RANsquawk Daily US Equity Opening News – 9th November 2018

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Activision Blizzard Inc (ATVI) Q3 Adj. EPS USD 0.42 vs. Exp. USD 0.50, revenue USD 1.51bln vs. Exp. USD 1.66bln Walt Disney Co (DIS) Q4 EPS Excluding Items USD 1.48 vs. Exp. USD 1.34, revenue USD 14.3bln vs. Exp. USD 13.73bln Tobacco names (BAT, PM, MO) – The FDA is clamping down on e-cigarettes 9th November 2018

Earnings

Activision Blizzard Inc (ATVI) Q3 Adj. EPS USD 0.42 vs. Exp. USD 0.50, revenue USD 1.51bln vs. Exp. USD 1.66bln. Sees Q4 Adj.EPS USD 0.64 vs. Exp. USD 1.34 due in part to weakness in “Destiny”, backs FY18 Adj. EPS view USD 2.46 vs. Exp. USD 2.64. (Newswires) CenturyLink Inc (CTL) Q3 EPS USD 0.25 vs. Exp. USD 0.30, revenue USD 5.82bln vs. Exp. USD 5.88bln. (Newswires) Drop Box (DBX) Q3 EPS USD 0.11 vs. Exp. USD 0.06, revenue USD 0.360bln vs. Exp. USD 0.352bln. (Newswires) Hertz (HTZ) Q3 adj. EPS USD 2.14 vs. Exp. USD 1.71, revenue USD 2.8bln vs. Exp. USD 2.68bln. (Newswires)   Mettler-Toledo International Inc (MTD) Q3 EPS USD 5.12 vs. Exp. USD 5.00, revenue USD 0.734bln vs. Exp. USD 0.74bln. (Newswires) Perrigo Company PLC (PRGO) Q3 EPS USD 1.09 vs. Exp. USD 1.01, revenue USD 1.13bln vs. Exp. USD 1.16bln. (Newswires) Praxair (PX) Q3 Adj. EPS USD 1.69 vs Exp. USD 1.70, revenue USD 3.02bln vs Exp. USD 3.07bln. (Newswires) Skyworks Solutions Inc (SWKS) Q3 EPS USD 1.94 vs. Exp. USD 1.92, revenue USD 1.01bln vs. Exp. USD 1bln. (Newswires) Trade Desk (TTD) Q3 EPS USD 0.65 vs. Exp. USD 0.50, revenue USD 0.118bln vs. Exp. USD 0.117bln. (Newswires) Walt Disney Co (DIS) Q4 EPS Excluding Items USD 1.48 vs. Exp. USD 1.34, revenue USD 14.3bln vs. Exp. USD 13.73bln. CEO Bob Iger unveiled a new streaming service called Disney+ rivalling Netflix (NFLX). Optimistic Fox (FOXA) acquisition will close earlier than expected. (Newswires) Yelp (YELP) Q3 EPS USD 0.17 vs. Exp. USD 0.10, revenue USD 0.241bln vs. Exp. USD 0.245bln. The co. predicted a disappointing holiday period. (Newswires) DJIA

American Express (AXP) – The PBoC has given approval to the bank for a clearing and settlement license in mainland China. (Newswires) Boeing (BA) – The aerospace co. has had one of its 757 planes crashed, under operation by Jamaica Airways heading towards Toronto, where it suffered from a hydraulic issue after take-off, six passengers were injured. (Newswires) Exxon Mobil (XOM) – S&P Global Platts has added the co.’s EXTAP unit to its Asia Market On Close assessment process for Asian oil markets. (Newswires) Merck (MRK) – The pharma giant, alongside the Tokyo-based Eisai, released “encouraging” data from their Phase 2 study of the combination of Merck’s Keytruda and Eisai’s Lenvima, for the treatment of various cancer types. (Newswires) Microsoft (MSFT) – Microsoft has won business from retailer Gap (GPS), over Amazon (AMZN), for its Azure to be its primary cloud provider. (CNBC) Procter & Gamble (PG) – The consumer goods co. has announced it will continue efforts to deliver stronger, balanced growth and value creation by simplifying its organisation structure, more specifically its management structure. (Newswires) Walmart (WMT) – Baird have said they expect strong performance from the retailer, vs. its comps, after it gave a bullish tone at an investor meeting. (Newswires) S&P500

Archer-Daniels-Midland (ADM) – The agricultural and food co. has approached Argentina’s Molinos Agro to make an offer for its livestock feed and soy oil manufacturing plant. (Newswires) Bank of America (BAC) – The bank has reportedly spent USD 300mln-400mln in preparing for a hard Brexit, with plans for a hub in Dublin and a broker-dealer in Paris. (Newswires) Tobacco names (BAT, PM, MO) – The FDA is clamping down on e-cigarettes, where it plans to remove them from many retailers and to enforce strict age verification measures. (WSJ) General Electric (GE) – JP Morgan lowers its price target on the stock to USD 6 from USD 10 following the release of its quarterly earnings which were worse than expected on “almost all fronts”. (Newswires) Linde (LIN), Phillips 66 (PSX) – Linde’s Praxair unit has reached an agreement to supply Phillips 66’s Sweeney refinery, Texas with high-purity hydrogen, beginning in 2021. (Newswires) Target (TGT) – Baird have said that the co.’s recent strategic investments have put it into a strong position for the holiday season. (Newswires) Twitter (TWTR) – The social media co.’s co-founder, Ev Williams, said he regrets putting in a follower count on user profiles as he believes it is detrimental to health. (Recode) United Continental (UAL) – The airline reported October (vs. October 2017) traffic increased by 7.5%, consolidated capacity increased by 5.9% and load factor increased by 1.2 points. (Newswires) NASDAQ

Alphabet (GOOGL) – The tech giant has hired the Geisinger Health CEO, David Feinberg, to oversee the co.’s healthcare. (Newswires) Amazon (AMZN) – The online retailer’s cloud computing unit has defended its marketing of its facial recognition technology, Rekognition, to law enforcement. (BuzzFeed) Facebook (FB) – The co. has said that its new Portal device, a smart-speaker, is not a “data-gathering operation” and won’t be used for ad-targeting. Elsewhere, the co. said it has removed over 14mln pieces of terrorist content this year alone. (Newswires) Gilead (GILD) – The pharmaceutical announces positive results for GS-9674 Phase 2 for the treatment of PSC which was granted orphan drug designation by the FDA at the Liver Meeting 2018. The treatment was discontinued due to adverse events in three patients. (Newswires) Netflix (NFLX) – The movie streaming co. is working on 17 new original productions in Asia as announced at an event in Singapore on Thursday. (Newswires) Tesla (TSLA) – Investor Ron Baron said he was pleased with the new Chair Robyn Denholm, as he likes woman executives. (CNBC) OTHER NEWS

II-VI (IIVI), Finisar (FNSR) – Optical products co. II-VI is to acquire other optics co. Finisar for a cash and stock deal valued at USD 3.2bln. (Newswires) Alibaba (BABA) – The Chinese tech giant’s payments unit, Alipay, is in talks with the football body UEFA, where it will be used to take payments at its events. (CNBC) BROKER MOVES

Upgrades

ARCELORMITTAL (MT) UPGRADED TO NEUTRAL FROM SELL AT UBS ARRIS (ARRS) UPGRADED TO NEUTRAL FROM SELL AT GOLDMAN SACHS AXON (AAXN) UPGRADED TO OUTPERFORM FROM NEUTRAL AT BAIRD BROOKFIELD (BAM) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE CADENCE BANCORP (CADE) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE CANNAE HOLDINGS (CNNE) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT PIPER JAFFRAY CLOUDERA (CLDR) UPGRADED TO BUY FROM NEUTRAL AT ROSENBLATT COLUMBIA BANKING (COLB) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE CREE (CREE) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN SACHS CROWN HOLDINGS (CCK) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL ENDO (ENDP) UPGRADED TO BUY FROM HOLD AT CANACCORD EQGP HOLDINGS (EQGP) UPGRADED TO BUY FROM HOLD AT JEFFERIES FCB FINANCIAL (FCB) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE GARDNER DENVER (GDI) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY MOMO (MOMO) UPGRADED TO BUY FROM HOLD AT 86 RESEARCH MONSTER BEVERAGE (MNST) UPGRADED TO CONVICTION BUY FROM BUY AT GOLDMAN SACHS NOODLES & COMPANY (NDLS) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT PIPER JAFFRAY OWENS-ILLINOIS (OI) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL PARTY CITY (PRTY) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS PVH CORP. (PVH) UPGRADED TO NEUTRAL FROM SELL AT GOLDMAN SACHS SANTANDER BRASIL (BSBR) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT MORGAN STANLEY STATE BANK (STBZ) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE SYNOVUS (SNV) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE TCF FINANCIAL (TCF) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE WOODWARD (WWD) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BARRINGTON Downgrades

COMMSCOPE (COMM) DOWNGRADED TO NEUTRAL FROM BUY AT LONGBOW COPA HOLDINGS (CPA) DOWNGRADED TO IN LINE FROM OUTPERFORM AT EVERCORE ISI CTRIP (CTRP) DOWNGRADED TO NEUTRAL FROM BUY AT NOMURA INSTINET CTRIP (CTRP) DOWNGRADED TO NEUTRAL FROM BUY AT UBS CTRIP (CTRP) DOWNGRADED TO UNDERPERFORM FROM BUY AT DAIWA DISCOVERY (DISCA) DOWNGRADED TO IN-LINE FROM OUTPERFORM AT IMPERIAL CAPITAL HIMAX (HIMX) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE HORIZON GLOBAL (HZN) DOWNGRADED TO NEUTRAL FROM BUY AT B. RILEY FBR KEURIG DR PEPPER (KDP) DOWNGRADED TO HOLD FROM BUY AT GABELLI MASTEC (MTZ) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD MCCORMICK (MKC) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE MCCORMICK (MKC) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE MICHAEL KORS (KORS) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE REDFIN (RDFN) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WILLIAM BLAIR SANGAMO (SGMO) DOWNGRADED TO NEUTRAL FROM BUY AT GUGGENHEIM SKYWORKS (SWKS) DOWNGRADED TO NEUTRAL FROM BUY AT B. RILEY FBR SKYWORKS (SWKS) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL SYNAPTICS (SYNA) DOWNGRADED TO SECTOR WEIGHT FROM OVERWEIGHT AT KEYBANC THL CREDIT (TCRD) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES TRIPADVISOR (TRIP) DOWNGRADED TO SELL FROM NEUTRAL AT UBS YELP (YELP) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK YELP (YELP) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES YELP (YELP) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT WEDBUSH YELP (YELP) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN INITIATIONS

DYNAGAS LNG (DLNG) INITIATED WITH A BUY AT B. RILEY FBR FABRINET (FN) RATED NEW BUY AT WILLIAM O’NEIL & CO INCORPORATED INTERNATIONAL SEAWAYS (INSW) INITIATED WITH A NEUTRAL AT B. RILEY FBR KURA ONCOLOGY (KURA) RATED NEW OVERWEIGHT AT PIPER JAFFRAY; PT USD 25 LIVENT (LTHM) RATED NEW BUY AT LOOP CAPITAL; PT USD 22 NORDIC AMERICAN TANKERS (NAT) INITIATED WITH A BUY AT B. RILEY FBR OPERA ADRS (OPRA) RATED NEW BUY AT CICC; PT USD 9.50 RH (RH) RATED NEW OVERWEIGHT AT JPMORGAN; PT USD 155 SCORPIO TANKERS (STNG) INITIATED WITH A NEUTRAL AT B. RILEY FBR SHUTTERFLY (SFLY) RATED NEW SECTOR WEIGHT AT KEYBANC ULTA BEAUTY (ULTA) REINSTATED BUY AT WILLIAM O’NEIL & CO INCORPORATED Ex-Dividends

Buckeye Partners LP (BPL). Amount USD 0.75 Carlyle Group LP (CG). Amount USD 0.42 CIT Group Inc (CIT). Amount USD 0.25 Commerce Bancshares Inc (CBSH). Amount USD 0.35 Exxon Mobil Corp (XOM). Amount USD 0.82 HanesBrands Inc (HBI). Amount USD 0.15 Invesco Ltd (IVZ). Amount USD 0.30 JBG SMITH Properties (JBGS). Amount USD 0.22 MSC Industrial Direct Co Inc (MSM). Amount USD 0.63 PACCAR Inc (PCAR). Amount USD 0.28 Woodward Inc (WWD). Amount USD 0.14 Xilinx Inc (XLNX). Amount USD 0.36 (RANsquawk)