U.S. Banks Must Raise Capital

U.S. Banks Must Raise Capital. The eight largest banks in the U.S. have to hold an additional $68B in capital to absorb future losses. U.S. regulators voted to raise the "leverage ratio" to 5-6% of their total assets which is above Basel III standard of 3%. The banks affected include Bank of America (BAC), Bank of New York Mellon (BK), Citigroup (C),  Goldman Sachs (GS), JPMorgan Chase (JPM), Morgan Stanley (MS), State Street (ST), Wells Fargo (WFC). The banks will have until January 1, 2018 to comply.

Upgrades:

Alcoa (AA): Deutsche Bank raised their rating from Sell to Hold and placed a target price of $10.00 on the company. Pre-market: 13.01 +0.48 (3.83%)

Berkshire Hathaway (BRK.B): The ReasearchTeam raised their rating from Hold to Accumulate. Pre-market: 123.69 +0.56 (0.45%)

Nike (NKE): Stifel raised their rating from Hold to Buy and placed a target price of $87.00 on the company.

Downgrades:

Apache Corp. (APA): Deutsche Bank lowered their rating from Buy to Hold and placed a target price of $91.00 on the company. Pre-market: 84.70 -0.48 (-0.56%)

Arris Group (ARRS): The Street.com lowered their rating from Buy to Hold.

Credit Suisse (CS): JPMorgan lowered their rating from Neutral to Underweight. Pre-market: 32.27 -0.01 (-0.03%)

Cisco Systems (CSCO): Wunderlich lowered their rating from Buy to Hold and lowered their target price from $25.00 to $24.00.

The Hershey Comp. (HSY): Goldman Sachs lowered their rating from Neutral to Sell and placed a target price of $70.00 on the company. Pre-market: 99.37 -2.35 (-2.31%)

Royal Caribbean (RCL): Pareto lowered their rating from Buy to Hold.

Coverage Initiated:

Ball Corp. (BLL): Credit Suisse initiated coverage with a Neutral rating and target price of $59.00.

Cabela’s (CAB): Credit Suisse initiated coverage with a Neutral rating and target price of $71.00.

CBS Corp. (CBS): JPMorgan initiated coverage with an Overweight rating.

General Motors (GM): JPMorgan initiated coverage with an Underweight rating and target price of $33.00. Pre-market: 33.94 -0.59 (-1.71%)

International Paper (IP): Credit Suisse initiated coverage with an Outperform rating and target price of $67.00.

Intuitive Surgical (ISRG): Sterne Agee initiated coverage with an Underperform rating and target price of $440.00. Pre-market: 438.76 -51.08 (-10.43%)

Kellogg Comp. (K): Nomura initiated coverage with a Buy rating and target price of $70.00.

Earning Reports:

Alcoa (AA): Reported EPS of $0.09 beating estimates by +$0.04. Pre-market: 13.01 +0.48 (3.83%)

Constellation Brands (STZ): Reported EPS of $0.81 beating estimates by +$0.05. Pre-market: 84.75 +3.27 (4.01%)

Progressive (PGR): Reported EPS of $0.54 beating estimates by +$0.15. Pre-market: 24.86 +0.70 (2.90%)

WD-40 (WDFC): Reported EPS of $0.67 missing estimates by -$0.01.

Markets: 
Futures at 8:41: Dow +0.35%. S&P +0.27%. Nasdaq +0.43%. Crude +0.13% to $102.69. Gold -0.37% to $1304.00. U.S. 10 Year -6/32 to 2.705%.

Europe: London +0.8%. Paris +0.4%. Frankfurt +0.4%. 

Asia: Japan -2.1% to 14300. Hong Kong +1.1% to 22843. China +0.3% to 2105. India +1.6% to 22702. 

#RLPaler #TopWealthManager #WallStreet #Stocks #EarningReports #AnalystsUpgradesDowngrades    

Employment Data Stuns Wall Street.

Employment Data Stuns Wall Street. The U.S. employment data for December was released this morning and the results stunned Wall Street. Wall Street economists had estimated that the economy would generate 196,000 new jobs down from Novembers 203,000 jobs. The actual results can in far less, at a terrible 74,000. The unemployment rate fell to 6.7% down from 7%, but analysts say that the decline was due to people giving up on looking for work. The latest data is giving more ammo to those who believe that President Obama’s economic policies are deeply flawed.

Upgrades:

Abercrombie & Fitch (ANF): Janney Capital raised their rating from Neutral to Buy and placed a target price of $49.00 on the company.

Baidu (BIDU): Maxium raised their rating from Hold to Buy and placed a target price of $200.00 on the company.

Macy’s (M): Goldman Sachs raised their rating from Neutral to Buy and raised their target price from $54.00 to $65.00.

Downgrades:

Baker Hughes (BHI): Iberia lowered their rating from Outperform to Sector Perform.

Fossil Group (FOSL): KeyBanc lowered their rating from Hold to Underweight and placed a target price of $100.00 on the company.

Pacific Sunwear (PSUN): Janney Capital lowered their rating from Buy to Neutral.

Pfizer (PFE): Cowen lowered their rating from Outperform to Market Perform.

Schlumberger (SLB): Iberia lowered their rating from Outperform to Sector Perform.

Total SA (TOT): BNP Paribas lowered their rating from Outperform to Neutral.

Whole Foods Market (WWFM): Cleveland Research lowered their rating from Buy to Neutral.

Coverage Initiated:

Micron Tech (MU): Argus initiated coverage with a Buy rating and target price of $31.00.

Precision Cast Parts (PCP): Cleveland Research initiated coverage with a Buy rating and target price of $320.00.

TRW Automotive (TRW): FBR Capital initiated coverage with a Market Perform rating and target price of $75.00.

Visteon (VC): FBR Capital initiated coverage with an Outperform rating and target price of $100.00.

Earning Reports:

Alcoa (AA): Reported EPS of $0.04 missing estimates by -$0.02.

Barracuda Networks (CUDA): Reported EPS of $0.01 beating estimates by +$0.01.

Helen of Troy (HELE): Reported EPS of $1.16 beating estimates by +$0.07.

Infosys (INFY): Reported EPS of $50.32 beating estimates by +3.58.

PriceSmart (PSMT): Reported EPS of $0.71 missing estimates by -$0.03.

Markets: 
Futures at 8:57: Dow +0.20%. S&P +0.07%. Nasdaq +0.24%. Crude +1.64% to $93.18. Gold +0.78% to $1239.20. U.S. 10 Year +17/32 to 2.905%.

Europe: London +0.90%. Paris +0.69%. Frankfurt +0.70%. 

Asia: Japan +0.20% to 15912. Hong Kong +0.26% to 22846. China -0.71% to 2013. India +0.22% to 20758. 

#RLPaler #WallStreet #PreMarket #WealthManagement #EarningReports #AnalystsRatings

Alcoa to Kickoff Q4 Earnings Season Today.

Alcoa to Kickoff Q4 Earnings Season Today. Alcoa (AA) will kickoff the Q4 earnings season today after the market close. Wall Street always watches very closely as since some believe that the company can give indications of how other industrial companies performed.  The first few days and weeks of earning season can be volatile as Wall Street interprets earning results.  Alcoa is expected to report Q4 EPS of $0.06 on a decline of revenue of 8.8% to %5.38 billion.   

Upgrades:

Dupont (DD): Bank of America Merrill Lynch raised their rating from Neutral to Buy and placed a target price of $70.00 on the company.

Forest Labs (FRX): Buckingham raised their rating from Neutral to Buy and raised their target price from $63.00 to $84.00.

Halliburton (HAL): Howard Weil raised their rating from Sector Perform to Outperform.

Johnson & Johnson (JNJ): Jefferies raised their rating from Hold to Buy and raised their target price from $102.00 to $108.00.

McDonalds (MCD): Morgan Stanley raised their rating from Equal Weight to Overweight and raised their target price from $93.00 to $115.00.

Smith & Wesson (SWHC): Sidoti raised their rating from Neutral to Buy.

Downgrades:

Buffalo Wild Wings (BWLD): Morgan Stanley lowered their rating from Overweight to Underweight and lowered their target price from $144.00 to $143.00.

Diamond Offshore Drilling (DO): Howard Weil lowered their rating from Outperform to Sector Perform.

ENSCO (ESV): Howard Weil lowered their rating from Focus List to Outperform.

Family Dollar (FDO): MKM Partners lowered their rating from Buy to Neutral.

Yum! Brands (YUM): Morgan Stanley lowered their rating from Overweight to Equal Weight and lowered their target price from $81.00 to $77.00.

Coverage Initiated:

Bank of America (BAC): Nomura initiated coverage with a Buy rating and target price of $19.00.

Charles Schwab (SCHW): Nomura initiated coverage with a Neutral rating and target price of $23.00.

Citigroup (C): Nomura initiated coverage with a Buy rating and target price of $70.00.

CVS Caremark (CVS): Leerink initiated coverage with a Outperform rating and target price of $85.00.

E*Trade (ETFC): Nomura initiated coverage with a Buy rating and target price of $23.00.

Goldman Sachs (GS): Nomura initiated coverage with a Neutral rating and target price of $172.00.

JPMorgan Chase (JPM): Nomura initiated coverage with a Neutral rating and target price of $61.00.

Morgan Stanley (MS): Nomura initiated coverage with a Neutral rating and target price of $34.00.

Raymond James (RJF): Nomura initiated coverage with a Buy rating and target price of $60.00.

TD Ameritrade (AMTD): Nomura initiated coverage with a Neutral rating and target price of $32.00.

Western Union (WU): BTIG initiated coverage with a Buy rating and target price of $23.00.

Earning Reports:

Family Dollar (FDO): Reported EPS of $0.68 missing estimates by -$0.01.

Supervalu (SVU): Reported EPS of $0.13 in-line with estimates.

Markets: 
Futures at 9:14: Dow +0.24%. S&P +0.10%. Nasdaq +0.16%. Crude +0.34% to $92.63. Gold +0.05% to $1226.10. U.S. 10 Year +4/32 to 2.978%.

Europe: London -0.02%. Paris -0.14%. Frankfurt +0.17%.

Asia: Japan -1.50% to 15880. Hong Kong -0.91% to 22787. China -0.82% to 2028. India -0.08% to 20713. 

#RLPaler #WallStreet #PreMarket #WealthManagement #EarningReports #AnalystsRatings

Morning Coffee Pre-Market Wall Street News

U.S. Housing Numbers Miss Estimates. The Commerce Department reported that July’s housing starts rose 5.9% to a seasonally adjusted annual rate of 896,000 units. Wall Street Economists had estimated that housing starts would come in at 900,000 units. June's numbers were revised upward to 846,000-units from the previously reported. Permits to build new homes increased 2.7% in July to a 943,000-unit pace also missing estimates. Economists had expected permits to rise to 945,000. Wall Street analysts are pointing to higher interest rates as the cause of the misses.

Upgrades:

Applied Materials (AMAT): DA Davidson raised their rating from Neutral to Buy and raised their target price from $15.00 to $18.00.

JetBlue Airlines (JBLU): Raymond James raised their rating from Underperform to Market Perform.

Pandora Media (P): Goldman Sachs raised their rating from Neutral to Buy and placed a target price of $27.00 on the company.

Wal-Mart (WMT): S&P raised their rating from 3 Stars to 4 Stars.

Downgrades:

Alcoa (AA): Bank of America Merrill Lynch lowered their rating from Neutral to Underperform and placed a target price of $8.00 on the company.

Colgate-Palmolive (CL): Argus lowered their rating from Buy to Hold.

General Mills (GIS): Jefferies lowered their rating from Hold to Underperform and lowered their target price from $45.00 to $44.00.

Noble Energy (NE): ISI Group lowered their rating from Strong Buy to Buy and placed a target price of $67.00 on the company.

Nordstrom (JWN): Sterne Agee lowered their rating from Buy to Neutral and placed a target price of $62.00 on the company.

Transocean (RIG): Johnson Rice lowered their rating from Overweight to Underweight.

Coverage Initiated:

Xcel Energy (XEL): UBS initiated coverage with a Neutral rating and target price of $30.00.

Earning Reports:

Applied Materials (AMAT): Reported EPS of $0.18 missing estimates by -$0.01.

Dell (DELL): Reported EPS of $0.25 beating estimates by +$0.01.

Nordstrom (JWN): Reported EPS of $0.93 beating estimates by +$0.05.

Markets: 
Futures at 9:01: Dow 0.00%. S&P +0.10%. Nasdaq +0.27%. Crude +0.08% to $107.44. Gold +0.34% at $1365.40. U.S. 10 Year -1/32 2.778%

Europe: London 0.00%. Paris +0.06%. Frankfurt -0.36%. 

Asia: Japan -0.75% to 13650. Hong Kong -0.10% to 22518. China -0.65% to 2068. India -3.97% to 18618. 

Morning Coffee Pre-Market Wall Street News

World Market Fall. U.S. stock futures along with Asian and European markets are all lower after a landslide of bad news. Wall Street traders are watching closely as Egypt falls into chaos, sending oil prices higher. China reported a tepid services PMI and both Greece and Portugal are back in the spotlight again bring back worries of the EU debt crisis.  

Upgrades:

AutoNation (AN): Credit Suisse raised their rating from Neutral to Outperform and raised their target price from $50.00 to $53.00.

Chipotle Mexican Grill (CMG): Argus raised their rating from Hold to Buy and placed a target price of $430.00 on the company. Pre-market: 375.60 +4.07 (1.10%)

Copart (CPRT): Barrington raised their rating from Market Perform to Outperform and raised their target price from $36.00 to $40.00.

Daimler AG (DDAIF): JPMorgan raised their rating from Neutral to Overweight.

Leap Wireless (LEAP): Macquarie raised their rating from Underperform to Neutral. Pre-market: 6.77 +0.08 (1.20%)

Downgrades:

Adidas (ADDYY): Deutsche Bank lowered their rating from Buy to Hold.

Alcoa (AA): JPMorgan lowered their rating from Overweight to Neutral and placed a target price of $9.00 on the company. Pre-market: 7.64 -0.16 (-2.05%)

Overstock.com (OSTK): BofA Merrill Lynch lowered their rating from Buy to Underperform and lowered their target price from $23.00 to $20.00. Pre-market: 28.60 -1.25 (-4.19%)

Coverage Initiated:

Best Buy (BBY): Goldman Sachs initiated coverage with a Buy rating and target price of $34.00. Pre-market: 28.76 +0.07 (0.24%)

Cintas (CTAS): RBC Capital initiated coverage with an Outperform rating and target price of $52.00.

Ecolab (ECL): RBC Capital initiated coverage with an Outperform rating and target price of $97.00.

Earning Reports:

Intl Speedway (ISCA): Reported EPS of $0.51 beating estimates by +$0.01. Pre-market: 32.66 +0.15 (0.46%)

Markets: 
Futures at 7:35: Dow -0.47%. S&P -0.37%. Nasdaq -0.35%. Crude +2.15% to $101.75. Gold +0.35% to $1247.70. U.S. 10 Year +3/32 2.467%

Europe: London -1.64%. Paris -1.65%. Frankfurt -1.70%. 

Asia, Japan -0.31% to 14056. Hong Kong -2.48% to 20147. China -0.61% to 1994. India -1.47% to 19195.