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 +1.49% (2023.9), D +1.28% (17141.8), N +1.64% (4418.2), CL1 +0.71% (46.97), Copper +0.66% (243.15), Gold -0.07% (1183.25) 10YrYld +0.04 (2.0157), DXY +0.52% (94.42), Vix -10.98% (16.05).

The S&P closed up 1% from the European close, ending the day at session highs at the highest close in 8 weeks. Volume about flat with yesterday though at 7bln shares, 500mm below est. Dollars traded up 3% to $278bln, still about 5% below avg. About 80% of volume to the upside.

Markets higher across the board, Bank earnings driving but further concerns elsewhere. DXY/Rates seeing a little relief despite growing calls that rates are going to be lower for longer. Oil lower following Inventory builds; Gold struggling to hold 200dma. China proxies trade well, SOE reform driving (see Asian Daily); ASHR +4.7%, FXI +3.3%. On Earnings; KEYCORP +5%, CITIGROUP +4%, XILINX +2%, PHILIP MORRIS +2%, HCA -5%, NETFLIX -8%, MANITOWOC -8%, SEAGATE -13%, GARMIN -13%. Banks outperforming today, solid execution from CITI +4% and GOLDMAN +3% shrug off rare Miss; several regional’s reporting tomorrow. Semis mixed today, no new merger talk; we take several positives for ARM +2.5% from XILINX and TMSC -1.8% earnings. Full thoughts on today’s daily. NETLFIX -8% subs losing momentum and market not liking it; given stock is +106% this year questions around free conversion to paid subs, content strategy and slowing US subscriber growth we continue to avoid/sell at these levels. VALEANT -5% testing recent lows as US prosecutors seeking information on drug-pricing decisions. RADIUS +21% continues to bounce on unconfirmed t/o chatter, SHIRE +3% mentioned; BAXALTA +8% tops S&P, drug approval. Nice squeeze in IBB +4.4% throughout the session. No bounce in WALMART -1.2%, several downgrades. IPO’s not had a good day; FIRST DATA -1.5% priced terribly and broke price within first hour of trade; ALBERTSON failed to price and looks like co have postponed indefinitely; FERRARI set to come next week. Luxury space may see further pressure in Europe following Boss warning after the close. Looking into tomorrow; Earnings expected from Comerica, General Electric, Honeywell, Kansas City Southern, M&T Bank, Parker Hannifin, Progressive, SunTrust, WW Grainger; In Eco, Industrial Prod, Michigan Sentiment.

OUTPERFORMERS: Biotech +4.4%, Banks +3%, Pharma +2.8%, Refiners +2.6%, Solar +2.5%

UNDERPERFORMERS: Managed HC -20bps, Gold Miners unch, Semis +60bps, Oil Services +80bps, Autos +90bps

COMMODS: OJ +1.5%, Gold +60bps, Copper +50bps, Silver +30bps, WTI unch, Wheat -1.1%, Ally -1.2%, Nat Gas -2.1%

ECO: Initial Jobless 255k, est 270k. Empire Man -11.3, est -8.00. CPI MoM -0.2%, est -0.2%. Philly Fed -4.5%, est -2.0.

AFTER-HRS NEWS/MOVES:

MATTEL -2.8% q3 71c vs 80c est, revs $1.79bln vs 1.89 est
SCHLUMBERGER -40bps q3 78c vs 77c est, revs $8.47bln vs 8.54 est
ADVANCED MICRO +2.5% q3 (17c) vs (12c) est, revs $1.06bln vs $995.9mm est
CARRIZO OIL & GAS -2.7% 5.3mm share offering
SPIRIT AIRLINES -45bps sees capacity growth at low end of range
YUM! BRANDS +3% sees China comp sales low single digits negative, appt’s Corvex Mgmt head to board
PTC THERAPEUTICS -20% Phase 3 trial data disappoints
WYNN -2.9% q3 adj ebitda $279.9mm vs 306.8 est, revs $996.3mm vs $1.03bln est

ACTIVE TODAY:

TMT
NETFLIX -8.3% q3 7c inline, revs $1.74bln vs 1.75 est, domestic streaming adds miss, sees q4 2c vs 4c est/revs $1.67bln vs 1.86 est
GARMIN -12.7% sees q3 51c vs 64c est, revs $680mm vs 705 est, fy revs een $2.8bln vs 2.9 est
XILINX +2% q2 48c vs 46c est, revs $527.6mm vs 527.5 est
IMPRIVATA -30.7% q3 seen (23c) – (22c) vs (20c) est, revs seen $28.9-29.2mm vs 31.5 est
TAIWAN SEMI -1.8% q3 NT$2.91 vs 2.86 est, revs NT$212.51bln vs 211.86 est, sees q4 revs NT$201-204bln vs 207.98 est
FAIRCHILD SEMI +3.1% q3 20c inline, sales $342mm vs 346.8 est, sees q4 sales $320-335mm vs 335.5 est
58.COM +1.1% init sell @ CLSA
MERCADOLIBRE +3.1% p/t cut @ Piper
CISCO +1.2% init o/w @ Barclays
FACEBOOK +2% u/g @ Argus
TRIPADVISOR -0.4% defended @ Oppenheimer

HEALTHCARE
UNITED HEALTH -1.6% q3 $1.65 vs 1.64 est, revs $41.49bln vs 40.40 est
HCA -5% sees q3 $1.17 vs 1.22 est, sees fy $5.20-5.25 vs 5.29 est
VALEANT -4.8% new gov’t subpoenas on pricing
RADIUS +20.8% reports SHIRE +2.8% in pursuit

CONSUMER
UNILEVER +4.3% q3 revs EUR 13.4bln vs 13.17 est
JARDEN -2.4% 10mm share offering
PHILIP MORRIS +1.9% q3 $1.24 vs 1.12 est, revs $6.93bln vs 6.78 est
NIKE +2.3% after investor today p/t raised @ Piper
AB INBEV -20bps planning $55bln bond offering
DUNKIN’ BRANDS +1.5% d/g @ Argus
MEAD JOHNSON +4.4% u/g @ BMO
MGM +1.9% positive comments @ Wells Fargo
FORD +1.4% u/g @ Buckingham
MONDELEZ +50bps positive comments @ Bernstein
MCDONALDS +80bps said to be close to decisions on real estate options

CAPITAL GOODS
LINDSAY -3.6% q4 (28c)
EATON -1.2% d/g @ Baird
MANITOWOC -7.9% sees q3 revs $863mm vs 942 est

FINANCIALS/REAL ESTATE
KEY CORP +4.7% q3 26c vs 27c est
BB&T +3.1% q3 70c vs 66c est, revs $2.49bln inline
BLACKSTONE +1.5% q3 eni (35c) vs (22c) est
US BANCORP +1.3% q3 81c inline, revs $5.15bln vs 5.12 est
GOLDMAN SACHS +3% q3 $2.90 vs 2.87 est, revs $6.86bln vs 7.11 est, add’l 60mm share b/b
CITI +4.4% q3 $1.35 vs 1.31 est, revs $18.7bln
FIRST REPUBLIC +50bps q3 82c vs 81c est, revs $468.6mm vs 490.4 est

MATERIALS
PPG INDUSTRIES +2% q3 $1.61 vs 1.60 est, revs $3.87bln vs 4.03 est

Have a good evening.