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 +1.65% (1895.6), D +1.39% (16196.4), N +2.12% (4104.3), CL1 -1.12% (29.11), Copper +1.26% (205.70), Gold -0.72% (1200.71) 10YrYld +0.04 (1.7861), DXY +1.04% (96.93), Vix -5.35% (24.04).

The S&P closed up 85bps from the European close ending the day at session highs. Volumes off 5% from Friday to 8.4bln shares, more than 1bln below avg. Dollars traded off 2% to $284bln, close to 20% below avg. 85% of volume printing to the upside.

Markets led higher by big short unwind, no real catalysts, Oil lower, macro light. Eminis +1.6% vs Most Short +3.2%. DXY +1% sees best rally of the month, still struggling a 200dma, EUR 1.1137, JPY 113.98. Rates also higher adding further reason to cover Banks shorts (JPM Investor Day 2/23). Oil slips back to $29, off overnight high of $31.50; production freeze not enough. Big shorts; CHESAPEAKE +17%, FREEPORT +15%. Gold sees biggest down day in 2 months; ABX/NEM -5% report tomorrow pm. On Earnings; CANADIAN SOLAR +18%, GENERAC +17%, HORMEL FOODS (QCC, new highs) +7%, GENUINE PARTS +2%, BAXALTA +1%. ADT +48% being acquired by Apollo for $42/share in cash, $6.9bn. LIBERTY GLOBAL and VODAFONE to merge Dutch operations. ALIBABA +9% takes 5.6% stake in GROUPON (BABA up on big China unwind, ASHR +7%). ACTIVISION (Buy) +5% almost back to flat post Thursday nights earnings; NVIDIA (Buy) +5% next catalyst for eGaming theme tomorrow, Ubisoft ID Thursday. PRICELINE (Short) +5% reporting tomorrow, seen 17% bounce off the lows in the last week. Consumers remain in focus with CAGNY; and Barclays host Industrials conference (BA, GE).

OUTPERFORMERS: Solar +6.1%, Retail +4%, SOX +3.5%, Biotech +3%, Regional Banks +3%

UNDERPERFORMERS: Gold Miners -8.7%, Telcos +50bps, Utils +60bps, Materials +70bps, Staples +70bps

COMMODS: OJ +4.5%, Wheat +1.3%, Ally +1.1%, Copper +1.1%, WTI -1.3%, Gold -2.8%, Nat Gas -3.1%, Silver -3.3%, Gasoline -6.6%

ECO: Empire Man -16.64, est -10.00. NAHB Housing 58, est 60.

AFTER-HRS NEWS/MOVES:

CERNER -8% q4 eps beats, guidance dissapoints
FOSSIL +9.4% q4 eps/revs beat, fy guide midpoint better than est
RACKSPACE -2% q4 adj ebtida beats, rev guidance light
AGILENT -5.9% q1 eps beats, guidance below est
EXPRESS SCRIPTS -2.4% q4 inline, q1 eps view below street
KINDER MORGAN +6.7% Berkshire Hathaway discloses new stake
CHEESECAKE FACTORY q4 eps beat/revs miss

ACTIVE TODAY:

TMT
SONUS +30.1% q4 eps, revs beat
ARM HLDGS +15bps d/g @ Macquarie
QUALCOMM +4.9% u/g @ Bernstein
DISH +1.9% u/g @ Barclays
LIBERTY GLOBAL +7.5% in Dutch deal with Vodafone
GROUPON +41.2% on 5.6% stake disclosed by ALIBABA

CAPITAL GOODS
CANDADIAN SOLAR +17.7% q4 prelim revs better than est, suspends offering
SUNEDISION +14.9% multiple hf’s disclose stakes, d/g @ BofA/Merrill
BORG WARNER +2.1% d/g @ Sterne Agee CRT
GENERAC +17.3% q4 eps/revs beat

CONSUMER
VF CORP +1.4% d/g @ Stifel
RESTAURANTS BRANDS +5.7% q4 eps/revs beat
ADT +47.5% to be acq’d by p/e for $6.9bln cash
DOLLAR GENERAL +3.7% / DOLLAR TREE +4.4% u/g @ Morgan Stanley
HYATT +3.8% u/g @ Morgan Stanley
HORMEL FOODS +7.1% q1 eps beats, revs miss, fy guide better than est
PROCTOR & GAMBLE +60bps u/g @ Sterne Agee CRT
LOWE’S +4% replaces TARGET +2.2% on focus list @ JPMorgan
WHIRLPOOL +2.5% positive AHAM industry data

HEALTHCARE
BAXALTA +85bps q4 eps/revs beat, q1 view below est
BIOMARIN +6% u/g @ Stifel
COMMUNITY HEALTH -22.1% q4 adj ebitda/operating revs miss
CIGNA +3% new stake taken by Starboard

FINANCIALS/REAL ESTATE
CHARLES SCHWAB +3.3% u/g @ CLSA
VENTAS +2.7% d/g @ Stifel
CREDIT SUISSE -1.9% d/g @ JPMorgan
MORGAN STANLEY +2.7% u/g @ JPMorgan
KEYCORP +4% postive comments in Barron’s

ENERGY
TOTAL -80bps u/g @ Bernstein

MATERIALS
MOSAIC +2.8% d/g to sell @ SocGen
Have a good evening.