OCTOBER 07, 2015
US futures poised to open higher at this 8AM hour as world markets trade positive led by the energy sector. Ahead of the kickoff of earnings seasons tomorrow, traders have a light day on the economic calendar with no major data expected and no Fed speeches announced. Overnight, crude gained more ground following a near 5% jump in the previous session. The commodity’s strength is being triggered by data from the API showing a 1.2M barrel decrease in crude stocks last week and comments by OPEC chief el-Badri anticipating big cuts to oil investment. All eyes will be on EIA Petroleum Inventories slated to be announced at 10:30AM EST.
NEWS:
- BABA: China’s Meituan (owned in part by Alibaba) and Dianping agree to $15B merger
- LMNX: FDA approves Luminex’s ARIES System and HSV 1&2 Assay
- WYNN: LVS: MPEL: MGM: Golden Week viewed as positive
- AAPL: UBS raises Sept quarter iPhone estimate to 50M units
- SUNE: announces that they will not complete $700M buyout of Latin America Power, reports wsj
- ADBE: issues weak guidance for FY16: revenue of $5.7B and EPS of $2.70, below a consensus of $5.93B and $3.19
- NUS: issues announcement that Q3 revenues will be flat due to currency headwinds and lower than expected sales in China
- REGN: SNY: AMGN: Express Scripts to cover both new expensive cholesterol drugs
- ATI: announces weaker guidance for Q3 earnings, -$0.27-$0.32 vs consensus -0.25
- SBUX: appoints first Chief Technology Officer in the company’s history
- ADXS: FDA puts the company’s axalimogene filolisbac IND on clinical hold
- FNV: TCK: SHP: Franco-Nevada to acquire silver stream on Antamina Mine from Teck Resources
- GNCA: Genocea Bio’s GEN-003 achieves primary endpoint in mid-stage genital herpes trial
- MSFT: unveils new notebook with claims that it’s 50% faster than Apple MacBook
- GBX: Greenbrier Announces Order from Saudi Railway Company for 1,200 Railcars
ON THE ECONOMIC CALENDAR:
- 7AM: MBA Mortgage Applications: ACTUAL: composite index +25.5% vs -6.7% last week
- 8:30AM: Gallup US Job Creation Index
- 10:30AM: EIA Petroleum Inventories
- 1PM: $21B, 10 Year Note Auction
- 3PM: Consumer Credit
EARNINGS REPORTED AFTER THE CLOSE YESTERDAY:
- YUM: FQ3 EPS of $1.00 misses by $0.07: revenue of $3.43B misses by $250M: revenue +2.4% Y/Y: guidance lowered
EARNINGS REPORTED BEFORE THE OPENING TODAY:
- MON: FQ4 EPS of -$0.19 misses by $0.17: revenue of $2.4B misses by $0.6B: weak guidance, FY16 EPS $5.10-$5.60 vs consensus $6.20: announces buy back of $3B in shares in new accelerated program: to cut 2600 jobs in the next 18.24 months
- GPN:FQ1 EPS of $1.57 beats by $0.14: revenue of $536.95M beats by $6.42M: revenue +8.4% Y/Y: announces 2-for-1 stock split: raises FY16 EPS guidance
- STZ:FQ2 EPS of $1.56 beats by $0.24: revenue of $1.73B in-line: revenue +7.5% Y/Y: guides higher, raising FY16 EPS to $5.00-$5.20 vs. consensus $4.98
- RPM: FQ1 EPS of $0.82 beats by $0.01: revenue of $1.24B misses by $30M: revenue +3.3% Y/Y: lowers FY16 guidance
- PKE: FQ2 EPS of $0.23 misses by $0.07: revenue of $37.95M misses by $3.8M: revenue +10.4% Y/Y
SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:
- MG
ANALYSTS’ RATINGS CHANGES:
UPGRADES:
- ABT: upgrade: equal weight to overweight: Barclays: pt cut from $55 to $52
- MPC: upgrade: market perform to outperform: Wells Fargo: pt range raised from $57-61 to $58-61
- MJN: upgrade: neutral to buy: Nomura: $93
- HFC: upgrade: hold to buy: Deutsche Bank:
- RIO: upgrade: equal weight to overweight: Morgan Stanley:
- BHP: upgrade: equal weight to overweight: Morgan Stanley
- CTRP: upgrade: hold to buy: BofA/Merrill
- MS: upgrade: market perform to outperform: RBC Capital: $39
DOWNGRADES:
- TSLA: downgrade: buy to neutral: Baird: $282
- PKY: downgrade: outperform to market perform: Wells Fargo: pt range cut from $18-21 to $17-19
- POT: downgrade: buy to hold: HSBC: pt cut from $37.75 to $24.75
- NUS: downgrade: hold to sell: Stifel: $35
- CLD: downgrade: overweight to equal weight: Morgan Stanley: $5
INITIATIONS:
- TSLA: initiated: sector perform: RBC Capital: $280
- JCP: initiated: sell: Citi: $7
- KORS: initiated: sell: Citi: $38
- JWN: initiated: buy: Citi: $92
- LULU: initiated: buy: Citi: $69
- BURL: initiated: buy: Citi: $62
- SIG: initiated: buy: Citi: $170
- TIF: initiated: buy: Citi: $98
- TJX: initiated: buy: Citi: $88
- ROST: initiated: buy: Citi: $59
- URBN: initiated: buy: Citi: $40
- AEO: initiated: neutral: Citi: $16
- ANF: initiated: neutral: Citi: $22
- LB: initiated: neutral: Citi: $89
- KSS: initiated: neutral: Citi: $50
- COH: initiated: neutral: Citi: $31
- M: initiated: neutral: Citi: $52
- GPS: initiated: neutral: Citi: $30
PRICE TARGET CHANGES:
- GOOG: GOOGL: pt raised from $760-780 range to $790-810 range: Wells Fargo
- UA: pt raised to $116 : Citi
- ADBE: pt raised from $91 to $95: JP Morgan
- ADBE: pt raised from $85 to $90: Deutsche Bank
- ADBE: pt raised from $82 to $87: FBR Capital
- VIAB: pt raised from $43 to $45: Topeka Capital
- ALKS: pt raised from $77 to $79: Barclays
- OAS: pt cut from $20 to $18: Topeka Capital
- RDWR: pt cut from $26 to $17: Dougherty
- EXAS: pt cut from $35 to $12: Mizuho
- EXAS: pt cut from $26 to $13: Canaccord
- WMT: pt cut from $76 to $70: Deutsche Bank
- MNK: pt cut from $140 to $104: Piper Jaffray
- YUM: pt cut from $110 to $100: Stifel
- YUM: pt cut from $103o to $87: JP Morgan
- YUM: pt cut from $82-86 range to $74-76 range: Wells Fargo
- PEP: pt cut from $110 to $106: Stifel
- PII: pt cut from $165 to $145: Baird
- GPRO: pt cut from $62 to $35: Morgan Stanley