ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Nonfarm payrolls for December at 8:30--consensus up 245K
Unemployment rate for December at 8:30--consensus 5.7%
Wholesale trade inventories for November at 10:00--consensus up 0.3%
Wholesale trade sales for November at 10:00--consensus flat
ANALYST RESEARCH
Upgrades
AECOM (ACM) upgraded to Overweight from Equal Weight at Barclays
Advanced Energy (AEIS) upgraded to Buy from Hold at Needham
Advanced Energy (AEIS) upgraded to Buy from Neutral at BofA/Merrill
Allegiant Travel (ALGT) upgraded to Neutral from Underperform at BofA/Merrill
Booz Allen (BAH) upgraded to Buy from Neutral at BofA/Merrill
Calpine (CPN) upgraded to Outperform from Sector Perform at RBC Capital
Crescent Point Energy (CPG) upgraded to Overweight from Equal Weight at Barclays
Edison International (EIX) upgraded to Outperform from Sector Perform at RBC Capital
Energizer (ENR) upgraded to Buy from Hold at Jefferies
Exelon (EXC) upgraded to Outperform from Sector Perform at RBC Capital
Fiat Chrysler (FCAU) upgraded to Neutral from Underperform at Credit Suisse
Gaming and Leisure Properties (GLPI) upgraded to Overweight from Neutral at JPMorgan
Merck KGaA (MKGAY) upgraded to Outperform from Neutral at Credit Suisse
Mobile Mini (MINI) upgraded to Buy from Neutral at SunTrust
Noble Corp. (NE) upgraded to Outperform from Sector Perform at RBC Capital
PG&E (PCG) upgraded to Buy from Fair Value at CRT Capital
Pengrowth Energy (PGH) upgraded to Overweight from Equal Weight at Barclays
Pier 1 Imports (PIR) upgraded to Outperform from Neutral at Credit Suisse
Plains All American (PAA) upgraded to Buy from Hold at Jefferies
Plains GP Holdings (PAGP) upgraded to Buy from Hold at Jefferies
Schnitzer Steel (SCHN) upgraded to Hold from Underperform at Jefferies
Towers Watson (TW) upgraded to Buy from Neutral at Citigroup
Veolia Environment (VE) upgraded to Neutral from Underperform at Credit Suisse
Voya Financial (VOYA) upgraded to Outperform from Market Perform at Wells Fargo
Westpac Banking (WBK) upgraded to Buy from Neutral at BofA/Merrill
Yelp (YELP) upgraded to Buy from Neutral at BofA/Merrill
Downgrades
ACE Limited (ACE) downgraded to Market Perform from Outperform at Wells Fargo
Advance Auto Parts (AAP) downgraded to Outperform from Top Pick at RBC Capital
Akamai (AKAM) downgraded to Neutral from Buy at B. Riley
Alexandria Real Estate (ARE) downgraded to Neutral from Buy at UBS
Anixter (AXE) downgraded to Hold from Buy at BB&T
Astoria Financial (AF) downgraded to Neutral from Buy at Guggenheim
Becton dikkinson (BDX) downgraded to Neutral from Buy at SunTrust
Bruker (BRKR) downgraded to Underperform from Market Perform at Cowen
CMS Energy (CMS) downgraded to Sector Perform from Outperform at RBC Capital
Conatus (CNAT) downgraded to Neutral from Overweight at Piper Jaffray
Cornerstone OnDemand (CSOD) downgraded to Neutral from Buy at Goldman
Crocs (CROX) downgraded to Neutral from Overweight at Piper Jaffray
dikk's Sporting (DKS) downgraded to Neutral from Outperform at RW Baird
dikk's Sporting (DKS) downgraded to Neutral from Positive at Susquehanna
E2open (EOPN) downgraded to Hold from Buy at Benchmark Co.
E2open (EOPN) downgraded to Hold from Buy at Canaccord
Enerplus (ERF) downgraded to Equal Weight from Overweight at Barclays
FibroGen (FGEN) downgraded to Neutral from Buy at Goldman
Foot Locker (FL) downgraded to Neutral from Outperform at Credit Suisse
Helmerich & Payne (HP) downgraded to Hold from Buy at KeyBanc
Legacy Oil + Gas (LEGPF) downgraded to Underweight from Equal Weight at Barclays
MKS Instruments (MKSI) downgraded to Underperform from Neutral at BofA/Merrill
McDermott (MDR) downgraded to Equal Weight from Overweight at Barclays
Millicom (MIICF) downgraded to Neutral from Overweight at JPMorgan
Nabors Industries (NBR) downgraded to Hold from Buy at KeyBanc
National Fuel (NFG) downgraded to Hold from Buy at Jefferies
Nuance (NUAN) downgraded to Sell from Neutral at Goldman
O'Reilly Automotive (ORLY) downgraded to Sector Perform from Outperform at RBC Capital
Pinnacle West (PNW) downgraded to Underperform from Sector Perform at RBC Capital
Polaris Industries (PII) downgraded to Market Perform from Outperform at BMO Capital
Qlik Technologies (QLIK) downgraded to Neutral from Buy at Goldman
Ralph Lauren (RL) downgraded to Neutral from Buy at Janney Capital
Rowan Companies (RDC) downgraded to Sector Perform from Outperform at RBC Capital
Stanley Black & Decker (SWK) downgraded to Neutral from Buy at Longbow
Staples (SPLS) downgraded to Neutral from Outperform at Credit Suisse
Starwood (HOT) downgraded to Neutral from Overweight at JPMorgan
Unitil (UTL) downgraded to Underperform from Sector Perform at RBC Capital
Webster Financial (WBS) downgraded to Neutral from Buy at Guggenheim
Wright Medical (WMGI) downgraded to Hold from Buy at Needham
Xcel Energy (XEL) downgraded to Sector Perform from Outperform at RBC Capital
Zimmer (ZMH) downgraded to Neutral from Buy at SunTrust
Initiations
Acceleron (XLRN) initiated with a Buy at Janney Capital
Amicus Therapeutics (FOLD) coverage resumed with a Buy at Janney Capital
Baker Hughes (BHI) initiated with a Hold at KeyBanc
Baker Hughes (BHI) initiated with an Overweight at Barclays
Cameron (CAM) initiated with a Hold at KeyBanc
Cameron (CAM) initiated with an Equal Weight at Barclays
Cara Therapeutics (CARA) initiated with a Buy at Canaccord
Chico's FAS (CHS) initiated with a Neutral at Wedbush
Dril-Quip (DRQ) initiated with an Underweight at Barclays
FMC Technologies (FTI) initiated with a Hold at KeyBanc
FMC Technologies (FTI) initiated with an Overweight at Barclays
Forum Energy (FET) initiated with an Underweight at Barclays
Halliburton (HAL) initiated with a Hold at KeyBanc
Halliburton (HAL) initiated with an Overweight at Barclays
Keurig Green Mountain (GMCR) initiated with a Buy, $182 target at UBS
Kite Pharma (KITE) initiated with a Buy at Mizuho
Lear (LEA) resumed with a Buy at Citigroup
Mead Johnson (MJN) initiated with a Buy at Nomura
National Oilwell (NOV) initiated with a Buy at KeyBanc
National Oilwell (NOV) initiated with an Overweight at Barclays
Novavax (NVAX) initiated with a Buy at Janney Capital
Onconova (ONTX) coverage resumed with a Neutral at Janney Capital
Regeneron (REGN) initiated with a Buy at Janney Capital
Sally Beauty (SBH) initiated with a Neutral at Nomura
Schlumberger (SLB) initiated with a Hold at KeyBanc
Schlumberger (SLB) initiated with an Equal Weight at Barclays
Superior Energy (SPN) initiated with an Equal Weight at Barclays
Ulta Salon (ULTA) initiated with a Neutral at Nomura
Vanda (VNDA) initiated with a Buy at Canaccord
Vertex (VRTX) coverage resumed with a Neutral at Janney Capital
Weatherford (WFT) initiated with a Hold at KeyBanc
Weatherford (WFT) initiated with an Equal Weight at Barclays
COMPANY NEWS
Starbucks (SBUX) COO Troy Alstead, a 23-year veteran of the company who also served for many years as the company’s CFO, is taking an extended unpaid leave from the company. His last day in his current role will be March 1
Trian Fund Management, one of the largest stockholders of DuPont (DD), announced that it has nominated four candidates for election to the DuPont board at the 2015 annual meeting of stockholders
Macy's (M) announced initiatives to to evolve its business model and invest in continued growth opportunities, including a restructuring of merchandising and marketing functions at Macy’s and Bloomingdale’s. Additionally, the retailer will close 14 stores. The changes are estimated to generate savings of approximately $140M per year, beginning in 2015
XL Group (XL) announced the acquisition of Catlin Group for 388p in cash and 0.13 share of XL for each Catlin common share. The deal is expected to create double digit EPS accretion
Revance Therapeutics (RVNC) said a RT002 Phase 1/2 study met efficacy and safety endpoints
Gap (GPS) reported holiday SSS up 3%, December SSS up 1%
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Infosys (INFY), SandRidge Energy (SD), VOXX (VOXX), Bed Bath & Beyond (BBBY), AngioDynamics (ANGO), E2open (EOPN), Barracuda Networks (CUDA), Helen of Troy (HELE)
Companies that missed consensus earnings expectations include:
PriceSmart (PSMT)
Companies that matched consensus earnings expectations include:
Franklin Covey (FC), Ruby Tuesday (RT), Container Store (TCS)
Macy's (M) backs FY14 EPS view $4.25-$4.35, consensus $4.36 and narrowed Q4 SSS view to up 2.5%-3% from prior view of up 2%-3%
AbbVie (ABBV) sees FY15 adjusted EPS $4.25-$4.45, consensus $4.30
Bed Bath & Beyond (BBBY) sees EPS approximately $1.78-$1.83, consensus $1.80, sees Q4 net sales up 4.4%-5.4%, consensus $3.37B. The company sees FY14 EPS approximately $5.05-$5.09, consensus $5.04, and FY14 net sales up 3.4%-3.6%, consensus $11.93B
NEWSPAPERS/WEBSITES
Gilead (GILD) struck a Hepatitis C deal with Anthem (ANTHM), Bloomberg reports
GoPro (GPRO) international expansion to focus on China, Financial Times reports
Wet Seal (WTSL) could file for bankruptcy next week, source says, WSJ reports
McDonald's (MCD) to eliminate 63 positions at corporate headquarters, Reuters reports
Samsung (SSNLF) grabs processor orders for Apple Watch (AAPL), DigiTimes reports
Bank of America (BAC) is a buy ahead of earnings, Barrons says
Ford (F) shares could go higher, Barron's says
SYNDICATE
Alcobra (ADHD) files to sell common stock
BreitBurn Energy (BBEP) files to sell 19.74M common units representing limited partners
Golar LNG Partners (GMLP) files to sell 7.17M shares of common stock for partners
Medical Properties Trust (MPW) 30M share Secondary priced at $14.50
Otonomy (OTIC) files to sell $75M of common stock
Star Bulk Carriers (SBLK) files to sell $200M in common stock
Stifel Financial (SF) files automatic mixed securities shelf
SunEdison Semiconductor (SEMI) files to sell 12M ordinary shares for holders
