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