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 -0.68% (2003.7), D -0.29% (17081.9), N -0.68% (4352.9), CL1 -1.02% (46.62), Copper -1.45% (238.05), Gold +0.37% (1168.01) 10YrYld -0.05 (2.0421), DXY -0.08% (94.76), Vix +8.66% (17.60).

The S&P closed down 75bps from the European close ending the day just off session lows. Volumes picking back up, +17% vs yesterday to over 6bln shares but still 1.5bln below the 20 day avg. Dollars traded up 20% to $230bln, $60bln below avg. More than 80% of volume printing to the downside.

Markets close on session lows, Eminis break 2000. , Most Short -2.2%. Fed’s Tarullo says rate hike unlikely this year. DXY/Rate stuck in tight range, 10yr 2.04; Banks. BRL bouncing off 50dma. IBOV -4%. Oil breaks $47, Copper rolling. XLE -1.1% / XME -40bps. On Earnings; J&J -60bps, FMC -3%, RYDER -9%. MOLSON COORS +10% tops S&P, new all times highs as SAB +9% / ABI +2.1% agree on price. TWITTER +1.1% struggled to hold early gains, cutting 8% of work force, had been speculated, not sure how much worse it get now. BORGWARNER -3% drifts below 50dma, remains preferred proxy for Euro Auto concerns; Riccy initiates Short CARMAX -75bps. Airlines giving back recent gains; JETBLUE -8% seeing some profit taking off all time highs post stats/dgrade. TRAN Index -2.2% chart remains in downtrend. Biotech for sale throughout the afternoon, possibly a little nerves ahead of Democratic debate this evening. VMWARE -4% fallen off a cliff post EMC -2.8% deal, seeing downgrades, CEO defending. SAP +5.6% steady from Euro close, solid numbers, our long term concerns remain; new closing high SALESFORCE +1%. Software AG mixed preannounced; -ve MICROSTRATEGY -3.3%. Looking into tomorrow; Earnings expected from ASML, BAC, DAL, NFLX, WFC; Nike Investor Day.

OUTPERFORMERS: Managed HC +1.5%, Gold Miners +60bps, Media unch, Telco -5bps, Software -20bps

UNDERPERFORMERS: Airlines -3.6%, Biotech -3.2%, Refiners -2.6%, Building Materials -2%, Pharma -1.9%

COMMODS: Cotton +3.5%, OJ +3.1, Wheat +2.5%, Gold unch, WTI -80bps, Copper -1.2%, Nat Gas -1.4%, Sugar -2.7%

ECO: NFIB Small Biz 96.1, est 95.5.

AFTER-HRS NEWS/MOVES:

JP MORGAN -90bps q3 $1.32 vs $1.38 est, revs $22.8bln vs 24.04 est
CSX +1.7% q3 52c vs 50c est
INTEL +1% q3 64c vs 59c est, revs $14.5bln vs 14.24 est
CEPHID -11.6% prelim q3 (13c) vs (5c) est, revs $126.5mm vs 127.88 est
SANDISK +12.6% said to be exploring sale per press
MICRON +3% up on Sandisk headlines

ACTIVE TODAY:

TMT
SAP +5.6% q3 EUR 0.98 vs 0.90 est, revs EUR 4.99bln vs 4.93 est, sees fy op profit EUR 5.6-5.9bln vs 6.27 est
3D SYSTEMS -2.9% discouraging survey data @ Piper Jaffray
LEVEL 3 +40bps u/g to conviction buy @ Goldman
HEWLETT-PACKARD -25bps HP Enterprise $3bln b/b
FITBIT +20bps positive comments on survey results @ Pacific Crest; Jawbone wins injunction in trade secret theft suit
INTEL -50bps positive comments @ Jefferies
TWITTER +1.1% cutting 8% of workforce
VIASAT -5.1% /g @ Wells Fargo
ETSY -5.8% lockup expiration
NETAPP +20bps talk of further Cisco partnership in wake of Dell/EMC deal

HEALTHCARE
JOHNSON & JOHNSON -55bps $10bln b/b, q3 $1.49 vs 1.46 est, revs $17.1bln vs 17.45 est
ELI LILLY +23bps defended @ BofA/Merrill
ST JUDE +1.7% up on competitor delay

CONSUMER
AB INBEV +2.1% reaches agreement to buy SAB Miller IN $106bln deal
MILLER COORS +9.9% up on advantageous position to buy forced divestitures
DEL FRISCO’S +3.8% q3 4c inline, revs $68.6mm vs 70.1 est, ebitda margin 18% vs 19.1% est
JETBLUE -7.9% Sept prelim prasm + ~1%, Aug -3%; d/g @ JPMorgan
AMERICAN AIRLINES -1% d/g @ Evercore ISI
UNDER ARMOUR -2% p/t raised @ Morgan Stanley; COO/CFO stepping down
WHIRLPOOL -2.3% #s lowered @ JPMorgan
KB HOME -1.4% / TOLL BROS -1.5% u/g @ Morgan Stanley
PULTE GROUP -3% d/g @ Morgan Stanley
PROCTOR & GAMBLE -30bps co discusses f/x challenges at annual mtg
KEURIG GREEN MTN -10bps renewed t/o talk

CAPITAL GOODS
FASTENAL -2.2% q3 47c inline, revs $995.3mm vs $1bln est
GENERAL ELECTRIC -80bps u/g @ William Blair

FINANCIALS/REAL ESTATE
NORTHERN TRUST -50bps u/g @ Raymond James
LEGG MASON -1% positive comments @ Citi
E-TRADE -1.1% init o/p @ CLSA

TRANSPORTATION
CANADIAN NATIONAL -2.5% d/g @ Canaccord
GENESEE & WYOMING -2.9% Sept carloads +56%, same-railroad -8.4%
RYDER -9.3% sees q3 $1.72 vs 1.74 est vs $1.82-1.87 prior view

ENERGY
WHITING PETROLEUM -4.4% d/g @ Morgan Stanley
MAGNUM HUNTER -9.8% d/g @ SunTrust
LAREDO PETROLEUM -2.8% d/g @ Iberia

MATERIALS
FMC -3.1% sees q3 38c vs 64c est, fy $2.35-2.45 vs 3.03 est
MOSAIC +1.1% u/g @ Bernstein
ARCH COAL -6.4% d/g @ JPMorgan
PEABODY -6.2% d/g @ JPMorgan
POTASH +30bps u/g @ Bernstein

SERVICES
XEROX -50bps after-tax charge of 22c/shr on gov’t healthcare biz, sees qtr inline w/ guide ex-charge

Have a good evening.