Retail Sales Miss Across The Board; Control Group Has First Decline Since “Polar Vortex”

It may come as a shocker to some, but hopefully not to anyone here, that September retail sales were arguably the worst of the year excluding the “abortion” that was the Polar Vortex. The simple reason: after the US consumer loaded up on debt in the spring and the summer, the payback hangover has finally hit with the payment due in the mail resulting in a collapse in revolving credit as reported previously, and as the September retail sales just confirmed:

  • Headline retail sales: -0.3% missing expectations of a -0.1% decline, and down from the 0.6% in August
  • Retail sales ex-Autos -0.2%, missing expectations of a +0.2% increase, and down from +0.3%.
  • Retail sales ex-Autos and gas: -0.1%, missing expectations of a solid 0.4% rebound and down from 0.5%

And not just that: clothing stores dropped -1.2%, sporting goods dropped -0.1%, furniture was down -0.8%, miscellaneous retailers -0.2%, and, sorry Jeff Bezos, online “non-store retailers” such as Amazon declined -1.1%.

Because nothing screams recovery like the US consumer slamming the spending breaks just as the holiday season begins to unwind.

Finally, the all important Retail Sales Control posted its first sequential decline since unprecedented “snow in the winter” January.

And there goes the latest recovery dead cat bounce.




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Greece Is Crashing

As we explained in detail yesterday, between governments hopes to exit the bailout program early (in order to save their election) – which the market does not like the idea of – and fears over the reality of OMT, Greek markets are tumbling. Greek stocks are down over 9% – the biggest plunge in 6 years and bond yields are surging… it appears the market is demanding Draghi get back to work as the “whatever it takes” gains have been halved (Greek stocks -35% from March 2014 highs).

  • *GREEK ASE INDEX FALLS 9.3% BIGGEST INTRADAY DROP IN 6 YEARS

 

Greek stocks are down 8% and have retraced at least 50% of the “whatever it takes” gains…

 

And bond yields are surging…

 

Charts: Bloomberg




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Empire Fed Manufacturing Plunges, Biggest Miss In Over 3 years

From 5 years highs to 6-month lows in one month  – Empire Fed manufacturing missed expectations by the most since June 2010 as New orders collapsed. The employment sub-index rose but workweek tumbled. Yet again, as we have described in greast detail, US economic data surges into the end of Q3 (government fiscal year-end) on spend-spend-spend year-end budget flushes, then collapses and disappoints.

 




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American Forces Found 5,000 Chemical Weapons In Iraq—Just Not the Ones the Bush Administration Claimed Were There

There were thousands of
chemical weapons in Iraq, some of which harmed
Americans, according
to a lengthy new investigative report in The New York
Times—and the public, members of Congress, and even members of
the military were misled about their existence. Nor were they the
chemical weapons that the Bush administration said the U.S. was
going after when it attempted to justify the military operation
that became the Iraq War. 

According to the report, American troops and Iraqi allies found
roughly 5,000 chemical weapons in various forms, including a single
depository of about 2,400 warheads, between 2004 and 2011. In six
separate instances, American troops or allies were wounded by the
weapons. The New York Times managed to get in touch with
17 American troops, as well as seven Iraqi cops, and talk to them
about the experience. The military says there were at least a few
more who were injured by the hushed-up chemical arms, but won’t say
exactly how many. 

These were not products of the active, ongoing chemical
weapons program that the Bush administration claimed existed and
had to be stopped when it first made the case for war in Iraq. All
the weapons were all more than a decade old by the time they were
discovered. Most were made in the 1980s, and every single one of
them had been created before 1991. 

The Times says flatly that “the discoveries of
these chemical weapons did not support the government’s invasion
rationale.”

Their existence was a closely kept secret, even within the
government. As the Times notes:

Since the outset of the war, the scale of the United States’
encounters with chemical weapons in Iraq was neither publicly
shared nor widely circulated within the military. These encounters
carry worrisome implications now that the Islamic State, a Qaeda
splinter group, controls much of the territory where the weapons
were found.

The American government withheld word about its discoveries even
from troops it sent into harm’s way and from military doctors. The
government’s secrecy, victims and participants said, prevented
troops in some of the war’s most dangerous jobs from receiving
proper medical care and official recognition of their wounds.

Soldiers who were aware of the discoveries were ordered to keep
quiet about them, and even to mislead Congress about what they
knew. “‘Nothing of significance’ is what I was ordered to say,”
retired Army Major Jarrod Lampier tells the Times. Lampier
was on site when the biggest chemical weapons dump, containing
2,400 warheads, was found.  

The secrecy compounded the dangers posed by the weapons,
creating a cascade of failures:  

In case after case, participants said, analysis of these
warheads and shells reaffirmed intelligence failures. First, the
American government did not find what it had been looking for at
the war’s outset, then it failed to prepare its troops and medical
corps for the aged weapons it did find.

Why didn’t the government reveal their existence? Possibly
because they were embarassed that they were wrong, or perhaos
because in some cases the U.S. and some of its Western allies had
played a role in designing or creating the weapons in the first
place:

Participants in the chemical weapons discoveries said the United
States suppressed knowledge of finds for multiple reasons,
including that the government bristled at further acknowledgment it
had been wrong. “They needed something to say that after Sept. 11
Saddam used chemical rounds,” Mr. Lampier said. “And all of this
was from the pre-1991 era.”

Others pointed to another embarrassment. In five of six
incidents in which troops were wounded by chemical agents, the
munitions appeared to have been designed in the United States,
manufactured in Europe and filled in chemical agent production
lines built in Iraq by Western companies.

All in all, it looks like the revelation of another colossal
failure in what is already widely recognized as a colossal failure
of a war. (But hey, if at first you don’t succeed, try
and try again.)

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Police Brutality in Hong Kong, Supreme Court Halts Texas Abortion Law, Harvard Law Profs Pan Sexual Violence Policy: A.M. Links

Follow us on Facebook and Twitter,
and don’t forget to sign
up for Reason’s daily updates for more
content.

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Poll: Third-Party Voters Side With Democrats on Police and Foreign Policy and with Republicans on Economics

If November’s election for Congress were held
today, 42 percent of registered voters say they would vote for the
Democratic candidate in their district, 33 percent would vote for
the Republican in their district, 13 percent would vote third
party, and 11 percent don’t know whom they’d vote for yet,
according to the latest
Reason-Rupe poll.

One may notice these results diverge from Real
Clear Politics’ 2014 Generic Congressional Vote
aggregator which finds among likely voters, 45.3 say they
plan to vote Republican and 43.5 percent Democratic.

What explains the difference?

Reason-Rupe offers respondents the option to select a
third-party candidate while other polls offer the two-party choices
and then ask undecided voters which way they lean. (For instance,
see these Fox
News, and Gallup polls).
There’s nothing wrong with asking about only two parties, and will
likely yield a more predictive result. However, offering a
third-party option reveals which voters are most
dissatisfied with the two-party candidate choices, and thus who is
at high risk of defection come Election Day.

The fact that a third-party candidate could win or influence the
election in several races (e.g. Kansas or North
Carolina) demonstrates the importance of identifying the likely
“defectors.”

Who wants to vote third party?

Our data suggests likely third-party “defectors” might otherwise
be potential Republican voters, given that other polls find the
parties tied except when a third-party option is made available.
But that doesn’t mean these voters are Republicans either.

Third party voters tend to be disproportionately younger, male,
independent, leaning left, but also lean libertarian on the
size of government.

Third-party voters come from both the partisan left and right,
and are slightly more representative of Independent-leaning
Democrats (34% v 17% national) than Independent-leaning Republicans
(18% v 10% national). Nevertheless, they tend to agree with
Republicans on the size of government and are as likely as the
national sample to be tea party supporters.

When it comes to attitudes toward the police, criminal justice
reform, and foreign policy, third-party voters tend to side with
Democrats. (See Table) These voters are less favorable of
the police (61%), believe the police are not held accountable for
misconduct (54%), favor restoring voting rights to non-violent drug
offenders (82%), and allowing such offenders to petition a court to
have their records sealed (50%).

When it comes to the US combatting ISIS, third-party voters are
about as skeptical of air strikes as Democrats (28%), although a
majority still favor (64%) their use. Also like Democrats, these
voters (52%) oppose sending ground troops to combat ISIS.

However, on economic issues, third-party voters act more like
Republicans. These voters tend to say we should pay for military
action against ISIS primarily by cutting spending (41%) rather than
raising taxes on the wealthy (33%), and that we should lower
corporate taxes (54%). Also similar to Republicans, third-party
voters say its is acceptable for a business to move states to lower
its tax load (73%).

Third-party voters also align with Republicans on the size of
government. In a complete reverse from Democrats, 64 percent of
third-party voters prefer a smaller government offering fewer
services, while 29 percent prefer larger government providing more
services (29%). Similarly, 63 percent say free markets solve
problems better than a strong government (33%).

Third-party voters are also the only political group in which a
majority support allowing unvaccinated children to attend public
schools (54%).

What does this mean?

These third-party voters, who likely pose the greatest electoral
risk to Republicans, have a marked libertarian streak. They favor
constraining government’s economic and policing powers and are
relatively less interventionist militarily. These data provide a
strong indication that Republicans looking to win back votes from
likely defectors may need to expand their issue priorities to
include criminal justice reform, but also to moderate their
positions on foreign policy. 

The Reason-Rupe national telephone poll, executed
by Princeton Survey Research Associates International,
conducted live interviews with 1004 adults on cell phones (503) and
landlines (501) October 1-6, 2014. The poll’s margin of error
is +/-3.8%. Full poll results can be found here. including
poll toplines (pdf) 
and crosstabs (xls). 

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US, European Stocks Collapse As Oil Tests $80 Handle, 10Y Hits 2.15%

Blood in the leveraged momo streets. Nikkei was crushed overenight as USDJPY could not hold 107. European stock indices are tumbling led by weakness in Spain, Portugal, and Italy. The peripheral bond markets are also getting crushed (spreads wider by 15-20bps). This has bled over into US equities with Nasdaq leading the way lower. Treasury yields are collapsing (10Y tests below 2.15%). The USD is modestly lower but oil is continuing to collapse testing the $80 handle for WTI.

 

What the bond markets have been warning…

 

Nikkei and USDJPY sliding…

 

European stocks and bonds ugly…

 

And US equities testing multi-month lows across the board…

 

WTI tests into the $80 handle – crushing the Shale dreams for many…

 

As rates retrace over half the 2012-13 tantrum sell off…

 

Charts: Bloomberg




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Bank Of America Posts Q3 Loss, Slammed By Yet Another “One-Time, Non-Recurring” Legal Charge

Remember when banks said to ignore “one-time, non-recurring” legal fees because they are going away? Well, JPM yesterday showed they aren’t. But it was Bank of America today which was slammed with the latest whopping $5.3 billion pretax litigation charge, which pushed its EPS once again into the red.

But wait, there’s great news: the loss of $0.01 is really a $0.42 non-GAAP adjusted profit if one “adds back” the $0.43 in litigation charges.

Which is great for ostriches who like having their heads shoved in the sand. The only problem is that addbacks usually require charges to be one-time, non-recurring. Instead as the chart below shows Bank of America’s litigation and legal charges are not only very much recurring, but as a cost of doing business, they keep increasing quarter after quarter:

And imagine how bad it would be if BofA hadn’t taken out yet another $407MM in loan loss reserve releases, bringing BofA’s total reserve releases in the past three years to a massive $13.6 billion:

So whether one treats BofA as a criminal, racketeering organization or not aside, the bigger problem is that the bank’s already deplorable trading results from Q2 declined even more in the 3rd quarter as volumes crashed, showing that banks desperately need volume to make money since they clearly can’t rely on rising rates to boost their Net Interest Margin:

Not surprisingly, BofA is hardly betting on a “recovery” – its full time employees declined yet again, hitting a multi-year low ofonly 212,400. Somehow we doubt those terminated will ever see the BLS rolls.

Finally, see if you can spot the real-estate recovery in the following chart.

Stick a fork in US banks.

Here is the full presentation




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Frontrunning: October 15

  • M&A Bubble is bursting: AbbVie Says It Reconsiders Merger Pact With Shire (WSJ)
  • Winner of bad headline timing award: Spinoffs Could Set Stage for Next Merger Wave (BBG) – and now wait for the spinoffs getting pulled
  • Record mortgage settlement pushes Bank of America into third-quarter loss (Reuters)
  • Korea joins the Japan currency war: Bank of Korea Cuts Base Rate (WSJ)
  • Double Irish’s Slow Death Leaves Google Executives Calm (BBG)
  • Global Oil Glut Sends Prices Plunging (WSJ)
  • Slow Rise in Prices Shows China’s Economy Is Still Struggling (WSJ)
  • EBay Merchants Lamenting Neglect Bid PayPal Good Riddance (BBG)
  • Bugs Joining Robots to Overcome Global Shortage of Copper (BBG)
  • Worrying for Saudi, U.S. oil output cuts could take a while (Reuters)
  • Putin Intimidation Tactics Kill Entente Hope for Finnish Premier (BBG)
  • Hong Kong tension rises with police beating of protester (Reuters)
  • U.S.-led air strikes intensify as Syria conflict destabilizes Turkey (Reuters)
  • Cities Look for Ways to Get Free of Empty Jails (WSJ)

 

Overnight Media Digest

WSJ

* Oil prices posted their biggest one-day drop in nearly two years Tuesday as a U.S.-led wave of crude has crashed into weak global demand, threatening the stability of some countries and providing an economic lifeline to others. (http://on.wsj.com/1z9dgX4)

* A clinic in the Liberian capital Monrovia has hired seven Ebola survivors to counsel other patients suffering from the virus. (http://on.wsj.com/1tstCaS)

* AbbVie Inc has notified Shire Plc that its board intends to reconsider its recommendation that AbbVie shareholders adopt the companies’ merger agreement. (http://on.wsj.com/ZYBPXv)

* JP Morgan and Citigroup each said they socked away hundreds of millions of dollars in the third quarter to cover legal costs, a sobering reminder that they are still reckoning with crisis-era behavior that has triggered billions in penalties already. (http://on.wsj.com/11k68Il)

* After a false start that set back its plans at least two years, Hilton Worldwide Holdings is launching a boutique-hotel chain that aims for a wider audience and lower room rates than some direct competitors. (http://on.wsj.com/1w1DFBn)

* The U.S. Supreme Court blocked Texas from implementing abortion-clinic restrictions that could leave the state with as few as seven providers. (http://on.wsj.com/1sFI7FO)

 

FT

Japanese telecommunications company Softbank Corp said it would acquire video streaming service DramaFever, known for its Korean television shows and movies.

Britain’s biggest retailer Tesco Plc has removed another three employees from their jobs as it continues to probe a 250 million stg ($400 million) profit overstatement.

Britain’s mobile operator EE said it would acquire Phones 4U mobile business. EE is expected to pay less than 5 million stg for this deal.

Spain will sell a 21 percent stake in its state-owned airports operator Aena to Corporacion Financiera Alba SA , Ferrovial SA and British investment fund the Children’s Investment Fund, Aena’s holding company Enaire said on Tuesday.

 

NYT

* Drugmaker AbbVie Inc disclosed on Tuesday that its board plans to reconsider recommending that shareholders vote in favor of its $54 billion takeover of its Irish-based, London-listed counterpart Shire. AbbVie directors will meet on Oct. 20 to decide whether to change its mind about the deal, which would let their company reincorporate in Britain to take advantage of a lower tax rate. (http://nyti.ms/1o9Ov8M)

* The housing bust ended several years ago, but the big mortgage banks are still acting as if the home loan business were fraught with peril. Their caution has restricted the availability of home loans, preventing many seemingly creditworthy people from obtaining mortgages. And on Tuesday, executives from Wells Fargo & Co, the nation’s biggest mortgage bank, said that important changes had to be made before they might consider increasing the flow of credit. (http://nyti.ms/1u34qlu)

* U.S-based footwear maker Converse says some of the core elements of its widely recognizable Chuck Taylor sneakers – black stripes and a rubber toe topper – are being co-opted by Wal-Mart Stores Inc, Kmart, Skechers USA Inc and others. And it is taking them to court, accusing 31 companies of trademark infringement in 22 separate lawsuits filed Tuesday in United States District Court in Brooklyn. (http://nyti.ms/1qqKjwq)

* A senior currency trader at JPMorgan Chase & Co in London has left the bank after he was placed on paid leave last year amid regulatory inquiries into potential manipulation of the foreign exchange market by currency traders. (http://nyti.ms/1u36Pg4)

* Geberit AG of Switzerland said on Tuesday that it had offered to acquire the Sanitec Corp, a Finnish maker of toilets and bathroom ceramics, for about $1.35 billion in cash. (http://nyti.ms/1sPJ7rm)

 

Canada

THE GLOBE AND MAIL

** Canadian stocks hit a record high six weeks ago, but have been on a downhill run ever since as nervous investors act on growing worries about deteriorating global conditions and their debilitating effect on demand for Canada’s energy and other resources. (http://bit.ly/1r8wu5g)

** The Canadian government is backing New Zealand’s bid for a temporary seat on the UN Security Council, throwing its support behind a long-time ally that’s promising a stronger voice for less-influential countries if it’s elected. (http://bit.ly/1nlE3u8)

** John Tory is promising no services will be cut if he is elected mayor, saying he would keep tax increases at or below the rate of inflation by finding efficiencies and wringing more money for Toronto out of the federal and provincial governments. (http://bit.ly/1tsWRu3)

NATIONAL POST

** Canada’s finance minister expects the economy to remain on track for solid growth this year and next, an outlook shared by private-sector economists who met with Joe Oliver on Tuesday as part of the government’s pre-budget consultations. (http://bit.ly/1r8xVkb)

** Tom Mulcair, leader of the New Democratic Party, said Canada “can’t afford not to” spend C$5-billion ($4.40 billion) a year on a new plan to create or maintain one million childcare spaces. The goal, he said, is to make sure that parents don’t pay more than C$15 a day for a childcare space. (http://bit.ly/1qrDV8a)

** Just five months after announcing that it was shelving its massive C$11-billion Joslyn oil sands mine – a decision that fueled wider concerns about the economic viability of the oil patch – the Canadian arm of French energy giant Total SA has confirmed that it is forging ahead with an application to expand the project by 60 percent. (http://bit.ly/1tsYXdu)

 

China

CHINA SECURITIES JOURNAL

– The central government has approved plans by Sichuan province to set up the new Tianfu business district as part of plans to accelerate development in western China.

SHANGHAI SECURITIES NEWS

– Luzhou Lao Jiao Co said in a statement that it had filed a lawsuit against the Agricultural Bank of China Ltd’s Changsha branch after about 150 million yuan ($24.5 million) of the company’s deposit was found missing.

21st CENTURY BUSINESS HERALD

– The National Development and Reform Commission has suspended approvals of auctioning corporate bonds this week, sources told the newspaper, amid plans to crack down on corruption and irregularities in the bond market.

SECURITIES TIMES

– China Minsheng Banking Corp Ltd entered into an agreement with Tesla Motors Inc for the U.S. carmaker to build at least 400 charging points in business offices of Minsheng Bank and local financial stores in more than 20 Chinese cities.

SHANGHAI DAILY

– The 4.5-generation mobile network, which is three to 10 times faster than the 4G network, will be used commercially network in 2016, Huawei Technologies Co said on Tuesday.

CHINA DAILY

– Structured products will be the most popular financial instrument and the United States will be the investment destination of choice for China’s wealthy in the coming 12 months, according a report co-released by Julius Baer Group and Bank of China Co Ltd.

PEOPLE’S DAILY

– Anyone who cares and loves Hong Kong should firmly support the Hong Kong government and allow them to carry out their official duties under the basic laws, a commentary carried by the mouthpiece of the ruling Communist Party of China said.

Britain

The Times

TESCO SUSPENSIONS ADD TO CHAOS AT TOP

An investigation into Tesco’s 250 million pound ($397 million) accounting crisis has prompted the suspension of three more executives, stoking concern about a disruption to its preparations for the crucial Christmas shopping season. (http://thetim.es/1w7aRsa)

WARRING SAUDIS OVER A BARREL ON FALLING OIL PRICE

Prince Alwaleed bin Talal expressed his “astonishment” that Ali al-Naimi, the Saudi oil minister, had played down the impact of prices falling below $100 a barrel. In his open letter to Saudi ministers, posted on Twitter, he noted that 90 percent of the country’s revenues come from oil. (http://thetim.es/1wCrSIQ)

The Guardian

UK INFLATION FALLS TO FIVE-YEAR LOW OF 1.2 PCT

Inflation has slumped to its lowest rate for five years, hitting 1.2 percent in September and taking pressure off the Bank of England to raise interest rates in coming months. (http://bit.ly/1r169WO)

IRELAND TO ABOLISH CONTROVERSIAL ‘DOUBLE IRISH’ TAX ARRANGEMENT

Ireland has officially announced the phased abolition of its controversial “double Irish” tax scheme that has enabled multinationals such as Apple to dramatically cut down their tax bills. (http://bit.ly/1yzUGpO)

The Telegraph

BIS WARNS ON ‘VIOLENT’ REVERSAL OF GLOBAL MARKETS

Global financial markets are dangerously stretched and may unwind with a shock as liquidity dries up, the Bank of International Settlements has warned. Guy Debelle, head of the BIS’s market committee, said investors have become far too complacent, wrongly believing that central banks can protect them, many staking bets that are bound to “blow up” at the first sign of stress. (http://bit.ly/1sOIm1Z)

HOUSE PRICES: THE NORTH-SOUTH DIVIDE IS NOW WIDER THAN EVER

The gap between the average prices of property in London and the northeast grew to its widest in history in August, according to data released from the Office of National Statistics. A home in the capital cost an average 514,000 pounds, the monthly analysis showed, compared with just 154,000 pounds in the northeast of England – an area of the country out of reach of the London “ripple” affect. (http://bit.ly/1xOqhAW)

Sky News

STRUGGLING BALFOUR BEATTY PICKS NEXT CHIEF

Balfour Beatty, the beleaguered construction group, will hand Qinetiq Chief Executive Leo Quinn the task of reviving its fortunes. (http://bit.ly/1vsGGx2)

OVER-55s TO USE PENSION POTS LIKE BANK ACCOUNTS

People reaching the age of 55 are to be given more flexibility over what they can do with their pension pots as they approach retirement. Chancellor George Osborne will announce that the over-55s will be able to withdraw several lump sums instead of just one. (http://bit.ly/1sASYB7)

The Independent

MULBERRY AND BURBERRY HIT BY LUXURY SLOWDOWN AS RICH TOURISTS STAY AWAY

The state of the luxury market was laid bare after Mulberry issued its third profit warning this year and larger rival Burberry warned the outlook for the sector was getting tougher, prompting both stocks to tumble in London IPO trading. (http://ind.pn/1sIOARI)

BOX’S FOUNDER AARON LEVIE ADMITS HE ANNOUNCED IPO PLANS TOO SOON

Aaron Levie, founder of Silicon Valley cloud-storage firm Box, on a visit to Box’s European headquarters in London, has admitted he was too quick to announce plans for his now-postponed stock-market float. (http://ind.pn/ZCReMd)

 

 

Fly On The Wall Pre-Market Buzz

ECONOMIC REPORTS

Empire State manufacturing survey for October at 8:30–consensus 20.5
Retail sales for September at 8:30–consensus down 0.1%
Producer Price Index for September at 8:30–consensus up 0.1%

ANALYST RESEARCH

Upgrades

Applied Materials (AMAT) upgraded to Buy from Neutral at BofA/Merrill
Baker Hughes (BHI) upgraded to Buy from Neutral at Sterne Agee
Banco Bilbao (BBVA) upgraded to Buy from Hold at Deutsche Bank
BorgWarner (BWA) upgraded to Buy from Neutral at Sterne Agee
C.H. Robinson (CHRW) upgraded to Neutral from Underperform at Macquarie
CBS (CBS) upgraded to Buy from Neutral at Citigroup
Cavium (CAVM) upgraded to Outperform from Market Perform at JMP Securities
Charles River Labs (CRL) upgraded to Buy from Neutral at SunTrust
Daimler AG (DDAIF) upgraded to Overweight from Underweight at Barclays
Diodes (DIOD) upgraded to Strong Buy from Outperform at Raymond James
Grand Canyon (LOPE) upgraded to Outperform from Neutral at RW Baird
Host Hotels (HST) upgraded to Overweight from Equal Weight at Barclays
Lithia Motors (LAD) upgraded to Overweight from Underweight at Morgan Stanley
Micron (MU) upgraded to Overweight from Neutral at JPMorgan
Sabra Health Care (SBRA) upgraded to Buy from Neutral at BofA/Merrill
Sabra Health Care (SBRA) upgraded to Overweight from Equal Weight at Barclays
Sanofi (SNY) upgraded to Outperform from Neutral at Credit Suisse
Solvay (SVYZY) upgraded to Overweight from Equal Weight at Barclays
Sun Bancorp (SNBC) upgraded to Buy from Neutral at Sterne Agee
United Natural Foods (UNFI) upgraded to Overweight from Neutral at Piper Jaffray

Downgrades

Intel (INTC) downgraded to Underweight from Equal Weight at Morgan Stanley
Masco (MAS) downgraded to Neutral from Outperform at Macquarie
Northfield Bancorp (NFBK) downgraded to Neutral from Buy at Sterne Agee
Occidental Petroleum (OXY) downgraded to Neutral from Outperform at Credit Suisse
TreeHouse Foods (THS) downgraded to Underweight from Hold at KeyBanc

Initiations

Ambarella (AMBA) initiated with an Outperform at Pacific Crest
Baker Hughes (BHI) initiated with a Buy at Citigroup
CrossAmerica (CAPL) initiated with an Equal Weight at Barclays
Globe Specialty Metals (GSM) initiated with a Buy at Stifel
GoPro (GPRO) initiated with a Sector Perform at Pacific Crest
Green Bancorp (GNBC) initiated with an Outperform at Keefe Bruyette
Halliburton (HAL) initiated with a Neutral at Citigroup
Helmerich & Payne (HP) initiated with a Neutral at Citigroup
NIC Inc. (EGOV) initiated with a Hold at Maxim
Nabors Industries (NBR) initiated with a Buy at ISI Group
Orion Engineered (OEC) initiated with an Overweight at JPMorgan
Patterson-UTI (PTEN) initiated with a Buy at Citigroup
Pharmacyclics (PCYC) initiated with a Buy at Citigroup
RPC, Inc. (RES) initiated with a Buy at Citigroup
Receptos (RCPT) initiated with a Buy at Goldman
Schlumberger (SLB) initiated with a Neutral at Citigroup
Sensata (ST) resumed with a Buy at Citigroup
Sierra Wireless (SWIR) initiated with an Outperform at Northland
Superior Energy (SPN) initiated with a Neutral at Citigroup
Syntel (SYNT) initiated with a Buy at Maxim
Weatherford (WFT) initiated with a Neutral at Citigroup

COMPANY NEWS

AbbVie (ABBV) board reconsidering recommendation to holders to accept Shire (SHPG) merger
Qualcomm (QCOM) to acquire CSR (CSRE) for GBP 9.00 per share
BG Group (BRGYY) named Statoil’s (STO) Helge Lund as CEO, effective March 2, 2015; Statoil named Eldar Saetre as acting president and CEO
Google (GOOG) said researchers discovered vulnerability in SSL encryption
IndiGo signed MOU for 250 Airbus (EADSY) A320neo aircraft
Ann Inc. (ANN) announced a nondisclosure agreement with Golden Gate Capital.
Palo Alto (PANW) CEO told CNBC ‘not concerned’ about margins

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Intel (INTC) PNC Financial (PNC), BlackRock (BLK), ADTRAN (ADTN), Bank of the Ozarks (OZRK), Bank of the Ozarks (OZRK), Synergetics (SURG), Consumer Portfolio (CPSS), CSX (CSX)

Companies that missed consensus earnings expectations include:
KeyCorp (KEY), Linear Technology (LLTC), Healthcare Services (HCSG), Marten Transport (MRTN)

Companies that matched consensus earnings expectations include:
iGATE (IGTE)

Intel (INTC) sees Q4 revenue $14.7B, plus or minus $500M, consensus $14.49B
Wet Seal (WTSL) expects Q3 EPS (28c), consensus (26c)
CSX (CSX) sees sustaining double-digit earnings growth and margin expansion in 2015

NEWSPAPERS/WEBSITES

HP (HPQ), EMC (EMC) halt merger agreement discussions, Reuters reports
Avista (AVA) ‘quietly’ seeks buyer, Berkshire (BRK.A) interested, TheDeal.com reports (MDU)
Facebook (FB), Samsung (SSNLF) could collaborate to develop mobile content, Korea Times reports
Apple (AAPL) asks permission to lodge objections to GT bankrupcy in secret, Re/code says
Toyota (TM) to manufacture SUVs in Turkey starting in 2016, Nikkei reports
JPMorgan (JPM) looks like a buy, Barron’s says

SYNDICATE

CubeSmart (CUBE) files to sell 6.5M shares of common stock
Dominion Midstream (DM) 17.5M share IPO priced at $21.00
Esperion (ESPR) files to sell $85M in common stock
EveryWare Global (EVRY) files to sell 2.11M shares for holders
Forward Pharma (FWP) 10.5M share IPO priced at $21.00
Great Western (GWB) 16M share IPO priced at $18.00
Inogen (ingn) files to sell $50M of common stock for holders
Lpath (LPTN) files to sell 3.6M shares of common stock for holders
Memorial Production (MEMP) files to sell $250M of common units for limited partners
STAG Industrial (STAG) offers 5M shares of common stock




via Zero Hedge http://ift.tt/1vuOPAU Tyler Durden