MAY 21, 2015
US futures drift lower at this 7AM hour as investors await a plethora of economic data today including weekly jobless claims and PMI data. Later today we hear from two voting Fed members ahead of a speech by Janet Yellen on Friday.
NEWS:
- ESLT: NICE: Elbit to buy cyber and intelligence division from NICE
- CVS: OCR: CVS in advanced talks to buy Omnicare, reports Bloomberg
- TSM:TSMC to manufacture fingerprint sensors for next iPhone, reports digitimes
- QCOM:Qualcomm to step out of TSMC top-5 client list in 2H15, reports digitimes
- TSLA: Tesla’s battery may hit $1 b faster than iPhone, reports the economictimes
- D: announces public offering of 2.8M common shares
- BLUE: announces positive LentiGlobin clinical data
- INSY: top prescribers arrested on drug charges and healthcare fraud
ON THE ECONOMIC CALENDAR:
- 8:30AM: Weekly Jobless Claims
- 8:30AM: Chicago Fed National Activity Index
- 9:45AM: PMI Manufacturing Index Flash
- 9:45AM: Bloomberg Consumer Comfort Index
- 10AM: Philly Fed Business Outlook
- 10AM: Existing Home Sales
- 10AM: Leading Indicators
- 10:30AM: EIA Natural Gas Inventory
- 11AM: Kansas City Fed Manufacturing Survey
- 1:30PM: Fed Fisher speaks on euro-zone economy (voting member)
- 4:30PM: Money Supply and Fed Balance Sheet
- 7PM EST: Fed Williams speaks on central bank reform (voting member)
EARNINGS:
- BBY: Q1 EPS of $0.37 beats by $0.08.Revenue of $8.56B beats by $100M: conference call 8AM EST
- DLTR:Q1 EPS of $0.71 misses by $0.04.Revenue of $2.2B in-line:conference call 9AM EST
RECAP OF SOME NOTABLE EARNINGS FROM LAST NIGHT:
- YOKU: Q1 EPADS of -RMB2.49 misses by RMB0.24.Revenue of RMB1.06B beats by RMB30M: strong guidance
- CRM:FQ1 EPS of $0.16 beats by $0.02.Revenue of $1.51B (+22.8% Y/Y) beats by $10M, strong guidance: free cast flow +60%
- WSM: Q1 EPS of $0.48 beats by $0.03.Revenue of $1.03B beats by $20M
- EGHT:FQ4 EPS of $0.05 beats by $0.01.Revenue of $43.53M beats by $0.4M
- LB: Q1 EPS of $0.61 beats by $0.01.Revenue of $2.51B misses by $30M
- BRKR: Q1 EPS of $0.14 beats by $0.04.Revenue of $353.5M misses by $16.26M: announces CFO leaving the company
- NTAP: FQ4 EPS of $0.65 misses by $0.07.Revenue of $1.54B misses by $50M: cutting 500 jobs
SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:
ACXM, ARO, BRCD, GMAN, GPS, HPQ, INTU, JMEI, LGF, MRVL, NWY, OESX, ROST, TFM
ANALYSTS’ RATINGS CHANGES:
UPGRADES:
- VOD: upgrade: reduce to neutral: Nomura
- CHTR: upgrade: hold to buy: Wunderlich: $221
- ILMN: upgrade: equal weight to overweight: Morgan Stanley: $162
- SSYS: upgrade: market perform to outperform: Oppenheimer: $50
DOWNGRADES:
- SFUN: downgrade: buy to hold: Brean Capital
- JASO: downgrade: buy to neutral: Roth Capital: $9
- NTAP: downgrade: equal weight to underweight: JP Morgan: $29
- NTAP: downgrade: buy to hold: Cantor: $35
- DDD: downgrade: outperform to perform: Oppenheimer
- BRKR: downgrade: outperform to market perform: William Blair
- BRKR: downgrade: buy to neutral: Mizuho: $22
- SRPT: downgrade: buy to neutral: BofA/Merrill
INITIATIONS:
- NKE: initiated: buy: Jefferies: $120
- BABA: intiated: outperform: Bernstein: $137
- ALKS: initiated: overweight: Barclays: $74
- ESPR: initiated: overweight: Barclays: $150
- ICPT: initiated: overweight: Barclays: $450
- DYN: initiated: outperform: RBC Capital: $42
- BURL: initiated: outperform: FBR Capital: $65
PRICE TARGET CHANGES:
- TGT: pt raised from $85 to $87: Telsey
- CRM: pt range raised from $75-80 to $90-95: Wells Fargo
- CRM: pt raised from $80 to $85: UBS
- SCOR: pt raised from $53 to $58: Telsey
- MBLY: pt raised from $62 to $70: Citigroup
- NFLX: pt raised from $584 to $722: Citigroup
- YOKU: pt raised from $20 to $26: Brean Capital