FOMC | Morning News

bull-bear1NOVEMBER 18.2015

US futures buck the trend and trade higher even as global markets sold off overnight on the terrorist raid frenzy in Paris and Germany.The US dollar holding onto strength against major currencies, but investors refrained from making major moves as they await FOMC announcement later today. Crude rose modestly overnight amid volatile trading in Asia, with the market largely focusing on over-supply ahead of a meeting of the OPEC next month and EIA Petroleum Inventories this morning at 10:30AM EST.

NEWS:

  • CAG: ConAgra announces plans to separate into two independent public companies
  • CA: announces acceleration of previous buyback program; adds $750M to program
  • PFE: MRK:  FDA designates Pfizer  and alliance partner Merck KGaA’s Orphan Drug- and Fast Track-tagged avelumab a Breakthrough Therapy for the treatment of Merkel cell carcinoma, a rare type of skin cancer
  • YHOO: Yahoo subpoenaed in New York fantasy gaming probe, reports reuters
  • RBS: JPM: Federal prosecutors seek criminal cases against RBS, JPM execs over financial crisis, reports wsj

THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 8:30AM: Housing Starts
  • 10AM: Atlanta Fed’s Business Inflation Expectations
  • 10:30AM: EIA Petroleum Inventories
  • 12PM: Fed’s Kaplan Speaks on “Monetary Policy”
  • 2PM: FOMC Minutes

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

  • JACK:FQ4 EPS of $0.62 misses by $0.03: revenue of $354.07M misses by $2.76M: revenue +2.7% y/y: guides earnings above consensus
  • LZB:FQ2 EPS of $0.41 in-line.Revenue of $382.89M (+4.7% Y/Y) misses by $5.22M
  • VIPS: Q3 EPS of RMB0.76 ($0.12) misses by RMB0.04: revenue of RMB8.67B misses by RMB560M: revenue +60.0% y/y: guidance cut but better than expected
  • MTSI:FQ4 EPS of $0.34 in-line.Revenue of $112.6M (+19.9% Y/Y) beats by $0.39M

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

  • SFUN:Q3 EPS of -$0.08 misses by $0.11: revenue of $248.51M in-line; revenue +30.4% y/y
  • TGT:Q3 EPS of $0.86 in-line: revenue of $17.61B beats by $40M.: revenue +2.1% y/y: narrows full year guidance to $4.65 to $4.75 vs. previous $4.60 to $4.75
  • LEJU:Q3 EPS of $0.16 beats by $0.02: revenue of $151.21M misses by $18.27M: revenue +17.9% y/y
  • SPLS: Q3 EPS of $0.35 in-line: revenue of $5.59B misses by $80M: revenue -6.2% y/y
  • EJ:Q3 EPS of $0.13 beats by $0.03: revenue of $258.69M misses by $16.21M: revenue +18.3% y/y
  • LOW:Q3 EPS of $0.80 beats by $0.02: revenue of $14.36B beats by $50M: revenue +5.0% y/y

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

  • CRM, CTRP, GEOS, GMCR, HI, LB, NTAP, SINA, SMTC, WB

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • MIDD: upgrade: market perform to outperform: BMO Capital: $120
  • AAPL: upgrade: buy to conviction buy: Goldman: $163
  • SHOP: upgrade: market perform to outperform: Raymond James:
  • CGNX: upgrade: hold to buy: Canaccord: $42
  • USG: upgrade: neutral to buy: Northcoast
  • FARO: upgrade: hold to buy: Canaccord: $32
  • TASR: upgrade: neutral to buy: Ladenburg: $24
  • LAZ: upgrade: outperform to strong buy: Raymond James: $60

DOWNGRADES:

  • SM: downgrade: outperform to market perform: BMO Capital: pt cut from $45 to $40
  • PRGO: downgrade: overweight to neutral: JP Morgan: $165
  • XOM: downgrade: market perform to underperform: Raymond James
  • CTXS: downgrade: buy to neutral: Mizuho: $80
  • HIG: downgrade: buy to hold: Argus

INITIATIONS:

  • TREE: initiated; buy: Topeka: $150
  • RATE: initiated: buy: Topeka:$19
  • ETSY: initiated: hold: Topeka: $9
  • CRCM: initiated: hold: Topeka: $6
  • ATRA: assumed: neutral: Goldman: $38
  • JUNO: assumed; neutral: Goldman: $50
  • INCY: initiated: buy: Goldman: $135
  • BMRN: assumed: buy: Goldman: $158
  • BMRN: initiated: perform: Oppenheimer: $119
  • SGEN: initiated: sell: Goldman: $33
  • KITE: initiated: buy: Goldman: $111
  • BLUE: initiated: buy: Goldman: $165
  • HALO: initiated: buy: Citi: $25
  • LMT: initiated: neutral: Credit Suisse: $210
  • TGNA: initiated: overweight; Stephens: $34
  • QRVO: initiated: outperform: JMP Securities

PRICE TARGET CHANGES:

  • HD: pt raised from $137 to $140: RBC Capital
  • DYAX; pt raised from $31 to $37: RBC Capital
  • GPRO: pt cut from $20 to $15: Piper Jaffray
  • DKS: pt cut from $59 to $42: Stephens
  • DKS: pt cut from $53 to $44: Brean Capital
  • DKS: pt cut from $56 to $45: RBC Capital
  • TIF: pt cut from $97 to $90: Cowen

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