AMZN | Morning News

stock market newsJULY 24, 2015

US futures edging up at this 7AM hour as traders focus on the stellar earnings out of AMZN, looking past several disappointing earnings earlier in the week and  the downturn in commodities which saw gold, copper and aluminum at multi-year lows. Overnight, gold prices slid further, breaking key support and bringing the commodity to as low as $1072/ounce. Asian markets lower after the China PMI dropped to 48.2, the lowest reading since April 2014 and the fifth month of an under 50 reading.

NEWS:

  • T: DTV: Fcc approves the AT&T/DirecTV merger, reports reuters
  • TRUE: cuts guidance Q2 and FY15 below analysts expectation
  • GSK: European drug regulators approve first malaria vaccine, reports the bbc
  • REGN: SNY: Praluent recommended for approval in Europe
  • ANTM: CI: Anthem announces agreement to purchase Cigna for more than $48B ($103.40 cash and 0.5152 Anthem shares for each share of Cigna)

ON THE ECONOMIC CALENDAR:

  • 9:45AM: PMI Manufacturing Index Flash
  • 10AM: New Home Sales

EARNINGS REPORTED BEFORE THE OPENING TODAY:

  • SAVE: Q2 EPS of $1.03 beats by $0.02.Revenue of $553.42M (+10.8% Y/Y) misses by $1.64M
  • COG:Q2 EPS of $0.03 misses by $0.01.Revenue of $306.3M (-42.6% Y/Y) misses by $66.69M
  • XRX: Q2 EPS of $0.22 in-line.Revenue of $4.59B (-7.1% Y/Y) misses by $50M
  • AAL: Q2 EPS of $2.62 beats by $0.02.Revenue of $10.83B (-4.7% Y/Y) misses by $30M
  • BIIB: Q2 EPS of $4.22 beats by $0.12.Revenue of $2.59B (+7.0% Y/Y) misses by $120M
  • ECA: Q2 EPS of -$0.20 misses by $0.05.Revenue of $830M (-47.8% Y/Y) misses by $290M
  • B: Q2 EPS of $0.62 beats by $0.01.Revenue of $315M (-2.2% Y/Y) misses by $4.83M
  • WBC: Q2 EPS of $1.40 misses by $0.04.Revenue of $661.1M (-10.1% Y/Y) misses by $2.05M

RECAP OF SOME NOTABLE EARNINGS LAST NIGHT:

  • AMZN: Q2 EPS of $0.19 beats by $0.33: revenue of $23.18B beats by $790M: revenue +19.9 Y/Y: guides higher
  • V: Q2 EPS of $0.74 beats by $0.15: revenue of $3.52B beats by $160M: revenue +11.4% Y/Y:
  • SBUX: Q2 EPS of $0.42 beats by $0.01.Revenue of $4.88B beats by $20M: revenue +17.6% Y/Y: Starbucks and PepsiCo to partner in Latin America: guides in-line
  • P: Q2 EPS of $0.05 beats by $0.03: revenue of $285.6M beats by $2.54M: revenue +30.5% Y/Y: strong guidance
  • T: Q2 EPS of $0.69 beats by $0.06.Revenue of $33.01B in-line
  • CBI: Q2 EPS of $1.55 beats by $0.14.Revenue of $3.21B misses by $300M
  • JNPR: Q2 EPS of $0.53 beats by $0.13.Revenue of $1.22B  beats by $110M: solid guidance
  • SWKS: FQ3 EPS of $1.34 beats by $0.05: revenue of $810M beats by $8.43M: revenue +38.0%  Y/Y: guides above estimates
  • TRIP: Q2 EPS of $0.54 misses by $0.01.Revenue of $405M misses by $8.03M: guidance lowered
  • LOGM: Q2 EPS of $0.35 beats by $0.02.Revenue of $64.8M (+17.9% Y/Y) beats by $0.79M: strong guidance
  • N:Q2 EPS of $0.02 in-line.Revenue of $177.28M beats by $5.13M: revenue +34.5% Y/Y: raises guidance
  • ALGN: Q2 EPS of $0.39 beats by $0.02.Revenue of $209.5M (+8.8% Y/Y) misses by $0.29M: guides below estimates
  • MKTO: Q2 EPS of -$0.16 beats by $0.07: revenue of $50.7M beats by $0.64M: revenue +40.7% Y/Y: raises guidance
  • COF: Q2 EPS of $1.78 misses by $0.19.Revenue of $5.7B (+4.2% Y/Y) misses by $40M
  • ETFC: Q2 EPS of $0.25 misses by $0.02.Revenue of $445M (+1.6% Y/Y) misses by $1.95M
  • QLIK: Q2 EPS of -$0.01 misses by $0.01.Revenue of $145.8M (+10.8% Y/Y) beats by $9.18M: revenue guidance higher
  • PFPT: Q2 EPS of -$0.09 in-line.Revenue of $63.54M (+36.9% Y/Y) beats by $2.63M
  • ATHN: Q2 EPS of $0.32 beats by $0.07.Revenue of $224.69M (+20.9% Y/Y) misses by $1.88M
  • CB: Q2 EPS of $2.14 beats by $0.28.Revenue of $3.31B (+2.8% Y/Y) beats by $30M

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • AMZN: upgrade: equal weight to overweight: Barclays: pt raised from $412 to $700
  • AMZN: upgrade: neutral to buy: B Riley: $646
  • UAL: upgrade: hold to buy: Deutsche Bank: $72
  • DIS: upgrade: hold to buy: Topeka
  • SCTY: upgrade: neutral to outperform: Baird: pt raised from $61 to $71
  • UTL: upgrade; neutral to buy: Janney Capital: $39
  • JNPR: upgrade: underweight to neutral: MKM Partners: $28

DOWNGRADES:

  • COF: downgrade: outperform to market perform: Wells Fargo: pt range cut from $96-98 to $94-96
  • COF: downgrade: removed from conviction buy list: Goldman
  • M: downgrade: equal weight to underweight: Atlantic Equities
  • CF: downgrade: outperform to sector perform: RBC Capital: pt cut from $64 to $63
  • URI: downgrade: top pick to outperform: RBC Capital: pt cut from $110 to $94
  • URI: downgrade: outperform to market perform: Wells Fargo: pt range cut from $110-115 to $70-73
  • TRUE: downgrade: overweight to neutral: JP Morgan: pt cut from $23 to $12
  • TRUE: downgrade: outperform to sector perform: RBC Capital: pt cut from $23 to $9

INITIATIONS:

  • HAIN: initiated: buy: Maxim Group: $80
  • SVU: initiated: buy: Pivotal Research: $11

PRICE TARGET CHANGES:

  • AMZN: pt raised to $740: Morgan Stanley
  • AMZN: pt raised from $520 to $640: Piper Jaffray
  • AMZN: pt raised from $475 to $630: Baird
  • AMZN: pt raised from $500 to $650: Axiom Capital
  • AMZN: pt raised from $535 to $710: JP Morgan
  • AMZN: pt raised from $550 to $650: UBS
  • GILD: pt raised from $120 to $131: Piper Jaffray
  • PFPT: pt raised from $70 to $80: Summit Research
  • PFPT: pt raised from $67 to $80: FBR
  • PFPT: pt raised from $75 to $80: Wunderlich
  • UA: pt raised from $92 to $105: FBR Capital
  • UA: pt raised from $98 to $108: Telsey
  • UA: pt raised from $96 yo $114: Citi
  • UA: pt raised from $93 to $110: Deutsche Bank
  • V: pt raised from $70 to $80: FBR Capital
  • SWKS: pt raised from $115 to $120: Mizuho
  • SWKS: pt raised from $105 to $120: Topeka Capital
  • SWKS: pt raised from $110 to $120: Brean Capital
  • JNPR: pt raised from $31 to $36: Cantor
  • QLIK: pt raised from $42 to $50: Jefferies
  • OUTR: pt raised from $76 to $92: Piper Jaffray
  • VRX: pt raised from $255 to $285: UBS
  • TRIP: pt cut from $100 to $95: Piper Jaffray
  • WFM: pt cut from $52 to $47: Telsey Advisory Group
  • CAB: pt cut from $75 to $55: Northland

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