Morning News

MAY 27, 2015

US futures quiet following  yesterday’s plunge after the sharp rise in the dollar saw investors dumping equities and commodities. With a light economic calendar, retailers could give some directions with TIF, KORS and CHS reporting earnings before the market opens , and retail chain store sales data due out at 8:55.

NEWS:

  • OZRK: Bank of the Ozarks will replace Exelis in the S&P MidCap 400
  • HRL: Hormel Foods buys Applegate for $775M
  • FEYE: announces plans to offer $600M senior notes
  • BLUE: FPRX: bluebird bio and Five Prime enter into partnership on CAR T cell therapy development and commercialization
  • AAPL: Apple granted multi-touch keyboard patent
  • INO: Inovio Pharmaceuticals Partners with GeneOne Life Science for MERS Immunotherapy Clinical Development, as reported by the company website
  • ABBV:MS: announces repurchase of $5B in common stock from Morgan Stanley, reports wsj
  • PLUG: Plug Power Announces Master Sales Agreement With Large Footwear Manufacturer for GenKey Hydrogen Fuel Cell Solution, reports cnn
  • EOX: announced that they will not go ahead with the previously announced stock offering

ON THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 8:55AM: Redbook Chain Store Sales
  • 1PM: $13B, 2 Year FRN Auction
  • 1PM: $35B, 5 Year Note Auction

EARNINGS:

  • KORS: FQ4 EPS of $0.90 misses by $0.01.Revenue of $1.08B in-line: weak guidance: conference call 8AM EST
  • CHS:Q1 EPS of $0.28 in-line.Revenue of $693.3M misses by $20.74M conference call 8:30AM EST
  • TIF: Q1 EPS of $0.81 beats by $0.11.Revenue of $962M beats by $43.32M: strong guidance
  • TOL: FQ2 EPS of $0.37 beats by $0.02.Revenue of $852.58M misses by $8.57M: conference call 11AM EST
  • BMO:Q1 EPS of $1.71 beats by $0.05.Revenue of $4.5B misses by $40M: conference call 2:00PM EST
  • BWS: Q1 EPS of $0.44 beats by $0.08.Revenue of $602.28M  beats by $8.96M: raises FY15 EPS view to $1.84-$1.94 from $1.78-$1.88:conference call 9AM EST
  • DSW: Q1 EPS of $0.53 beats by $0.06.Revenue of $655.49M beats by $2.08M: conference call 8:30AM EST

NOTABLE EARNINGS AFTER THE CLOSE TODAY:

ANW, COST, CPRT, PANW, PLKI, RENT, SMTC, TLYS, UHAL

NOTABLE EARNINGS RECAP FROM LAST NIGHT:

  • VNET:FQ1 EPS of RMB0.12 misses by RMB0.09.Revenue of RMB860.1M misses by RMB39.26M soft guidance
  • TIVO: FQ1 EPS of $0.08 beats by $0.01.Revenue of $92.4M  beats by $1.05M: strong guidance
  • NMBL:FQ1 EPS of -$0.10 beats by $0.03.Revenue of $71.3M beats by $1.53M strong guidance

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • TSO: upgrade: perform to outperform: Oppenheimer: $105
  • PSX: upgrade: perform to outperform: Oppenheimer:$55
  • MPC: upgrade: perform to outperform: Oppenheimer:
  • HFC: upgrade: perform to outperform: Oppenheimer
  • RAI: upgrade: market perform to outperform: Cowen: $86
  • AMED: upgrade: hold to buy: SunTrust:pt raised from $31 to $36
  • CCE: upgrade: hold to buy: HSBC: $48

DOWNGRADES:

  • RYAYY: downgrade: outperform to in-line: Imperial Capital: pt cut from $85 to $70
  • YHOO: downgrade: buy to hold: Evercore: $48
  • AOL: downgrade: buy to hold: Needham
  • AZO: downgrade: buy to hold: Gabelli
  • TMUS: downgrade: outperform to neutral: Macquarie

INITIATIONS:

  • SCOR: initiated: buy: Needham: $66
  • HDP: initiated: outperform: Oppenheimer: $50
  • RAD: initiated: buy: Mizuho: $10
  • EBAY: initiated: buy: Topeka: $68
  • ABBV: reinstated: overweight: JP Morgan: $75
  • VIPS: initiated: buy: Stifel: $32

PRICE TARGET CHANGES:

  • ANF: pt cut from $23 to $19: Mizuho
  • EXPR: pt raised from $18 to $20: Mizuho
  • VLO: pt raised from $65 to $70: Oppenheimer
  • BMRN: pt raised from $125 to $140: JP Morgan

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