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JANUARY 08, 2016
US futures green but well off their highs as global markets swing into rebound mode, led by strong gains from the battered Chinese market after Beijing suspended its controversial market circuit breaker and set a firmer yuan midpoint rate for the first time in nine days. The Shanghai Composite closed up almost 2% although down 10% for the week. Investors turn their attention to key economic data due out at 8:30AM EST which includes unemployment rate and non-farm payroll numbers. Overnight, crude staged a modest rebound as traders look to the Baker-Hughes rig count at 1PM EST. 

NEWS:

• AAPL: Apple iPhone 6s/6s plus expected to see on-year decline in 1Q16, reports digitimes
• QRVO: slashes FQ3 revenue guidance from $720M-$730M to $620M vs consensus of $723.7M
• CRUS: cuts FQ3 revenue guidance from $370M-$400M to $347M vs consensus of $386M
• SUNE: files to sell 43.8M shares for stockholders
• FIVE: announces sales increased 24% y/y to $286.1M during the holiday period

THE ECONOMIC CALENDAR:

• 8:30AM: Non-farm Payrolls
• 8:30AM: Unemployment Rate
• 8:30AM: Average Hourly Earnings 
• 10AM: Wholesale Trade
• 11:30AM: Fed's Williams speaks on "Economic Outlook"
• 1PM: Fed's Lacker speaks on "Economic Outlook"
• 1PM: Baker-Hughes Rig Count
• 3PM: Consumer Credit

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• PSMT: FQ1 EPS of $0.78 misses by $0.05: revenue of $711.93M misses by $4.89M: revenue +8.5% y/y
• HELE:FQ3 EPS of $2.07 beats by $0.14: revenue of $445.5M (+2.3% Y/Y) beats by $4.89M: revenue +2.3% y/y
• SNX: FQ4 EPS of $1.80 beats by $0.04: revenue of $3.55B (-7.1% Y/Y) misses by $50M: revenue -7.1% y/y: weak guidance
• ANGO: FQ2 EPS of $0.14 in-line: revenue of $89.2M beats by $0.53M: revenue -3.2% y/y: lowers guidance but remains within consensus 
• BBBY: FQ3 EPS of $1.09 in-line: revenue of $2.95B misses by $20M: revenue +0.3% y/y: guides in-line
• CUDA: FQ3 EPS of $0.07 misses by $0.01: revenue of $80.1M misses by $0.19M: revenue +13.8% y/y: guides revenue below consensus
• TCS: FQ3 EPS of -$0.04 misses by $0.09: revenue of $197.25M misses by $2.4M: revenue +3.3% y/y: soft guidance

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• ITC: upgrade: hold to buy: Wunderlich: pt raised from $34 to $45
• SEE: upgrade: equal weight to overweight: Barclays: $51
• PKG: upgrade: equal weight to overweight: Barclays: pt raised from $67 to $75
• BMS: upgrade: underweight to equal weight; Barclays: $45
• DD: upgrade: market perform to outperform: Bernstein: $81
• STI: upgrade: market perform to outperform: Bernstein
• CERN: upgrade: outperform to Top Pick: RBC Capital: $75
• FTI: upgrade: hold to buy: Societe Generale
• NE: upgrade: hold to buy: Societe Generale
• GPN: upgrade: neutral to buy: SunTrust: pt raised from $70 to $75
• CI: upgrade: hold to buy: Jefferies: $184
• SPB: upgrade: hold to buy: Jefferies: $134
• BYD: upgrade: neutral to overweight; JP Morgan: pt raised from $20 to $22

DOWNGRADES:

• UTX: downgrade: outperform to market perform: Bernstein: pt cut from $116 to $104
• AET: downgrade: buy to hold: Jefferies: $122
• INVN: downgrade: buy to neutral: Rosenblatt
• WRK: downgrade: overweight to equal weight: Barclays: pt cut from $70 to $50
• VRTV: downgrade: overweight to underweight: Barclays (double downgrade)
• IP: downgrade: overweight to equal weight: Barclays: pt cut from $57 to $42
• FNSR: downgrade: overweight to equal weight: Barclays: pt cut from $18 to $17
• LITE: downgrade: equal weight to underweight: Barclays: $19
• KEYS: downgrade: outperform to neutral: Baird: pt cut from $35 to $29
• TCS: downgrade: overweight to neutral: JP Morgan
• MOS: downgrade: outperform to market perform: BMO Capital
• CUDA: downgrade: outperform to market perform: William Blair
• CUDA: downgrade: buy to hold: Summit Research: $15
• CUDA: downgrade: outperform to market perform: JMP Securities
• CUDA: downgrade: buy to neutral: BTIG: 
• CYH: downgrade: outperform to neutral: Wedbush
• SAM: downgrade: buy to hold: Jefferies:
• WSM: downgrade: buy to neutral: Buckingham

INITIATIONS:

• MSFT: initiated: outperform: BMO Capital: $64
• RHT: initiated: outperform: BMO Capital: $97
• SAP: initiated: market perform: BMO Capital: $84
• ORCL: initiated: market perform: BMO Capital: $42
• ARC: initiated: buy: B Riley: $8
• AMGN: initiated: sell: BTIG: $135

PRICE TARGET CHANGES:

• NTES: pt raised from $162.20 to $221: Deutsche Bank
• CRL: pt raised from $83 to $93: SunTrust
• CUDA: pt cut from $30 to $19: JP Morgan
• CUDA: pt cut from $32 to $26: Stifel
• CUDA: pt cut from $42 to $26: Topeka Capital
• DUK: pt cut from $85 to $81: Argus
• IBM: pt cut from $160 to $155: Stifel
• CRUS: pt cut from $45 to $38: Stifel
• CBS: pt cut from $45 to $38: Stifel
• QDEL: pt cut from $30 to $22: Piper Jaffray
• KBH: pt cut from $16 to $11.50: FBR Capital
• SVU: pt cut from $11 to $10: Telsey Advisory
• BBBY: pt cut from $52 to $50: Telsey Advisory
• AAPL: pt cut from $130 to $125: Cowen
• QRVO: pt cut from $65 to $50: Mizuho
• QRVO: pt cut from $75 to $55: Northland
• NFLX: pt cut from $175 to $165: Pivotal Research Group
• CMG: pt cut from $480 to $400: Deutsche Bank
• SUNE: pt cut from $18 to $7.50: Oppenheimer