World Market Meltdown | Morning News

JANUARY 07, 2016

US futures plunge as world markets get hit hard after the Shanghai halted trading for the second time within a week. Although still weak, crude flirted with $32 overnight before finding support.

NEWS:

• PSDV: announces planning a public offering of shares
• ABBV: AbbVie's NDA for Viekira Pak granted priority review by FDA
• QURE: issues preliminary top-line data from AMT-060 hemophilia B phase I/II
• ATML: Microchip reportedly having second thoughts about buying Atmel
• TXMD: prices its $125M public offering at $8.25
• AMZN: AAPL: P: GOOGL: GOOG: Streaming music in US up 93% in 2015, reports Reuters
• ZUMZ: guides revenue of $237M to $239M vs consensus of  $230M and EPS of $0.45 to $0.47 v consensus $0.43 

THE ECONOMIC CALENDAR:

• Various Times: Chain Store Sales
• 7:30AM: Challenger Job Cut Report
• 8:30AM: Gallup Good Jobs
• 8:30AM: Weekly Jobless Claims
• 9:45AM: Bloomberg Consumer Comfort Index
• 10:30AM: EIA Natural Gas Inventory
• 2:15PM: Fed's Evan Speaks on "US Economy"
• 4:30PM: Money Supply and Fed Balance Sheet

SOME NOTABLE EARNINGS REPORTED BEFORE THE OPENING TODAY:

• WBA: FQ1 EPS of $1.03 beats by $0.07: revenue of $29.03B misses by $210M: revenue +48.5% y/y
• FINL: FQ3 EPS of -$0.49 misses by $0.45: revenue of $382.09M misses by $25.83M: revenue -3.5% y/y
• GBX: FQ1 EPS of $2.15 beats by $0.52: revenue of $802.39M beats by $43.58M: revenue +62.1% y/y
• KBH: FQ4 EPS of $0.43 misses by $0.07: revenue of $985.78M misses by $84.22M: revenue +23.8% y/y

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• ANGO, BBBY, CUDA, HELE, PSMT, RT, SNX, TCS

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• CERN: upgrade: outperform to top pick: RBC Capital: pt raised from $70 to $75
• CHRW: upgrade: sector perform to outperform: RBC Capital: pt raised from $72 to $75
• MDRX: upgrade: sector perform to outperform: RBC Capital: pt raised from $14 to $19
• NDSN: upgrade: hold to buy: Wunderlich: $75
• LUV: upgrade: underweight to equal weight: Morgan Stanley: $51
• OLN: upgrade: neutral to buy: Nomura:
• CMA: upgrade: neutral to outperform: Baird: $46
• HST: upgrade: neutral to outperform: Baird: pt cut from $21 to $20
• KRC: upgrade: neutral to outperform: Baird: $72
• SLG: upgrade: neutral to outperform: Baird: $132
• SHO: upgrade: neutral to outperform: Baird: pt cut from $18 to $17
• AAL: upgrade: neutral to outperform: Credit Suisse: pt raised from $52 to $57
• WFC: upgrade: neutral to buy: Citi
• MKC: upgrade: hold to buy: Deutsche Bank
• DFS: upgrade: hold to buy: Deutsche Bank: pt raised from $61 to $64
• PSA: upgrade: neutral to outperform: Baird: pt raised from $256 to $272

DOWNGRADES:

• SWFT: downgrade: outperform to sector perform: RBC Capital: pt cut from $21 to $14
• R: downgrade: top pick to sector perform: RBC Capital: pt cut from $89 to $58 (that's a double downgrade)
• SAIA: downgrade: overweight to equal weight: Stephens: pt cut from $30 to $24
• PPS: downgrade: outperform to market perform: Raymond James
• PSA: downgrade: outperform to market perform: Raymond James
• NNN: downgrade: outperform to market perform: Raymond James: 
• EXPD: downgrade: outperform to sector perform: RBC Capital: pt cut from $56 to $48
• ODFL: downgrade: outperform to sector perform: RBC Capital: pt cut from $75 to $60
• NEM: downgrade: outperform to sector perform: RBC Capital: pt cut from $26 to $20
• ALK: downgrade: outperform to neutral: Credit Suisse: $90
• JWN: downgrade: equal weight to underweight: Morgan Stanley: $45
• APC: downgrade: buy to hold: Deutsche Bank: $60
• GWR: downgrade: outperform to sector perform: RBC Capital: $55
• COF: downgrade: buy to hold: Deutsche Bank: $81

INITIATIONS:

• DEPO: initiated: neutral: Mizuho: $19
• CCP: initiated: neutral: Mizuho: $32
• BABA: initiated: outperform: Baird: $94
• PAYC: initiated: outperform: Baird: $48
• PCTY: initiated: outperform: Baird: $44
• SHOP: initiated: outperform: Baird: $31
• W: initiated: neutral: Baird: $50
• GTT: initiated: overweight: Stephens: $28

PRICE TARGET CHANGES:

• ISRG: pt raised from $565 to $610: RBC Capital
• QSII: pt raised from $14 to $16: RBC Capital
• FB: pt raised from $120 to $130: Cantor
• GOOGL: GOOG: pt raised from $820 to $880 at Cantor
• LNKD: pt raise from $285 to $300: Cantor
• VCRA: pt raised from $16 to $18: Topeka Capital
• ZUMZ: pt raised from $13 to $16: Mizuho
• AAPL: pt cut from $140 to $130: RBC Capital
• ESV: pt cut from $15 to $13: Cowen
• FIT: pt cut from $81 to $49: Leerink
• TLOG: pt cut from $5 to $1: Roth Capital
• VRX: pt cut from $130 to $112: Mizuho
• CMG: pt cut from $425 to $375: Stephens
• CMG: pt cut from $480 to $400: Deutsche Bank
• CMG: pt cut from $555 to $448: Telsey Advisory
• CMG: pt cut from $500 to $450: Wedbush
• EAT: pt cut from $60 to $56: Maxim Group
• RRGB: pt cut from $98 to $90: Maxim Group