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 -0.81% (1932.2), D -0.74% (16516.5), N -0.81% (4201.1), CL1 +3.29% (33.86), Copper +0.14% (212.80), Gold +1.29% (1238.47) 10YrYld -0.02 (1.7382), DXY +0.09% (98.25), Vix +3.63% (20.53).

The S&P closed down 125bps from the European close, about the high of the day, to go out at the lows. Volumes about flat with Friday at 8bln shares vs 8.9bln avg. Dollars traded also about flat at $275bln vs avg of $315bln. 55-45 down volume vs up volume.

Markets close on session lows, S&P posts 3rd straight monthly loss, macro disappoints. Eminis -60bps (back below 50dma) vs Most Short unch. DXY upside momentum continues; GBP 1.392, JPY 112.74. 2/10 continues to bleed lower; 10yr 1.74%, Banks -2% underperform. China RRR cut having little effect; ASHR -2.4%, FXI -40bps (PMI 8pm). Oil higher but commentary remains inconsistent, we continue to avoid the sector; EXXON -2% host Analyst meeting on Wed, said to be considering $12bn bond sale. Gold reversing Friday’s losses, Gold Miners all speaking at BMO conference today; GDX +3.7%. New lows Nat Gas; SWN -9%. On Earnings; BROADSOFT +17% (raised FY), SIGNET +9% (Q4 at top end), CONSOL +10% (Mine sale and suspends Div), HORIZON -13% (Q4 solid but discloses receipt of subpoena), ENDO -21% (cuts Rev guide). VALEANT -18% making new lows, confirms SEC probe. In eGaming, Vivendi raised Gameloft offer 20% and raised stake in Ubisoft to 15.66%. Very little news outside the earnings but few things to note for the rest of the week. Retailers make up the bulk of the earnings; KROGER +1.2% (Buy) Thursday. Big data week with PMIs, ISM, ADP, Beige Book, Durable Goods and Nonfarm Friday. Auto Sales tomorrow coincide with first press day at Geneva Motor Show. In Tech, MS hosting 4 day conference in SF, all the usual names involved. Full details below.

OUTPERFORMERS: Materials +4.3%, Gold Miners +3.7%, Solar +1.4%, Oil Services +60bps, Utils +20bps

UNDERPERFORMERS: Biotech -2.8%, Regional Banks -2.3%, Pharma -1.8%, Explorers -1.7%, Railroads -1.5%

COMMODS: WTI +3.5%, Sugar +2.6%, Silver +1.4%, Gold +1.4%, Ally +1%, Copper +20bps, Cotton -1.7%, Nat Gas -4.6%

ECO: Chicago PM 47.6, est 52.5. Pending Home Sales -2.5%, est +0.5%. Dallas Fed -31.8, est -30.0.

AFTER-HRS NEWS/MOVES:

WORKDAY -1.5% q4 loss less than est, revs small beat, q1 rev guide below est
PTCT THERAPEUTICS -2% q4 wider loss than est, revs touch light
TUBEMOGUL +8.3% q4 adj ebitda/revs beat, fy revs guide better than est
ROCKWELL MEDICAL -14% q4 loss vs profit est, revs light

ACTIVE TODAY:

TMT
AMC ENTERTAINMENT +3.1% q4 eps beat, revs miss
AMBARELLA +5.3% positive comments @ Stifel
ATMEL -15bps q4 inline w/ prev guide
TRIBUNE MEDIA +9% q4 adj ebitda/revs beat, to explore strategic alternatives
YELP +1.9% presents at conf
AKAMAI -2.3% internal fcpa compliance review

HEALTHCARE
ENDO -21% q4 eps beat, revs inline, fy revs guidance below est
VALEANT -18.4% CEO returning, withdraws forecast, debt under ratings review, SEC investigation
HORIZON PHARMA -13.3% q4 eps/revs beat, discloses subpoena

CONSUMER
UNITED NATURAL FOODS -21.4% sees q2 below est
CAMPBELL SOUP -40bps u/g @ Goldman
CHIPOTLE +60bps p/t raised @ Piper Jaffray
SIGNET +9.4% q4 eps above prev range, add’l $750mm b/b
STEVE MADDEN -1.7% positive comments @ Piper Jaffray
GENERAL MOTORS -65bps d/g @ Argus

CAPITAL GOODS
GRACO +1.8% u/g @ RBC
TASER +10.9% q4 eps/revs beat
FEDERAL-MOGUL +45.8% receives proposal from Icahn
EATON -1% positive comments @ Wells Fargo

FINANCIALS
OCWEN -38.4% q4 revs mis, higher delinquencies
ICAHN ENTERPRISES +3.7% q4 revs down 24% y/y
CITI -1.7% to acq Costco cc portfolio from AMERICAN EXPRESS +35bps

MATERIALS
LUMBER LIQUIDATORS +2% q4 loss wider than est, revs miss

ENERGY
NEWFIELD EXPLORATION +4.6% u/g @ Raymond James
SOUTHWESTERN ENERGY -9.4% d/g @ Raymond James
EOG RESOURCES -4.1% d/g @ Wunderlich
FRANK’S INT’L +6.9% q4 eps inline, revs miss
CONTINENTAL RESOURCES +2.8% u/g @ Stephens

This week’s Earnings and Eco highlights…..

TUE: AutoZone, Dicks Sporting, Dollar Tree, JD.com, Kate Spade, Ross Stores; Geneva Motor Show, MS TMT (4 days), JMP Tech; Markit Man PMI, ISM, Construction Spending, Auto Sales.
WED: Abercrombie, American Eagle, Costco, Exxon AM, SunEdison; ADP Employment, Beige Book.
THU: Ambarella, Burlington, Ciena, HPE, Joy Global, Kroger, Navistar; Challenger Jobs, Services/Comp PMI, ISM Non-Man, Factory Orders, Durable Goods
FRI: Staples; Nonfarm Payrolls

Have a good evening.