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 +0.31% (2100.8), D +0.27% (18053.6), N -0.62% (4541.0), CL1 +3.27% (41.08), Copper +2.81% (223.45), Gold +1.43% (1250.19) 10YrYld +0.01 (1.7851), DXY -0.43% (94.09), Vix -0.90% (13.23).
The S&P closed inline with the European close ending the day in the middle of the range, rallying through the afternoon after going negative mid-session. Volumes higher up 13% today to 7bln shares, moving above avg of 6.7bln. Dollars traded up a similar percentage to $256bln above avg of $239bln. Despite mixed averages close to 80% of volume printing to the upside.

Markets struggled to hold early rally, Nasdaq -60bps underperforming on weak earnings. Most Short +1.8%. DXY back below 94, rates small up. $ weakness giving further support to commod rally; Oil testing $41, Copper approaching 200dma. GDX +5%, OSX/XME +4%. Big focus on Earnings today; NORTHERN TRUST +5% (Solid Q1, aviate acquisition big focus for rest of the year), GOLDMAN +2.3% (mixed qtr, focus on cost cutting) UNITED HEALTH +2.1% (Solid qtr and guide), JOHNSON & JOHNSON +1.6% (QCC, fresh all time highs post beat), OMNICOM -60bps (broadly inline but had great run), PHILIP MORRIS -1.3% (QCC, mixed qtr, guide inline and FX headwinds moderating), IBM -5.6% (had a great run, which numbers do not reflect), NETFLIX -13% (Sell, terrible sub guide, growing competition, silly valuation), ILLUMINA -23% (cuts Q1 sales guide, flagging Europe). Not a huge amount going on outside the earnings; big squeeze in short/commod proxies and Biotech reversing engines following the ILMN blow up (4% of IBB). Homebuilders weaker on disappointing Housing Starts; Existing Home Sales tomorrow. APPLE -50bps remains for sale, Neil continues to flag headwinds; supply chain struggling; SKYWORKS -3.4%, BROADCOM -3.1%. SOX been decent laggard since early March; INTEL first big name to report tonight. TESLA back below $250, further reports of Apple Car project. EBAY weak on downgrade. Another big earnings day ahead; ARMH, FFIV, KO, LRCX, QCOM, NEM, URI, YUM. MGM GROWTH PROPERTIES IPO expected to price tonight and trade tomorrow.

OUTPERFORMERS: Drillers +6.7%, Gold Miners +4.9%, Materials +4.4%, Oil Services +4.4%, Banks +1.8%

UNDERPERFORMERS: Biotech -1.9%, SOX -1.25, Homebuilders -70bps, Cons Disc -60bps, Tech Hardware -30bps

COMMODS: Nat Gas +7.5%, Silver +4.4%, WTI +3%, Copper +2.7%, Gold +1.5%, Ally +1.4%, Nickel +1.4%, OJ -2.8%

ECO: Housing Starts 1089k, est 1166k; MoM -8.8%, est -1.1%. Building Permits 1086k, est 1200k; MoM -7.7%, est +2.0%

AFTER-HRS NEWS/MOVES:

INTEL -2.7% q1 eps beat, revs inline, forecast misses, to cut 11% of workforce, capex seen below est
INERACTIVE BROKERS +1.7% q1 eps/revs beat
INTUITIVE SURGICAL +2.6% q1 eps inline, revs beat
YAHOO +50bps q1 eps inline ex-tac revs beat
MANHATTAN ASSOCIATES +5.8% q1 eps/revs beat, raises fy view
VMWARE +4.7% q1 eps beat, revs inline

ACTIVE TODAY:

TMT
NETFLIX -13% q1 eps beats, revs inline, domestic adds beat, int’l adds well light
VIACOM -8.3% u/g @ OTR Global, fight with Dish escalates
APPLE -50bps caution into qtr @ UBS
PANDORA unch’d: positive comments @ Canaccord, d/g @ Raymond James
IBM -5.6% q1 beat but forecast misses
ASML +50bps / APPLIED MATERIALS -1.7% both d/g’d @ Susquehanna
AT&T +70bps p/t raised @ Nomura
EBAY -4% d/g @ Morgan Stanley
YAHOO -50bps said to be seeing fall off in search biz per press, Starboad pressing to replace entire board
RAMBUS -8.9% q1 small revs miss q2 revs seen below est
FACEBOOK +1.7% cautious comments @ ITG, reverses higher on positive digital ad spending conf call

HEALTHCARE
ILLUMINA -23.2% q1 warning
UNITEDHEALTH +2.1% q1 beat, to exit most ACA markets
JOHNSON & JOHNSON +1.6% q1 eps small beat, revs in line, shifts fy view higher

FINANCIALS
GOLDMAN SACHS +2.3% q1 eps beat, revs miss, aggressive cost cutting
NORTHERN TRUST +5.2% q1 revs beat, improving nim
TD AMERITRADE -2.1% q2 eps inline, revs miss
BLACKROCK +1.9% u/g @ Citi
REGIONS FINANCIAL +2.5% u/g @ FBR Capital

CONSUMER
TILE SHOP +12.3% q1 beat, boots forecast
BRINKER -6.7% q3 revs miss
COACH +1.1% positive comments @ UBS
GENERAL MOTORS +2.1% positive comments @ Sterne Agee
HARLEY-DAVIDSON -2.5% q1 eps/revs beat but no change to fy shipements view
PANERA BREAD +2.8% u/g’s @ KeyBanc & Jefferies
PHILIP MORRIS -1.3% q1 eps miss but raises fy view
WHIRLPOOL +8bps $1bln b/bamt
GENUINE PARTS -3% q1 inline on lower sales
NORDSTROM +35bps job cuts as more emphasis online
BUFFALO WILD WINGS -4.6% d/g @ OTR Global
TESLA -2.6% Consumer Reports critical of Model X quality

CAPITAL GOODS
LENNOX +1.4% u/g @ Seaport Global
IDEX CORP -15bps q1 sales beat, q2 eps seen lower to inline w/ est, fy seen better

TRANSPORTATION
KANSAS CITY SOUTHERN +5% q1 beats

REIT
AMERICAN TOWER -5bps d/g @ Evercore ISI

ENERGY
DEVON ENERGY +5.1% u/g @ Morgan Stanley
SOUTHWESTERN ENERGY +1.5% d/g to sell @ UBS

MATERIALS
FREEPORT MCMORAN +9% d/g to sell @ CLSA
MOSAIC +6.5% d/g @ Barclays
Have a good evening.