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 +0.19% (2091.7), D +0.07% (17990.3), N -0.47% (4453.0), CL1 +4.29% (44.49), Copper -0.42% (224.65), Gold +0.44% (1243.54) 10YrYld +0.02 (1.9307), DXY -0.33% (94.52), Vix -0.85% (13.96).

The S&P closed up 10bps from the European close moving higher over the last half hour from small negative to match early afternoon levels at about the middle of the day’s range. Volumes traded up 7% to 6.4bbln shares still 500mm below avg. Dollars traded up 8% to $235bln, still $15bln below avg. Despite fairly muted moves overall, better than 3/4 of volume to the upside.

Mixed session today, moves driven by earnings and oil. Russell +1.1% outperforming, close to break out. DXY hit on disappointing Durable Good number, eco summary below. 10yr 1.93%, moved higher for 7 consecutive session ahead of the FOMC tomorrow, nothing much expected; adding support to Banks; BKX +1% closing above 200dma for first time this year. Oil back above $44 but continues to find resistance at 200dma ($44.29), API 4:30pm the next catalyst, DOE in the morning. On Earnings; PIONEER NAT +8% (raised production guidance), NXP SEMI +4% (Beat & Raise, Autos lead, triggered early chase in SOX), PENTAIR +4% (Sees FY at upper end), LOCKHEED +3% (Buy, solid qtr, defense spending only going one way), 3M -1.3% (QCC, healthcare and safety leading), HERSHEY -2% (FY guide below), MASCO -2% (solid qtr, at all time highs into print), P&G -2.3% (organic growth light), WHIRLPOOL -3.6% (disappointing qtr, FX continues to hurt), T-MOBILE -4.5% (Buy, raised Net Add guide, continues to disrupt “dumb and dumber”), NABORS -10% (sees Oil market recovery late this year, early next). Elsewhere…. MICRON +9% tops S&P following Hynix capex cut, +ve DRAM, huge underweight. JD.COM -9% following concerns on recent bond sale/ credit rating. SAREPTA -26% and over 70% this year, FDA panel votes against muscular dystrophy treatment. Another big earnings day tomorrow; full details below, FOMC 2pm.

OUTPERFORMERS: Explorers +3.7%, Gold Miners +2.4%, Materials +2%, Solar +1.6%, Retail +1.6%

UNDERPERFORMERS: HHold Prod -1.6%, Biotech -1.6%, Pharma -80bps, Software -70bps, Tech Hardware -40bps

COMMODS: WTI +3.2%, Gasoline +3.1%, Wheat +1.9%, Silver +50bps, Gold +30bps, Copper -50bps, Ally -70bps, Nat Gas -1.3%

ECO: Durable Goods +0.8%, est +1.9%. CaseShiller 182.79, est 182.83. Services PMI 52.1, est 52.0. Comp PMI 51.7, prev 51.3. Consumer Conf 94.2, est 95.8. Richmond Fed 14, est 12.

AFTER-HRS NEWS/MOVES:

APPLE -4.7% cuts q2 eps/revs miss though iphones beat, q3 revs guided lower
AT&T +1% Q1 EPS/Revs ahead, FY on track
BUFFALO WILD WINGS -10% Weak qtr and guide
EBAY +5% Guides FY Revs to upper end
TWITTER -9% Q1 MAU 310m, est 308m. Guiding Q2 Revs down ~10%
AKAMAI -1.4% q1 beats, margins weaker
CAPITAL ONE -2.6% q1 miss
BOYD GAMING -4.6% q1 eps beats, revs miss
BARRACUDA NETWORKS q4 beats
FORTINET +7.9% q1 beat
PANERA BREAD +2.1% q1 beat, raises fy
IROBOT -7.9% q1 beats but q2 revs below est
CHIPOTLE MEXICAN GRILL -3.7% q1 revs miss, comps miss
CIRRUS LOGIC -7.7% q4 beat but q1 revs seen below est

ACTIVE TODAY:

TMT
T-MOBILE US -4.5% q1 beats, net adds strong, raises fy ebitda view
NXP SEMI +4% q1 beat
BROADCOM +1.1% added to US1 List @ BofA/Merrill
KNOWLES CORP +14.9% q1 beat, sees q2 inline to better
SANMINA +9.1% q2 beats, sees q3 better than est
PALO ALTO +20bps u/g @ Wunderlich
3D SYSTEMS -1..9% d/g @ Needham
AMC NETWORKS +20bps u/g , DISCOVERY +1% d/g @ Macquarie
1-800-FLOWERS.COM +1.4% q3 loss inline, revs miss
LOGMEIN +2.6% positive comments ahead of #s @ Pacific Crest
INTUIT +1.5% raises consumer tax rev growth est
JD.COM -8.6% lowest inv grade rating on debt offering

CONSUMER
OFFICE DEPOT -4.7% q1 miss
FIAT CHRYSLER -1.7% q1 eps beat, revs miss, debt rises
HERSHEY -1.9% q1 eps beat, revs miss, raises fy view
P&G -2.3% q3 eps beat, cost cuts trump weaker sales
BLOOMIN’ BRANDS +8.5% q1 miss
COACH +4.2% q3 beat, cutting staff
REYNOLDS AMERICAN -20bps q1 inline, reaffirms fy
ASBURY AUTOTIVE +8.4% q1 eps beat, revs miss
DEL FRISCO’S +2.3% q1 beat, sees fy inline
WHIRLPOOL -3.6% q1 miss, reaffirms fy
ETHAN ALLEN +11% q3 beats high end of estimates
THE CONTAINER STORE +18.4% q4 comps beat
JETBLUE -20bps q1 beat, sees q2 capacity higher
MACY’S +50bps cautious comments @ Cleveland Research
WYNDAM WORLDWIDE -7.5% q1 eps beat but revs miss
PENSKE AUTOMOTIVE +11.2% q1 eps/revs beat

CAPITAL GOODS
PENTAIR +3.9% q1 eps beat, revs inline, sees q2 inline
INGERSOLL-RAND +2.1% q1 eps beat, revs inline, boots fy eps view
BE AEROSPACE +25bps q1 beat, raises fy outlook
BARNES -10.9% q1 inline, revs miss
PARKER-HANNIFIN +85bps q3 eps beat, revs inline, boots fy view
WABTEC +4.6% q1 eps beat, revs miss, reaffirms
LOCKHEED MARTIN +2.6% q1 eps small miss, revs miss, boosts fy on cost cutting
CATEPILLAR +1.1% u/g @ Argus
MUELLER INDUSTRIES +3% q1 eps up y/y but revs down
FLIR SYSTEMS -7.7% q1 eps miss, reaffirms

INDUSTRIAL
SENSATA +4% q1 beat, reaffirms

REIT
SIMON PROPERTY +15bps q1 beat, sees fy below est
UDR -1% q1 inline, q2 midpoint seen below est

FINANICALS
WADELL & REED -7.5% q1 miss
US BANCORP +75bps d/g @ Deutsche
ZIONS BANCORP +60bps q1 just misses, nim rises, recovers from intial drop on energy loss concerns
ARTISAN PARTNERS -4.2% q1 revs below lowest est
EVEREST RE -3.9% q1 miss
T. ROWE PRICE +70bps q1 eps beat
ALLY FINANCIAL -5bps q1 eps miss but nim up
JANUS CAPITAL -1.5% q1 penny light, revs light

HEALTHCARE
WATERS -3.1% q1 beat, guidance doesn’t impess
SAREPTA -26.3% neg FDA decision
BAXTER +80bps q1 beats, sees q2 better
ELI LILLY -2.1% q1 miss
EXPRESS SCRIPTS +75bps q1 eps inline, raises fy view
LABCORP +1.3% postive comments @ Canaccord
EXELIXIS +40bps drug approval

MATERIALS
CORNING -8.4% q1 eps inline, core sales below est
MASCO -2.1% q1 eps beats, revs inline but key segment weaker
NEWMONT +2.8% u/g @ RBC
3M -1.3% q1 small eps/revs beat, just reaffirms fy
ALLEGHENY TECHNOLOGIES +5bps q1 loss wider than est
BARRICK GOLD +2.3% q1 beat, further cuts to fy costs
FREEPORT MCMORAN +1.2% q1 loss less than est but cuts metals sales, updates asset sales
DUPONT +2.4% q1 beats, raises fy eps view
AK STEEL +4% q1 loss less than est

ENERGY
OASIS PETROLEUM +3.7% / WHITING PETROLEUM +3.3% / BILL BARRETT +2.2% all d/g’d @ Cantor
DRIL-QUIP -2.7% q1 miss, q2 view midpoint below est
BP +5.4% q1 surprise profit
GULFMARK OFFSHORE -1.9% q1 loss greater than est
PIONEER NATURAL +7.7% boots fy output tgt
NABORS -9.8% q1 loss less than est but revs miss, sees further rig count reductions
COMPASS MATERIALS +3.5% q1 eps beat
EXXON MOBIL +35bps loses AAA credit rating

SERVICES
THOMSON REUTERS +1.9% q1 beats
HEIDERICK & STUGGLES -14% q1 miss
CORPORATE EXECUTIVE BOARD -4.5% q1 eps beat but sales dissapoint
MCGRAW HILL FINANCIAL +3.5% q1 beat

TRANSPORTATION
RYDER +6.4% q1 eps, revs beat

WED: Baker Hughes, Boeing, Cavium, Comcast, Dr Pepper, Facebook, First Solar, General Dynamics, Goodyear, Hilton, Infinera, L-3 Comm, Lear, Marriot, Mondelez, Northrup Gruman, Owens Corning, PayPal, Rockwell Auto, SanDisk, Santander Consumer, State Street, Texas Ins, Utd Tech, Vertex, Xilinx; Pending Homes Sales, FOMC
Have a good evening.