China weighs | Morning News

china bull_bear-2OCTOBER 19, 2015

US futures point to a lower opening at this 8AM hour as markets trade mixed around the world. China traded lower after mixed economic data showed that while the GDP beat estimates, coming in at 6.9%, both factory orders and fixed-asset investment missed expectations. Overnight, crude continued it’s selloff as OPEC countries continues to flood the market with the commodity even as oil supplies remain at record levels.

NEWS:

  • AAPL: Piper out positive on the stock as “top pick large cap stock for the rest of 2015”: overweight: $172 pt
  • INTC: Intel has 1000 people working on chips for the 2016 iPhone, reports venturebeat
  • WTW: announces that Oprah Winfrey to take 10% stake in Weight Watchers, reports the wsj
  • PLUG: announces Q3 revenue of +$30M, beating quarterly target
  • MSFT: Microsoft increases monthly Surface Pro shipments by 60% for 4Q15, reports digitimes

REPORTED IN BARRONS OVER THE WEEKEND:

  • TRCO: David Englander reports that  the company could be worth as much as $85 on a -sum-of-parts basis
  • FITB: Avi Salzman sees the company as a turnaround possibility, saying the stock could jump 25%
  • WFC: JPM: C: MKL: Investor Chris Davis’ financial stock picks
  • JPM: Teresa Rivas says a disappointing earnings report reflects real challenges, but the company will reward patience
  • SRPT: Andrew Bary reports that favorable results for eteplirsen, Saratpeta’s drug for DMD, are not reflected in the stock’s price
  • PFPT: Proofpoint trades at “nosebleed” valuation and could drop “plenty more” without sustainable earnings, reports Vito Rancanelli
  • BABA: Jonathan Laing gives reasons why Alibaba could fall 50% further
  • GPRO: Alexander  Eule reasons that shares could fall to $25

ON THE ECONOMIC CALENDAR:

  • 10AM: NAHB Housing Market Index

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

  • VRX: Q3 EPS of $2.74 vs $2.11 last year: Revenue of $2.79B: revenue +35.4% Y/Y: raises guidance FY15 cash EPS view from $11.50-11.80 to $11.67-11.87
  • HAL: FQ3 EPS of $0.31 beats by $0.04: revenue of $5.58B misses by $60M: revenue -35.9% Y/Y
  • MRTN:Q3 EPS of $0.25 in-line” revenue of $171.35M beats by $4.22M: revenue -0.1% Y/Y
  • MTB: Q3 EPS of $1.95 misses by $0.06: revenue of $1.13B misses by $20M: revenue +0.9% Y/Y
  • MS: Q3 EPS of $0.34 misses by $0.29: revenue of $7.33B misses by $1.21B: revenue -15.7% Y/Y
  • HAS: Q3 EPS of $1.58 beats by $0.06: revenue of $1.47B misses by $10M

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

  • BMI, BRO, BXS, CCK, CE, ELS, FLEX, GIG, HA, HLX, HSTM, HXL, IBM, RLI, RMBS, SIX, SONC, STLD, ZION

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • ANF: upgrade: hold to buy: Wunderlich: pt raised from $21 to  $30
  • NKE: upgrade: hold to buy: BB&T: $148
  • GRMN: upgrade: underweight to neutral: JP Morgan: $34
  • VOD: upgrade:neutral to outperform: Macquarie:
  • ETR: upgrade: sell to neutral: Goldman: pt raised from $68 to $69
  • BZH: upgrade: neutral to buy: Compass Point: $16.50
  • VALE: upgrade: sell to neutral: UBS:
  • BWLD: upgrade: hold to buy: Maxim Group: $217
  • DRI: upgrade: hold to buy: Maxim Group: $80
  • FE: upgrade: sell to neutral: Goldman: pt raised from $28 to $31

DOWNGRADES:

  • URBN: downgrade: buy to hold: Wunderlich: pt cut from $49 to $30
  • ECL: downgrade: buy to hold: Deutsche Bank: $125
  • ALE: downgrade: buy to hold: Wunderlich: $54
  • BWA: downgrade: overweight to underweight: Morgan Stanley: $37
  • ED: downgrade: neutral to sell: Goldman: $61
  • GXP: downgrade: buy to neutral: Goldman: pt cut from $28 to $27
  • PPL: downgrade: buy to neutral: Goldman: $33
  • PNW: downgrade: neutral to sell: Goldman: pt cut from $61 to $59
  • STX: downgrade: positive to neutral: Susquehanna

INITIATIONS:

  • MRTX: initiated: overweight: Barclays: $50
  • DLR: reinstated: overweight; Barclays: $75
  • SCTY: initiated: sell: Axiom: $24
  • ELGX: initiated: outperform: RBC Capital: $17

PRICE TARGET CHANGES:

  • ARE: pt raised from $98 to $104: Mizuho
  • GE: pt raised from $30 to $32: RBC Capital
  • GE: pt raised from $30 to $32: Stifel
  • SAM: pt raised from $230 to $250: Cowen
  • XON: pt cut from $70 to $50: Wunderlich
  • KSU: pt cut from $109 to $106: RBC Capital
  • PACW: pt cut from $50 to $48: RBC Capital
  • PFPT: pt cut from $80 to $73: RBC Capital
  • GWW: pt cut from $234 to $224: Stifel
  • GWW: pt cut from $203 to $187: RBC Capital
  • HON: pt cut from $121 to $120: RBC Capital
  • DFS: pt cut from $77 to $69: RBC Capital
  • FHN: pt cut from $16 to $15: RBC Capital”
  • AXE: pt cut from $73 to $70: Imperial Capital
  • SYRG: pt cut from $18 to $15: Roth Capital
  • YHOO: pt raised from $41 to $45: Axoim Capital
  • CRZO: pt cut from $54 to $50: Canaccord

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