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    

Stock Market Futures Point to Small Gain at Opening. Stock futures show the market opening with a small gain after the release of the latest ADP employment numbers. ADP reported that private employment for March came in at 191,000 up from 178,000 in February, but below economist estimates of 215,000 jobs. Economists are also expected the government jobs report to come in at 250,000 new jobs of Friday. Factory orders for February are also expected to be released today at 10:00 a.m. Economist expect to see a 1.1% increase.

Upgrades:

Comerica (CMA): Wells Fargo raised their rating from Underperform to Market Perform.

Intuitive Surgical (ISRG): JMP Securities raised their rating from Market Underperform to Market Outperform and placed a target price of $700.00 on the company. Pre-market: 508.00 +14.40 (2.92%)

W.P. Carey (WPC): First Call raised their rating from Buy to Strong Buy.

Downgrades:

Edison International (EIX): Argus lowered their rating from Buy to Hold.

Potash Corp. (POT): Alta Corp lowered their rating from Sector Perform to Underperform and placed a target price of $28.00 on the company. Pre-market: 34.93 -0.39 (-1.10%)

U.S. Bancorp (USB): Sandler O’Neil lowered their rating from Buy to Hold. Pre-market: 42.83 -0.16 (-0.37%)

Coverage Initiated:

Ford Motor Co. (F): Nomura initiated coverage with a Neutral rating and target price of $15.00. Pre-market: 16.35 +0.03 (0.18%)

General Motors (GM): Nomura initiated coverage with a Reduce rating and target price of $32.00. Pre-market: 34.61 +0.27 (0.79%)

Honda Motor (HMC): Credit Suisse initiated coverage with a Outperform rating. Pre-market: 35.48 +0.28 (0.80%)

NRG Energy (NRG): Barclays resumed coverage with an Overweight rating and target price of $36.00.

Textron (TXT): JPMorgan resumed coverage with an Overweight rating and target price of $44.00.

Earning Reports:

Jos. A. Bank (JOSB): Reported EPS of $1.07 in-line with estimates.

Monsanto (MON): Reported EPS of $3.15 beating estimates by $0.08. Pre-market: 114.97 +0.98 (0.86%)

Markets: 
Futures at 8:46: Dow +0.08%. S&P +0.03%. Nasdaq +0.14%. Crude -0.77% to $98.97. Gold +1.00% to $1292.50. U.S. 10 Year -6/32 to 2.778%.

Europe: London +0.09%. Paris +0.09%. Frankfurt +0.26%. 

Asia: Japan +1.04% to 14946. Hong Kong +0.34% to 22524. China +0.56% to 2056. India +0.47% to 2253. 

#RLPaler #TopWealthManager #WallStreet #Stocks #ADPEmployment

Government Motors is No Longer

Government Motors is No Longer. The U.S. government has sold its remaining 31.1M shares in General Motors (GM) for $9.2B. Because of the government ownership some had called the company Government Motors. The sale ends restrictions on executive pay and would allow the payment of dividends and share buybacks. The wisdom of the sale at this time is being questioned since the sale netted only $39B from an initial investment of $49.5B. The total loss to U.S. taxpayers will be over $10.5B.

Upgrades:

Broadcom (BRCM): Charter Equity raised their rating from Market Perform to Buy.

Celgene (CELG): Credit Suisse raised their rating from Neutral to Outperform.

Johnson Controls (JCI): RBC Capital raised their rating from Outperform to Top Pick and placed a target price of $61.00 on the company.

Royal Bank of Canada (RY): S&P raised their rating from 3 Stars to 4 Stars.

United Rentals (URI): RBC Capital raised their rating from Outperform to Top Pick and placed a target price of $85.00 on the company.

Downgrades:

Quest Diagnostics (DGX): Bank of America Merrill Lynch lowered their rating from Buy to Underperform and lowered their target price from $64.00 to $55.00.

Old Dominion Freight (ODLF): Longbow lowered their rating from Buy to Neutral.

Tenneco (TEN): RBC Capital lowered their rating from Top Pick to Outperform and placed a target price of $66.00 on the company.

Tyson Foods (TSN): Miller Tabak lowered their rating from Buy to Hold and lowered their target price from $35.00 to $33.00.

Coverage Initiated:

IMAX (IMAX): Ascendiant Jefferies initiated coverage with a Buy rating and target price of $32.00.

Papa John’s International (PZZA):  Jefferies initiated coverage with a Hold rating and target price of $86.00.

Rambus (RMBS): Jefferies initiated coverage with a Hold rating and target price of $13.00.

olHold rating

Earning Reports:

AutoZone (AZO): Reported EPS of $6.29 beating estimates by +$0.01.

Burlington Stores (BURL): Reported EPS of -$0.05 in-line with estimates.

Toll Brothers (TOL): Reported EPS of $0.54 beating estimates by +$0.10.

Markets: 
Futures at 6:20: Dow +0.1%. S&P +0.1%. Nasdaq +0.1%. Crude +1.2% to $98.49. Gold +1% to $1246.30. 

Europe: London +0.1%. Paris +0.1%. Frankfurt +0.2%. 

Asia: Japan -0.3% to 15611. Hong Kong -0.3% to 23744. China -0.02% at 2237. India -0.3% at 21256. 

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

Morning Coffee Pre-Market Wall Street News

Chrysler Post Nice Sales Gains.

Chrysler’s Group LLC's, which is owned by Fiat S.p.A (FIATY) reported that their May sales in the U.S. rose 11% beating estimates from Edmunds.com.

For May, Chrysler said it sold 166,596 vehicles, up from 150,041 a year ago, and +0.6% above April's total of 156,698. Truck sales at the company grew +8.8% while car sales increased +16%.

Sales of the Chrysler line of vehicles fell -2%, while Jeep rose +0.5%. Big sales increased were seen at Dodge led by the Dodge Avenger and Dodge Challenger.  Dodge saw their sales increase +23%.

General Motors Co. (GM), and Ford Motor Co. (F) along with other manufactures are expected to report May sales later today.

Overall, U.S. new auto sales for May are expected to rise +6.5% from a year earlier.

Upgrades

Best Buy (BBY): SunTrust raised their rating from Neutral to Buy and placed a target price of $35.00 on the company. Pre-market: 28.46 +0.91 (3.30%)

 Host Hotels & Resorts (HST): ISI Group raised their rating from Neutral to Buy.

Intel (INTC): FBR Capital raised their rating from Market Perform to Outperform and raised their target price from $23.00 to $28.00. Pre-market: 24.67 +0.39 (1.61%)

MetLife (MET): Deutsche Bank raised their rating from Hold to Buy and raised their target price from $46.00 to $51.00. Pre-market: 44.99 +0.78 (1.76%)

Orbitz Worldwide (OWW): Lazard Capital raised their rating from Neutral to Buy and placed a target price of $9.50 on the company.

Plum Creek Timber (PCL): Bank of America Merrill Lynch raised their rating from Neutral to Buy and placed a target price of $55.00 on the company.

Starwood Hotels & Resorts (HOT): ISI Group raised their rating from Neutral to Buy.

Downgrades

Torchmark Corp (TMK): Janney Capital lowered their rating from Buy to Neutral.

Coverage Initiated

Applied Micro (AMCC): FBR Capital initiated coverage with an Outperform rating and target price of $11.00.

Guess? (GES): Topeka initiated coverage with a Hold rating and target price of $34.00.

Coverage Reiterated/Price Target Changed 

Google (GOOG): Cantor Fitzgerald reiterated their Buy rating and raised their target price from $900.00 to $1030.00. Pre-market: 874.77 +3.55 (0.41%)

Earning Reports

Cracker Barrel (CBRL): Reported EPS of $1.02 beating estimates by +$0.08. Pre-market: 93.01 +3.55 (3.97%)

Markets: 
Futures at 8:31: Dow +0.50%. S&P +0.29%. Nasdaq +0.33%. Crude +0.91% to $92.81. Gold +0.23% to $1396.70.

Europe: London -0.39%. Paris +0.16%. Frankfurt +0.13%. 

Asia: Japan -3.72% to 13262. Hong Kong -0.49% to 22282. China -0.06% to 2299. India -0.76% to 19610.