Bond Focus | Morning News

JUNE 09.2015

US futures lose ground at this 7AM hour as the volatility in the bond markets increases and investors await JOLTs data after the opening (Job Openings and Labor Turnover survey) which should give last week’s jobs report an expanded look. Overnight, European and Asian markets fell into the red with traders raising concerns over the uncertainty of the timing of the US interest rate hike and the ever volatile Greek crisis.

NEWS:

  • PG:Henkel, Coty submit binding bids for P&G assets in the beauty business, reports reuter
  • OCLS: FDA clears Alevicyn SG spray gel
  • CPB: Campbell Soup to acquire Garden Fresh for $231M
  • CSCO: CERN: partner in next generations computing
  • AAPL: Gene Munster of Piper Jaffray sees Apple changes as positive
  • NEM: AU:  Newmont Mining announces purchase of Cripple Creek and Victor gold mine from AngloGold
  • BEBE: files to sell 46.9M share shelf registration
  • SAGE: announces positive SAGE-547 results, their postpartum depression drug
  • HSBC: plans to save $5B in the next two years by selling Brazilian and Turkish units and laying off up to 50K employees

ON THE ECONOMIC CALENDAR:

  • 8:55AM: Redbook Chain Store Sales
  • 9AM: NFIB Small Business Optimism Index
  • 10AM: JOLTs (Job Openings and Labor Turnover Survey)
  • 10AM: Wholesale Trade
  • 1PM: $24B 3 Year Note Auction

EARNINGS:

  • LULU: Q1 EPS of $0.34 beats by $0.01.Revenue of $423.5M beats by $4.56M: guidance strong: conference call 9AM EST
  • BURL: Q1 EPS of $0.41 in-line.Revenue of $1.18B misses by $40M: sets $200M share buyback program
  • HDS: Q1 EPS of $0.33 beats by $0.04.Revenue of $2.22B in-line: conference call 8AM EST
  • SAIC: Q1 EPS of $0.73 misses by $0.02.Revenue of $1.01B  beats by $27.5M: raises dividend by 10.7% to $0.31: conference call 8AM EST

SOME NOTABLE EARNINGS AFTER THE CLOSE:

  • GEF, LMNR, MFRM, SIGM, SURG

RECAP OF SOME NOTABLE EARNINGS FROM LAST NIGHT:

  • FCEL:FQ2 EPS of -$0.04 misses by $0.02.Revenue of $28.6M misses by $12.7M
  • PLAY: FQ1 EPS of $0.46 beats by $0.09.Revenue of $222.7M  beats by $6.44M
  • UNFI:FQ3 EPS of $0.83 may not be comparable to consensus of $0.85.Revenue of $2.11B misses by $30M: weak guidance
  • CASY: FQ4 EPS of $1.05 beats by $0.20.Revenue of $1.65B beats by $30M
  • HQY:FQ1 EPS of $0.10 beats by $0.01.Revenue of $29.85M beats by $1.2M

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • EW: upgrade: market perform to outperform: BMO Capital: $158
  • ECR: upgrade: sector perform to outperform: RBC Capital: $9
  • DG: upgrade: market perform to strong buy: Raymond James: $90 (double upgrade)
  • CNK: upgrade: hold to buy: Topeka Capital: pt raised from $42 to $47

DOWNGRADES:

  • ALTR: downgrade: outperform to market perform: Wells Fargo
  • CTXS: downgrade: buy to sell: Berenburg:
  • AKAM: downgrade: outperform to neutral: Macquarie: $75

INITIATIONS:

  • FTAI: initiated: outperform: JPM Securities:
  • FTAI: initiated: buy: UBS: $22
  • FTAI: initiated: overweight: Barclays: $20
  • FEYE: initiated: buy: Wunderlich: $62
  • NOW: initiated: buy: MKM Partners: $90
  • HPT: initiated: buy: Brean Captial: $36
  • AMD: initiated: outperform: Northland Capital: $5
  • ECR: initiated: buy: Topeka Capital: $8
  • TFM: initiated: outperform: Macquarie: $38
  • CVS: initiated: outperform: Macquarie: $115
  • DG: initiated: outperform: Macquarie: $82
  • WBS: initiated: outperform: Macquarie: $95
  • TGT: initiated: outperform: Macquarie: $90

PRICE TARGET CHANGES:

  • PLAY: pt raised from $38 to $43: Piper
  • CMA: pt raised from $50 to $56: RBC Capital
  • UNFI: pt cut from $69 to $59: RBC Capital
  • SKX: pt raised from $117 to $127: Susquehanna
  • CAVM: pt raised fro $74 to $81: Stifel

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