AUGUST 10.2015
US futures point to a solid opening at this 7AM hour. Retail sales will be the focus this week. Shanghai up almost 5% after China’s trade data disappointed, bringing hopes of more stimulus by the China’s central bank. Crude is little changed as it moves off overnight lows.
NEWS:
- CTL: announces 1000 jobs cuts companywide
- PCP: Berkshire Hathaway announces buy of Precision Castparts in $37.2B cash deal
- BABA: Alibaba and Suning, China’s largest electronics retailer, in $6.9B strategic partnership, reports reuters
- INO: AstraZeneca to Pay Inovio Up to $700 Million for Cancer Drug, reports bloomberg
- UAN: RNF: CVR Partners announces agreement to buy Rentech for $533M
- QURE: BMY: Bristol-Myers reports 9.9% stake in uniQure
- SCTY: announces plans to expand to Vermont
- INTC: QCOM: TXN: NVDA: SNDK: Macquarie upgrades US semiconductors to positive
- XON: SYN: Intrexon and Synthetic Biologics Enter ECC to Develop Novel Biotherapeutics, reports prnwswire
- TSLA: Tesla burns cash, loses more than $4K on every car sold, reports reuters
SOME NOTABLE BARRON’S ARTICLES OVER THE WEEKEND:
- DIS shares could rally 50% in 3 years.
- CAT is primed for a rebound, and could reach $90 in one year.
- HTZ shares could double to $30.
- URI could rebound to $85
- Z remains overpriced
- Time to buy commodities.
- BDX could rise 33$ within 2 years.
ON THE ECONOMIC CALENDAR:
- 10AM: Labor Market Condition Index
- 12:25PM: Fed’s Lockhart to speak (Last week, Lockhart suggested that Fed policy makers are pre parted to raise the Fed-funds rate in Sept. Expect him to reiterate that message)
- 12:30PM: TD Ameritrade IMX
EARNINGS REPORTED BEFORE THE OPENING THIS MORNING:
- INO: Q2 EPS of -$0.09 beats by $0.04: revenue of $5.3M misses by $0.22M: revenue +39.5% Y/Y
- ACHN: Q2 EPS of -$0.25 misses by $0.07: revenue of $0.71M: guidance views FY15 EPS (15c) vs. consensus (69c)
- AES: Q2 EPS of $0.25 misses by $0.02: revenue of $3.86B misses by $640M
- ENDP: Q2 EPS of $1.08 beats by $0.06: revenue of $735.17M beats by $7.72M: revenue +24.0% Y/Y
SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:
- APEI, BDE, CALL, CARA, CHMI, CLDX, CUI, DTSI, ENV, FF, FNV, GSAT, GTY, HALO, ICUI, IFF, IMN, KEYW, KHC, KITE, LNCE, LOPE, LYV, MCC, MDR, MM, MODN, MR, MXL, NVAX, OMED, OMER, RAX, REN, RENT, SCLN, SF, SHAK, TDW, TTWO, TUBE, VIPS, XON, XONE, ZGNX
ANALYSTS’ RATINGS CHANGES:
UPGRADES:
- RIG: upgrade: underperform to hold: Jefferies: $13
- TXN: upgrade: neutral to outperform: Macquarie:
- SPK: upgrade: neutral to buy: Janney Capital
DOWNGRADES:
- KERX: downgrade: buy to neutral: Roth Capital: pt cut from $11 to $6
- WLK: downgrade: neutral to sell: Goldman: pt cut from $66 to $60
- INTU: downgrade: outperform to market perform: Raymond James
- TUBE: downgrade: outperform to market perform: BMO Capital
- EOG: downgrade: outperform to perform: Oppenheimer:
- MRO: downgrade: outperform to perform: Oppenheimer
INITIATIONS:
- DNAI: initiated: buy: Jefferies: $37
- CFG: initiated: buy: BofA/Merrill: $32
- CHMA: initiated: outperform: $40: William Blair
- LITE: initiated: outperform: RBC Capital: $22
- OLLI: initiated: outperform: RBC Capital: $23
PRICE TARGET CHANGES:
- NFLX: pt raised from $126 to $161: Topeka Capital
- EA: pt raised from $79 to $85: Piper Jaffray
- GME: pt raised from $52 to $56: Piper Jaffray
- ATVI: pt raised from $30 to $33: Piper Jaffray
- LGF: pt raised from $40 to $43: Wunderlich
- NILE: pt raised from $30 to $33: RBC Capital
- REGN: pt raised from $495 to $527: Roth Capital
- MHK: pt raised from $210 to $237: RBC Capital
- DISH: pt raised from $50 to $60: FBR Capital
- WWAV: pt raised from $55 to $60: SunTrust
- CRZO: pt cut from $62 to $48: Imperital Capital
- GRPN: pt cut from $11 to $8: Brean Capital
- GRPN: pt cut from $8 to $6: RBC Capital
- RJET: pt cut from $17 to $10: Imperial Capital
- CNK: pt cut from $54 to $50: RBC Capital
- EOG: pt cut from $106 to $96: RBC Capital
- RAX: pt cut from $43 to $36: RBC Capital
- FOSL: pt cut from $65 to $60: Piper Jaffray