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 -0.18% (2015.9), D +0.13% (17251.5), N -0.01% (4367.1), CL1 -2.02% (36.43), Copper -0.22% (223.45), Gold -0.19% (1232.90) 10YrYld +0.01 (1.9681), DXY +0.00% (96.63), Vix +0.47% (17.00).

Another relatively quiet session, Commod proxies and Biotech underperform. S&P +30bps from the Euro close. Overall volumes +2% DoD and 20% below 20d ave. Most Short -3.3%. DXY and Rates broadly flat, some bigger moves in EM; Brazil weak again as we await Lula decision; EEM -1.4%, EWZ -6.4%. Oil down again as Iran concerns grow, API 4:30pm. DEVON -3% and LINE ENERGY -31% on –ve updates. Gold sees 3rd successive down day, profit taking ahead of the Fed. Citi –ve on Copper; XME starting to roll over; ALCOA -5%, FREEPORT -7%. Would be adding to Shorts in CAT/SLB etc. Reuters reports Zoomlion will raise TEREX +7% bid with special div. Retail Sales came in a little better and on earnings; CHILDRENS PLACE +8%, DSW +3%. VALEANT -51% destroyed on earnings blowup, stock now fallen 87% since August, several high profile investors still involved. Whilst not in the IBB ETF the news is forcing more selling across the space; MALLINCKRODT -15%, ENDO -23% sit at the bottom of the S&P. At the other end MEAD JOHNSON +11% strong on takeover speculation, been on the radar for years with Betaville suggesting co hired Lazzard to handle latest interest (Danone/Nestle). APPLE (Sell) +2% trading well on +ve MS note, we continue to count concerns from supply chain; SOX -10bps. FT pick up on fears in the subprime auto market; FIAT (Sell), ALLY -2.2%, SANTANDER CONSUMER -9%. Banks drifting, LEUCADIA -6% back to the lows following worrying update from Jefferies; BKX -20bps. TIFFANY (Sell) underperforming on downgrade, earnings Friday. Looking into tomorrow; Housing Starts, CPI and Ind Prod premarket, FOMC 2pm with press conference 2:30pm; FEDEX report after the close.

OUTPERFORMERS: Gold Miners +2.1%, Tech Hardware +1.1%, Cons Disc +30bps, Retail +20bps, Utils +20bps

UNDERPERFORMERS: Biotech -3.8%, Materials -2.8%, Pharma -1.7%, Oil Services -1.2%, Inv Banks -1%

COMMODS: Nat Gas +1.75, OJ +80bps, Copper -30bps, Gold -1.1%, Coffee -1.3%, Silver -1.6%, Ally -1.7%, WTI -2.2%

ECO: Retail Sales MoM -0.1%, est -0.2%. PPI -0.2%, est -0.2%. Empire Man +0.62, est -10.50. NAHB Housing Market 58, est 59. Business Inventories 0.1%, est 0.0%.

AFTER HOURS

ORACLE +3% Q3 EPS 2c Beat, Revs a little light; $10bn Buyback

TMT
QIHOO -50bps 360 d/g @ Stifel
QIWI -9% q4 miss
AMAZON +70bps to launch database migration service
APPLE +2% positive tracking comments @ Morgan Stanley & @ Rosenblatt

CAPITAL GOODS
DELPHI +1.2% u/g @ UBS
HD SUPPLY +5% q4 adj ebitda/revs beat, guidance midpoint beats
HARMAN -80bps positive comments @ JPMorgan

HEALTHCARE
MEAD JOHNSON +11% renewed t/o spec on report has hired bankers
VALEANT -50% unmitigated disaster of an earnings report/call
GILEAD -1.2% p/t lowered @ Jefferies
MANNKIND +1.1% cautious comments @ RBC
ALERE -8% received grand jury subpoena
ELI LILLY -3.6% makes changes to Alzheimer’s study
MALLINCKRODT -14% negative comments @ Citron

CONSUMER
CHILDRENS PLACE +8% q4 beats, guidance above street
HOME DEPOT +60bps p/t raised @ Oppenheimer
TIFFANY -2.5% d/g @ Citi
DSW +3% q4 beat
RENT-A-CENTER +6.5% u/g @ Raymond James
DARDEN -1.5% Starboard trims stake
MOHAWK -1.4% d/g @ JPMorgan
SANDERSON FARMS -7% d/g to sell @ Goldman

FINANCIALS
STATE STREET -1.7% sees $250-300mm in staff reduction costs
LEUCADIA -6% poor Jefferies i-banking results
RBS +40bps u/g to conviction buy @ Goldman

ENERGY
WHITING PETROLEUM -6% d/g @ JPMorgan
OASIS PETROLEUM -1.5% u/g @ JPMorgan
NOBLE CORP unch d/g @ Susquehanna

Have a good evening.