and adjusted earnings per share : sees FY15 adjusted EPS $3.44-$3.51, consensus $3.53
  • GIII earnings:Q4 EPS of $0.98 beats by $0.15.Revenue of $514.32M (+8.8% Y/Y) misses by $14.01M:sees Q1 EPS 5c-15c, consensus 14c :sees Q1 EPS 5c-15c, consensus 14c: sees FY16 EPS $5.05-$5.25, consensus $5.16:
  • SONS: Sonus slashes guidance, looks for cost cuts: Q1 revenue is now expected to be $47M-$50M vs. previous guidance of $74M

NEWS:

  • AMZN:Amazon’s Twitch unit releases announcement that its website for streaming videogame play was likely hacked, and users’ account and personal information may have been compromised
  • MS: GOOG: Morgan Stanley CFO leaving company for position as CFO at Google
  • ROST: announces 2 for 1 stock split
  • FLR: Fluor announces contract by TianREC to provide detailed design services and technical support for a new polysilicon plant in Yulin, China
  • LINE: Quantum Energy Partners agrees to commit an initial $1B in equity capital to form a strategic partnership with Linn to fund oil and gas acquisitions
  • MRK:Phase 3 KEYNOTE-006 study met co-primary endpoints, will be stopped early
  • FCX: cuts dividend to 5c/share from 31.25c
  • LHA: Germanwings jet crashes in the French Alps with 158 on board
  • ARIA: ARIAD granted approval of Iclusig in Israel
  • JEC: Jacobs Engineering announces contract for Network Rail link to Heathrow
  • OCN: receives deficiency letter from NYSE
  • CELG: UBS out positive on Celgene
  • GILD: Bernstein out positive on Gilead after pullback
  • BMY: Bristol-Myers granted exclusive license from Novo Nordisk for research
  • CCE: added to US #1 List at BofA/Merrill
  • FB: Facebook May Host News Sites’ Content, reports The NY Times

ANALYST RATINGS CHANGES:

upgrades:

  • CMI: upgrade: neutral to outperform: Baird: pt raised from $154 to $166
  • KMB: upgrade: buy to overweight: Wells Fargo: pt raised from $117 to $120
  • EL: upgrade; buy to outperform: Wells Fargo: pt raised to $90-92 range

downgrades:

  • PGR: downgrade: buy to neutral: Goldman: $28

initiation:

  • LB: initiated: buy: Topeka: $106
  • WWAV: initiated: buy: Argus: $49
  • FIVE: initiated: buy: Buckingham: $39
  • PAY: initiated: outperform: BMO Capital: $42

price target change:

  • NFLX: pt raised from $400 to $450: Barclays
  • NLFX: pt raised from $450 to $500: Cantor
  • WWAV: pt raised from $40 to $50: Oppenheimer
  • HUM: pt raised from $167 to $193: Oppenheimer
  • NKE: pt raised from $110 to $116: Argus
  • BA: pt raised from $165 to $185: Jefferies
  • QSR: pt raised from $44 to $45: Piper (“believes the stock can rise 50% in less than 5 years”)
  • CRI: pt raised from $100 to $107: Citigroup
  • MEIP: pt cut from $14 to $7: Cantor
  • DO: pt cut from $40 to $30: FBR Capital
  • ESV: pt cut from $45 to $25: FBR Capital
  • RDC: pt cut from $36 to $30: FBR Capital

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