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 +1.62% (2083.6), D +1.42% (17737.2), N +1.92% (4653.4), CL1 +0.07% (40.70), Copper -1.56% (207.85), Gold +0.02% (1070.52) 10YrYld +0.01 (2.2728), DXY -0.04% (99.59), Vix -10.40% (16.88).

The S&P closed up 95bps from the European close ending the day essentially on session highs. Volumes tapered a bit off 7% to 7.1bln shares, still below avg of 7.3bln. Dollars traded -4% to $275bln, more than $10bln below avg. Better han 90% of volume printing to the upside.

Markets recover from yesterday’s afternoons wobble, slow grind throughout the session going out on the high. Most Short +2.3%. Fed minutes all inline, no major moves on the release. Russian ETF (RSX) +3.6% catches bid on US/French alliance hopes. DXY unch, new intraday high. 10yr drifted from the open, 2.2693. BLACKROCK +2% winding down Global Macro fund. Banks +2%. Gold & Copper remains under pressure. And, Oil tested $40 intraday post Inv build (+1060, est 1161k). Despite this underlying stocks held up well. FREEPORT +4.5%. On Earnings; LOWE’S +1%, STAPLE -3%, TARGET -4%, CITRIX -10%. M&A continues in Semis; ON SEMI -8% paying $2.4bn in Cash for FAIRCHILD +8.5%. MICRO SEMI raised offer for PMC-SIERRA +2%. QUALCOMM -9% makes new 52 week lows as South Korean FTC accuses co of breaking the law, not so good when your biggest customer in Samsung! Stay Short. APPLE +3% outperforming on Goldman note; BORGWARNER +5% also gets upgrade. NORFOLK SOUTHERN +6% outperforming as CP goes public on offer; regulatory hurdles and minimal cost synergies remain an issue, we remain cautious on the space. Sports Apparel bouncing; we like the set up for FOOT LOCKER +3% into Friday’s earnings; NIKE +2.6%. Looking into tomorrow; Earnings expected from ADSK, BBY, ROST, SPLK, TFM, WDAY. 3 IPOs worth looking out for tonight; Square, Match and Mimecast all the big banks involved and given recent woes should be interesting to see how they price.

OUTPERFORMERS: Materials +3.7%, Railroads +3.6%, Gold Miners +3.1%, Autos +3%, Biotech +2.9%

UNDERPERFORMERS: Utils +70bps, Telco +80bps, Defense +90bps, SOX +1%, Industrials +1.3%

COMMODS: Gasoline +3%, OJ +2.9%, WTI +60bps, Gold +10bps, Silver -40bps, Nat Gas -80bps, Copper -1.4%, Sugar -1.9%

ECO: Mortgage Apps +6.2%. Housing Starts MoM -11%, est -3.8%. Building Permits +4.1%, est +3.8%.

AFTER-HRS NEWS/MOVES:

SALESFORCE.COM +4.2% q3 eps beat, revs in line, subscription revs beat, margin beats, q4/fy guide inline, positive fy 16/17 guidance
KEURIG GREEN MTN +20.4% q4 eps strong beat, revs inline, fy fcf view much better than est, boosts div
NETAPP +3.9% q2 eps beat, revs inline, product rev better than est
L BRANDS -2.4% q3 eps beat, revs inline w/ prev report, q4 guide below est
SUNEDISON -11.4% Blackstone denies report eyeing co. debt, stock had traded up 7.6% during reg hrs

ACTIVE TODAY:

TMT
CITRIX SYSTEMS -10.1% to spinoff GoTo product suite into public co, provides operational update
ON SEMI +1.9% to acq FAIRCHILD SEMI +8.5% for $2.4bln in cash
GOPRO -5.1% p/t lowered @ Piper Jaffray
SOUFUN -4.6% q3 loss wider than est, revs inline
YAHOO +40bps included in New York fantasy sports betting investigation; negative note on taxes @ SunTrust
APPLE +3.2% u/g to conviction buy @ Goldman
PMC-SIERRA +1.9% receives revived bid from MICROSEMI +70bps
E-HOUSE +20bps q3 eps up y/y, revs below est, reaffirms fy revs view
SPLUNK +1.1% positive comments @ Stephens
VIP SHOP +4.1% q3 inline w/ est, $300mm b/b
QUALCOMM -9.4% Korea details trade breach findings which co. disputes
NXP SEMI +4.5% added to top pick list @ FBR Capital, removed from US1 List @ BofA/Merrill
TERADATA +6.3% speculation co. could sell itself @ Longbow
SPRINT -9.3% offering 50% savings for switch from rivals as price war intensifies

CONSUMER
JACK IN THE BOX +5.8% q4 eps/revs miss, but fy guide ahead of est
LOWE’S +90bps q3 eps/revs/comps beat, reaffirms
ALTRIA +70bps press report on slumping e-cig sales
CONAGRA +4% to separate into two companies
STAPLES -2.7% q3 eps inlines, revs miss, midpoint of q4 guide below est
UNDER ARMOUR +2.7% defended @ SunTrust
GNC -1.3% /VITAMIN SHOPPE +1.7% defended @ Macquarie
LA-Z-BOY +30bps q2 inline
TARGET -4.3% q3 86c inline, revs touch better, comps just beat, brings up low end of fy guide
STARBUCKS +2.1% sees annual eps growth at least 15%

HEALTHCARE
ZS PHARMA +70bps d/g @ Citi
RADIUS HEALTH +1.3% defended @ Cantor
BLUEBIRD BIO +6.3% init buy @ Goldman

CAPITAL GOODS
MIDDLEBY +3% u/g @ BMO
BORG WARNER +4.9% u/g @ Goldman
TASER +9.4% u/g @ Ladenburg
SOLARCITY +6.7% Musk & Silver Lake in vesting over $100mm

FINANCIALS
LAZARD +7.1% u/g to strong buy @ Raymond James
LENDING CLUB -15bps u/g @ Sterne Agee CRT

ENERGY
EXXON MOBIL +1% d/g @ Raymond James
KINDER MORGAN +4% d/g off conviction buy list @ Goldman
SUNCOR -2.9% d/g @ TD Securities

MATERIALS
USG +4.4% u/g @ Northcoast
SQM -3.6% q3 revs below est

SERVICES
ARAMARK +10.2% q4 eps beats, revs just miss, fy guide midpoint 2c below street
REMAX -4.3% u/g @ JMP Securities

TRANSPORTATION
NORFOLK SO +6.4% Canadian Pacific proposes merger

Have a good evening.