GOOG | Morning News

China Cuts Reserve RequirementsAUGUST 26. 2015

US futures poised to open considerably higher at this 7AM hour as the roller coaster ride continues. Europe off their lows but still trading in the red. The Shanghai saw a whippy market which closed down 1.3% even after China announced plans to inject $21.8B into the economy.  Durable goods reporting before the opening and Petroleum Inventories reporting at 10:30AM are on the economic calendar for the day. Crude is stable as the commodity takes a breather from its recent sell-off.

NEWS:

  • AMZN:Amazon expands Prime Now, offers U.S. alcohol for first time, reports Reuters
  • LLY: Eli Lily reports that the US courts have ruled favorable on their Alimta Patent, reports Nasdaq
  • COHR: Coherent announces $25M buyback
  • SLB:CAM: Schlumberger to acquire Cameron in $14.8B deal
  • SRPT: FDA files eteplirsen NDA for the treatment of DMD. Eteplirsen has been granted Priority Review status.
  • OSK: announces $6.75B contract with US Army for Humbee replacement vehicles
  • GOOG: AMZN: FB: BABA: PCLN: named at Internet Top Picks at Cantor
  • ILMN: added to Focus List at Citi
  • RIG: Transocean board proposes cancellation of the third and fourth installments of its dividend
  • QCOM: VOD: Qualcomm to sell UK L-Band spectrum to Vodafone, Hutchinson, reports Reuters

ON THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 8:30AM: Durable Goods
  • 10:30 EIA Petroleum Inventories
  • 11:30AM: #13B, 2 Year FRN Auction
  • 1PM: $35B, 5 Year Note Auction

EARNINGS REPORTED BEFORE THE OPENING TODAY:

  • SQM: Q2 EPS of $0.32 beats by $0.02: revenue of $484.2M misses by $3.94M: revenue -7.3% Y/Y
  • EXPR: Q2 EPS of $0.25 beats by $0.09: revenue of $535.58M beats by $30.75M: revenue +11.3% Y/Y: guides higher on both FY15 revenue and Q3 EPS
  • FRO:Q2 EPS of $0.11 misses by $0.06: revenue of $102.29M beats by $7.09M: revenue +118.3% Y/Y

RECAP OF SOME NOTABLE EARNINGS LAST NIGHT AFTER THE CLOSE:

  • NMBL: FQ2 EPS of -$0.10 beats by $0.01: revenue of $80.1M beats by $1.53M: revenue +49.0% Y/Y: soft EPS guidance: in-line revenue guidance
  • DY: FQ4 EPS of $0.97 beats by $0.14: revenue of $578.5M beats by $11.38M: revenue +20.0% Y/Y: strong guidance on both EPS and revenue
  • SLH: FQ4 EPS of $0.81 beats by $0.01: revenue of $297.1M beats by $8.16M: revenue +10.9% Y/Y

SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:

  • GES, WDAY, NQ, SKY, VNET, QADA, NCTY

ANALYST’ RATINGS CHANGES:

UPGRADES:

  • GOOGL: GOOG: upgrade: buy to conviction buy: Goldman: pt raised from $660 to $800
  • MPC: upgrade: neutral to overweight; JP Morgan: $61
  • BBY: upgrade: buy to strong buy: Raymond James: $40
  • PLCE: upgrade: neutral to positive: Susquehanna
  • NKE; upgrade: neutral to positive: Susquehanna: $122
  • AMZN: upgrade: hold to buy: Evercore: $585
  • KMG: upgrade: neutral to accumulate: Global Hunter: $26
  • RGC: upgrade: long term buy to buy: Hillard Lyons: $22
  • COO: upgrade: sector weight to overweight: KeyBanc
  • CFG: upgrade: neutral to buy: Guggenheim
  • FIS: upgrade: market perfrom to outperform: RBC Capital: $78
  • NMBL: upgrade: hold to buy: Wunderlich: $33
  • CIEN: upgrade: market perform to outperform: Raymond James
  • CFG: upgrade: neutral to buy: Guggenheim: $28

DOWNGRADES:

  • RRMS: downgrade: buy to hold: US Capital Advisors: pt cut from $57 to $35
  • WETF: downgrade: hold to sell: Citigroup: $15

INITIATIONS:

  • NEP: initiated: outperform: Baird: $43
  • TSL: initiated: sell: Axiom: $6
  • SFM: initiated: hold: Jefferies: $22

PRICE TARGET CHANGES:

  • SEMG: pt cut from $84 to $60: US Capital Advisory
  • SPRT: pt cut from $50 to $45: Roth Capital
  • DSW: pt cut from $43 to $38: Telsey Advisory Group
  • VIAB: pt cut from $57 to $43: Topeka Capital

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