Triple Threat - Oil, China, Earnings | Morning News

FEBRUARY 08, 2016
US futures spike down after most global markets post big losses overnight after Friday's disappointing US jobs reports and the continued pressure on oil with the commodity trading down 2.5% at this hour. Traders focus this week will be on Janet Yellen's testimony before Congress to take place on Wednesday and Thursday. China markets are closed for the week but economic data over the weekend indicated that the country's foreign currency reserve hit the lowest level in more than three years, falling by $99,469B in January.

NEWS:

• LMT: Pentagon's budget plan funds 404 Lockheed F-35 jets, reports reuters
• AAPL: Apple said to be on course for approval to open stores in India, reports Bloomberg
• NVDA: SSNLF: Nvidia wins trial brought by Samsung over memory chip patent, reports Bloomberg
• VZ: YHOO: Verizon CEO confirms interest in buying Yahoo, reports CNBC
• APOL: APO: Apollo Global consortium announces agreement to acquire Apollo Education for $9.50/share
• BCRX: avoralstat fails phase 2/3 HAE study
• FB: India blocks Facebook's plan for free internet, reports CNN
• MHK: named top pick at SunTrust
• F: to double Mexico factory capacity in FY16
• SCTY: Deutsche Bank out positive on the stock, reiterates buy with $64 pt
• XON: CERS: INO: CMRX: Obama administration to ask Congress for $1.8B in funding to fight zika virus, reports CNBC

IN BARRONS OVER THE WEEKEND:

• GILD: CELG: Celgene and Gilead: Two Drug makers with 30% Upside, reports Jack Hough
• VNTV: Vantiv shares could rise another 15%, reported here
• AMZN: Amazon: Almost Down to Fair Value, reported here
• CHD: Church & Dwight is too pricey, reports Avi Salzman
• TMO: Thermo Fisher's Allure, tail winds could help lift the stock 25% or more, reports Avi Saltzman
• USO: Here Comes $20 Oil, reports Gene Epstein

THE ECONOMIC CALENDAR:

• 10AM: Labor Market Condition Index
• 12:30PM: TD Ameritrade IMX

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• SIRO: FQ1 EPS of $0.99 beats by $0.01: revenue of $304.2M beats by $3.77M: revenue +3.8% y/y
• VRTU: FQ3 EPS of $0.54 beats by $0.12: revenue of $150.6M misses by $1.05M: revenue +22.4% y/y: guides FY16 non-GAAP EPS lower, $1.96-$1.98 from $2.15-$2.21
• CTSH:Q4 EPS of $0.80 beats by $0.02: revenue of $3.23B misses by $10M: revenue +17.9% y/y: guides FY16 revenue $3.32-$3.44 vs consensus $3.47: guides Q1 EPS $0.78-$0.80 vs consensus $0.81
• DO: Q4 EPS of $0.89 beats by $0.35: revenue of $555.56M beats by $39.93M: revenue -17.7% y/y
• HAS:Q4 EPS of $1.39 beats by $0.09: revenue of $1.47B beats by $100M: revenue +13.1% y/y
• ON: Q4 EPS of $0.19 in-line: revenue of $840.3M misses by $10M: revenue -2.8% y/y: guides Q1 revenue $800M-$840M vs consensus $839.7M

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• ALSN, BKD, BRX, CMP, CUTR, FOXA, GIG, MODN, MOH, MXL, OI, OMI, PAA, PRE, QLYS, RBC, WCN, YELP

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• OA: upgrade: sector weight to overweight: KeyBanc: $106
• LB: upgrade: hold to buy: Brean Capital: $100
• SUPN: upgrade: hold to buy: Jefferies: $18
• ATHN: upgrade: hold to buy: Topeka Capital: pt cut from $169 to $160
• MRVL: upgrade: sell to buy: B Riley: $12
• AMED: upgrade: perform to outperform: Oppenheimer
• CSCO: upgrade: underperform to neutral: Macquarie: $26
• DLTR: upgrade: market perform to outperform: Telsey Advisory: pt raised from $80 to $95
• ACC: upgrade: hold to buy: Canaccord: pt raised from $43 to $48
• ESS: upgrade: neutral to buy: Mizuho: $234
• ZAGG: upgrade: market perform to outperform: Northland
• ULTI: upgrade: market perform to outperform: FBR Capital: $205
• STJ: upgrade: sell to hold: Canaccord: $54
• ACC: upgrade: hold to buy: Canaccord: $48

DOWNGRADES:

• DATA: downgrade: overweight to equal weight: Morgan Stanley: $55
• NVO: downgrade: neutral to sell: UBS
• PWR: downgrade: buy to neutral: UBS: pt cut from $24 to $20
• GEN: downgrade: neutral to sell: UBS: $1.50
• RL: downgrade: overweight to neutral: Atlantic Equities: pt cut from $155 to $95
• ES: downgrade: overweight to equal weight: Barclays: $58
• BHI: downgrade: overweight to equal weight: Morgan Stanley: $47
• WETF: downgrade: market perform to underperform: Keefe Bruyette: $10
• AMRK: downgrade: buy to neutral: B Riley: $16.75
• CSCO: downgrade: conviction buy to buy: Goldman
• NMR: downgrade: buy to hold: Deutsche Bank
• SPA: downgrade: outperform to market perform: Barrington
• CBOE: downgrade: outperform to underperform: CLSA
• AM: downgrade: outperform to neutral: Baird: pt cut from $32 to $23
• PAA: downgrade: neural to underperform: Baird: pt cut from $25 to $16
• OKE: downgrade: outperform to neutral: Baird: pt cut from $28 to $24
• OKS: downgrade: neutral to underperform: Baird: pt cut from $25 to $24
• DXCM: downgrade: outperform to neutral: Baird: pt cut from $100 to $74

INITIATIONS:

• BDSI: initiated: overweight: Piper Jaffray: $6
• DEPO: initiated: overweight; Piper Jaffray: $23
• ACAD: initiated: buy: BofA/Merrill: $40
• NWL: initiated: buy: Gabelli: 

PRICE TARGET CHANGES:

• WEC: pt raised from $54 to $63: Mizuho
• PNW: pt raised from $60 to $70: Mizuho
• EL: pt raised from $99 to $105: Telsey Advisory
• TSN: pt raised from $53 to $60: RBC Capital
• CME: pt raised from $83 to $86: RBC Capital
• USG: pt raised from $20 to $24: RBC Capital
• LGF: pt cut from $35 to $25: Stifel
• LNKD: pt cut from $220 to $180: Stifel
• CSCO: pt cut from $34 to $30: Stifel
• IDTI: pt cut from $34 to $28: Chardan Capital
• AME: pt cut from $63 to $58: RBC Capital
• ADSK: pt cut from $61 to $55: RBC Capital
• DIS: pt cut from $133 to $131: Topeka Capital
• RDWR: pt cut from $18 to $15: Imperial Capital
• SRCL: pt cut from $135 to $115: Imperial Capital
• SRCL: pt cut from $120 to $119: RBC Capital
• MCO: pt cut from $116 to $96: UBS