Earnings take off | Morning News

APRIL 14, 2015

US future slipping at this 7AM hour as investors await earnings before the opening from JPM and WFC, the first big banks to reports, and JNJ.  Also on the docent today will be important economic data on retail sales which have fallen in the 3 months that ended in Feb. The expectation for March is +1.1% and a miss could raise concerns. Oil prices firmed up overnight with the hopes that US shale production has topped after US shale oil output recorded its first monthly decline in 4 years.

ON THE ECONOMIC CALENDAR:

  • 8:30AM: Producer Price Index for March: expectation +0.3%: ACTUAL +0.2%
  • 8:30AM: Retail Sales: expectation +1.1%: ACTUAL +0.9%
  • 8:30AM: Retail Sales x-Autos:  expectation +0.7%: ACTUAL +0.4%
  • 8:55AM: Redbook Chain Store Sales
  • 9AM: NFIB Small Business Optimism Index
  • 10AM: Business Inventories: expectation +0.3%

EARNINGS:

  • FAST: FQ1 EPS of $0.43 beats by $0.02.Revenue of $953.32M (+8.8% Y/Y) misses by $1.87M: conference call 10AM EST
  • JPM: Q1 EPS of $1.58 beats by $0.18.Revenue of $24.8B (+3.9% Y/Y) beats by $300M: raises quarterly dividend from .40 to .44/share: profits hurt by stronger dollar:  conference call 8:30AM EST
  • WFC:Q1 EPS of $1.04 beats by $0.06.Revenue of $21.3B (+3.3% Y/Y) beats by $60M: conference call 10AM EST
  • JNJ: Q1 EPS of $1.56 beats by $0.02.Revenue of $17.37B (-4.1% Y/Y) beats by $60M:  cuts FY15 adjusted EPS to $6.04-$6.19 from $6.12-$6.27: conference call 8:30AM EST

SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY: BPFH, CSX, DSY, INTC, LLTC, SLP

SOME NOTABLE EARNINGS BEFORE THE MARKET OPENS TOMORROW: ASML, BAC, DAL, PNC, PGR, TITN, USB, WSO

NEWS:

  • NOK: ALU: Nokia announces “advanced” merger talks with Alcatel-Lucent,reports the wsj
  • AMZN: Amazon announced publishing deal with Harper Collins
  • LMT: BA: Lockheed and Boeing team up and introduce new rocket to replace  Russian made engines
  • BHP: RIO: VALE: S&P places iron ore miners on “credit watch negative”, cuts iron ore forecasts, reports business insider
  • GOOG: GOOGL: Google Malasia service disrupted by hackers, reports reuters
  • GOOG: GOOGL: Norway’s Opera Software targets 350M mobile browser users by 2017, reports reuters
  • OMER: announces OMS721 approved for compassionate use in Europe
  • IBB: GILD: US prescription drug spending rose 13% in 2014, the highest being hep C drugs, reports reuters
  • GWPH: Cowen out positive on the stock on new Epidiolex data released by the American Academy of Neurology
  • OCN: “expects to be profitable in 2015” announces CEO Farris
  • UA: Canaccord out positive on the company: reaffirms buy rating: $97
  • CREE: Cree announces new LED lighting module that promises 30% higher performance

ANALYSTS RATINGS CHANGES:

UPGRADES:

  • PAY: upgrade: neutral to buy: Goldman: $44
  • QCOM: upgrade; neutral to buy: BofA/Merrill: $80
  • WDC: upgrade: neutral to buy: BofA/Merrill: $117
  • URBN: upgrade: market perform to outperform: BMO Capital: $53
  • STX: upgrade: underperform to neutral: BofA/Merrill

DOWNGRADES:

  • RS: downgrade: overweight to sector weight: KeyBanc

INITIATIONS:

  • CCE: initiated: negative: Susquehanna: $33
  • QURE: initiated: buy: Roth Capital: $38
  • GMCR: initiated: positive: Susquehanna: $154

PRICE TARGET CHANGES:

  • NFLX: pt raised from $360 to $487: Piper
  • NFLX: pt raised from $450 to $530: Canaccord
  • FB: pt raised from $72 to $80: BMO Capital
  • NOW: pt raised from $84 to $96: Citigroup
  • SKUL: pt raised from $12 to $15: Northland
  • AAPL: pt raised from $145 to $150: Susquehanna
  • AAPL: pt raised from $135 to $145: Argus
  • EDU: pt raised from $25 to $29: JPM
  • GWPH: pt raised from $102 to $120: Leerink
  • AMZN: pt raised from $400 to $465: Jefferies

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