Earnings in focus | Morning News

topcalOCTOBER 12, 2015

US futures hovering around the flat line at this hour.  As earnings season gets into full swing, the financial sector should be front and center this week as most big banks report their quarterly results.With European markets mostly lower, Asia rallied after the Shanghai surged overnight on Beijing’s announcement of  another round of stimulus.Crude oil prices rallied overnight, extending its recent gains after US oil rig count declined for the 5th straight week.  Gold prices are trading at a seven-week high strengthened by the weakness in the dollar and continuing expectations the Fed won’t hike interest rates until 2016.

NEWS:

  • LNG: Cheniere Energy Executive Accused of Insider Trades, reports wsj
  • GBT:Global Blood Therapeutics Announces GBT440 Receives FDA Fast Track Designation for Sickle Cell Disease
  • PSX: announces $2B increase in share buy back program
  • F:Ford to invest $1.8 billion to expand R&D in China. reports reuters
  • CSIQ: Canadian Solar Signs Agreement with Mashiki Town and Kumamoto Prefecture to Build 47 MWp Solar Plant in Japan
  • EMC: EMC to be acquired by Dell in $67B deal
  • AAPL:Apple disables iOS News app in China amid censorship concerns, reports appleinsider
  • NUVA: NuVasive receives FDA clearance for X-Core Mini Cervical Corpectomy System
  • HOT:Starwood announces the opening of  its first hotel in Chuzhou, China
  • LLY: shutting down development of CETP cholesterol lowering drug
  • FOX: FOXA: “The Martian” surges to the top at the box office

IN BARRONS OVER THE WEEKEND:

  • MAT:  Jack Hough thinks Mattel could rise 35%
  • MU: Beaten-down Micron stock looks ready to revive, could rise 60%,  says Sandra Ward
  • JAZZ: Jazz Pharmaceuticals is cheap, says Vito J Racanelli
  • RJF: Raymond James offers many ways to win and could see low 60s, writes Lawrence C Strauss

ON THE ECONOMIC CALENDAR:

  • 8:10AM: Fed’s Lockhart speaks
  • 10:30AM: Fed’s Evans speaks on “Monetary Policy”
  • 4:30PM: Fed’s Brainard speaks on ” Economic Outlook”

SOME NOTABLE EARNINGS REPORTED BEFORE THE OPENING TODAY:

  • INFY: EPS of $0.23 beats by $0.01: revenue of $2.39B beats by $50M
  • SXC: Q3 EPS of -$0.06 misses by $0.08: revenue of $336.9M misses by $3.3M: revenue -10.6% Y/Y:

ANALYSTS’  RATINGS CHANGES:

UPGRADES:

  • XOM: upgrade: underweight to equal weight: Barclays: pt raised from $80 to $85
  • GS: upgrade: neutral to buy: Citi: $210
  • PBF: upgrade: underweight to equal weight: Barclays: pt raised from $32 to $38
  • BUFF: upgrade: equal weight to overweight: Morgan Stanley: $24
  • CVRR: upgrade: equal weight to overweight: Barclays:$27
  • NOC: upgrade: underweight to neutral: JP Morgan: $198
  • NTAP: upgrade: neutral to outperform: Baird: pt raised from $35 to $40
  • MTG: upgrade; market perform to outperform: Keefe Bruyette: $11.50
  • RTN: upgrade: neutral to overweight: JP Morgan: $130
  • BDN: upgrade: neutral to outperform: Credit Suisse: $16

DOWNGRADES:

  • CVE: downgrade: equal weight to underweight: Barclays:
  • DRI: downgrade: outperform to market perform: Raymond James
  • BWLD: downgrade: outperform to market perform: Raymond James:
  • DIN: downgrade: strong buy to outperform: Raymond James: pt cut from $120 to $110
  • RUTH: downgrade: outperform to market perform: Raymond James:
  • HYH: downgrade equal weight to underweight: Morgan Stanley: $27
  • MRVL: downgrade: buy to neutral: Nomura: pt cut from $14 to $12
  • AB: downgrade: outperform to market perform: Keefe Bruyette:$28
  • MHR: downgrade; outperform to sector perform: RBC Capital
  • EMC: downgrade: buy to hold: Jefferies
  • HOG: downgrade: buy to neutral: Longbow:
  • LMT: downgrade: overweight to neutral: JP Morgan
  • PBR: downgrade: overweight to equal weight: Barclays: pt cut from $11 to $6.50
  • ALJ: downgrade: overweight to underweight: Barclays: pt cut from $24 to $21 (double downgrade)

INITIATIONS:

  • RL: initiated: outperform: Telsey Advisory: $142
  • ETSY: initiated: sell: Monness Crespi & Hardt: $10
  • RICE: initiated: buy: Topeka Capital: $28
  • BKS: initiated: buy: Gabelli: $21
  • ANIK: initiated: outperform: Barrington Research: $39
  • HRS: initiated: outperform: RBC Capital: $90

PRICE TARGET CHANGES:

  • NBIX: pt raised from $67 to $71: Leerink
  • AAPL: pt raised from $155 to $163: Morgan Stanley
  • NFLX: pt raised from $125 to $135: Morgan Stanley
  • BLOX: pt cut from $22 to $17: DA Davidson
  • SLM: pt cut from $12 to $11: Compass Point

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