Morning News

MAY 19, 2015

US futures set to open higher at this 7AM hour following mostly green arrows around the world as investors await consumer spending data and  tomorrows FOMC meeting results. Shanghai led Asian markets continued higher overnight, following a record session for US stocks and a rebound in the US dollar.

NEWS:

  • SBUX: Starbucks and Spotify enter into a music partnership
  • APPL: Apple shelves plans to launch a TV set, reports the wsj
  • FB: Facebook’s CFO weighs in on minimization of WhatsApp and Messenger games at JP Morgan Conference
  • GOOG: GOOGL: AMZN: Google cuts cloud computing prices by 5-30%
  • BA:Boeing Wins $6.1 Billion Plane Order From China Carrier, reports Bloomberg
  • HPQ:HP to sell 51 percent stake of China computing unit to Tsinghua Unigroup, reports reuters
  • AAPL: BABA: Jack Ma confirms reports that Alibaba is in talks with Apple over an electronics payment system, reports reuters
  • LINE: announces public offering of 16M common shares

ON THE ECONOMIC CALENDAR:

  • 8:30AM: Housing Starts
  • 8:55AM: Redbook Chain Store Sales

EARNINGS:

  • SSI: Q1 EPS of -$0.27 beats by $0.01: revenue $369.31M misses by $10.61M: guidance FY15 light: conference call 8:30AM EST
  • HD: Q1 EPS of $1.16 beats by $0.01: revenue of $20.9B beats by $80M: conference call 9AM EST
  • WMT: Q1 EPS $1.03 misses by  $0.01: revenue of $114.8B misses by $1.5B: Q2 guidance EPS $1.06-1.18 v. consensus of $1.17
  • DKS: Q1 EpS of $0.53 in-line: revenue of $1.57B beats by $10M
  • TJX: conference call 11AM EST

RECAP OF SOME NOTABLE EARNINGS FROM LAST NIGHT:

  • TTWO: FQ2 EPS of $0.49 beats by $0.22: revenue of $427.73M misses by $31.21M: increased buyback to 10M shares: looking to China for partnerships: guidance soft
  • GIGA: FQ4 EPS of $0.03 v. -$0.23 in 4Q14: revenue of $4.33M: announced finalization of a $10M order for a major aerospace company
  • A: FQ2 ESP of $0.38 misses by $0.01: revenue of $963M misses by $26.3M: guidance in-line
  • URBN: Q1 ESP of $0.25 misses by $0.05: revenue of $739.01M misses by $19.24M: inventory +14%

SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:

ADI, ADSK, CSC, ETSY, HEI, NDSN, QIHU, TEDU, VSAT

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • XLNX: upgrade; sector weight to overweight: Pacific Crest: $60
  • MA: upgrade: sector weight to overweight: Pacific Crest: $110
  • TTWO: upgrade: neutral to buy: Sterne Agee:
  • TPX: upgrade: neutral to buy: Longbow Research: $73
  • OI: upgrade: underperform to neutral: BofA/Merrill: $28
  • RCL: upgrade: neutral to overweight: JP Morgan: $90

DOWNGRADES:

  • URBN: downgrade: overweight to neutral: JP Morgan: pt cut from $50 to $36
  • URBN: downgrade: buy to neutral: Piper: $36
  • URBN: downgrade: outperform to perform: Oppenheimer: $35
  • AKAM: downgrade: outperform to perform: Oppenheimer:
  • LL: downgrade: buy to hold: Cantor: pt cut from $42 to $26

INITIATIONS:

  • MPLX: initiated: high conviction: Deutsche Bank: $95
  • CTRP: initiated: buy: Guggenheim: $90
  • SMLP: initiated: buy: Deutsche Bank: $34
  • ETP: initiated: buy: Deutsche Bank: $67
  • KMI: initiated: buy: Deutsche Bank: $49
  • EPL: initiated: buy: Deutsche Bank: $38
  • TRIP: initiated: buy: Guggenheim: $100
  • APIC: initiated: outperform: Credit Suisse: $21
  • APIC: initiated: overweight: Morgan Stanley: $19
  • APIC; initiated; buy: Nomura: $18
  • APIC: initiated: overweight: Pacific Crest: $21
  • APIC: initiated: neutral: JP Morgan: $15

PRICE TARGET CHANGES:

  • URBN: pt cut from $43 to $36: Mizuho
  • LGF: pt cut from $40 to $38: Topeka
  • AKAM: pt raised from $79 to $88: UBS
  • GLUU: pt raised from $7 to $9: Stifel
  • INTU: pt raised from $105 to $120: RBC Capital
  • REGN: pt raised from $507 to $52%: Brean Capital

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