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 +0.03% (2033.7), D +0.08% (17230.5), N +0.53% (4462.1), CL1 -2.45% (46.10), Copper -1.71% (236.25), Gold -0.57% (1170.56) 10YrYld -0.01 (2.0245), DXY +0.43% (94.95), Vix -0.73% (14.94).

Markets mixed today, few nervy moves under the hood. S&P unch from the Euro close. Overall volumes -11% from Friday and 20% below 20d ave. DXY +40bps testing 95, rates flat. Commods lower; Oil testing $46, Copper/Gold continue to roll. XLE -2% / XME 3.4%. China data small relief but proxies lower; ASHR -1.7%, FXI -1%. EEM -1.1%. On Earnings; GENUINE PARTS +1.7%, MORGAN STANLEY -4.8%, HASBRO -7.2%, VALEANT -8%. Mixed session in Tech; SANDISK +3% new high for move on continued t/o speculation, earnings Wednesday; MICRON +3.6% holds 100dma. NETFLIX +2.7% bouncing as Citron cover short; avoid. MICROSEMI -5.4% bids $1 higher than SKYWORKS -2.2% for PMC-SIERRA +14%, $2.4bn in cash and stock; unlikely SWKS will chase. DIEBOLD +6.7% finally completes purchase on Wincor Nixdorf for $1.8bn. NIKE +2.1% making new all time highs, receives another upgrade post earnings. WEIGHT WATCHERS +105% short base getting killed as Oprah takes 10% stake and seat on the board; NUTRISYSTEM -8.2%. MORGAN STANLEY -5% Q3 EPS/Revs disappoint, led by FICC Revs 36% Miss and worst since financial crisis, cautious commentary. VALEANT -8% raised guidance but market not convinced, stock testing recent lows. Biotech ETF (IBB) +50bps see near 4% intraday swing; M&A target RADIUS -8.5%. In response to WYNN -6.4% comments last week Macau has “no plan to make any changes lightly” and demands “clear understanding and full compliance” from the industry. Looking into tomorrow; Earnings expected from CREE, FITB, HOG, ILMN, LMT, OMC, TRV, UTX, VZ, YHOO; Housing Starts and Building Permits.

OUTPERFORMERS: Real Estate +1.3%, Airlines +90bps, Retail +80bps, Homebuilders +70bps, Biotech +50bps

UNDERPERFORMERS: Gold Miners -4%, Materials -3.4%, Refiners -3.3%, Drillers -2.6%, Solar -2%

COMMODS: Cattle +1.3%, Nat gas +45bps, Gold -1%, Ally -1.5%, Copper -1.5%, Silver -1.9%, WTI -2.8%, Gasoline -5.6%

ECO: NAHB Housing Market Index 64, est 62.

AFTER HOURS

FLEXTRONICS +7% Q3 EPS/Revs Beat, guides Q4 to upper end
IBM -4% Q3 EPS 3c Beat, Revs Miss, Hardware dragging. Sees FY EPS $14.75-15.75, prev $15.75-16.60

ACTIVE TODAY:

CONSUMERS
ABERCROMBIE & FITCH +2.6% upgraded at Wunderlich Securities
BUFFALO WILD WINGS +1.5% upgraded at Maxim Group
DARDEN RESTAURANTS +90bps upgraded at Maxim Group
DUNKIN BRANKS -1.5% removed from Credit Suisse’s global focus list
GENUINE PARTS +1.7% q3 earnings beat , revs miss,
HASBROS -7.1% Q3 earnings mixed, Girls toys weak
MCDONALDS -35bps added to Credit Suisse ‘US Focus List’
NIKE +2.1% upgraded at BB&T Capital
UNITED CONTINENTAL +1.4% board near decision on future after CEO stricken
URBAN OUTFITTERS -3.8% downgraded at Wunderlich Securities
WEIGHT WATCHERS +105% Oprah takes 10% stake
WYNN RESORTS -6.4% Macau says casinos need to heed its rules

ENERGY
SEADRILL -7.4% remains committed to highest ethical standards
SOLARCITY -6.5% initiated sell at Axiom Capital
STATOIL -3.4% Interior Department denies requests to retain drilling rights in Arctic

FINANCIALS
DEUT BANK ADR +2.4% Co said to have mistakenly paid a client $6bn (FT)
DIGITAL REALTY TRUST +60bps reinstated at Barclays
MORGAN STANLEY -4.8% Q3 EPS/Revs Miss, FICC weak
OCWEN FINANCIAL +3.6% amended credit agreement
XL GROUP +1.4% $100m loss following China explosion

HEALTHCARE
ALLERGAN -1.7% completes acquisition of Aque Sys
CELGENE +1.3% +ve trial results
JOHNSON & JOHNSON +30bps removed from short-term buy list at Deutsche Bank
PFIZER +30bps +ve leukaemia trial results
VALEANT PHARMACEUTICALS -7.7% 3q earnings and revs beat, raises fy earnings to $11.67-11.87 vs. $11.50-11.8 previous

INDUSTRIAL
BORGWARNER -2% downgraded at Morgan Stanley
JOY GLOBAL -1.2% downgraded at BB&T Capital
LENNOX INTERNATIONAL +5.9% 3q revs beat, sees fy rev growth 5%-7% 2%-4% with fx vs. 4%-7% 1%-4% with fx previously.
QUANTA SERVICES +3% downgraded at Johnson Rice
ROPER TECHNOLOGIES +50bps FTC grants antitrust clearance for purchase of Aderant
WABCO HOLDINGS -50bps initiated at Citi
XPO LOGISTICS -3.3% extends tender offer to acquire con-way

MATERIALS
COMPASS MINERALS -3.2% downgraded at Monness Crespi
OWENS-ILLINOIS -30bps reinstated at Deutsche Bank
RELIANCE STEEL -2.8% receives five year $300m contract with Lockheed Martin

TMT
APPLE +60bps replaces AMAZON +40bps as Gene Munster’s top large cap
ARISTA -2.4% challenges two CISCO patents rejected by agency
CABELVISION -10bps upgraded at Morgan Stanley
DIEBOLD +6.7% to acquire Wincor Nixdorf
GARMIN -20bps upgraded at JP Morgan
ORACLE -1.3% downgraded at Pacific Crest
NETFLIX +2.7% Citron covers short position
PMC-SIERRA +14.6% Microsemi offers $2.4bn cash/stock deal; SKYWORKS unlikely to counter
PURE STORAGE +90bps initiated at UBS
SANDISK +2.9% ongoing t/o speculation
SEAGATE TECHNOLOGY -2.1% downgraded at Susquehanna
UBIQUITI NETWORKS -6.1% downgraded at JMP
WESTERN DIGITAL +1.2% China’s Ministry of Commerce to revise restrictions on HGST deal

UTILITIES
AES CORP -40bps downgraded at Argus Research
CENTERPOINT -1.2% downgraded at Goldman (sector note)

Have a good evening.