GDP in focus | Morning News

JANUARY 29, 2016
US futures surging, following green arrows around the world as global markets get a lift from the Bank of Japan's surprise move when they announced that they would adopt a negative interest rate policy for the first time ever. Overnight, crude made a modest move higher after possibility of coordinated output cuts looks more likely. Traders await Baker-Hughes rig count today at 1PM EST.

NEWS:

• BA: wins P-8A aircraft Navy contract in a $2.5B deal
• MRK: FDA approves Merck's chronic hep Cinfection single table combination therapy
• FB: A patent application published reveals that Facebook is looking to get into ridesharing, reports CNN Money
• RDY: FDA approves Dr Reddy's ZEMBRACESynTough injection for migraines
• AAPL: in works with partners to develop new wireless charing technology, reports Bloomberg

THE ECONOMIC CALENDAR:

• 8:30AM: GDP Q4
• 8:30AM: International Trade in Goods
• 8:30AM: Employment Cost Index
• 9:45AM: Chicago PMI
• 10AM: Reuters/UofM Consumer Sentiment
• 1PM: Baker-Hughes Rig Count
• 3PM: Farm Prices

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• AMGN: Q4 EPS of $2.61 beats by $0.32: revenue of $5.54B in-line: revenue +3.9% y/y: guidance raised
• EA: FQ3 EPS of $1.83 beats by $0.02: revenue of $1.8B misses by $10M: revenue +25.9% y/y: soft Q4 guidance
• AMZN: Q4 EPS Of $1.00 misses by $0.56: revenue of $35.75B misses by $180M: revenue +21.9% y/y: guides Q1 revenue of $26.5B-$29B vs consensus of $27.65B
• MSFT: FQ2 EPS of $0.78 beats by $0.07: revenue of $25.7B beats by $440M; revenue -2.9% y/y
• FLEX: FQ3 EPS of $0.35 beats by $0.04: revenue of $6.76B beats by $250M: revenue -3.8% y/y: guides in-line
• SWKS: FQ1 EPS of $1.60 beats by $0.02: revenue of $926.8M beats by $6.84M: revenue +15.1% y/y: guides Q2 below estimates
• SYNA: FQ2 EPS of $1.60 beats by $0.02: revenue of $470.5M misses by $7.61M: revenue +1.5% y/y: guides revenue below consensus
• WERN: Q4 EPS of $0.51 beats by $0.05: revenue of $527.78M misses by $19.78M:revenue -4.6% y/y
• QLGC: FQ3 EPS of $0.33 beats by $0.07: revenue of $122.73M beats by $5.36M: revenue -12.5% y/y: guides Q4 above estimates
• V: FQ1 EPS of $0.69 beats by $0.01: revenue of $3.57B misses by $50M: revenue +5.6% y/y
• WDC: FQ2 EPS of $1.60 beats by $0.06: revenue of $3.32B misses by $30M: revenue -14.7% y/y: weak guidance
• FTNT: Q4 EPS of $0.18 in-line: revenue of $296.52M beats by $0.3M: revenue +32.4% y/y: guides Q1 below consensus: guides FY16 in-line : authorizes $200M buyback

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• HON: Q4 EPS of $1.58 in-line: revenue of $9.98B in-line: revenue -2.8% y/y: guides FY16 EPS ex-items of $6.45-$6.70 vs consensus of $6.57
• IMGN: FQ2 EPS of -$0.38 misses by $0.02: revenue of $18.03M beats by $0.16M: revenue -62.7% y/y; reaffirms FY16 revenue guidance  of $70M-$80M vs consensus $75.14M
• TYC: FQ1 EPS of $0.42 beats by $0.01: revenue of $2.38B beats by $50M: revenue -4.0% y/y: guides in-line
• WHR: Q4 EPS of $4.10 beats by $0.19: revenue of $5.56B misses by $180M: revenue -7.3% y/y: guides FY16 ongoing business EPS $14.00-$14.75 vs consensus $14.42
• NS: Q4 EPS of $0.61 beats by $0.05: revenue of $464.92 misses by $60.94M: revenue -31.8% y/y
• CNX: Q4 EPS of -$0.11 misses by $0.02: revenue of $761.93M beats by $44.67M: revenue -18.6% y/y
• AAL: Q4 EPS of $2.00 beats by$0.03: revenue of $9.63B in-line: revenue -5.2% y/y
• XRX: Q4 EPS of $0.32 beats by $0.04: revenue of $4.65B misses by $80M: revenue -7.6% y/y: confirms split into two companies:guides FY16 adjusted EPS $1.10-$1.20 vs consensus $0.99
• PX: Q4 EPS of $1.47 in-line: revenue of $2.59B misses by $70M: revenue -13.4% y/y: guides Q1 $1.20-$1.28 vs consensus $1.41: soft FY16 guidance: increases dividend 5% to $0.75

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• TXTR: upgrade: market perform to outperform: Northland: $25
• ICPT: upgrade: underweight to equal weight: Morgan Stanley: $100
• JBLU: upgrade: hold to buy: Evercore
• JDP: upgrade: sell to neutral: Credit Suisse: $7
• DO: upgrade: sell to neutral: Citi
• FCFS: upgrade: neutral to buy: Janney Capital: $45
• TEAM: upgrade: market perform to outperform: JMP Securities
• FLEX: :upgrade: market perform to strong buy: Raymond James: $12.50
• FLEX: upgrade: hold to buy: Stifel: $13
• OSK: upgrade: neutral to buy: SunTrust: $38
• CX: upgrade: hold to buy: Jefferies: pt cut from $8 to $7
• RYN: upgrade: market perform to outperform: BMO Capital

DOWNGRADES:

• RRC: downgrade: overweight to equal weight: Barclays: $25
• URI: downgrade: buy to neutral: UBS: $56
• URI: downgrade: buy to neutral: Longbow
• DRI: downgrade: market perform to underperform: Raymond James
• CHUY: downgrade: outperform to market perform: Raymond James
• SPR: downgrade: neutral to sell: Goldman: pt cut from $52 to $37
• GLP: downgrade: overweight to neutral: Mitsubishi UFJ:
• ABT: downgrade: outperform to market perform: William Blair: 
• XEL: downgrade: outperform to neutral: Macquarie

INITIATIONS:

• JUNO: initiated: buy: SunTrust: $50
• KITE: initiated: buy: SunTrust: $70
• NTRI: initiated: buy: Wunderlich: $25
• MED: initiated: neutral: Wunderlich: $32
• FANG: initiated: outperform: BMO Capital: $74
• PE: initiated: outperform: BMO Capital: $20
• AEL: initiated: outperform: RBC Capital: $24

PRICE TARGET CHANGES;

• KMI: pt raised from $15 to $17: RBC Capital
• NOC: pt raised from $219 to $222: RBC Capital
• OSK: pt cut from $47 to $39: Barrington
• HP: pt cut from $69 to $66: FBR Capital
• HOG: pt cut from $44 to $43: RBC Capital
• HCA: pt cut from $90 to $86: RBC Capital
• ABT: pt cut from $51 to $45: RBC Capital
• BABA: pt cut from $95 to $89: RBC Capital
• ADS: pt cut from $355 to $287: RBC Capital
• AMZN: pt cut from $785 to $780: Citi
• AMZN: pt cut from $720 to $685: Mizuho
• AMZN: pt cut from $775 to $715: RBC Capital
• CELG: pt cut from $150 to $135: RBC Capital
• GIL: pt cut from $34 to $33: RBC Capital
• TGI: pt cut from $55 to $36: RBC Capital
• SWKS: pt cut from $100 to $90: Topeka Capital
• SWKS: pt cut from $110 to $105: Canaccord
• SC: pt cut from $20 to $13: Compass Point
• MEOH: pt cut from $45 to $34: RBC Capital

FB Quarterly Profits Top $1B | Morning News

JANUARY 28.2016
US futures under pressure, struggling at the flat line, at this hour after the market was hit yesterday afternoon, sparked by the Fed statement that still left a March rate hike on the table. China's volatile shares dropped again overnight, taking losses for the year to 25%. Officials from the IMF and World Bank are heading to Azerbaijan to discuss a possible $4B loan package in what could be the first in a series of bailouts arising from the crude glut and plummeting oil prices.

NEWS:

• FCX: S&P downgrades the company's senior credit ratings deeper into junk territory
• WWE: TTWO: 2K and WWE announce multi-year extension for WWE video game properties
• QYLS: announces resignation of the company's CFO
• GD: awarded $170.72M government contract
• VZ: YHOO: Verizon issues statement, denying the rumors of a bid for Yahoo
• BABA: Alibaba reaches deal to sell Meituan-Dianping stake, reports the WSJ
• ANTM: added to Citi's Focus List: $172
• DMND: narrows guidance

THE ECONOMIC CALENDAR:

• 8:30AM: Weekly Jobless Claims
• 8:30AM: Durable Goods Orders
• 9:45AM: Bloomberg Consumer Comfort Index
• 10AM: Pending Home Sales
• 10:30AM: EIA Natural Gas Inventory
• 11AM: Kansas City Fed Manufacturing Survey
• 1PM: $29B, 7 Year Note Auction
• 4:30PM: Money Supply and Fed Balance Sheet

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• FB: Q4 EPS of $0.79 beats by $0.11: revenue of $5.84B beats by $470M: revenue +51.7% y/y: ad revenue rose 57%: 1.59B users
• MLNX: Q4 EPS of $0.77: beats by $0.07: revenue of $176.94M beats by $3.03M; revenue +25.4% y/y: strong revenue guidance
• VRTX: Q4 EPS of $0.17 in-line: revenue of $417.9M beats by $11.6M; revenue +189.1% y/y
• QCOM: FQ1 EPS of $0.97 beats by $0.07: revenue of $5.77B beats by $80M: revenue -18.7% y/y: weak Q2 adjusted EPS guidance
• EBAY: Q4 EPS of $0.50 in-line: revenue of $2.32B in-line: revenue flat y/y: soft guidance
• CRUS: FQ3 EPS of $0.82 beats by $0.01: revenue of $347.9M beats by $1.02M: revenue +16.5% y/y: light FQ4 guidance
• LVS: Q4 EPS of $0.62 misses by $0.03: revenue of $2.86B misses by $60M: revenue -16.4% y/y: raises dividend
• HOLX: FQ1 EPS of $0.46 beats by $0.04: revenue of $695.2M beats by $7.16M; revenue +6.5% y/y: guides EPS higher
• SNDK: Q4 EPS of $1.26 beats by $0.37: revenue of $1.54B beats by $100M: revenue -11.5% y/y
• TSCO: Q4 EPS of $0.82 in-line: revenue of $1.65B in-line: revenue +4.4% y/y: guides in-line
• CTXS: Q4 EPS of $1.66 beats by $0.47: revenue of $904.76M beats by $27.72M: revenue +6.3% y/y: solid guidance: authorizes $400M increase to share repurchase program
• LRCX: FQ2 EPS of $1.57 beats by $0.14: revenue of $1.42B beats by $10M: revenue +15.4% y/y: soft Q3 EPS guidance
• KEX: Q4 EPS of $0.94 misses by $0.03: revenue of $484.14M misses by $33.1M: revenue -27.6% y/y: weak Q1 and FY15 EPS guidance: warns
• NOW: Q4 EPS of $0.19 beats by $0.11: revenue of $285.7M beats by $4.3M; revenue +44.3$% y/y: weak FY16 sales guidance
• MCK: Q4 EPS of $3.18 beats by $0.05: revenue of $47.9B misses by $890M: revenue +3.0% y/y: reaffirms FY16 guidance
• INVN: FQ3 EPS of $0.18 in-line: revenue of $120M beats by $2.29M: revenue +3.6% y/y: guides revenue below consensus
• JNPR: Q4 EPS of $0.63 beats by $0.04: revenue of $1.32B beats by $20M; revenue +20.0% y/y: weak Q1 guidance
• URI: Q4 EPS of $2.19 misses by $0.12: revenue of $1.52B misses by $10M: revenue -2.6% y/y:  issues cautious guidance
• DFS: Q4 EPS of $1.14 misses by $0.16: revenue of $2.21B misses by $10M: revenue +8.3% y/y
• PYPL; Q4 EPS of $0.36 beats by $0.01: revenue of $2.56B beats by $50M; revenue +16.9% y/y: authorizes $2B share repurchase program: guides in-line
• CGI: FQ2 EPS of $0.24 misses by $0.09: revenue of $275.4M beats by $5.23M: revenue +23.8% y/y
• TTEK: Q4 EPS of $0.71 beats by $0.02: revenue of $3.19B misses by $10M: revenue -2.4% y/y: raises guidance, but remains in-line with consensus
• CCI: Q4 EPS of $1.11 beats by $0.01: revenue of $945.84M beats by $17.31M; revenue +2.2% y/y: raises guidance, but remains in-kine with consensus: names new CEO
• VAR: FQ1 EPS of $0.99 beats by $0.05: revenue of $757.1M beats by $10.54M; revenue +2.6% y/y: mixed guidance: strong FY16 EPS guidance: soft Q2 EPS guidance
• CLS: Q4 EPS of $0.27 misses by $0.03: revenue of $1.51B beats by $90M: revenue +6.3% y/y: weak EPS guidance
• MUR: Q4 EPS of -$0.76 beats by $0.44: revenue of $658.1 beats by $47.46M: revenue -53.3% y/y: Enbridge to buy Murphy Oil BC midstream assets for C$538M
• SLG: Q4 FFO of $1.62 beats by $0.01: revenue of $319.96M misses by $12.55M: revenue +8.8% y/y
• DRE:Q4 FFO of $0.26 in-line: revenue of $221.56M beats by $21.34M: revenue -10.0% y/y: guides in-line
• TXN: Q4 EPS of $0.71 beats by $0.02: revenue of $3.19B misses by $10M: revenue -2.4% y/y: guides revenue below consensus
• TER: Q4 EPS of $0.13 beats by $0.03: revenue of $318M beats by $6.23M: revenue -1.6% y/y

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• CSH: Q4 EPS of $0.48 in-line: revenue of $280.08M misses by $4.67M: revenue -3.2% y/y: guides Q1 EPS above consensus: guides FY16 EPS $1.25-$1.45 vs consensus $1.36
• LLY: Q4 EPS of $0.78 in-line: revenue of $5.3B beats by $60M; revenue +5.1% y/y: mixed guidance: FY16 adjusted EPS in-line guidance: FY16 revenue soft guidance
• POT: Q4 EPS of $0.24 misses by $0.07: revenue of $1.35B misses by $100M: revenue -28.9% y/y: guides FY16 EPS $0.90-$1.20 vs consensus $1.34
• SWK: Q4 EPS of $1.78 may not be comparable to consensus of $1.77: revenue of $2.85B misses by $90M: revenue -4.4% y/y:guides FY16 EPS $6.00-$6.20 vs consensus $6.41
• TWC: Q4 EPS of $1.80 beats by $0.02: revenue of $6.07B beats by $20M: revenue +4.8% y/y
• MKC: Q4 EPS of $1.18 beats by $0.01: revenue of $1.20B beats by $10M: revenue +2.6% y/y: mixed guidance: guides FY16 adjusted EPS $3.65-$3.72 vs consensus $3.73
• TMO: Q4 EPS of $2.12 beats by $0.01: revenue of $4.65B beats by $100M: revenue +3.6% y/y
• BABA: FQ3 EPS of RMB6.43 beats by RMB0.62: revenue of RMB34.54B beats by RMB1.28B: revenue +31.9% y/y
• AEP: Q4 EPS of $0.48 misses by $0.02: revenue of $3.6B misses by $300M: revenue -5.3% y/y: reaffirms guidance
• MJN: Q4 EPS of $0.78 beats by $0.05: revenue of $967M in-line: revenue -11.3% y/y: guides in-line
• AN: Q4 EPS of $0.96 misses by $0.08: revenue of $5.15B misses by $310M: revenue +2.6% y/y
• CELG: Q4 EPS Of $1.18 misses by $0.04: revenue of $2.56B beats by $20M: revenue +22.% y/y: guides in-line
• CAT: Q4 EPS of $0.74 beats by $0.04: revenue of $11.03B misses by $420M: revenue -22.5% y/y: guides above estimates
• JBLU: Q4 EPS of $0.56 beats by %0.05: revenue of $1.59B beats by $20M: revenue +9.7% y/y
• VLO: Q4 EPS of $1.79 beats by $0.34: revenue of $18.77B beats by $2.02B: revenue -32.6% y/y
• MO: Q4 EPS Of $0.67 misses by $0.01: revenue of $4.73B misses by $10M: revenue +2.6% y/y: guides in-line
• LLL: Q4 EPS of $2.16 beats by $0.16: revenue of $2.87B misses by $200M: revenue -3.0% y/y: guides EPS above consensus
• BMY: Q4 EPS of $0.38 beats by $0.10: revenue of $4.29B beats by $150M: revenue +0.7% y/y: guides in-line
• UA: Q4 EPS of $0.48 beats by $0.02: revenue of $1.17B beats by $50M: revenue +30.7% y/y: guide FY16 revenue $4.95B vs consensus $4.91B: footwear revenue +95%
• HSY: Q4 EPS of $1.08 beats by $0.03: revenue of $1.91B misses by $70M: revenue -5.0% y/y
• SHW: Q4 EPS of $2.12 beats by $0.25: revenue of $2.60B beats by $10M: revenue +1.2% y/y: guides Q1 EPS $1.50-$1.65 vs consensus $1.62: weak FY16 EPS guidance
• RTN:Q4 EPS of $1.93 beats by $0.12: revenue of $6.3B in-line: revenue +2.6% y/y: mixed guidance: soft FY16 EPS guidance: solid FY16 revenue guidance
• EDP: Q4 EPS of $0.34 misses by $0.01: revenue of $6.16B misses by $1.58B: revenue -39.5% y/y
• XEL: Q4 EPS of $0.41 in-line: revenue of $2.65B misses by $730M: revenue -9.6% y/y
• TGI: FQ3 EPS of $1.39 beats by $0.01: revenue of $913.87M misses by $44.22M: revenue -0.4% y/y: guides FY16 revenue $3.9B vs consensus $3.92B: soft Q4 EPS guidance
• WCC: Q4 EPS of $1.03 beats by $0.01: revenue of $1.86B beats by $20M: revenue -7.0% y/y
• PHM: Q4 EPS of $0.64 may not be comparable to consensus of $0.49: revenue of $2.06B beats by $210M: revenue +13.2% y/y
• HOG: Q4 EPS of $0.22 beats by $0.03: revenue of $1.01B misses by $20M: revenue -1.9% y/y
• JCI: FQ1 EPS of $0.82 in-line: revenue of $8.93B misses by $360M: revenue -7.2% y/y: reaffirms guidance
• OSK: FQ1 EPS of $0.19 beats by $0.12: revenue of $1.25B beats by $50M: revenue -7.4% y/y:  cuts FY16 EPS to $2.20-$2.60 from $3.00-$3.40 vs consensus $3.04
• DGX: Q4 EPS of $1.19 in-line: revenue fo $1.85B in-line: revenue -1.6% y/y: raises quarterly dividend from $0.38 to $0.40

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• ALGN, AMGN, AMZN, ARAY, BCR, CPT, EA, EPAY, FICO, FTNT, GIMO, KLAC, MSFT, MTW, N, PFPT, QSII, RGA, SHOR, SIMO, SWKS, SYNA, TMST, UIS, V, WDC, WERN

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• EMC: upgrade: hold to buy: Maxim Group: pt cut from $30 to $28.50
• NMBL: upgrade: hold to buy: Maxim Group: pt cut from $15 to $14
• SNDK: upgrade: neutral to buy: Mizuho: $86.50
• DLB: upgrade: neutral to buy: Dougherty & Company: $38
• PB: upgrade: market perform to outperform: Keefe Bruyette: $54
• CYH: upgrade: underperform to market perform: Raymond James
• HAL: upgrade: accumulate to buy: KLR Group: $44
• HA: upgrade:underperform to neutral: BofA/Merrill: pt raised from $30 to $40
• CRUS: upgradE; perform to outperform: Oppenheimer
• KMI: upgrade: neutral to outperform: Credit Suisse: pt raised from $18 to $20
• KMI: upgrade: hold to buy: Stifel
• PYPL: upgrade: neutral to outperform: Wedbush: $40
• CTXS: upgrade: underperform to market perform: JMP Securities
• RDC: upgrade: underweight to equal weight: Morgan Stanley

DOWNGRADES:

• NOW: downgrade: buy to neutral: Mizuho: pt cut from $90 to $65
• URI: downgrade: buy to neutral: UBS: pt cut from $94 to $56
• RRC: downgrade: overweight to equal weight: Barclays
• TUP: downgrade: overweight to neutral: Piper Jaffray: $50
• KEX: downgrade: outperform to sector perform: RBC Capital: pt cut from $65 to $32
• QCOM: downgrade: outperform to market perform: William Blair
• TRIP: downgrade: market perform to underperform: Raymond James:
• ROK: downgrade: market perform to underperform: Bernstein: 481
• HCN: downgrade: buy to hold: Evercore: 

INITIATIONS:

• PARR: initiated: outperform: Imperial Capital: $30
• PSTG: initiated: buy: Maxim Group: $22

PRICE TARGET CHANGES:

• FB: pt raised from $155 to $170: Piper Jaffray
• FB: pt raised from $127 to $136: JP Morgan
• FB: pt raised from $125 to $145: Deutsche Bank
• FB: pt raised from $125 to $130: FBR Capital
• FB: pt raised from $130 to $160: RBC Capital
• LVS: pt raised from $44 to $45: Telsey Advisory
• VRTX: pt cut from $180 to $143: Piper Jaffray
• EBAY: pt cut from $30 to $25: Piper Jaffray
• EBAY: pt cut from $30 to $29: RBC Capital
• NSC: pt cut from $93 to $89: Cowen
• RIG: pt cut from $12 to $2.70: Morgan Stanley
• QCOM: pt cut from $52 to $50: Topeka Capital
• QCOM: pt cut from $67 to $60: Brean Capital
• VLY: pt cut from $11 to $9: RBC Capital
• UTX: pt cut from $104 to $100: RBC Capital
• BA: pt cut from $153 to $143: RBC Capital
• PYPL: pt cut from $46 to $42: RBC Capital
• NOW pt cut from $90 to $85: RB Capital
• GD: pt cut from $173 to $166: RBC Capital
• GD: pt range cut from $165-170 to $158-163

FOMC | Morning News

JANUARY 27, 2016
US futures under pressure as traders await the FOMC announcement at 2PM EST with no policy change expected, however analysis will peruse the statement for clues to future rate hikes. Overnight, global markets trade mixed with Asia closing mostly higher and Europe modestly lower. Crude flirting yet again with the $30 level as the commodity trades 2.6% lower at this hour.

NEWS:

• CNC: guides FY16 adjusted EPS $4.10-$4.40 vs consensus of $3.77
• UAL: Altimeter Capital Management and PAR Capital Management increase their stakes in United Continental
• NFLX: Netflix blocked by Indonesia's Top Telecom Provider, reports nasdaq
• GOOGL: GOOG: Google files patent for drone "deliver yreceptacle", reports reuters
• TAP: files to sell $2.35B of Class B shares
• FDX: announces authorization to launch a 25M share repurchase program
• WFC: announces authorization to raised buyback by 350M shares
• CLR: lowers 2016 capex by 66% to $920M
• HBI: raises dividend 10% to $0.11
• RIO: announces agreement to sell its Mount Pleasant coal project for $224M plus royalties

THE ECONOMIC CALENDAR:

• 7AM: MBA Mortgage Applications
• 10AM: New Home Sales
• 10:30AM: EIA Petroleum Inventories
• 11:30AM: $15B, 2 Year FRN Auction
• 1PM: $35B, % Year Note Auction
• 2PM: FOMC Announcement

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• AAPL:  FQ1 EPS of $3.28 beats by $0.05: revenue of $75.87B misses by $720M: revenue +1.7% y/y: guides below consensus: CFO calls macroeconomic environment "very difficult"
• VMW: Q4 EPS of $1.26 beats by $0.01: revenue of $1.87B beats by $20M: revenue +10.1% y/y: guides FY16 EPS of $4.07-$4.16 vs consensus of $4.20: guides FY15 revenue below consensus
• T: Q4 EPS of $0.63 in-line: revenue of $42.1B misses by $650M: revenue +22.2% y/y
• HA: Q4 EPS of $0.85 beats by $0.01: revenue of $574.2M beats by $6.96M: revenue -0.1% y/y
• PLCM: Q4 EPS of $0.23 in-line: revenue of $316.8M beats by $2.08M: revenue -9.2% y/y
• CNI: Q4 EPS of C$1.18 beats by C$0.06: revenue C$3.17B misses by C$90M: revenue -1.2% y/y
• CA: FQ3 EPS of $0.63 beats by $0.05: revenue of $1.03B beats by $30M: revenue -5.5% y/y: solid bookings: raises EPS guidance
• COF: Q4 EPS of $1.67 beats by $0.06: revenue of $6.19B beats by $80M: revenue +6.5% y/y
• SYK: Q4 EPS of $1.56 beats by $0.01: revenue of $2.72B beats by $10M: revenue +3.8% y/y: guides FY16 in-line with consensus
• CB: Q4 EPS of $2.38 beats by $0.12: revenue of $3.63B misses by $270M: revenue -4.5% y/y
• X: Q4 EPS of -$0.23 may not be comparable to consensus of $0.83: revenue of $2.57B beats by $50M: revenue -36.9% y/y: sees lower results across operating segments in FY16
• TSS: Q4 EPS of $0.57 misses by $0.03: revenue of $716.8M beats by $24.93M: revenue +12.9% y/y: announces agreement to acquire Vista Equity Partners' TransFirst for $2.35B

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• BA: Q4 EPS of $1.60 beats by $0.34: revenue of $23.6B beats by $50M: revenue -3.6% y/y: weak guidance
• BIIB: Q4 EPS of $4.450 beats by $0.42: revenue of $2.84B beats by $130M: revenue +7.6% y/y
• HES: Q4 EPS of -$1.40 beats by $0.07: revenue of $1.39B misses by $140M: revenue -45.1% y/y
• ITW: Q4 EPS Of $1.23 beats by $0.02: revenue of $3.27B beats by $30M: revenue -6.6% y/y: guides FY16 in-line
• NSC: Q4 EPS of $1.20 misses by $0.03: revenue of $2.52B misses by $50M: revenue -12.2% y/y
• ROL: Q4 EPS of $015 in-line: revenue of $362.5M beats by $3.09M: revenue +5.4% y/y
• EMC: Q4 EPS of $0.65 in-line: revenue of $7.01B misses by $120M: revenue -0.6% y/y
• BAH: FQ3 EPS of $0.41 beats by $0.01: revenue of $1.31B misses by $10M: revenue +0.8% y/y
• ROK: FQ1 EPS of $1.49 beats by $0.16: revenue of $1.43B beats by $50M: revenue -8.9% y/y
• TUP: Q4 EPS of $1.35 misses by $0.03: revenue of $592.1M misses by $14.43M: revenue -12.9% y/y: weak FY16 and Q1 EPS guidance
• PGR:
• STJ: Q4 EPS of $1.02 beats by $0.01: revenue of $1.45B misses by $20M:revenue +0.7% y/y: guides Q1 adjusted EPS in-line with consensus
• STT: Q4 EPS of $1.21 beats by $0.03: revenue of $2.59B misses by $50M: revenue -4.8% y/y
• TXT: Q4 EPS of $0.81 misses by $0.02: revenue of $3.92B misses by $310M: revenue -4.4% y/y
• UTX:rQ4 EPS of $1.53 beats by $0.01: revenue of $14.65B misses by $700M: revenue -2.2% y/y: affirms FY16 guidance
• CAJ: FY15 EPS of $1.67 misses by $0.06: revenue of $31.41B misses by $1.09B: revenue +2.0% y/y
• ROK: cuts FY16 adjusted EPS guidance but remains in-line

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• AF, CAVM, CGI, CLB, CLS, CMO, CRUS, CTXS, DFS, EBAY, FB, HOLX, INVN, JNPR, LRCX, LVS, MCK, MLNX, MSTR, MUR, NOW, OSIS, QCOM, SLG, TER, TSCO, TXN, URI, VAR, VRTX

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• MCD: upgrade: hold to buy: Argus: $140
• HBAN: upgrade: neutral to outperform: Baird: $12
• HBAN: upgrade: underperform to neutral: Macquarie: $12
• RPTP: upgrade: neutral to buy: Citigroup: pt cut fro $8 to $6
• SMCI: upgrade: neutral to positive: Susquehanna: pt raised from $28 to $33
• AAL: upgrade: neutral to buy: UBS
• EXC: upgrade: sell to neutral: Citigroup
• HA: upgrade: hold to buy: Deutsche Bank: pt raised from $35 to $40
• S; upgrade: underperform to perform: Oppenheimer: 
• ALV: upgrade: neutral to outperform: Baird: pt raised from $116 to $138
• BHP: upgrade: equal weight to overweight: Morgan Stanley
• TEX: upgrade: underweight to neutral: JP Morgan: $24
• SYK: upgrade: hold to buy: Brean Capital: $115
• PCG: upgrade: neutral to buy: Goldman: $57
• NEE: upgrade: buy to conviction buy: Goldman
• BWA: upgrade: neutral to outperform: Baird: pt cut from $48 to $39

DOWNGRADES:

• BBBY: downgrade: sector weight to underweight: Keybanc
• PIR: downgrade: overweight to sector weight: KeyBanc
• HVT: downgrade: overweight to sector weight: KeyBanc
• WEC: downgrade: conviction buy to neutral: Goldman: pt raised from $54 to $56
• HCN: downgrade: market perform to underperform: BMO Capital: pt cut from $70 to $63
• GRA: downgrade: conviction buy to buy: Goldman
• MDVN: downgrade: buy to hold: Canaccord: pt cut from $90 to $45
• TRIP: downgrade: neutral to sell: Goldman: pt cut from $68 to $59
• BWLD: downgrade: buy to neutral: BTIG:
• BBY: downgrade: neutral to sell: Citigroup
• JAH: downgrade: buy to neutral: Citigroup: pt cut from $56 to $54
• VMW: downgrade: buy to hold: Summit Research: pt cut from $80 to $40
• VMW: downgrade: outperform to neutral: Baird: pt cut from $80 to $60
• REGN: downgrade: buy to hold: Canaccord: pt cut from $700 to $525
• DWA: downgrade: hold to sell: Topeka Capital: $19
• FMER: downgrade: outperform to sector perform: RBC Capital: pt cut from $21 to $19
• TLMR: downgrade: outperform to sector perform: RBC Capital: pt cut from $21 to $16
• TSS: downgrade: overweight to equal weight: First Analysis
• BLD: downgrade: overweight to sector weight: KeyBanc
• BRO: downgrade: equal weight to underweight: Morgan Stanley: pt cut from $33 to $30
• GNTX: downgrade: outperform to neutral: Baird: pt cut from $22 to $14
• MPG: downgrade: outperform to neutral: Baird: pt cut from $28 to $14

INITIATIONS:

• SPTN: initiated: buy: Pivotal Research: $27
• YRD: initiated: buy: Needham: $8.50
• STX: initiated: sell: Citi
• WDC: initiated: buy: Citi
• SNDK: initiated: buy: Citi
• INFN: initiated: buy: Citi
• ANET: initiated: buy: Citi

MAINTAINS:

• AAPL: maintains: buy: Drexel: $200
• AAPL: maintains: hold: Deutsche Bank: $105
• AAPL: maintains: outperform: Oppenheimer: $120

PRICE TARGET CHANGES:

• SERV: pt raised from $44 to $46: RBC Capital
• RLI: pt raised from $52 to $55: Compass Point
• MTSI: pt raised from $46 to $48: Stifel
• BHP: pt cut from $37 to $25: Cowen
• WDAY: pt cut from $88 to $70: Wunderlich
• VMW: pt cut from $75 to $61: Maxim Group
• VMW: pt cut from $76 to $52: BMO Capital
• TYC: pt cut from $45 to $40: Argus
• LMT: pt cut from $250 to $244: RBC Capital
• FTNT: pt cut from $38 to $32: RBC Capital
• BXS: pt cut from $28 to $25: RBC Capital
• BRO: pt cut from $34 to $33: RBC Capital
• CNI: pt cut from $82 to $81: RBC Capital
• CR: pt cut from $50 to $48: RBC Capital
• DD: pt cut from $63 to $57; RBC Capital
• DHR: pt cut from $83 to $87: RBC Capital
• PHM: pt cut from $20 to $18: RBC Capital
• PII: pt cut from $88 to $80: RBC Capital
• PII: pt cut from $103 to $85: Stifel
• AAPL: pt cut from $140 to $120: Stifel: (remains outperform)
• AAPL; pt cut from $143 to $135: Morgan Stanley (remains overweight)
• AAPL; pt cut from $145 to $141: JP Morgan (remains overweight)
• AAPL: pt cut from $179 to $172: Piper Jaffray: (remains Piper's Top Pick for 2016)

AAPL earnings on tap | Morning News

JANUARY 26, 2016
US futures higher with European markets trading mixed and oil finding support at $30. Overnight, Asian stocks added to losses with the Shanghai and Shenzhen plunging when crude slipped back below $30 after Saudi Arabia reiterated their pledge to maintain energy investment and Iraq's output hit a record high. Additionally Kuwait OPEC Governor sees 2016 oil demand lower than last year but hints that OPEC is ready to cooperate to stabilize the oil market. Investor attention turn to earnings with AAPL reporting after the close. The FOMC meeting begins today and reports tomorrow afternoon when traders hope to get some insight as to the timing of additional rate hikes.

NEWS:

• AMGN: ABBV: FDA accepts Amgen's biosimilar biologics license application for ABP 501, reports prnewswire
• CNC: announces that it cannot locate six hard drives in its inventory with contains health info on 950K patients
• LULU: Lone Capital discloses a 5% stake in Lululemon
• ROYT: announces that there will be no cash distribution to unit holders for February
• FMER: in advanced talks to be bought by Huntington Bancshares, reports WSJ
• MGM: MGM China said to get approval to amend $3B loan, reports Bloomberg
• FL: BofA/Merrill out positive on the stock, adds to US #1 List
• TWTR: Cantor sees Twitter as a takeover target: maintains buy rating and $45 pt

THE ECONOMIC CALENDAR:

• FOMC meeting begins today
• 8:55AM: Redbook Chain Store Sales
• 9AM: FHFA House Price Index
• 9AM: S&P Case-Shiller Home Price Index
• 9:45AM: PMI Services Index Flash: actual 53.7 vs expectation 53.7
• 10AM: Richmond Fed Manufacturing: actual 4 vs expectation of 3
• 10AM: Consumer Confidence: actual 98.1 vs expectation of 96.5
• 10AM: State Street Investor Confidence Index
• 1PM: $26B, 2 Year Note Auction

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• BXS:Q4 EPS of $0.33 misses by $0.04: revenue of $178.61M misses by $2.37M: revenue +5.1% y/y
• ELS: Q4 FFO of $0.74 misses by $0.01: revenue of $201.6M beats by $12.51M: revenue +6.0% y/y: guides in-line
• CR: Q4 EPS of $1.12 beats by $0.02: revenue of $680.6M midddd ny $11.9M: revenue -6.9% y/y: weak FY16 guidance
• PKG: Q4 EPS of $1.08 beats by $0.05: revenue of $1.39B misses by $40M: revenue -2.8% y/y: guides Q1 EPS $1.00 vs consensus $1.08
• RMBS: Q4 EPS of $0.18 beats by $0.03: revenue of $76.8M beats by $3.08M: revenue +6.6% y/y: strong 2016 guidance
• STLD:Q4 EPS of $0.09 beats by $0.02: revenue of $1.59B misses by $110M: revenue -36.9% y/y
• SWFT: Q4 EPS of $0.53 beats by $0.06: revenue of $1.09B misses by $30M: revenue -4.4% y/y: guides in-line
• ZION: Q4 EPS of $0.43 beats by $0.02: revenue of $572.89M beats by $5.99M: revenue +2.3% y/y
• BRO: Q4 EPS of $0.38 beats by $0.02: revenue of $404.7M beats by $2.02M: revenue +2.0% y/3
• ASH: FQ1 EPS of $1.41 beats by $0.02: revenue of $1.1B misses by $60M: revenue -16.5% y/y

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• PG: FQ2 EPS of $1.04 beats by $0.06: revenue of $16.92B misses by $20M: revenue -8.5% y/y
• COH: FQ2 EPS of $0.68 beats by $0.01: revenue of $1.27B misses by $10M: revenue +4.1% y/y
• FCX: Q4 EPS of -$0.02 beats by $0.11: revenue of $3.8B misses by $90M: revenue -27.5% y/y
• MMM: Q4 EPS of $1.80 beats by $0.17: revenue of $7.3B beats by $90M: revenue -5.4% y/y: affirms guidance
• PH: FQ2 EPS of $1.52 beats by $0.34: revenue of $2.71B beats by $20M: revenue -13.4% y/y: guides FY15 adjusted EPS of $5.90-$6.30 vs consensus of $6.03
• DD: Q4 EPS of $0.27 beats by $0.02: revenue of $5.3B misses by $230M: revenue -9.4% y/y:guides FY16 operating EPS of $2.95-$3.10 vs consensus $3.15
• DHR: Q4 EPS of$1.27 in-line: revenue of $5.99B misses by $130M: revenue +12.4% y/y: guides FY16 adjusted EPS of $4.80-$4.95 vs consensus $4.90
• DOV: Q4 EPS of $0.81 beats by $0.06: revenue of $1.69B beats by $20M: revenue -14.6% y/y
• JNJ: Q4 EPS of $1.44 beats by $0.02: revenue of $17.81B misses by $70M: revenue -2.4% y/y
• LMT: Q4 EPS of $3.01 beats by $0.07: revenue of $12.92B beats by $560M: revenue +3.1% y/y
• S: FQ3 EPS of -$0.21 beats by $0.04: net operating revenue of $8.11B: revenue -9.6% y/y: guidance raised
• PII: Q4 EPS of $1.66 beats by $0.02: revenue of $1.11B beats by $30M: revenue -13.3% y/y: guides FY16 EPS of $6.20-$6.80 vs consensus $6.94
• JNS: Q4 EPS of $0.25 beats by $0.01: revenue of $267.8M misses by $198M: revenue +5.1% y/y
• GK: FQ2 EPS of $0.92 beats by $0.03: revenue of $243.06M misses by $2.32M: revenue +2.4% y/y
• WAT: Q4 EPS of $1.96 beats by $0.01: revenue of $586.61M beats by $4.71M: revenue +-.5% y/y

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• AAPL, CA, CB, CNI, COF, HA, HMST, MRCY, PLCM, SYK, T, TSS, VMW, X

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• HIG: upgrade: neutral to overweight: Atlantic Equities: $50
• VOD: upgrade: hold to buy: Jefferies
• SANM: upgrade: sell to neutral: Citi
• SBH: upgrade: perform to outperform: Oppenheimer
• CBRL: upgrade: neutral to buy: SunTrust: pt raised from $149 to $151
• SBAC: upgrade: hold to buy: Stifel: $112
• MFA: upgrade: neutral to overweight: JP Morgan: $7
• AMC: upgrade: sector perform to outperform: RBC Capital: pt cut from $32 to $27

DOWNGRADES:

• DIS: downgrade: overweight to neutral: Piper Jaffray: pt cut from $148 to $104
• FTNT: downgrade: buy to hold: Deutsche Bank: pt cut from $49 to $34
• SSYS: downgrade: overweight to neutral: JP Morgan: pt cut from $24 to $19
• PEI: downgrade: equal weight to underweight: Barclays: $18
• VNO: downgrade: overweight to equal weight: Barclays: $97
• RSE: downgrade: overweight to equal weight: Barclays: pt cut from $21 to $17
• PSA: downgrade: overweight to equal weight: Barclays: $218
• GGP: downgrade: overweight to equal weight: Barclays: $27
• HAL: downgrade: buy to hold: HSBC
• RHT: downgrade: buy to neutral: BofA/Merrill: $80
• CLB: downgrade; hold to reduce: HSBC: $75
• N: downgrade: neutral to underperform: BofA/Merrill: pt cut from $95 to $80
• MKTO: downgrade: neutral to underperform: BofA/Merrill: pt cut from $32 to $22
• PCTY: downgrade: neutral to underperform: BofA/Merrill: pt cut from $40 to $31
• DK: downgrade: buy to neutral: Goldman: pt cut from $30 to $20
• RGC: downgrade: outperform to sector perform: RBC Capital: pt cut from $24 to $19

INITIATIONS:

• IPWR: initiated: buy: Rodman & Renshaw: $12
• MEET: initiated: buy: Topeka Capital: $6
• FSLR: initiated: by: Roth Capital: $80

PRICE TARGET CHANGES:

• MCD: pt raised from $130 to $135: Deutsche Bank
• TYC: pt raised from $34 to $38: RBC Capital
• MCD: pt raised from $130 to $132: RBC Capital
• SANM: pt raised from $18 to $19: RBC Capital
• HCN: pt cut from $80 to $73: RBC Capital
• HSY: pt cut from $95 to $92: RBC Capital
• BX: pt cut from $44 to $38: RBC Capital
• DHI: pt cut from $35 to $31: RBC Capital
• JCI: pt cut from $42 to $40: RBC Capital
• CFG: pt cut from $33 to $30: Compass Point
• LPI: pt cut from $15 to $11: Topeka Capital
• MBFI: pt cut from $27 to $31: Hovde Group
• OMED: pt cut from $40 to $15: Mizuho
• HAL: pt cut from $38 to $33: Cowen
• UA: pt cut from $110 to $95: Deutsche Bank
• UA: pt cut from $88 to $64: Piper Jaffray
• LQ: pt cut from $19 to $17: Stifel
• H: pt cut from $62 to $50: Stifel
• TWTR: pt cut from $40 to $28: Goldman

Oil falters | Morning News

JANUARY 25, 2016
On the heels of a positive end to last week, US futures point to a lower opening with Asian shares closing higher but European markets trading modestly lower. Overnight, crude headed lower, giving back a good part of its gains from last week on the ever present oversupply woes in combination with some profit taking. To add to the pressure on the commodity, Saudi Arabia announced over the weekend that it would not reduce its new investment in oil and gas production capacity despite cost-cutting measures, and Iran marked its first sale of crude to a European country since the lifting of sanctions.

NEWS:

• JCI: TYC: Johnson Controls confirms it will merge with Tyco International
• FUN: added to Goldman's Conviction Buy list
• MDVN: FDA places investigational new drug application for MDV9300 on partial hold
• SLB: Schlumberger to win unconditional EU approval for Cameron Deal, reports reuters
• TWTR: CEO Jack Dorsey confirms that four key executives have left the company, reports re/code
• BMY: FDA approves expanded label for Opdivo/Yervoy combination
• BA: complete first refueling flight of KC-46A tanker, reports reuters
• GE: Iraq approves GE electric grid deal worth $328M
• MCD: announces plans to launch 60 restaurants in Russia in 2016

SOME INTERESTING ARICLES IN BARRONS OVER THE WEEKEND:

• CMG: Chipotle Shares are Still Pricey, could fall another 20%, reported here
• NWL: With the Jarden acquisition, Newell will more than double in size and shares could double in 3-5 years, reports Jack Hough
• IP: Time to buy. The stock has been hit by commodities woes and it's overdone at this point. Could rally 50%, says Sandra Ward

SOME NOTABLE EARNINGS REPORTED BEFORE THE OPENING TODAY:

• DHI: FQ1 EPS of $0.42 beats by $0.01: revenue of $2.3B misses by $40M: revenue +5.4% y/y
• HAL: Q4 EPS of $0.31 beats by $0.07: revenue of $5.08B misses by $30M: revenue -42.1% y/y
• KMB: Q4 EPS of $1.42 misses by $0.01: revenue of $4.54B misses by $30M: revenue -6.0% y/y
• MCD: Q4 EPS of $1.31 beats by $0.08: revenue of $6.34B beats by $120M: revenue -3.5% y/y:
• PETS:FQ3 EPS of $0.24 misses by $0.01: revenue of $50.93M beats by $1.65M: revenue +3.3% y/y

SOME NOTABLE EARNINGS TO BE REPORTED AFTER THE CLOSE TODAY:

• ASH, PRO, BXS, CR, ELS, PKG, RLI, RMBS, SANM, STLD, SWFT, ZION

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• HD: upgrade: hold to buy: Deutsche Bank: $135
• OFC: upgrade: neutral to buy: Mizuho: pt raised from $23 to $25
• VYGR: upgrade: sell to neutral: Chardan Capital: $15
• INTC: upgrade: neutral to outperform: Macquarie: pt raised from $34 to $35
• SCHW: upgrade: neutral to buy: Nomura: $34
• GS: upgrade: neutral to buy: Nomura: pt raised from $207 to $210
• PNFP: upgrade: underperform to market perform: Hovde Group: pt cut from $52 to $51
• TOL: upgrade: outperform to strong buy: Raymond James: $40

DOWNGRADES:

• OKS: downgrade: outperform to neutral: Baird: pt cut from $40 to $25
• REGN: downgrade: neutral to sell: Chardan Capital: pt cut from $525 to $400
• IFF: downgrade: buy to hold: Stifel
• BMY: downgrade: outperform to market perform: BMO Capital: pt cut from $74 to $70
• TOL: downgrade: outperform to market perform: JMP Securities
• WFM: downgrade: market perform to underperform: BMO Capital: pt cut from $26 to $23
• TWTR: downgrade: buy to hold: Stifel
• CAT: downgrade: hold to sell: Goldman: pt cut from $67  to $51
• N: downgrade: overweight to equal weight: Stephens
• OVAS: downgrade: outperform to perform: Oppenheimer
• RJF: downgrade: buy to neutral: Nomura: pt cut from $65 to $55
• JPM: downgrade: buy to neutral: Nomura: pt raised from $70 to $71
• AXP: downgrade: overweight to equal weight: Morgan Stanley: $64
• PKG: downgrade: buy to neutral: Citi
• SNDK: downgrade: outperform to underperform: CLSA: pt cut from $86 to $70
• IP: downgrade: buy to neutral: Citi: pt cut from $45 to $38

INITIATIONS:

• ADHD: initiated: outperform: Northland: $16
• QTS: initiated: buy: SunTrust: $52

PRICE TARGET CHANGES:

• SAP: pt raised from $76 to $79: FBR Capital
• VZ: pt raised from $48 to $50: RBC Capital
• UA: pt cut from $110 to $95: Cowen
• XEC: pt cut from $128 to $110: Topeka Capital
• CTXS: pt cut from $82 to $80: RBC Capital
• FIT: pt cut from $33 to $28: RBC Capital
• FCX: pt cut from $10 to $8: RBC Capital
• GE: pt cut from $34 to $33: RBC Capital
• STI: pt cut from $48 to $46: RBC Capital
• STJ: pt cut from $66 to $57: RBC Capital
• COL: pt cut from: $105 to $99: RBC Capital
• JBL: pt cut from $26 to $23: RBC Capital
• CLVS: pt cut from $35 to $23: Mizuho
• GPOR: pt cut from $50 to $42: Topeka Capital
• XON: pt cut from $42 to $28: Mizuho
• KSU: pt cut from: $83 to $76: Cowen
• KSU: pt cut from $88 to $80: UBS
• Z: pt cut from $38 to $32: Canaccord
• SLB: pt cut from $81 to $75: Cowen
• ENS: pt cut from $73 to $67: Stifel
• EPE: pt cut from $12 to $6: Topeka Capital
• HES: pt cut from $58 to $38: JP Morgan
• SSYS: pt cut from $37 to $30: Jefferies
• DD: pt cut from $11 to $7.50: Jefferies

Oil in Focus | Morning News

JANUARY 22, 2016
US futures follow green arrows around the world with crude rallying above $30/bbl as a cold front blankets the US and Europe. Traders will remain cautious on news that US oil stockpiles have increased and the ever present fears of a continuing glut of crude around the world as Iran readies to flood the market with their oil. Baker-Hughes rig count set to be announced at 1PM EST. European markets find support on Mario Draghi's hint of more stimulus on inflation fears.

NEWS:

• SAP: raises outlook targets for 2017
• AMGN: the FDA approves combo treatment involving Amgen's Kyprolis
• AMGN: Repatha approved in Japan
• POT: Potash Corp mine closure may shelve Canpotex port plans, reports reuters
• AMZN: steps up European expansion plan, reports FT
• FB: Oppenheimer comes out positive on the company into earnings
• CMG: Chipotle tried to cover up food-borne illness outbreak, reports Time
• QRVO: Qorvo awarded major Samsung Galaxy S7 design, reports OTR Global
• HAIN: announces resignation of Chief Accounting Officer
• AAPL: Piper Jaffray out positive on Apple into the iPhone 7 launch, sees possible 50% upside by September: keeps overweight ratio and $179 pt
• GLNG: announces cooperative agreement with Schlumberger on the global development of greenfield, brownfield and stranded gas reserves
• SBUX: Piper out positive on the company, reiterating the stock as a "top pick"

THE ECONOMIC CALENDAR:

• 8:30AM: Chicago Fed National Activity Index
• 9:45AM: PMI Manufacturing Index Flash
• 10AM: Existing Home Sales
• 10AM: Leading Indicators
• 1PM: Baker-Hughes Rig Count

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• AXP: Q4 EPS of $1.23 beats by $0.10: revenue of $8.39B beats by $50M: revenue -7.6% y/y: solid guidance
• ISRG: Q4 EPS of $5.89 beats by $0.85: revenue of $676.5M beats by $21.18M: revenue 12.6% y/y
• MXIM: FQ2 EPS of $0.32 in-line: revenue of $510.83M beats by $5.75M: revenue -9.9% y/y: guides EPS below consensus
• RMD:FQ2 EPS of $0.69 beats by $0.03: revenue of $454.5M beats of $8.2M: revenue +7.5% y/y
• SBUX: FQ1 EPS of $0.46 beats by $0.01: revenue of $5.3B misses by $20M: revenue +11.9% y/y: quides Q2 below estimates
• SLB: Q4 EPS of $0.65 beats by $0.02: revenue of $7.74B misses by $60M: revenue -38/8% y/y
• WAL: Q4 EPS of $0.57 beats by $0.03: revenue of $152.82 misses by $6.06M: revenue +38.2% y/y

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• BID: estimates it will report revenue of $331M-$333M for Q4 beats $318M consensus: expects to report EPS of $1.11-$1.17 beats $0.84 consensus: announces elimination of dividend
• CFG: Q4 EPS of $0.42 in-line: revenue of $1.23B beats by $10M: revenue +4.2% y/y
• COL: FQ1 EPS of $1.21 may not be comparable to consensus of $1.00: revenue of $1.17B misses by $50M: revenue -4.9% y/y
• GE: Q4 EPS of $0.52 beats by $0.03: revenue of $30.29B: revenue -3.6% y/y: earnings fall in core industrial business
• LM:Q4 adjusted EPS of $1.45 may not be comparable to $0.75: revenue of $659.56 misses by $23.97M: revenue -8.3% y/y
• STI: Q4 EPS of $0.91 beats by $0.04: revenue of $2.05B beats by $10M: revenue +0.5% y/y
• SYF: Q4 EPS Of $0.65 beats by $0.02: net interest income of $3.21B in-line: 

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• CA: upgrade: neutral to buy: Mizuho: pt cut from $30 to $29
• JD: upgrade: neutral to buy: Nomura: pt raised from $27 to $35
• QCOM: upgrade: market perform to outperform: Northland: $62.50
• AVP: upgrade: neutral to overweight: Piper Jaffray: $8
• ACAD: upgrade: neutral to oveweight: Piper Jaffray: $39
• AVT: upgrade: neutral to buy: Longbow: $48
• LNC: upgrade: outperform to strong buy: Raymond James: $55
• MET: upgrade: market perform to strong buy: Raymond James: $56
• BMY: upgrade: hold to buy: Barenberg: $77
• CP: upgrade: sector perform to outperform: RBC Capital: pt cut from $189 to $179
• COLM: upgrade: neutral to outperform: Baird: pt cut from $72 to $60
• MAS: upgrade: neutral to outperform: Baird: $30

DOWNGRADES:

• RCKY: downgrade: outperform to neutral: Baird: pt cut from $16 to $11
• BIDU: downgrade: buy to neutral: Nomura: pt cut from $200 to $180
• SKX: downgrade: positive to neutral: Susquehanna: $30
• CNX: downgrade: overweight to equal weight: Morgan Stanley
• FELP: downgrade: overweight to equal weight: Morgan Stanley: $12
• OKE: downgrade: outperform to perform: Oppenheimer: $27

INITIATIONS:

• RAS: initiated: outperform: FBR Capital: $3.50
• CVS: initiated: outperform: Baird: $108
• WBA: initiated: outperform: Baird: $96
• CTRP: initiated: buy: Nomura: $50
• CGNX: initiated: outperform: Raymond James: $36

PRICE TARGET CHANGES:

• ISRG: pt raised from $525 to $550: Piper Jaffray
• ISRG: pt raised fro $600 to $620: Evercore
• ISRG: pt raised from $600 to $640: Stifel
• COH: pt raised from $32 to $34: Mizuho
• BC: pt raised from $49 to $51: RBC Capital
• WBX: pt cut from $38 to $35: RBC Capital
• UNP: pt cut from $93 to $82: RBC Capital
• UNP: pt cut from $95 to $78: Stifel
• TRV: pt cut from $120 to $118: RBC Capital
• RKUS: pt cut from $14 to $12: RBC Capital
• HBAN: pt cut from $13 to $12: RBC Capital
• HBAN: pt cut from $13 to $10.50: FBR Capital
• CP: pt cut from $147 to !42: Cowen
• UHS: pt cut from $166 to $140: Miuzho
• UAL: pt cut from $80 to $65: Cowen
• FEYE: pt cut from $32 to $25: Imperial Capital
• KATE: pt cut from $30 to $25: Mizuho
• KORS: pt cut from $42 to $40: Mizuho
• NOW: pt cut from $100 to $90: Mizuho
• KEY: pt cut from $15 to $12.50: FBR Capital
• MTG: pt cut from $11 to $7: FBR Capital
• MRK: pt cut from $67 to $58: Leerink
• MXIM: pt cut from $45 to $40: Stifel

Volatility | Morning News

JANUARY 21, 2016

US futures, off their overnight highs, point to a weaker opening at this hour as oil and Asian markets reverse their gains with the Shanghai closing down 3.25% and the Nikkei down 2.43%. Oil still under pressure with traders awaiting the EIA Petroleum Inventories at 10:30AM EST.  European markets still positive with the ECB announcing that they have left interest rates unchanged as traders await Draghi news conference at 8:30AM EST.

NEWS:

• INTC: Intel links up with China in server-chip venture, reports the WSJ
• ALKS: Alkermes' two phase 3 studies of ALK 5461 in MDD failed to meet primary efficacy endpoint, reports Streetinsider
• GOOG: GOOGL: Google debuts "Real Time Ads" to drive live engagements and compete with twitter, reports Venture Beat
• DKS: Sports Authority misses a debt payment which could lead to store closures
• AMZN: Amazon Prime launches restaurant delivery in Chicago
• SWN: Southwestern Energy to lay off 1100 workers amid oil slump, reports reuters
• ICON: announces sale of its stake in streetwear brands to Pharrell Williams

THE ECONOMIC CALENDAR:

• 8:30AM: Weekly Jobless Claims
• 8:30AM: Philly Fed Business Outlook
• 9:45AM: Bloomberg Consumer Comfort Index
• 10:30AM: EIA Natural Gas Inventory
• 11AM: EIA Petroleum Inventories
• 4:30PM: Money Supply and Fed Balance Sheet

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• FFIV: FQ1 EPS of $1.73 beats by $0.13: revenue of $489.5M beats by $3.99M: revenue +5.8% y/y: soft guidance
• KMI: Q4 EPS of -$0.29 may not be comparable to consensus of $0.18: revenue of $3.64B misses by $260M: revenue -7.8% y/y
• XLNX:FQ3 EPS of $0.49 in-line: revenue of $566M beats by $11.5M: revenue -4.6% y/y: solid guidance
• LOGI: FQ3 EPS of $0.41 beats by $0.07: revenue of $621.08M misses by $13.48M: revenue +2.8% y/y

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• VZ: Q4 EPS of $0.89 beats by $0.01: revenue of $34.25B beats by $190M: revenue +3.2% y/y
• TRV: Q4 EPS of $2.90 beats by $0.25: revenue of $5.86B misses by $70M: revenue +0.3% y/y
• HBAN: Q4 EPS of $0.21 in-line: revenue of $777M beats by $15.76M: revenue +8.8% y/y: guides FY16 revenue growth 4%-6% 
• BKU: Q4 EPS of $0.52 beats by $0.03: revenue of $232.25M beats by $8.02M: revenue +21.9% y/y
• MTG: Q4 EPS of $0.26 in-line: revenue of $257.9M misses by $0.29M: revenue +7.3% y/y
• PPG: Q4 EPS of $1.23 beats by $0.01: revenue of $3.7B misses by $60M: revenue -0.3% y/y
• KEY: Q4 EPS of $0.27 may not be comparable to consensus of $0.28: revenue of $1.1B beats by $10M: revenue +1.9% y/y
• UNP: Q4 EPS of $1.31 misses by $0.11: revenue of $5.21B misses by $240M: revenue -15.3% y/y: Q4 total revenue carloads down 9%
• BK: Q4 EPS Of $0.68 beats by $0.04: revenue of $3.7B misses by $50M: revenue +1.1% y/y
• ALK: Q4 EPS of $1.46 beats by $0.06: revenue of $1.3B in-line: revenue +5.3% y/y
• LUV: Q4 EPS of $0.90 in-line: revenue of $4.98B misses by $20M: revenue +7.6% y/y: raises dividend 38%
• BBT: Q4 EPS Of $0.68 misses by $0.01: revenue of $2.56B misses by $10M: revenue +7.1% y/y

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• AXP, CE, EGHT, ETFC, HBHC, ISRG, MXIM, PBCT, RMD, SBUX, SLB, WAL

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• SPWR: upgrade: neutral to buy: Janney Capital: $28
• FFIV: upgrade: sell to neutral: Citi: $95
• EW: upgrade: neutral to buy: SunTrust: $88
• FIT: upgrade: market perform to outperform: Raymond James: $25
• BIN: upgrade: sector perform to outperform: RBC Capital: pt raised from $30 to $33
• NTRS: upgrade: sector perform to outperform: RBC Capital: $75
• ZFGN: upgrade: sector perform to outperform: RBC Capital: pt raised from $7 to $21
• ZFGN: upgrade: market perform to outperform: FBR Capital: pt raised from $9 to $20
• PRA: upgrade: neutral to buy: SunTrust:$55
• WOOF: upgrade: market perform to outperform: William Blair
• KHC: upgrade: neutral to positive: Susquehanna: $98

DOWNGRADES:

• CCG: downgrade: buy to hold: Wunderlich: pt cut from $8 to $7
• OIS: downgrade: outperform to neutral: Baird: pt cut from $38 to $29
• NBR: downgrade: overweight to equal weight: Stephens: pt cut from $13 to $8

INITIATIONS:

• FLWS: initiated: buy: Wunderlich: $9
• NFX: initiated: outperform: Imperial Capital: $27
• JYNT: initiated: buy: Maxim Group: $8
• MMM: initiated: buy: Ciit: $166
• ITW: initiated: buy: Citi: $98
• IR: initiated: buy: Citi: $60
• EMR: initiated: sell: Citi: $41
• HON: initiated: buy: Citi: $122

PRICE TARGET CHANGES:

• LOCK: pt raised from $13 to $15: RBC Capital
• LULU: pt raised from $59 to $69: Susquehanna
• TIF: pt cut from $82 to $66: RBC Capital
• MS: pt cut from $28 to $35: RBC Capital
• BLK: pt cut from $384 to $367: RBC Capital
• CATY: pt cut from $36 to $33: RBC Capital
• CFR: pt cut from $74 to $60: RBC Capital
• GRUB: pt cut from $22 to $20: Cowen
• DECK: pt cut from $81 to $56: Citi
• FIT: pt cut from $60 to $35: Stifel
• TEL: pt cut from $74 to $68: Stifel
• GS: pt cut from $190 to $165: UBS

Can earnings save this market? | Morning News

JANUARY 20, 2016
US futures getting hit hard as the continued selloff in Asia and falling oil prices trigger a flight from risky assets.  Overnight, crude futures got slammed again as US oil falls to its lowest level since Sept 2003 on continued worries over a global glut.

NEWS:

• BHP: cuts FY16 iron ore guidance
• TASR: announces multiple orders of its next generation smart weapons
• THS: files to sell $750M in common stock
• SYN: announces that their drug SYN-010 for IBS-C was successful in second mid-stage study

THE ECONOMIC CALENDAR:

• 7AM: MBA Mortgage Applications
• 8:30AM: Consumer Price Index
• 8:30AM: Housing Starts
• 8:55AM: Redbook Chain Store Sales

SOME NOTABLE EARNINGS REPORTED AFTER THE CLOSE YESTERDAY:

• WWD: FQ1 EPS of $0.56 beats by $0.05: revenue of $445M misses by $7.81M: revenue -8.7% y/y
• CREE: FQ2 EPS of $0.30 beats by $0.06: revenue of $435.8M beats by $1.47M: revenue +5.5% y/y
• IBM: Q4 EPS of $4.84 beats by $0.03: revenue of $22.06B beats by $20M: revenue -8.5% y/y: soft guidance: guidesFY16 operating EPS at least $13.50, consensus $15.00
• NFLX: Q4 EPS of $0.07 beats by $0.05: revenue of $1.82B misses by $10M: revenue +23.0% y/y: 1.56M net subscribers vs consensus 1.37M:
• IBKR: Q4 EPS of $0.25 misses by $0.01: revenue of $271M misses by $56.65M: revenue +30.2% y/y
• AMD: Q4 EPS of -$0.10 in-line: revenue of $958M beats by $3.2M: revenue -22.7% y/y

SOME NOTABLE EARNINGS REPORTED BEFORE THE OPENING TODAY:

• AMTD: Q4 EPS of $0.39 beats by $0.03: revenue of $812M in-line: revenue -0.9% y/y
• ASML: Q4 EPS of €0.68 misses by €0.03: revenue of €1.43B misses by €160M: revenue -4.0% y/y
• EAT: FQ2 EPS of $0.78 beats by $0.03: revenue of $788.61 misses by $10.28M: revenue +6.2% y/y
• GS: Q4 EPS of $4.68 beats by $1.14: revenue of $7.27B beats by $200M: revenue -5.5% y/y
• NTRS: Q4 EPS of $0.99 beats by $0.08: revenue of $1.16B in-line: revenue +2.7% y/y
• TEL: FQ1 EPS of $0.84 beats by $0.08: revenue of $2.83B beats by $30M: revenue -7.2% y/y: guides FY16 adjusted EPS $3.80-4.20 vs consensus $3.95 

SOME NOTABLE EARNINGS TO BE REPORTED AFTER THE CLOSE TODAY:

• FFIV, KMI, LOGI, PTC, RJF, SLM, XLNX, BGG

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• SANM: upgrade: underperform to sector perform: RBC Capital: $18
• CMA: upgrade: market perform to outperform: FBR Capital:$48
• SHW: upgrade: neutral to buy: Goldman
• VOYA: upgrade: neutral to buy: BofA/Merrill: $41
• BIN: upgrade: underweight to overweight: Barclays: $27
• WFC: upgrade: neutral to positive: Susquehanna: $56
• LEN: upgrade: neutral to positive: Susquehanna: $53
• GCO: upgrade: neutral to overweight: Piper Jaffray: $65
• SCM: upgrade: neutral to outperform: Barid: pt cut from $12 to $11
• ANTM: upgrade: neutral to buy: Guggenheim: pt raised from $160 to $168 
• BSFT: upgrade: market perform to outperform: Wells Fargo: pt range $38-42

DOWNGRADES:

• RKUS: downgrade: buy to neutral: Guggenheim
• CUDA: downgrade: buy to neutral: Guggenheim
• UNVR: downgrade: buy to neutral: Goldman
• PRU: downgrade: buy to neutral: BofA/Merrill: $85
• PH: downgrade: buy to hold: Jefferies: pt cut from $115 to $95
• TKR: downgrade: buy to hold: Jefferies: pt cut from $35 to $27
• TIF: downgrade: buy to neutral: Goldman: pt cut from $96 to $71
• FTNT: downgrade: overweight to neutral: Piper Jaffray: pt cut from $50 to $30
• RDN; downgrade: outperform to neutral: Macquarie: pt cut from $16 to $12

INITIATIONS:

• MANT: initiated: underperform: Jefferies: $24
• EGL: initiated: buy: Jefferies: $39
• BAH: initiated: buy: Jefferies:$36
• GILD: initiated: outperform: Credit Suisse: $125
• CHRS: initiated: outperform: Credit Suisse: $25
• MESO: initiated:outperform: Credit Suisse: $10
• XNPT: initiated: outperform: Credit Suisse: $4
• VRTX: initiated: outperform: Credit Suisse: $151
• AMGN: initiated: outperform: Credit Suisse: $205
• CELG: initiated: outperform: Credit Suisse: $149
• INCY: initiated: outperform: Credit Suisse: $110
• BMRN: initiated: outperform: Credit Suisse: $110
• PTCT: initiated: outperform:Credit Suisse: $36
• REGN: initiated: neutral: Credit Suisse: $552

PRICE TARGET CHANGES:

• MDXG: pt raised from $11 to $14: First Analysis
• BIN: pt raised from $28 to $30: RBC Capital
• NFLX: pt raised from $119 to $126: Credit Suisse
• NFLX: pt raised from $105 to $120: Jefferies
• NFLX: pt raised from $137 to $141: JP Morgan
• NFLX: pt raised from $115 to $120: Mizuho
• NFLX: pt cut from $138 to $125: FBR Capital
• NFLX: pt cut from $165 to $155: Pivotal Research
• FEYE: pt cut from $32 to $21: Wunderlich
• IBM: pt cut from $125 to $110: Credit Suisse
• WTFC: pt cut from $58 to $50: RBC Capital
• WFT: pt cut from $11 to $9: RBC Capital
• SYMC: pt cut from $24 to $23: RBC Capital
• JNPR: pt cut from $35 to $33: RBC Capital
• OAS: pt cut from $18 to $12: Topeka Capital
• TIF: pt cut from $100 to $80: Telsey Advisory
• MS: pt cut fro $42 to $34: UBS
• HALO: pt cut from $28 to $22: UBS

China GDP | Morning News

JANUARY 19. 2016

US futures spike higher on the heels of a 3.2% rise in the Shanghai which raises hopes for a further easing of the monetary policy. Earnings season turns up the heat this week. A number of banks report this morning as bulls and bears duke it out with a key level of the S&P at the August 25th low of 1867.61. Overnight, oil found support after selling off yesterday with the lifting of sanctions on Iran that many feared could send a deluge of crude to the already oversupplied market.

NEWS:

• PM: Thailand changes Philip Morris with tax evasion, reports the WSJ
• PEGI: announces completion of a 150MW Amazon wind farm in Indiana
• TWTR: announces widespread outages overnight
• TIF: cuts guidance and staff after weak holiday season
• V: Sam's Club to accept Visa cards as of Feb 1, 2016
• POT: announces suspension of potash operations in New Brunswick
• NRZ: announces $200M repurchase program
• USO: IEA cites unseasonably warm weather and rising supply will keep the pressure on oil until the end of 2016

THE ECONOMIC CALENDAR:

• 10AM: NAHB Housing Market Index
• 4PM: Treasury International Capital

SOME NOTABLE EARNINGS REPORTED BEFORE THE OPENING TODAY:

• UNH: Q4 EPS of $1.40 beats by $0.02: revenue of $43.6B beats by $370M: revenue +30.4% y/y: affirms FY16 EPS of $7.60-7.80 vs consensus $7.72
• EDU: FG2 EPS of $0.07 beats by $0.07: revenue of $278.1M beats by $7.47M: revenue +17.7% y/y
• MS: Q4 EPS (excluding DVA) of $0.43 beats by $0.10: revenue (excluding DVA) of $7.9B beats by $310M: revenue -1.4% y/y
• WCN: Q4 EPS of $0.48 beats by $0.01: revenue of $531.9M beats by $10.92M: revenue +1.1% y/y: Waste Connections and Progressive Waste to merge in all stock deal
• FHN: Q4 EPS of $0.20 may not be comparable to consensus of $0.21: revenue of $297.44M beats by $5.37M: revenue +6.7% y/y
• MTB: Q4 EPS of $2.09 beats by $0.13: revenue of $1.15B meioses by $90M: revenue +1.8% y/y
• CMA: Q4 EPS of $0.71 beats by $0.02: revenue of $703M beats by $10.61M: revenue +9.8% y/y
• BAC: Q4 EPS of $0.28 beats by $0.02: revenue of $19.53B misses by $250M: revenue +4.3% y/y
• DAL: Q4 EPS of $1.18 misses by $0.01: revenue of $9.5B misses by $110M: revenue -1.6% y/y

SOME NOTABLE EARNINGS TO BE REPORTED AFTER THE CLOSE TODAY:

• IBM, NFLX, WWD, CREE, AMD, FULT, IBKR, ADTN

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• AZN: upgrade: underweight to equal weight: Barclays: $50
• REGN: upgrade: neutral to buy: Roth Capital
• EV: upgrade: negative to neutral: Susquehanna: $28
• AMED: upgrade: neutral to buy: Mizuho: pt raised from $45 to $49
• DHI: upgrade: neutral to buy: Sterne Agee: $33
• LEN: upgrade: neutral to buy: Sterne Agee: $52
• NYCB: upgrade: underperform to market preform: FBR Capital: $15
• KITE: upgrade: market perform to outperform: FBR Capital: $75
• SHOP: upgrade: equal weight to overweight: Morgan Stanley: $34
• MCHP: upgrade: equal weight to overweight: Morgan Stanley: $55
• ALL: upgrade: neutral to outperform: Macquarie
• BECN: upgrade: market perform to outperform: William Blair:
• SHAK: upgrade: market perform to outperform: William Blair: (35% short interest)
• AAN: upgrade: market perform to strong buy: Raymond James
• CHL: upgrade: hold to buy: Deutsche Bank
• FSC: upgrade: market perform to outperform: Wedbush
• P: upgrade: sell to neutral: BTIG
• SWKS: upgrade: hold to buy: Needham: $73
• PENN: upgrade: market perform to outperform: BTIG Research: $27
• BURL: upgrade: hold to buy: BB&T
• KORS: upgrade: underweight to neutral: Piper Jaffray: $38
• RF: upgrade: neutral to overweight; Piper Jaffray: $11
• EXEL; upgrade: market perform to outperform: Leerink: pt raised from $6 to $7

DOWNGRADES:

• CTXS: downgrade: equal weight to underweight: Morgan Stanley: $70
• SRPT: downgrade: outperform to sector perform: pt cut from $62 to $15
• EXRX: downgrade: outperform to market perform: Leerink: pt cut from $95 to $80
• MKC: downgrade: neutral to underweight: JP Morgan: $76
• ACGL: downgrade: outperform to neutral: Macquarie
• DNKN: downgrade: outperform to market perform: William Blair

INITIATIONS:

• ADMS: initiated:neutral: Mizuho: $26
• CSRA: initiated: outperform: RBC Capital: $37

PRICE TARGET CHANGES:

• CMRX: pt raised from $11 to $18: Piper Jaffray
• MET: pt raised from $61 to $65: RBC Capital
• USB: pt cut from $48 to $46: RBC Capital
• C: pt cut from $65 to $60: RBC Capital
• NTCT: pt cut from $40 to $33; RBC Capital
• COG: pt cut from $34 to $25: Topeka Capital
• LGF: pt cut from $44 to $43: Topeka Capital
• MU: pt cut from $15 to $12: Mizuho
• STX: pt cut from $38 to $32: Mizuho
• WDC: pt cut from $69 to $51: Mizuho
• HDP: pt cut from $31 to $25: Mizuho
• HPT: pt cut from $34 to 430: FBR Capital
• SNAK: pt cut from $12 to $9: Canaccord
• FRPT: pt cut from $11 to $9: Canaccord
• CLSN: pt cut from $12 to $9: Maxim Group
• CHEK: pt cut from $18 to $11: Maxim Group
• WFC: pt cut from $55 to $54: Compass Point
• DIS: pt cut from $130 to $110: Stifel

A Hurricane in the Atlantic and One in the Stock Market

JANUARY 16, 2016

BE PREPARED and BE DISCIPLINED

Two unusual events took place in the last couple of weeks. One was the highly unusual formation of a hurricane in the Atlantic Ocean 6 months before the start of hurricane season. It was not since 1938 that meteorologists have witnessed such an event, before Hiroshima, the Vietnam War, before computers and space walks. The other event that took place was another type of storm. In the first 10 days of the year, US stocks saw the worse start to a calendar year ever.

Surviving one is pretty much the same as surviving the other.

First, educate yourself. Always, always, always be prepared. Education doesn't stop at the last book you read or last weeks charts. Come into the day prepared with your forecast of what you believe to be the most likely scenario. But, like a hurricane, have several plans in case your forecast in wrong. You don't want to be the person left on the rooftop or sleeping in the Superdome. Don't assume anything. What the market looks like at 6AM, 8AM or 9:30AM, isn't going to tell you what it will look like at 4PM.

And now that you have come into the day prepared, prepare to be disciplined. If the storm isn't unfolding as you had planned, get out. Get out of New Orleans or get out of your trade whether it be long or short. Watch your levels, your pivots and the technicals that you have already charted. Never get into a trade without having a plan. Know why are you getting in and have your exit plan before you enter the trade.

Never assume another storm isn't going to hit the market tomorrow. Some storms are going to be category 5 and others will dissipate without ever touching land.



I pause to remember my youngest brother, Patrick, who would have turned 49 today. #heavenssweetestangel

China and Oil Pressures Markets | Morning News

JANUARY 15, 2016
US futures spike lower with global markets comfortably in the red with the Shanghai entering bear territory even as China pumps $15B into the market. Overnight, oil broke the $30 mark as the commodity feels the pressure of oversupply worries as the Iranian sanctions are set to expire as soon as this weekend.

NEWS:

• BHP: takes $7.2B write down on the value of its US shale assets, reports The Guardian
• ADI: issues FQ1 warning
• RDN: launches $100M buyback program
• FB: German court calls Facebook's Find-a-Friend function illegal, reports the WSJ
• ATVI: TTWO: EA: GME: NPD reports that December saw 1.5% decrease in sales across physical software, hardware and accessories: video game software drops 3%
• AMZN: expands logistics reach with move into ocean shipping, reports reuters
• AAPL; Apple may be on hook for $8B in taxes after Europe Probe, reports Bloomberg
• NKE: extends sponsorship with Ohio State
• SRPT: FDA expresses "considerable doubt" regarding Serepta's DMD drug
• LOXO: LOXO-101 designated an orphan drug in Europe for soft tissue sarcoma
• GE: announces deal to sell its appliance business to China's Haier Group for $5.4B, reports the WSJ

THE ECONOMIC CALENDAR:

• 8:30AM: Producer Price Index: expectation -0.2%: Actual -0.2%
• 8:30AM: Core PPI: expectation 0.0%: Actual 0.1%
• 8:30AM: Retail Sales: expectation 0.2%: Actual -0.1%
• 8.30AM: Retail Sales ex-auto: expectation 0.2%: Actual -0.1%
• 8:30AM: Empire State Manufacturing Survey: expectation -5.1: Actual -19.4
• 9:15AM: Industrial Production: expectation -0.2%: Actual -0.4%
• 9:15AM: Capacity Utilization: expectation 76.9%: Actual 76.5
• 10AM: Reuters/UofM Consumer Sentiment: expectation 92.0: Actual 93.3
• 10AM: Business Inventories: expectation -0.1%: Actual -0.2%
• 1PM: Baker-Hughes Rig Count: Actual oil rig count down by 1

SOME NOTABLE EARNINGS REPORTED AFTER THE CLOSE YESTERDAY:

• INTC: Q4 EPS of $0.74 beats by $0.11: revenue of $14.91B beats by $110M: revenue +1.3% y/y: solid revenue guidance: server-chip sales fall short
• OZRK: Q4 EPS of $0.57 beats by $0.01: revenue of $137.0M beats by $8.28M: revenue +28.6% y/y

SOME NOTABLE EARNINGS REPORTED BEFORE THE OPENING TODAY:

• BLK: Q4 EPS of $4.75 misses by $0.06: revenue of $2.86B beats by $20M: revenue +2.9% y/y: raises quarterly dividend by 5% to $2.29/share
• C: Q4 EPS (excl. CVA/DVA) of $1.06 beats by $0.01: revenue (excl. CVA/DVA) of $18.64B beats by $770M: revenue +4.2% y/y
• WFC: Q4 EPS of $1.03 beats by $0.01: revenue of $21.6B misses by $200M: revenue +0.7% y/y
• FAST: Q4 EPS of $0.39 misses by $0.01: revenue of $922.79M in-line: revenue -0.4% y/y:
• PNC:Q4 EPS of $1.87 beats by $0.07: revenue of $385B beats by $60M: revenue -2.5% y/y
• RF: Q4 EPS of $0.21 beats by $0.01: revenue of $1.36B beats by $30M: revenue +4.5% y/y
• USB: Q4 EPS of $0.80 beats by $0.01: revenue of $5.21B beats by $90M: revenue +0.8% y.y

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• GILD: upgrade: underperform to neutral: BofA/Merrill: $107
• LEN: upgrade: neutral to buy: UBS: $50
• DPM: market perform to outperform: Wells Fargo: pt range but from $29-$32 to $27-$30
• ONDK: upgrade: sell to neutral: Compass Point: $8.50
• MCHP: upgrade: hold to buy: Needham: $60
• NOK: upgrade: hold to buy: Argus: $12
• WWAV: upgrade: equal weight to overweight: Barclays: $45
• PLT: upgrade: neutral to overweight: JP Morgan
• AEM: upgrade: market perform to outperform: BMO Capital: pt raised from $30 to $36
• EA: upgrade: neutral to buy: BofA/Merrill: $81
• MAS: upgrade; neutral to buy: UBS:
• URI: upgrade: neutral to buy: Longbow
• HEES: upgrade: neutral to buy: Longbow
• CL: upgrade: neutral to outperform: BNP Paribas
• MKTO: upgrade: sector perform to outperform: RBC Capital: $34
• SEP: upgrade: sector perform to outperform: RBC Capital: $58
• SHPG: upgrade: neutral to buy: BofA/Merrill
• JPM: upgrade: neutral to overweight: Atlantic Equities
• PBF: upgrade: equal weight to overweight: Morgan Stanley
• MOS: upgrade: sell to neutral: Goldman: pt cut from $34 to $28

DOWNGRADES:

• DHI: downgrade: buy to neutral: UBS: $29
• TXTR: downgrade: buy to sell: Benchmark Company: pt cut from $32 to $14
• PAA: downgrade: outperform to sector perform: RBC Capital: pt cut from $36 to $23
• GRMN: downgrade: perform to underperform: Credit Suisse: $32
• GEL: downgrade: outperform to market perform: Wells Fargo: pt range cut from $45-$50 to $31-$35
• SMLP: downgrade: outperform to market perform: Wells Fargo: pt range cut from $21-$24 to $17-$21
• PRO: downgrade: buy to hold: Stifel
• TRK: downgrade: outperform to neutral: Macquarie
• ERIC: downgrade: buy to hold: Deutsche Bank
• NVS: downgrade: equal weight to underweight: Barclays
• DIS: downgrade: equal weight to underweight: Barclays: pt cut from $98 to $89

INITIATIONS:

• EBAY: initiated: positive: Susquehanna: $34
• AMZN: initiated: positive: Susquehanna: $900
• P: initiated: neutral: Susquehanna: $11
• IACI: initiated: positive: Susquehanna: $75
• FMER: initiated: market perform: Hovde Group: $18

PRICE TARGET CHANGES:

• LULU: pt raised from $43 to $52: Wolfe Research
• EA: pt raised from $79 to $81: Cowen
• XLRN: pt raised from $60 to $63: FBR Capital
• INTC: pt cut from $48 to $36: Topeka Capital
• INTC: pt cut from $35 to $33: RBC Capital
• IBM: pt cut from $150 to $145: RBC Capital
• HAIN: pt cut from $47 to $42: RBC Capital
• HOG: pt cut from $51 to $44: RBC Capital
• PII: pt cut from $93 to $88: RBC Capital
• WDC: pt cut from $94 to $76: RBC Capital
• HAIN: pt cut from $47 to $42: RBC Capital
• TEL: pt cut from $70 to $65: RBC Capital
• ST: pt cut from $50 to $45: RBC Capital
• STX: pt cut from $47 to $40: RBC Capital
• BBY: pt cut from $45 to $38: Telsey Advisory
• BB: pt cut from $33 to $30: RBC Capital
• BC: pt cut from $61 to $49: RBC Capital
• CLS: pt cut from $14 to $12: RBC Capital
• LBTYA: pt cut from $61 to $48: Pivotal Research
• APH: pt cut from $60 to $55: RBC Capital
• ADI: pt cut from $69 to $58: RBC Capital
• ASNA: pt cut from $18 to $15: RBC Capital
• MCK: pt cut from $210 to $193: Mizuho
• KEX: pt cut from $95 to $66: Stephens

BoE policy unchanged |Morning News

JANUARY 14, 2016

US futures up modestly at this hour as most global markets find more selling again today driven by renewed worries over a lagging Chinese economy, a weak energy market and political tensions around the world. BoE leaves interest rates, quantitative easing plan unchanged.

NEWS:

• RCI: BT: Rogers Communications and BT Sport are partnering with the NBA to deliver the league's first live game presented in 4K 
• BBY: Best Buy reports holiday period domestic SSS down 1.2%: reports holiday period online revenue up 12.6%
• SUNE: SunEdison Solar Parking Lots to Save 25 California Schools More Than $30 Million, reports prnewswire
• NVS: Norvartis named Top Pharma Global Pick at Jefferies
• CMG: Deutsche Bank out negative on Chipotle, reiterating a hold and $400 pt (NOTE: the stock was upgraded to buy at CLSA this morning)

THE ECONOMIC CALENDAR:

• 8:15AM: Fed's Bullard speaks on "US Economy and Monetary Policy"
• 8:30AM: Weekly Jobless Claims
• 8:30AM: Import/Export Prices
• 9:45AM: Bloomberg Consumer Comfort Index
• 10:30AM: EIA Natural Gas Inventory
• 1PM: $13B, 30 Year Note Auction
• 4:30PM: Money Supply and Fed Balance Sheet

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• JPM: Q4 EPS of $1.32 beats by $0.07: revenue of $23.7B beats by $81.0M: revenue =0.6% y/y
• INFY: FQ# EPS of $0.23 in-line: revenue of $2.41B beats by $40.0M: revenue +8.5% y/y: raises guidance
• WNS: FQ3 EPS of $0.50 beats by $0.03: revenue of $135.9M misses by $0.8M: revenue +5.8% y/y 
• FUL: FQ3 EPS of $0.69 in-line: revenue of $548.1M beas by $6.2M: revenue +0.1% y/y

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• INTC, OZRK

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• RTEC: upgrade: hold to buy: Stifel: $15
• FANG: upgrade: market perform to outperform: Cowen
• USB: upgrade: neutral to outperform: Baird: $45
• ALLE: upgrade: in-line to outperform: Imperial Capital: $68
• BKU: upgrade: market perform to outperform: BMO Capital
• MET: upgrade: neutral to outperform: Macquarie
• CSX: upgrade: hold to buy: BBT: $27
• NGLS: upgrade: hold to by: Jefferies: $16
• TRGP: upgrade: hold to buy: Jefferies
• BHP: upgrade: neutral to buy: Citi: $18
• MTN: upgrade: neutral to buy: MKM Partners

DOWNGRADES:

• SVU: downgrade: outperform to market perform: Telsey Advisory: pt cut from $10 to $6
• SVU: downgrade: buy to hold: Deutsche Bank: pt cut from $8 to $6
• AA; downgrade: buy to hold: Argus
• YELP: downgrade: neutral to sell: B Riley: pt cut from $21 to $15
• MAR: downgrade: buy to neutral: MKM Partners: pt cut from $100 to $61
• STAY: downgrade: buy to neutral: MKM Partners
• BEL: downgrade: buy to sell: MKM Partners
• CHH: downgrade: neutral to sell: MKM Partners: pt cut from $55 to $40
• HLT: downgrade: buy to sell: MKM Partners
• H: downgrade: buy to sell: MKM Partners: 
• DFS: downgrade: overweight to neutral: JP Morgan: pt cut from $60 to $56
• NVDA: downgrade: equal weight to underweight: Barclays: pt raised from $23 to $25
• FFIV: downgrade: equal weight to underweight: Barclays: pt cut from $123 to $98

INITIATIONS:

• FDC: initiated: buy: Stifel: $18
• ADBE: initiated: buy: Dougherty: $114
• XTLY: initiated: buy: Dougherty: $14
• ACU: initiated: market perform: Avondale: $23
• VA: initiated: underweight: JP Morgan: $31
• SAVE: initiated: overweight; JP Morgan: $52
• NFLX: initiated: buy: Drexel Hamilton: $150
• DIS: initiated: buy: Drexel Hamilton: $117
• CNK: initiated: buy: Drexel Hamilton: $41
• RGC: initiated: buy: Drexel Hamilton: $21

PRICE TARGET CHANGES:

• ES: pt raised from $52 to $54: Mizuho
• QCOM: pt cut from $64 to $51: Mizuho
• QCOM: pt cut from $80 to $70: Argus
• KND: pt cut from $12.75 to $9: Mizuho
• GPRO: pt cut from $15 to $9: Piper Jaffray
• GPRO: pt cut from $45 to $21: JP Morgan
• GPRO: pt cut from $39 to $20:Northland
• SVU: pt cut from $8 to $7: RBC Capital
• LBTYA: pt cut from $58 to $52: RBC Capital
• MGA: pt cut from $64 to $62: RBC Capital
• COF: pt cut from $88 to $85: RBC Capital
• FFIV: pt cut from $115 to $112: RBC Capital
• HAIN: pt cut from $54 to $52: Wunderlich
• CNK; pt cut from $50 to $40: Wunderlich
• FANG: pt cut from $85 to $75: Wunderlich
• CSK: pt cut from $28 to $25: Cowen
• CSK: pt cut from $31 to $27: RBC Capital

Beige Book | Morning News

JANUARY 13, 2016
US futures point to a higher opening at this hour after global markets were lifted by better than expected economic data out of China, even as the Shanghai failed to recover on the news and closed down 2.41%.  Overnight, crude rose for the first time in eight days with US oil further away from the closely watched $30 level breached last session following data from the American Petroleum Institute. All eyes will be on the EIA Petroleum Inventories due out at 10:30AM EST.

NEWS:

• CMG: to speak at the ICR Conference today at 1:30PM EST
• FANG: files to sell 2.25M shares
• FDX: UPS: AMZN: FedEx expands into Europe
• MET: announces plans to spin off its US retail business
• AGN: announces launch of a $432M share buyback plan and plans to cut costs and improve profitability
• GE: announces plans to cut 6500 jobs in Europe at ex-Alstom units
• GM: lifts its outlook for FY16 EPS from $5.00-5.50 to $5.25-5.75 vs consensus $5.44
• GM: boosts its buyback allowance by $4B 
• GM: announces increase in dividend to $0.38/share
• GOOG: GOOGL: Alphabet appoints new virtual-reality chief, reports the WSJ
• EA: announces launch of new subscription plan for PC gamers, reports the WSJ
• GILD: US FTC clears Galapagos-Gilead collaboration to develop filgotinib

THE ECONOMIC CALENDAR:

• 7AM: MBA Mortgage Applications
• 10AM: Atlanta Fed's Business Inflation Expectations
• 10:30AM: EIA Petroleum Inventories
• 1PM: $21B 10 Year Note Auction
• 2PM: Fed's Beige Book
• 2PM: Treasury Budget

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• MTRX: upgrade: neutral to buy: Citi:
• LNG: upgrade: neutral to buy: Citi:$47
• CNI: upgrade: hold to buy: Canaccord: pt cut from C$86 to C$84
• PHM: upgrade: equal weight to overweight: JP Morgan: $22.50
• QCOM: upgrade: neutral to positive: Susquehanna: pt raised from $53 to $60
• MSFT: upgrade: equal weight to overweight: Morgan Stanley: $66
• CME: upgrade: equal weight to overweight: JP Morgan: $96
• TYC: upgrade: sell to neutral: UBS: $31
• FIVE: upgrade: hold to buy: Stifel: $42
• PVTB: upgrade: sector perform to outperform: RBC Capital: $44
• ESCA: upgrade: hold to buy: Wunderlich: $18
• CSOD: upgrade: market perform to outperform: FBR Capital: $42

DOWNGRADES:

• CFR: downgrade: equal weight to underweight: Barclays: $6 
• CHD: downgrade: neutral to sell: Goldman Sachs
• DOV: downgrade: hold to sell: UBS: $52
• AXP: downgrade: buy to neutral: Goldman Sachs
• JNS: downgrade: overweight to neutral: JP Morgan: $15
• DPS: downgrade: neutral to sell: Goldman: $87

INITIATIONS:

• TWTR: initiated: neutral: Mizuho: $21
• PYPL: reinitiated: buy: Mizuho: $40
• AXP: initiated: neutral: DA Davidson: $70
• SYF: initiated: buy: DA Davidson: $37
• DFS: initiated: buy: DA Davidson: $63
• COF: initiated: neutral: DA Davidson: $70
• AMSC: initiated: buy: Rodman & Renshaw: $10
• X: assumed: hold: Jefferies: pt cut from $12.75 to $6.50

PRICE TARGET CHANGES:

• MXL: pt raised from $21 to $25: Roth Capital
• SWKS: pt cut from $120 to $90: Stephens
• HAIN: pt cut from $72 to $63: Maxim Group
• IHS: pt cut from $136 to $123: Stifel
• GME: pt cut from $42 to $38: Telsey Advisory
• HTGC: pt cut from $15 to $14: RBC Capital
• TSCO: pt cut from $105 to $100: Telsey Advisory
• TSCO: pt cut from $94 to $90: RBC Capital
• FANG: pt cut from $92 to $90: Topeka Capital