China Woes | Morning News

china bull_bear-2SEPTEMBER 1, 2015

US futures down sharply at this 7AM hour as it looks like another stormy day for world markets after data showed China’s manufacturing sector at multi year lows..China’s official PMI fell to 49.7 in August from the previous month’s reading of 50.0, while the Caixin China manufacturing PMI showed a final reading of 47.3 in August, the lowest since March 2009. Meanwhile, eurozone manufacturing growth, missed expectations, easing to 52.3 last month, despite factories barely raising prices, adding to the ECB’s woes as it battles to spur expansion and inflation. Overnight, Oil prices also got hit, moving sharply lower as investors cover short positions and take profits following an 8% rise yesterday.

NEWS:

  • VRX: AZN: Valeant, AstraZeneca announce agreement  to partner on brodalumab
  • ALXN:The EC approves Alexion Pharmaceuticals’  Strensiq for long term enzyme replacement therapy in patients with pediatric-onset HPP
  • CP: raises size of  buyback allowance from 9.14M to 11.93M
  • VIA: VIAB: Video Music Award lose half million viewers from last year
  • SUNE: Point72 discloses 5.1% stake in SunEdison
  • TRVN: announces positive results from phase 2b clinical trial of pain medication candidate TRV130
  • GPRO: announces an update its camera software with a tool for quickly creating YouTube, Facebook videos
  • PYPL: consumer product chief leaves the company
  • LVS: WYNN: MGM: MPEL: Macau August casino revenue down 35.5%
  • SO: CSIQ: Southern Co announces purchase of 51% stake in Canadian Solar Caliifornia project

ON THE ECONOMIC CALENDAR:

  • VARIOUS TIMES: Auto Sales
  • 8:30AM: Gallup US ECI
  • 8:55AM: Redbook Chain Store Sales
  • 9:45AM: PMI Manufacturing Index
  • 10AM: ISM Manufacturing Index
  • 10AM: Construction Spending
  • 1:10PM: Fed’s Rosengren speaks “Economic Outlook” (he is not a voting member)

RECAP OF SOME NOTABLE EARNINGS LAST NIGHT AFTER THE CLOSE:

  • BV:FQ1 EPS of -$0.06 beats by $0.01: revenue of $48.88M beats by $0.18M
  • ADEP: FQ4 EPS of -$0.10 misses by $0.03: revenue of $13.88M misses by $0.52M
  • MTRX:FQ4 EPS of $0.40 beats by $0.13: revenue of $370.5M misses by $7.95M: guidance in-line

NOTABLE EARNINGS AFTER THE CLOSE TODAY:

  • AVAV, AMBA, BOBE, EXA, GWRE, HRB, PRGN, QIHU, SCVL

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • ZBRA: upgrade: in-line to outperform: Imperial Capital: $115
  • CYBR: upgrade: neutral to overweight: Piper Jaffray: $70
  • INCR: upgrade: hold to buy: Jefferies: $51
  • VMW: upgrade: neutral to outperform: Baird: $95
  • ALKS: upgrade: equal weight to overweight: Morgan Stanley: $85
  • CALM: upgrade: hold to buy: BB&T: $62
  • AHP: upgrade: hold to buy: Canaccord: $21
  • CPA: upgrade; hold to buy: Deutsche Bank: $65
  • DAL: upgrade: hold to buy: Deutsche Bank: $50
  • AAL: upgrade: hold to buy: Deutsche Bank: $50

DOWNGRADES:

  • FCX: downgrade: buy to neutral: Citi:
  • ENDP: downgrade: overweight to equal weight: Morgan Stanley: $85

INITIATIONS:

  • FSLR: initiated: overweight: Barclays: $71
  • MKC: initiated: buy: BB&T: $99
  • VER: initiated: buy: Goldman: $9.50

PRICE TARGET CHANGES:

  • NFLX: pt raised to $133: BofA/Merrill
  • NX: pt cut from $23.50 to $22: Imperial Capital
  • BONT: pt cut from $4 to $2: Imperial Capital
  • VMW: pt cut from $100 to $95: Mizuho
  • MON: pt cut from $141 to $126: Credit Suisse

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