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 +0.10% (2051.6), D +0.12% (17623.9), N +0.37% (4427.0), CL1 +1.19% (39.91), Copper +0.31% (228.95), Gold -0.90% (1244.06) 10YrYld +0.05 (1.9190), DXY +0.29% (95.37), Vix -1.14% (13.86).

Markets held relatively tight range on merger Monday. S&P +10bps from the Euro close; Most Short -60bps. Overall volumes 25% below 20d ave, setting new low for the year. DXY holding Friday’s bounce, Goldman reiterate long USD call; EM holding gains. Rates given boost from Fed comments but Banks overall flat; 10yr. Lockhart flagging Brexit risk. Oil bounced back to $40 following comments Saudi happy to proceed with freeze without Iran, OPEC sec gen says oil price has bottomed; Copper flat, Gold starting to roll again. SCHLUMBERGER +2% sees further weakening in Q2, with Q1 Sales -15% QoQ. US STEEL -4% lagging on dgrade / further job cuts. No major earnings this morning but plenty of M&A. SHERWIN WILLIAMS -5% acquires VALSPAR +23% for $11.3bn in cash. MARRIOT -1.2% improves STARWOOD +4.5% terms, would expect Anbang to also improve. IHS +10% and MARKIT +14% announce all share merger, $13bn enterprise value. BAKER HUGHES -80bps & HALLIBURTON +20bps fall short again in EU approval. MONSANTO -1.8% continues to look for alternatives post Syngenta; opportunities with BASF and/or Bayer suggested in the weekend press. APPLE (unch) event pretty dull as expected; iPhone SE and smaller iPad Pro the highlights as expected. VALEANT +7% bouncing as CEO steps down and Ackman appointed to board; +ve enough to see further bounce across Biotech, IBB +2%. Looking into tomorrow; FHFA House Price & Markit Man PMI; Earnings expected from NIKE (QCC) +3% and Red Hat after the close. Nothing afterhours.

OUTPERFORMERS: Biotech +2%, Airlines +1.6%, Pharma +1%, Industrials +60bps, Telco +60bps

UNDERPERFORMERS: Homebuilders -1.1%, Inv Banks -80bps, Real Estate -70bps, Explorers -70bps, Retail -50bps

COMMODS: Gasoline +2.2%, Sugar +2.1%, WTI +1.2%, Silver +40bps, Copper +10bps, Ally -60bps, Gold -80bps, Nat Gas -4.6%

ECO: Exisiting Home Sales 5.08m, est 5.31m; MoM -7.1%, est -3.0%

ACTIVE TODAY

TMT
FORTINENT +3.5% init conviction buy @ Goldman
T-MOBILE US +1.2% positive comments @ Citi
MOTOROLA SOLUTIONS +20bps ValueAct trims stake
INTEL -1.1% d/g @ Bernstein
SYMANTEC +1.2% u/g @ Piper Jaffray
TWITTER +10bps cautious comments in Barron’s
HP ENTERPRISE +2.3% u/g @ Macquarie
LIONS GATE -1.7% d/g @ Stifel
ARISTA NETWORKS +4% positive comments @ Wells Fargo
APPLE unch positive comments @ Stifel @ BofA/Merrill
SOFUN +3% u/g @ Morgan Stanley

HEALTHCARE
ILLUMINA +3.3% positive comments in Barron’s
VALEANT +7.6% CEO out, Ackman to board, cautious comments in Barron’s, d/g @ Mizuho & @ Barclays
TEVA +4.6% positive comments @ BTIG

CONSUMER
STARWOOD +4.6% now views revised bid from MARRIOT as superior to Ang Bang
NORDSTROM -1.4% d/g @ Piper Jaffray
TYSON FOODS -80bps cautious comments in Barron’s
FINISH LINE +1.8% positive comments @ Brean
NIKE +2.8% added, LULULEMON -3.7% removed from focus list @ JPMorgan
FOOT LOCKER +2.1% added to s/t buy list @ Deutsche
TOLL BROTHERS -60bps positive comments @ UBS

CAPITAL GOODS
TESLA +2.3% u/g @ Argus
DOVER +30bps d/g @ SunTrust
BORG WARNER -40bps positive comments @ UBS

ENERGY
ENI -50bps valuation u/g @ RBC
RANGE RESOURCES -3% d/g @ Macquarie
PIONEER NATURAL -50bps d/g @ KLR Group
PRECISION DRILLING -1.4% off action list @ TD Securities

FINANCIALS/REAL ESTATE
SL GREEN REALTY +1.4% u/g @ Evercore ISI
CITI +10bps co. should consider breakup per note @ Keefe Bruyette
SIMON PROPERTY -1% p/t raised @ Stifel

MATERIALS
SHERWIN-WILLIAMS -5.3% to acq VALSPAR +23%
US STEEL -4% d/g @ Jefferies
MONSANTO -1.8% said to be exploring other deals moving on from Syngenta

TRANSPORTATION
KNIGHT TRANSPORTATION +30bps d/g @ Cowen
FEDEX +50bps postive comments in Barron’s

SERVICES
HIS +10% acq MARKIT +14% for $5.5bln

Have a good evening.