Oil and China pressures markets | Morning News

FEBRUARY 01.2016
US futures point to a lower opening as markets enter a new month on shaky ground following the S&Ps worst January since 2009, as traders look to a busy week on the economic calendar as well as earnings, which will see 20% of the S&P companies reporting. Overnight, crude fell further, under pressure by weak manufacturing data out of China and lack of confidence in world oil producers to put together a coordiated plan for production cuts.

NEWS:

• TM: to stop Japan production for one week due to steel shortage, reports reuters
• HSBC: to freeze salaries, hiring in 2016 in battle to cut costs, reports reuters
• NOK: ALU: Nokia patent sales forecast from Samsung deal hits shares, reports reuters
• HLF: probes of Ackman and Herblife fizzle, reports the WSJ
• CMG: CDC expected to declare end to E-coli outbreak, reports the WSJ
• TSLA: Elon Musk adds huge Tesla stock stake ahead of earnings, reports IBD
• D: STR: Dominion Resources announces agreement to purchase Questor for $4.4B
• AYA: confirms CEO intention to acquire company
• ARIA: cleared by PDA to begin development of AP32788
• TWTR: rumor surfaces that Andreessen & Silver Lake have considered a deal for Twitter
• ALR: ABT: Abbott to acquire Alere for $56/share
• TROV: announces deal with FedMed PPO for liquid biopsy tests

IN BARRONS OVER THE WEEKEND:

• CTRP: It's merger with Qunar makes it China's dominant online travel agent and has 30% upside, reports Jack Hough
• FELE: Franklin Electric poised for an up cycle, reports David Englander
• ADSK: AKAM: WDC: SNDK: LRCX: Five battered tech stocks to buy now, reports Alecander Eule
• BAC: C: JPM: WTC: GS: MS: BBT: PNC: STI: UBS:Time to buy certain bank stocks, sees 20% upside, writes Andrew Bary

THE ECONOMIC CALENDAR:

• 8:30AM: Personal Income and Outlays
• 8:30AM: Gallup US Consumer Spending Measure
• 9:45AM: PMI Manufacturing Index
• 10AM: ISM Manufacturing Index
• 10AM: Construction Spending

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• AET: Q4 EPS of $1.37 beats by $0.16: revenue of $15.09B beats by $160M: revenue +2.2% y/y: guides FY16 operating EPS $1.37 vs consensus $1.21
• SOHU: Q4 EPS of -$0.34 beats by $0.10: revenue of $466.1M beats by $6.73M: revenue -2.3% y/y: guides Q1 EPS -$0.65 to -$0.40 vs consensus -$0.23
• CYOU: Q4 EPS of $0.85 beats by $0.19: revenue of $161.91M beats by $7.12M: revenue -26.4% y/y
• CAH: FQ2 EPS of $1.30 beats by $0.04: revenue of $31.45B beats by $2.22B: revenue +23.1% y/y
• ROP: Q4 EPS of $1.82 misses by $0.05: revenue of $945.64M misses by $16.97M: guides FY16 EPS $6.85-$7.15 vs consensus $7.43

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• AFL, APC, APU, ARE, CBT, FN, GGP, GOOG, GOOGL, HAIN, IDTI, LEG, LMNX, MAT, NEU, PFG, PLT, TSO, UGI, WSTC

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• PFPT: upgrade: in-line to outperform: Imperial Capital: pt raised from $65 to $68
• MNST: upgrade: market perform to outperform: Wells Fargo: pt range raised from $139-$141 - $159-$161
• NWL: upgrade: market perform to outperform: Raymond James: $43
• VRTX: upgrade: hold to buy: Jefferies: pt cut from $142 to $120
• MU: upgrade: sell to neutral: Goldman: $11
• KMT: upgrade: underperform to neutral; BofA/Merrill: $17
• NOC: upgrade: neutral to buy: BofA/Merrill: $210
• LLL: upgrade: underperform to buy: BofA/Merrill: $135
• CMG: upgrade: underperform to neutral: BofA/Merrill: $475
• PX: upgrade: neutral to buy: UBS: $109
• APD: upgrade: neutral to buy: UBS: $151
• JOY: upgrade: equal weight to overweight : Barclays: $14
• ZFC: upgrade: equal weight to overweight: Barclays: pt raised from $16 to $17
• SDPI: upgrade; hold to buy: Wunderlich: pt raised from $1 to $3
• AAL: upgrade: market perform to outperform: Cowen: pt raised from $47 to $48
• CBPX: upgrade: hold to buy: BB&T: $20
• JAH: upgrade: market perform to outperform: Raymond James

DOWNGRADES:

• TIF: downgrade: outperform to market perform: Cowen: pt cut from $75 to $70
• RH: downgrade: outperform to market perform: Cowen: pt cut from $105 to $64
• CTWS: downgrade: outperform to market perform: Wells Fargo: pt range raised from $43-$44 to $45-$46
• POR: downgrade: buy to hold: Williams Group: pt raised from $27 to 441
• AIG: downgrade: outperform to market perform: BMO Capital: $62
• DRE: downgrade: outperform to market perform; BMO Capital: $21
• XRX: downgrade: overweight to equal weight; Morgan Stanley: pt cut from $13.50 to $12
• X: downgrade: outperform to neutral: Macquarie
• CIG: downgrade: outperform to sector perform: RBC Capital: pt cut from $54 to $47
• EMN: downgrade: buy to neutral: SunTrust: $66

INITIATIONS:

• ACHS: initiated: overweight: KeyBanc: $85
• SMMT: initiated: buy: Canaccord:
• HALO: initiated: buy: Canaccord: $10
• VNRX: initiated: buy: Rodman & Renshaw: $12
• FTNT: initiated: outperform: Northland: $35
• SWKS: initiated: buy: Chardan Capital: $100
• AVGO: initiated: buy: Deutsche Bank: $157

PRICE TARGET CHANGES:

• CCI: pt raised from $86 to $100: RBC Capital
• WHR: pt raised from $163 to $169: RBC Capital: (remains Top Pick)
• FANG: pt raised from $94 to $95: Sun Trust (Top Pick)
• URI: pt cut from $90 to $65: RBC Capital
• URI: pt cut from $92 to $57: Stifel
• MA: pt cut from $114 to $104: RBC Capital
• MA: pt cut from $120 to $114: Stifel
• HON: pt cut from $106 to $113: Stifel
• MSFT: pt cut from $65 to $63: RBC Capital
• IMGN: pt cut from $19 to $18: RBC Capital
• N: pt cut from $90 to $80: RBC Capital
• THROW: pt cut from $79 to $74: RBC Capital
• EMN: pt cut from $86 to $72: RBC Capital
• POT: pt cut from $18 to $16: Cowen
• CRR: pt cut from $20 to $16: Cowen
• GPRO: pt cut from $9 to $7.50: Piper Jaffray
• TWTR: pt cut from $38 to $25: Canaccord
• DIS: pt cut from $112 to $92: Jefferies
• STX: pt cut from $45 to $39: Maxim Group
• TSLA: pt cut from $450 to $333: Morgan Stanley