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% (2071.2), D -0.13% (17623.1), N +0.15% (4630.8), CL1 -1.82% (43.79), Copper +0.15% (235.35), Gold -0.08% (1163.64) 10YrYld -0.03 (2.0547), DXY -0.29% (96.85), Vix +5.88% (15.31).

The S&P closed inline with levels at the European close. Light volume as we officially enter Fed Week, off 22% from Friday at 6bln shares, 15% below avg. Dollars traded off more than 25% to $245bln, $30bln below estimates. Down volume close to 2:1 over up volume despite nothing dramatic in the major averages.

Relatively quiet session ahead of a busy week; Earnings/Macro/Fed/DoJ. Most Short -1.3. DXY back below 97; EUR 1.1048, JPY 121.02. Oil breaks $44 but nobody seems to care; another new low in Nat Gas -10%. XME -4% / XLE -2.3%. New Home Sales Miss; ITB -60bps. China proxies giving back Friday’s gains following muted response in local market; ASHR -2.6%, FXI -2%. ALIBABA +1% reports tomorrow. On Earnings; LENDING TREE +23%, LAB CORP +5%, ROPER TECH +3.5%, XEROX -4%. APPLE -3.2% in focus ahead of tomorrow’s earnings; supply chain under pressure following Dialog Semi warning; SKYWORKS -6%, ATMEL -11%, CIRRUS LOGIC -13%. Last week’s winner’s push on; AMAZON +1.5%, ALPHABET +1.6%, MICROSOFT +1.9% & FACEBOOK +1.4%. STM -5% remains structural Short, Italian/French govts would rather see Div cut than jobs. New all time highs VISA +1.4%; renewed expectations Visa Europe deal will come in the next week, earnings 11/2. Biotech back to top end of recent range; GILEAD +80bps testing 100dma, reports tomorrow. VALEANT -5% has another lively session over 20% swing; co defending recent allegations on conference call. In M&A; DUKE ENERGY +2% to acquire PIEDMONT NAT GAS +37% for $4.9bn in Cash. ICE Buying Interactive Data for $3.65bn in Cash. Bridgestone Buying PEP BOYS +23% for $835m in cash. CTRIP.COM +23% and QUNAR +12% agree to merge, creating China’s biggest online travel service.

OUTPERFORMERS: Retail +1.3%, Software +1.1%, Managed HC +80bps, Pharma +60bps, Biotech +40bps

UNDERPERFORMERS: Materials -4.2%, Gold Miners -2.9%, Oil Services -2.6%, Tech Hardware -2.5%, SOX -2%

COMMODS: Wheat +4%, Sugar +2%, Copper +20bps, Silver +20bps, Gold +10bps, Ally -1.2%, WTI -1.4%, Nat Gas -10%

ECO: New Home Sales 468k, est 549k; MoM -11.5%, est -0.6%. Dallas Fed Man -12.7, est -6.5.

AFTER-HRS NEWS/MOVES:

AMKOR -4.4% q3 12c vs 3c est, revs $734mm vs 725.6 est, sees q4 (2c) – 5c vs 7c est, revs seen $660-710mm vs 748.9mm est
BROADCOM +60bps q3 77c vs 73c est, revs $2.19bln vs 2.14 est
EDWARDS LIFESCIENCE +6.7% q3 $1.07 vs 98c est, revs $615.5mm vs 599.2 est, sees fy $4.43-4.53 vs 4.38 est
PMC-SIERRA +1.6% q3 13c vs 11c est, revs $133.6mm vs 130.8 est
RENT-A-CENTER -17.5% q3 47c vs 45c est, revs $791.6mm vs 803.6 est, sees q4 52-62c vs 68c est
SWIFT TRANSPORTATION -2.6% q3 31c vs 32c est, revs $1.07bln vs 1.08 est, sees q4 47-51c vs 51c est
KNOWLES -9.4% q3 16c vs 11c est, revs $294.6mm vs 296.3 est, sees q4 18-24c vs 23c est/revs $290-310mm vs 313.4 est
INTEGRATED DEVICE +1.4% q2 35c vs 31c est, revs $169.5mm vs 166.1 est
HI-CRUSH PARTNERS -16.9% q3 ebitda $13.4mm vs 15.4 est, revs $81.5mm vs 81.6 est, suspends distribution

ACTIVE TODAY:

TMT
NETAPP -4.4% d/g to sell @ UBS
APPLIED MATERIALS -70bps u/g @ Nomura
KLA-TENCOR -10bps d/g @ Nomura
JUNIPER NETWORKS -1.9% d/g @ Stifel
CTRIP.COM +22.1% in share exchange transaction with BAIDU for QUNAR stake
SOHU.COM +7% q3 $1.27 vs (58c) est, revs $522.1mm vs 496.9 est, sees q4 (40c-65c) vs (29c) est
CHANGYOU.COM +16.1% q3 $1.43, revs $188.9mm vs 180.0 est, sees q4 56-65c vs 64c est
PAYPAL +4.1% added to conviction buy list @ Goldman
PANDORA +5.2% u/g @ Macquarie
AMBARELLA -2% #s cut @ Morgan Stanley
AMC NETWORKS +1.2% u/g @ CLSA
DISH -20bps u/g @ MoffettNathanson
AUTODESK +2.3% positive comments on checks @ KeyBanc
STMICRO -4.7% gov’t shareholders favor div cut over job cuts
VMWARE +2.7% discussion in Barron’s may be sold if necessary for EMC/Dell deal

CONSUMER
MICHAEL KORS +60bps d/g @ Cowen
MACY’S +1.4% d/g @ Cowen
TYSON FOODS -4.9% d/g @ JPMorgan
VF CORP +3.4% u/g @ Piper & @ Telsey Advisory, defended @ Deutsche & @ BB&T
WHIRLPOOL +2.9% u/g @ Raymond James
COSTCO +65bps u/g @ UBS
POST HLDGS +4.7% u/g @ Stifel
HANESBRANDS -30bps defended @ UBS
PEP BOYS +23.4% to be acq’d by Bridgestone for $835mm
SPIRIT AIRLINES -4.8% d/g @ Wolfe Research

FINANCIALS/REAL ESTATE
VENTAS -10bps d/g @ Mizuho
AMERICAN EXPRESS -55bps d/g to sell @ UBS
VISA +1.4% Europe deal by earnings in a week @ Bernstein
CITI -1% article highlights risk control lapses
LENDING TREE +23.5% q3 adj ebita $11mm vs 9.4mm est, revs $69.8mm vs 60.7 est
UMPQUA -1.4% d/g @ Stephens
BANK OF HAWAII -80bps q3 79c vs 95c est, revs $141.1mm vs 145.7 est
GOLDMAN SACHS +80bps u/g @ Morgan Stanley
INTERCONTINENTAL EXCHANGE -60bps buying Interactive Data for $5.2bln

HEALTHCARE
VALEANT -5.3% holds conf call to address specific allegations, forming board committee to examine
LABCORP +5.2% q3 $2.07 inline, revs $2.27bln vs 2.25 est, sees fy $7.80-7.95 vs 7.89 est
GLAXCOSMITHKLINE -10bps positive comments in Barron’s
ATHENAHEALTH -8.3% d/g @ Leerink, defended @ Oppenheimer
HOLOGIC +2% u/g @ BTIG

CAPITAL GOODS
PARKER-HANNIFN -1.2% d/g @ BofA/Merrill
LEAR -70bps d/g @ Deutsche
ROPER TECHNOLOGIES +3.4% q3 $1.61 vs 1.57 est, revs $884mm vs 891.8 est, sees fy $6.69-6.75 vs 6.68 est
DEERE -3.4% #s lowered @ Barclays

MATERIALS
BEACON ROOFING +1.4% u/g @ JPMorgan
AK STEEL -12% d/g @ BofA/Merrill
SHERWIN-WILLIAMS +60bps positive feature in Barron’s
NEWMONT -3.8% d/g @ HSBC
CF INDUSTRIES -1.9% d/g @ Citi
CEMEX -3.4% positive comments @ Sterne Agee CRT
ST JOE CO. -4.7% d/g @ Raymond James

ENERGY
NORTHERN TIER +7.2% receives t/o proposal for ~$2.52bln vs WESTERN REFINING -1.5%
KINDER MORGAN -5.7% files to sell 32mm depository shares
EXXONMOBIL -2.1% press article highlights spending exceeding cashflow at majors
SOUTHWESTERN ENERGY -3.8% positive comments @ Barclays

UTILITIES
PEPCO -50bps q3 33c vs 44c est, revs $1.36bln vs 1.49 est
PIEDMONT NATURAL GAS +37% to be acq’d by DUKE ENERGY -2% for $4.9bln cash

SERVICES
XEROX -3% q3 24c vs 23c est, revs $4.45bln vs 4.54 est, see fy low-end of 95c – $1.01 vs 95c est
THOMSON REUTERS -1% d/g @ FBR Capital

have a good evening.