Oil is still the story | Morning News

DECEMBER 31, 2015

US futures hugging the flat line at this 7AM hour as global markets begin to  shutter for the year in mixed trading and light volume. Overnight, oil prices were down modestly with the commodity set for its first back-to-back annual loss since 1998 after record US petroleum inventories data yesterday reinforced concerns about a global supply glut.

NEWS:

• BP:BP orders complete evacuation of Valhall field in North Sea, reports reuters
• MSFT:Microsoft failed to warn victims of Chinese email hack, reports reuters
• LMT:Lockheed wins billion dollar C-130J contract
• CARA: Piper names the company as one of its Top Picks of 2016
• SHLD:Berkowitz's Fairholme Increases Sears Stake, Signals Active Role, reports bloomberg
• PERI: guides FY15 revenue $217M-219M vs. consensus $207.07M:raises Q4 revenue guidance from $52M-54M to $64M-66M

THE ECONOMIC CALENDAR:

• 8:30AM: Weekly Jobless Claims
• 9:45AM: Chicago PMI
• 9:45AM: Bloomberg Consumer Comfort Index
• 10:30AM: EIA Natural Gas Inventory
• 1PM: Baker-Hughes Rig Count
• 4:30PM: Money Supply and Fed Balance Sheet

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• OKE: upgrade: neutral to outperform: Credit Suisse: pt raised from $36 to $40

DOWNGRADES:

• HPY: downgrade: overweight to neutral: Piper Jaffray: pt cut from $100 to $90

INITIATIONS:

• TLOG: initiated: buy: Roth Capital: $5
• PBMD: initiated: buy: Roth Capital: $6

PRICE TARGET CHANGES:

• DOC: pt raised from $18 to $19: Stifel
• HTA: pt raised from $28 to $29: Stifel
• HR: pt raised from $29 to $31: Stifel
• CFRX: pt cut from $16 to $9: Maxim Group
• MESO: pt cut from $70 to $18: Maxim Group

As we say goodbye to 2015

According to data from Societe Generale, the best-performing asset class of 2015 has been stocks, whose meager 2 percent total return (that is, including dividends) still surpasses those of long-term bonds, short-term Treasury bills and commodities. These minimal gains make 2015 the worst year for finding returns since 1937 (CNBC)

Oil, Oil, Oil | Morning News

DECEMBER 30, 2015

US futures falter indicating a lower opening as global markets trade mixed on light volume. Overnight, oil took another leg down as sustained pressure on crude prices have traders turning cautious, with renewed selling being felt in the equities markets. All eyes will be on EIA petroleum inventories to be reported today at 10:30AM EST.

NEWS:

• LPL: SSNLF: LG Display, Samsung Display to supply OLED screens for iPhones. reports reuters
• AAPL:Apple more than doubles smartphone shipments in MEA region in 3Q15, reports digitimes
• REGN: Sanofi reports 22.6% stake in Regeneron
• GSM: Point72 liquidates stake in Globe Specialty Metals
• KBIO: files for bankruptcy
• RTN:Raytheon awarded $102.9M government contract

THE ECONOMIC CALENDAR:

• 7AM: MBA Mortgage Applications
• 10AM: Pending Home Sales
• 10:30AM: EIA Petroleum Inventories
• 1PM: $29B, 7 Year Note Auction
• 3PM: Farm Prices

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• WASH: upgrade: market perform to outperform: Keefe Bruyette: $44

DOWNGRADES:

• VNR: downgrade: overweight to equal weight: Morgan Stanley: $7
• MEMP: downgrade: overweight to equal weight: Morgan Stanley: $5
• DDR: downgrade: buy to hold: Deutsche Bank: $17

INITIATIONS:

• KURO: initiated: outperform: Oppenheimer
• PSG: initiated: outperform: Oppenheimer: $15
• AGR: initiated: outperform: Wells Fargo:
• SKUL: initiated: outperform: Oppenheimer:
• AGRX: initiated: buy: Noble Financial: $16

PRICE TARGET CHANGES:

• CKEC: pt cut from $39 to $37: Topeka Capital

Will the Santa Rally Go "Splat" on the Oil Slick? | Morning News

DECEMBER 29, 2015

US futures pointing to a low volume but higher opening at this hour as global markets trade mostly in the green heading into the last two days of 2015 with traders wondering if we will get our Santa rally or will oil pull the rug out from under it. Meanwhile, crude traded modestly higher even as the oil glut continues to put pressure on the commodity.

NEWS:

• AAPL: iPhone shipments from production lines in 4Q15 to be 5-10% short of original expectation, reports digitimes
• DNKN: Dunkin' Brands announces a new partnership with Madison Square Garden
• QCOM:Qualcomm, Tianyu sign 3G/4G Chinese patent license agreement
• PBY: the company out positive on Icahn $18.50 offer

THE ECONOMIC CALENDAR:

• 8:30AM: International Trade in Goods
• 8:55AM: Redbook Chain Store Sales
• 9AM: S&P Case-Shiller Home Price Index
• 10AM: Consumer Confidence
• 10AM: State Street Investor Confidence Index
• 1PM: $35B, 5 Year Note Auction

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• PRMW: upgrade: market perform to outperform: Barrington Research: $9.50

DOWNGRADES:

• CMRX: downgrade: overweight to neutral: JP Morgan: pt cut from $65 to $15
• CMRX: downgrade: outperform to market perform: FBR Capital: $14
• CMRX; downgrade: outperform to market perform: pt cut from $62 to $12
• TAT: downgrade: buy to hold: TD Securities: $3.25

INITIATIONS:

• PSTG: initiated: hold: Summit Research: $15

PRICE TARGET CHANGES:

• CMRX: pt cut from $65 to $12: Barclays
• CVA: pt cut from $23 to $21: Wedbush
• NTAP: pt cut from $27 to $23: Monness Crespi & Hardt

Oil Pressures Stocks | Morning News

DECEMBER 28, 2016

US futures under pressure from oil at this hour as the end of 2015 draws near and traders remain cautious in light trading. The Shanghai slid 2.6%, its biggest loss in a month, as industrial profits declined and a looming revamp of the nation’s IPO system gave investors little reason for optimism. Overnight, crude dropped  2.5% as the oil glut puts pressure on the commodity and investors look to the increase in crude output as more oil looks to flood global markets from Iran with the end of Western sanctions.

NEWS:

• DIS:Star Wars: The Force Awakens passes $1B in worldwide ticket sales this weekend and becomes the first picture to reach that mark so quickly
• CMRX: Chimerix announces top-line results failed in Phase 3 SUPPRESS trial of brincidofovir
• ICON: Iconix Brand Group announces SEC has issued a Formal Order of Investigation 
• AMZN: Amazon Celebrates a Record-Setting Holiday for Prime, Amazon Original Series and Amazon Devices, reports business wire
• SLB: HAL: BHI: WFT: Large oil services companies estimates cut at Sterne Agee
• FIT: Fitbit was top free app on App Store this Christmas
• NOC: Northrop to build drone for smaller warships after winning $93M Navy contract
• LULU: Holiday sales robust at Lululemon reports both Wedbush and FBR Capital
• FDX: Delays in holiday package causes “FedExFail” to trend on Twitter
• GM:GM recalling almost 9M Chevrolet Colorado trucks and GMC Canyon trucks
• F: Ford recalling more than 9M Escape vehicles and 2013-2014 Focus ST vehicles
• VRX: announces CEO on medical leave due to pneumonia
• GOOG: GOOGL:Why YouTube Is Twice as Valuable as Netflix. argues Jack Hogue in Barrons
• QCOM:Qualcomm, QiKu sign 3G/4G Chinese patent license agreement
• AAPL:Stifel Sees CQ415 Apple iPhone Exports up 9.5% Y/Y, reaffirmed $140 pt,  reports streetinsider
• SIG:Signet Jewelers’ Stock Is a Diamond in the Rough, posts Reshma Kapadia in Barrons

THE ECONOMIC CALENDAR:

• 10:30AM: Dallas Fed Manufacturing Index
• 1PM: $25B, 2 Year Note Auction

ANALYSTS’ RATINGS CHANGES:

INITIATIONS:

• HCI: initiated: overweight: Piper Jaffray: $43

PRICE TARGET CHANGES:

• GOOGL: pt raised from $900 to $1000: Axiom Capital
• AMZN: pt raised from $727 to $797: Axiom Capital
• NKE: pt raised from $75 to $77: Argus
• INTC: pt raised from $27 to $28: Deutsche Bank
• DISCA: pt cut from $39 to $38: Topeka Capital
• GLUU: pt cut from $7 to $4: Craig Hallum

Merry Christmas | Morning News

DECEMBER 24, 2015

US futures hovering around the flat line at this hour as markets trade mixed around the world on light trading. NOTE: NYSE closes at 1PM EST today: SIFMA closes at 2PM EST today

NEWS:

• STO:Statoil wins legal fight against Diamond Offshore in Norway court
• SCTY: Draper Associates cuts stake in SolarCity to 5.67%
• CLDN:Boxer Capital reports 5.9% passive stake in Celladon
• BA: LMT: United Launch Alliance to order 20 more Russian rocket engines
• FDX:Some retailers warn of delivery delays, blame FedEx, reports the WSJ
• EGRX:Eagle Pharmaceuticals announces FDA approval of Docetaxel injection
• FXI: China ups disclosure requirements; extends yuan trading hours
• FCX:Freeport McMoRan soon may auction off oil and gas assets, reports reuters

THE ECONOMIC CALENDAR:

• 8:30AM: Weekly Jobless Claims
• 9:45AM: Bloomberg Consumer Comfort Index
• 10:30AM: EIA Natural Gas Inventory
• 4:30PM: Money Supply and Fed Balance Sheet

ONE EARNING POSTED YESTERDAY AFTER THE CLOSE:

• CALM: FQ2 EPS of $2.26 misses by $0.14: revenue of $546M misses by $6.31M: revenue +44.2% y/y

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• TLP: upgrade: hold to buy: Stifel: $27

DOWNGRADES:

• SPKE: downgrade: buy to hold: Wunderlich:$20
• ONCE: downgrade: buy to hold: Wunderlich
• BBBY: downgrade: buy to neutral: SunTrust: $55

PRICE TARGET CHANGES:

• GPN: pt raised from $58 to $66: Topeka Capital
• CMG: pt cut from $575 to $555: Telsey Advisory

Santa Rally pressured by Oil | Morning News

DECEMBER 23, 2015

US futures add to yesterday’s rally as world market traded mostly in the green heading into the final countdown before the holiday break. On tap for today, traders will get a look at durable goods data as well as home sales and consumer sentiment. Overnight, oil traded higher into EIA Petroleum Inventories due to be reported at 10:30AM EST.

NEWS:

• CVX:Chevron slashes 1200 jobs from Gorgon LNG project in Western Australia, reports the Guardian
• AZN: FDA clears AstraZeneca’s gout drug Zurampic
• UPS: FDX: US Postal Service Is on Track to Gain Larger Share of Holiday Deliveries, reports the WSJ
• UPS: Amazon Seeks to Ease Ties With UPS, reports the WSJ
• GOOG: GOOGL:Google developing intelligent messaging app, reports the WSJ
• PM: RAI: MO: The European Court of Justice has issued a preliminary ruling against Philip Morris and British American Tobacco , stating that the EU Tobacco Products Directive of 2014 is valid
• ACRX: AcelRx receives EMA notice of eligibility for centralized review of ARX-0

THE ECONOMIC CALENDAR:

• 7AM: MBA Mortgage Applications
• 8:30AM: Durable Goods
• 10AM: New Home Sales
• 10AM: Reuters/UofM Consumer Sentiment
• 10:30AM: EIA Petroleum Inventories
• 11:30AM: $13B, 2 Year FRN Auction

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• NKE:FQ2 EPS of $0.90 beats by $0.04: revenue of $7.69B misses by $120M: revenue +4.2% y/y: solid guidance
• MU:FQ1 EPS of $0.24 beats by $0.01.Revenue of $3.35B (-26.7% Y/Y) misses by $110M: revenue -26.7 y/y: light guidance
• CAMP:FQ3 EPS of $0.31 beats by $0.02: revenue of $74.7M beats by $0.9M: revenue +18.2% y/y

ONE NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• CALM

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

• FINL: upgraded: hold to buy: Brean Capital: $23
• PII: upgrade: underperform to neutral: Longbow
• DLPH: upgrade: neutral to buy: Sterne Agee: $120
• EEFT: upgrade: neutral to buy: Monness Crespi & Hardt: $86
• SLF: upgrade: hold to buy: Argus: $37

DOWNGRADES:

• MU: downgrade: strong buy to outperform: Raymond James: pt cut from $26 to $17
• SCS: downgrade: outperform to market perform: Raymond James

INITIATIONS:

• ONCE: initiated: neutral: Chardan Capital: $45
• EYEG: initiated: buy: Chardan Capital: $6
• NXRT: initiated: buy: DA Davidson: $16
• NRX: initiated: outperform: JMP Securities: $!5
• CUI: initiated: buy: Rodman & Renshaw: $12
• AMBA: initiated: buy: Craig-Hellum: $80

PRICE TARGET CHANGES:

• NKE: pt raised from $142 to $144: Telsey Advisory Group
• GE: pt raised from $34 to $36: Argus
• AAPL: pt cut from $175 to $150: FBR Capital
• BBBY: pt cut from $65 to $52: Telsey Advisory Group
• MACK: pt cut from $16 to $13: Mizuho
• ACAT: pt cut from $27 to $22: KeyBanc
• VIAB: pt cut from $49 to $45: Topeka Capital
• MU: pt cut from $19 to $16: Topeka Capital
• MU: pt cut from $24 to $44: Cowen