Fed Hike | Morning News

High Yield HorrorsDECEMBER 17. 2015

US futures point to a higher opening as global markets trek higher after the Fed hikes rates and Yellen’s speech takes on dovish tones. Overnight, crude prices momentarily dipped below $35/bbl  and remain negative after the commodity saw a surprising rise in US inventory.

NEWS:

  • LMT: RTN:Obama administration authorizes $1.83 bln arms sale to Taiwan, reports reuters
  • FIVE: Five Below  will replace UIL Holdings in the S&P SmallCap 600 after Friday’s close
  • AIG: announces the authorization of an additional $3B to buybacks
  • DAL: Delta Air Lines sees FY15 EPS growth of 35%
  • MSFT:Microsoft Unveils Plans for China Joint Venture, reports the wsj
  • OCLS:Oculus receives FDA clearance for Microcyn-based SebDerm Gel
  • BA:Boeing and Jet2.com finalize order for three additional next-gen 737-800s
  • FB:Brazil Court Suspends Facebook’s WhatsApp for 48 Hours, reports the wsj
  • P: The CRB posts royalty rates

THE ECONOMIC CALENDAR:

  • 8:30AM: Weekly Jobless claims
  • 8:30AM: Philly Fed Business Outlook
  • 8:30AM: Current Account
  • 9:45AM: Bloomberg Consumer Comfort Index
  • 10AM: Leading Indicators
  • 10:30AM: EIA Natural Gas Inventory
  • 4:30PM: Money Supply and Fed Balance Sheet

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

  • PIR:FQ3 EPS of $0.13 beats by $0.01: revenue of $472.5M misses by $19.65M: revenue -2.5% y/y: soft guidance
  • JBL:FQ1 EPS of $0.85 beats by $0.05: revenue of $5.2B misses by $10M: revenue +14.3% y/y: guidance raised
  • FDX:FQ2 EPS of $2.58 beats by $0.06; revenue of $12.5B beats by $50M: revenue +4.7% y/y: solid earnings
  • ORCL: FQ2 EPS of $0.63 beats by $0.03: revenue of $9B misses by $60M: revenue -6.3% y/y: guides revenue above consensus
  • MLHR: FQ2 EPS of $0.57 beats by $0.04: revenue of $580.4M misses by $0.75M: revenue +2.7% y/y: guides in-line

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

  • GIS:EPS of $0.82 misses by $0.01: revenue of $4.42B misses by $190M: revenue -6.2% y/y
  • RAD: Q3 EPS of $0.06 in-line: revenue of $8.15B misses by $30M: revenue +21.8% y/y
  • ACN: FQ1 EPS of $1.28 misses by $0.04: revenue of $8.01B beats by $90M: revenue +1.4% y/y
  • WGO:FQ1 EPS of $0.32 misses by $0.05: revenue of $214.2M misses by $12.06M: revenue -4.5% y/y

SOME  NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

  • AIR, RHT

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • P: upgrade: underperform to market perform: FBR Capital: $16
  • SCTY: upgrade: market perform to outperform: Bernstein: $69
  • MU: upgrade: equal weight to overweight: Morgan Stanley: pt raised from $16 to $18
  • CPHD: upgrade: hold to buy: Needham: $44
  • Q: upgrade: buy to conviction buy: Goldman:
  • FINL: upgrade: neutral to buy: Citi: pt raised from $19 to $20
  • COMM: upgrade: neutral to overweight: JP Morgan
  • ADTN: upgrade: neutral to overweight: JP Morgan: pt raised from $15 to $22.50
  • QCOM; upgrade: JP Morgan: neutral to overweight: pt cut from $57.50 to $55

DOWNGRADES:

  • GLW: downgrade: overweight to neutral: JP Morgan
  • TK: downgrade: outperform to sector perform: RBC Capital: pt cut from $52 to $16
  • TU: downgrade: outperform to sector perform: RBC Capital: pt cut from $47 to $41
  • VNR: downgrade: buy to hold: Wunderlich: pt cut from $12 to $4
  • HOLI: downgrade: buy to neutral: Goldman: $24.60
  • VRX: downgrade: buy to neutral: Mizuho: pt raised from $111 to $130
  • LII: downgrade: outperform to market perform: Wells Fargo:
  • YDKN: downgrade: strong buy to outperform: Raymond James: pt raised from $26 to $27
  • HTH: downgrade: outperform to market perform: Raymond James
  • SBNY: downgrade: strong buy to outperform: Raymond James
  • PCBK: downgrade: outperform to market perform: Raymond James
  • LKFN: downgrade: outperform to market perform: Raymond James
  • PIR: downgrade: hold to sell: Deutsche Bank:
  • IMS: downgrade: overweight to equal weight; Barclays
  • CEB: downgrade: equal weight to underweight: Barclays: pt cut from $78 to $68
  • CMA: downgrade: neutral to sell: Goldman
  • LL: downgrade: neutral to sell: Goldman: $13

INITIATIONS:

  • RLYP: initiated: buy: HC Wainwright: $63
  • STZ: reinstated: overweight: Barclays: $155
  • KATE: initiated: neutral: Goldman: $20
  • MRNS: initiated: outperform: RBC Capital: $14
  • RSO: initiated: outperform: FBR Capital: $12
  • WCN: initiated: overweight: JP Morgan

PRICE TARGET CHANGES:

  • JBL: pt raised from $25 to $26: RBC Capital
  • P: pt raised from $25 to $30: JP Morgan
  • AAPL: pt cut from $150 to $140: RBC Capital
  • SJR: pt cut from $27 to $25: RBC Capital
  • TGP: pt cut from $29 to $23: RBC Capital
  • TOO: pt cut from $20 to $11; RBC Capital
  • ORCL: pt cut from $48 to $46: RBC Capital
  • PIR: pt cut from $7 to $5: Telsey Advisory
  • PN: pt cut from $20 to $17: Compass Point
  • CHKE: pt cut from $28 to $23: Brean Capital

 

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