Oil falters | Morning News

JANUARY 25, 2016
On the heels of a positive end to last week, US futures point to a lower opening with Asian shares closing higher but European markets trading modestly lower. Overnight, crude headed lower, giving back a good part of its gains from last week on the ever present oversupply woes in combination with some profit taking. To add to the pressure on the commodity, Saudi Arabia announced over the weekend that it would not reduce its new investment in oil and gas production capacity despite cost-cutting measures, and Iran marked its first sale of crude to a European country since the lifting of sanctions.

NEWS:

• JCI: TYC: Johnson Controls confirms it will merge with Tyco International
• FUN: added to Goldman's Conviction Buy list
• MDVN: FDA places investigational new drug application for MDV9300 on partial hold
• SLB: Schlumberger to win unconditional EU approval for Cameron Deal, reports reuters
• TWTR: CEO Jack Dorsey confirms that four key executives have left the company, reports re/code
• BMY: FDA approves expanded label for Opdivo/Yervoy combination
• BA: complete first refueling flight of KC-46A tanker, reports reuters
• GE: Iraq approves GE electric grid deal worth $328M
• MCD: announces plans to launch 60 restaurants in Russia in 2016

SOME INTERESTING ARICLES IN BARRONS OVER THE WEEKEND:

• CMG: Chipotle Shares are Still Pricey, could fall another 20%, reported here
• NWL: With the Jarden acquisition, Newell will more than double in size and shares could double in 3-5 years, reports Jack Hough
• IP: Time to buy. The stock has been hit by commodities woes and it's overdone at this point. Could rally 50%, says Sandra Ward

SOME NOTABLE EARNINGS REPORTED BEFORE THE OPENING TODAY:

• DHI: FQ1 EPS of $0.42 beats by $0.01: revenue of $2.3B misses by $40M: revenue +5.4% y/y
• HAL: Q4 EPS of $0.31 beats by $0.07: revenue of $5.08B misses by $30M: revenue -42.1% y/y
• KMB: Q4 EPS of $1.42 misses by $0.01: revenue of $4.54B misses by $30M: revenue -6.0% y/y
• MCD: Q4 EPS of $1.31 beats by $0.08: revenue of $6.34B beats by $120M: revenue -3.5% y/y:
• PETS:FQ3 EPS of $0.24 misses by $0.01: revenue of $50.93M beats by $1.65M: revenue +3.3% y/y

SOME NOTABLE EARNINGS TO BE REPORTED AFTER THE CLOSE TODAY:

• ASH, PRO, BXS, CR, ELS, PKG, RLI, RMBS, SANM, STLD, SWFT, ZION

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• HD: upgrade: hold to buy: Deutsche Bank: $135
• OFC: upgrade: neutral to buy: Mizuho: pt raised from $23 to $25
• VYGR: upgrade: sell to neutral: Chardan Capital: $15
• INTC: upgrade: neutral to outperform: Macquarie: pt raised from $34 to $35
• SCHW: upgrade: neutral to buy: Nomura: $34
• GS: upgrade: neutral to buy: Nomura: pt raised from $207 to $210
• PNFP: upgrade: underperform to market perform: Hovde Group: pt cut from $52 to $51
• TOL: upgrade: outperform to strong buy: Raymond James: $40

DOWNGRADES:

• OKS: downgrade: outperform to neutral: Baird: pt cut from $40 to $25
• REGN: downgrade: neutral to sell: Chardan Capital: pt cut from $525 to $400
• IFF: downgrade: buy to hold: Stifel
• BMY: downgrade: outperform to market perform: BMO Capital: pt cut from $74 to $70
• TOL: downgrade: outperform to market perform: JMP Securities
• WFM: downgrade: market perform to underperform: BMO Capital: pt cut from $26 to $23
• TWTR: downgrade: buy to hold: Stifel
• CAT: downgrade: hold to sell: Goldman: pt cut from $67  to $51
• N: downgrade: overweight to equal weight: Stephens
• OVAS: downgrade: outperform to perform: Oppenheimer
• RJF: downgrade: buy to neutral: Nomura: pt cut from $65 to $55
• JPM: downgrade: buy to neutral: Nomura: pt raised from $70 to $71
• AXP: downgrade: overweight to equal weight: Morgan Stanley: $64
• PKG: downgrade: buy to neutral: Citi
• SNDK: downgrade: outperform to underperform: CLSA: pt cut from $86 to $70
• IP: downgrade: buy to neutral: Citi: pt cut from $45 to $38

INITIATIONS:

• ADHD: initiated: outperform: Northland: $16
• QTS: initiated: buy: SunTrust: $52

PRICE TARGET CHANGES:

• SAP: pt raised from $76 to $79: FBR Capital
• VZ: pt raised from $48 to $50: RBC Capital
• UA: pt cut from $110 to $95: Cowen
• XEC: pt cut from $128 to $110: Topeka Capital
• CTXS: pt cut from $82 to $80: RBC Capital
• FIT: pt cut from $33 to $28: RBC Capital
• FCX: pt cut from $10 to $8: RBC Capital
• GE: pt cut from $34 to $33: RBC Capital
• STI: pt cut from $48 to $46: RBC Capital
• STJ: pt cut from $66 to $57: RBC Capital
• COL: pt cut from: $105 to $99: RBC Capital
• JBL: pt cut from $26 to $23: RBC Capital
• CLVS: pt cut from $35 to $23: Mizuho
• GPOR: pt cut from $50 to $42: Topeka Capital
• XON: pt cut from $42 to $28: Mizuho
• KSU: pt cut from: $83 to $76: Cowen
• KSU: pt cut from $88 to $80: UBS
• Z: pt cut from $38 to $32: Canaccord
• SLB: pt cut from $81 to $75: Cowen
• ENS: pt cut from $73 to $67: Stifel
• EPE: pt cut from $12 to $6: Topeka Capital
• HES: pt cut from $58 to $38: JP Morgan
• SSYS: pt cut from $37 to $30: Jefferies
• DD: pt cut from $11 to $7.50: Jefferies