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 -0.26% (2065.9), D -0.24% (17581.4), N +0.18% (4639.2), CL1 -1.75% (43.20), Copper +0.36% (236.55), Gold +0.35% (1167.12) 10YrYld -0.02 (2.0317), DXY +0.06% (96.92), Vix +1.24% (15.47).

The S&P closed up 15bps from the European close, with a slow but steady 30bps rally off the lows over the last 2hrs of the day. A bit more volumes today with a solid slate of earnings up 15% to 7bln shares just below avg. Dollars traded up close to 10% to $275bln, about $8bln bln est. For the second day in a row down volume exceeded up volume (75% to downside today) more than relatively tame moves in the averages suggest.

Another mixed session, indexes relatively flat compared to some of the moves under the hood. Russell -1.2% underperforming again. Most Short -2%. DXY unch; 10yr back to low end. Overall Volumes +16% DoD, inline with 20d ave. Oil continues to bleed, testing $43. Talk of US looking to sell down reserves. API at 4:30pm, get ready for storage story to do another lap. XLE -1.2% / XME -2.6%. Earnings highlights; CORNING +5%, TEXTRON +4%, COACH +5%, ALIBABA +4%, BRISTOL MYERS +3%, PFIZER +2%, SEALED AIR -4%, FORD -5%, PACCAR -7%, T-MOBILE -6%, CUMMINS -9%, GRUBHUB -24%. Pharma earnings supporting further rotation into Healthcare; IBB +3% breaks upper end of recent range. Industrials continue to flag sluggish demand and weakening LATAM; XLI -1.1% not getting a free pass today. TRAN Index -2.6% downtrend remains; JETBLUE -3%, UNP -5%. Homebuilders continue to lag; MDC -6% the latest to highlight labor shortages. Pending Home Sales Thursday. In M&A; WSJ reporting WALGREENS +6% nearing RITE AID +43% deal, been on the radar for some time now; WBA report in the morning. STM said to have considered bid for FREESCALE SEMI; we remain Sellers STM -3%, earnings Thursday. Would continue to keep XILINX +3% on the radar. STARWOOD +9% reports of Chinese interest (DJ), earnings tomorrow. IBM -4% new 4.5yr lows on SEC probe. FERRARI -2.1% takes less than 1 week to break price; FCAU +40bps report in the morning. Outside of another earnings dump the big focus for tomorrow will be FOMC at 2pm; sadly we’re not expecting much.

OUTPERFORMERS: Biotech +3.2%, Hotels +2.8%, Pharma +2.2%, Chems +1.5%, Refiners +70bps

UNDERPERFORMERS: Railroads -4.6%, Solar -4.3%, Autos -2.6%, Homebuilders -2.4%, Airlines -2.2%

COMMODS: OJ +1.9%, Nat Gas +30bps, Copper +20bps, Gold unch, Silver -25bps, Corn -1.3%, Sugar -1.6%, WTI -1.9%

ECO: Durable Goods -1.2%, est -1.5%. S&P CaseShiller 182.47, est 182.26. Comp PMI 54.5, prev 55.0. Services PMI 54.4, est 55.5. Consumer Confidence 97.6, est 102.9.

AFTER-HRS:

APPLE +1.2% q4 $1.96 vs 1.88 est, revs $51.5bln vs 50.99 est, iPhones 48.05mm unites vs 48.13 est
GILEAD -70bps q3 $3.22 vs 2.87 est, revs $8.3bln vs 7.818 est
NCR CORP +4.7% q3 78c vs 70c est, revs $1.61bln vs 1.65 est, sees fy $2.70-2.80 vs 2.67 est
TWITTER -12% q3 adj ebtida $142.1mm vs 116.9 est, revs $569.2mm vs 559.8 est, sees q4 adj ebitda $155-175mm vs $199 est
NABORS -4.2% q3 (86c), revs $848mm vs $766.3 est
INFINERA +4.4% q3 22c vs 17c est, revs $233.2mm vs 229.1 est
BIG 5 SPORTING GOODS -8.6% q3 28c vs 30c est, revs $270.1mm vs 273.4 est, comps (0.4%) vs 1.1% est
BLACK BOX -6% q2 37c vs 40c est, revs $236.8mm vs 248.9 est, sees q3 35-40c vs 55c est
EXPRESS SCRIPTS -1.7% q3 $1.45 vs 1.44 est, revs $25.22bln vs 26.36 est
AKAMAI +40bpsq3 62c vs 58c est, revs $551mm vs 549.9 est

ACTIVE TODAY:

TMT
AMKOR +10.8% 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 -80bps q3 77c vs 73c est, revs $2.19bln vs 2.14 est
PMC-SIERRA -80bps q3 13c vs 11c est, revs $133.6mm vs 130.8 est
KNOWLES -18% 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 +7.4% q2 35c vs 31c est, revs $169.5mm vs 166.1 est
MARVELL -14.8% auditor resigns
ALIBABA +4.1% q2 CNY 3.63 vs 3.42 est, revs CNY 22.17bln vs 21.28 est
YANDEX +6.7% q3 adj ebitda RUB 6.02bln vs 5.51 est, revs RUB 15.44bln vs 15.02 est
CTRIP.COM -2.4% p/t lowered @ Piper Jaffray
IAC/INTERACTIVE -4.4% q3 $1.01 vs 78c est, revs $838.6mm vs 805.7 est
RENESOLA -5% CFO resigns
COMCAST -1% q3 $6.18bln vs 6.1 est, revs $18.67bln vs 18.02 est
T-MOBILE US -5.7% q3 adj ebitda $1.9bln vs 1.88 est
CIRRUS LOGIC +1.2% defended @ Stifel
VMWARE -1.8% u/g @ Drexel Hamilton
CISCO +40bps positive comments @ Cowen
FAIRCHILD SEMI +4.3% said to see possible bid from STMICRO
IBM -4% SEC probing revenue recognition

HEALTHCARE
EDWARDS LIFESCIENCE +2.8% q3 $1.07 vs 98c est, revs $615.5mm vs 599.2 est, sees fy $4.43-4.53 vs 4.38 est
PFIZER +2.4% q3 60c vs 51c est, revs $12.09bln vs 11.56 est, sees fy $2.16-2.20 vs 2.09 est
MERCK +1.1% q3 96c vs 92c est, revs $10.07bln inline, sees fy $3.55-3.60 vs 3.51 est
BAXTER +2% q3 41c vs 29c est, revs $2.49bln vs 2.46 est, sees q4 30-32c vs 30c est
NOVARTIS -2.3% q3 $1.27 vs 1.29 est, revs $12.27bln vs 12.64 est
BRISTOL MYERS +3.5% q3 39c vs 35c est, revs $4.07bln vs 3.86 est, sees fy $1.85-1.90 vs 1.84 est
VALEANT -50bps Pershing Sq holds investor call
WATERS +2.3% q3 $1.42 vs 1.40 est, revs $500.6mm vs 493.2 est
HCA -40bps q3 adj ebitda $1.82bln inline w preannouncement, $3bln b/b
UNITED THERAPEUTICS +8.8% q3 $3.55 vs 3.35 est, revs $386.2mm vs 362.4 est

CAPITAL GOODS
CRANE CO +3.6% q3 $1.03 vs 1.06 est, revs $669.9mm vs 697.3 est, sees fy $4.10-4.20 vs 4.30 prior high end
INGERSOLL-RAND +1% q3 $1.21 vs 1.16 est, revs $3.49bln vs 3.51 est, sees q4 90-95c vs 96c est
AMETEK -4.5% q3 65c inline, revs $998.5mm vs $1.03bln, sees q4 63c vs 68c est
TEXTRON +4.2% q3 63c vs 61c est, revs $3.18bln vs 3.4bln est
SENSATA -1.5% q3 72c vs 71c est, revs $727.4mm vs 734.2 est, sees q4 62-69c vs 78c est
BE AEROSPACE +3.5% q3 73c vs 76c est, revs $679.8mm vs 701.7 est
MSC INDUSTRIAL DIRECT -10bps q4 96c vs 95c est, revs $727.4mm vs 739.4 est, sees q1 85-89c vs 95c est
SPIRIT AEROSYSTEMS +50bps q3 89c vs 95c est, revs $1.59bln vs 1.66 est, sees fy $3.80-3.95 vs 3.93 est
CUMMINS -8.7% q3 $2.14 vs 2.61 est, revs $4.62bln vs 4.92 est, sees fy revs flat – (2%) vs +2-4% prior view
ANIXTER +3% q3 $1.21 inline, revs $1.49bln vs 1.52 est
WATSCO -10.6% q3 $1.64 vs 1.77 est, revs $1.18bln vs 1.2 est, sees fy $4.85-4.90 vs 5.12 est
PARKER-HANNIFIN -30bps d/g @ Argus
FRANKLIN ELECTRIC +17.4% q3 45c vs 40c est, revs $232.5mm vs 247.6 est, sees q4 34-37c vs 32c est
PACCAR -6.7% q3 $1.21 vs 1.16 est, revs $4.55bln vs 4.79 est
DECKERS OUTDOOR -6.6% d/g @ Sterne Agee CRT

CONSUMER
RENT-A-CENTER -30% q3 47c vs 45c est, revs $791.6mm vs 803.6 est, sees q4 52-62c vs 68c est
COACH +4.4% q1 41c vs 40c est, revs $1.03bln vs 1.04 est
CHILDREN’S PLACE -6.8% d/g @ BofA/Merrill
DR PEPPER SNAPPLE +70bps u/g @ RBC
GROUP 1 AUTOMOTIVE -4.4% q3 $1.91 vs 1.88 est, revs $2.8bln vs 2.81 est
SPIRIT AIRLINES -8.5% q3 $1.35 vs 1.32 est, revs $574.8mm vs 571.4 est
ICONIX BRAND -3.3% q3 $1.02 vs 1.01 est, revs $394.7mm vs 399.02 est
CHEESECAKE FACTORY -4.6% q3 59c vs 56c est, revs $526.7mm vs 535.2 est, sees q4 50-53c vs 54c est
TEMPUR SEALY +30bps job cuts
EXTENDED STAY AMERICA +5% q3 adj ebitda $181.4mm vs 175.1 est, revs $360.5mm vs 358.9 est
WYNDAM WORLDWIDE +5.4% q3 $1.78 vs 1.68 est, revs $1.56bln vs 1.55 est, sees fy $5.06-5.09 vs 5.02 est
FORD -5% q3 45c vs 46c est, revs $38.1bln
JETBLUE -3.2% q3 58c vs 57c est, revs $1.69bln vs 1.68 est
WHIRLPOOL +2.3% positive comments @ Longbow
LAS VEGAS SANDS -2.6% d/g @ Barclays
FRESH DEL MONTE +6.7% q3 57c vs 29c est, revs $936.1mm vs 927.4 est
RITE AID +42.6% said near deal to be acq’d by WALGREENS BOOTS ALLIANCE +6.4%
AMERISOURCEBERGEN +4.2% / MCKESSON -4.2% opposite reactions to possible RiteAid takeout
STARWOOD +9.1% headlines Chinese co’s seeking approval to bid

REAL ESTATE
POTLATCH -80bps q3 53c vs 51c est, revs $174.5mm vs 179.9est
SIMON PROPERTY +1.4% q3 ffo $2.54 vs 2.47 est, revs $1.32bln vs 1.28 est, sees fy $10.10-10.15 vs 10.07 est

FINANCIALS
RADIAN -10.3% q3 31c vs 35c est, revs $297.3mm vs 296.6 est
HARTFORD -7.1% q3 86c vs 98c est,
MARSH MCLENNAN +1.4% q3 63c vs 60c est, revs $3.12bln vs 3.15 est
TD AMERITRADE -1.6% q4 40c inline, revs $831mm vs 836.1 est, sees fy $1.45-1.75 vs 1.67 est
HANMI FINANCIAL -3.8% q3 44c vs 39c est, revs $32.9mm

TRANSPORTATION
SWIFT TRANSPORTATION +1.8% q3 31c vs 32c est, revs $1.07bln vs 1.08 est, sees q4 47-51c vs 51c est
UPS -2.9% q3 $1.39 vs 1.37 est, revs $14.24bln vs 14.41 est

ENERGY
HI-CRUSH PARTNERS -23.4% q3 ebitda $13.4mm vs 15.4 est, revs $81.5mm vs 81.6 est, suspends distribution
BP -70bps q3 net income $1.82bln vs 1.21 est
CONSOL -21.2% q3 adj ebitda $136mm vs 180.2 est, revs $813.9mm vs 723.5 est
WEATHERFORD -40bps u/g @ Susquehanna

SERVICES
LEXMARK -12.6% q3 57c inline, revs $851mm vs 902.8 est, sees q4 $1.05-1.15 vs 1.24 est
HEIDRICK & STRUGGLES +20.6% q3 40c vs 27c est, revs $138.4mm vs 133.6 est
WASTE MANAGEMENT +2.2% q3 74c vs 71c est, revs $3.36bln vs 3.42 est

MATERIALS
INTREPID POTASH -16.7% q3 (6c) vs (7c) est
DUPONT +2.8% q3 13c vs 10c est, revs $4.87bln vs 5.3 est
CORNING +5.4% q3 34c vs 35c est, revs $2.45bln vs 2.52 est, strategic capital allocation plan announced
POLYONE -4% q3 54c vs 53c est, revs $841.6mm vs 881.5 est
PEABODY ENERGY -21.8% q3 adj ebitda $129mm vs 117.5 est, revs $1.42bln vs 1.40 est
MASCO +2.8% q3 34c vs 32c est, revs $1.8bln vs 1.89 est
SEALED AIR -4.4% q3 70c vs 57c est, revs $1.75bln vs 1.74 est, sees, fy ~$2.32 vs 2.26 est
TREX -5.8% q3 26c vs 28c est, revs $94mm vs 96.3 est
AIRGAS +80bps q2 $1.31 vs 1.29 est, revs $1.37bln vs 1.38 est, sees fy $4.90-5.00 vs $5.05 prior high-end view
AK STEEL +3.4% q3 4c, revs $1.71bln vs 1.69 est

Have a good evening.