Volatility Continues | Morning News 9.28.15

BullVsBearSEPTEMBER 28. 2015

US futures and European markets red at this 7AM hour as  a heavy data week begins and volatility continues. Overnight, Shanghai, which had been sharply lower early in the session after industrial profits fell 8.8% in August, managed to close in the green  by the end of trading as most Asian markets bounced to close mixed. Meanwhile, European markets head lower after the IMF is reportedly set to lower global outlook.

NEWS:

  • NKE :Kenyan Marathoner Falls Short of Record After Nike Shoes Fail, reports wsj
  • MEG:Nexstar Broadcasting Makes Bid for Media General for $14.50/share, reports wsj
  • AA: Alcoa Board Of Directors Unanimously Approve Decision To Split Firm In 2 publicly traded companies in H1 2016
  • FB:Facebook ‘dramatically’ increases virtual reality spending,reports Financial Times
  • WMB: ETE: Energy Transfer Equity to buy Williams in a $37.7B deal ($43.50/share)
  • GOOG: GOOGL:Google Announces Plan To Put Wi-Fi In 400 Train Stations Across India, reports techcrunch
  • APP: gets delisting notice from the NYSE
  • BMY:FDA accepts Bristol-Myers’ sBLA for Opdivo plus Yervoy in untreated melanoma
  • NVS: Novartis’ Afinitor successful in late-stage study in neuroendocrine tumors
  • TEVA: announces approval of Copaxone in Japan
  • ABBV: announces approval of Viekirax in Japan
  • CSX: added to #1 US List at BofA/Merrill
  • FDX: removed from #1 US List at BofA/Merrill
  • WHR: removed from #1 US List at BofA/Merrill

IN BARRONS OVER THE WEEKEND:

  • ADSK: Alexander Eule sees long term upside in the stock, could see +50% in 18 months.
  • PANW: FEYE: FTNT: CYBR:  Tiernan Ray sees security technology stocks prime for takeover
  • LEMB: EMB: CEWCraig Mellow shares his view that emerging markets haven’t hit bottom yet.
  • DWRE: Vito Racanelli out negative on Demandware
  • JBLU: With competition on the rise, consider taking profits as the stock sells at a premium to its peers
  • BWA: DLPH: HAR: GNTX: Jack Hough thinks auto-parts makers look like bargains after being hit on VW scandal

ON THE ECONOMIC CALENDAR:

  • 8:30AM: Personal Income and Outlays
  • 10AM: Pending Home Sales
  • 10:30AM: Dallas Fed Manufacturing Survey
  • 1:30PM: Fed’s Evans Speaks on “US Monetary Policy:
  • 5PM: Fed’s Williams Speaks

EARNINGS REPORTED BEFORE THE BELL:

  • CALM: FQ1 EPS of $2.95 misses by $0.19: revenue of $609.9M beats by $9.96M: revenue +70.9% Y/Y
  • CSUN:FQ1 EPS of -$0.82. revenue of $91.47M: revenue +45.8% Y/Y

NOTABLE EARNINGS AFTER THE CLOSE TODAY:

  • CMTL, SNX

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • C: upgrade: neutral to outperform: Credit Suisse: $62
  • C: upgrade: hold to buy: Jefferies: pt cut from $65 to $60
  • CHRW: upgrade: hold to buy: BB&T: $81
  • INFY: upgrade: sell to hold: Societe Generale
  • ABBV: upgrade: Citigroup: $60
  • ATML: upgrade: outperform to strong buy: Raymond James: $10
  • KN: upgrade: underperform to market perform: FBR Capital: pt raised from $17 to $18

DOWNGRADES:

  • AMTD: downgrade; outperform to market perform: Wells Fargo
  • VAR: downgrade: neutral to sell: Goldman
  • DSW: downgrade: buy to neutral: B Riley

INITIATIONS:

  • INXN: initiated: overweight: Barclay: $33
  • BANR: initiated: overweight: Piper Jaffray
  • AGRO: initiated: overweight: JP Morgan
  • NWL: initiated: buy: Jefferies: $50

PRICE TARGET CHANGES:

  • MU: pt cut from $28 to $25: Cowen
  • SNDK: pt cut from $70 to $59: Cowen
  • BBRY: pt cut from $9 to $8: RBC Capital
  • BBRY: pt cut from $10 to $7.50: UBS
  • WES: pt cut from $75 to 472: FBR Capital

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