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