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 +1.05% (2066.7), D +0.64% (17716.1), N +1.63% (4543.8), CL1 +5.18% (37.76), Copper +0.23% (214.30), Gold -0.69% (1222.94) 10YrYld +0.03 (1.7532), DXY -0.14% (94.50), Vix -8.24% (14.15).

The S&P closed up 50bps from the European close to the day at session highs. Volume pulling a back a bit from yesterday’s increase, though, off 7% to 6.8bln shares, 400mm below avg. Dollars traded off 5% just slipping below avg of $255bln. 3:1 up volume over down volume.

Markets shrugged off early weakness as Oil rally led the usual proxies higher and Biotech puts up biggest rally of the year. S&P reversing yesterday’s declines; Most Short +2.3%. DXY -20bps makes new low for move, with Yen strength the notable cause, hitting 109.55 intraday. Rates seeing a little relief, 10yr 1.75%; Banks make new relative low for move. FOMC minutes – couple members wanted rise, global conditions continue to pose risks to US – nothing new, and very tough to call if/when we get further rise this year. Oil had fallen 17% since 18th March for multiple good reasons; API/DOE data proved to be the catalyst for the bounce today, testing $38. BAKER HUGHES +9% / HALLIBURTON +6% as DOJ confirm plans to block deal, co’s plan to contest. On Earnings/updates; ACUITY BRANDS +13% ( new all time highs, record Q2), GLOBAL PAYMENTS +9% (Q3 Beat), CONSTELLATION BRANDS +6% (new all time highs, solid guide), MONSANTO +1% (Revs light, moving away from M&A), WYNN RESORTS -1.5% (mixed guide ahead of Investor Day), CREE -15% (big cut to guidance). Biotech ETF (IBB) now 18% off the lows; INCYTE +12%, VERTEX +9%, BIOMARIN +8% notable large cap movers. No change expected to SHIRE +4%/ BAXALTA +6% deal despite the ALLERGAN +3%/ PFIZER +5% break; PFE break up chatter picking up. Auto space mixed; TESLA +4% continues to squeeze, Barclay’s suggesting $3bn cap raise may be justified; HARLEY DAVIDSON -7% hit on –ve broker note, FIAT CHRYSLER (Sell) -1.4% cutting 1300 jobs in Michigan; focus on CARMAX +4% earnings tomorrow.

OUTPERFORMERS: Biotech +6%, Pharma +3.1%, Explorers +3%, Solar +2.7%, Homebuilders +2.1%

UNDERPERFORMERS: Telco -1%, Refiners -60bps, Utils -10bps, Transports unch, Gold Miners +10bps

COMMODS: WTI +4.9%, Nickel +1.3%, Copper +20bps, Silver -30bps, Ally -40bps, Gold -40bps, Wheat -2.3%, Nat Gas -2.8%

ECO: Nothing of interest

AFTER-HRS

BED BATH & BEYOND +7% q4 eps, revs beat
VALEANT +1.3% per press said to get majority for loan amendment

ACTIVE TODAY:

TMT
NVIDIA +15Bbps positive post-analyst day comments @ Oppenheimer, d/g @ Stifel
GLOBAL PAYMENTS +8.8% q3 beats, ups low end of fy range
CISCO +1.5% u/g @ JPMorgan
YAHOO +70bps pitch book said to show ’16 revs est down 15%

CONSUMER
PROCTOR & GAMBLE +80bps cautious comments @ Barclays
HIBBETT SPORTS -4.6% d/g @ BofA/Merrill
CONSTELLATION BRANDS +5.9% beat & rasise, explores ipo of some of Canadian wine unit
MONDELEZ +2.1% off focus list @ Credit Suisse
WYNN -1.5% prelim q1 results better but disappointing guidance
CREE -14.6% q3 profit warning
PULTEGROUP +2.4% u/g @ Barclays
STARBUCKS +1.3% positive comments @ UBS
HARLEY DAVIDSON -7% neg comments @ ITG

FINANCIALS
CAPITAL ONE -40bps / WELLS FARGO +1.2% / US BANCORP +10bps d/g @ Wells Fargo
GREENHILL +30bps d/g @ Goldman

HEALTHCARE
PFIZER +5% / ALLERGAN +3.5% officially terminates merger pact
BAXALTA +5.6% commit to deal reit by SHIRE +4.4%
VALEANT +18.8% rallies as Pershing Sq hosts call

CAPITAL GOODS
MSC INDUSTRIAL DIRECT -1.6% q2 eps beat revs miss, revs outlook mid-point below est
FIRST SOLAR +55bps negative post-analyst day comments @ Deutsche
EATON -1.4% inversion related concerns per note @ Deutsche

ENERGY
BAKER HUGHES +8.8% / HALIBURTON +5.9% gov’t officially sues to black

UTILITIES
DUKE ENERGY -70bps d/g @ Argus

MATERIALS
RPM INT’L +1.7% q3 misses but reaffirms