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 -1.01% (2045.2), D -0.75% (17603.3), N -0.91% (4470.8), CL1 +0.67% (35.94), Copper -0.09% (213.85), Gold +1.24% (1230.62) 10YrYld -0.04 (1.7183), DXY +0.10% (94.61), Vix +8.99% (15.39).

The S&P closed down 25bps from the European close sliding over the last hour of the session from afternoon highs to the day’s lows just before the bell. Volume up close to 15% to 7.2bln shares back inline with the 20day avg. Dollars traded up 15% as well to $262bln above avg of of $255bln. Better than 2:1 down volume over up volume.

Markets go out on session lows, volume picking up, Banks lead the declines. First 1% move in 15 sessions for S&P; Most Short -1.3%. DXY +10bps seeing a little support; Yen moving to fresh 18m highs following weak macro, Kuroda gave another “whatever it takes” speech. Tough session in Europe with Autos and Miners -4%; EUR 1.1386. US rates remain under pressure, 10yr -1.72% quickly approaching Feb lows again; 2/10 sub 100. Banks -2%, cautious commentary keeps coming ahead of earnings. (JPM 4/13). Commods mixed; no surprise to see Gold rally, Oil back at $36 (API 4:30pm). NEWMONT +4%. More Energy paper; PARSLEY -3.5%, SPECTRA -1.6%. Utils weak as DOMINION -2% raising $750m. On Earnings; DARDEN -3.8% (raised FY EPS/comp guide), WALGREENS -3.4% (Pharmacy comps drag). Changes to inversion rules big talking point today; ALLERGAN -14.8% / PFIZER +2.1% deal under threat, PFE said to be ready to walk (rtrs); SHIRE -2.8% says BAXALTA -7.4% deal not an inversion. BAKER HUGHES -5.1% / HALIBURTON +1.2% reports suggest HAL asset sales not enough, DOJ preparing to block. TESLA +3.4% opened weak following deliveries miss but Shorts tested yet again as stocks breaks above yesterday’s high. FORD -20bps confirms plans to build $1.6bn plant in Mexico; Trump will never let it happen! FIRST SOLAR -7.2% held Analyst Day, refused to give 2017 guidance as “a lot of moving pieces”; SUNEDISON +23% market awaits bankruptcy announcement. NVIDIA (Buy) -10bps Investor Day ongoing.

OUTPERFORMERS: Gold Miners +3%, Materials +60bps, Drillers +20bps, Defense +10bps, Homebuilders -5bps

UNDERPERFORMERS: Regional Banks -2.2%, Inv Banks -2.1%, Utils -1.9%, Insurers -1.6%, Tech Hardware -1.3%

COMMODS: Nickel +1.4%, Silver +1%, Gold +90bps, WTI +80bps, Corn +70bps, Copper +10bps, Ally -1%, Nat Gas -2.3%

ECO: Services PMI 51.3, est 51.2. ISM Non Man 54.5, est 54.2. JOLTS Job openings 5445, est 5490

AFTER-HRS NEWS/MOVES:

CREE (halted) q3 prelim eps below est/prev view

ACTIVE TODAY:

TMT
CISCO -2% d/g @ BofA/Merrill
TWITTER -25bps wins NFL Thurs Night streaming rights
DISNEY -1.7% COO departing
MICROCHIP +55bps lower Atmel view, delays buyback
MARVEL +13.1% mgmt shakeup
NVIDIA -15bps holds investment day

FINANCIALS
FIFTH THIRD -1.9% d/g @ BMO
LPL FINANCIAL -6.9% d/g to sell @ Goldman
CAPITAL ONE -1.9% d/g @ Oppenheimer

CONSUMER
TESLA +3.4% q1 deliveries disappoint but says on track for fy
DARDEN RESTAURANTS -3.8% boosts fy eps/comps/sales view, sees “choppy” conditions remaining
WALGREENS BOOTS ALLIANCE -3.4% q2 eps beats, revs light
INT’L SPEEDWAY -2.8% q1 eps beats, revs miss
LUMBER LIQUIDATORS +10.8% wins lawsuit ruling

CAPITAL GOODS
SPIRIT AEROSYSTEMS +50bps named “best of” @ Bernstein
GREENBRIER +4.6% q2 eps/revs miss
FIRST SOLAR -7.2% delays 2017 guidance

HEALTHCARE
ALLERGAN -14.8% / PFIZER +2.1% inversion rules make deal suddenly unlikely
WATERS -1.4% / BRUKER -3% d/g @ BofA/Merrill
VALEANT +10% no new restatements after review, said to improve proposal to relax loan pact, co. cutting jobs
INTERCEPT +13.3% u/g @ Wells Fargo
BAXALTA -7.4% down on inversion concerns

MATERIALS
LYONDELLBASELL -1.5% d/g @ Atlantic

ENERGY
NEXTERA ENERGY -2% d/g @ Macquarie
BAKER HUGHES -5.1% / HALIBURTON +1.2% US Justice Dept to file to block deal

UTILITIES
DOMINION -2.1% block traded placed overnight