PMI | Morning News

520119b5bd3165a931013fb67d9d784dNOVEMBER 02.2015

US futures struggling at this hour as investors open a new month and look towards PMI and SMI data due out this morning after the opening. Overnight, Asian stocks slid to their lowest level in almost three weeks after China’s PMI numbers warned that manufacturing still hasn’t bottomed out despite a slew of stimulus measures. The Chinese economic data also weighed on crude oil as the commodity weakened and is now trading lower after the data was released.

NEWS:

  • CMG: Chipotle closes 43 restaurants amid E.Coli outbreak
  • SHPG: DYAX: Shire to acquire Dyax Corp in $5.9B deal ($37.30/share in cash)
  • BLDP: Ballard signs $3M contract for development of fuel cell module to power trams in China
  • THS: CAG:TreeHouse to buy ConAgra’s private brands business for $2.7B
  • WYNN: LVS: MGM: MPEL:Gross gaming revenue in Macau fell 28.4% to 28.06B patacas in October to break a string of months with declines of over 30%
  • LLY: announces plans to expand the company’s R&D headquarters in Indianapolis
  • MDAS: MedAssets to be acquired by Pamplona Capital in a $2.7B deal ($31.35/share)
  • EDR: files to sell 6.5M shares of common stock

IN BARRONS OVER THE WEEKEND:

  • KMI: Andrew Bary posts his view that the stock could fall another 20%
  • PFE: Jack Hough argues that Pfizer is attractive, with or without Allergan and could return 20% in a year.
  • CAR: Avis shares could double by late 2017, reports Jonathan Laing
  • Sandra Ward reports that Weyerhauser is attractive with a 4.2% dividend yield, and could see +40% within a year
  • OAK: The stock could see +20% over the next 18 months
  • MU: INTC: Micron looks positive within the cloud computing trend, Intel could falter

ON THE ECONOMIC CALENDAR:

  • 9:45AM: PMI Manufacturing Index
  • 10AM: ISM Manufacturing Index
  • 10AM: Construction Spending

THE MOST CLOSELY WATCHED EARNINGS THIS WEEK:

  • MON. NOV 02: FIT, after the close
  • TUES. NOV 03: MBLY, before the opening
  • TUES. NOV 03: TSLA, after the close
  • WED. NOV 04: SUNE and REGN, before the opening
  • WED. NOV 04: FB, FEYE and QCOM, after the close
  • THURS. NOV 05: CELG, before the opening
  • THURS. NOV 05: DIS, SWKS, after the close

SOME NOTABLE EARNINGS REPORTED BEFORE THE OPENING TODAY:

  • CLX:FQ1 EPS of $1.32 beats by $0.14: revenue of $1.39B beats by $10M: revenue +3% y/y
  • V: FQ4 EPS of $0.62 misses by $0.01: revenue of $3.57B in-line: revenue +10.5% y/y: announces acquisition of Visa Europe for up to $23.4B: announces new $5B share repurchase program
  • EL:FQ1 EPS of $0.82 beats by $0.12: revenue of $2.83B beats by $50M: revenue +7.6% y/y: soft FY16 guidance
  • TW:FQ1 EPS of $1.49 beats by $0.15: revenue of $895.62M beats by $14.08M: revenue +2.0% y/y
  • EEP: Q3 EPS of $0.23 beats by $0.01: revenue of $1.27B misses by $200M: revenue -34.5% y/y
  • NBL:Q3 EPS of -$0.21 misses by $0.03: revenue of $801M misses by $161.2M: revenue -36.9% y/y
  • DO: Q3 EPS of $0.99 beats by $0.39: revenue of $609.74M beats by $15.19M: revenue -17.3% y/y
  • EVR: Q3 EPS of $0.81 beats by $0.12: revenue of $305.6M beats by $30.86M: revenue +36.0% y/y
  • BWP:Q3 EPS of $0.15 beats by $0.01: revenue of $294.1M beats by $10.37M: revenue +5.4% y/y

SOME NOTABLE EARNINGS TO BE REPORTED AFTER THE CLOSE TODAY:

  • AHL, AIG, ALDW, ALJ, ALL, AMC, ANH, ARE, AVD, CAR, CBT, CDE, CGNX, CYH, DNB, ENH, ENS, ES, FN, FIT, GGP, ININ, INN, KONA, LMNX, MCEP, MDAS, MDU, MIC, NLS, OLN, ONDK, OTTR, PLOW, PPS, PQ, PXD, QLYS, RAIL, RYN, SSW, TDOC, THC, TNET

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • RPT: upgrade: hold to buy: Wunderlich: $19
  • MSCI: upgrade: underperform to market perform: Keefe Bruyette: pt raised from $59 to $66
  • MSCI: upgrade: neutral to buy: UBS:
  • MGM: upgrade; neutral to buy: UBS:
  • WEN: upgrade: sector perform to outperform: RBC Capital: pt cut from $12 to $11

DOWNGRADES:

  • VRX: downgrade: buy to neutral: Goldman: pt cut from $180 to $122
  • ANET: downgrade: neutral to sell: Goldman: pt cut from $73 to $58
  • ATVI: downgrade: buy to neutral: BofA/Merrill: $37
  • MCO: downgrade; outperform to market perform: FBR Capital: pt cut from $123 to $100
  • DLR: downgrade: outperform to market perform: Raymond James
  • SBRA: downgrade; sector perform to underperform: RBC Capital: pt cut from $26 to $22
  • AAN: downgrade: buy to hold: Cantor: $27
  • QSR: downgrade: outperform to sector perform: RBC Capital: pt cut from $48 to $44

INITIATIONS:

  • CTMX: initiated: buy: Jefferies: $19
  • CTMX: initiated: outperform: Oppenheimer: $17
  • ABTX: initiated: outperform: Baird: $27
  • PSTG: initiated: buy: Evercore: $21
  • HPE: initiated: sector perform: RBC Capital: $17

PRICE TARGET CHANGES:

  • CHTR: pt raised from $204 to $227: Telsey Advisory
  • DLR: pt raised from $73 to $83: RBC Capital
  • DWA: pt raised from $18 to $19: Topeka Capital
  • NKE: pt raised from $137 to $142: Telsey Advisory
  • QLYS: pt raised from $37 to $40: RBC Capital
  • RSG: pt raised from $47 to $50: Imperial Capital
  • AMT: pt raised from $112 to $120: Stifel
  • HOT: pt raised from $84 to $87: RBC Capital
  • AON: pt cut from $110 to $108: RBC Capital
  • DECK: pt cut from $73 to $66: Telsey Advisory
  • DSW: pt cut from $36 to $32: Telsey Advisory
  • MTH: pt cut from $46 to $40: FBR Capital
  • RDN: pt cut from $19 to $16: FBR Capital
  • MTW: pt cut from $16 to $15: RBC Capital
  • HPQ: pt cut from $35 to $13: RBC Capital
  • RSG: pt cut from $47 to $50: Imperial Capital
  • GMCR: pt cut from $65 to $59: Canaccord
  • VRX: pt cut from $224 to $172: Jefferies

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