ILMN | Morning News

520119b5bd3165a931013fb67d9d784dOCTOBER 06, 2015

US futures pulling back at this 8AM hour as markets trade mixed in choppy action around the world. As traders await the kickoff of earnings seasons on Thursday, they can turn their attention to a couple of Fed speeches today and tonight as well as trade deficit readings and Chain Store Sales data.  Overnight, crude traded in chopping action and is skirting along the flat line ahead of US inventory data.

NEWS:

  • SWKS: Skyworks to acquire PMC-Sierrra for $2B
  • RKUS: to join S&P small cap 600, replacing CYBX
  • CYBX: to join S&P 400, replacing Home Properties (to be acquired)
  • RDWR: warns on Q3 revenue and EPS
  • DD: CEO Kullman will retire on Oct 16
  • TWTR: Brean Capital out positive on risk/reward: reiterated buy and $47 pt
  • BABA: call by US group to put Alibaba giant, Taobao site, back on “notorious” fakes list
  • AMZN: DATA: QLIK: plans to use this week’s invent conference to unveil their cloud-based business intelligence/analystics solution aimed at nontechnical workers
  • AMZN:44% of online shoppers start at Amazon, reports re/code
  • ALKS: the FDA has approved Alkermes’ Aristada treatment for application with schizophrenia patients
  • XLK: The¬†European Court of Justice’s rules that a 15-year-old data-sharing pact between the EU & US is invalid. The decision cannot be appealed
  • SSTK:Red Bull Media House Selects Shutterstock as Exclusive Distributor of Exceptional Video Collection, reports prnewswire
  • FB: announces plans to launch a satellite in partnership with France’s Eutelsat Communications to bring connectivity to large parts of sub-Saharan Africa, reports re/code
  • EXXI: announces $500M mixed securities shelf offering
  • SUNE: announces that its cutting 15% of its workforce
  • ARNA: CEO retires at board’s request
  • INFI: lowers FY15 revenue guidance to $100M-$120M from $105M-$190M
  • FDX: announces that it will raised fuel surcharges just ahead of the busy holiday season, reports wsj
  • ILMN:announces preliminary Q3: the company generated about $550 in revenues in Q3, up 14% Y/Y, below the consensus estimate of $569M: guides Q4’s top line to be ~$570M below the consensus view of $603M

ON THE ECONOMIC CALENDAR:

  • 8:30AM: Gallup US ECI
  • 8:30AM: International Trade
  • 8:55AM: Redbook Chain Store Sales
  • 9:15AM: Fed’s George speaks on “Payments System”
  • 1PM: $24B, 3-Year Note Auction
  • 3:30PM: Fed’s Williams speaks on “Economic Outlook” (voting member)

EARNINGS REPORTED BEFORE THE OPENING THIS MORNING:

  • PEP: Q3 EPS of $1.35 beats by $0.09: revenue of $16.33B beats by $180M: revenue -5.2% Y/Y:

SOME NOTABLE EARNINGS TO REPORT AFTER THE CLOSE TODAY:

  • NG, YUM

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • LEAF: upgrade: market perform to outperform: Keefe Bruyette: $55
  • MPEL: upgrade: sell to hold: Deutsche Bank: $16
  • FDX: upgrade: hold to buy: Stifel: $172
  • SKT: upgrade: underperform to neutral: BofA/Merrill: pt raised from $35 to $38

DOWNGRADES:

  • ILMN: downgrade: buy to neutral: Mizuho: pt cut from $250 to $150
  • CMI: downgrade: outperform to market perform: BMO Capital: $110

INITIATIONS:

  • OCAT: initiated: outperform: Raymond James: $8
  • MHK: initiated: conviction buy: Goldman: $232
  • MAS: initiated: conviction buy: Goldman:
  • PYPL: initiated: outperform: William Blair
  • OC: initiated: sell: Goldman: $40
  • WHR: initiated: neutral: Goldman: $171
  • FFIV: initiated: sell: Citi: $105
  • TMO: initiated: buy: Argus: $145

PRICE TARGET CHANGES:

  • VNR: pt cut from $15 to $12: Wunderlich
  • TWTR: pt cut from $52 to $40: Pacific Crest
  • EXAS: pt cut from $25 to $14: Stephens
  • ILMN: pt cut from $235 to $175: Stifel
  • ILMN: pt cut from $250 to $200: UBS
  • CBS: pt cut from $67 to $65: Topeka Capital
  • FANG: pt cut from $92 to $88: Topeka Capital
  • XEC: pt cut from $120 to $115: Topeka
  • OREX: pt cut from $21 to $11: Piper Jaffray
  • SWKS: pt cut from $120 to $110: Topeka

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