Oil under pressure |Morning News

Screen Shot 2015-12-18 at 7.52.08 AMDECEMBER 18, 2015

US futures sell off further, following red arrows around the world as traders focus on commodity prices and the fall of the US dollar against the yen, after the Bank of Japan unexpectedly adds to their quantitative easing program. Oil is on track to post its third weekly loss, with US crude down 2.2% and Brent off by 2% after the IEA predicted overnight that oil markets will remain oversupplied at least until the end of 2016  due to sluggish demand and OPEC’s failure to curb production.  Adding to the pressure in the commodity, the US looks likely to lift its four-decade-old crude export ban later today.

NEWS:

  • AAPL: Apple Brings Apple Pay to China Through Partnership With China Union Pay. reports recode
  • OSIR: discloses auditors resignation
  • QIHU:to be acquired by a consortium of investors for approximately $9.3B, including about $1.6B of debt
  • ICPT: FDA extends PDUFA date for PBC treatment

THE ECONOMIC CALENDAR:

  • 9:45AM: PMI Services Index Flash
  • 10AM: Atlanta Fed’s Business Inflation Expectations
  • 11AM: Kansas City Fed Manufacturing Survey
  • 1PM: Baker-Hughes Rig Count

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

  • RHT:FQ3 EPS of $0.48 beats by $0.01: revenue of $523.6M misses by $0.74M: revenue +14.8% y/y: mixed guidance
  • AIR:FQ2 EPS of $0.30 beats by $0.01: revenue of $423.8M beats by $24.37M: revenue +5.1% y/y

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

  • BBRY:Q3 EPS of -$0.03 beats by $0.11: revenue of $557M beats by $67.96M: revenue -29.8% y/y
  • KMX:Q3 EPS of $0.63 misses by $0.05: revenue of $3.54B misses by $70M: revenue +3.8% y/y
  • LEN: FQ4 EPS of $1.21 beats by $0.09: revenue of $2.94B: revenue +14.0% y/y
  • DRI: FQ2 EPS of $0.54 beats by $0.12: revenue of $1.61B misses by $10M: revenue +3.2% y/y: guides higher, raises FY16 adjusted EPS to $3.25-$3.35 from $3.15-$3.30 vs consensus $3.18: raises quarterly dividend 14% to 50c/share: board authorizes new $500M repurchase program

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • CRM: upgrade: market perform to outperform: Wedbush :$96
  • STCK: upgrade: neutral to outperform: Baird: pt raised from $21 to $22
  • MSFT: upgrade: sell to neutral: Goldman:  pt raised from $45 to $57
  • WMB: upgrade: hold to buy: Jefferies: $43

DOWNGRADES:

  • KND: downgrade: outperform to market perform: Avondale: $14
  • BA: downgrade: outperform to market perform: Wells Fargo: pt range cut from$163-166 to $154-158
  • KNX: downgrade: buy to neutral: Citi: $25
  • PN: downgrade: outperform to market perform: Blair
  • MT: downgrade: outperform to sector perform: pt cut from $7 to $4
  • HUBG: downgrade: outperform to neutral: pt cut from $42 to $36
  • IRET: downgrade: buy to hold: Wunderlich: pt cut from $9 to $7.50
  • FOSL: downgrade: neutral to sell: Goldman Sachs

INITIATIONS:

  • N: initiated: buy: SunTrust: $100
  • CRM: initiated: buy: SunTrust: $97
  • CIT: initiated: outperform: JMP Securities: $53
  • O: initiated: buy: Janney Capital: $56
  • ADC: initiated: buy: Janney Capital: $38
  • HDS: initiated: overweight: KeyBanc: $36
  • JKS: initiated: outperform: Northland
  • LOCK: reinstated: buy: Needham: $17
  • CSIQ: initiated: outperform: FBR Capital: $32
  • EFOI: initkated: outperform: FBR Capital: $21.50
  • FCEL: initiated: outperform: FBR Capital: $8
  • JE: initiated: outperform: FBR Capital: $8
  • SUNE: initiated: outperform: FBR Capital: $10.50
  • PLUG: initiated: outperform: FBR Capital: $3
  • HASI: initiated: outperform: FBR Capital: $24
  • SEDG: initiated: outperform: FBR Capital: $36

PRICE TARGET CHANGES:

  • RHT: pt raised from $90 to $95: Deutsche Bank
  • DAL: pt raised from $55 to $68: Deutsche Bank
  • DAL: pt raised from $55 to $62: Cowen
  • ACN: pt raised from $109 to $121: RBC Capital
  • LGND: pt raised from $144 to $146: Roth Capital
  • RHT: pt raised from $88 to $92: Mizuho
  • RHT: pt raised from $90 to $95: RBC Capital
  • UDR: pt raised from $39 to $41: Mizuho
  • HBHC: pt cut from $28 to $25: RBC Capital
  • KNX: pt cut from $30 to $28: Cowen
  • NMBL: pt cut from $14 to $11; Wunderlich
  • NAV: pt cut from $17 to $10: RBC Capital
  • PNR: pt cut from $62 $60: RBC Capital

About the Author

Leave a Reply 0 comments

Leave a Reply: