FOMC | Morning News

lionJULY 29, 2015

US futures trading higher at this 7AM hour.. Trader focus will be on the FOMC’s policy statement out today at 2PM, as investors sift through clues to determine when a rate liftoff will begin and how aggressive the tightening cycle will be. Asian markets were mostly positive as the roller coaster ride in the Shanghai continued, seeing the Chinese market up 3.5%. Overnight, gold extended it’s slide as the safe haven commodity fell to levels not seen since the last recession.

NEWS:

  • AMZN: Amazon proposes a slice of the sky for commercial drones, reports the wsj
  • BABA: Alibaba Plans $1B cloud computing push, reports wsj
  • BA: SpiceJet in talks with Boeing and Airbus to buy more than 100 jets with $11B price tag
  • NOK: Nokia introduces OXO, a 360-degree camera
  • MRK: FDA accepts Merck’s New Drug Application (NDA) for HCV combo  grazoprevir/elbasvir

ON THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 10AM: Pending Home Sales
  • 10:30AM: EIA Petroleum Inventories
  • 11:30AM: $15B, 2 Year FRN Auction
  • 1PM: $35B, 5 Year Note Auction
  • 2PM: FOMC Announcement

SOME NOTABLE EARNINGS OUT BEFORE THE OPENING :

  • HLT: Q2 EPS of $0.25 beats by $0.02: revenue of $2.92B in-line: revenue +9.4% Y/Y:
  • GD: Q2 EPS of $2.27 beats by $0.21.Revenue of $7.9B beats by $220M: raises FY15 continuing ops EPS view to $8.70-$8.80
  • JAH: Q2 EPS of $0.59 in-line.Revenue of $2.01B beats by $40M
  • HUM:Q2 EPS of $1.67 beats by $0.04.Revenue of $13.73B misses by $80M
  • DATA: Q2 EPS of $0.07 beats by $0.03.Revenue of $149.86M beats by $8.82M: revenue +65.3% Y/Y
  • AMED:Q2 EPS of $0.43 beats by $0.10.Revenue of $314.15M beats by $7.04M
  • MO: Q2 EPS of $0.74 beats by $0.03.Revenue of $4.88B beats by $130M
  • NOC: Q2 EPS of $2.47 beats by $0.11.Revenue of $5.89B misses by $40M
  • GRMN:Q2 EPS of $0.72 misses by $0.10.Revenue of $773.84M misses by $2.06M
  • CRI:Q2 EPS of $0.73 beats by $0.10.Revenue of $612.77M (+6.7% Y/Y) beats by $3.15M
  • ANTM: Q2 EPS of $3.10 beats by $0.35: revenue of $19.78B beats by $150M: revenue +8.5% Y/Y:
  • GRA: Q2 EPS of $1.19 beats by $0.02: revenue of $782.1M misses by $33.4M
  • CG:Q2 ENI of $0.55 beats by $0.01: revenue of $663M misses by $16M: revenue -26.3% Y/Y
  • SPW:Q2 EPS of $1.06 beats by $0.29: revenue of $1.07BNbeats by $30M
  • ROK: FQ3 EPS of $1.59 beats by $0.05.Revenue of $1.58B in-line
  • AMT: Q2 AFFO of $1.26 beats by $0.06.Revenue of $1.17B misses by $10M
  • TRI:Q2 EPS of $0.52 beats by $0.02.Revenue of $3.04B misses by $30M
  • Q: Q2 EPS of $0.78 beats by $0.08: revenue of $1.07B beats by $20M

RECAP OF SOME NOTABLE EARNINGS LAST NIGHT:

  • BWLD: Q2 EPS of $1.12 misses by $0.14: revenue of $426.39M misses by $3.4M: revenue +16.5% Y/Y: lowers guidance
  • APC: Q2 EPS of $0.01 beats by $0.52: revenue of $2.64B misses by $20M: revenue -40.5%Y/Y:
  • CTXS: Q2 EPS of $1.00 beats by $0.18: revenue of $796.76M beats by $6.39M: announces plans to change CEO: FY15 guidance is for revenue of $3.22B-$3.25B and EPS of $3.65-$3.75 vs. a consensus of $3.23B and $3.56
  • TWTR: Q2 EPS of $0.07 beats by $0.03: revenue of $502.4M beats by $21.12M: revenue +60.9 Y/Y: revenue guides in-line: Noto issues cautious remarks on user growth
  • YELP: Q2 EPS of -$0.02 misses by $0.03: revenue of $133.91M beats by $0.43M: guidance lowered
  • GILD: Q2 EPS of $3.15 beats by $0.44: revenue of $8.2B beats by $590M: revenue +25.6% Y/Y: raises revenue guidance
  • AKAM: Q2 EPS of $0.57 misses by $0.01: revenue of $540.72M in-line: soft guidance
  • PNRA: Q2 EPS of $1.61 misses by $0.02.Revenue of $676.66M misses by $2.41M: reaffirms guidance
  • CHRW :Q2 EPS of $0.94 beats by $0.08.Revenue of $3.55 misses by $140M
  • EW:Q2 EPS of $1.13 beats by $0.08: revenue of $616.8M beats by $11.83M: raises EPS guidance
  • X: Q2 EPS of -$0.79 misses by $0.14: revenue of $2.9B misses by $140M: revenue -34.1% Y/Y
  • ESRX: Q2 EPS of $1.44 beats by $0.04: revenue of $25.45B misses by $700M: raises guidance

NOTABLE EARNINGS REPORTING AFTER THE CLOSE:

  • ACGL, AEGN, AEL, AEM, ATW, BANC, BAX, BKCC, BLKB, BXP, CAVM, CBL, CEMP, CGI, CLD, CMO, CMPR, CNO, CNW, CROX, CSGP, CW, CWT, ELY, EQIX, EQY, ESRT, ESV, EXR, FARO, FB, FBP, FICO, FISV, HLS, HOLX, HOS, KEG, KEX, KGC, KRA, KRG, KS, MAR, MC, MCK, MDAS, MEOH, MET, MMLP, MTGE, MTW, MUR, NBIX, NE, NOW, O, OGS, OI, ORLY, OTEX, PDM, PEGA, PPC, PSA, PTC, PVA, QUIK, RKUS, SCTY, SFLY, SGMO, SKX, SPRT, SSNC, SSS, STAA, SU, TAL, TER, VRTX, WDC, WES, WFM, WGP, WLL, WMB, WYNN

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • SVU: upgrade: market perform to outperform: Telsey Group: $12
  • AMZN: upgrade: hold to buy: Stifel: $700
  • WSM: upgrade: neutral to outperform: JP Morgan
  • FEYE: upgrade: perform to outperform: Oppenheimer
  • DDD: upgrade: underperform to neutral: Longbow
  • SFM: upgrade: underperform to neutral: Longbow:

DOWNGRADES:

  • YELP: downgrade: overweight to equal weight: Morgan Stanley: $25
  • YELP: downgrade: neutral to underperform: BofA/Merrill
  • YELP: downgrade: outperform to perform: Oppenheimer
  • YELP: downgrade: buy to hold: Topeka
  • ADM: downgrade: buy to neutral: Citi:
  • RDWR: downgrade: outperform to sector perform: RBC Capital: pt cut from $29 to $20

INITIATIONS:

  • TIF: initiated: buy: Mizuho: $106
  • ENR: initiated: buy: BofA/Merrill: $46
  • TCON: initiated: buy: Roth Capital: $18

PRICE TARGET CHANGES:

  • ED: pt raised from $58 to $64: Mizuho
  • EW: pt raised from $155 to $168: JP Morgan
  • DNKN: pt raised from $55 to $62: Williams Capital Group
  • EGRX: pt raised from $94 to $119: Piper Jaffray
  • GILD: pt raised from $125 to $135: Deutsche Bank
  • GILD: pt raised from $131 to $134: Piper Jaffray
  • GILD: pt raised from $120 to $130: RBC Capital
  • GILD: pt raised from $116 to $133: JP Morgan
  • BMRN: pt raised from $147 to $163: Piper Jaffray
  • WCN: pt raised from $54 to $58: Imperial Capital
  • CTXS: pt raised from $72 to $80: FBR Capital
  • CTX: pt raised from $67 to $75: RBC Capital
  • JBLU: pt raised from $25 to $30: Imperial Capital
  • NLSN: pt raised from $50 to$54: RBC Capital
  • AKAM: pt cut from $88 to $80: UBS
  • TWTR: pt cut from $60 to $50: Deutsche Bank
  • TWTR: pt cut from $55 to $50: JP Morgan
  • TWTR: pt cut from $47 to $33: Bernstein
  • YELP: pt cut from $58 to $40: Brean Capital
  • YELP: pt cut from $46 to $30: Baird
  • PII: pt cut from $178 to $159: Wunderlich
  • SM: pt cut from $70 to $55: Topeka Capital
  • RDWR: pt cut from $28.50 to $25: Imperial Capital
  • GCA: pt cut from $14 to $7: Telsey Advisory Group
  • CLVT: pt cut from $60 to $44: Mizuho

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