Yellen in focus |Morning News

Custom-Caution-Sign-S-3059DECEMBER 02,2015

US futures up modestly at this hour as jobs data as well as  upcoming speeches from Yellen will be critical in setting market expectation. Overnight, the Shanghai climbed 2.3% at the close on hopes the PBOC would introduce more stimulus measures by adding to the six interest rate cuts it unveiled over the last year after a recent raft of indicators have signaled a deepening economic slowdown. Crude trading lower as traders look to inventories data due out this morning.


NEWS:

  • VA: Virgin America files to sell 26.53M shares of common stock for holders
  • YHOO:Yahoo Board to Weigh Sale of Internet Business, reports wsj
  • QCOM: announces a patent license deal with Chinese mobile device maker Xiaomi
  • FB:Facebook plans first Asia-Pacific data center in Taiwan. reports reuters
  • TWTR: Twitter cofounder Ev Williams unloads 1.85 mlm shares
  • WDAY: Workday to expand partnership with ADP for payroll platform
  • ZFGN: Zafgen reports another blood clot-related death in its late-stage study of beloranib in obese patients with Prader-Willi syndrome, reports SA
  • OZM: CF: added to US 1 list at BofA/Merrill
  • GILD:  US Senate Finance Committee has concluded that Gilead knew their Hep C treatment’s price would be out of reach for patients and could cause “extraordinary problems” for government health program

THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 8:15AM: ADP Jobs Report
  • 8:30AM: Productivity and Costs
  • 8:30AM: Gallup US Job Creation Index
  • 9AM: Daniel Tarullo Speaks
  • 10:30AM: EIA Petroleum Inventories
  • 12:25PM: Janet Yellen Speaks
  • 2PM: Fed’s Beige Book
  • 3:40PM: Fed’s Williams Speaks on ” Economic Outlook”

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

  • BOBE:FQ2 EPS of $0.41 beats by $0.02: revenue of $325M beats by $1.65M: revenue -2.5%% y/y: reaffirms guidance
  • GWRE:FQ1 EPS of $0.07 beats by $0.04: revenue of $82.28M beats by $0.85M: revenue +3.2% y/y
  • POWL:FQ4 EPS of $0.45 misses by $0.02: revenue of $162.3M beats by $5.44M: revenue -0.3% y/y
  • ASNA:FQ1 EPS of $0.36 beats by $0.07: revenue of $1.67B misses by $110M: revenue +40.3% y/y

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

  • SAIC: Q3 EPS of $0.73 beats by $0.08: revenue of $1.14B in-line: revenue +14.0% y/y
  • RY: FQ4 EPS of $1.74 beats by $0.10: revenue of $8.02B misses by $540M: revenue -4.3% y/y
  • REX:Q3 EPS of $1.08 misses by $0.20: revenue of $110.58M misses by $6.15M: revenue -20.1% y/y
  • GIII:Q3 EPS of $1.85 beats by $0.07: revenue of $909.87M misses by $3M: revenue +12.0% y/y

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • KLXI: upgrade: underperform to sector perform: RBC Capital: pt cut from $36 to $34
  • FIS: upgrade: neutral to overweight: JP Morgan
  • BMY: upgrade: neutral to buy: Guggenheim
  • KSXI: upgrade: underperform to sector perform: RBC Capital
  • CAFD: upgrade: neutral to buy: Goldman
  • CVX: upgrade: neutral to buy: Citi: pt raised from $95 to $110

DOWNGRADES:

  • JCI: downgrade: outperform to market perform: Blair: $52
  • ARMH: downgrade: outperform to market perform: JMP Securities
  • CHRW: downgrade: neutral to underperform: BofA/Merrill: pt cut from $73 to $66
  • SWFT: downgrade: buy to neutral: BofA/Merrill: pt cut from $21 to $17
  • KNX: downgrade: buy to neutral: BofA/Merrill: pt cut from $29 to $28
  • WERN: downgrade: neutral to underperform: BofA/Merrill: pt cut from $29 to $25
  • OGXI: downgrade: buy to hold: Stifel
  • GLBL: downgrade: neutral to sell: Goldman: $3.75
  • SFY: downgrade: market perform to underperform: Wells Fargo:
  • CPHD: downgrade: outperform to market perform: Wells Fargo
  • NKE: downgrade: conviction buy to buy: Goldman: pt cut from $150 to $148

INITIATIONS:

  • MBLY: initiated: buy: Evercore: $68
  • HYH: initiated: buy: Stifel: $38
  • FANG: initiated: buy: Deutsche Bank
  • PE: initiated: buy: Deutsche Bank: $24
  • LPI: initiated: hold: Deutsche Bank:
  • CALD: initiated: buy: Dougherty & Co: $26
  • RTTR: initiated: buy: Chardan Capital: $3

PRICE TARGET CHANGES:

  • RNG: pt raised from $23 to $26: RBC Capital
  • CERN: pt raised from $65 to $70: RBC Capital
  • GVA: pt raised from $40 to $46: Cowen
  • GWRE: pt raised from $60 to $66: JP Morgan
  • GWRE: pt raised from $70 to $75: Deutsche Bank
  • GWRE: pt raised from $65 to $75: Stephens
  • THC: pt raised from $30 to $34: Mizuho
  • BSN: pt cut from $73 to $72: RBC Capital
  • DG: pt cut from $88 to $82: RBC Capital

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