Santa Rally? |Morning News

fp1205_santastockrally_ccNOVEMBER 23, 2015

US futures flat at this hour after global markets trade mostly in the red.  As the holidays season officially gets underway and consumer spending takes center stage, some traders are questioning the possibility that we won’t see a Santa rally this year. Overnight, crude continued its selloff, as part of a wider decline in commodity prices and renewed concerns of oversupply with OPEC and the strength of the US dollar. The euro slumped to a seven-month low, dropping as far as $1.0601, after ECB President Mario Draghi offered the strongest hint yet that the ECB will launch additional stimulus at its policy meeting next week.

NEWS:

  • PFE: AGN:Pfizer, Allergan Agree on Historic $150B Merger Deal, reports the wsj
  • CMTL: TSYS:Comtech to acquire TeleCommunication Systems for $430.8M
  • NVS: Novartis’ Cosentyx granted two EU approvals
  • GILD: Gilead granted marketing authorization in EU for Genvoya
  • LGF:‘The Hunger Games: Mockingjay – Part 2’ Falling Below Box Office Expectations
  • WHR: Barron’s Evi Salzman reports that smart acquisitions and cost cutting will help boost WHR shares by 25%
  • HFC: files automatic mixed securities shelf
  • SCMP: BABA: Alibaba in talks to acquire a stake in SCMP
  • M: Barron’s Vito Racanelli argues that Macy’s looks cheap

THE ECONOMIC CALENDAR:

  • 8:30AM: Chicago Fed National Activity Index
  • 9:45AM: PMI Manufacturing Index Flash
  • 10AM: Existing Home Sales

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE BELL:

  • MNK:FQ4 EPS of $1.84 beats by $0.07: revenue of $882.4M beats by $11.88M: revenue +31.0% y/y: upbeat guidance
  • NM:Q3 EPS of -$0.23 in-line: revenue of $130.96M beats by $3.38M: revenue -14.2% y/y
  • TSN: FQ4 EPS of $0.83 misses by $0.05: revenue of $10.51B beats by $170M: revenue +4.1% y/y: guides FY16 revenue about $41B vs. consensus $41.1B
  • TSL: Q3 EPS of $0.21 misses by $0.07: revenue of $792.6M beats by $30.03M: revenue +28.5 % y/y: raises FY15 total PV module shipments to 5.5GW – 5.6GW 

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

  • BRCD, CPRT, CUB, DY, ENTA, PANW, POST, TEDU, TOUR, YY

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • PKY: upgrade: neutral to buy: Mizuho: $19
  • TAC: upgrade: underperform to sector perform: RBC Capital: pt raised from $6 to $7
  • PNRA: upgrade: hold to buy: Maxim Group: pt raised from $208 to $210
  • HPQ: upgrade: hold to buy: Maxim Group: pt cut from $28 to $17
  • SYF: upgrade: neutral to buy: Sterne Agee: $38
  • JRVR: upgrade: market perform to outperform: BMO Capital: pt raised from $30 to $36
  • PEP: upgrade: reduce to neutral: Nomura: pt raised from $83 to $100
  • GHDX: upgrade:neutral to buy: UBS
  • KEY: upgrade: hold to buy: Jefferies: pt raised from $15 to $15.50
  • TEVA: upgrade: neutral to buy: Goldman: $75
  • YPF: upgrade: neutral to buy: Goldman: pt raised from $25 to $28.50
  • WSH: upgrade: sell to hold: Deutsche Bank: pt raised from $41 to $47
  • STZ: upgrade: market perform to outperform: Cowen: pt raised from $135 to $170
  • PBF: upgrade: neutral to buy: Goldman: pt raised from $39 to $48
  • UVE: upgrade: market perform to outperform: Keefe Bruyette
  • K: upgrade: neutral to outperform: Credit Suisse: pt raised from $72 to $76
  • DKS: upgrade: hold to buy: Canaccord: $48

DOWNGRADES:

  • TTM: downgrade: neutral to sell: Goldman
  • CMG: downgrade: buy to underperform: BofA/Merrill: pt cut from $750 to $470
  • CMG: downgrade: buy to neutral: Sterne Agee
  • PSX: downgrade: neutral to sell: Goldman: pt cut from $92 to $85
  • CTCT: downgrade: hold to sell: Stifel: $20
  • FCS: downgrade: positive to neutral: Susquehanna: $20
  • VIAB: VIA: downgrade: buy to hold: Deutsche Bank: $56
  • CAVM: downgrade: market perform to underperform: JMP Securities: $50
  • TXTR: downgrade: outperform to neutral: Credit Suisse: pt cut from $27 to $24

INITIATIONS:

  • MTCH: initiated: buy: Axiom Capital: $18
  • MTCH: initiated: sell: BTIG Research: $11
  • MYOK: initiated: outperform: Wedbush: $22
  • MRTX: initiated: neutral: Citi: $43
  • IOTS: initiated: outperform: Oppenheimer: $8
  • CHRS: initiated: overweight: Barclays: $46
  • HZNP: reinstated: buy: Jefferies: $32

PRICE TARGET CHANGES:

  • ANF: pt raised from $22 to $28: Telsey Advisory Group
  • ANF: pt raised from $20 to $25: RBC Capital
  • MSFT: pt raised from $56 to $60: UBS
  • FL: pt raised from $73 to $75: UBS
  • RATE: pt raised from $14 to $20: Needham
  • INFN: pt raised from $24 to $25: Needham
  • EQR: pt raised from $84 to $88: Argus
  • ACM: pt raised from $36 to $38: Argus
  • AYI: pt raised from $220 to $275: Piper Jaffray
  • VRSN: pt raised form $74 to $84: JP Morgan
  • FRAN: pt raised from $12 to $14: Mizuho
  • ADI: pt cut from $70 to $68: RBC Capital
  • HPE: pt cut from $17 to $15: RBC Capital
  • QCOM: pt cut from $72 to $63: RBC Capital
  • S: pt cut from $6 to $5: RBC Capital
  • BOFI: pt cut from $132 to $33: FBR Capital
  • SQBG: pt cut from $20 to $16: Roth Capital
  • AMBA: pt cut from $102 to $77: Pacific Crest
  • SUNE: pt cut from $16 to $9: Deutsche Bank
  • CMG: pt cut from $750 to $680: JP Morgan
  • CMG: pt cut from $680-$700 range to $520-$535 range: Wells Fargo
  • CMG: pt cut from $718 to $585: Maxim Group

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