DAILY US EQUITY OPENING NEWS – Dr Pepper Snapple (DPS) – The drinks manufacturer and Keurig Green Mountain are to merge

29th January 2018

EARNINGS

Adient (ADNT) – Q1 Adj. EPS USD 1.06, vs Exp. USD 1.32, revenue USD 4.2bln vs Exp. 4.24bln. (Newswires)

Dominion Energy Inc (D) – Q4 EPS USD 0.91 vs. Exp. USD 0.89, revenue USD 3.21bln vs. Exp. USD 3.47bln. (Newswires)

DST Systems (DST) – Q4 Adj. EPS USD 1.11, Vs Exp. USD 0.84, revenue USD 552.7mln vs Exp. 552.7mln. (Newswires)

Lockheed Martin Corp (LMT) – Q4 Adj. EPS USD 4.30 vs. Exp. USD 4.07, revenue USD 15.10bln vs. Exp. USD 14.73bln. (Newswires)

Seagate (STX) – Q2 Adj. EPS USD 1.48 vs Exp. 1.35, revenue USD 2.91bln vs Exp. USD 2.86bln. (Newswires)

Westrock (WRK) – Q1 Adj. EPS USD 0.87, vs Exp. USD 0.77, revenue USD 3.89bln vs Exp. 3.93bln. (Newswires)

 

DJIA

Apple (AAPL) – The tech giant is to halve its iPhone X production volume in Q1 to 20mln units. Of note for the co. as AMS Raises Guidance, supporting strong 3D sensing growth. Of note, for Apple Supplier AMS shares rise due to the success of the new iPhone helped double its FY revenues. (Nikkei / FT)

Intel (INTC) – The co. warned Chinese companies of security flaws in its chips before the US government. (Newswires)

IBM (IBM) – The co. is planning to increase promotion of its Cloud business in Taiwan this year. (DigiTimes)

 

S&P 500

AbbVie Inc (ABBV) – The co. was not made responsible in the federal jury in Chicago on Friday regarding a claim made by a man from Arizona who encountered pulmonary embolism effects following the consumption of the testosterone drug called AndroGel. The drug has been subject to thousands of lawsuits recently. (Newswires)

Carlyle Group (CG) – The co. has a first option to acquire the interest of NEP Group, which is potentially going to be put up for sale from Crestview Partners as they own most of NEP. (Newswires)

Citigroup (C) / Twitter (TWTR) – Saudi Prince Alwaleed has been released, who has a stake in the companies. (Newswires)

Dr Pepper Snapple (DPS) – The drinks manufacturer and Keurig Green Mountain are to merge, Further, Dr Pepper shareholders will receive a special cash dividend of USD 103.75/shr and are to retain 13% of the combined company which will be led by Keurig’s CEO, Bob Gamgort. (Newswires)

FedEx (FDX) – The co. affirms its long-term targets. (Newswires)

Ford (F) – The automaker announced Jason Luo, the Ford China chairman and CEO is resigning immediately. (Newswires)

Hershey (HSY) / Mondelez (MDLZ) – The companies are hoping returns will be boosted due to a shift of healthier snacks. (Newswires)

JB Hunt (JBHT) – The co. forecasts its FY18 consolidated revenue growth at 11%-15%. (Newswires)

Lowes (LOW) – The retailer announced a new USD 5bln share repurchase program. (Newswires)

Yum Brands (YUM) – The co. raises its quarterly dividend by 20% to USD 0.36. (Newswires)

 

NASDAQ 100

Alphabet (GOOG) – The tech giant made an investment into an Indonesian start up, Go-Jek. The co. itself did not specify an amount, however some sources are citing USD 100mln. Separately, YouTube served ads with CPU- draining cryptocurrency miners. (Newswires / ArsTechinca)

Celgene (CELG) – The co. and Actavis, entered into a settlement agreement to terminate the pending patent litigation and IPR regarding Abraxane. (Newswires)

Facebook (FB) – The social media co. is said to release the first privacy principles and offer educational videos for protecting users’ information as it prepares for a complex EU data protection law. (Newswires)

Global Payment names (PYPL, AAPL, BABA) – Softbank is considering a plan to form a digital payments system to compete with the companies. (Newswires)

Mylan (MYL) – The co. and Biocon received a positive opinion for Semglee from the European Medicines Agency’s Committee for Medicinal products for Human Use. Separately, The co. and Theravance (TBHP) announced the FDA accepted its New Drug Application for revefenacin,  (Newswires)

Netflix Inc (NFLX) – The streaming giant is close to finalise an agreement with Telefonica which will allow the Spanish telecommunication network to introduce US content as part of the service. (Newswires)

Network Names (T, S, TMUS and VZ) – The Trump administration is considering nationalising 5G network. (Axios)

Tech Names (FB, GOOG) – Amazon’s (AMZN) ad business could threaten tech competitors, further the tech names are preparing for EU new data privacy rules. (WSJ / NYT)

Wynn Resorts (WYNN) – The Gaming Commission in Massachusetts announced its plan to open review the Wynn Boston Harbour project following reports of sexual misconduct against Steve Wynn. Further, Nevada Gaming are also reviewing the situation, and Steve Wynn resigned from finance chair of Republican Party’s fundraising arm following the allegations and other Republicans are looking to distance themselves from the CEO. (CBS / Newswires / WSJ)

 

OTHER NEWS

Alibaba (BABA) – The Chinese online retail giant and Foxconn are to invest USD 348mln into Xiaopeng, a Chinese electric car maker. Separately, it will set up a traffic control system harnessing AI for Kuala Lumpur, the capital of Malaysia. (WSJ)

Amicus (FOLD) – The therapeutics co. announces the Common Drug Review has posted that the Canadian Drug Expert Committee’s recommendation of Galafold. (Newswires)

Avon Products (AVP) – Shah Capital, Barington Capital and NuOrion Partners, who hold a 3.5% stake in the co. are urging Avon to explore a sale. (WSJ)

Boston Beer Co. (SAM) – The Sam Adams beer brand is not rushing a search for CEO. (Newswires)

Deutsche Bank (DB) – The bank is to boost bonuses to over USD 1.2bln. (Newswires)

Diebold Nixdorf Inc (DBD) – NCR Corp. and the co. have warned cybersecurity lawmakers that cash machines are becoming a target for criminals who employ tools that force the machineries to release cash in a hacking plan called ‘jackpotting’. (Newswires)

KapStone Paper (KS) – The co. is to be acquired by WestRock (WRK) for USD 35/shr at a value of 4.9bln. (Newswires)

Marvell (MRVL) – The co. announced the expiration of HSR period for acquisition of Cavium closed on Friday 26th at 11.59pm. (Newswires)

Office Depot (ODP) – The co. announced it is using Oracle Cloud Applications to modernise its IT systems. (Newswires)

Pinnacle Foods (PF) – Third Point has taken a stake in the food manufacturing co. and is seeking a meeting with the management of the co. (newswires)

Sanofi (SNY) – The co. is to acquire Ablynx (ABLX) for EUR 3.9bln, further Novo Nordisk (NVO) are not making a revised proposal to acquire Ablynx following Sanofi’s acquisition. (Newswires)

SQM (SQM) – Tesla (TSLA) are in talks with the co. over a lithium investment. (FT)

Barron’s positive on: Goldman Sachs (GS), Biotech names (BIIB, CELG, ABBV)

Barron’s negative on: Snap-On (SNA), First Solar (FSLR)

 

BROKER MOVES

Upgrades

ALLERGAN (AGN) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS

DIGITAL REALTY (DLR) UPGRADED TO NEUTRAL FROM SELL AT UBS

ECHO GLOBAL (ECHO) UPGRADED TO NEUTRAL FROM SELL AT UBS

EQUINIX (EQIX) UPGRADED TO BUY FROM NEUTRAL AT UBS

EQUITY RESIDENTIAL (EQR) UPGRADED TO IN LINE FROM UNDERPERFORM AT EVERCORE ISI

HALLIBURTON (HAL) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT ATLANTIC EQUITIES

JACOBS ENGINEERING (JEC) UPGRADED TO BUY FROM NEUTRAL AT UBS

KINDER MORGAN (KMI) UPGRADED TO BUY FROM HOLD AT ARGUS

MATSON (MATX) UPGRADED TO BUY FROM NEUTRAL AT SEAPORT GLOBAL

MOMO (MOMO) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN

MOOG (MOG.A) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT COWEN

NATIONAL GRID (NGG) UPGRADED TO OUTPERFORM FROM NEUTRAL AT EXANE BNP PARIBAS

REGENCY CENTERS (REG) UPGRADED TO BUY FROM NEUTRAL AT BTIG

RUTH’S HOSPITALITY (RUTH) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT RAYMOND JAMES

RSP PERMIAN (RSPP) UPGRADED TO BUY FROM ACCUMULATE AT JOHNSON RICE

SIRIUSXM (SIRI) UPGRADED TO BUY FROM NEUTRAL AT CITI

UNILEVER (UN) UPGRADED TO BUY FROM HOLD AT INVESTEC

WESTERN ALLIANCE (WAL) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT WELLS FARGO

 

Downgrades

ABBVIE (ABBV) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT LEERINK

ABBVIE (ABBV) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT BMO CAPITAL

AIR PRODUCTS (APD) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT

ALLIANCE DATA (ADS) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT COWEN

ANTERO RESOURCES (AR) DOWNGRADED TO OUTPERFORM FROM STRONG BUY AT RAYMOND JAMES

APPLIED OPTOELECTRONICS (AAOI) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT PIPER JAFFRAY

BLACKHAWK (HAWK) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES

CARBO CERAMICS (CRR) DOWNGRADED TO IN LINE FROM OUTPERFORM AT EVERCORE ISI

CBS (CBS) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO

DIAGEO (DEO) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC CAPITAL

FINISAR (FNSR) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT PIPER JAFFRAY

HELMERICH & PAYNE (HP) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BERNSTEIN

HILLTOP HOLDINGS (HTH) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT STEPHENS

NEOPHOTONICS (NPTN) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT PIPER JAFFRAY

NORTHERN DYNASTY (NAK) DOWNGRADED TO HOLD FROM SPECULATIVE BUY AT TD SECURITIES

ONCOBIOLOGICS (ONS) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS

RANGE RESOURCES (RRC) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT RAYMOND JAMES

TECHNIPFMC (FTI) DOWNGRADED TO HOLD FROM BUY AT SOCIETE GENERALE

YPF (YPF) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE

 

Initiations

CENTENNIAL RESOURCE DEVELOPMENT (CDEV) INITIATED WITH A BUY AT GUGGENHEIM

CYNERGISTEK (CTEK) INITIATED WITH A BUY AT ROTH CAPITAL

PEPSICO (PEP) INITIATED WITH A HOLD AT SUNTRUST

PROTAGONIST THERAPEUTICS (PTGX) INITIATED WITH A BUY AT STIFEL

PTC THERAPEUTICS (PTCT) ASSUMED WITH A SECTOR PERFORM AT RBC CAPITAL

QIAGEN (QGEN) INITIATED WITH A BUY AT GOLDMAN SACHS

QUEST DIAGNOSTICS (DGX) INITIATED WITH A BUY AT GOLDMAN SACHS

RADIUS HEALTH (RDUS) INITIATED WITH AN OVERWEIGHT AT MORGAN STANLEY

SYNLOGIC (SYBX) INITIATED WITH AN OVERWEIGHT AT PIPER JAFFRAY

ZYNERBA (ZYNE) INITIATED WITH A BUY AT LADENBURG

 

Ex-Dividends

Bank of New York Mellon Corp (BK) – USD 0.24 

Conagra Brands Inc (CAG) – USD 0.21 

Ford Motor Co (F) – USD 0.15 

 

 

(RANsquawk)