Aviate US Summary

The authors of the content on this page from Sept 2012 to June 2017 are:
Market Commentaries: Gary Paulin, Ameet Patel, Paul Moran, Douglas Morton, Oliver Sherman, Ben Brownette, Rob Arnott, James Santo, Neil Campling
Research: Ameet Patel, Paul Moran, Douglas Morton, Oliver Sherman, Rob Arnott, Neil Campling

S&P -1.23% (1829.1), D -1.60% (15660.2), N -0.10% (3962.2), CL1 -1.79% (26.96), Copper -0.76% (201.15), Gold +4.11% (1246.32) 10YrYld -0.01 (1.6573), DXY -0.31% (95.58), Vix +7.04% (28.14).

Markets remains under pressure but went out towards the upper end of the day’s range, the growing fear best reflected in the 2016 Gold Rush; S&P lost $2tn ytd. S&P +80bps from the Euro close. Overall volumes +22% DoD and 16% above 20d ave, biggest of the year. DXY -30bps downside pressure continues; JPY tests 111 (Japan reopens tonight), EUR breaks above 1.13. 10yr hit 1.52%; Banks post biggest down day of the year; Euro comps -6.3%. Oil also makes a new low but just before we broke $26 bberg headline hit suggesting OPEC ready to cooperate on cut….popped $1, hmmm. Gold puts up biggest intraday rally in 6 years; GDX. On Earnings; TRIP ADVISOR +12% (Q4 beat, 13% SI), CENTURYLINK +11% (guides to upper end), CISCO +10% (relief guidance maintained), EXPEDIA +10% (numbers mixed, 9% SI), TESLA +5% (deliveries ahead, cash burn continues, stay short), KELLOGG +4% (solid, reaffirms), TWITTER -5% (no user growth), MYLAN -18% (earnings miss and paying a lot for Meda), MONSTER WW -36% (weak guide). Again very little news flow outside the earnings. We reiterate our Buy call in KROGER -1%following WHOLE FOODS +20bps earnings, higher growth for less. Also note, Reuters reporting KROGER (Buy) may bid for THE FRESH MARKET +22%, which we see as a positive. CISCO remain negative on global macro but certain pockets of the business are improving; +ve ARISTA +1.5% who report next week. QUALCOMM +10bps says China Smartphone demand is strong; APPLE -60bps. TATA MOTORS ADR -8% making new lows on weak JLR China deliveries. BOEING -7% sees second huge move lower in 2 weeks, co said to face accounting probe; huge breakdown in chart now. 2 small Biotech IPOs today and both broke price; AVXS -10%, PTI -17%. Looking into tomorrow; Earnings expected from Interpublic, focus on Retail Sales at 8:30am.

OUTPERFORMERS: Gold Miners +7%, Media +1%, Tech Hardware +50bps, Materials +50bps, Retail -30bps

UNDERPERFORMERS: Solar -5%, Banks -4.2%, Homebuilders -4%, Defense -3.2%, Biotech -2.4%

COMMODS: Gold +4%, Silver +3%, Gasoline +1.8%, Ally +30bps, Copper -80bps, WTI -1.4%, Sugar -2.3%, Nat Gas -2.6%

ECO: Initial Jobless 269k, est 280k.
AFTERHOURS

ACTIVISION -18% Sees FY EPS $1.75, market $2.05. Sees Revs $6.1bn, market $6.5bn. Raised div 3c.
AIG -50bps Wider loss than expected, to nominate Paulson and Ichans Merksamer to board
CBS -1% Q3 EPS inline, Revs small beat
FIREYE -3% Sees FY EPS Loss 49-53c, est Loss 41c. Sees FY Revs at upper end but billings lower.
PANDORA -6% cuts EBITDA guidance
NU SKIN -15% Cuts FY EPS/Rev guidance

ACTIVE TODAY

TMT
ZYNGA -15% q4 b/e inline, revs beat, bookings outlook dissapoints
CISCO +10% q2 eps beats, revs small better, q3 guide inline
AMAZON +3% $5bln b/b
TWITTER -5% q4 eps beat, revs inline, maus flat q/q, q1 revs light of est
EXPEDIA +10 bps q4 light
THOMSON REUTERS -3% q4 eps beat, revs inline, sees lsd rev growth fy
TRIPADVISOR +13% q4 eps, revs beat
NOKIA +1.3% q4 eps beat, res miss
CENTURY LINK +11% q4 eps, revs beat, guidance better
DISH +5% positive comments @ Jefferies
MONSTER WORLDWIDE -37% q4 beats, q1 guide below est
3D SYSTEMS +8% sees q4 revs better than est
TIME WARNER +4% u/g to conviction buy list @ Goldman
SPLUNK -2% positive mention @ OTR Research

CONSUMER
WYNN +3% Chairman stock purchase
TESLA +5% q4 eps/revs miss, fy delivery guidance better than est
SKECHERS +4% q4 1c light, revs beat
WHOLE FOODS +20bps q1 eps beat, revs touch better
MOLSON COORS -60bps q4 small eps miss, revs about inline
O’REILLY AUTOMOTIVE +5.4% q4 eps, revs beat q1 guide better than est
ADVANCE AUTO PARTS -10bps q4 small eps best, revs just miss, sees ’16 comps lsd
WENDY’S -3.5% d/g @ JPMorgan
FLOWER FOODS -20% q4 eps, revs miss, fy guide below est
PENSKE AUTOMOTIVE +80bps q4 eps inline, res beat
JARDEN -1.7% sees fy eps better than est
REYNOLDS AMERICAN +2.2% q4 eps small miss, revs inline, fy guide midpoint below est
GROUP 1 AUTOMOTIVE -3.4% q4 eps miss, revs inline
PEPSICO -70bps q4 inline, fy guide touch below est
BLUE NILE -23% q4 eps inline, revs miss, guide below est, spec div 70c/shr
INT’L FLAVORS & FRAGRANCES -13% q4 eps, revs miss
KELLOGG +4% q4 eps beat, revs just miss
WHITEWAVE -1% q4 eps penny beat, revs inline, fy guide looks touch light
TREEHOUSE +40bps q4 eps beat, revs inline, guide a little light

CAPITAL GOODS
IROBOT -14% q4 eps/revs small beat outlook below est
WABCO -3.7% q4 eps, revs beat, fy guide below est
WATSCO +10% q4 eps beat, revs inline
BORG WARNER -50bps q4 eps/revs beat, reaffirms guidance
WW GRAINGER +10bps Jan daily sales +4%

HEALTHCARE
MYLAN -18% q4 eps, revs miss, to acq Meda for ~$7.2bln
QUINTILES TRANSNATIONAL -5% q4 eps beat, revs inline, guides fy better than eset
SHIRE -2% q4 eps beat, revs touch better
SMITH & NEPHEW -3% d/g @ UBS
INCYTE -9.4% halting study
VCA INC +1.8% q4 eps /revs beat, guide better than est

FINANCIALS
KKR -5% q4 net income, revs below est
ALLIANCE BERNSTEIN -2.1% q4 epu beat, revs light
VISA -2.4%/MASTERCARD -1.4%/DISCOVER -5.5%/CAPITAL ONE -3.4% d/g @ BofA/Merrill
REGIONS FINANCIAL -5.7% d/g @ Morgan Stanley
OCH-ZIFF -26.4% q4 loss vs b/e est, revs miss
LENDING CLUB +5.7% q4 eps inline, revs beat, fy revs guide better than est

MATERIALS
MOSAIC +5.7% q4 eps, revs beat
KINROSS GOLD +13% q4 loss wider than est, revs beat
AGNICO EAGLE +6% q4 small profit vs b/e est, revs miss
LOUISIANA-PACIFIC -2% q4 small profit vs est of loss, revs miss, adj ebitda beats
FMC CORP -2% q4 eps beat, revs miss, sees fy below est

ENERGY
TOTAL -70bps q4 net income beats
OCEANERRING -4.6% q4 inline, revs beat
PIONEER NATURAL +1.8% q4 loss less than est
HERCULES OFFSHORE +18% exploring strategic alternatives

SERVICES
NIELSEN +4.2% q4 eps small beat, revs inline

Have a good evening.