ADP | Morning News

FEBRUARY 03.2016
US futures point to a modestly higher opening at this 7AM hour as the volatile oil market finds support and trades higher in front of EIA petroleum inventories at 10:30AM EST. Overnight, global markets were mostly lower around the world with Asian markets clearly in the red, lead by Japanese shares, while most European markets struggle in negative territory. Traders sift through earnings while awaiting some important economic data including ADP jobs report at 8:15AM and ISM non-manufacturing at 10AM.

NEWS:

• PACB: rumor out that Roche Holding eyes acquisition of Pacific Bioscience, reports reuters
• AMZN: plans in place to launch hundreds of physical book stores
• WFM: Goldman reports 6% passive stake in Whole Foods
• MRVL: Starboard reports 6.7% stake in Marvell Technology
• MSFT: shipped 6M tablets in 2015, reports DigiTimes
• MSFT: HPQ: Citi cuts FY16 PC estimates from 6% to 2%
• SYT: ChemChina offers $43B for Syngenta
• OXGN: FDA approves protocol for FOCUX phase 2/3 study for the treatment of ovarian cancer
• XON: Bill Miller announces that Intrexon is his second largest position, reports on CNBC
• LOW: Lowe's announces plans to acquire Canadian chain Rona for $2.3B
• GOOG: GOOGL: YouTube developing live 360 degree video capability, reports The Verge
• CVX: APA: CLR: DVN: EOG: HES: MRO: MUR: SWN: S & P ratings cut one notch on several oil companies, including privately held Hunt Oil

THE ECONOMIC CALENDAR:

• 7AM: MBA Mortgage Applications
• 8:15AM: ADP Jobs Reports : ACTUAL 205K vs 190K consensus and 257K prior reading (revised to 267K)
• 8:30AM: Gallup US Job Creation Index
• 8:30AM: Treasury Refunding Quarterly Announcement
• 9:45AM: PMI Services Index
• 10AM: ISM Non-Manufacturing Index
• 10:30AM: EIA Petroleum Inventories

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• CMG: Q4 EPS of $2.17 beats by $0.31: revenue of $997.51M misses by $12.49M: revenue -6.8% y/y: guides Q1 EPS flat vs consensus $2.08: announces $300M share repurchase authorization: served subpoena broadening criminal investgation
• GILD: Q4 EPS of $3.32 beats by $0.32: revenue of $8.51B beats by $380M: revenue +16.4% y/y: announces $12B buyback authorization: raises dividend: weak revenue guidance
• FISV: Q4 EPS of $1.00 in-line: revenue of $1.37B misses by $30M: revenue +3.8% y/y: guides in-line
• QGEN: Q4 EPS of $0.31 misses by $0.01: revenue of $348.5M misses by $3.17M: revenue -3.3% y/y: guides earnings below estimates
• BOOT: Q4 EPS of $0.45 beats by $0.01: revenue of $194M beats by $1.87M: revenue +48.6% y/y: weak guidance
• ULTI: Q4 EPS of $0.83 beats by $0.10: revenue of $170.65M beats by $1.56M; revenue +26.0% y/y: guides revenue above consensus
• EW: Q4 EPS of $0.62 beats by $0.01: revenue of $671.1M beats by $22.36M: revenue +8.6% y/y: raises guidance above consensus
• SLGN: Q4 EPS of $0.48 beats by $0.06: revenue of $829.6M misses by $48.87M: revenue -8.9% y/y: guides FY16 adjusted EPS $2.80-$3.00 vs consensus $3.01
• ILMN: Q4 EPS of $0.81 misses by $0.01: revenue of $592M beats by $6.82M: revenue +15.5% y/y: guides FY16 EPS below consensus
• OCLR: FQ2 EPS of $0.03 beats by $0.04: revenue of $94.13M beats by $2.64M: revenue +8.4% y/y: guides revenue above consensus
• AFG: Q4 EPS of $1.52 misses by $0.06: revenue of $1.12B beats by $20M: revenue +5.7% y/y: guides in-line
• YHOO: Q4 EPS of $0.13 in-line: revenue of $1B misses by $190M: revenue -15.3% y/y: announces plans to cut 15% of workforce: paid clicks -10% y/y: soft revenue guidance
• ATW: Q4 EPS of $1.60 beats by $0.47: revenue of $307.82 beats by $4.14M: revenue -12.5% y/y

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• EVR: Q4 EPS of $1.22 beats by $0.52: revenue of $404M misses by $56.74M: revenue +25.9% y/y
• GM: Q4 EPS of $1.39 beats by $0.17: revenue of $39.6B beats by $570M: revenue -0.1% y/y: reaffirms FY16 adjusted EPS guidance $5.25-$5.75 vs consensus $5.46
• CBOE: Q4 EPS of $0.59 beats by $0.04: revenue of $156M beats by $3.69M: revenue -6.3% y/y
• LG: FQ1 EPS of $1.04 misses by $0.07: revenue of $399.4M misses by $247.72M:revenue -35.5% y/y
• ADP: FQ2 EPS of $0.72 in-line: revenue $2.81B in-line: revenue +5.6% y/y
• IP: Q4 EPS of $0.87 beats by $0.05: revenue of $5.44B misses by $240M: revenue -8.4% y/y
• CMCSA: Q4 EPS of $0.81 misses by $0.01: revenue of $19.08B beats by $320M; revenue +7.6% y/y: raises annual dividend 10% to $1.10: raises buyback program to $10B, expects to buy $5B in FY16
• NOV: Q4 EPS of $0.23 misses by $0.21: revenue of $2.72B misses by $320M: revenue -52.4% y/y
• CBG: Q4 EPS of $0.81 beats by $0.03: revenue of $3.7B beats by $310M: revenue +32.6% y/y
• MRK: Q4 EPS of $0.93 beats by $0.02: revenue of $10.21B misses by $140M: revenue -2.6% y/y
• ABB: Q4 EPS of $0.35 beats by $0.03: revenue of $9.24B misses by $200M: revenue -10.7% y/y
• SO: Q4 EPS of $0.44 beats by $0.01: revenue of $3.61B misses by $860M: revenue -10.2% y/y
• KR: Q4 EPS of $0.59 beats by $01.6: revenue of $714.4M beats by $46.64M: revenue -6.3% y/y: guides FY16 earnings below estimates
• BDX: FQ1 EPS of $1.96 beats by $0.12: revenue of $2.99B misses by $40M: revenue +45.9% y/y: reaffirms FY16 adjusted EPS guidance of $8.37-$8.44 vs consensus $8.41
• ENR: FQ1 EPS of $1.16 beats by $0.46: revenue of $506.8M beats by $46.06M: revenue +1.1% y/y
• KMT: FQ2 EPS of $0.14 beats by $0.02: revenue of $524.02M beats by $21.98M: revenue -22.4% y/y: cuts FY16 adjusted EPS to $0.08-$1.05 from $1.50-$1.70
• ALXN: Q4 EPS of $1.13 beats by $0.03: revenue of $700.87M misses by $1.82M: revenue +16.9% y/y
• ETN: Q4 EPS of $1.17 beats by $0.07: revenue of $5.06B misses by $40M: revenue -9.0% y/y: increases 3 yr restructuring program to $400M: guides FY16 organic revenue to decline 2-4%
• SE: Q4 EPS of $0.28 misses by $0.04: revenue of $1.32B misses by $220M: revenue -17.5% y/y
• MDLZ: Q4 EPS of $046 misses by $0.02: revenue of $7.4B beats by $130M; revenue -16.2% y/y
• MAN: Q4 EPS of $1.66 beats by $0.14: revenue of $5B misses by $10M: revenue -2.3% y/y: guides Q1 EPS $0.87-$0.95 vs consensus $0.93

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• ALL, BDN, BWLD, BXP, CACI, CBL, CCK, DHT, EPM, GPRO, HIVE, IMPV, LCI, LNC, MAC, MDU, MET, MTRX, MWA, NE, NXPI, OSUR, PACB, PCL, PMT, RE, RGLD, SFLY, TIS, TMK, TTWO, TWO, WFT, YUM

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• MNK: upgrade: neutral to buy: Mizuho: pt raised from $72 to $78
• KORS: upgrade: sell to neutral: Citi
• BOOT: upgrade: neutral to buy: B Riley
• ADT: upgrade: underweight to equal weight: Morgan Stanley: pt cut from $32 to $28
• BMI: upgrade: neural to outperform: Baird: pt raised from $59 to $63
• CMG: upgrade: market perform to outperform: Wells Fargo: pt range raised from $420-$450 to $500-$530
• SYNT: upgrade: hold to buy: Maxim Group: $58
• ESIO: upgrade: hold to buy: Needham: $8
• PSG: upgrade: neutral to outperform: Wedbush: pt raised from $8.50 to $9
• VLY: upgrade: neutral to overweight: Piper Jaffray: $10
• INTC: upgrade: sell to neutral: Goldman Sachs: $31
• SWKS: upgrade: neutral to buy: Goldman Sachs: $80
• H: upgrade: market perform to outperform: Wells Fargo
• DOW: upgrade: outperform to top pick: RBC Capital: pt raised from $51 to $60

DOWNGRADES:

• LBY: top pick to outperform: RBC Capital: pt cut from $105 to $95
• XEL: downgrade: neutral to sell: UBS
• FCX: downgrade: buy to hold: Argus
• MS: downgrade: neutral to underweight: Atlantic Equities: $27
• SPKE: downgrade: outperform to neutral: Baird: pt raised from $20 to $23
• AIG: downgrade: outperform to market perform: Blair
• SGY: downgrade: outperform to in-line: Imperial Capital: pt cut from $6 to $2.75
• GST: downgrade: outperform to in-line: Imperial Capital: pt cut from $2.00 to $1.20
• WLL: downgrade: buy to hold: Stifel
• MAR: downgrade: outperform to market perform: Wells Fargo: pt range cut from $80-$82 to $64-$67
• YHOO: downgrade: neutral to sell: Rosenblatt
• SPKE: downgrade: outperform to neutral: Baird: pt raised from $20 to $23
• UBS: downgrade: outperform to sector perform: RBC Capital

INITIATIONS:

• TSLA: initiated: sell: Berenburg: $165
• GILD: initiated: buy: Standpoint Research: $110
• DYNT: initiated: buy: Ladenburg Thalmann: $8
• CVS: initiated: overweight: Atlantic Equities: $114

PRICE TARGET CHANGES:

• KORS: pt raised from $46 to $55: Telsey Advisory Group
• VCRA: pt raised from $15 to $17: Cowen
• BAX: pt raised from $37 to $40: RBC Capital
• EW: pt raised from $93 to $100: RBC Capital
• CMG: pt cut from $550 to $500: RBC Capital
• CMG: pt cut from $455 to $450: Maxim Group
• TMST: pt cut from $12 to $8: Cowen
• YHOO: pt cut from $39 to $31: Piper Jaffray
• YHOO: pt cut from $42 to $33: RBC Capital
• YHOO: pt cut from $44 to $37: FBR Capital
• YHOO: pt cut from $41 to $40: Susquehanna
• FOXA: pt cut from $32 to $30: Topeka Capital
• AMG: pt cut from $200 to $165: Barrington Research
• AGCO: pt cut from $46 to $45: RBC Capital
• RCL: pt cut from $110 to $99: Wedbush
• RCL: pt cut from $112 to $96: Nomura
• RCL: pt cut from $106 to $86: Susquehanna
• RHI: pt cut from $63 to $43: Baird