Yellen in Focus | Morning News

FEBRUARY 10, 2016
US futures point to a higher opening, following green arrows in Europe with banks staging a strong rally after Deutsche Bank announced its willingness to a bond buyback. In Asia, while China markets remain closed for the holiday, the Nikkei fell 2.3% but closed well off its lows. Overnight, crude found solid footing after Iran announced it was open to cooperation with Saudi Arabia, although traders remain cautious on the commodity due to the pressure from oversupply. EIA petroleum inventories to be announced at 10:30AM EST. Investors focus today will turn to Janet Yellen's congressional testimony to get any indication of either her dovishness or hawkishness concerning future rate hikes.

NEWS:

• DIS: ESPN and DraftKings end their exclusive relationship, reports the WSJ
• KMPH: KP201/APAP NDA grated priority review by FDA
• CTIC: PDA puts full clinical hold on the company's blood cancer drug
• AMBS: Eltoprazine granted FDA Orphan Drug Designation
• VAL: Valspar to caquire ISVA Vernici
• BK: files automatic securities shelf
• VSAT: files automatic securities shelf
• FIT: Vanguard reports 9.21% stake in Fitbit
• ABBV: Elagolix successful in second late stage study

THE ECONOMIC CALENDAR:

• 7AM: MBA Mortgage Applications
• 10AM: Yellen's Congressional Testimony to begin
• 10:30AM: EIA Petroleum Inventories
• 1PM: $23B, 10 Year Note Auction
• 2PM: Treasury Budge

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• AKAM: Q4 EPS of $0.72 beats by $0.10: revenue of $579.16M beats by $10.44M: revenue +8.0% y/y: announces $1B buyback authorization: reorganization announced: guides Q1 EPS of $0.61-$0.64 vs consensus $0.61
• DIS: FQ1 EPS of $1.63 beats by $0.18: revenue of $15.24B beats by $490M: revenue +13.8% y/y
• SCSC: FQ2 EPS Of $0.88 beats by $0.14: revenue of $993.52M beats by $73.79M: revenue +23.1% y/y: soft Q1 guidance
• PNRA: Q4 EPS of $1.88 beats by $0.10: revenue of $691.77M misses by $3.66M: revenue +2.9% y/y: guides FY16 operating margin down 50-100 bps: guise FY16 adjusted EPS growth 2-5%, consensus $6.54
• WU: Q4 EPS of $0.42 in-line: revenue of $1.38B misses by $20M: revenue -2.1% y/y
• NUAN: FQ1 EPS Of $0.36 beats by $0.03: revenue of $494.87M beats by $3.41M: revenue +1.2% y/y: guides FY16 adjusted EPS $1.41-$1.51 vs consensus $1.43
• RGC: Q4 EPS of $0.36 beats by $0.04: revenue of $848.2M beats by $7.27M: revenue +6.1% y/y
• OTEX: FQ2 EPS of $1.01 beats by $0.11: revenue of $465.3M beats by $2.76M: revenue -0.5% y/y
• AMRK: FQ2 EPS of $0.19 in-line: revenue of $1.53B beats by $30M: revenue -0.6% y/y
• SCTY: Q4 EPS of -$2.37 beats by $0.22: revenue of $115.5M beats by $9.88M: revenue +60.8% y/y: soft guidance: 
• USNA: Q4 EPS of $1.83 misses by $0.16: revenue of $232.6M misses by $6.31M: revenue +2.1% y/y
• MKTO: Q4 EPS of -$.013 beats by $0.10: revenue of $58.3M beats by $0.16M: revenue +37.7% y/y: guides FY16 EPS above consensus
• PAYC: Q4 EPS of $0.10 beats by $0.02: revenue of $65.1M beats by $3.92M: revenue +47.8% y/y: guides Q1 revenue above consensus
• NCR: Q4 EPS of $0.92 beats by $0.05: revenue of $1.68B misses by $20M: revenue -5.1%y/y: guides Q1 EPS $0.30-$0.35 vs consensus $0.52
• RKUS: Q4 EPS of $0.13 in-line: revenue of $100.11M misses by $1.76M: revenue +16.6% y/y: guides Q1 EPS in-line
• CTLT: FQ2 EPS of $0.36 beats by $0.02: revenue of $454.9M beats by $14.64M: revenue -0.2% y/y
• CSC: FQ3 EPS of $0.71 beats by $0.02: revenue of $1.75B misses by $100M: revenue -10.3% y/y: guides FY16 adjusted EPS of $2.40-$2.60 vs consensus $2.60

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• ORBK:Q4 EPS of $0.54 beats by $0.03: revenue of $188.24M misses by $0.48M: revenue -4.7% y/y: guides Q1 revenue $184M-$192M vs consensus $185.96M
• TWX:Q4 EPS of $1.06 bets by $0.05: revenue of $7.08B misses by $450M: revenue -5.9% y/y: guides FY16 adjusted EPS of $5.30-$5.40 vs consensus $5.26: announces new $5B share repurchase program authorization: raises quarterly dividend 15%
• HSIC: Q4 EPS of $1.67 beats by $0.02: revenue of $2.85B beats by $30M; revenue +5.6% y/y: reaffirm FY16 adjusted EPS $6.55-$6.65 vs consensus $6.61
• WIX:Q4 EPS of -$0.13 beats by $0.04: revenue of $56.83M beats by $1.01M; revenue +36.7% y/y: guides FY16 revenue $270M-$275M vs consensus $266.83M
• CG:Q4 EPS of $0.24 misses by $0.07: revenue of $490.9M misses by $38.66M: revenue -24.3% y/y: announces $200M share repurchase authorization
• CRL: Q4 EPS of $1.00 beats by $0.06: revenue of $353.85M beats by $4.65M: revenue +7.4% y/y: guides FY16 adjusted EPS $4.07-$4.17 vs consensus $4.16
• DTE: Q4 EPS of $1.01 beats by $0.02: revenue of $2.49B misses by $680M: revenue -19.2% y/y
• ARMK: FQ1 EPS of $0.50 beats by $0.01: revenue of $3.71B beats by $10M: revenue +0.3% y/y
• SEE: Q4 EPS of $0.76 beats by $0.26: revenue of $1.75B misses by $30M: revenue -11.2% y/y: guides FY16 adjusted EPS $2.52-$2.60 vs consensus $2.57
• OC: Q4 EPS of $0.66 beats by $0.21: revenue of 1.3B in-line: revenue +3.2% y/y

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• AEM, BGC, BRKR, CDE, CLW, CSCO, CTL, CUZ, CYS, EXPE, FLO, FMC, FNFN, HDP, HUBS, IFF, IO, IRBT, JCOM, LGND, LOCK, MYL, O, OHI, IOO, ORLY, PPC, PRI, PRU, PXD, QUIK, REG, RYN, SB, SCI, SKX, TCO, TSLA, TWTR, VNDA, WFM, ZNGA

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• TDG: upgrade: sector perform to outperform: RBC Capital: $253
• KO: upgrade:sell to hold: Societe Generale: pt raised from $37 to $44
• SHPG: upgrade: sector perform to outperform: RBC Capital: $240
• CRM: upgrade: outperform to buy: CLSA
• GT: upgrade: underperform to outperform: CLSA
• DF: upgrade: market perform to outperform: Bernstein: pt raised from $21 to $25
• SPKE: upgrade: neutral to buy: Janney Capital
• AKAM: upgrade: neutral to buy: B Riley: $60
• HES:upgrade: neutral to conviction buy: Goldman: $59
• RDY: upgrade: underperform to buy: CLSA
• SCTY: upgrade: outperform to strong buy: Raymond James: pt cut from $75 to $60
• USBS: upgrade: market perform to outperform: Wells Fargo:pt range $44-$46

DOWNGRADES:

• SALE: downgrade: sector perform to underperform: RBC Capital: pt cut from $12 to $6
• TAHO: downgrade: outperform to sector perform: RBC Capital: pt cut from $15 to $13
• MCC: downgrade: outperform to market perform: FBR Capital: pt cut from $11 to $8.50
• MCC: downgrade: buy to neutral: Citi
• MCC: downgrade: buy to hold: Jefferies: pt cut from $9 to $7
• SCTY: downgrade: buy to neutral: Roth Capital: pt cut from $65 to $19
• PKY: downgrade: buy to hold: Stifel
• P: downgrade: outperform to market perform: Cowen: pt cut from $21 to $9
• CTIC: downgrade: overweight to neutral: Piper Jaffray: pt cut from $4 to $0.75
• RKUS: downgrade: buy to neutral: SunTrust: pt cut from $14 to $8.50
• FSC: downgrade: overweight to neutral: JP Morgan: pt cut from $7 to $6
• ITC: downgrade: outperform to market perform from outperform: Wells Fargo
• KNX: downgrade: buy to hold: Evercore
• XL: downgrade: hold to sell: Deutsche Bank
• AR: downgrade: buy to neutral: Goldman: $26.50
• VLO: downgrade: conviction buy to buy: Goldman
• KB: downgrade: buy to hold: Deutsche Bank: pt cut from $22 to $14
• CMFN: downgrade: strong buy to outperform: Raymond James: pt cut from $16 to $13

INITIATIONS:

• CNDA: initiated: buy: Janney Capital: $12
• LAKE: initiated: buy: Singular Research: $17.50
• TEAM: initiated: neutral: Baird: $23
• IRBT: initiated: buy: Chardan: $42

PRICE TARGET CHANGES:

• WCN: pt raised from $60 to $65: Imperial Capital
• ATSG: pt raised from $11.50 to $12: Cowen
• UTEK: pt raised from $23 to $26: Benchmark Co
• AKAM: pt cut from $58 to $45: Credit Suisse
• AKAM: pt cut from $49 to $42: FBR Capital
• SGEN: pt cut from $44 to $33: Piper Jaffray
• VIAB: pt cut from $70 to $49: Stifel
• SCTY: pt cut from $80 to $65: Stifel
• SCTY: pt cut from $69 to $44: JP Morgan
• PAYC: pt cut from $49 to $35: Stifel
• P: pt cut from $22 to $20: Stifel
• DIS: pt cut from $110 to $101: FBR Capital
• BKD: pt cut from $37 to $25: RBC Capital
• DWRE: pt cut from $51 to $41: Mizuho
• DWRE: pt cut from $64 to $40: FBR Capital
• DWRE: pt cut from $52 to $50: RBC Capital
• GWR: pt cut from $75 to $69: Cowen
• RPXC: pt cut from $17 to $14: Cowen
• FCX: pt cut from $20 to $10: Cowen
• QLYS: pt cut from $49 to $30: Imperial Capital
• CVS: pt cut from $113 to $104: Mizuho
• CDW: pt cut from $51 to $46: RBC Capital
• WU: pt cut from $20 to $18: Compass Point
• REGN: pt cut from $659 to $489: Brean Capital
• REGN: pt cut from $645 to $575: UBS
• PRO: pt cut from 425 to $15: Needham
• BRS: pt cut from $26 to $20: Scotia Howard Weil
• BCOR: pt cut from $23 to $20: Benchmark Co