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 +0.66% (2094.4), D +0.60% (18004.2), N +0.58% (4569.3), CL1 -0.97% (39.97), Copper +0.53% (217.35), Gold -0.13% (1232.49) 10YrYld +0.02 (1.7676), DXY -0.23% (94.48), Vix -1.98% (13.35).

The S&P closed up 30bps from the European close gradually working its way to session highs on the close. Volumes light though off about 10% from Friday to 6bln shares, close to 1bln below avg. Dollars traded off a similar % to $216bln, $30bln below est. About 3/4 of the volume to the upside.

Markets were expected to be down today but didn’t last very long and all 3 major indexes hit new ytd highs. Most Short +70bps. DXY -20bps remains in downtrend; Rates a little higher; Banks +70bps. BX proxies suffering from a little T&A post impeachment vote, EWZ -3%. Oil nearly 6% off overnight lows, Doha was as pointless as most expected and shorts didn’t wait too long to start covering; BAKER HUGHES +4%, XLE +1.7%. Materials also higher, with XME +1.5% making new ytd high. On Earnings; HASBRO +6% (Star Wars sales taking stock to new all time highs), PEPSICO -10bps (reiterates FY), MORGAN STANLEY -20bps (Beat low expectations but rallied 6% into print), WW GRAINGER -1.3% (mixed numbers and short term concerns remain), LENNOX -2.5% (solid Q1 and guide, had good run). In M&A; CVENT +65% to be acquired by Vista Partners. MEDIVATION +4% seeing interest from multiple co’s. YP and VERIZON +70bps close to YAHOO (unch) offer (separately). ENDO +8% tops S&P as DBK pushing, IBB ETF +1.6% testing 100dma. DISNEY +3% back above 100dma for first time this year, good opening weekend for Jungle Book and upgrade. Autos get a boost from +ve Barrons report, seeing 25% upside; FORD, GM. L’Oreal pink +4% from Euro close, Q1 sales beat; new closing high ESTEE LAUDER (QCC) 80bps. APPLE (Sell) -2% remains under pressure from production concerns and taking suppliers lower; ARM (Buy) -3% seeing downgrade. Looking into tomorrow; Earnings expected from Goldman, Intel, J&J, Philip Morris, United Health and Yahoo; Housing Starts.

OUTPERFORMERS: Explorers +2.4%, Solar +1.7%, Biotech +1.6%, Autos +1.5%, Materials +1.5%

UNDERPERFORMERS: Tech Hardware -1.1%, Chems -20bps, Gold Miners -10bps, Homebuilders -10bps, SOX +10bps

COMMODS: Cotton +3.7%, Wheat +3.1%, Nickel +2.5%, Nat Gas +2.2%, Copper +60bps, Gold unch, Silver -60bps, WTI -1.4%

ECO: NAHB Housing Market Index 58, est 59

AFTER-HRS NEWS/MOVES:

NETFLIX -11.8% q1 eps beats, revs inline, domestic adds beat, int’l adds well light
IBM +1.3% q1 eps, revs beat
ILLUMINA -19.9% prelim q1 revs light
RAMBUS -6% q1 eps small beat, revs small miss, q2 revs seen below est

ACTIVE TODAY:

TMT
NETFLIX -2.8% cautious comments in WSJ, AMAZON +1.5% offering standalone prime video
NETAPP -1.4% d/g @ Sterne Agee
ARM HLDGS -2.7% d/g @ Jefferies
VERIZON +75bps said to be moving forward w YAHOO, unch’d, bid per press
TWITTER -1.5% positive comments on MAUs @ SunTrust
APPLE -2.2% positive comments on ‘platform’ leverage @ UBS, u/g @ Erste Group
ALPHABET +1% positive comments ahead of #s @ Bernstein
AUTOHOME -2.1% CEO-led consortium submits prelim “go private” proposal
DISNEY +2.9% u/g @ Pivotal Research

HEALTHCARE
ST JUDE MEDICAL -5bps d/g @ BTIG
ALLERGAN +1.3% d/g @ Piper
ENDO +8.2% positive valuation comments @ Deutsche
KITE PHARMA -4.4% mixed trial results

CONSUMER
UNDER ARMOUR +1.5% cautious comments @ Piper
COCA-COLA +25bps positive comments in WSJ
PEPSICO -5bps q1 eps beat, revs inline
HASBRO +5.8% q1 eps/revs beat
TEXAS ROADHOUSE -1.1% d/g @ Raymond James
TOYOTA -30bps suspending production post-earthquakes in Japan
CHURCH & DWIGHT -70bps d/g @ BofA/Merrill
COTY -70bps d/g @ BofA/Merrill
ESTEE LAUDER +90bps p/t increased @ KeyBanc
HYATT -1.7% d/g @ SunTrust
DARDEN +90bps defended @ Wells Fargo
MEAD JOHNSON unch’d, p/t increased @ Citi
DR HORTON +90bps, KB HOMES -50bps , MERITAGE -45bps all d/g’d @ FBN Securities

CAPITAL GOODS
CUMMINS +1.2% u/g @ BofA/Merrill
JOY GLOBAL -55bps u/g @ BofA/Merrill
GRAINGER -1.3% q1 eps bests, revs inline, narrows range of fy guide
LENNOX INT’L -2.6% q1 eps beats, revs miss, fy midpoint above est

FINANCIALS
MORGAN STANLEY -15bps q1 eps beat, revs miss
M&T BANK +90bps q1 eps miss
CITI +40bps d/g @ Keffe Bruyette
VISA +1.7% preferred of MASTERCARD +1% @ Jefferies
MCGRAW-HILL FINANCIAL +1.2% to sell JD Power for $1.1bln

REAL ESTATE
IRON MOUNTAIN +3.5% u/g @ Stifel
FARMLAND PARTNERS -90bps d/g @ BMO

ENERGY
ENSCO +1.8% u/g from sell @ Deutsche
PETROCHINA +2.2% u/g @ BofA/Merrill
CONCHO +2.6% / LAREDO -10bps both d/g’d @ Cowen
TALL GRASS ENERGY +3.2% u/g @ Deutsche
TOTAL -25bps d/g @ Canaccord
ENERGY TRANSFER +10.1% as WILLIAMS -5% on S-4 filiing show tax hang up

TRANSPORTATION
UNION PACIFIC -40bps d/g @ UBS
JB HUNT +2.1% q1 eps small beat, revs inline

MATERIALS
ARCELORMITTAL +2% d/g @ JPMorgan
BHP BILLITON +3.4% u/g @ BofA/Merrill
BARRICK +1.2% u/g / NEWMONT +30bps d/g @ Clarkson Platou
RIO TINTO +2.5% d/g to sell @ Citi

UTILITIES
PG&E +50bps u/g @ Deutsche
EXCELON +20bps d/g @ Deutsche
CONSOLDIATED EDISON -10bps d/g @ Deutsche

Have a good evening