Jobs in Focus | Morning News

APRIL 7, 2015

US futures plunge following red arrows around the world after Yellen warned on overvaluation and sharply rising bond yields in Europe. Traders await tomorrows all important nonfarm payroll number.  Oil trading positive for the third day in a row.

NEWS:

  • C: BCS: JPM: RBS: Banks expected to settle FX probes for billions, reports the wall street journal
  • MSFT: Microsoft Mobile decreasing ordes to supply chains due to low demand, reports digitimes
  • LL: to halt Chinese laminate sales
  • GM:F: China sales fell 0.4% in April: Ford sales were flat in April

ON THE ECONOMIC CALENDAR:

  • various times: Chain Store Sales
  • 8:30AM: Weekly Jobless Claims: expectation 277K
  • 8:30AM: Gallup US Payroll to Population
  • 8:30 AM: Fed’s Evan interview ( Evans is a voting member)
  • 9:45AM: Bloomberg Consumer Comfort Index
  • 10:30AM: EIA Natural Gas Inventory
  • 3PM: Consumer Credit
  • 4:30PM: Money Supply and Fed Balance Sheet

EARNINGS:

  • CSIQ: Q1 EPS of $1.04 beats beats by $0.44: Revenue of $860.9M beats by $25.78M: guidance weak Q2 revenue $570-620M v. consensus $675.94M: conference call 8AM EST
  • BABA: Q1 EPS of $0.48 beats by $0.06: Revenue of  $2.81B beats by $30M:  considering taking a significant stake in Micromax: conference call 7:30AM EST
  • PCLN: Q1 EPS of $8.12 beats by $0.40: Revenue of $1.84B beats by $40M:
  • REGN:  Q1 EPS of $2.88 beats by $0.20: Revenue of $870M beats by $45.36M: FY15 Eylea U.S. net product sales up 30%-35% over FY14
  • WLT: Q1 EPS of-$1.08 beats by $0.41: Revenue of $290.92M misses by $35.55M
  • BDX: FQ2 EPS of $1.61 beats by $0.08: Revenue of $2.05B in-line: strong dollar have negative impact

RECAP OF SOME NOTABLE EARNINGS FROM LAST NIGHT:

  • TSLA: Q1 EPS of -$0.36 beats by $0.14. Revenue of $939.9M misses by $100.1M: affirms 2015 delivery guidance: Q2 guidance soft: quarterly free cash flow worsened from a =$455M in the Dec2014 quarter to =$558M in the March 2015 quarter. That’s a cash bleed of over $5 million per day! guidance sees achieving free cash flow by Q4
  • WFM: FQ2 EPS of $0.44 EPS  beats by $.01: Revenue of $3.6B misses by $50M: launching lower-cost chain: sees  revenue growth of +9% off a low-to-mid single digit comp. EBITDA margin of 9% is forecast
  • GMCR: FQ2 EPS of $1.03 misses by $0.02. Revenue of $1.1B misses by $20M: lower guidance

SOME NOTABLE EARNINGS AFTER THE CLOSE:

AHS, AMH, BEBE, BIOS, BKD, CERN, CNAT, CROX, DATA, EBS, ED, EGY, FRT, FTD, FUEL, GALE, GST, GXP, JAZZ, JMBA, MDRX, MDVN, MED, MOH, MTD, NHL, NOG, NUAN, NVDA, PCTY, PETX, PRO, RBA, RIGL, RMAX, TCX, XOMA, ZNGA

ANALYSTS’ RATINGS CHANGES:

Upgrades:

  • SODA: upgrade: neutral to buy: Roth Capital
  • FINL: upgrade; neutral to buy: Janney: pt raised from $26 to $30
  • WFM: upgrade: sector perform to outperform: RBC Capital: NOTE: pt cut from $54 to $51
  • DKS: upgrade: market perform to outperform: BMO Capital: $63

Downgrades:

  • TASR: downgrade: outperform to perform: Oppenheimer

Initiations:

  • INFI: initiated: buy: Deutsche Bank: $20

Price Target Changes:

  • FANG: pt raised from $90 to $95: Topeka
  • ZUMZ: pt cut from $42 to $36: Roth Capital
  • WFM: pt cut from $52 to $40: Credit Suisse
  • WFM: pt cut from $54 to $40: Deutsch Bank
  • GMCR: pt cut from $160 to $120: UBS
  • DDD: pt cut from $21 to $18: Piper
  • ALXN: pt cut from $215 to $213: Brean Capital
  • NUS: pt cut from $65 to $56: Citigroup

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