Yellen in focus | Morning News

stock market newsJULY 15, 2015

US futures up nominally at this 7AM hour as traders await a heavy day of economic news, including PPI and industrial production data, along with Yellen’s testimony before congress which could give some hint as to the timing on interest rate hikes. The speech is scheduled for 10AM but the testimony should be available by 8:30AM.  Despite data out showing that China’s economy grew an annual 7% in the second quarter, the Shanghai fell 4.4% overnight.

NEWS:

  • PETX: announces positive AT-002 results, which stimulates appetite in dogs
  • RARE: announces $250M stock offering
  • TSLA: Tesla’s Nevada Holdings Nearly Triples, reports the wsj
  • CELG: RCPT: Celgene to buy Recpetos for around $7.2B ($232/share)
  • ARNA: CELG: Piper out positive on the Celgene purchase of Recpetos for Arna
  • MJN: guides lower for FY15: cuts FY15 to $3.63-$3.78 from $3.90-$4.00 vs $3.94 analyst consensus estimate, and sees Q2 EPS of $0.76, vs. $0.89 analysts consensus
  • WLT: announces plans to file for Chapter 11 backruptcy
  • TM:Toyota recalls 625,000 hybrid cars globally for software glitch, reports reuters
  • LRCX: provides FY16 EPS and revenue above analysts consensus

ON THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 8:30AM: Producer Price Index
  • 8:30AM: Empire State Manufacturing Survey
  • 9:15AM: Industrial Production
  • 9:15AM: Capacity Utilization
  • 10AM: Yellen delivers semi-annual monetary policy
  • 10AM: Atlanta Fed’s Business Inflation Expectations
  • 10:30AM: EIA Petroleum Inventories
  • 12:25PM: Fed’s Loretta speaks: Economic Outlook
  • 2PM Fed’s Beige Book
  • 3PM: Fed’s Williams speaks: Economic Outlook

RECAP OF SOME NOTABLE EARNINGS FROM LAST NIGHT:

  • YUM: Q2 EPS of $0.69 beats by $0.06.Revenue of $3.11B misses by $80M:
  • CSX: Q2 EPS of $0.56 beats by $0.03.Revenue of $3.06B (-5.6% Y/Y) misses by $70M
  • HCSG: Q2 EPS of $0.23 in-line.Revenue of $355.35M (+11.3% Y/Y) misses by $5.15M
  • PPHM: FQ4 EPS of -$0.07 beats by $0.01.Revenue of $9.3M (+43.7% Y/Y) beats by $2.88M

EARNINGS:

  • BLK: Q2 EPS of $4.96 beats by $0.16.Revenue of $2.91B (+4.7% Y/Y) beats by $60M: conference call 8:30AM EST
  • PNC: Q2 EPS of $1.88 beats by $0.12.Revenue of $3.87B (+1.6% Y/Y) beats by $90M: conference call 10:30AM EST
  • DAL:Q2 EPS of $1.27 beats by $0.06.Revenue of $10.71B (+0.8% Y/Y) beats by $60M
  • BAC:Q2 EPS of $0.41 beats by $0.05.Revenue of $22.34B (+1.7% Y/Y) beats by $1.02B: conference call 8:30AM EST

SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:

  • NFLX, INTC, KMI, CNS, WTFC, EWBC, UMPQ

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • LBTYA: upgrade: buy to conviction buy: Goldman:
  • BIIB: upgrade: neutral to buy: BofA/Merrill: $466
  • GES: upgrade: underperform to market perform: Telsey Advisory Group: pt raised from $18 to $23
  • LNKD: upgrade: equal weight to overweight: Barclays: pt raised from $225 to $250
  • PTCT: upgrade: neutral to overweight: JP Morgan: pt raised from $74 to $100
  • CSX: upgrade: sector perform to outperform: RBC Capital: pt raised from  $34 to $37
  • PNRA: upgrade: underweight to overweight: Piper Jaffray: $200 (that’s a double upgrade)

DOWNGRADES:

  • VOD: downgrade: buy to neutral: Goldman:
  • LLY: downgrade: overweight to equal weight: Morgan Stanley
  • SINA: downgrade: buy to hold: Deutsche Bank:

INITIATIONS:

  • INTC: initiated: neutral: Mizuho: $32
  • QCOM: initiated: neutral: Mizuho: $68
  • PYPLV: initiated: outperform: Keefe Bruyette: $43

PRICE TARGET CHANGES:

  • GES: pt raised from $20 to $24: Wunderlich
  • AMZN: pt raised from $450 to $505: Monness Crespi
  • PANW: pt raised from $210 to $220: Deutsche Bank
  • CELG: pt raised from $160 to $175: Deutsche Bank
  • CELG: pt raised from $135 to $150: RBC Capital
  • GD: pt raised from $152 to $161: RBC Capital
  • EA: pt raised from $72 to $79: Piper Jaffray
  • NFLX: pt raised from $107 to $114: Topeka Capital
  • WFC: pt raised from $60 to $63: FBR Capital
  • WFC: pt raised from $59 to $61: RBC Capital
  • WFC: pt raised from $54 to $55: Compass Point
  • JPM: pt raised from $68 to $78: CLSA
  • ZGNX: pt raised from $20 to $28: Brean Capital
  • NLNK: pt raised from $50 to $62: Mizuho
  • SAVE: pt cut from $100 to $85: Imperial Capital
  • AA: pt cut from $16 to $13: Cowen
  • MJN: pt cut from $99 to $89: JP Morgan
  • XEC: pt cut from $125 to $120: Topeka Capital
  • YHOO: pt cut from $59 to $50: SunTrust
  • ADSK: pt cut from $70 to $60: Baird

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