JULY 27.2015
US futures falling at this 7AM hour following red arrows around the world as markets join the Asian routing. Overnight, the Shanghai dropped 8.5%, the largest one day loss since June 2007, on worse than expected industrial production numbers and concerns that the government will slow down it’s buying. Meanwhile, gold found a footing on safe haven demand but oil continued its fall with crude prices down 0.6%. With little on the economic calendar, traders will begin to look towards the FOMC meeting which begins tomorrow and reports on Wednesday.
NEWS:
- MSFT: SNE: China to end ban of video game consoles, reports the wall street journal
- MSFT: Microsoft could see a 50% upside over the next 3 years, reports Barrons
- FB:Instagram Mobile Ad Revenues to Reach $2.81 Billion Worldwide in 2017, reports emarketer
- TEVA: AGN: MYL: Teva to buy Allergan’s generic drug unit for $40.5B and cancels Mylan bid, reports the wsj
- TEVA: guides higher, raises FY15 EPS to $5.15-$5.40 from $5.05-$5.35, consensus $5.23
- SNY: AZN: Sanofi buys cancer drug Caprelsa from AstraZenica for $330M
- AAPL: BBY: The Apple Watch will debut in more than 100 Best Buy Stores next month
- LNKD: Brean Capital out negative on LinkedIn ahead of earnings (July 30)
- BLDR: files to sell 11M shares of common stock
- MHFI: McGraw Hill is in a $2.2B cash buyout of SNL Financial, reports Bloomberg
- BLPH: Bellerophon’s Bioabsorbable Cardiac Matrix fails clinical trial
- PLUG: Plug Power acquires full control of HyPulsion for $11.47M in common stock
- OIL SECTOR:Sudden Drop in Crude-Oil Prices Roils U.S. Energy Firms’ Rebound, reports the wsj
ON THE ECONOMIC CALENDAR:
- 8:30M: Durable Goods
- 10:30AM: Dallas fed Manufacturing Outlook
EARNINGS REPORTED BEFORE THE OPENING TODAY:
- SOHU: Q2 EPS of -$0.71 beats by $0.09: revenue of $493.57M beats by $12.91M: revenue +23.4% Y?Y
- CYOU: Q2 EPS of $0.95 beats by $0.29: revenue of $202.15M beats by $12.23M: revenue +13.7% Y/Y:
- ROP: Q2 EPS of $1.70 beats by $0.06.Revenue of $892.1M misses by $16.14M: cut FY15 EPS: Q3 EPS soft
- MHFI: Q2 EPS of $1.21 beats by $0.08.Revenue of $1.34B misses by $20M
- POL: Q2 EPS of $0.57 misses by $0.01.Revenue of $887.1M misses by $64.27M
- MGLN: Q2 EPS of $0.56 beats by $0.16: revenue of $1.16B beats by $70M: revenue +30.6% Y/Y
NOTABLE EARNINGS AFTER THE CLOSE TODAY:
- ACC, AHL, ALSN, AMKR, ARE, AVB, BIDU, BRX, CMP, CNL, CR, EMN, GIG, HIG, KN, MSTR, OMI, PCL, PLT, PRE, RE, SIMO, SWFT, SWN, TMK, UDR, WCN, WRB
ANALYSTS’ RATINGS CHANGES:
UPGRADES:
- WFT: upgrade: underweight to equal weight: Barclays: $12
- QCOM: upgrade: equal weight to overweight: Morgan Stanley
- SSYS: upgrade: neutral to buy: Dougherty & Company: $45
- DE: upgrade: underweight to neutral: Goldman:$94
- BPOP: upgrade: neutral to buy: Guggenheim: $37
- ANTM: upgrade: neutral to buy: Sterne Agee: $185
- CI: upgrade: neutral to buy: Sterne Agee
DOWNGRADES:
- OCR: downgrade: overweight to neutral: JP Morgan: $98
- GRUB: downgrade: outperform to market perform: Cowen: pt cut from $39 to $30
- BIIB: downgrade: outperform to neutral: Baird: $316
- RARE: downgrade: overweight to equal weight: Morgan Stanley
- MTW: downgrade: neutral to sell: Goldman: $14
- NAV: downgrade: neutral to sell: Goldman: $12
INITIATIONS:
- DKS: initiated: market perform: Cowen
- PYPL: initiated: overweight: First Analysis
PRICE TARGET CHANGES:
- PFPT: pt raised from $60 to $65: Imperial Capital
- TEVA: pt raised from $78 to $84: Standpoint Research
- FB: pt raised to $125: SunTrust
- TPX: pt raised from $68 to $77: Piper Jaffray
- XON: pt raised from $55 to $70: Wunderlich
- IMGN: pt raised from $15 to $20: RBC Capital
- REGN: pt raised from $560 to $570: RBC Capital
- BIIB: pt cut from $525 to $450: RBC Capital
- ECA: pt cut from $14 to $12: RBC Capital
- JCI: pt cut from $60 to $56: RBC Capital
- PCRX: pt cut from $81 to $72: Jefferies
- ESPR: pt cut from $130 to $120: Citi
- MMM: pt cut from $190 to $181: BofA/Merrill