Nordstrom (JWN) , Acacia Communications (ACIA) ; CPI down 0.4% -- retail sales flat (food and drink)
- Return to the halcyon days of the department store?
- Multiple upgrades of Alibaba (BABA) -- the Chinese stock to own; buy to conviction buy, Goldman Sachs (GS) ; JPMorgan (JPM) $96 to $129.
- Acacia Communications -- disruptive telco equipment play with scorching q. Using silicon (siliconization) helps web 2.0 content providers and traditional service providers build fiber optic networks at lower cost, while increasing network capacity substantially to meet the bandwidth drivers like Internet of Things. Strong demand from China; strong demand from metro and inter-data center networks. Long haul and metro and inter-data center networks. Step function increase in demand. Good visibility and ongoing demand. 100G Ethernet is gold standard for internet speed and Acacia makes products that make it possible. Read-throughs: Infinera (INFN) , Ciena (CIEN) , Finisar (FNSR) , Lumentum (LITE) ; 101% revenue growth-actual GAAP income ($23 m). China, 50% surge in orders, metro core demand. ZTE big customer -- 46% rev backbone build out. $116/77 v.$85.
- J C Penney (JCP) -- appliance rollouts; new Sephora, instore.com fulfillment, 52% improvement. Comps will be 3-4%; General Motors (GM) 10 to 30 bps., EBITDA-$1b.
- OurPet's Company (OPCO) says buy Home Depot (HD) $150 to $154.
- Citi C says top pick in semi equipment is now Applied Materials (AMAT) , Lam has moved down.
- Stifel goes $50 to $60 Dicks Sporting Goods (DKS) . What a problem Sports Authority was; UBS says accelerating gains.
- RBC Mahany says will be no Alphabet (GOOGL) slowdown.
- Stifel says Mallinckrodt (MNK) is a buy $95 as it transforms generic controlled substances and nuclear imagers to durable specialty and hospital based treatments.
- Twilio (TWLO) on move again.
- Nvidia (NVDA) -- monster -- deep learning, self-driving cars, gaming, data center, virtual reality chips.
- Hewlett Packard Enterprise (HPE) buys Silicon Graphics International (SGI) -- high performance computing for deep learning. In memory high performance analytics.
- JWN--$56 to $63 -- Piper.
- Broadcom (BRCM) -- Baird- starts with outperform.
- Expedia (EXPE) large cap pick at RBC.
- RBC says Netflix (NFLX) can overcome headwinds.
