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 +0.08% (2102.4), D +0.24% (18096.3), N +0.07% (4540.4), CL1 +3.77% (42.63), Copper +0.47% (224.20), Gold -0.42% (1245.09) 10YrYld +0.06 (1.8450), DXY +0.64% (94.57), Vix +0.83% (13.35).

The S&P closed down 15bps from the European close losing 40bps over the last hour from the high of the day. Volumes up small to 7.4bln shares vs 6.7bln avg. Dollars traded slightly down to $260bln, $20bln above avg. 60% of volume traded to the upside today.

Markets closed small up, drifting over the last hour, Banks lead again. Most Short +1%. Europe outperforming ahead of ECB tomorrow. DXY reversing yesterdays declines, JPY 109.75. Rates pushing higher, 10yr 1.85%; BKX +12% from April lows, 200dma next resistance. Commods largely ignoring $ bounce; Oil testing $43 (8% swing), Copper breaking above 200dma, Gold holding. Another big earnings dump; DISCOVER FINANCIAL +8% (Q1 ahead, reiterates guide), TEXTRON +5% (Q1 ahead, guide inline), YAHOO +4% (broadly inline, selling co top priority), LINEAR TECH +4% (QCC, solid qtr seeing improvement across multiple segments), EMC +3% (weak qtr but no warning), INTEL +1% (Sell, weak guide and cutting 12k jobs), ARM -3% (Buy, mixed numbers but no change to our thesis), ASML -3% (solid numbers but flagged weak order outlook on the call), COCA-COLA -5% (broadly inline, been strong into). Not a lot a huge going on outside the earnings. BOEING -1.6% seeing downgrade, follows cautious commentary from Alcoa last week, earnings 4/27. MGM GROWTH PROPERTIES +5% priced 50m shares at $19, top end of the range, opened at $22.75. AMERICAN RENAL (ARA) expected to price tonight. Another bumper earnings day tomorrow; CCI, GM, GOOGL, MSFT, SBUX, SLB, V; Philly Fed, FHFA Housing Index.

OUTPERFORMERS: Inv Banks +2.6%, Solar +1.9%, Regional Banks +1.3%, Oil Services +1%, Semis +1%

UNDERPERFORMERS: Materials -1.5%, Chems -1.6%, HHold Prod -1.8%, Gold Miners -1.8%, Utils -2.5%

COMMODS: WTI +3.8%, Wheat +3.6%, Corn +2.8%, Ally +2.5%, Silver +90bps, Copper +60bps, Nickel +10bps, Nat Gas -80bps

ECO: Existing Home Sales 5.33m, est 5.28m; MoM +5.1%, est +3.9%.

AFTER-HRS NEWS/MOVES:

UNITED CONTINENTAL -60bps q1 eps beats, revs inline, prasm falls
F5 NETWORKS +2.9% q2 eps beats, revs touch light, q3 seen better
STRYKER +25bps q1 beats, revs touch higher, q2 seen better
TRACTOR SUPPLY -3.4% q1 eps/revs beat
AMERICAN EXPRESS +3.6% q1 eps beat, revs inline
LAS VEGAS SANDS -5.6% q1 miss
CITIRIX +5% q1 beat, raises fy view
SERVICENOW +8.3% q1 beat, raise
QUALCOMM -15bps q2 beats, q3 seen below est
LAM RESEARCH unch’d: q3 eps beats, revs inline
MATTEL -6.2% q1 loss wider than est
UNITED RENTALS -7.3% q1 eps beats, reduces fy outlook
YUM! BRANDS +4.1% q1 eps beat, revs miss, China comps beat
WERNER ENTERPRISES -3.4% q1 miss
KINDER MORGAN -3.2% q1 revs miss, fy ebitda seen below prior view

ACTIVE TODAY:

TMT
INTEL +1.7% q1 eps beat, revs inline, forecast misses, to cut 11% of workforce, capex seen below est
YAHOO +4.2% q1 eps inline ex-tac revs beat
MANHATTAN ASSOCIATES +14.4% q1 eps/revs beat, raises fy view
VMWARE +13.7% q1 eps beat, revs inline, $1.2bln b/b
APPLE +20bps seen as fairly valued @ Deutsche, remains a top pick @ Piper, positive comments @ ITG
EMC +3.2% q1 eps/revs miss
LINEAR TECH +4% q3 small eps/revs beat
CHECKPOINT -3.2% q1 eps beat, revs inline
LEXMARK +9.4% agrees to be acq’d by Chinese-led consortium for $3.6bln
DISH +20bps q1 eps beat, revs inline, net adds fall more than est
ARM HOLDINGS -2.8% q1 best, fy revs seen inline
ASML -3.3% q1 inline, q2 eps guide slightly higher than est but margins seen lower
SAP -10bps confirms prev announced eps
GLOBAL PAYMENTS -80bps to be added to S&P 500
ANGIE’S LIST +4.9% q1 adj ebitda light, revs slightly below, reaffirms fy
ZILLOW +4.3% positive comments @ Canaccord
VIACOM +4.9% change in tone in DISH carriage negotiations

CONSUMER
COCA-COLA -4.8% q1 broadly inline, total case volume bit below est
MELCO CROWN +25bps d/g @ HSBC
HERSHEY -3.1% d/g @ BofA/Merrill
KROGER +2% positive comments @ Citi
MARRIOTT +10bps d/g @ Raymond James
TUPPERWARE -4.2% q1 eps beat, revs below est, q2 seen below prev view, raises fy
L BRANDS -1.5% cautious comments @ Citi
UNITED CONTINENTAL +1% settles proxy dispute w/ activists
TOLL BROS -1.3% d/g @ Zelman
MICHAEL KORS unch’d cautious comments @ OTR Global
STAPLES -1.3% / OFFICE DEPOT -6.1% continue to fall on deal doubts
BLOOMIN’ BRANDS +30bps d/g @ OTR Global

CAPITAL GOODS
TEXTRON +4.9% q1 eps/revs small beats, reaffirms
SPIRIT AEROSYSTEMS -75bps d/g @ BofA/Merrill
ABB +3.1% u/g @ JPMorgan
MANITOWOC +5.7% u/g @ Stifel
WATSCO +30bps q1 eps miss, revs beat
BOEING -1.6% d/g @ BofA/Merrill
ILLINOIS TOOLWORKS -1.3% q1 beats, boots fy view
GRACO -3.8% q1 eps/revs miss

HEALTHCARE
INTUITIVE SURGICAL +3.3% q1 eps inline, revs beat
REGENERON -3.4% d/g @ Wells Fargo
ST JUDE MEDICAL +4% q1 eps beat, revs inline, raises fy view
ABBOTT +30bps q1 eps/revs beat, raises fy est
OWENS & MINOR -9% lrg customer not renewing
ALERE -12.4% no commitment from Abbott

FINANCIALS
HUNTINGTON BANCSHARES +1.7% q1 eps inline, revs slight miss, nim below yr ago
BANKUNITED -15bps q1 eps penny light, revs miss, nim falls y/y
US BANCORP +2% q1 inline
DISCOVER +8.2% q1 eps/revs beat
NEW YORK COMMUNITY BANCORP -2.6%
VISA +50bps p/t raised @ SunTrust
INERACTIVE BROKERS +75bps q1 eps/revs beat
SEI INVESTMENTS +5.3% q1 eps, revs beat
COMERICA +1.7% d/g @ Stephens

REIT
SIMON PROPERTY -2.2% block trade placed
MGM GROWTH PROPERTIES +4.8% IPO debut

SERVICES
DEVRY -3.3% d/g @ BofA/Merrill
NIELSEN -2% q1 inline, boots div

ENERGY
C&J ENERGY -5.4% d/g @ KLR Group
SUNCOR -1.5% d/g @ Citi
NAT’L OILWELL VARCO -1.8% pushed as merger partner for BAKER HUGHES @ JPMorgan
PRECISION DRILLING -3.3% d/g @ Raymond James
HALLIBURTON +75bps named a top pick @ Wells Fargo

MATERIALS
SYNGENTA -80bps q1 revs inline though crops & seeds both light of est
TENARIS +65bps u/g from sell @ Citi

TRANSPORTATION
CANADIAN PACIFIC -60bps q1 eps beat, revs touch light

Have a good evening.