Good Morning Wall Street, 04.01.2015

US futures turning mixed at this 6AM hour as traders await a glut of economic data. ADP will offer its widely watching estimate, and PMI and ISM will give investors a look into recent manufacturing. Weak demand hit Chinese manufacturing overnight reinforcing the case for more easing. Oil continues its slump on fears that Iran’s oil will flood the market. The drop in oil continues to put pressure on oil companies as they begin a first round of layoffs.

EARNINGS:

  • MON:FQ2 EPS of $2.90 misses by $0.03.Revenue of $5.2B (-10.8% Y/Y) misses by $380M: guidance sees FY15 EPS in low end of $5.75-$6.00 range

ON THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 8:15AM: Employment Report
  • 8:30AM: Gallup US Job Creation Index
  • 9:45AM: PMI Manufacturing Index
  • 10AM: ISM Manufacturing Index: expectation for a 52.5% reading
  • 10AM: Construction Spending: forecast +0.1% after last reading of -1.1%
  • 10:30AM: EIA Petroleum Status Report
  • various times: Motor Vehicle Sales

NEWS:

  • AAPL: Citigroup adds Apple to it’s US Focus List, keeps buy rating and $145 pt
  • AAPL:Apple announces Chinese iPhone and iPad trade-in program, reports Apple Insider
  • MGM: WYNN: LVS: MPEL: Macau reports March casino revenue down 39.4%
  • SRPT: appoints Edward Kaye MD, as interim CEO: update conference call 8AM EST
  • GOOG: Wedbush sees downside risk to Q1 gross ad revenue growth
  • AMRN: estimates lowered at SunTrush
  • PNRA: UBS see possible $265 pt if franchising expands
  • TEVA: announces FDA approval of ProAir RespiClick
  • NFLX: Baird out positive on Netflix: $505 pt
  • MSFT: Goldman out negative on Microsoft: reiterates sell rating: $38 pt

ANALYSTS RATINGS CHANGES:

UPGRADES:

  • XYL: upgrade: neutral to outperform: Boenning & Scattergoood: $40
  • SPLS: upgrade: equal weight to overweight: KeyBanc: $20

DOWNGRADES:

  • CA: downgrade: overweight to equal weight: Barclays: $35
  • KORS: downgrade: overweight to neutral: Piper Jaffray: pt cut from $89 to $70
  • ONNN: downgrade: neutral to sell: Goldman
  • DAL: downgrade; buy to hold: Deutsche Bank: pt cut$60 to $50
  • AAL: downgrade; buy to hold: Deutsche Bank: pt cut from $78 to $58
  • UAL: downgrade: buy to hold: Deutsche Bank: pt cut from $85 to $70
  • PIR: downgrade; equal weight to underweight: Morgan Stanley: pt cut from $13 to $11
  • BBT: downgrade: overweight to neutral: JPM: cuts pt to $39

INITIATION:

  • TWTR: initiated: buy: Jefferies: $65 (resistance, 51.87 for a move to 55)
  • KMI: initiated: buy: Stifel: $47
  • ZU: initiated: outperform: Opco: $17
  • AWAY: initiated: long term buy: Hilliard Lyons: $36
  • SBUX: initiated: neutral: Credit Suisse: $97

PRICE TARGET CHANGES

  • MOS: pt cut from $58 to $56: Stifel
  • BABA: pt cut from $112 to $105: Opco
  • DYAX: pt raised from $16 to $25: Leerink
  • DYAX: pt raised from $16 to $30: BofA/Merrill
  • DYAX: pt raised from $14 to $26: Opco

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