Oil, China, North Korea triple threat | Morning News

JANUARY 06, 2016

US futures spike lower as global markets take another plunge after China permitted the yuan to weaken further (Shanghai +2.26%)  and a nuclear test by North Korea added to geopolitical tensions. To add fuel to the fire, crude fell to a new 11 year low as increasing global oversupply outweighs Middle East worries. Gold, as a safe haven, rose by $7/ounce while the 10 year Treasury yield is trading lower by 5bbs to 2.19%

NEWS:

• INTC: Intel Says Its Button-Sized Curie Will Ship In Q1, Costing Under $10, reports TechCrunch
• AAPL: Apple cuts iPhone 6S and 6S Plus production, reports The Guardian
• PXD: 12M shares spot secondary priced at $117
• MNKD: Sanofi has announced the termination of its license for Afrezza with Mankind and returned the rights to the product

THE ECONOMIC CALENDAR:

• 7AM: MBA Mortgage Applications
• 8:15AM: ADP Jobs Report
• 8:30AM: International Trade
• 8:30AM: Gallup US Job Creation Index
• 9:45AM: PMI Services Index
• 10AM: Factory Orders
• 10AM: ISM Non-Manufacturing Index
• 10:30AM: EIA Petroleum Inventories
• 2PM: FOMC Minutes

EARNINGS REPORTED BEFORE THE OPENING TODAY:

• RPM: FQ2 EPS of $0.62 beats by $0.05: revenue of $1.16 in-line: revenue +8.4 y/y
• MSM: FQ1 EPS of $0.89 beats by $0.02: revenue of $706.82M misses by $1.91M: revenue -3.3% y/y

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• XLY: upgrade: sector perform to outperform: RBC Capital: pt raised from $27 to $42
• LMT: upgrade; sector perform to outperform: RBC Capital: pt raised from $220 to $250
• RES: upgrade: market perform to outperform: FBR Capital: pt raised from $11 to $15
• RLGY: upgrade: underperform to neutral: Credit Suisse: pt cut from $39 to $36
• WBA: upgrade: hold to buy: Evercore: $94.50
• RES: upgrade: market perform to outperform: FBR Capital: pt raised from $11 to $15
• WPG: upgrade: neutral to buy: Goldman: $13.50
• ORCL: upgrade: hold to buy: Evercore: $44
• BCRX: upgrade: hold to buy: Jefferies: pt raised from $10 to $14
• IRBT: upgrade: underweight to neutral: JP Morgan
• TASR: upgrade: neutral to overweight: JP Morgan: $25
• PAYC: upgrade: equal weight to overweight: Barclays: $44
• TFX: upgrade: outperform to strong buy: Raymond James: $150
• SKYW: upgrade: market perform to outperform: Raymond James

DOWNGRADES:

• WCC: downgrade: outperform to sector perform: RBC Capital: pt cut from $53 to $50
• TYC: downgrade: outperform to sector perform: RBC Capital: pt cut from $41 to $34
• TDC: downgrade: equal weight to underweight: Barclays: pt cut from $28 to $23
• SWHC: downgrade: outperform to neutral: Wedbush: $26
• MASI: downgrade: strong buy to outperform: Raymond James: pt cut from $50 to $46
• RAD: downgrade: buy to hold: Evercore: $9
• BDX: downgrade: buy to hold: Evercore: $160
• CHH: downgrade: neutral to underweight: JP Morgan: pt cut from $50 to $43
• CBL: downgrade: buy to neutral: Goldman
• H: downgrade: overweight to neutral: JP Morgan: pt cut from $62 to $50
• VNR: downgrade: overweight to neutral: JP Morgan: pt cut from $10 to $5
• KPTI: downgrade: buy to hold: Jefferies
• HCA: downgrade: outperform to market perform: Longbow: $74
• MGLN: downgrade: equal weight to underweight: Barclays: $61
• DWRE; downgrade: overweight to equal weight: Barclays: pt cut from $70 to $57
• WDAY: downgrade: overweight to equal weight: Barclays: pt cut from $84 to $80
• CHKP: downgrade: equal weight to underweight: Barclays: pt cut from $91 to $83
• HCP: downgrade: equal weight to underweight: Barclays: pt cut from $40 to $37
• QLIK: downgrade: overweight to sector weight: Pacific Crest: 

INITIATIONS:

• ANET: initiated: neutral: UBS: $85
• DPLO: initiated: overweight: Barclays: $41
• EW: initiated: outperform: JMP Securities
• NVDQ: initiated: outperform: JMP Securities

PRICE TARGET CHANGES:

• MSFT: pt raised from $57 to $65: RBC Capital
• BIN: pt raised from $27 to $28: RBC Capital
• BIIB: pt raised from $318 to $357: Jefferies
• BMRN; pt cut from $168 to $118: Piper Jaffray
• AMC: pt cut from $27 to $26: Topeka Capital
• FIT: pt cut from $45 to $40: RBC Capital
• MNKD: pt cut from $1 to $0.15: RBC Capital
• OMED: pt cut from $45 to $40: Mizuho
• PXD: pt cut from $152 to $150: RBC Capital
• SGY: pt cut from $8 to $6: Imperial Capital
• WDR: pt cut from $49 to $44: RBC Capital