Stocks rise as investors cheered strong quarterly numbers from companies like Coca-Cola and United Technologies.US Marketsread more
The IMF trims its economic growth forecast again as the U.S.-China trade war continues, Brexit worries linger and inflation remains muted.Economyread more
Citigroup thinks Tesla investors hoping for a post-earnings rally later this week should scrutinize a pair of related financial metrics.Investingread more
Olive branches were extended from both China and the U.S. as the two nations are set to restart face-to-face trade negotiations after a month-long truce.Marketsread more
In advance of Amazon's earnings report on Thursday, Craig Johnson says the stock chart is pointing to big gains. Mark Tepper also likes the stock.Trading Nationread more
Coca-Cola topped Wall Street's expectations for earnings and revenue.Food & Beverageread more
New disclosures show Facebook and Amazon each spent more than $4 million on lobbying activity in the second quarter of 2019.Technologyread more
Boris Johnson, one of the biggest voices in the Brexit movement, wins the Conservative Party leadership race by a 2-1 margin.Europe Politicsread more
Disney can nearly double its earnings by 2024, Morgan Stanley said in a note to clients on Tuesday.Investingread more
Amazon is expected to report its second-quarter earnings on Thursday.Investingread more
The largest residential brokerage company in the U.S. is partnering with the largest online retailer in a strategy to boost sales for both.Real Estateread more
Here are the biggest calls on Wall Street on Monday:
Rosenblatt said it sees Apple's fundamentals "deteriorating."
"We believe there is less reward for owning Apple stock after the recent stock rebound from stock buybacks and stable second quarter guidance. We do not think Apple is a short (the company has plenty of cash and a meaningful stock buy back program), however, we believe Apple will face fundamental deterioration over the next 6-12 months. "
Read more about this call here.
Needham said it thinks Apple is making a move from a company whose value is based on "subscriber and services growth" instead of value based on "hardware unit sales."
"We believe Apple is transitioning from a company valued based on hardware unit sales into a company based on subscriber and services growth. AAPL's pivot toward maximizing its lifetime value per unique user suggests more consistent revenue growth, expanding margins, and an expanding valuation multiple. "
Bank of America said the cybersecurity solutions company is poised to "disrupt" the industry.
"CrowdStrike is positioned well to disrupt the $7bn endpoint security market and expand from core detection and response capabilities to adjacent areas such as IT hygiene, vulnerability management, and more. "
Deutsche said it thinks American Express offers a good chance for "solid" returns and moderate relative "upside" over the next year.
"We believe shares of AXP offer a better chance for solid returns and moderate relative upside over the next twelve months, driven by stronger-relative expected EPS gr. and ROTCE vs. peers, and more insulated trading multiples/earnings stream amongst the cards from any potential wor-sening of consumer/credit expectations vs. card peers. "
Guggenheim initiated coverage on Best Buy and said it was the "most undervalued" large-cap retailer.
"We believe the combination of 1) a large and relatively stable "core" addressable market, 2) a leading industry positioning with an innovative approach to share gains, 3) irreplaceable vendor/retailer relationships, 4) a solutions-focused culture centered around the idea of technology adoption, 5) a mature omni-channel platform with superior supply chain capabilities, 6) a healthy and improving return profile, and 7) a modest valuation, positions BBY shares for outperformance. "
Credit Suisse downgraded the stock due to the airline's labor dispute and 737 Max issues.
"In our coverage universe, we see the greatest near-term downside risk to earnings estimates for AAL, driven by two primary (and mounting) headwinds: 1) the 737 MAX grounding; and 2) the ongoing mechanics labor dispute. "
Credit Suisse said it likes JetBlue's "execution" of cost and revenue initiatives amongst other things.
"The primary reasons behind our upgrade are 1) strong seasonal leisure demand this summer driving solid unit revenue performance; 2) continued execution of cost & revenue initiatives, which are ramping in H2 and into 2020; and 3) muted investor expectations relative to JBLU's 2020 EPS targets. "
Citi downgraded the stock on valuation and long-term industry "risks."
"We are reducing our rating on Verizon from Buy to Neutral given that rising long-term industry risks and its current valuation premium are likely to limit returns over the next 12-months. "
Read more about this call here.
Citi said it sees too "lofty" second half expectations for the networking & cybersecurity solutions provider.
"We are downgrading Juniper from Neutral to Sell and lowering our target price from $28 to $24. We have picked up recent competitive share gains by Arista and Cisco and this sets up for more share loss to Juniper and too lofty 2H expectations. Accordingly, we are lowering our 2H financial projections. "
Goldman said that it sees earnings risks "increasing" for the company that specializes in application services and delivery networking.
"Even though FFIV is trading near the bottom of its 3-year PE range (12X-19X) we believe that earnings risks are increasing due to the weaker short-term spending environment and increasing competitive threat. Enterprise represents ~65% of F5's revenue and short term indications for spending in that market have been weak. "
J.P. Morgan said the company's fundamentals look more "stable." Johnson Controls produces electronics and HVAC equipment for buildings.
"We upgrade from UW to N on JCI, as the stock has de-rated and fundamentals look more stable now vs peers, with management executing the Battery divestiture in the least dilutive way possible (buybacks vs expensive M&A), lending confidence it will not overpay for premium valued assets. "
Morgan Stanley double downgraded Bank of New York Mellon saying it sees a lower 10 year yield & slowing global GDP.
"With large cap Banks up 23% YTD & CCAR over, there are fewer positive catalysts. Looking ahead, global GDP is slowing & US jobs growth appears to be topping out. Lowering EPS & PTs as we price in Fed Funds forwards & 30bp lower 10 yr yields."