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 -0.35% (2102.3), D -0.28% (17867.6), N -0.03% (4717.6), CL1 -2.84% (46.56), Copper -0.32% (232.30), Gold -0.82% (1108.67) 10YrYld +0.01 (2.2232), DXY +0.76% (97.90), Vix +6.67% (15.51).

Markets seeing a little profit taking today, Yellen comments take rates/usd higher. S&P inline with the Euro close. Most Short -50bps. Overall volumes -3% DoD and 5% above 20d ave. DXY testing 98; EUR 1.0862, JPY 121.57. 10yr approaching levels not seen since lead up to September meeting; KRE +20bps / XLF -30bps. Oil ($46.52) gives back yesterday’s gains on API/DOE higher builds. Gold fast approaching $1100. XLE -90bps / GDX -2%. BAKER HUGHES -5.3% Jefferies flag concerns over HAL -2.1% deal. On Earnings; TESLA +11%, MICHAEL KORS +8%, ALLERGAN -50bps, REGENERON -2.4%, FOX -5%, TIME WARNER -7%, US STEEL -14%. Not a lot to get excited about in today’s earnings, the 2 names I’ve highlighted in the blue are up on relief rally not blow out numbers. More positioning pain. Media notable underperformer on earnings, S5MEDA -2.5%; brings back memories of DISNEY -2% blow up last quarter, co reports tomorrow afternoon, seen 25% rally off the August low. New highs in ACTIVISION +3.3% getting a little boring now, focus remains on Friday’s Investor Day. We also saw new highs in ADOBE, AMAZON, GOOGLE and MICROSOFT. SOX testing 200dma. Shorts being tested in RANGE RESOURCES +10% as co announced $876m asset sale. Looking into tomorrow; Earnings expected from ANET, CELG, DIS, NVDA, QRVO, RL, SWKS, TAP, TTWO, VC.

OUTPERFORMERS: Refiners +1.2%, Software +60bps, Utils +40bps, Inv Banks +30bps, SOX +30bps

UNDERPERFORMERS: Media -2.5%, Gold Miners -2%, Materials -1.6%, Retail -1.1%, Oil Services -90bps

COMMODS: Wheat +1.7%, Nat Gas +50bps, Ally -30bps, Copper -30bps, Gold -60bps, Silver -1.1%, WTI -3.2%, Sugar -5.6%

ECO: ADP Employment 182k, est 180k. Comp PMI 55.0, prev 54.5. Services PMI 54.8, est 54.5. ISM Non-Man 59.1, est 56.5

AFTER HOURS

FACEBOOK +2% Q3 EPS/Revs Solid Beat. Daily Active Users 1.01bn, est 992m. MAUs 1.55bn, est 1.53bn; Mobile 1.39bn, est 1.36bn.
FIREYE -15% Sees FY Billings $780-800m, prev $840-850m
HOMEAWAY (halted) Expedia paying $3.9n in cash & stock (20% prem)
MICROCHIP Sees Q3 EPS 58-64c, est 64c
QUALCOMM -1% Sees Q1 EPS 80-90c, est $1.08. Sees Q1 Revs $5.2-6.0bn, est $5.74bn.
WHOLE FOODS -4% Comps weak, cuts FY Rev guide

ACTIVE TODAY

CONSUMERS
AUTONATION +2.1% reports Oct retail new vehicle sales +14% yoy
AVIS BUDGET -2.4% downgraded at JP Morgan
AVON PRODUCTS -20% Q3 adj EPS ($0.11) vs $0.07 est, revs $1.67B vs $1.68 est,
BLOOMIN BRANDS -4% downgraded at Raymond James
CABELA’S -65bps initiated overweight at Barclays
CAESARSTONE +10.2% Q3 earnings and revs beat, guides revs $497-502B vs prior $495-505M and $499.8M est
DICK’S SPORTING GOODS -1.6% initiated equal-weight at Barclays
DSW -7.8% downgraded at Tesley Advisory Group, MKM Partners & Susquehanna
ETSY -10% Q3 EPS/Revs Light
HERBALIFE -3.3% cuts FY16 EPS guide
HSN -13% Q3 adj EPS $0.70, revs $864.9M vs $873.5M est.
KELLOGG +90bps upgraded at Credit Suisse
LUMBER LIQUIDATORS +10% Q3 earnings and revs miss
METALDYNE PERFORMANCE GROUP +2.6% downgraded at Deutsche Bank
MICHAEL KORS +8.3% Q2 EPS/Revs ahead. GM 58.8%, est 59.8%. Inventories +15% YoY. Sees FY EPS $4.38-4.42, market $4.31. Sees FY Revs to lower end. Boosting Buyback.
MOHAWK unch mentioned positively on CNBC
PERFORMANCE FOOD -4.7% Q1 earnings and revs beat, guides fiscal 2016 adj EBITDA growth 9-12%
REVLON -6% Q3 EPS $0.21 revs $471.5M
TAYLOR MORRISON -4.7% Q3 earnings and revs miss
TESLA +11.2% Q3 EPS Loss 58c, est Loss 60c. Revs $1.24bn, est $1.24bn. Non-GAAP GM 25.1%, est 23.6%. Sees FY Deliveries 50-52k, prev 50-55k.
VITMAIN SHOPPE +8% Q3 adj EPS $0.52 vs. $0.47, revs $313.9M vs. $317.1M
WENDYS +4.5% Q3 earnings and revs beat, guides EPS at the high end of $0.31-0.33 vs $0.32 est

ENERGY
CARRIZO OIL & GAS -60bps Q3 earnings and revs beat, guides Q4 total production 36,167-37,433 Boe/d vs. FactSet 36,400 Boe/d
CHESAPEAKE ENERGY -2% Q3 EPS ($0.05) ex items vs ($0.13) est, revs $2.89B vs $2.92B est
HOLLY ENERGY PARTNERS -1.1% Q3 revs $88.4M vs $89.5M est
MARKETWEST ENERGY -1% Q3 adj EBITDA $230.3M vs $241.1M est, reaffirms guidance.
RANGE RESOURCES +10% $876m asset sale, upgraded at Citi
SPECTRA ENERGY -2% Q3 EPS $0.23 vs $0.22 est
TARGA RESOURCES -1.5% downgraded at Stifel

FINANCIALS
GENWORTH FINANCIAL -6.6% downgraded at UBS
VIRTU FINANCIAL -7.6% Q3 EPS $0.40 vs. $0.35 est, revs $215.8M vs. $131M est
VOYA -2.9% Q3 oper EPS $0.70 ex-items vs. $0.79 est.

HEALTHCARE
ACCELERON +3.5% Q3 ($0.36) vs ($0.45) est, revs $4.2M vs $4.5M
ALLERGAN -50bps Q3 EPS $3.48, est $3.18. Revs $4.09bn, est $4.03bn, to acquire Northwood Medical Innovation
CHARLES RIVER LABATORIES +4.3% Q3 EPS $1.03 vs $0.94 est, guies FY $3.69-3.74 vs prior $3.60-3.70 and $3.64 est
MEDICINES COMPANY +75bps initiated buy at Chardan Capital
MCKESSON -80bps removed from Conviction Buy List at Goldman Sachs
REGENERON -2.4% Q3 EPS $3.47, est $3.21; Revs inline.
REVANCE THERAPEUTICS -1.5% prices 3.25m shr offering at $36/shr
WELLCARE HEALTH PLANS -9.1% Q3 earnings beat, revs miss, guides EPS $3.35-3.45 vs prior $3.30-3.45 and $3.45 est

INDUSTRIAL
CLEAN HARBORS -6.8% Q3 adj EBITDA $165.6M vs $163.4M, guides FY EBITDA $507-514M vs prior $530-570M and $545.3M est
HD SUPPLY HOLDINGS -1.9% guides Q3 EPS ex-items $0.64-0.67 vs prior $0.63-0.68 and $0.66 est
KENNAMETAL -50bps downgraded at BofA
SCORPIO TANKERS -50bps earnings and revs beat
XPO LOGISTICS -2.1% resumed buy at Citi

MATERIALS
DOW CHEMICAL reinstated equal-weight at Barclays
EXPEDITORS downgraded at Buckingham
LOUISIANA-PACIFIC upgraded at RBC Capital
US STEEL seeing downgrades following last night’s weak results. Sees FY EBITDA $225m, market $500m.

TMT
21ST CENTURY FOX -5.2% Q1 earnings in line, revs miss
3D SYSTEMS +10% Q3 EPS @0.01 ex-items vs $0.08 est, revs $151.6M vs $181.2M est
CBS -60bps Q3 EPS Beat, Revs inline
COGNIZANT -2% Q3/FY inline
CERNER -6.8% cuts Q4 EPS/Rev guidance
GROUPON -26% downgraded at Piper Jaffray, BofA & Sterne
HEWLETT PACKARD ENTERPRISE -5% initiated buy at UBS, initiated neutral at JP Morgan
HP -1% initiated neutral at UBS, downgraded at JP Morgan
INTERXION +2.9% Q3 earnings and revs beat
MOTOROLA -8.6% Q3 earnings and revs beat, repurchased ~$2.1B of stock in the quarter, guides revs $1.68-1.71B vs $1.81 est
REALPAGE +13% upgraded at Deutsche Bank
SHOPIFY +1% Q3 EPS ($0.03) vs ($0.06) est
SINCLAIR +3.9% Q3 earnings and revs beat
STRATASYS +5.3% already preannounce, guide inline
TIME WARNER -6.6% Q3 EPS/Revs ahead and reaffirms FY EPS guide, sales $3.2bn, est $2.95bn; and OpInc $388M, est $358m.
VIRTUSA +3.1% Q2 earnings and revs beat, guides fy $1.57-1.63 vs $1.58 est
WEBMD +7% upgraded at Stifel
ZENDESK +8.7% Q3 EPS/Revs Beat, FY Rev guide at upper end
ZILLOW -6.3% Revs inline, EBITDA ahead
ZYNGA +4.1% Q3 EPS/Revs and Bookings Beat

UTILITIES
BROOKFIELD -1% earnings beat
EL PASO ELECTRIC +1.3% Q3 EPS $1.40 vs $1.23 est, guides FY EPS $1.95-2.10 vs prior $1.75-2.05 and $1.98 est
NRG YIELD +6.2% Q3 earnings and revs miss, guides FY EBITDA $705M vs prior $660M and $672.6M est

Have a good evening.