FOMC | Morning News

fp1205_santastockrally_ccDECEMBER 16, 2015

Is the Santa Claus rally upon us or will the Grinch steal Christmas? US futures trading higher at this hour with global markets in the green. Focus today is on the FOMC.  A hike in the interest rates is expected at 2PM EST when the Fed’s two-day policy meeting concludes later today, marking the end of a decade of near zero interest rates. Overnight, crude traded modestly lower ahead of EIA petroleum inventories due out at 10:30AM EST.

NEWS:

  • AAPL: announces shutdown of Topsy
  • VRX: slashes adj Q4 EPS from $4.00-4.20 to $2.55-$2.65 and revenue from $3.25B-3.45B to #2.7B-2.8B
  • ARRY: announces that binimetinib Phase 3 trial met primary endpoint

THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 8:30AM: Housing Starts
  • 9:15AM: Industrial Production
  • 9:45AM: PMI Manufacturing Index Flash
  • 10:30AM: EIA Petroleum Inventories
  • 2PM: FOMC Announcement
  • 2PM: Yellen Press Conference

A NOTABLE EARNING REPORTED TODAY BEFORE THE OPENING:

  • JOY:FQ4 EPS of $0.43 beats by $0.01: revenue of $865.57M beats by $74.43M: revenue -23.4% y/y

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

  • APOG, FDX, JBL, MLHR, ORCL, PIR, WOR

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • CEVA: upgrade: hold to buy: Wunderlich: $28
  • NWL: upgrade: outperform to top pick: RBC Capital: pt raised from $51 to $60
  • NOC: upgrade: neutral to overweight: JP Morgan: pt raised from $210 to $212
  • CVX: upgrade: hold to buy: Argus: $100
  • DFS: upgrade: hold to buy: Argus: $60
  • KIM: upgrade: hold to buy: Argus: $29
  • VLO: upgrade: hold to buy: Argus: $78
  • BLKB: upgrade: neutral to buy: B Riley
  • CIB: upgrade: hold to buy: HSBC
  • CHRW: upgrade: hold to buy: Stifel: $78
  • LSTR: upgrade: hold to buy: Stifel: $69
  • UACL: upgrade: hold to buy: Stifel: $19
  • CPT: upgrade: sector weight to overweight: KeyBanc

DOWNGRADES:

  • HPY: downgrade: buy to neutral: SunTrust: $100
  • CAB: downgrade: buy to neutral: SunTrust
  • NBL: downgrade: buy to hold: Argus:
  • RPXC: downgrade: outperform to neutral: Baird: pt cut from $18 to $14
  • GRUB: downgrade: outperform market perform: Northland
  • GD; downgrade: overweight to neutral: JP Morgan: pt cut from $170 to $157
  • JAH: downgrade: top pick to sector perform: RBC Capital; $60
  • DOV: downgrade: outperform to market perform: William Blair: pt cut from $71 to $66
  • KMT: downgrade: neutral to underperform: Longbow: $16.50

INITIATIONS:

  • CSL: initiated: buy: Wunderlich: $110$UNH: initiated: outperform: Credit Suisse: $133
  • CAG: initiated: buy: Jefferies: $50
  • DF: initiated: buy: Jefferies: $21
  • HCA: initiated: outperform: Credit Suisse: $75
  • CNC: initiated: outperform: Credit Suisse: $65
  • UNH: initiated: outperform: Credit Suisse: $133
  • ABEO: initiated: buy: Maxim Group: $6
  • CSLT: initiated: buy: Topeka Capital: $6.50

PRICE TARGET CHANGES:

  • STZ: pt raised from $148 to $165: RBC Capital
  • SCTY: pt raised from $55 to $65: Roth Capital
  • ESTE: pt raised from $20 to $22: Imperial Capital
  • GPN: pt raised from $68 to $80: Oppenheimer
  • FN: pt raised from $26 to $28: Needham
  • MMM: pt cut from $140 to $136: RBC Capital
  • AGCO: pt cut from $49 to $46: RBC Capital
  • CVTI: pt cut from $40 to $34: Cowen
  • QCOM: pt cut from $69 to $67: Cowen
  • QCOM: pt cut from $61 to $52: Topeka Capital
  • PAY: pt cut from$38 to $32: Imperial Capital
  • WCC: pt cut from $55 to $53: RBC Capital

 

 

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