OCTOBER 14, 2015
US futures flat at this 8AM hour as global markets pull back and call/put ration hoists a warning flag. Overnight, economic data out of China was disappointing, yet again, as PPI falls 5.9% signaling the 43rd month of deflation. Crude slipped lower as over supply and concerns over China’s slowing economy weighed on the commodity.
NEWS:
- JMBA: Morgan Stanley reports 5.1% stake in Jamba
- SNDK: MU: WDC: Sandisk in merger talks with Micron and Western Digital, reports Financial Times
- HABT: Wells Fargo reports 10.94% stake in Habit Restaurants
- FB: Facebook testing dedicated video channel, rivaling YouTube
- LLY: INCY:Eli Lilly, Incyte report positive topline results in phase 3 study of RA-BEAM
- REGI: cuts Q3 guidance below consensus
- LCI:Lannett reports FDA approval for Memantine Oral Solution 2 mg/mL
- AAPL:Apple loses patent lawsuit to University of Wisconsin, faces hefty damages. reports reuters
ON THE ECONOMIC CALENDAR:
- 7AM: MBA Mortgage Applications
- 8:30AM: Producer Price Index
- 8:30AM: Retail Sales
- 10AM: Business Inventories
- 2PM: Fed’s Beige Book
NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:
- CSX:Q3 EPS of $0.52 beats by $0.02: revenue of $2.94B misses by $40M: revenue -8.7% Y/Y: weak guidance due to the domestic coal volume declining
- INTC: Q3 EPS of $0.64 beats by $0.05: revenue of $14.47B beats by $250M: revenue -0.5% Y/Y: guides in-line
- JPM:Q3 EPS of $1.32 misses by $0.05: revenue of $23.54B misses by $150M: revenue -6.4% Y/Y
- VOXX:FQ2 EPS of -$0.18 may not be comparable to consensus of $0.08: revenue of $154.2M misses by $5.34M: revenue -13.0% Y/Y
- HAWK: Q3 EPS of $0.35 beats by $0.05: revenue of $352.7M beats by $156.39M: revenue +31.1% Y/Y: soft guidance
NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:
- BAC:Q3 EPS of $0.37 beats by $0.04: revenue of $20.91B beats by $140M: revenue -2.4% Y/Y
- CFX:Q3 EPS of $0.24 misses by $0.17.: revenue of $969.14M misses by $25.16M: revenue -16.5% Y/Y
- BLK:Q3 EPS of $5.00 beats by $0.43: revenue of $2.91B beats by $90M: revenue +2.1% Y/Y
- DAL:Q3 EPS of $1.74 beats by $0.03: revenue of $11.12B beats by $20M: revenue -0.5% Y/Y
- PNC:Q3 EPS of $1.90 beats by $0.18: revenue of $3.78B misses by $20M: revenue -1.6% Y/Y
- CBSH:Q3 EPS of $0.66 misses by $0.05: revenue of $273.18M misses by $9.62M: revenue +2.3% Y/Y
- WFC:Q3 EPS of $1.05 in-line: revenue of $21.88B beats by $120M: revenue +3.2% Y/Y
- JBHT:Q3 EPS of $0.99 beats by $0.02: revenue of $1.59B misses by $30M: revenue -0.6% Y/Y
SOME NOTABLE EARNINGS TO BE REPORTED AFTER THE CLOSE TODAY:
- CNS, DRWI, NFLX, WTFC, XLNX
ANALYSTS’ RATINGS CHANGES:
UPGRADES:
- CF: upgrade: underperform to market perform: Cowen
- IPI: upgrade: underperform to market perform: Cowen: $7
- ADBE: upgrade: neutral to overweight: Atlantic Securities:
- INTC: upgrade: hold to buy: Summit Research: $40
DOWNGRADES:
- GPRO: downgrade: overweight to neutral: Piper Jaffray: pt cut from $54 to $25
- UA: downgrade: overweight to neutral: Piper Jaffray: $113
- TWTR: downgrade: outperform to market perform: JMP Securities
- WLL: downgrade: buy to hold: Deutsche Bank: $23
- ORCL: downgrade: outperform to market perform: JMP Securities
INITIATIONS:
- MNK: initiated: outperform: Northland: $92
- SHPG: initiated: outperform: Northland: $288
- JAZZ: initiated: outperform: Northland: $200
- HAIN: initiated: outperform: Cowen: $64
- CE: initiated: sector perform: RBC Capital: $34
- EMN: initiated: outperform: RBC Capital: $88
- RPM: initiated: sector perform: RBC Capital: $47
- WPX: initiated: outperform: Imperial Capital: $14
PRICE TARGET CHANGES:
- CMG: pt raised from $740 to $825: RBC Capital
- UA: pt raised from $105 to $130: Canaccord
- INTC: pt raised from $33 to $34: Cowen
- INTC: pt raised from $33 to $34: RBC Capital
- INTC: pt raised from $37.50 to $39: Northland
- ETR: pt cut from $76 to $67.50: Mizuho
- EPE: pt cut from $16 to $12: Topeka Capital
- CMCM: pt cut from $30 to $22: Summit Research
- CPHD: pt cut from $66 to $62: Piper Jaffray
- CPHD: pt cut from $70 to $47: Needham
- FAST: pt cut from $42 to $41: Stifel
- CAB: pt cut from $54 to $47: DA Davidson