FOMC | Morning News

FOMCOCTOBER 28.2015

US futures point to a higher opening at this hour as investor continue to digest earnings reports, most notable this morning would be AAPL and TWTR, before turning their attention to the FOMC announcement due out at 2PM EST. Analysts do not expect a rate hike at this time but all ears will be attune to any hint as to the timing of the hike. Overnight, crude traded modestly higher as investors look to the EIA Petroleum Inventories due to be reported this morning at 10:30AM EST.

NEWS:

  • TOL: Toll Brothers has priced an offering of $350M in senior notes
  • AMGN: FDA approvesAmgen’s IMLYGIC for melanoma
  • CBI: announces sales of its nuclear construction business to Westinghouse Electric
  • NOC: BA: LMT: Northrop Grumman Wins Air Force’s Long Range Strike Bomber Contract, reports DefenseNow
  • TSLA: Tesla Gets Boost From Korean Battery Maker LG Chem, reports the wsj

ON THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 10:30AM: EIA Petroleum Inventories
  • 11:30AM: $15b 2 Year FRN Auction
  • 1PM: 435B 5 Year Note Auction
  • 2PM FOMC Announcement

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

  • GILD:Q3 EPS of $3.22 beats by $0.33: revenue of $8.3B beats by $480M: revenue +37.4% y/y: sales guidance raised to be in-line
  • AAPL:FQ4 EPS of $1.96 beats by $0.08: revenue of $51.5B beats by $380M: revenue +22.3% y/y: guides in-line
  • TWTR:Q3 EPS of $0.10 beats by $0.05: revenue of $569.2M beats by $9.6M: revenue +58.0% y/y: light guidance
  • AKAM:Q3 EPS of $0.62 beats by $0.04: revenue of $551.03M beats by $0.74M: revenue +10.6% y/y: soft guidance
  • ESRX:Q3 EPS of $1.45 beats by $0.01: revenue of $25.2B misses by $1.18B: revenue -2.2% y/y: Q4 EPS guidance raised
  • INFN:Q3 EPS of $0.22 beats by $0.05: revenue of $233.2M beats by $8.15M: revenue +12.5% y/y: strong guidance
  • CLD:Q3 EPS of $0.24 beats by $0.37: revenue of $301.7M misses by $8.72M: revenue -11.9% y/y
  • PNRA:Q3 EPS of $1.32 beats by $0.01: revenue of $665M misses by $1.98: revenue +7.3% y/y
  • AFL:Q3 EPS of $1.56 beats by $0.08: revenue of $5.0B misses by $170M: revenue -12.3% y/y: boosts dividend: guides in-line
  • APC:Q3 EPS of -$0.72 beats by $0.01: revenue of $1.7B misses by $610M: revenue -66.1% y/y
  • TSS: Q3 EPS of $0.65 beats by $0.06: revenue of $707.89M beats by $37.19M: revenue +14.8% y/y: guides above consensus
  • UHS:Q3 EPS of $1.53 misses by $0.04: revenue of $2.23B beats by $10M: revenue +9.3% y/y
  • NBR:Q3 EPS of -$0.14 in-line: revenue of $812.4M beats by $45.7M: revenue -55.1% y/y
  • OI:Q3 EPS of $0.57 beats by $0.02: revenue of $1.57B beats by $10M: reverie -10.3% y/y: guides at low end of estimates
  • CVA:Q3 EPS of $0.22 beats by $0.01: revenue of $422M beats by $16.85M: revenue +1.9% y/y: reaffirms guidance
  • SFLY:Q3 EPS of -$1.61 misses by $0.22: revenue of $167.49M beats by $1.39M: revenue +17.9% y/y: CFO departs company: guides EPS above consensus

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

  • RDWR: Q3 EPS of $0.10 misses by $0.01: revenue of $48.06M misses by $1.12M:revenue -15.4% y/y
  • NOC: Q3 EPS of $2.75 beats by $0.56: revenue of $5.98B beats by $120M: revenue flat y/y: raises FY15 guidance
  • ANTM: Q3 EPS of $2.73 beats by $0.40: revenue of $19.77B beats by $130M: revenue +7.6% y/y
  • HLT: Q3 EPS of $0.23 in-line: revenue of $2.89B beats by $20M: revenue +9.5% y/y: guides in-line
  • TKR: Q3 EPS of $0.55 beats by $0.01: revenue of $707.4M beats by $14.48M: revenue -10.2% y/y: guidance below consensus
  • WBA: FQ4 EPS of $0.88 beats by $0.07: revenue of $28.52B beats by $70M: revenue +49.6 % y/y
  • GRMN:Q3 EPS of $0.51 misses by $0.04: revenue of $679.69M misses by $7.89M: revenue -3.8% y/y
  • NOV:Q3 EPS of $0.61 beats by $0.05: revenue of $3.31B misses by $160M: revenue -40.8% y/y
  • IP:Q3 EPS of $0.97 beats by $0.05: revenue of $5.69B misses by $160M: revenue -6.0% y/y
  • GNRC: Q3 EPS of $0.92 beats by $0.13: revenue of $359.29M beats by $23.8M: revenue +2.0$ y/y

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

  • ABX, AEM, AF, AFFX, AFOP, AMGN, ANIK, AR, BWLD, CACI, CAVM, CBL, CGI, CHDN, CLI, CMO, CMPR, CNL, CNO, CNW, CRUS, CSGP, CW, CWT, DRE, DYAX, ECHO, ELLI, EPR, EQIX, EQY, ESIO, ESRT, ESV, EXR, FFIV, FMC, FORM, FR, GPRO, HBI, HLS, HOS, HT, HUBG, HY, INT, INVN, ISIL, KEX, KRA, KS, LNC, LOCK, LOPE, MAA, MANT, MAR, MC, MTGE, MTW, MUR, NE, NEM, NGD,  NXPI, O, OCN, OGS, OII, PLXS, PPC, PRXL, PSA, PTC, QDEL, QEP, QGEN, QUIK, REG, ROG, ROVI, RRC, SCI, SGI, SGMO, SIMO, SPN, SPRT, SPWR, SSS, STAA, SU, TAL, THG, TSO, TTMI, UNM, VAR, VECO, VRTX, WDC, WES, WGP, WLL, WMB, WTS, YELP

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • MAS: upgrade: equal weight to overweight: Barclays: $36
  • AAPL: upgrade: equal weight to overweight: Pacific Crest: $142
  • TWTR: upgrade: hold to buy: Stifel: $34
  • CBI: upgrade: market perform to outperform: Credit Suisse: $51

DOWNGRADES:

  • EIX: downgrade: overweight to equal weight: Barclays: $68
  • GRUB: downgrade: outperform to sector perform: pt cut from $42 to $27
  • CIB: downgrade: overweight to neutral: JP Morgan: pt cut from $47 to $40
  • JBLU: downgrade: outperform to neutral: Credit Suisse: $28
  • AKAM: downgrade: overweight to neutral: JP Morgan: $65
  • AKAM: downgrade: buy to hold: Canaccord: $65
  • FIVE: downgrade: neutral to sell: Goldman
  • UBS: downgrade: overweight to neutral: JP Morgan
  • CMI: downgrade: outperform to neutral: Baird: pt cut from $162 to $118
  • CMI: downgrade: equal weight to underweight: Morgan Stanley: $79

INITIATIONS:

  • NK: initiated: outperform: FBR Capital: $30
  • YELP: initiated: sell: Roth Capital
  • SUPN: initiated: outperform: Northland Capital: $26

PRICE TARGET CHANGES:

  • BABA: pt raised from $93 to $97: JP Morgan
  • BABA: pt raised from $85 to $92: Axiom Capital
  • BABA: pt raised from $92 to $98: Brean Capital
  • AAPL: pt raised from $150 to $155: Barclays
  • AAPL: pt raised from $140 to $145: Credit Suisse
  • WBA: pt raised from $90 to $105: Jefferies
  • SM: pt raised from $52 to $54: Topeka Capital
  • KR: pt raised from $41 to $43: Telsey Advisory Group
  • ADC: pt raised from $34 to $36: Compass Point
  • ULTI: pt raised from $175 to $205: FBR Capital
  • TSS: pt raised from $43 to $48: Topeka Capital
  • DECK: pt cut from $68 to $62: Brean Capital
  • COH: pt cut from $48 to $47: Topeka Capital
  • AI: pt cut from $18 to $14: Wunderlich
  • HCLP: pt cut from $25 to $12.50: Cowen
  • HCLP: pt cut from $8 to $4: Wunderlich
  • BTU: pt cut from $45 to $21: Cowen
  • TWTR: pt cut from $40 to $33: Barclays
  • TWTR: pt cut from $41 to $34: RBC Capital
  • TWTR: pt cut from $44 to $40: Goldman
  • TWTR: pt cut from $40 to $36: Pacific Crest
  • TWTR: pt cut from $24 to $22: Morgan Stanley
  • TWTR: pt cut from $33 to $30: Nomura
  • SAVE: pt cut from $60 to $50: Cowen
  • KKR: pt cut from $30 to $21: Piper Jaffray
  • IR: pt cut from $66 to $64: Stifel
  • GRUB: pt cut from $50 to $29: Brean Capital

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