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BullVsBearOCTOBER 16. 2015

US futures marginally lower at this 8AM hour as world markets rally on optimism that the Fed will not raises rates in 2015. Overnight, crude clawed back to gains after yesterdays selloff although there is little reason to believe that the global oil glut has decreased to any degree.

NEWS:

  • BABA: YOKU: Alibaba in a non-binding agreement to purchase the rest of YOKU shares for $26.60
  • NFLX: Credit card firms push back against Netflix claims, reports wsj
  • FCX:Indonesia says will issue Freeport contract extension promptly once amendment finalized, reports reuters
  • MON:U.S. lawsuits build against Monsanto over alleged Roundup cancer link, reports reuters
  • YUM: updates full year guidance: announces change to structure coming soon
  • ZFGN: FDA places its phase 3 study, ZAF-311, on partial clinical hold
  • CP: CNI: Canada railroads cut crude freight rates to lure shipments, reports reuters
  • OXY:Oxy to exit North Dakota’s oil fields in sale to private equity fund, reports reuters
  • NFLX: Netflix’s first original feature film to be released today
  • AZN: FDA denies approval for diabetes treatment

ON THE ECONOMIC CALENDAR:

  • 9:15M: Industrial Production
  • 10AM: Job Openings and Labor Turnover Survey
  • 10AM: Reuters/UofM Consumer Sentiment
  • 10AM: Atlanta Fed’s Business Inflation Expectations
  • 4PM: Treasure International Capital

NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

  • SLB: Q3 EPS of $0.78 beats by $0.01: revenue of $8.47B misses by $80M: revenue -33.0% Y/Y: oilfield services look “increasingly challenging”
  • MAT: Q3 EPS of $0.71 misses by $0.09: revenue of $1.79B misses by $100M: revenue -11.4% Y/Y
  • WYNN:Q3 EPS of $0.86 misses by $0.02: revenue of $996.3M misses by $33.7M: revenue -27.3% Y/Y
  • AMD: Q3 EPS of -$0.17 misses by $0.05: revenue of $1.06B: revenue -25.9% Y/Y: guides below consensus estimates
  • ASB:Q3 EPS of $0.31 beats by $0.01: revenue of $250.43M misses by $0.89M: revenue +1.2% Y/Y

NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

  • GE: Q3 EPS of $0.32 beats by $0.06: revenue of $31.68B beats by $3.11B: revenue -1.3% Y/Y: reaffirms 2015 industrial and verticals EPS guidance
  • HON:Q3 EPS of $1.60 beats by $0.05: revenue of $9.61B misses by $240M: revenue -4.9% Y/Y
  • STI:Q3 EPS of $1.00 beats by $0.16: revenue of $2.06B beats by $20M: revenue +1.5% Y/Y: 
  • CMA: Q3 EPS of $0.74 beats by $0.04: revenue of $686M misses by $3.13M: revenue +9.1% Y/Y
  • FHN:Q3 EPS of $0.29 beats by $0.07: revenue of $288.67M misses by $8.85M: revenue -9.0% Y/Y
  • KSU: Q3 EPS of $1.21 misses by $0.01: revenue of $631.9M misses by $13.73M: revenue -6.7% Y/Y
  • GWW:Q3 EPS of $3.03 misses by $0.03: revenue of $2.54B misses by $20M: revenue -0.8% Y/y

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • LULU: upgrade: market perform to outperform: Credit Suisse: $64
  • BOX: upgrade: neutral to overweight: JP Morgan: pt cut from $21 to $18
  • PPG: upgrade: neutral to buy: UBS: $122
  • HABT: upgrade: equal weight to overweight: Stephens:
  • TWOU: upgrade: neutral to buy: Goldman: pt cut from $40 to $36
  • DGX: upgrade: underperform to market perform: Wells Fargo
  • BLOX: upgrade: neutral to buy: Sterne Agee

DOWNGRADES:

  • EIX: downgrade: buy to hold: Jefferies: pt cut from $67 to $66
  • SAVE: downgrade: overweight to equal weight: Morgan Stanley: $53
  • SAVE: downgrade: strong buy to market perform: Raymond James
  • WNS: downgrade: outperform to neutral: Baird: $32
  • STX: downgrade: overweight to sector weight: Pacific Crest
  • PNR: downgrade: buy to hold: Stifel
  • ALL: downgrade: market perform to underperform: Blair

INITIATIONS:

  • UA: initiated: buy: Brean Capital: $117
  • TLN: initiated: buy: SunTrust: $14
  • G: initiated: buy: Cantor: $27
  • EXLS: initiated: buy: Cantor
  • VRTU: initiated: buy: Cantor
  • WNS: initiated: buy: Cantor: $35
  • ACN: initiated: buy: Cantor
  • CTSH: initiated: buy: Cantor
  • OPK: initiated: overweight: JP Morgan: $14
  • TMUS: initiated: buy: Nomura: $46
  • T: initiated: buy: Nomura: $39

PRICE TARGET CHANGES:

  • NLSN: pt raised from $41 to $45: Pivotal Research
  • RH: pt raised from $110 to $119: Telsey Advisory
  • EAT: pt cut from $63 to $58: RBC Capital
  • SCHW: pt cut from $32 to $28: Compass Point
  • MTG: pt cut from $21 to $11: FBR Capital
  • WBS: pt cut from $39 to $38: RBC Capital
  • WFC: pt cut from $61 to $60: RBC Capital
  • KSS: pt cut from $75 to $60: Telsey Advisory
  • PTCT: pt cut from $85 to $56: RBC Capital
  • DECK: pt cut from $71 to $63: Piper Jaffray
  • C: pt cut from $67 to $62: UBS
  • GS: pt cut from $220 to $190: UBD

 

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