GDP | Morning News

bullish reversal dayOCTOBER 29.2015

US futures pulling back at this hour after a deluge of earnings reports this weak coupled with a stellar FOMC fueled rally yesterday. The Commerce Department will release its preliminary estimate of US economic growth for Q3 at 8:30AM EST, at the same time as the weekly jobless claims report. Economists are looking for the economy to have grown at an annual rate of 1.6% during the period, well below the 3.9% rate recorded in the second quarter. Overnight, crude saw a profit taking 1% drop after yesterday’s monster rally, which was inspired by smaller than expected US stockpile data.

NEWS:

  • BMY: announces FDA approves expanded use of Yervoy
  • PFE: AGN:Pfizer, Allergan Considering Combining, reports the wsj
  • MRO: slashes quarterly dividend to 5c from 21c
  • DVN: announces 15% cut in Canadian workforce
  • AAPL: SIRI:Apple TV’s Siri Search Will Soon Include Apple Music
  • ORCL: Oracle launches a barrage of new cloud apps/services at OpenWorld 

ON THE ECONOMIC CALENDAR:

  • 8:30AM: Weekly Jobless Claims
  • 8:30AM: GDP Q3
  • 9:45AM: Bloomberg Consumer Comfort Index
  • 10AM: Pending Home Sales
  • 10:30AM: EIA Natural Gas Inventory
  • 1PM: $29B 7 Year Note Auction
  • 3PM: Farm Prices
  • 4:30PM: Money Supply and Fed Balance Sheet

NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

  • BWLD: Q3 EPS of $1.00 misses by $0.29: revenue of $455.5M misses by $9.49M: revenue +22% y/y: lowers guidance
  • AMGN:Q3 EPS of $2.72 beats by $0.34: revenue of $5.72B beats by $400M: revenue +13.7% y/y: guidance raised
  • CRUS:Q2 EPS of $0.65 beats by $0.06: revenue of $306.76M in-line: revenue +45.9% y/y: guides in-line
  • FFIV:FQ4 EPS of $1.84 beats by $0.10: revenue of $501.30M misses by $5.22M: revenue +7.7% y/y: guides below consensus
  • GPRO:Q3 EPS of $0.25 misses by $0.04: revenue of $400.3M misses by $33.3M: revenue +43.0% y/y: announces $300M buyback authorization: guides Q4 EPS $0.35-0.45 vs consensus $0.82
  • HBI:Q3 EPS of $0.50 beats by $0.05: revenue of $1.59B beats by $20M: revenue +13.6% y/y: raises EPS guidance
  • INVN: FQ2 EPS of $0.16 beats by $0.01: revenue of $111.55M beats by $0.71M:revenue +23.7% y/y: guides in-line
  • MAR: Q3 EPS of $0.78 beats by $0.04: revenue of $3.58B misses by $70M: revenue +3.5% y/y
  • MTW:Q3 EPS of $0.09 misses by $0.01: revenue of $863.5M misses by $17.93M: revenue -12.5% y/y
  • TSO: Q3 EPS of $6.48 beats by $0.46: revenue of $7.74B beats by $640M: revenue -30.6% y/y
  • YELP: Q3 EPS of $0.03 beats by $0.12: revenue of $143.6M beats by $2.18M: revenue +40.2% y/y: guides in-line

NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

  • HST: Q3 FFO of $0.34 beats by $0.02: revenue of $1.29B in-line: FY15 guidance in-line
  • SHW:Q3 EPS of $3.97 beats by $0.11: revenue of $3.15B misses by $100M
  • MA:Q3 EPS of $0.91 beats by $0.03: revenue of $2.53B in-line: revenue +1.2% y/y
  • JCI: FQ4 EPS of $1.04 beats by $0.03: revenue of $8.75B misses by $40M: revenue -12.1% y/y
  • MO:Q3 EPS of $0.75 in-line: revenue of $4.98B beats by $80M: revenue +4.8% y/y
  • DLPH:Q3 EPS of $1.28 beats by $0.01: revenue of $3.63B misses by $150M: revenue -3.5% y/y: cuts FY15 guidance of adjusted EPS to $5.15-5.25 from $5.30-5.40
  • TEVA:Q3 EPS of $1.35 beats by $0.07: revenue of $4.82B beats by $50M: revenue -4.7% y/y
  • MGM:Q3 EPS of $0.12 beats by $0.08: revenue of $2.46B beats by $160M: revenue -8.2% y/y
  • OSK:FQ4 EPS of $0.67 misses by $0.11: revenue of $1.58B beats by $20M: revenue -5.4% y/y: guides FY16 EPS $3.00-3.40 vs consensus $3.12
  • CSH: Q3 EPS of $0.19 in-line: revenue of $241.19M misses by $16.21M: revenue -9.7% y/y: guidance FY15 adjusted EPS 99c-$1.05, consensus $1.01
  • PX:Q3 EPS of $1.46 beats by $0.01: revenue of $2.69B misses by $70M: revenue -14.3% y/y: guidance FY15 adjusted EPS $5.78-5.85 vs consensus $5.81
  • TWC: Q3 EPS of $1.62 beats by $0.05: revenue of $5.92B misses by $40M: revenue +3.7% y/y
  • AET: Q3 EPS of $1.90 beats by $0.13: revenue of $15B misses by $220M: revenue +2% y/y: raises FY15 operating EPS to $7.45-7.55 vs consensus $7.53
  • POT:Q3 EPS of $0.37 in-line: revenue of $1.53B beats by $80M: revenue -6.7% y/y: weak guidance sees FY15 EPS $1.55-1.65 vs consensus $1.73
  • CRI:Q3 EPS of $1.52 beats by $0.06: revenue of $850M misses by $1.93M: revenue +6.4% y/y
  • NICE: Q3 EPS of $0.75 beats by $0.07: revenue of $221.08M beats by $0.97M: revenue +6.5% y/y: guidance raised FY15 non-GAAP EPS to $3.06-3.17 from $2.97-3.08 vs. consensus $3.02

NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

  • ARAY, ARI, ATEN, ATR, AUY, AXTI, BIDU, BMRN, BVN, BXP, CALX, CATM, CENX, CLW, COLM, CPSI, CPT, CRAY, CTRL, CXP, DCT, DECK, DLR, EA, EMN, EPAY, ESS, EXPE, EXTR, EYES, FE, FLDM, FLR, FLS, FRGI, FSLR, FWM, GB, IMPV, ISBC, IXYS, KAMN, KRG, LC, LEG, LNKD, MEP, MOBL, MOD, NBIX, NR, NSR, NUS, OIS, ON, OSIS, OUTR, QTM, RGA, RKUS, RSG, SAAS, SAM, SBUX, SCTY, SEM, SGEN, SHO, TRMB, TSRO, TSYS, TUES

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • CPG: upgrade: equal weight to overweight: Barclays: $21
  • GNRC: upgrade: underperform to neutral: BofA/Merrill
  • GRMN: upgrade: sell to neutral: Citi: $34
  • MPEL: upgrade: underweight to equal weight: Morgan Stanley

DOWNGRADES:

  • RL: downgrade: overweight to equal weight: Barclays: pt cut from $150 to $130
  • GPRO: downgrade: neutral to underweight: Piper Jaffray: pt cut from $25 to $20
  • BWLD: downgrade: outperform to market perform: Wells Fargo: pt range cut from $195-200 to $170-175
  • LQ: downgrade: buy to neutral: BofA/Merrill: $18
  • LQ; downgrade: outperform to market perform: Wells Fargo: pt range cut from $20-21 to $18-19
  • FFIV: downgrade: outperform to market perform: BMO Capital: $108
  • SINA: downgrade: buy to neutral: Citi
  • ROK: downgrade: neutral to underperform: BofA/Merrill

INITIATIONS:

  • LB: initiated: equal weight: Barclays: $85
  • ATHM: initiated: buy: Citi: $45

PRICE TARGET CHANGES:

  • VRTX: pt raised from $163 to $180: Piper Jaffray
  • WM: pt raised from $55 to $56: Imperial Capital
  • AKAM: pt cut from $59 to $49: FBR Capital
  • CHRW: pt cut from $74 to $71: Cowen
  • CVA: pt cut from $24 to $20: Imperial Capital
  • HLS: pt cut from $50 to $40: Mizuho
  • SLCA: pt cut from $30 to $27: Cowen
  • DIS: pt cut from $138 to $136: Topeka Capital
  • INVN: pt cut from $18 to $14: Topeka Capital
  • GPRO: pt cut from $75 to $55: JP Morgan

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