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 -1.20% (2041.9), D -0.98% (17542.0), N -1.51% (4475.3), CL1 -0.85% (37.43), Copper -3.31% (207.25), Gold +1.53% (1241.25) 10YrYld -0.06 (1.6906), DXY +0.12% (94.55), Vix +13.98% (16.04).

The S&P closed down 25bps from the European close inclusive of a 40bps rally over the last hour off the lows. Volume a bit less than 5% crossing 7bln shares right on the 20 day avg. Dollars traded about flat at $260bln moving slighty above avg of $255bln. More than 80% of volume to the downside today.

Back down we go, yesterday’s rally short lived, Banks lead the declines, 3rd successive move >1%. DXY small up, Yen extending gains, hitting 107.67 intraday. EWJ -50bps, EWZ -90bps, EEM -2%. Rates lower, 10yr 1.69%; Banks continue to roll, BKX -3% back below 50dma. JPM -2.5% earnings Wednesday. And no surprise to see $ move back into Gold. Oil nearly 4% off overnight highs, no new news and Copper sees biggest intraday decline this year. BAKER HUGHES -2%, FREEPORT -8%. On Earnings; CONAGRA +1.5% (Q3 Beat, separation on track), BED BATH & BEYOND +30bps (surprise comp Beat, 9% SI), APOLLO EDUCATION -1.5% (weak quarter and pulls guidance; reit Sell PEARSON -2.1%), CARMAX -7.2% (solid numbers but growth concerns, price action very telling of sentiment in the space). Not a huge amount of positives out there today, shorts outperform, lots of charts rolling. Big squeeze in WYNN RESORTS +12%, 18% SI, upgrades coming through post Investor Day. Biotech ETF -1.8% see biggest down day in 2 weeks, some of the bid/highly shorted names continue to rally; RELYPSA +67%, SERES +6%. Retails put up disappointing March comps, XRT breaks 200dma; CONNS -9%, BUCKLE -12%. GAP puts up weak number after hours; Retail Sales Wednesday. SOX -1.6% running on fumes, chart also rolling over and even Samsung plays couldn’t rally; INTEL -1.7% kicks off earnings 19th. APPLE -2.2%back below 200dma. TESLA -3% Model 3 pre orders hit 325k, cap raise calls growing, sees dgrade this afternoon. VERIZON -2.8% said to be front runner for YAHOO -1.3% (Bberg); VZ also seeing 2 downgrades. Looking into tomorrow; no major earnings or eco; ALCOA kick of earnings season Monday night, Banks the main focus.

OUTPERFORMERS: Gold Miners +3.1%, Refiners +20bps, Utils unch, Homebuilders -30bps, Defense -40bps

UNDERPERFORMERS: Inv Banks -3.6%, Retail -2.8%, Regionals Banks -2.7%, Oil Services -2.4%, Biotech -1.8%

COMMODS: Nat Gas +5.5%, Gold +1.5%, Silver +1%, Corn +1%, Ally -80bps, WTI -1.2%, Nickel -2.3%, Copper -3.3%

ECO: Initial Jobless 267k, est 270k

AFTER-HRS NEWS/MOVES:

ANGIODYNAMICS -5.3% q3 beat but cuts fy view
RETAILMENOT +1.9% $22mm acq, sees q1 revs better than est
DULUTH HLDGS +8.9% q4 eps/revs beat
PRICESMART -1.2% q2 miss
GAP STORES -7.3% March comps down more than est, excess inventory
RUBY TUESDAY -18% cuts view, CFO out

ACTIVE TODAY:

TMT
WESTERN DIGITAL -3.3% p/t lowered @ RBC
BROCADE +2.2% u/g @ Argus
EMC -1.5% d/g @ Raymond James
VERIZON -2.8% d/g @ Bernstein
AMAZON -1.8% / NETFLIX -40bps p/t’s cut @ JPMorgan
F5 NETWORKS -5.9% d/g @ OTR Global
YAHOO -1.3% reports of multiple interested bidders

HEALTHCARE
VALEANT +3.9% receives consent to modify credit facility
PFIZER -50bps d/g @ Morgan Stanley
RELYPSA +67.3% said to hire advisors to evaluate bids

CAPITAL GOODS
ACUITY BRANDS -2.6% d/g @ CLSA, p/t raised @ Canaccord

CONSUMER
CARMAX -7.2% q4 inline but margins coming in
CONAGRA +1.5% q3 beat
L BRANDS -2.3% March comps beat
KROGER -2.3% positive comments @ Wells Fargo
WYNN +11.7% u/g @ Telsey
RITE AID -50bps q4 eps beat, revs miss
COACH unch’d u/g @ William Blair
GOODYEAR TIRE -25bps u/g @ KeyBanc
CRACKER BARREL +5bps u/g @ Longbow
COSTCO -3% March sss miss
HARLEY DAVIDSON -4% d/g @ William Blair
BED BATH & BEYOND +30bps q4 best
SKECHERS USA -3.9% d/g @ OTR Global
HANESBRANDS +2.8% acq of Champion Europe overall business trending well
TESLA -3.1% cut to hold @ Standpoint

FINANCIALS
BB&T -2.1% d/g @ Raymond James
ITG -7% d/g @ JPMorgan

MATERIALS
HEXCEL +30bps added to s/t buy list @ Deutsche

SERVICES
NIELSEN -65bps p/t raised @ Citi

TRANSPORTATION
KNIGHT TRANSPORTATION -2.4% d/g @ Barclays

Next week’s Earnings and Eco highlights….

MON: Alcoa (pm)
TUE: CSX, Fastenal; Tiffany ID; NFIB Small Biz
WED: JP Morgan, SanDisk; Retails Sales, PPI, Beige Book
THU: AMD, Bank of America, Blackrock, Delta, Fairchild Semi, First Republic, Progressive, Taiwan Semi, Wells Fargo; GameStop ID; CPI
FRI: Charles Schwab, Citigroup, First Horizon, Infosys, Reynolds; Empire Man, Ind Production, Michigan Sent

Have a good evening.