Morning News

MARCH 10. 2016

SOME GREAT NEWS THIS MORNING

• My blog is going private.
• My thanks for all the wonderfully positive feedback.
• Best wishes for a plethora of successful trades.
• Remember to stay informed and stay disciplined. 

Volatility Ahead| Stay Disciplined | Morning News

MARCH 09, 2016
US futures pointing to a higher opening at this 7AM hour as global markets trade mixed with European shares green, buoyed by oil prices as traders focus on tomorrow's ECB meeting. Meanwhile, Asian stocks took a hit and closed mostly negative with China breaking a 6 session win streak, burdened by worries over the unstable metal futures. Overnight, oil prices slipped before buyers came into the commodity with crude now seeing green in early morning trading with investors betting that US production data will show further declines when they are announced at 10:30AM EST. In other crude news, Iraq's Deputy Oil Minister commented that the world worlds biggest oil exporters, both in and outside of OPEC, plan to meet in Moscow on March 20 to discuss the output freeze.

NEWS:

• AMZN: launches shopping network arena with live show
• LVLT: expands $775M debt offering
• PLNT: mentioned as a short idea by Ben Axler at the Harbor Investment Conference
• CRWN: Hallmark to buy remaining shares of  Crown Media for $5.05/share
• PFE: announces launch of $5B accelerated share repurchase authorization
• UAL: announces RPM +2.7% 
• MDVN: FDA lifts partial clinical hold on pidilizumab IND
• CMG: four employees fall ill with the norovirus at a Boston area Chipotle
• LMT: announces a voluntary layoff of its Aeronautics business

THE ECONOMIC CALENDAR:

• 7AM EST: MBA Mortgage Applications
• 10AM: Bank of Canada Rate Decision
• 10AM: Wholesale Trade
• 10:30AM: EIA Petroleum Inventories
• 1PM: $20B, 10 Year Note Auction

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• WTI: Q4 EPS of -$0.44 beats by $0.39: revenue of $1.04.1M misses by $18.43M; revenue -47.1% y/y: cuts FY16 CapEx budget to $15M
• AMED: Q4 EPS of $0.40 beats by $0.18: revenue of $337.3M beats by $15.29M: revenue +12.2% y/y
• BUFF:Q4 EPS of $0.16 beats by $0.02: revenue of $265.0M beats by $5.8M; revenue +11.3% y/y: guides EPS above consensus
• ZAGG: Q4 EPS of $0.18 misses by $0.06: revenue of $78.6M misses by $4,34M: revenue -23.3% y/y: guides Fy16 revenue $460M-$500M may not be comparable to consensus of $287.37M
• BETR: Q4 EPS of $0.13 beats by $0.04: revenue of $46.4M beats by $2.64M; revenue +40.6% y/y: guides above consensus
• BPI: Q4 EPS of $0.04 beats by $0.07: revenue of $131.4M beats by $.24M; revenue -10.8% y/y
• ATTO: Q4 EPS of $0.31 misses by $0.01: revenue of $457.8M beats by $6.14M: revenue -17.5% y/y: guides FY16 revenue growth of 1%-5%
• NCS: FQ1 EPS of $0.07 beats by $0.05: revenue of $370.0M beats by $6.48M; revenue +14.6% y/y: guides FY16 EBITDA above FY15
• SEMI: Q4 EPS of -$0.74 misses by $0.36: revenue of $181.7M misses by $5.8M; revenue -11.3% y/y
• SYX: Q4 EPS of $0.01 beats by $0.05: revenue of $931.6M : revenue +2.5% y/y
• ABM: FQ1 EPS of $0.38 beats by $0.12: revenue of $1.27B beats by $10M: revenue +6.7% y/y: raises guidance above consensus

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• LGIH: Q4 EPS of $0.75 beats by $0.04: revenue of $176.76 misses by $1.27M: revenue +63.0% y/y
• VRA: Q4 EPS of $0.41 in-line: revenue $154.1M beats by $1.46M: revenue +1.0% y/y: launches new flagship store in SoHo: guides Q1 EPS $0.04-$0.06 vs consensus $0.03
• KFY: FQ3 EPS of $0.52 in-line: revenue of $358.88M beats by $4.39M; revenue +38.6% y/y
• EXPR: Q4 EPS of $0.67 beats by $0.02: revenue of $765.55M misses by $3.79M: revenue +5.5% y/y: guides FY16 EPS  $1.56-$1.71 vs consensus $1.58

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• BOX, CNAT, FCEL, FRPT, FRSH, GTY, HNSN, OME, SFS, SPPI, SQ, TAHO, TLGT, VVUS, WG, XOMA

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• FEYE: upgrade: neutral to overweight: Piper Jaffray: pt raised from $15 to $24
• CASY: upgrade: sector perform to outperform: RBC Capital: pt raised from $128 to $129
• CRH: upgrade: hold to buy: Jefferies

DOWNGRADES:

• NLSN: downgrade: overweight to equal weight: Morgan Stanley: $52
• ROST: downgrade: conviction buy to neutral: Goldman: $61
• PSG: downgrade: outperform to sector perform: RBC Capital: tp cut from $12.50 to $3.50
• CKEC: downgrade: outperform to sector perform: RBC Capital: pt raised from $29 to $30
• BHP: downgrade: buy to hold: Jefferies:
• AMH: downgrade: outperform to market perform: Keefe Bruyette
• KEYS: downgrade: neutral to sell: Goldman Sachs: $24
• RSO: downgrade: outperform to market perform: JMP Securities
• VNR: downgrade: neutral to sell: UBS
• YELP: downgrade: neutral to sell: UBS
• GRPN: downgrade: neutral to sell: UBS

INITIATIONS:

• DTRM: initiated: buy: Moxim Group: $4.50
• KORS: initiated: buy: Jyske Bank: $65

PRICE TARGET CHANGES:

• FEYE: pt raised from $14 to $16: Morgan Stanley
• FEYE: pt raised from $18 to $21: Barclays
• BUFF: pt raised from $22 to $25: Deutsche Bank
• HP: pt raised from $53 to $63: Susquehanna
• HAV: pt raised from $9 to $11; Susquehanna
• NBR: pt raised from $11 to $12: Susquehanna
• NOV: pt raised from $27 to $30: Susquehanna
• PTEN: pt raised from $17 to $20: Susquehanna
• STLD: pt raised from $21 to $24: Nomura
• X: pt raised from $8 to $11: Nomura
• X: pt raised from $8 to $11: Northland Securities
• CVX: pt raised from $84 to $96: Credit Suisse
• CVX: pt raised from $84 to $90: FBC Capital
• JONE: pt raised from $1.25 to $2.50: Imperial Capital
• APC: pt raised from $33 to $39: Barclays
• AKS: pt raised from $2.50 to $3.50: Normura
• APTS: pt raised from $12 to $13: Wunderlich
• AMH: pt raised from $17 to $18: FBR Capital
• SCMP: pt raised from $25 to $26: Maxim Group
• SHEN: pt raised from $20 to $30: FBR Capital
• DKS: pt raised from $39 to $42: RBC Capital
• DKS: pt raised from $45 to $50: Goldman Sachs
• DKS: pt raised from $42 to $51; UBS
• DKS: pt raised from $47 to $50: Brean Capital
• BNFT: pt cut from $36 to $34: RBC Capital
• QVCA: pt cut from $38 to $31: FBR Capital
• DKS: pt cut from $56 to $53: Susquehanna
• ADBE: pt cut from $101 to $92: Goldman Sachs
• ONCS: pt cut from $25 to $17: Wainwright

China exports struggle | Morning News

MARCH 08, 2016
US futures looking to give back some of its recent gains with global markets trading mostly in the red after China's February exports fell to the worst level since 2009. Overnight, crude pulled back only modestly despite negative comments out of Kuwait that they were not on board with the production freeze.

NEWS:

• PRGO: awards millions to execs for fighting hostile Mylan bid
• WTC: announces plans to expand in credit swaps, reports Bloomberg
• AMZN: announces plans to launch digital wallet
• JBLU: warns on Q1 Revenue per available seat mile
• LUV: reports Feb traffic up 13.5%
• WFM: launches coupons on its app
• BA: UAL: United Airlines announce fleet update with the addition of 25 new Boeing aircrafts, reports PRNewswire
• RTN: to face $1B suit claiming fraudulent overfilling, reports reuters
• VSLR: SUNE: Vivant Solar drops SunEdison merger deal
• TNGO: restates results for 2013 and 2014, and part of 2015, and withdraws guidance

THE ECONOMIC CALENDAR:

• 6AM: NFIB Small Business Optimism Index
• 8:55AM: Redbook Chain Store Sales
• 1PM: $24B, 3 Year Note Auction

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• PLOW: Q4  EPS of $0.66 beats by $0.10: revenue of $118.8M beats by $3.43M: revenue +18/7% y/y: guides in-line
• NX: FQ1 EPS of -$0.02 beats by $0.10: revenue of $201.47M beats by $1.85M; revenue +57.5% y/y
• THO: FQ2 EPS of $0.86 beats by $0.24: revenue of $975.1M beats by $65.15M: revenue +14.4% y/y
• UNFI: FQ2 EPS of $0.49 in-line: revenue of $2.05B in-line: revenue +1.5% y/y: reaffirms guidance
• CASY: Q4 EPS of $0.97 beats by $0.03: revenue of $1.57B misses by $20M: revenue -6.0% y/y
• URBN: Q4 EPS of $0.61 beats by $0.05: revenue of $1.01B misses by $10M: revenue flat y/y
• SHAK: Q4 EPS of $0.08 beats by $0.01: revenue of $51.1M beats by $0.66M: revenue +47.0% y/y: reaffirms guidance

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• BITA: Q4 EPS of RMB1.6B beats by RMB0.45: revenue of RMB1.24B beats by RMB20M: revenue +27.2% y/y: guides Q1 EPS above consensus
• DKS: Q4 EPS of $1.13 misses by $0.02: revenue of $2.24B misses by $40M: revenue +3.7% y/y: guides FY16 and Q1 below consensus
• SCMP:Q4 EPS of $0.43 beats by $0.24: revenue of $55.37M beats by $12.65M: revenue +46.6% y/y:  reaffirms FY15 EPS below consensus
• NAV: FQ1 EPS of -$0.40 beats by $0.29: revenue of $1.77B misses by $300M: revenue -26.9% y/y: guides FY16 revenue $9B-$9.25B vs consensus $9.44B

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• ABM, BPI, BUFF, CERS, FENG, HRZN, NCS, ORIG, PEN, REGI, SEMI, TEAR, WTI, ZAGG

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• BMRN: upgrade: neutral to outperform: Baird: $110
• SHOP: upgrade: sector weight to overweight: Pacific Crest
• STLD: upgrade: hold to buy: Berenberg: pt raised from $21 to $23.50
• SAN: upgrade: neutral to conviction buy: Goldman Sachs
• MMS: upgrade: buy to hold: Canaccord: pt raised from $59 to $60
• PNRA: upgrade: equal weight to overweight: Morgan Stanley: pt raised from $204 to $250
• TMHC: upgrade: neutral to outperform: Credit Suisse: $17
• PM: upgrade: neutral to outperform: BNP Paribas: pt raised from $85 to $115

DOWNGRADES:

• ALXN: downgrade: outperform to neutral: Baird: pt cut from $221 to $170
• AN: downgrade: neutral to sell: Goldman Sachs: $49
• EC: downgrade: buy to hold: Deutsche Bank: $10
• CLDX: downgrade: buy to hold: Jefferies: pt cut from $31 to $4
• SCOR: downgrade: outperform to neutral: Macquarie: pt cut from $48 to $29
• EPE: downgrade: outperform to neutral: Credit Suisse: $4
• VAL: downgrade: overweight to sector weight: KeyBanc
• AU: outperform to sector perform: RBC Capital
• BCEI; downgrade: outperform to neutral: Credit Suisse: pt cut from $4 to $2
• BMO: downgrade: outperform to neutral: Credit Suisse
• CKEC: downgrade: buy to neutral: B Riley: pt cut from $33 to $30
• SAM: downgrade: outperform to underperform: CLSA
• ATU: downgrade: buy to neutral: SunTrust: pt cut from $26 to $22

INITIATIONS:

• MFS: initiated: equal weight: Barclays: $12
• RARE: initiated: outperform: Baird: $85
• BSTC: initiated: buy: Rodman & Renshaw: $60
• FAST: initiated: buy: Argus: $57
• PCTY: initiated: buy: Craig-Hallum: $39
• REGN: assumes: buy: Brean Capital: $489
• JWN: initiated: sell: Miller Tabak: $42
• JCP: initiated: buy: Miller Tabak: $17
• M: initiated: hold: Miller Tabak: $45
• EXPE: initiated: buy: Moffet/Nathanson: $135

PRICE TARGET CHANGES:

• UNP: pt raised from $82 to $91: UBS
• CASY: pt raised from $124 to $128: RBC Capital
• NCR: pt raised from $25 to $30: RBC Capital
• RRMS: pt raised from $13 to $15: RBC Capital
• SEMG: pt raised from $26 to $30: RBC Capital
• MYRG: pt raised from $25 to $27 FBR Capital
• MTN: pt raised from $140 to $145: Credit Suisse
• ADC: pt raised from $38 to $40.50: Wunderlich
• TPC: pt raised from $17 to $18: FBR Capital
• PIR: pt raised from $4 to $6: Wedbush
• UNFI: pt raised from $36 to $40: Canaccord
• URBN:pt raised from $26 to $29: FBR Capital
• URBN: pt raised from $20 to $30: Mizuho
• URBN: pt raised from $25 to $30: RBC Capital
• URBN: pt raised from $23 to $35: Telsey Advisory
• URBN: pt raised from $22 to $26: Wunderlich
• URBN: pt raised from $32 to $35: Brean Capital
• URBN: pt raised from $23 to $33: UBS
• VRX: pt cut from $112 to $70: Mizuho
• SHAK: pt cut from $48 to $40: Barclays
• MTW: pt cut from $14 to $4: Barclays
• PDCE: pt cut from $60 to $59: RBC Capital
• PDCE: pt cut from $72 to $68: Topeka Capital
• CLDX: pt cut from $28 to $12: Cowen

Oil | Morning News

MARCH 07. 2016
US futures pointing to a modestly lower opening at this 7AM hour as equities struggle after a three week upswing mostly due to the strength in the oil market. With earnings' reports winding down and a light economic calendar, investors remain cautiously optimistic as oil continues its move up on speculation that the key producers will reduce their supply after the UAE energy minister commented that "current prices are forcing all suppliers to freeze their production:.

NEWS:
AAPL: Apple users targeted in first known Mac ransom ware campaign, reports reuters

• NVS: JNJ: Novartis's Cosentyx shows longer benefit than Stelara in study, reports Bloomberg
• DIS: Zootopia blows by projected earnings with $73.7M weekend
• BIIB: NVO: DMTX: QURE: FDA approves CSL Behring's IDELVION , their long acting hemophilia B drug. CSL Behring is a private company but the ruling could impact other hep B drug companies
• SPY: Bank for International Settlements says negative rates could have consequences, reports the WSJ
• BMRN: added to Conviction Buy list at Goldman
• CLDX: Board recommends phase 3 stud of RINTEGA be discontinued, reports their newswire
• SDRL: continues strong as shorts cover on takeover speculation 

IN BARRONS OVER THE WEEKEND: 

• DNKN: Dunkin Donuts' same store sales has weakened, writes Vito Racanelli
• MYL: Hurt by Valeant, Mylan stock could rise 30%, writes Jack Hough
• MLM: Martin Marietta Materials shares have 35% upside, writes Avi Salzman
• SBUX: DNKN: Coffee prices head for a bounce as production falls, writes Alexandra Wexler
• GOOG: GOOGL: Google's self driving cars face regulatory barrier, writes Alexander Eule

THE ECONOMIC CALENDAR:

• 8:30AM: Gallup US Consumer Spending Measure
• 10AM: Labor Market Condition Index
• 12:30PM: TD Ameritrade IMX
• 3PM: Consumer Credit

A COUPLE OF NOTABLE EARNING REPORTED TODAY BEFORE THE OPENING: 

• GEF: FQ1 EPS of $0.40 beats by $0.08: revenue of $771.4M misses by $72.91M; revenue -14.5% y/y
• SUP: Q4 EPS of $0.38 beats by $0.04: revenue of $194.62M beats by $3.91M: revenue +4.3% y/y
• SCS: raises guidance

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• URBN, HIL, PLOW, SSW, SHAK, TEDU, THO, UNFI, CASY, JONE

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• WYNN: upgrade: neutral to buy: UBS: $95
• CAH: upgrade: buy to Conviction buy: Goldman Sachs
• CIB: upgrade: neutral to outperform: Credit Suisse: pt cut from $50 to $38
• SPG: upgrade: hold to buy: Evercore
• UDR: upgrade: market perform to outperform: BMO Capital: $40
• MT: upgrade: underperform to hold: Jefferies: pt raised from $3 to $4.50
• LOPE: upgrade: neutral to outperform: Credit Suisse: pt raised from $39 to $62
• MDCA: upgrade: hold to buy: Evercore: 
• IR: upgrade: neutral to buy: Nomura: pt raised from $56 to $68
• GGP: upgrade: hold to buy: Evercore: 
• EXC: upgrade: hold to buy: Argus: $39

DOWNGRADES:

• ABBV: downgrade: conviction buy to buy: Goldman Sachs
• MU: downgrade: neutral to reduce: Nomura: $8
• QLYS: downgrade: buy to hold: Wunderlich: $26
• MIK: downgrade: overweight to equal weight: Morgan Stanley: $25
• VNR: downgrade: outperform to market perform: FBR Capital
• CKEC: downgrade: buy to hold: Topeka Capital: pt cut from $36 to 432
• CKEC: downgrade: outperform to market perform: Barrington Reesarch
• CKEC: downgrade: outperform to neutral: Wedbush: pt cut from $34 to $30
• AVB: downgrade: outperform to market perform: BMO Capital
• DNKN: downgrade: buy to hold: Guggenheim
• KIM: downgrade; buy to hold: Argus: 
• MD: downgrade: buy to neutral: Susquehanna: $70
• SSYS: downgrade: neutral to underweight; JP Morgan
• MESO: downgrade: overweight to neutral: JP Morgan: $10
• BSAC: downgrade: outperform to neutral: Credit Suisse: pt cut from $23 to $20

INITIATIONS: 

• AVXS: initiated: outperform: BMO Capital: $31
• HELE: initiated: buy: Jefferies: $114
• PTI: initiated: outperform: Baird: $13
• PTI: initiated: outperform: Leerink: $13
• PTI: initiated: outperform: RBC Capital: $20
• BDBD: initiated: buy: Craig Hallum: $14
• SLF: reinstates: overweight: Barclays: $44

PRICE TARGET CHANGE:

• CMG: pt raised from $475 to $550: Credit Suisse
• JOY: pt raised from $10 to $14: FBR Capital
• MCD: pt raised from $125 to $131: UBS
• DOV: pt raised from $68 to $77: Nomura
• NEM: pt raised from $20 to $25: RBC Capital
• LVS: pt raised from $45 to $52: UBS
• T: pt raised from $41 to $42: DA Davidson
• LAYN: pt raised from $4.50 to $8: DA Davidson
• SPLS: pt raised from $10 to $11: Goldman Sachs
• COHR: pt raised from $82 to $100: Stifel
• HPE: pt raised from $13.50 to $19: Maxim Group
• RICE: pt raised from $18 to $22: Iberia Capital
• NNI: pt raised from $48 to $52: Compass Point
• AMBA: pt cut from $90 to $50: Chardan Capital
• AAPL: pt cut from $132 to $127: Pacific Crest
• KR: pt cut from $47 to $42: Oppenheimer
• KND: pt cut from $19 to $16: RBC Capital
• NRF: pt cut from $28 to $18: FBR Capital
• RHT: pt cut from $97 to $90: BMO Capital
• THC: pt cut from $27 to $30: RBC Capital
• SPLS: pt cut from $11 to $10: Deutsche Bank
• SPLS: pt cut from $15 to $10: Credit Suisse
• SPLS: pt cut from $20 to $17: Jefferies
• VIAB: pt cut from $66 to $60: Telsey Advisory
• BLDR: pt cut from $19 to $13: Deutsche Bank
• LNKD; pt cut from $150 to $130: BMO Capital
• MINI: pt cut from $45 to $37: Needham
• PLNT: pt cut from $22 to $20: Wedbush
• WAC: pt cut from $22 to $9: Credit Suisse
• INTC: pt cut from $40 to $36: BofA/Merrill

Jobs Data in Focus | Morning News

MARCH 04. 3016
US futures up modestly at this hour as investors await crucial data on jobs with wage growth being a key reading in the report. Overnight, oil struggled to find directions with crude price up slightly at this hour as investors await the Baker-Hughes Rig Count this afternoon at 1PM EST

NEWS:

• PN: announces new $15M buyback program authorization
• CKEC: AMC: AMC Entertainment to acquire Carmike Cinemas in $1.1B deal
• GS: Goldman announces plans to cut 5% of fixed income workforce, reports Bloomberg
• BAC: Bank of America announces plants to cut 150 job in trading and investment banking, reports Bloomberg
• UA: affirms FY16 revenue guidance
• YHOO: exploring sale of $1B-$3B in "non-core assets" reports reuters

THE ECONOMIC CALENDAR:

• 8:30AM: Non-farm Payrolls
• 8:30AM: Unemployment Rate
• 8:30AM: International Trade
• 10:45AM: Fed's Kaplan to speak on "Monetary Policy"
• 1PM: Baker-Hughes Rig Count

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• AVGO: FQ1 EPS of $2.41 beats by $0.11: revenue of $1.77B beats by $20M: revenue +7.9% y/y: guides revenue in-line
• AMBA: FG4 EPS of $0.64 beats by $0.16: revenue of $67.96M beats by $2.13M: revenue +5.0% y/y: soft guidance
• SWHC: FQ3 EPS of $0.59 beats by $0.20: revenue of $210.8M beats by $35.87M: revenue +61.5% y/y: raises guidance above consensus
• CLNE: Q4 EPS of $0.08 beats by $0.18: revenue of $119.3M beats by $16.53M: revenue -9.7% y/y
• HRB: FQ3 EPS of -$0.34 misses by $0.10: revenue of $475M misses by $26.78M: revenue -6.7% y/y
• HPE: FQ1 EPS of $0.41 beats by $0.01: revenue of $12.72B bats by $40M: revenue -3.0% y/y: solid FY16 guidance
• COO: FQ1 EPS of $1.83 beats by $0.25: revenue of $449.64M beats by $7.74M: revenue +1.0% y/y: raises guidance
• NMBL: Q4 EPS of -0.12 in-line: revenue of $90.09M beats by $1.88M: revenue +32.0% y/y: soft guidance
• BLDR: Q4 EPS of $0.00 beats by $0.04: revenue of $1.46B misses by $10M: revenue -1.4% y/y

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• BIG: Q4 EPS of $2.00 beats by $0.02: revenue of $1.55B misses by $20M: revenue -0.6% y/y:increases quarterly dividend 10.5% to $0.21/share
• SPLS: Q4 EPS of $0.26 misses by $0.02: revenue of $5.27B misses by $140M: revenue -6.9% y/y

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• JCP: upgrade: hold to buy: Evercore: pt raised from $8 to $15
• MMC: upgrade: neutral to conviction buy: Goldman Sachs: pt raised from $59 to $66
• CNQ: upgrade: neutral to overweight: JP Morgan
• TITN: upgrade: neutral to outperform: Baird
• TPUB: upgrade: underperform to neutral: Macquarie

DOWNGRADES:

• XL: downgrade: conviction buy to neutral: Goldman Sachs; pt cut from $43 to $39
• MON: downgrade: neutral to sell: Goldman Sachs: pt cut from $86 to $84
• HRB: downgrade: outperform to neutral: Wedbush: pt cut from $46 to $32
• DEA: downgrade:outperform to sector perform: RBC Capital: $18
• DSW: downgrade: outperform to neutral: Credit Suisse: $26
• BURL: downgrade: buy to neutral: Citi: $58
• TUMI: downgrade; buy to hold: Jefferies: pt raised from $22 to $26
• NMBL: downgrade: overweight to neutral: Piper Jaffray: pt cut from $20 to $9
• NMBL: downgrade: overweight to neutral: JP Morgan: pt cut from $15 to $8
• PZZA: downgrade: overweight to sector weight: KeyBanc

INITIATIONS:

• SPLK: initiated: outperform: BMO Capital $55
• QLIK: initiated: market perform: BMO Capital: $26
• DATA: initiated: market perform: BMO Capital: $50
• CG: initiated: equal weight; Barclays: $17
• CRM: initiated: outperform: Macquarie: $92
• MSFT: initiated: neutral: Macquarie: $53
• WDAY: initiated: underperform: Macquarie: $49
• ORCL: initiated: outperform: Macquarie: $45
• NOW: initiated: outperform: Macquarie: $72

PRICE TARGET CHANGES:

• MAT: pt raised from $25 to $36: Barclays
• AVGO: pt raised from $170 to $180: RBC Capital
• AVGO: pt raised from $180 to $185: FBR Capital
• AVGO: pt raised from $155 to $175: Goldman
• BURL: pt raised from $62 to $65: Telsey Advisory
• JOY: pt raised from $15 to $16: RBC Capital
• LNKD: pt raised from $127 to $150: Mizuho
• QLIK: pt raised from $23 to $31: Mizuho
• SWHC: pt raised from $29 to $32: Wunderlich
• SWHC: pt raised from $23 to $26: Societe Generale
• WING: pt raised from $25 to $27: Goldman Sachs
• WING: pt raised from $25 to $27: Barclays
• CIO: pt cut from $15.50 to $13.50: Compass Point
• ERJ: pt cut from $33 to $30: RBC Capital
• COST: pt cut from $175 to $170: Telsey Advisory
• PPHM: pt cut from $3.50 to $1: FBR Capital
• AMBA: pt cut from $56 to $55: Morgan Stanley
• NMBL: pt cut from $15 to $12: Susquehanna
• NMBL: pt cut from $16 to $11: Goldman Sachs 

Economic Data On Tap |Morning News

MARCH 03, 2016
US futures dance along the flat line at this hour as market trade mixed around the world and investors await a plethora of economic data today, including PMI services index and ISM non-manufacturing index. Tomorrow before the opening, crucial jobs data is set to be released. Overnight, oil struggled to find direction as crude trades below $35.

NEWS:

• AZN: FDA approves new indication for Faslodex, reports nasdaq
• TUMI: Samonite nears deal to buy luxury luggage maker Tumi, reports the WSJ
• TGT: Target culling products in its store to help resolve out-of-stock issues, reports WSJ
• CBI: named Top Pick in JP Morgan's engineering and construction sector, rated overweight with a $52 pt
• QLIK: Elliott Associates discloses 8.88% stake in the company
• HLF: Herballife identifies errant "active new member" metric and corrective action taken, reports street insider
• INTC: Intel working on an augmented reality headset, reports WSJ
• DD: Dupont sees ag sector to remain challenged in FY16
• M: President Jeffrey Gennette files purchase of 25K shares of stock
• LB: sss up 5% in Feb
• BKE: sss down 8.9% in Feb

THE ECONOMIC CALENDAR:

• VARIOUS TIMES: Chain Store Sales
• 7:30AM: Challenger Job Cut Report
• 8:30AM: Weekly Jobless Claims
• 8:30AM: Productivity and Costs
• 8:30AM: Gallup Good Jobs Rate
• 9:45AM: PMI Services Index
• 9:45AM: Bloomberg Consumer Comfort Index
• 10AM: ISM Non-Manufacturing Index
• 10AM: Factory Orders
• 10:30AM: EIA Natural Gas Inventory
• 10:45AM: Fed's Kaplan speaks on "Monetary Policy"
• 4:30PM: Money Supply and Fed Balance Sheet

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• JOBS: Q4 EPS of $0.52 beats by $0.17: revenue of $94.29M beats by $4.39M: revenue +10.7% y/y: guides Q1 above consensus
• LHCG: Q4 EPS of $0.53 beats by $0.08: revenue of $218.99M beats by $5.6M: revenue +13.2% y/y: guides EPS below consensus
• SKUL: Q4 EPS of $0.26 beats by $0.03: revenue of $96.05M misses by $0.86M: revenue -0.8% y/y: soft guidance
• AEO:Q4 EPS of $0.42 in-line: revenue of $1.11B misses by $10M: revenue +3.7% y/y: guides EPS above consensus
• BIOS: Q4 EPS of -$0.13 misses by $0.05: revenue of $243.75M beats by $5.45M: revenue +1.7% y/y: provides mixed guidance
• HABT: Q4 EPS of $0.05 beats by $0.01: revenue of $60.64M misses by $0.11M: revenue +25.4% y/y: guides FY16 below consensus
• PSTG: Q4 EPS of -$0.12 beats by $0.04: revenue of $150.23M beats by $11.66M: revenue +128.1% y/y: strong Q1 and FY guidance
• WB: Q4 EPS of $0.15 beats by $0.02: revenue of $149M beats by $0.41M: revenue +41.6% y/y: guides revenue below consensus

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• BURL: Q4 EPS of $1.49 beats by $0.03: revenue of $1.55B beats by $10M: revenue +4.0% y/y: guides Q1 EPS $0.44-$0.48 vs consensus $0.49
• CIEN: FQ1 EPS of $0.18 beats by $0.04: revenue of $573.12M misses by $3.18M: revenue +8.3% y/y: guides Q2 revenue $615M-$645M vs consensus $644.63M
• BLD: Q4 EPS of $0.52 misses by $0.01: revenue of $426.5M misses by $1.66M: revenue +7.1% y/y
• KR: Q4 EPS of $0.57 beats by $0.03: revenue of $26.17B misses by $110M: revenue +3.8% y/y: guides FY16 EPS $2.19-$2.28 vs consensus $2.24
• JOY: FQ1 EPS of -$0.23 misses by $0.11: revenue of $526M misses by $5.91M: revenue -25.3% y/y: guides FY16 EPS $0.10-$0.50 vs consensus $0.25
• MEI:FQ3 EPS of $0.45 beats by $0.02: revenue of $184.6M misses by $5.71M;revenue -10.4% y/y: reaffirms FY16 EPS $2.06-$2.18 vs consensus $2.11
• SSI: Q4 EPS of $0.91 misses by $0.15: revenue of $502.63M beats by $1.14M: revenue -4.2% y/y: guides FY16 EPS below consensus
• SSYS: Q4 EPS Of -$0.01 beats by $0.11: revenue of $173.36M beats by $5.05M: revenue -20.2% y/y: guides FY16 EPS $0.17-$0.43 vs consensus $0.18: guides FY16 revenue $700M-$730M: vs consensus $700.6M
• TSL: Q4 EPS of $0.43 beats by $0.15: revenue of $961.9M beats by $137.66M: revenue +36.4% y/y
• BKS: FQ3 EPS of $1.04 misses by $0.02: revenue of $1.41B misses by $10M: revenue -2.1% y/y
• EGL: Q4 EPS of $0.66 beats by $0.08: revenue of $537M beats by $2.61M: revenue  +68.1% y/y: reaffirms FY16 EPS $1.01-$1.15 vs consensus $1.01
• TECD: Q4 EPS of $2.29 beats by $0.20: revenue of $7.49B beats by $380M: revenue +2.0% y/y: guides Q1 EPS below consensus

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• AMBA, AREX, AVGO, BLDR, CKP, CLNE, COO, CORT, CYTX, EYES, HCI, HRB, IRG, LADR, MENT, NMBL, PLNT, SNAK, SWHC, XOXO, UNXL

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• DIS: upgrade: equal weight to overweight: Piper Jaffray:pt raised from $105 to  $120
• INTC: upgrade: perform to outperform: Baird: pt raised from $33 to $38
• PBPB: upgrade: underweight to neutral: Piper Jaffray: pt raised from $12 to $13
• VTR: upgrade: hold to buy: Mizuho: $68
• BWLD: upgrade: neutral to outperform: Wedbush: pt raised from $160 to $200
• SPG: upgrade: buy to conviction buy: Goldman: pt raised from $222 to $237
• MPC: upgrade: neutral to buy: BofA/Merrill
• WU: upgrade: reduce to neutral: SunTrust: pt raised from $14 to $16
• VLO: upgrade: underperform to neutral: BofA/Merrill
• ITRI: upgrade: hold to buy: Argus: $48
• SHW: upgrade: neutral to buy: Citi: pt raised from $281 to $316
• INXN: upgrade: market perform to outperform: Raymond James: $35

DOWNGRADES:

• BA: downgrade: buy to hold: Canaccord: $135
• CKP: downgrade: outperform to in-line: Imperial Capital: $10.15
• BCEI: downgrade: buy to hold: Societe Generale: pt cut from $8 to $1.20
• NDLS: downgrade: neutral to underweight: Piper Jaffray: $8
• CRK: downgrade: outperform to in-line: Imperial Capital: pt cut from $1.50 to $0.75
• CHSP: downgrade: buy to in-line: RBC Capital: $29
• EPR: downgrade: buy to neutral: Ladenburg
• FCX: downgrade: buy to neutral: UBS: $9
• SUNE: downgrade: buy to hold: Macquarie: $2
• GARS: downgrade: buy to hold: Cantor Fitzgerald: pt cut from $16 to $12
• AA: downgrade: buy to neutral: BofA/Merrill: $10.50
• CXP: downgrade: overweight to equal weight: Morgan Stanley: $21

INITIATIONS:

• REGN: initiated: neutral: SunTrust: $450
• SGEN: initiated: neutral: SunTrust: $34
• CRMD: initiated: outperform: FBR Capital: $7
• LGND: initiated: buy: Wainwright: $146
• MCRB: initiated: buy: Guggenheim: $41
• RES: initiated: strong buy: Raymond James: $17
• AA: initiated: hold: Berenberg: $9
• ATI: initiated: hold: Berenberg: $13.90
• FCS: reinstated: neutral: JP Morgan: $20
• ON: reinstated: neutral: JP Morgan: $10
• GWPH: initiated: sell: Numis Securities: 
• IL: initiated: buy: B Riley: $14.30

PRICE TARGET CHANGES:

• VAC: pt raised from $64 to $68: Telsey Advisory
• TGT: pt raised from $86 to $88: Cowen
• UNH: pt raised from $133 to $138: Credit Suisse
• URBN: pt raised from $26 to $29: Baird
• ANF: pt raised from $26 to $31: Baird
• PSTG: pt raised from $22 to $27: Maxim Group
• INXN: pt raised from $35 to $36: Stifel
• BMRN: pt raised from $105 to $107: Stifel
• BMRN: pt raised from $110 to $114: Credit Suisse
• SMTC: pt raised from $19 to $22: RBC Capital
• ASCMA: pt cut from $30 to $20: Imperial Capital
• ECR: pt cut from $2 to $1.50: Topeka Capital
• DY: pt cut from $100 to $80: Stifel
• PCOM: pt cut from $18 to $17: RBC Capital
• ECYT: pt cut from $12 to $8: Wedbush
• OCN: pt cut from $8 to $4: Compass Point
• MON: pt cut from $110 to $105: Deutsche Bank
• NBL: pt cut from $20 to $11: Argus

ADP and Beige Book on Tap | Morning News

MARCH 02, 2016
US futures struggling in modestly negative territory at this hour as European markets fall from their highs after crude futures turned down with the API report late yesterday that US crude stockpiles expanded by 9.9M barrels last week vs the 2.6M consensus figure trumping the output freeze plan. EIA reports petroleum inventories this morning at 10:30AM EST. Meanwhile, traders will look to some key economic data today with ADP jobs report due out before the opening and the Beige Book data announced at 2PM EST.

NEWS:

• AVGR: FDA approves enhance version of Avinger's Pantheris system
• ZNGA: Mark Pincus leaving as CEO
• JNJ: launches a $7.5B aggregate pinciple amount debt offering
• WFT: announces 80M share public offering of common shares
• T: announces plans to offer DirecTV streaming services in Q4
• RH: Eminence Capital reports a 3.1% passive stake in the company
• FB: Facebook wants celebrities for its Live Streaming Service and its willing to pay cash, reports re/code
• CP: CSX: Canadian Pacific approaches CSX about a takeover
• FB: German anti-trust regulator investigates Facebook over user data
• COST: falling gas prices should benefit Costco, reports the WSJ
• APC: garnishes a "Top Pick" designation from Macquarie, reaffirms outperform and $60pt
• IBM: announces 10 year contract with Telefonica
• HON: reaffirms FY16 EPS of $6.45-$6.70 vs consensus $6.59
• CLNE: awarded $10M NJ Transit contract

THE ECONOMIC CALENDAR:

• 7AM: MBA Mortgage Applications
• 8:15AM: ADP Jobs Report
• 8:30AM: Gallup US Job Creation Index
• 10AM: Fed's Williams to speak on "Economic Outlook"
• 10:30AM: EIA Petroleum Inventories
• 2PM: Beige Book

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• ROST: Q4 EPS of $0.66 beats by $0.02: revenue of $3.25B beats by $40M: revenue +7.3% y/y: guides FY16 EPS $2.59-$2.71 vs consensus $2.75
• ASNA: Q2 EPS of $0.01 beats by $0.02: revenue of $1.84B misses by $40M: revenue +42.6% y/y: reaffirms guidance
• EPIQ: Q3 EPS of $0.29 beats by $0.04: revenue of $144.63 beats by $3.65M: revenue +25.6% y/y: guides below consensus
• TIVO: Q4 net income of $7.58M: revenue of $101.75M misses by $0.98M: revenue +11.0% y/y guides revenue below consensus
• BOBE: FQ3 EPS of $0.62 beats by $0.08: revenue of $346.5M misses by $1.02M; revenue -3.0% y/y: narrows guidance
• NPTN: Q4 EPS of $0.16 beats by $0.06: revenue of $89.12M beats by $4.67M: revenue +12.8% y/y: strong guidance: guides Q1 adjusted EPS $0.10-$0.18 vs consensus $0.08
• VEEV: FQ4 EPS of $0.15 beats by $0.04: revenue of $114.3M beats by $3.79M: revenue +31.4% y/y: mixed guidance
• GWRE: FQ2 EPS of $0.24 beats by $0.09: revenue of $102.13M beats by $5.35M; revenue +14.2% y/y: revenue +14.2% y/y: strong FY16 guidance
• CHUY:Q4 EPS of $0.18 beats by $0.05: revenue of $71.0M beats by $0.61M; revenue +15.0% y/y: guides in-line: guides FY16 CapEx $33M-$38M
• DAR: Q4 EPS of $0.54 beats by $0.29: revenue of $809.7M misses by $33.91M: revenue -19.0% y/y

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• ANF: Q4 adjusted EPS of $1.08 beats by $0.09: revenue of $1.11B beats by $10M: revenue -0.9% y/y
• FVE: Q4 EPS of -$0.13: revenue of $344.6M bets by $1.92M: revenue +3.6% y/y
• MCRN: Q4 EPS of $0.48 beats by $0.09: revenue of $306.3M beats by $4.96M: revenue -4.4% y/y
• FRP: Q4 EPS of $1.56 beats by $0.28: revenue of $209.82M misses by $3.03M: revenue -3.4% y/y: guides FY16 free cash flow $105M-$120M: guides FY16 CapEx $115M-$120M

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• AEO, BIOS, BREW, CABO, COST, HABT, NOG, PQ, PSTG, SINA, SKUL, SQNM, SUPN, TSE, WB

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• ROST: upgrade: neutral to buy: MKM Partners: pt raised from $52 to $65
• MEOH: upgrade: market perform to outperform: Raymond James: $40
• HABT: upgrade: market perform to outperform: Cowen: $30
• UHS: upgrade: underperform to neutral: Sterne Agee: $144
• STAG: upgrade: equal weight to overweight: Capital One: $20
• PGRE: upgrade: equal weight to overweight: Capital One: 
• MELI: upgrade: sell to hold: HSBC

DOWNGRADES:

• DLTR: downgrade: strong buy to market perform: Raymond James:
• VRX: downgrade: buy to hold: Canaccord: $75
• JOY: downgrade: hold to sell: Axiom: $10
• EQT: downgrade: overweight to equal weight: Morgan Stanley: $65
• CLNY: downgrade: outperform to market perform: FBR Capital: pt cut from $24 to $18
• BCEI: downgrade: outperform to n-line: Imperial Capital: pt cut from $8.50 to $1
• SNDK: downgrade: buy to neutral: Mizuho: $78.50
• CPK: downgrade: buy to neutral: Baird
• PSO: downgrade: hold to sell: Goldman Sachs:
• XEL: downgrade: outperform to neutral: Baird

INITIATIONS:

• INFI: initiated: outperform: FBR Capital: $15
• ADRO: initiated: outperform: FBR Capital: $30
• AMZN: initiated: outperform: BMO Capital: $700
• EBAY: initiated: market perform: BMO Capital: $26
• QTWO: initiated: overweight: First Analysis: $26
• RCKY: initiated: buy: B Riley: $15

PRICE TARGET CHANGES:

• ROST: pt raised from $55 to $60: Telsey Advisory
• ROST: pt raised from $55 to $60: Wedbush
• ROST: pt raised from $61 to $63: Needham
• AEGN: pt raised from $20 to $22: Needham
• AZO; pt raised from $800 to $870: Wedbush
• GWRE: pt raised from $55 to $65: Stephens
• TLP: pt raised from $33 to $38: Stifel
• FDC: pt raised from $12 to $16: Stifel
• BPL: pt raised from $60 to $68: Stifel
• CHUY: pt raised from $36 to $38: Telsey Advisory
• NPTN: pt raised from $12 to $16: Needham
• AYR: pt raised from $20 to $22: FBR Capital
• HL: pt raised from $1.50 to $2: FBR Capital
• RSO: pt cut from $14 to $13: FBR Capital
• ACRE: pt cut from $13.50 to $13: FBR Capital
• TIVO: pt cut from $10 to $9.50: FBR Capital
• TIVO: pt cut from $16 to $13: Piper Jaffray
• OA: pt cut from $100 to $95: Stifel
• JASN: pt cut from $9 to $8: Stifel
• ENDP: pt cut from $55 to $42: Mizuho
• CMA: pt cut from $43 to $40: Compass Point
• LMCA: pt cut from $52 to $40: Pivotal Research
• LBRDA: pt cut from $80 to $74: Pivotal Research
• MDT: pt cut from $91 to $88: Needham
• GBT: pt cut from $94 to $66: Needham
• KATE: pt cut from $32 to $30: Wedbush
• KONA: pt cut from $25 to $21: Wedbush