Volatility Ahead| Stay Disciplined | Morning News

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

NEWS:

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

THE ECONOMIC CALENDAR:

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

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

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

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

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

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

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

ANALYSTS' RATINGS CHANGES:

UPGRADES:

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

DOWNGRADES:

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

INITIATIONS:

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

PRICE TARGET CHANGES:

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