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 +1.45% (1945.5), D +1.40% (16620.7), N +1.61% (4231.3), CL1 +6.21% (31.48), Copper +1.83% (211.85), Gold -1.42% (1208.86) 10YrYld +0.01 (1.7535), DXY +0.80% (97.38), Vix -5.60% (19.38).

The S&P closed up 15bps from the European close ending the day just off the best levels seen all day. Volume tapered a bit off more than 6% from Friday to 7.1bln shares, 2bln below avg. Dollars traded off 6.5% to $248bln, $80bln below avg. About 90% of volume printing to the upside.

A lower volume continuation of last week’s rally with the S&P staying in a remarkably narrow range for after the first 5-10min of the day. Crude a big driver of course w/ it’s 6% plus move. Commod related names continue to try to get back ground leading once again this week. Most shorted not coincidentally up 2.5% solidly outperforming. There did seem to be a touch more participation in cyclical, industrial, growth names today though as noted volume on this moves: Homebuilders, Autos, Social Media, Transportation, Banks all outperforming the broad mkt as well. Reports of UNITED TECHNOLOGIES +4.7%/ HONEYWELL -2% part of that. Defensive sectors including Gold underperforming. The S&P about only a quarter of a percent from a positive cross of the 50dma. That broad endorsement of the market’s move psychologically important to continue as the leading sectors of late still have a lot of ground to make up before really being able to make a sustainable, technical case.

OUTPERFORMERS: Metals/Mining +14.6%, Coal +10.5%, Drillers +5.2%, Explorers +4.8%, Homebuilders +3.5%

UNDERPERFORMERS: Packaged Foods -30bps, Household Products +40bps, Food/Bev/Tobacco +45bps, Staples +45bps, Telco +65bps

COMMODS: Crude +5.1%, Gasoline +4%, Coffee +3.5%, Heating Oil +2.9%, Nickel +2.7%…..OJ -3.7%, Gold -1.9%, Cotton -1.4%, Silver -1.3%, Wheat -60bps

ECON: Chicago Fed 0.28 vs -0.05 est, Markit US Manf PMI 51 vs 52.4 est

AFTER-HRS NEWS/MOVES:

PDL BIOPHARMA +6% q4 eps/revs beat
TEXAS ROADHOUSE +3.9% q4 eps/revs beat
FITBIT -15.6% q4 eps beats but guidance poor
CHEGG -21.4% q4 adj ebtida beats, revs miss, guidance poor
BHP BILLITON -3.1% 1st half miss, cuts dividend
VEECO -10.9% q4 eps/revs beat, q1 revs guide light
TENET -7.1% q4 eps inline, revs better, fy guide midpoint below est
VALEANT -9.6% said to restate earnings per press

ACTIVE TODAY:

TMT
TRIPADVISOR -50bps /EXPEDIA -1.6% d/g to sell @ Stifel
LINKEDIN +2% d/g off conviction list @ Goldman
CREE +3.9% u/g @ Piper Jaffray
YAHOO +3.8% said to reach out to potential buyers this week per press
LIONSGATE +40bps positive comments in Barron’s
PALO ALTO +2.3% positive comments @ Piper Jaffray
IMAX +3% u/g @ Wedbush
VERIZON +40bps $1.8bln purchase of XO Comm’s fiber business
CIRRUS LOGIC +4% positive comments on next iPhone specs @ OTR Global
FORTINENT +1.8% press report co has seen inbound interest

FINANCIAL
STIFEL FINANCIAL -7.1% d/g @ Credit Suisse
SYNCHRONY +3.5% positive comments in Barron’s
FANNIE -70bps /FREDDIE unch’d: negative column in WSJ

HEALTHCARE
EXPRESS SCRIPTS +1.4% d/g to sell @ Deutsche
PERRIGO -4.1% d/g to sell @ Goldman
ALLERGAN +3.7% q4 eps beats, revs inline
ABBVIE +1.8% top global pharma pick @ Jefferies
WELLCARE +9.4% u/g @ BofA/Merrill
VALEANT -10.7% negative valuation comments @ Wells Fargo

CAPITAL GOODS
FLOWSERVE +4.6% d/g @ Maxim
UNITED TECHNOLOGIES +4.7% /HONEYWELL -2% said to have held talks

CONSUMER
DEAN FOODS -7.8% q4 eps beat, revs miss
DECKER’S OUTDOOR +1.3% positive comments @ Canaccord
COACH +1% top buy still @ UBS
BEST BUY +2.6% positive comments @ ITG
MCDONALDS +1% cautious comments @ Cleveland Research
FOOTLOCKER -40bps cautious comments @ ITG
SYSCO -4.9% to acq European dist for $3.1bln

ENERGY
WHITING +6.9% suspends Bakken drill plans
COBALT +11.4% q4 loss touch wider than est, reduces capex guide below est

MATERIALS
ARMSTRONG WORLD INDUSTRIES -3% q4 eps/revs miss
STILLWATER MINING+9.8% q4 #s beat est
LUMBER LIQUIDATORS -19.8% higher cancer risk seen by CDC
POTASH +45bps #s cut @ Susquehanna
ALCOA +13.2% best level in 6 weeks

TRANSPORTATION
CSX +3.2% u/g @ BofA/Merrill
SWIFT +2.5% /KNIGHT +2.7% u/g @ BofA/Merrill
FEDEX +4.3% positve comments @ Stifel