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 +0.15% (2081.8), D +0.16% (17758.2), N -0.30% (4641.7), CL1 +0.52% (44.10), Copper -0.45% (222.00), Gold -0.30% (1089.05) 10YrYld -0.01 (2.3328), DXY +0.22% (99.20), Vix -6.90% (15.38).

The S&P closed up 50bps from the European close to end the nominally in positive territory near the day’s highs. Volume tapering off the better part of 10% to 6.6bln shares vs 7.1bln avg. Dollars traded off 12% to $252bln, $30bln below est. 55-45 up volume edging out down volume.

Markets broadly flat, Nasdaq underperforms. Most Short -70bps. New high for move in DXY, Euro testing 1.07. Rates drifting throughout the session, +ve auction, (WIRP 66%). Multiple Fed speakers Thursday. Commods mixed; Oil up small (API 4:30pm) but Copper back to the lows. Fresh lows EEM vs S&P. On Earnings; RACKSPACE +12%, MCDERMOTT +13%, VODAFONE +4%, GAP -2%. Homebuilders outperforming as DR HORTON +8% earnings gave further reassurance that recovery is on track, raised Div; LENNAR +3% our top pick. LIONS GATE +4% shrugs off last night’s earnings miss (-7% ah) as LBTYA/DISCA take stakes; stay long. Vivendi says is undecided on whether to keep ACTIVISION -60bps shares. MCDONALD’S +30bps held Investor meeting today, has decided not to pursue REIT, sees FY comps at top end. APPLE -3.5% gives back recent earnings gains on –ve channel check note, supply chain hit in Asia and here; SKYWORKS -5%. Industrial concerns remains and ROCKWELL -3.5% and CUMMINS -1.5% cut FY16 guidance; recovery taking longer to play out and ongoing USD strength hurting end customers. Solar weak across the board; SUNEDISON -23% (83% off Aug high) Miss & Cuts; CSIQ -3.4% and TERP -21% also report. In M&A; bberg reports ANADOARKO -7% was co who approached APACHE -1%. Rails also struggled to push on, regulatory hurdles remain; remain a Seller UNION PACIFIC -1.5%. ALIBABA +6bps Singles Day tonight / tomorrow; co says generated $5bn in GMV in first 90 mins. SHAKE SHACK -3.8% sees 26.5m share lock up expire tomorrow. Bond market closed tomorrow for Veterans Day.

OUTPERFORMERS: Homebuilders +3.9%, Media +1%, Cons Disc +1%, Retail +90bps, Refiners +80bps

UNDERPERFORMERS: Solar -6.1%, Gold Miners -2.6%, Tech Hardware -2.2%, SOX -1.8%, Materials -1%

COMMODS: OJ +7.2%, Sugar +4.7%, WTI +80bps, Gold -5bps, Silver -30bps, Copper -50bps, Corn -1.8%, Wheat -1.8%

ECO: NFIB Small Business Optimism 96.1, est 96.4. Import prices -0.5% (est -0.1%) but big revision down last month -0.6% (vs -0.1%).

AFTER-HRS NEWS/MOVES:

ARENA PHARMA +10% q3 loss narrower than expected, revs beat
JUNO THERAPEUTICS -4.3% q3 loss 2x est, revs well short, cash burn concerns
AMDOCS -3.5% q4 eps small beat, revs small miss, q1 eps/revs view below est
EVERYDAY HEALTH -20% prelim eps/revs below est, cuts fy view below street as well

ACTIVE TODAY:

TMT
AUTODESK -25bps d/g @ Rosenblatt & @ Canaccord
MICROSOFT -1.2% p/t raised @ Piper Jaffray
EXONE -24.8% q3 wider than expected loss, revs miss, sees fy revs below est
SUNEDISON -22% q3 loss exceeds year ago, revs beat
APPLE -3.2% negative note out of Asia @ Credit Suisse
CANADIAN SOLAR -3.4% q3 eps/revs beat, q4 revs seen well above est
CYBERARK -9.6% d/g @ BofA/Merrill
VODAFONE +4.3% h1 eps beats, small revs beat, sees improved profitability in h2
LIONS GATE FILMS +4.1% q2 adj ebitda loss vs forecast +$33.5mm, revs miss
RAXSPACE +11.8% q3 adj ebitda beats, revs beat
WAYFAIR -14% q3 loss less than expected, revs beat
TEXTURA -19.7% q3 eps inline but sees fy below prior view
DISH -1.1% acq talk dismissed by VERIZON -40bps at conference
EMC -2.3% worries of tax issues with proposed Dell deal, VMWARE +1.7% reacts positive
T-MOBILE US -4% rapidly approaching test of 200dma, new low for move off 13.5% from Sept high

HEALTHCARE
MALLINCKRODT +7.9% CEO appears on tv to defend against Citron report
JAZZ PHARMA -2.8% q3 eps and revs miss, brings down high end of fy guidance
INTERCEPT +7.1% seen as potential accretive tgt for AMGEN -80bps in note @ Morgan Stanley
VALEANT -2% decline continues as co. holds call

CAPITAL GOODS
ROCKWELL AUTOMATION -3.4% q4 eps/revs miss, sees fy below est
CUMMINS ENGINES -1.4% cautious tone from co. at analyst day, new $1bln b/b

CONSUMER
FOOT LOCKER -2.3% d/g @ Buckingham
BEAZER HOMES +5.6% q4 adj ebitda beats est, revs miss, closings/orders/backlog all slightly below est
DR HORTON +8.3% q4 small eps/revs beat, closings/orders/backlog all slightly below est
CAESARS ENTERTAINMENT -8.8% earnings fail to show positive momentum
GAP -1.4% prelim q3 #s below est, Oct comps miss
MCDONALDS +25bps says not pursuing reit structure at investor day focusing on cost cuts, improved operations
ANHEUSER-BUSCH INBEV +20bps deal w/ SABMiller said as soon as tomm per FT, MOLSON COORS +1.1% said to be lined up to scoop assets as divestitures needed

FINANCIALS
QIWI +12.6% q3 adj ebitda, revs miss
SYNCHRONY FINANCIAL -4.4% to be added to S&P 500
VISA +1.9% talk Berkshire potentially raising stake

ENERGY
DIAMONDBACK ENERGY unch’d: p/t raised @ Stephens
MCDERMOTT +13.1% q3 profit vs forecast loss, revs beat
ANADARKO -3.5% said to have been co. to approach APACHE -1.2% , unclear if talks resume
ATWOOD OCEANICS +10% q4 eps/revs beat

Have a good evening.