FOMC week | Morning News

shaky-bull-marketOCTOBER 26, 2015

US futures point to a modestly lower opening as markets trade mixed around the world as investors await FOMC decision on Wednesday and GDP data on Thursday. Crude recovered from its overnight losses

NEWS:

  • MA: V: After 30 years, USAA switches to Visa from Mastercard, reports the wsj
  • GOOG: GOOGL:EU to Pursue Google Parent Alphabet on Multiple Fronts, reports the wsj
  • CTRP: BIDU: Ctrip.com announces share exchange transaction with Baidu
  • AAPL: Apple Music near release of Android app
  • AZN:FDA Ad Comm approves AstraZeneca’s lesinurad for gout-associated hyperuricemia
  • FB:Facebook is unleashing universal search across its entire social network of 2 trillion+ posts, reports The Verge
  • PNY: DUK: Duke Energy to acquire Piedmont Natural Gas in a cash deal worth $4.9B
  • MON: Monsanto clears USDA regulatory hurdle for new GMO corn
  • WFM: Whole Foods recalls curry chicken and deli pasta sold in stores across seven states amid Listeria fears

IN BARRONS OVER THE WEEKEND:

  • DSW: David Englander see positive earnings leading to a 40% jump in the stock
  • BNED: Andrew Bary sees the possibility of the stock doubling on the operation of over college bookstores
  • DKS: Robin Blumenthal reports that Dick’s has invited Nike and Under Armour to open “stores within its stores” and is reaching out to female buyers. Reasons that the stock could jump 30%.
  • VMW: VMware looks like a risky bet in Dell/EMC Deal, says Tiernan Ray
  • CMG: Chipotle facing fundamental head winds, says Vito Racanelli

ON THE ECONOMIC CALENDAR:

  • 10AM: New Home Sales
  • 10:30AM: Dallas Fed Manufacturing Survey

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE BELL:

  • XRX:Q3 EPS of $0.24 beats by $0.01: revenue of $4.45B misses by $90M: revenue -7.3% y/y
  • POM:Q3 EPS of $0.33 misses by $0.11: revenue of $1.36B misses by $130M: revenue +3.8% y/y
  • LH:Q3 EPS of $2.07 beats by $0.01: revenue of $2.3B beats by $50M: revenue +48.4% y/y
  • ROP:Q3 EPS of $1.61 beats by $0.04: revenue of $886.1M misses by $5.54M: revenue +0.2% y/y
  • CHKP:Q3 EPS of $1.04 beats by $0.06: revenue of $403.86M beats by $0.9M: revenue +9.0% y/y
  • TREE:Q3 EPS of $0.59 beats by $0.10: revenue of $69.8M beats by $8.79M: revenue +69.0% y/y: strong guidance
  • JAKK:Q3 EPS of $1.12 beats by $0.03: revenue of $337M misses by$7.12M: revenue -3.5% y/y: reaffirms FY15 guidance
  • SOHU: Q3 EPS of $1.27 may not be comparable to consensus of -$0.62: revenue of $522M beats by $30.74M: revenue +21.3% y/y: weak guidance
  • CYOU: Q3 EPS of $1.43 beats by $0.71: revenue of $188.88M beats by $12.45M: revenue +4.5% y/y: weak guidance: guides Q4 EPS $0.56-0.65 vs consensus $0.76

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

  • ACC, AGNC, ALSN, AMKR, AVB, BRCM, BRX, CAKE, CDNS, CR, CTS, EW, EXP, HIG,  KN, MSTR, NEU, PCL, PMCS, PRE, RE, SWFT, TCO, TMK, UDR, WCN, WRB, XL

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • COST: upgrade: hold to buy: UBS: pt raised fromm $153 to $180
  • PYPL: upgrade: buy to conviction buy: Goldman: $45
  • WHR: upgrade; buy to strong buy: Raymond James: $201
  • DISH: upgrade: underweight to neutral: Moeffett Nathanson: $61
  • VFC: upgrade: neutral to overweight; Piper Jaffray
  • CVLT: upgrade: neutral to overweight: Piper Jaffray
  • AMAT: upgrade: neutral to buy: Nomura: $22
  • AMRI: upgrade: equal weight to overweight: First Analysis:  $25

DOWNGRADES:

  • KORS: downgrade: outperform to market perform: Cowen: $43
  • AXP: downgrade: hold to sell: UBS: pt cut from $81 to  $67
  • M: downgrade: outperform to market perform: Cowen: pt cut from $70 to $52
  • TSN: downgrade: overweight to neutral: JP Morgan
  • NTAP: downgrade: neutral to sell: UBS
  • HCN: downgrade: buy to neutral: Mizuho
  • LEA: downgrade: buy to hold: Deutsche Bank: pt raised from $121 to $127
  • ATHN: downgrade: buy to hold: Topeka: $164
  • DSW: downgrade: speculative buy to hold: Canaccord
  • PH: downgrade: buy to neutral: BofA/Merrill: $108
  • AKS: downgrade: neutral to underperform: BofA/Merrill: $1
  • TRI: downgrade: outperform to market perform: FBR Capital: pt cut from $43 to $42

INITIATIONS:

  • AAP: reiterated: market perform: Cowen: $135
  • SGRY: initiated: outperform: RBC Capital: $22
  • SGRY: initiated: buy: Jefferies
  • EDGE: initiated: outperform: Credit Suisse: $29
  • EDGE: initiated: outperform: Leerink: $27
  • EDGE: initiated: market outperform: JPM Securities: $34

PRICE TARGET CHANGES:

  • ATHN: pt raised from $80 to $105: RBC Capital
  • ALV: pt raised from $110 to $115: RBC Capital
  • CHE: pt raised from $129 to $154: RBC Capital
  • COR: pt raised from $57 to $64: RBC Capital
  • LEA: pt raised from $126 to $138: RBC Capital
  • MDLZ: pt raised from $49 to $51: RBC Capital
  • FTNT: pt cut from $46 to $40: Topeka Capital
  • COG: pt cut from $34 to $30: Topeka Capital
  • APO: pt cut from $25 to $21: RBC Capital
  • NUE: pt cut from $54 to $49: Cowen
  • PEB: pt cut from $48 to $42: RBC Capital
  • SWN; pt cut from $22 to $20: RBC Capital
  • WHR: pt cut from $213 to $201: RBC Capital
  • AMBA: pt cut from $85 to $75: Morgan Stanley

 

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