Bears Sharpen their Claws|Morning News

BullVsBearAUGUST 24, 2015

The bears sliced into world markets overnight and the US futures are joining the worldwide selloff at this 7AM hour, spiking down deep into the red as risk aversion widens its hold.  Overseas, the Shanghai dropped 8.5%, taking out 2015 gains. Meanwhile, oil easily broke the $40 mark, as crude prices fell 2.5%. Gold finding some stability at this level, trading down only 0.3%.

NEWS:

  • BA: Boeing Loses $85M Contract Over Ex-Im Bank Freeze, reports wsj
  • NFLX: Netflix partners with SoftBank in Japan, reports wsj
  • VTL: announced Friday after the close that its ELAD system liver treatment trial failed in late stage study
  • GM: Foreign Car Factories, including GM, Curb Output in China, reports wsj
  • FIT: announces entrance into Macys
  • CMG: Chipotle Plans One-Day, 4,000-Worker Hiring Binge, reports wsjbreifi
  • JOE: Saint Joe Co announces $300M stock repurchase plan
  • JOY: announced that the COO is leaving “for other opportunities”

BARRON’S WEEKEND RECAP OF SOME NOTABLE ARTICLES:

  • BLK: Blackrock is a buy, with a 20% return possible in a year
  • X: US Steel should turn a profit in the 4th quarter: could rally 60% within the next year
  • AXP: Next year could be challenging for American Express
  • M: Macys heading higher
  • USO: OIH: Oil is heading to $20
  • AAPL: Apple is a deal at this price for a company in a fundamentally healthy place
  • RCL: CCL: The cruise line sector is headed up

ON THE ECONOMIC CALENDAR:

  • 8:30AM: Chicago Fed National Activity Index

EARNINGS REPORTED BEFORE THE BELL THIS MORNING:

  • TOUR: Q2 EPS of -$0.52 beats by $0.01: revenue of $244.88M beats by $16.91M: revenue +112.1% Y/Y

SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:

  • PINC, QUNR

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • NKE: upgrade: market perform to outperform: Telsey Advisory Group: pt raised from $115 to $122
  • ANF: upgrade: equal weight to overweight: Piper Jaffray: $27
  • BAC: upgrade: perform to outperform: Keefe Bruyette: $20
  • SRPT: upgrade: equal weight to overweight: Piper Jaffray: $48
  • ZEUS: upgrade: hold to buy: Jefferies: pt raised from $14.50 to $16
  • CMA: upgrade: underperform to neutral: Baird: $44
  • BMY: upgrade: underweight to neutral: Piper Jaffray: $61
  • TCO: upgrade: perform to outperform: Oppenheimer: 85
  • DWA: upgrade: neutral to buy: B Riley: $26

DOWNGRADES:

  • THOR: downgrade: outperform to market perform: Leerink:
  • THOR: downgrade: outperform to market perform: Raymond James:
  • CLR: downgrade: buy to neutral: BofA/Merrill: pt cut from $70 to $44
  • VLO: downgrade: neutral to underperform: BofA/Merrill:  NOTE: pt raised from $64 to $68
  • WLL: downgrade: buy to neutral: BofA/Merrill: pt cut from $38 to $27
  • EVEP: downgrade: neutral to underperform: Baird: pt cut from $13 to $5
  • GWW: downgrade: outperform to neutral: Baird: pt cut from $258 to $240
  • FAST: downgrade: outperform to neutral: Baird: pt cut from $45 to $44
  • KGC: downgrade: sector perform to underperform: RBC Capital: pt cut from $3.25 to $2.25
  • VTL: downgrade: outperform to neutral: Credit Suisse: pt cut from $25 to $9
  • RES: downgrade: buy to neutral: SunTrust: $9
  • SLCA: downgrade: buy to neutral: $20

INITIATIONS:

  • TOWN: initiated: buy: Keefe Bruyette: $19
  • VTVT: initiated: buy: Stifel: $17

PRICE TARGET CHANGES:

  • WLK: pt cut from $84 to $65: Cowen
  • CYH: pt cut from $84 to $82: Mizuho
  • TFM: pt cut from $30 to $23: RBC Capital
  • DE: pt cut from $90 to $85: RBC Capital

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