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 +1.95% (1864.7), D +2.00% (15973.8), N +1.44% (4019.2), CL1 +10.95% (29.08), Copper +1.47% (203.60), Gold -0.66% (1238.52) 10YrYld +0.08 (1.7395), DXY +0.43% (95.97) Vix -10.16% (25.06).

The S&P closed up 45bps from the European close to end the day at session highs. Volumes off more than 20% today vs yesterday to 8.7bln shares, 10% below avg. Dollars traded off 25% to $286bln, 15% below avg. More than 85% of volume printing to the upside.

Markets finally seeing a little relief after a brutal week. On the week….Nasdaq unch, S&P -1%, Europe -4%, Japan -11%…..Gold +7%, DXY -1%, Oil -6%. Oil saw first double digit gain since last August, some citing Venezuela comments but mainly short covering ahead of long weekend; FREEPORT +13%. Retail Sales small beat, probably a little surprising; XRT +2.4%. Rates continue to bounce, Dudley says talk of -ve rates extraordinary premature; been crazy week with 10yr range 1.52-1.87%. Big reversal in the Banks +5%, big change in sentiment overnight (we’re not out the woods yet), Dimon investing his salary in stock doesn’t hurt; JPM +8%. DEUT BANK ADR +12% plans $5.4bn bond buyback. On Earnings; WYNN +16% (Macau bottoming, 21% SI, prefer MGM), DUN & BRADSTREET +7% (QCC, solid earnings), AIG +5% (raised div, buyback), FIREYE -4% (mixed guide, billings weak), ACTIVISION -7% (Buy, cuts guidance on game delay, our big picture inv case remains intact). VISA +3% (QCC) disclose 9.99% holding in SQUARE +8%, taking stock back above $9 IPO price. INTERCEPT PHARMA +27% renewed t/o speculation, AZN +2% mentioned. Markets closed Monday and Earnings starting to ease; in our names ARISTA (Buy), NVIDIA (Buy), PRICELINE (Short) and WALMART (Buy). Consumers been highlighted this week in the hunt for yield; CAGNY kicks off Tuesday with QCC names CL, CLX & PM; and Technical Buys CPB, SJM & PG. Some concerns Japan may react over the weekend with GDP/IP Sunday night. China reopens with Import/Export data. Draghi speaking Monday 9am ET (ECB mins Thu).

OUTPERFORMERS: Materials +6.4%, Banks +5.3%, Homebuilders +4%, Autos +3.1%, Oil Services +3%

UNDERPERFORMERS: Utils -30bps, Defense +60bps, Media +1.1%, Telco +1.2%, Pharma +1.4%

COMMODS: WTI +11.5%, Brent +10%, Gasoline +10%, Cocoa +2.8%, Copper +1.4%, Ally +1%, Silver -30bps, Gold -80bps

ECO: Import Price Index -1.1%, est -1.5%. Retail Sales +0.2%, est +0.1%. Michigan Sentiment 90.7, est 92.3.

WEEKLY OUTPERFORMERS: Gold Miners +10%, Airlines +5%, Materials +1.2%, Staples +60bps, Retail +20bps

WEEKLY UNDERPERFORMERS: Solar -15%, Drillers -11%, Inv Banks -6%, Oil Services -6%, Media -4.5%

ACTIVE TODAY:

TMT
NETFLIX +1.2% d/g @ FBR
INTERPUBLIC +20bps $300mm b/b
ZILLOW -90bps q4 loss wider than est, revs miss, q1 rev midpoint below est
VERISIGN +3.8% q4 eps, revs small beat, boosts b/b
QLIK TECHNOLOGIES -9.3% q4 eps/revs miss, q1 guide below est
LOGMEIN +3.7% q1 eps/revs beat, sees q1 eps below est/revs above
COHU +45bps q4 eps/revs beat
CBS -90bps q4 eps inline, revs better
GROUPON +29% q4 profit vs b/e est, boosts fy ebitda forecast
PANDORA -12% q4 eps, revs miss, guidance below est
FIREEYE -3.3% q4 inline w/ pre-announcement, sees fy revs better than est
CYBERARK -10.8% q4 eps/revs beat, sees fy revs better/eps below est
ACTIVISION -7.9% q4 eps/revs miss, sees fy better than est
WEB.COM -1% q4 eps best, revs small miss
SPRINT +4.3% d/g @ HSBC
SQUARE +7.9% details of Visa hldgs disclosed

CONSUMER
RUTH’S HOSPITALITY +4.9% q4 eps small beat, revs small miss
BED BATH & BEYOND +1.8% d/g @ Oppenheimer
CONAGRA +3.3% u/g @ BofA/Merrill
NU SKIN -6.6% q4 eps/revs miss, guidance light
DR PEPPER SNAPPLE +2.7% $1bln add’l b/b
WYNN RESORTS +15.8% q4 revs slight miss
COLUMBIA SPORTSWEAR +15.9% q4 eps/revs beat

CAPITAL GOODS
BOEING +20bps d/g on SEC probe @ JPMorgan
EMERSON +1.3% q1 eps/revs beat, q2 guide light, reaffirms fy

HEALTHCARE
DENTSPLY -3.2% q4 eps inline, revs miss
DAVITA unch’d q4 eps/revs beat
NUVASIVE -6.5% q4 eps beat, revs inline
INTERCEPT +27.5% said to be in talks

SERVICES
INSPERITY +7% q4 eps/revs miss, guidance ahead of est

FINANCIALS/REAL ESTATE
AIG +4.9% q4 loss wider than est, $5bln b/b
VENTAS -60bps q4 eps/revs beat
JP MORGAN +8.3% CEO purchases 500k shares
MONEYGRAM +18.5% q4 inline
LPL FINANCIAL -34.7% q4 eps/revs miss

ENERGY
LINNCO -22.7% d/g to sell @ Citi
SUNCOR +4.6% u/g @ Citi

MATERIALS
BUNGE +7.7% u/g @ JPMorgan
ARCHER DANIELS MIDLAND +2.6% d/g @ Argus

Have a great weekend.