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 -0.18% (2087.8), D -0.15% (17977.2), N -0.00% (4474.1), CL1 -1.78% (42.95), Copper -0.68% (225.30), Gold +0.43% (1237.81) 10YrYld +0.02 (1.9074), DXY -0.33% (94.80), Vix +7.03% (14.15).

The S&P closed up 30bps from the European close, about all of that in the last hour to close at the day’s best levels though still down vs Friday’s close. Volumes light off 20% to 5.9bln shares, 1bln below avg. Dollars traded off closer to 25% to $212bln, $35bln below avg. Despite the afternoon move higher still more than 70% of volume printing to the downside.

Markets lower across the board but news flow light. Most Short -1.5%; 2nd lowest volume day this year. DXY-30bps reversing Friday’s gains and back into downward trend; JPY 111.19, EUR 1.1260. Rates holding gains, 10yr 1.90%; Banks seeing some profit taking following 14% rally through April. Oil continues to struggle at 200dma, the usual proxies lagging today; HALLIBURTON -2% delays earnings call to 5/3, BHI -3% deadline this Saturday. Gold reclaims 50dma, but copper rolling a little. On Earnings….. XEROX -13% qtr mixed but weak guide, cuts FY EPS ~30% and FCF ~35%. PERRIGO -18% cuts forecast and seeing multiple dgrades, CEO going to VALEANT -2.3%; MYLAN -7%, ENDO -12%. Overall quiet session with very little news around. APPLE (Sell) -60bps remains for sale ahead of tomorrow’s update, WSJ cautious; SKYWORKS (Sell) -1.1%. BALL CORP -1.5% selling $3.42bn of assets to push through Rexam merger. CHARTER +5%/TIME WARNER +3% gets DOJ Antitrust approval, widely expected. On upgrades; L BRANDS (QCC) +1.5%, JOY GLOBAL -1.7% and CATERPILLAR -2%. Looking into tomorrow; earnings highlights AAPL, ALLY, COH, EBAY, FCX, LMT, MAS,T, TMUS, TWTR, WHR, X; CARMAX hosts Analyst Day. In Eco, ; Durable Goods, CaseShiller, Services/Comp PMI, Consumer Confidence.

OUTPERFORMERS: Staples +70bps, Real Estate +60bps, Media +50bps, Telco +30bps, Utils +20bps

UNDERPERFORMERS: Retail -90bps, Transport -1.3%, Oil Services -2.3%, Materials -2.6%, Drillers -3%

COMMODS: Sugar +2.7%, Corn +2.2%, Gold +70bps, Silver +20bps, Ally +10bps, Copper -60bps, WTI -2.3%, Nat Gas -3.4%

ECO: New Homes Sales 511k, est 520k; MoM -1.5%, est +1.6%. Dallas Fed -13.9, est -10.0.

EXPRESS SCRIPTS -1% q1 revs just below est
KNOWLES +10.3% q1 beat, sees q2 inline to higher than est
DURECT CORP -9.9% proposes offering
PIONEER NATURAL +1.6% q1 loss less than est
SANMINA +6.5% q2 beat
THE CONTAINER STORE +22.5% q4 inline, revs beat, sees fy revs ahead of est


FACEBOOK -40bps revs seen inline to better @ Citi
APPLE -60bps cautious mention in WSJ
XEROX -13.3% q1 eps miss
DISCOVERY -3% d/g @ Topeka
SOHU.COM -3.4% q1 loss
CHANGYOU.COM +4.7% q1 inline
NEW YORK TIMES +50bps reportedly planning layoffs per press
EBAY -75bps positive comments ahead of #s @ Canaccord
TRIBUNE PUBLISHING +52.9% receives approach from GANNETT +6.5% for $815mm cash incl debt
IBM +20bos cautious comments at current levels @ UBS
WORKDAY -95bps d/g @ KeyBanc
TIMEWARNER CABLE +4.1% / CHARTER +4.6% anti-trust looks like a go for deal
CDW -4.6% d/g @ Raymond James
MOBILEYE -2.3% speculation on Tesla relationship though CFO says unch’d

ROPER +60bps q1 beat, reaffirms fy
JOY GLOBAL -1.7% / CATEPILLAR -2% both u/g’d from sell @ Goldman
HONEYWELL -80bps $5bln b/b

PULTE GROUP -1.3% d/g @ Raymond James
L BRANDS +1.5% u/g @ Stifel
VF CORP -1.1% d/g @ BB&T
KIMBERLY-CLARK -50bps d/g @ Deutsche
MARIOTT +65bps positive comments in Barron’s
TELSA -75bps p/t raised @ Goldman
COACH -20bps, MICHAEL KORS +50bps positive comments @ Jefferies
LAS VEGAS SANDS -2.2% / WYNN -5.3% negative Macau checks @ Sterne Agee CRT

KKR -3% posts q1 loss
BANK OF HAWAII +40bps q1 beats high end of est
BB&T -1% d/g @ FIG Partners

PUBLIC STORAGE +60bps d/g to sell @ Goldman

LABCORP +2.7% q1 beat, raises fy
JAZZ PHARMA -1.7% u/g @ SunTrust
NOVARTIS -80bps to sell its stake in Roche per press
PERRIGO -18.1% names new CEO, sees prelim q1 eps below est, cuts fy view, old CEO confirmed to VALEANT
VERTEX -1.3% p/t lowered @ Baird

MOHAWK +70bps postive comments in Barron’s
BALL CORP -1.5% seeling beverage-can assets for $3.42bln

CABOT OIL & GAS -4.2% pipline deal denied