Argus analyst David Coleman upgraded Southwest to Buy with a $68 price target, telling investors shares have further upside. He notes management has taken steps to lower nonfuel operating cost and has been creative in generating additional sources of revenue. Coleman said the company has recently implemented a $500M reservation system that should generate an additional $500M in earnings by 2020, has a clean balance sheet, and an impressive record of returning capital to shareholders through dividends and buybacks. The analyst continues to see upside to shares and thinks a premium multiple is deserved given high levels of profitability and market performance.

Says majority of Boeing (BA) capacity cuts expected to take place early in the year.

Says saw nice acceleration in managed business revenues in Q1. Says continued streak of "solid" operations performance in Q1. Says eliminating service in Syracuse, Cozumel, Bellingham, and Houston. Says reducing flights in Atlanta and Chicago. Comments taken from Q1 earnings conference call.

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Notable companies reporting before tomorrow's open, with earnings consensus, include Merck (MRK), consensus $1.87... Caterpillar (CAT), consensus $5.14... Comcast (CMSCA), consensus 99c... Honeywell (HON), consensus $2.17... Bristol-Myers (BMY), consensus ($4.44)... Altria (MO), consensus $1.15... Keurig Dr. Pepper (KDP), consensus 35c... GE Vernova (GEV), consensus (37c)... Royal Caribbean (RCL), consensus $1.33... Tractor Supply (TSCO), consensus $1.72... Mobileye (MBLY), consensus (6c)... Textron (TXT), consensus $1.23... LabCorp (LH), consensus $3.48... Southwest Airlines (LUV), consensus (34c)... American Airlines (AAL), consensus (29c)... Harley-Davidson (HOG), consensus $1.51.