PPI in focus | Morning News

MAY 14, 2015

US futures rise after a disappointing session yesterday as the market gave back its gain after disappointing retail sales data. Investors look to PPI, core PPI data and weekly jobless claims later this morning for some direction in the markets.  with the euro breaching its 3 month high, the selloff in the dollar continues as it falls to the lowest level since late January as speculation rises that the rate hike will be put on hold with recent sluggish economic data.

 

NEWS:

  • T:  Cox Communications suing AT&T for 3 patent infringements
  • DIS: Avengers: Age of Ultron opens in China, topping best record: globally, over $1B brought in by the movie
  • BABA: Alibaba to focus on expansion abroad, new CEO says, reports the wsj
  • SBH: confirms data breach involving payment cards
  • AAPL: Apple and A123 close to settling battery lawsuit, reports reuters
  • AAPL: UBS out positive on Apple sales in China
  • MS: fined $2m for short selling, reports the wsj
  • WMT: AMZN: Wal Mart announces new subscription shipping service at half the AMZN price
  • PBYI: releases 4 abstracts for its breast cancer drug, PB272

ON THE ECONOMIC CALENDAR:

  • 8:30AM: Weekly Jobless Claims
  • 8:30AM: PPI (Producer Price Index)
  • 8:30AM: Core PPI
  • 9:45AM: Bloomberg Consumer Comfort Index
  • 10:30AM: EIA Natural Gas Inventory
  • 1PM: $16B, 30 Year Note Auction
  • 4:30PM: Money Supply and Fed Balance Sheet

RECAP OF SOME NOTABLE EARNINGS LAST NIGHT:

  • CSCO:FQ3 EPS of $0.54 beats by $0.01: revenue of $12.1B beats by $30M:  guidance in-line
  • SHAK: Q1 EpS of $0.04 beats by $0.07: revenue of $37.8M beats by $3.89M: sss +11.2% v. +7% consensus
  • CTRP: Q1 EPS of -$0.15 beats by $0.12: revenue of $373.41M beats by $10.81M:  raises guidance
  • NTES: Q1 EPS of RMB10.81 beats by RMB2.12: revenue of RMB3.88B beats by RMB680M: revenue grew 54% Y/Y
  • VIPS: Q1 EPS of $0.13 beats by $0.03: revenue of $1.39B beats by $100M: light guidance
  • FENG: Q1 EPS of -RMB.16 v. RMB.80 in 1Q14: revenue of RMB 365.1M misses by RMB 11.71M: weak guidance
  • JCP: Q1 EPS of -$0.57 beats by $0.20: revenue of $2.86B misses by $10M:

EARNINGS:

  • KSS: Q1 EPS of $0.63 beats by $0.08: revenue of $4.12B misses by $70M: inventories +4.6%:   conference call 8:30AM EST
  • STOR: Q1 FFO of $0.34 beats by $0.04: revenue of $61.5M beats by $3.14M: guides higher for FY15 AFFO
  • PLCE: Q1 EPS of $0.83 beats by $0.01: revenue of $404.9M misses by $0.45M: conference call 8AM EST
  • HIMX: Q1 EPS of $0.08 beats by $0.01.Revenue of $179M (-8.0% Y/Y) misses by $3.9M: guides lower for Q2: conference call 8AM EST

SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:

JWN, AMAT, KING, LOCO

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • IR: upgrade: equal weight to overweight: KeyBanc: $80
  • CROX; upgrade: neutral to overweight: Piper: pt raised from $13 to $17
  • SHAK: upgrade: underperform to neutral: Longbow
  • EAT: upgrade: hold to buy: Miller Tabak
  • URBN: upgrade; market perform to outperform: Telsey: $46
  • CTRP: upgrade: perform to outperform: Opco:
  • JPHT: upgrade: sector weight to overweight: KeyBanc: $100
  • DD: upgrade: underperform to neutral: BofA/Merrill: $76

DOWNGRADES:

  • M: downgrade: outperform to market perform: Telsey: pt cut from $78 to $72
  • DUK: downgrade: buy to neutral: Credit Suisse: $86

INITIATIONS:

  • BMY: initiated: hold: Berenberg: $70
  • KMX: initiated: buy: Sterne Agee: $87
  • COH: initiated: neutral: Wedbush: $37
  • KORS: initiated: neutral: Wedbush: $63
  • KATE: initiated: outperform: Wedbush: $39

PRICE TARGET CHANGES:

  • GPN: pt raised from $100 to $118.50: Citigroup
  • SHAK: pt raised from $40 to $60: Jefferies
  • CTRP: pt raised from $70 to $96: Brean Capital

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