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 +0.88% (2055.0), D +0.56% (17633.1), N +1.58% (4467.7), CL1 -2.56% (38.38), Copper -1.54% (221.15), Gold +1.70% (1242.47) 10YrYld -0.09 (1.8000), DXY -0.80% (95.18), Vix -9.12% (13.85).

Markets higher across the board, Yellen reaffirms lower for longer, ultimately nothing in today’s speech. S&P +1% from Euro close. Most Short +2.7%. Russell outperforming +2.4%. Overall volumes +35% DoD but still 10% below 20d ave. No surprise to see weaker USD and Rates post Yellen; EUR 1.1294, 10yr 1.79%. Gundlach says April is “inconceivable”. Banks rolling; BKX -80bps. Oil saw a little relief on the USD weakness but remains under pressure, growing supply concerns and Iran not participating in freeze; API 4:30pm. XLE +50bps. Gold reversed recent weakness; saw short covering in GDX +5.8%. Homebuilders trade well following LENNAR (Buy) +2.3% earnings beat, remains our top pick in the space, full thoughts on today’s note. MCCORMICK +2.3% breaks to new all time highs, guides FY to upper end. APPLE (Sell) +2.4% makes new closing high on the year as government drops legal case; we remain Sellers and highlight competition concerns for new SE iPhone; SKYWORKS (Sell) -60bps sees downgrade. LINKEDIN (Sell) +80bps also sees dgrade, slowing growth and high valuation; own FACEBOOK (Buy) +2.2% makes new closing high. YAHOO +3.1% sets April 11th prelim deadline for core biz bids. FOOTLOCKER (Buy) +1% replacing Cameron in the S&P 500. 3M (QCC) -1% held analyst day, reaffirms guidance and introduced new 5yr objective. Biotech reversed early weakness but MEDIVATION -6% coming under pressure as congress requests pricing hearing; M&A spec in this name last week. Electronic retailers CONNS -25% on weak earnings. SUNEDISON -55% SEC probe, bankruptcy looming. Looking into tomorrow; Earnings expected from Carnival and Micron; ADP Employment.

OUTPERFORMERS: Gold Miners +5.8%, Homebuilders +2.9%, Materials +2.5%, Biotech +1.8%, Tech Hardware +1.7%

UNDERPERFORMERS: Drillers -2.6%, Banks -80bps, Chems -70bps, Oil Services -50bps, Insurers -10bps

COMMODS: Nat Gas +2.3%, Gold +1.7%, Wheat +1%, Silver +1%, Ally +90bps, Copper -1.5%, Nickel -2.3%, WTI -2.7%

ECO: CaseShiller 182.56, est 182.74. Consumer Confidence 96.2, est 94.0.

Have a good evening.