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 -1.10% (2079.5), D -0.89% (17729.7), N -0.63% (4686.2), CL1 -3.97% (40.18), Copper -1.28% (204.45), Gold -1.49% (1053.40) 10YrYld +0.03 (2.1745), DXY +0.22% (100.02), Vix +9.07% (15.96).
The S&P closed down 80bps from the European close ending the day essentially at session lows. Volumes up about 5% to 7.3bln shares, 500mm above avg. Dollars traded flat at $273bln, 10% above avg. About 80% of volume printing to the downside.

Markets failed to hold early gains, going out on session lows, Oil move largely to blame. S&P -1.1%. Overall volumes. ADP Employment 27k above ests and revised higher. DXY +20bps initially rallied to fresh highs as Yellen starting speaking but ran out of steam on ECB comments. Beige Book all a bit beige. 10yr testing 2.20 intraday, slipping to 2.18. Banks -1%. Commods generally lower; Oil testing $40 on 10th consecutive inventory build. WSJ reports Saudi will to cut Oil output, opec meeting Friday. XME -2% /XLE -3.1%. FREEPORT -6% back to lows. SOUFUN +6% best proxy for China Prop rally. On Earnings; ASCENA RETAIL +80bps, BROWN FOREMAN -1.8%. YAHOO +6% tops S&P on reports co looking to sell “core” business as the SpinCo remains in doubt, if this went ahead SOTP around $10 higher. QUALCOMM +5% rallied on news of license agreement but faded on Antitrust concerns; structural risk remain, Seller into strength. Airlines added to yesterday’s gain as DELTA +1.4% issued positive November update. NORTHERN TRUST -60bps held up well in weak market, announced major acquisition. Railroads underperform as CSX -4% and KSU -7% essentially warned at CS Industrials conf. Looking into tomorrow; Earnings expected from KROGER (Buy) -20bps, GE (Buy) -70bps Investor meeting; ECB (10bps cut and €10bn monthly rise), PMIs, Durable Goods.

OUTPERFORMERS: Solar +1.4%, Airlines +1.2%, Managed HC +10bps, Retail -10bps, SOX -60bps

UNDERPERFORMERS: Drillers -4.6%, Railroads -3.3%, Oil Services -3.2%, Gold Miners -2.6%, Autos -2.4%

COMMODS: Ally +1.1%, Silver -60bps, Gold -1%, Wheat -1%, Copper -1.3%, Nat Gas -2.7%, WTI -4.7%, Gasoline -5.4%

ECO: ADP Employment 217k, est 190k. Last month revised higher 14k. Nonfarm Prod 2.2%, est 2.2%. Unit Labor Costs 1.8%, est 1.0%.

AFTER-HRS:

NEW YORK & CO +12.7% q3 loss wider than est but revs/comps beat
AVAGO +6.3% q4 eps beats, revs inline, margins slight beat
AMERICAN EAGLE OUTFITTERS +3.1% q3 eps beat, revs miss, q4 guide inline
AEROPOSTALE -2.8% q3 loss less than est, but revs miss, sees q4 loss vs est of small profit
PVH CORP +3.9% q3 eps beat, revs inline, reaffirms fy view
BOX +2.3% q3 loss inline, revs small beat, q4 revs seen just above est
VERINT SYSTEMS -5.4% q3 eps touch light, revs miss, fy guide below est
TILLY’S -1.1% q3 eps/revs/comps beat, q4 guide poor, comps seen negative vs flat est
PANDORA -4.7% $300mm convert offering

ACTIVE TODAY:

TMT
YAHOO +5.8% activists re-engage as board said to weigh sale of core biz
GOGO WIRELESS +6.1% positive comments @ Evercore ISI
QUALCOMM +5.2% new licensing deal with Xiaomi
WAYFAIR +10.3% positive start to holiday season
AUTODESK -25bps positive comments @ Wedbush
ARM HLDGS -1.4% d/g @ JMP Securities
ACTIVISION -50bps positive comments @ Pacific Crest
ELECTRONIC ARTS +1% defended @ Piper Jaffray
GUIDEWIRE -1.3% q1 eps/revs beat, mid-point of q2 revs guide better than est

CONSUMER
AVON PRODUCTS +6.9% off highs after Oprah denies talk of stake
DELTA +1.4% Nov prasm up 1.5%
AUTONATION -30bps Nov sales -6% y/y
BROWN-FORMAN -1.8% q2 eps miss
NIKE -50bps d/g off conviction list @ Goldman
ASCENA RETAIL +75bps q1 eps beat, revs inline
BOB EVANS -75bps q2 eps small beat, revs miss

CAPITAL GOODS
JOHNSON CONTROLS -5.6% d/g @ William Blair
YINGLI GREEN ENERGY +5.5% q3 epads loss less than expected

FINANCIALS
OCH-ZIFF +15.6% added to US 1 List @ BofA/Merrill

TRANSPORTATION
NORFOLK SOUTHERN -2.8% sees continued headwinds impacting q4 in conf presentation
KANSAS CITY SOUTHERN -7.1% sees q4 revs down high single digits in filing
CH ROBINSON -6.4% d/g @ BofA/Merrill
GOLAR LNG -8.5% d/g @ BofA/Merrill

UTILITIES
NRG ENERGY -12.6% falls on sale of 2 plants

MATERIALS
POTASH -3.4% considering cutting div and b/b, new k+s bid just rumors per ceo

ENERGY
CONTINENTAL -6.1% high cost producers under pressure

This week’s Earnings and Eco highlights…..

THU: Amberella, Dollar General, Express, Kroger, Pure Storage; CSFB TMT/Industrials, GE Investor Meeting. ECB, Comp/Service PMI, ISM Non-Man, Factory Orders, Durable Goods.
FRI: Fastenal Sales; Nu Skin Investor Day. Nonfarm Payrolls.

Have a good evening.