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 +0.16% (2095.2), D +0.28% (18041.6), N -0.82% (4416.6), CL1 +2.93% (45.33), Copper -0.67% (223.15), Gold +0.23% (1246.28) 10YrYld -0.07 (1.8543), DXY -0.14% (94.44), Vix -1.36% (13.77).

The S&P closed up 35bps from the European close though gave back 20bps from the highs of the day over the last half hr. With the Fed come and gone now, volumes up more than 12% today to 7.3bln shares moving past average of 6.9bln. Dollars traded also up 12% up $269bln, $20bln above avg. Approx 3/4 of volume to the upside.

Another mixed session today; Oil rally vs Apple blow up. No major change from the Fed, Dec probably the most likely for next raise, highlighted improving labor market and removed reference to global events posing risks to outlook. DXY -10bps / 10yr 1.86% both fell post Fed; would have expected more profit taking in the Banks +15bps today. Commods mixed; Oil data leading to 3% swing but held on to close >200dma for first time since Oct 14. Another big earnings day; BOSTON SCI +11% (multi year highs, strong qtr and guide), FORTINET +8% (strong billings, life coming back to IT Security), GARMIN +4% (Shorts caught on decent qtr), EBAY +3% (Solid qtr, guide mixed), BOEING +3% (mixed qtr and street remains below guide), MONDELEZ +3% (Solid qtr, reaffirmed FY), BAKER HUGHES +2.5% (weak qtr and commentary, focus remains on HAL), COMCAST +40bps (solid qtr and looking at DREAMWORKS +19%, further threat to NETFLIX -1.5%), HESS -3% (production inline, capex 20% below), CHIPOTLE -6% (comps -30%), APPLE -6% (Sell, terrible quarter and guide, China struggling), GOODYEAR -7% (Revs 6% Miss, FX headwinds remain), ROBERT HALF -12% (weaker margins and guides to lower end), TWITTER -16% (another terrible print, multiple degrades. Away from earnings eGaming names underperforming on new sector piece from BMO; ACTIVISION (Buy) -2.4%, EA -3%. Starboard in pact with Yahoo and Marvell. EXXON +1% raised div 2c, earnings Friday. 2 IPOs away this morning; RED ROCK RESORTS -3.5%, YINTECH +20bps. Another big earnings day tomorrow, highlights below.

OUTPERFORMERS: Drillers +4.7%, Materials +3.5%, Oil Services +3.4%,Telco +1.9%, Defense +1.6%

UNDERPERFORMERS: Tech Hardware -3.5%, Biotech -1.4%, Autos -80bps, Pharma -40bps, Real Estate -30bps

COMMODS: WTI +2.7%, Silver +70bps, Gold +30bps, Nat Gas -60bps, Copper -80bps, Sugar -1.4%, Coffee -3.1%

ECO: Pending Homes Sales MoM +1.4%, est +0.5%; YoY +2.9%, est +0.8%. FOMC unch
AFTER-HRS NEWS/MOVES:

FACEBOOK +6.8% q1 beats, mobile strong
WHITING PETROLEUM -3.5% q1 loss wider than est
SANDISK +60bps q1 beats
VERTEX -90bps q1 miss
FIRST SOLAR -5.2% q1 sales miss
CAVIUM -6.9% q1 inline
PAYPAL +2.5% q1 beat, shows share gains
ANTERO RESOURCES -3% q1 eps just misses
CHEESECAKE FACTORY +3.3% q1 eps beat though comps touch light
CR BARD +2.3% q1 beat, fy raise
UNIVERSAL HEALTH +5.2% eps beat, revs inline
DOLBY LABS +4.9% q2 beat & raise
XILINX unch’d: q4 small eps beat, revs inline
PILGRIMS PRIDE +4.6% q4 eps beat
CALLAWAY GOLF q1 eps beats, revs light, raises fy view
OCWEN FINANCIAL -4.9% q1 loss
TEXAS INSTRUMENTS +20bps q1 eps/revs/margins small beat
MARRIOTT INT’L +2.7% q1 eps beats
O’REILLY AUTOMOTIVE -2.2% q1 beat but comps weaker

ACTIVE TODAY:

TMT
APPLE -6.3% cuts q2 eps/revs miss though iphones beat, q3 revs guided lower
TWITTER -16.3% q1 MAU miss, guiding Q2 Revs down ~10%
EBAY +3.2% Guides FY Revs to upper end
AT&T +1.7% q1 eps/Revs ahead, FY on track
DREAMWORKS +18.7% said to shop co to Comcast per press
COMCAST +40bps q1 beat
STMICROELECTRIONICS +11.5% q1 loss but sees q2 revs/margins beter
GARMIN +3.8% q1 beat
BARRACUDA NETWORKS +16.9% q4 beats
AKAMAI +4.2% q1 beats, margins weaker
CIRRUS LOGIC +12.4% q4 beat but q1 revs seen below est
NCR CORP -6% q1 eps beat, revs miss, boosts fy view
FORTINENT +7.8% q1 beat
MARKETO -60bps q1 loss inline, narrows fy view
INTERSIL -2.6% q1 inline, q2 guide midpoint below est
ULTIMATE SOFTWARE +2% q1 beats
MARVEL +4.2% in pact with Starboard
YAHOO -45bps also in pact with Starboard

CONSUMER
WOLVERINE WORLD WIDE -2.3% d/g @ Sterne Agee
TRI POINTE HOMES +1.4% q1 beat, boots fy margin view
HILTON +3% q1 beat
MICHAEL KORS +3.2% u/g @ Piper Jaffray
CHIPOTLE MEXICAN GRILL -6.4% q1 revs miss, comps miss
BOYD GAMING -4.9% q1 eps beats, revs miss
BUFFALO WILD WINGS -10.8% Weak qtr and guide
PANERA BREAD +40bps q1 beat, raises fy
CREE +5.7% q3 beat, q4 guide midpoint above est
GROUP 1 AUTOMOTIVE +7% q1 eps beat, revs inline
SIX FLAGS +4.6% q1 revs beat
CROX -10.8% d/g @ Stifel
EL POLLO LOCO -8.1% d/g @ SunTrust
MONDELEZ +3.3% q1 beat
DR PEPPER SNAPPLE +3% q1 beat, sees fy at high end of range

FINANCIALS
CAPITAL ONE -2.2% q1 miss
LENDING CLUB +8% said to prep bond offering per press
CARLYLE GROUP +90bps profit falls but beats est
BARCLAYS +60bps revs beat est
BLACKHAWK NETWORK -8.9% q1 beat, boosts fy view
H&R BLOCK -13.6% sees fy revs down
RENAISSANCE RE -4.2% q1 eps miss
AFLAC +1.9% q1 beats high end of est
CINCINNATI FINANCIAL +2.8% q1 beat
NASDAQ -40bps q1 eps beat/revs miss
STATE STREET +2.3% q1 eps beat, revs inline
RADIAN +4.2% q1 beat, upbeat on industry trends
BGC PARTNERS +10bps q1 inline
VALLEY NAT’L BANK -5.5% q1 penny light
FRANKLIN RESOURCES -1.3% q2 miss as aum declines

REIT
PUBLIC STORAGE -3.4% q1 miss
TANGER FACTORY OUTLETS +20bps q1 inline

HEALTHCARE
BOSTON SCIENTIFIC +11.2% q1 beat & raise
STRYKER +50bps u/g @ Sterne Agee
EDWARDS LIFESCIENCES +10bps q1 beat
GLAXOSMITHKLINE +1.8% q1 shows 1st profit growth in 3 years
VCA INC +5.5% q1 beat & raise

CAPITAL GOODS
AO SMITH -1.1% q1 revs miss
L-3 COMMUNICATIONS +4.9% q1 beat & fy raise
UNITED TECHNOLOGIES +1% q1 beats high end of est
NORTHROP GRUMMAN +1.7% q1 beat, sees fy higher than street
TEREX +35bps q1 loss inline, revs better
ACUITY BRANDS -70bps to be added to S&P 500
IROBOT +9.2% q1 beats but q2 revs below est
ROCKWELL AUTOMATION -20bps q2 beat but narrows fy view
LEAR -10bps q1 beat & raise
GENERAL DYNAMICS +3.5% q1 eps/revs beat
BOEING +2.9% q1 eps miss, reaffirms
AGCO +1.4% q1 beat

MATERIALS
LYONDELLBASSELL -55bps d/g @ Nomura
INT’L PAPER +1.9% q1 eps beat, revs miss
TIMKEN -1.9% q1 beat but only reaffirms fy
WR GRACE +1.8% q1 miss but fy midpoint better than est
CARLISLE +4.1% q1 beats high end of street
US STEEL +15bps q1 sales miss
AVERY DENNISON +2.4% q1 beat & fy raise
OWENS CORNING -6.1% q1 revs miss
GOODYEAR TIRE -7.4% q1 revs miss

ENERGY
NAT’L OILWELL VARCO +7.9% u/g @ Morgan Stanley
FMC TECHNOLOGIES +6.5% q1 miss but positive comments on subsea space
US SILICA +5.8% q1 loss less than est
HESS -3.1% q1 loss less than lest but sees q2 production falling
BAKER HUGHES +2.5% qtrly loss widens
FRANK’S INT’L -2.4% q1 revs miss

TRANSPORTATION
CH ROBINSON -5.2% q1 eps beats but revs miss

SERVICES
ROBERT HALF -12.3% q1 inline but margins fall
COVANTA -2.8% q1 loss wider than est though revs beat
TRANSUNION +8.5% q1 beat & raise
JONES LANG LASALLE +4.9% q1 beat
THU: Abbvie, Air Products, Amazon, Amgen, Ball, Baxalta, BioMarin, BorgWarner, Bristol Myers, Celgene, Colgate, ConocoPhilips, Dow Chem, Expedia, Ford, Gilead, Juniper, LinkedIn, Martin Marietta, MasterCard, Mead Johnson, Nu Skin, Raytheon, Skyworks, Synaptics, Time Warner Cable, UPS, Virgin America; NXP Semi AM; BOJ; GDP