Bulls Take Charge .. at least Temporarily | Morning News

FEBRUARY 26, 2016
US futures pointing to a higher opening with global market joining the rally as traders await economic data this morning, including QDP Q4 and consumer sentiment. Overnight, crude futures found support after the Venezuelan oil minister reaffirmed a March meeting with some OPEC countries and Russia to stabilize prices. Investors attention will be on the Baker-Hughes rig count to be reported this afternoon at 1PM EST.
NEWS:

• JASO: pre-announces strong Q4 earnings
• ABBV: approves venetoclax as an orphan drug for the treatment of AML
• BABA: Alibaba in talks with bank for up to $4B loan, reports WSJ
• POT: announces plans to slow production at two Canadian mines
• BMY: announces two positive CHMP opinions for Opdivo
• BIIB: announces positive CHMP opinion for Hemophilia B drug
• F: upgrades Cleveland Plant, adding 150 jobs
• BOTA: announces results of phase 1 BTA585
• GILD: announces positive CHMP for fixed dose Descovy combo
• DOW: announces settlement of urethanes class actions suit for $835M 
• RJET: files for for Chapter 11 bankruptcy
• CARA: provides disappointing update of CLIN3001 pivotal trial 
• GGT: decreases quarterly dividend 21.4% to $0.22
• BCV: decreases quarterly dividend 75.6% to $0.25

THE ECONOMIC CALENDAR:

• 8:30AM: QDP Q4
• 8:30AM: International Trade in Goods
• 8:30AM: Personal Income and Outlays
• 10AM: Reuters/UofM Consumer Sentiment
• 10:15AM: Fed's Powell Speaks on "Fed Communication Away from the Zero Lower Bound"
• 10:15AM: Fed's Williams Speaks on "Fed Commuication Away from the Zero Lower bound"
• 11:30AM: $28B 7 Year Note Auction
• 1PM: Baker-Hughes Rig Count
• 1:30PM: Fed's Brainard Speaks

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• INTU: FQ2 EPS of $0.25 beats by $0.06: revenue of $923M beats by $29.77M: revenue +23.2% y/y:: strong Q3 guidance 
• SWN: Q4 EPS of -$0.02 in-line: revenue of $687M misses by $63.9M: revenue -28.6% y/y
• BLOX: FQ2 EPS of $0.17 beats by $0.02: revenue of $96M beats by $0.48M: revenue +29.2% y/y: soft FQ3 and FY16 guidance
• RRC: Q4 EPS of $0.25 beats by $0.13: revenue of $455.8M beats by $36.08M: revenue -12.2% y/y: guides FY16 CapEx $495M, down 45% y/y
• PBA: Q4 EPS of $0.32 in-line: revenue of $1.24B misses by $40M: revenue -1.6% y/y
• DLR: Q4 FFO of $1.38 beats by $0.10: revenue of $500.44M beats by $11.05M: revenue +21.4% y/y: reaffirms guidance
• UHS: Q4 EPS of $1.71 misses by $0.03: revenue of $2.32B beats by $30M: revenue +10.0% y/y: guides revenue above consensus
• BIDU: Q4 EPS of RMB7.61 beats by RMB0.66: revenue of RMB18.7B beats by RMB150M: revenue +33.1% y/y: guides Q1 below expectations
• WTW: Q4 EPS of -$0.03 misses by $0.05: revenue of $259.2M beats by $1.53M: revenue -20.9% y/y: guides in-line
• IM: Q4 EPS of $1.01 misses by $0.03: revenue of $11.31B misses by $1.07B: revenue -19.0% y/y
• EOG: Q4 EPS of -$0.27 beats by $0.04: revenue of $1.8B misses by $380M: revenue -61.3% y/y
• CBI: Q4 EPS of $1.56 beats by $0.03: revenue of $3.27B misses by $40M: revenue -3.0% y/y: guides in-line
• HLF: Q4 EPS of $1.19 beats by $0.25: revenue of $1.1B beats by $40M: revenue -2.7% y/y: soft guidance
• GPS: Q4 EPS of $0.57 in-line: revenue of $4.39B misses by $70M: revenue -6.8% y/y: guides below consensus
• NEWM: Q4 EPS of $1.26 may not be comparable to consensus of $0.41: revenue of $333.65M beats by $5.91M: revenue +78.6% y/y
• PANW: FQ2 EPS of $0.40 beats by $0.01: revenue of $334.7M beas by $16.38M: revenue +53.8% y/y: guides revenue above consensus: guides earnings below consensus
• MNST: Q4 EPS of $0.68 misses by $0.14: revenue of $645.43 misses by $52.97M; revenue +6.6% y/y: announces additional $1.75B share repurchase authorization
• SPLK: Q4 EPS of $0.11 beats by $0.03: revenue of $220M beats by $17.03M: revenue +49.3% y/y: strong FQ1 and FY17 guidance
• MDVN: Q4 EPS of $0.29 beats by $0.05: revenue of $377.75M beats by $5.81M: revenue +37.5% y/y: guides FY16 EPS $1.30-$1.40 vs consensus $1.35
• KHC: Q4 EPS of $0.62 beats by $0.04: revenue of $7.12B: revenue -5.1% y/y
• BMRN: Q4 EPS of $0.39 may not be comparable to consensus of $0.99: revenue of $227.9M beats by $3.52M: revenue -0.9% y/y: guides revenue below consensus
• MHK: Q4 EPS of $2.82 beats by $0.09: revenue of $2B misses by $40M: revenue +2.6% y/y: guides Q1 below consensus
• MELI: Q4 EPS of $0.88 beats by $0.19: revenue of $180.73M beats by $9.11M: revenue +12.0% y/y
• ADSK: Q4 EPS of $0.21 beats by $0.10: revenue of $648.3M beats by $13.38M: revenue -2.5% y/y:guides revenue below consensus
• STMP: Q4 EPS of $1.57 beats by $0.63: revenue of $69.88M beats by $11.92M: revenue +67/0% y/y: strong guidance above consensus
• ALRM: Q4 EPS of $0.14 beats by $0.13: revenue of $56.9M beats by $9.77M: revenue +24.8% y/y: guides above consensus

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• MGA: Q4 EPS of $1.19 beats by $0.08: revenue of $8.57B beats by $260M: revenue -2.5% y/y: guides FY16 revenue $34.6B-$36.3B vs consensus $35.58B: raises quarterly dividend by 14% to $.025
• RDC: Q4 EPS of $0.95 beats by $0.21: revenue of $535.8M beats by $5.64M: revenue -3.7% y/y
• KBR: Q4 EPS of $0.36 beats by $0.07: revenue of $1.08B misses by $50M: revenue -23.9% y/y: guides FY16 EPS $1.20-$1.45 vs consensus $1.42
• PMC: Q4 EPS of $0.45 beats by $0.04: revenue of $52-.6M beats by $14.2M: revenue -0.6% y/y: guides FY16 adjusted EPS $1.95-$2.05 vs consensus $2.31
• REV: Q4 EPS of $1.17: revenue of $521.9M: revenue +4.2% y/y: announces president and CEO Delpani to step down
• FL:Q4 EPS of $1.16 beats by $0.04: revenue of $2.01B beats by $10M: revenue +5.2% y/y:  sss +7.9%
• JCP: Q4 EPS of $0.39 beats by $0.16: revenue of $4B beats by $10M; revenue +2.8% y/y' guides FY16 gross margins up 40-60bbs
• HLT: Q4 EPS of $0.22 in-line: revenue of $2.89B misses by $70M: revenue +2.1% y/y: guides Q1 adjusted EPS $0.15-$0.17 vs consensus $0.17
• CNP:Q4 EPS of $0.26 beats by $0.03: revenue of $1.79B misses by $1.22B: revenue -24.5% y/y: reaffirms FY16 EPS of $1.12-$1.20 vs consensus $1.11
• BID: Q4 EPS of $1.19 beats by $0.05: revenue of $335.82M beats by $4.68M: revenue -4.4% y/y: issues warning on forward earnings
• AMT: Q4 FFO of $1.27 beats by $0.04: revenue of $1.26B beats by $30M: revenue +22.3% y/y: guides FY16 AFFO $2.355B-$2.455B: currency fluctuations pressuring revenue

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• MYCC: upgrade: market perform to outperform: Wells Fargo
• MNST: upgrade: outperform to buy: CLSA: pt cut from $170 to $150
• FLTX: upgrade: in-line to outperform: Imperial Capital: pt cut from $60 to $50
• TS: upgrade: sell to neutral: Credit Suisse: 
• TRGP: upgrade: sell to neutral: Credit Suisse: $33
• ACHN: upgrade: perform to outperform: Baird: $10
• DISH: upgrade: sell to hold: HSBC: $47
• SPXC: upgrade: sell to hold: Deutsche Bank: $10
• KHC: upgrade: neutral to overweight: JP Morgan: pt raised from $78 to $85

DOWNGRADES:

• BBY: downgrade: overweight to neutral: Piper Jaffray: pt cut from $34 to $31
• TUP: downgrade: overweight to sector weight: KeyBanc
• BXP: downgrade: overweight to equal weight; Capital One: pt cut from $145 to $133
• RSE: downgrade: buy to hold: Canaccord: pt cut from $22 to $18
• CWT: downgrade: outperform to neutral: Baird: pt cut from $26 to $24
• HNT: downgrade: buy to neutral: Sterne Agee
• DGI: downgrade: buy to neutral: Chardan Capital
• SWN: downgrade: hold to underperform: Jefferies: pt cut from $11 to $4
• AWR: downgrade: neutral to sell: Ladenburg: $40
• PRAA: downgrade: buy to neutral: Janney Capital: pt cut from $47 to $31
• AWK: downgrade: buy to neutral: Janney Capital
• OMF: downgrade: buy to neutral: Compass Point: pt cut from $64 to $30
• EME: downgrade: buy to neutral: DA Davidson: pt cut from $52 to $50
• EURN: downgrade: buy to hold: Deutsche Bank: $8.50
• GG: downgrade: hold to sell: Deutsche Bank: $13.50
• PPHM: downgrade: buy to neutral: Roth Capital:
• RIG: downgrade: buy to hold: Deutsche Bank: pt cut from $12 to $6
• KO: downgrade: buy to neutral: Sterne Agee
• VIPS: downgrade: outperform to neutral: Credit Suisse
• BID; downgrade: outperform to market perform: Barrington Research
• STN: downgrade: outperform to market perform: Raymond James:
• TNK: downgrade: buy to hold: Deutsche Bank: pt cut from $6 go $5

INITIATIONS:

• MO: initiated: neutral: UBS: $63
• AVGO: initiated: buy: B Riley: $175
• RKUS: initiated: buy: BTIG: $13
• SPWR: initiated: outperform: Northland: $27
• CRUS: initiated: buy: Topeka Capital: $42
• MXL: initiated: buy: Topeka Capital: $20
• AZN: initiated: buy: Cantor: 
• SHPG: initiated: buy: Cantor: 
• SYN: initiated: outperform: FBR Capital: $10
• CNX: assumed: outperform: FBR Capital: $21

PRICE TARGET CHANGES:

• BBY: pt raised from $35 to $38: Telsey Advisory Group
• KSS: pt raised from $49 to $54: Telsey Advisory Group
• SGMS: pt raised from $7 to $8: Telsey Advisory Group
• SFM: pt raised from $27 to $31: Stifel
• SPLK: pt raised from $45 to $51: Stifel
• SPLK: pt raised from $67 to $72: Maxim Group
• RSPP: pt raised from $26 to $29: Wunderlich
• JCP: pt raised from $18 to $20: Piper Jaffray (reaffirms Top Pick)
• VSTO: pt raised from $57 to $60: Wunderlich
• TRGP: pt raised from $20 to $24: Wunderlich
• CCOI: pt raised from $38 to $40: RBC Capital
• INTU: pt raised from $91 to $93: RBC Capital
• PANW: pt raised from $185 to $195: RBC Capital
• TREX: pt cut from $54 to $50: FBR Capital
• NSM: pt cut from $19 to $15: FBR Capital
• TWOU: pt cut from $40 to $36: Compass Point
• PN: pt cut from $17 to $13: Compass Point
• ESPR: pt cut from $18 to $13: Chardan Capital
• GLOG: pt cut from $30 to $20: Cowen
• XPO: pt cut from $41 to $31: Cowen
• PFMT: pt cut from $3 to $2.50: Compass Point
• WLL: pt cut from $7 to $4: Wunderlich
• PTXP: pt cut from $15 to $12: Wunderlich
• PGTI: pt cut from $12 to $11: RBC Capital
• BMRN: pt cut from $155 to $125: RBC Capital
• SNAK: pt cut from $13 to $10: Wunderlich
• LGF: pt cut from $42 to $41: Topeka Capital
• CLVS: pt cut from $45 to $30: Stifel
• BUD: pt cut from $145 to $138: Stifel
• PANW: pt cut from $202 to $171: Needham