FOMC | Morning News

MAY 20, 2015

US futures hovering around the flat line at this 7AM hour after overnight markets traded mixed and investors await results from the FOMC later today and Janet Yellen’s upcoming speech on Friday.  At 10AM EST the DOJ will make their announcement on settlements with banks in FX probe.

NEWS:

  • YHOO: BABA: IRS is considering rule changes on spinoffs, reports Forbes ( YHOO denying this)
  • TWC: French telecom group, Altice looking at acquiring Time Warner Cable , reports reuters
  • SRPT: will begin rolling NDA submissions for eteplirsen
  • PBMD: announces positive clinical phase 2 trial of CAN-OO3 for ovarian cancer
  • XEC: announces secondary offering of 6M common shares
  • CRM: SAP: SAP’s CEO said it’s “unlikely” CRM will be bough, reports reuters
  • WHR: BUG: GMCR: SODA: Whirlpool and Anheuser-Busch launch InBev in Brazil, their all purpose beverage machine for hot, cold and carbonated drinks
  • PAA: Oil spill off California coast owned by PAA
  • EA: Mobile Gaming Head leaves company
  • VOD:Malone Says Liberty, Vodafone Make ‘Great Fit’ in Europe, reports bloomberg
  • UTX: looking to sell its Sikorsky Aircraft business, reports the wsj

ON THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 10:30AM: EIA Petroleum Inventories
  • 2PM: FOMC minutes

EARNINGS:

  • SPLS: Q1 EPS of $0.17 in-line.Revenue of $5.26B misses by $210M: conference call 8AM EST
  • HRL:FQ2 EPS of $0.67 beats by $0.04.Revenue of $2.28B misses by $120M: conference call 8AM EST
  • AEO: conference call 11AM EST
  • TGT: conference call 10:30AM EST
  • LOW: Q1 EPS of $0.70 misses by $0.04.Revenue of $14.13B misses by $140M: weak guidance: conference call 9AM EST

NOTABLE EARNINGS AFTER THE CLOSE TODAY:

NTAP, CRM, LB,  EGHT, BRS, CCM, GAIN, SNPS, WSM, YOKU

RECAP OF SOME NOTABLE EARNINGS FROM LAST NIGHT:

  • QIHU: Q1 EPADS of $0.57 beats by $0.08.Revenue of $384.4M beats by $6.28M: spending slows down: guidance in-line
  • ADSK: Q1 EPS of $0.30 beats by $0.02.Revenue of $646.5M beats by $9.94M: billing slowdown: weak gudiance
  • ETSY:Q1 EPS of -$0.84Revenue of $58.5M: gross merchandise sales slow down
  • CSC: Q4 EPS of $1.26 beats by $0.06.Revenue of $2.91B misses by $50M: strong guidance: splitting the company into two 

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • CSC: upgrade; underweight to equal weight; Morgan Stanley: $73
  • CSC: upgrade: underweight to neutral; JP Morgan:
  • APO: upgrade: underweight to equal weight: Morgan Stanley: $23
  • SPLK: upgrade: neutral to outperform: Macquarie: $87
  • CSOD: upgrade: neutral to strong buy: Needham
  • ULTI: upgrade: neutral to buy: Needham
  • SRPT: upgrade: neutral to buy: SunTrust: $33
  • SPRT: upgrade: hold to buy: Canaccord

DOWNGRADES:

  • STI: downgrade: market perform to underperform: Baird: $41
  • STI: downgrade: buy to market perform: Keefe Bruyette: $45
  • CMA: downgrade: neutral to underperform: Baird: NOTE pt raised from $40 to $44
  • ACHN: downgrade: outperform to market perform: JMP Securities
  • ACHN: downgrade: buy to neutral: UBS

INITIATIONS:

  • ESRX: initiated: neutral: Baird: $94
  • SUNE: initiated: outperform: Baird: $35
  • TERP: initiated: outperform: Baird: $45
  • CMCSA: reinstated: overweight: Credit Suisse: $68
  • DVN: initiated: outperform: Imperial Capital: $92
  • FEYE: initiated: buy: Evercore:  $50
  • MA: initiated: outperform: CLSA: $105
  • V: initiated: outperform: CLSA: $77′
  • LGF: initiated: buy: Jefferies: $37
  • WDAY: initiated: buy: Needham
  • HAWK: initiated: underperform: CLSA: $38

PRICE TARGET CHANGES:

  • WMT: pt cut from $87 to $83: Telsey
  • IMS: pt raised from $30 to $34: Leerink
  • TJX: pt raised from $71 to $75: FBR Capital
  • SRPT: pt raised from $22 to $45: Roth Capital
  • SRPT: pt raised from $15 to $20: RBC Capital
  • DKS: pt raised from $56 to $58: RBC Capital
  • PLKI: pt raised from $50 to $56: Piper
  • REGN: pt raised from $525 to $600: Canaccord

 

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