FOMC | Morning News

JUNE 17, 2015

US futures pushing higher at this 7am hour as overseas markets struggle to find direction overnight with investors remaining cautious over timing of a Fed rate hike and the Greek monetary crisis. The economic calendar is light but investors will have plenty to watch today, including a policy statement and updated economic projections at 2PM EST, followed by Janet Yellen’s quarterly press conference at 2:30PM EST. Brent crude oil rose in overnight trading as strong demand and falling stockpiles in the United States pushed prices higher. EIA Petroleum Inventories report at 10:30AM EST.

NEWS:

  • QIHU:Announces Receipt of a Preliminary Non-Binding Proposal to Acquire the Company $77, reports prnewswire
  • KYTH: AGN:Allergan to buy Kythera Biopharmaceuticals in a deal valued at $2.1B
  • TWC: Time Warner Cable will be the first to get hit with a net neutrality complaint
  • AXP:American Express loses emergency bid to block US card injunction, reports reuters
  • BA: Boeing wins AerCap order for 100, 737 MAX jets worth $10.7B, reports reuters
  • AGU: ValueAct files, owns 6.8% of Agrium
  • SGYP :announces positive results in Phase 3 clinical trial evaluating plecanatide for the treatment of chronic ideopathic constipation
  • BABA: Alibaba is building three “cold chain” facilities to allow deliveries of perishable goods to more cities in China, reports the wsj

ON THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 10:30AM: EIA Petroleum Inventories
  • 2PM: FOMC Annoucement
  • 2PM: FOMC Forecast
  • 2:30PM: Yellen’s News Conference

EARNINGS:

  • FDX: conference call 8:30AM EST

EARNINGS RECAP FROM LAST NIGHT:

  • BOBE :FQ4 EPS of $0.56 beats by $0.15.Revenue of $332.39M beats by $1.42M: guidance sees FY16 revenue of $1.34B-$1.41B vs. $1.37B consensus and EPS of $1.75-$1.95 vs. $1.86 consensus forecast
  • ADBE: FQ2 EPS of $0.48 beats by $0.03.Revenue of $1.16B in-line: light guidance
  • LZB: FQ4 EPS of $0.38 in-line.Revenue of $374.94M misses by $4.19M

SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:

  • ORCL, JBL, PIR, CLC

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • RICE: upgrade: sell to neutral: Citi: pt raised from $18 TO $23
  • WLL: upgrade; neutral to buy: Citi: pt raised from $35 to $46
  • CXO: upgrade: neutral to buy: Citi: pt raised from $125 to $146
  • CVX: upgrade: hold to buy: Societe Generale:
  • MXWL: upgrade: market perform to outperform: Northland Capital: $7

DOWNGRADES:

  • AGU: downgrade: outperform to underperform: CLSA: pt cut from $120 to $110
  • DVN: downgrade: outperform to perform: Oppenheimer

INITIATIONS:

  • HDP: initiated: buy: Mizuho: $31
  • BMY: initiated: underperform: Piper: $60
  • LLY: initiated: overweight: Piper: $97
  • CRM: initiated: neutral: BNP Paribas: $81
  • PFE: initiated; overweight: Jefferies: $45

PRICE TARGET CHANGES:

  • FB: pt raised from $100 to $108: Brean Capital
  • LGF: pt raised from $38 to $41: Topeka Capital
  • NKE: pt raised from $106 to $109: Telsey Advisory Group
  • MCRI: pt raised from $17 to $25: Imperial Capital
  • ADPT: pt raised from $69 to $102: Piper
  • CI: pt raised from $149 to $175: UBS (added to the Most Preferred List)
  • NBIX: pt raised from $63 to $87: Piper

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