FOMC in focus | Morning News

404688_lJULY 28. 2015

US futures edging higher at this 7AM hour as investors await the start to the FOMC meeting today with the report due out at 2PM tomorrow where traders will search for any hint at the rate hike timetable. Also, due out this more are manufacturing and housing data, as well as consumer confidence numbers. Meanwhile, overseas, European markets are solidly higher while Asian markets continue their sell off with the Shanghai down another 1.7%. Commodities continue to lose footing with oil trading at a 4 month low as investors voice concerns over the rise in US oil drilling rigs and the expectation that Iran’s output will weigh on the commodity.

NEWS:

  • REGN:SNY: Sanofi links with Regeneron in $2.2B cancer drug push, reports reuters
  • HON: Honeywell to Melrose’s Elster business for $5.1B
  • GOOG: GOOG: Researcher finds massive security flaw in Android, reports re/code
  • YHOO: Yahoo to hold consumer product event in NYC this week, reports re/code

ON THE ECONOMIC CALENDAR:

  • 8:55AM: Redbook Chain Store Sales
  • 9AM: S&P Case-Shiller Home Price Index
  • 9:45AM: PMI Services Index Flash
  • 10AM: Consumer Confidence
  • 10AM: Richmond Fed Manufacturing
  • 10AM: State Street Investor Confidence Index
  • 1PM: $25B, 2 Year Note Auction

EARNINGS REPORTED BEFORE THE OPENING:

  • POR: Q2 EPS of $0.44 beats by $0.03.Revenue of $450M beats by $21.19M
  • GLW: Q2 EPS of $0.38 beats by $0.01.Revenue of $2.52B misses by $20M
  • F: Q2 EPS of $0.47 beats by $0.10.Revenue of $37.3B beats by $1.96B
  • RAI: Q2 EPS of $1.02 beats by $0.05.Revenue of $2.4B misses by $50M: revenue +11.1% Y/Y: raises EPS guidance to $1.90-$2.00 from $1.83-$1.90
  • DHI: FQ3 EPS of $0.60 beats by $0.10.Revenue of $2.86B beats by $160M: revenue +36.8% Y/Y
  • PFE: Q2 EPS of $0.56 beats by $0.04.Revenue of $11.9B beats by $480M
  • MRK: Q2 EPS of $0.86 beats by $0.05.Revenue of $9.79B misses by $10M: revenue -10.4% Y/Y
  • NOV: Q2 EPS of $0.77 beats by $0.13.Revenue of $3.91B beats by $50M: revenue -25.7% Y/Y
  • DD: Q2 EPS of $1.18 misses by $0.01.Revenue of $8.59B misses by $130M: lowers guidance
  • SIRI: Q2 EPS of $0.03 in-line.Revenue of $1.12B (+7.7% Y/Y) in-line: guides FY15 revenue $4.5B, consensus $4.49B
  • GPN:FQ4 EPS of $1.22 beats by $0.04.Revenue of $706.55M beats by $5.09M: strong guidance sees FY16 EPS $5.60-$5.78 vs. consensus $5.44
  • TXT: Q2 EPS of $0.60 beats by $0.01.Revenue of $3.25B  misses by $180M
  • NLSN:Q2 EPS of $0.66 beats by $0.02.Revenue of $1.56B beats by $10M
  • UTHR: Q2 EPS of $2.55 beats by $0.24.Revenue of $347.16M misses by $13.25M
  • PCP: FQ1 EPS of $2.87 misses by $0.13.Revenue of $2.41B misses by $100M
  • WYN: Q2 EPS of $1.32 beats by $0.06.Revenue of $1.4B beats by $30M: raises FY15 adjusted EPS guidance to $4.88-$5.03 from $4.81-$4.96
  • CNC:Q2 EPS of $0.73 beats by $0.03.Revenue of $5.51B misses by $20M: revenue +37.1 Y/Y

RECAP OF SOME NOTABLE EARNINGS FROM LAST NIGHT:

  • BIDU: Q2 EPS of RMB11.19 beats by RMB0.61.Revenue of RMB16.58B in-line: guides below estimates
  • PLT: FQ1 EPS of $0.67 beats by $0.08.Revenue of $206.4M beats by $0.81M: guides in-line
  • HIG: Q2 EPS of $0.91 beats by $0.14.Revenue of $4.69B misses by $10M: buyback raised by $1.6B and extended through the end of next year
  • SWFT: Q2 EPS of $0.37 in-line.Revenue of $1.06B misses by $40M: reaffirms guidance
  • KN :Q2 EPS of $0.08 beats by $0.01.Revenue of $240.9M  misses by $9.73M: guides in-line

SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:

  • AFL, AIZ, AJG, AKAM, APC, BLDP, BMR, BOOM, BWLD, CALX, CAP, CEB, CHRW, CTXS, CUZ, DHT, ESRX, ETH, EW, EXAC, EXAM, GAS, GCA, GILD NCR, NEU, NGD, NUVA, OIS, PEI, PNRA, RGR, RNR, RRC, RSYS, RUBI, SLCA, SM, SPWR, SSW, TSS, TWTR, VRSK, X, YELP

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • TEVA: upgrade: market perform to outperform: BMO Capital: pt raised from $75 to $80
  • DHR: upgrade: equal weight to overweight: Morgan Stanley: $100
  • BBRY: upgrade: underweight to equal weight: Morgan Stanley: $7
  • PHG: upgrade: hold to buy: Societe Generale:
  • RTN: upgrade: neutral to buy: BofA/Merrill
  • AN: upgrade: neutral to buy: Sterne Agee
  • AEGR: upgrade: hold to buy: Jefferies: $26

DOWNGRADES:

  • BIDU: downgrade: buy to hold: Brean Capital
  • BIDU: downgrade: overweight to sector weight; Pacific Crest
  • RHI: downgrade: equal weight to underweight: Barclays: pt cut from $60 to $55
  • YELP: downgrade: buy to hold: Deutsche Bank: $33

INITIATIONS:

  • LNKD: initiated: buy: MKM Partners: $285
  • UNVR: initiated: buy: Goldman:
  • PYPL: initiated: buy: Jefferies:

PRICE TARGET CHANGES:

  • AGN: pt raised from $333 to $366: UBS
  • HAIN; pt raised from $69 to $73: Canaccord
  • EA: pt raised from $75 to $78: Brean Capital
  • ATVI: pt raised from $28 to $30: Brean Capital
  • TTWO: pt raised from $32 to $36: Brean Capital
  • EQIX: pt raised from $270 to $310: RBC Capital
  • BIDU: pt cut from $256 to $205: Summit Research
  • BIDU: pt cut from $230 to $210: Piper Jaffray
  • COG: pt cut from $35 to $33: Imperial Capital
  • GPOR: pt cut from $60 to $45: Northland Capital
  • DDD: pt cut from $22 to $14: Jefferies
  • SSYS: pt cut from $60 to $50: Jefferies

 

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