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 -1.43% (2049.7), D -1.42% (17477.7), N -1.70% (4606.8), CL1 +3.30% (41.26), Copper +1.28% (205.90), Gold +0.84% (1062.45) 10YrYld +0.14 (2.3189), DXY -2.25% (97.74), Vix +14.83% (18.25).

The S&P closed down 120bps from the European close ending the day just off session lows for the second straight session. Volume increased again, up 7% to 7.9bln shares, more than 1bln above avg. Dollars traded up 18% to $325bln, 25% above avg. About 3/4 of volume printing to the downside today.

Markets lower across the board, Eminis back below 200dma. DXY -2.2% sees biggest move lower for some time, ECB disappoints, huge Euro short getting crushed, 1.0952 last. Rates higher throughout the session, 10yr hits 2.34%. Oil bouncing ahead of tomorrow’s opec meeting, cut not expected, press conference 1600 CET. USD weakness supporting Gold/Copper, underlying stocks struggled, SXPP -4.4%, XME -60bps. New low FREEPORT -2%. NEWMONT +5% focused on lowering costs at Investor Day. Brazil bounced off the lows on hopes of ousting Rouseff; EWZ +3.3%. AVAGO +10% tops S&P post earnings Beat, lean inventory and healthy end demand; supportive ARM +50bps. KROGER +5% hits new all time highs, 48th consecutive qtr of positive comps, raised FY EPS guide; remain a Buyer. Elsewhere on Earnings; ESPRESS -6%, PVH (Technical Short) -11%, AEROPOSTALE -23% YAHOO -4% reverses yesterday’s gains, ALIBABA -3% said to have no interest in “core” biz. Rails struggled again today, our top Short UNION PACIFIC -3.5% hit new 52 week lows. Biotech worst performing sector despite DYAX +12%/SHIRE -3.4% getting Antitrust approval; IBB -3.6% pulled back to 50dma. Uber’s latest round of funding set to take valuation to $62.5bn. All eyes on NFP tomorrow, no major earnings expected.

OUTPERFORMERS: Gold Miners +2.1%, Drillers +1.4%, Solar +90bps, Semis -30bps, Staples -50bps

UNDERPERFORMERS: Building Materials -2.2%, Pharma -2.4%, Managed HC -2.7%, Refiners -3.2%, Biotech -3.6%

COMMODS: Coffee +3.9%, WTI +2.8%, Wheat +2.4%, Copper +1.3%, Gold +90bps, Silver +60bps, Ally -40bps, Nickel -1.5%

ECO: Challenger Job Cuts -13.9%. Initial Jobless 269k, est 269k. Comp PMI 55.9, prev 56.1; Services 56.1, est 56.5. ISM Non-Man 55.9, est 58.0. Factory Orders +1.5%, est +1.4%.
AFTER-HRS NEWS/MOVES:

AMBARELLA -5.2% q3 eps/revs beat, q4 revs guide light
FIVE BELOW +8.9% q3 eps/revs small beat, fy view inline
ULTA BEAUTY +4.2% q3 eps/revs/comps beat, q4 view inline, guides comps better
EXPRESS SCRIPTS unch’d: 60mm share b/b
ZUMIEZ halted: q3 eps beat, revs inline, comps miss, q4 view below est, $70mm b/b
COOPER COS -11.3% q4 eps, revs miss, q1 guide below est
OMNIVISION +80bps q2 eps/revs beat, q3 revs midpoint just over est
GAP STORES -3.9% Nov comps miss

ACTIVE TODAY:

TMT
NCR -2.6% d/g @ Oppenheimer
PANDORA -11.5% $300mm convert, u/g @ Raymond James
HIMAX +2.3% u/g @ Northland
AVAGO +9.5% q4 eps beats, revs inline, margins slight beat
BOX -6.7% q3 loss inline, revs small beat, q4 revs seen just above est
VERINT SYSTEMS -13.9% q3 eps touch light, revs miss, fy guide below est
YAHOO -3.7% Alibaba said not interested in core business
FITBIT +2.6% positive comments @ Piper
PALO ALTO NETWORKS -1.7% added to top picks @ FBR

CONSUMER
DOLLAR GENERAL +4.2% q3 eps small beat, revs small miss, comps touch weak, mid point of guide below est
EXPRESS -6.1% q3 eps/revs beat, fy guide better than est
LANDS END -8.3% q3 eps/revs miss
COSTCO +1.6% Nov comps beat, u/g @ Deutsche Bank, p/t raised @ Stifel
GENERAL MOTORS -70bps positive comments @ Citi
MICHAELS -1% q3 inline, guide midpoint below est
L BRANDS -25bps Nov comps beat
NEW YORK & CO +9.9% q3 loss wider than est but revs/comps beat
TILLY’S unch’d: q3 eps/revs/comps beat, q4 guide poor, comps seen negative vs flat est
AMERICAN EAGLE OUTFITTERS -3.1% q3 eps beat, revs miss, q4 guide inline
AEROPOSTALE -23.3% q3 loss less than est, but revs miss, sees q4 loss vs est of small profit
PVH CORP -11.1% q3 eps beat, revs inline, reaffirms fy view
RITE AID +25bps Nov comps +0.9%
KROGER +4.7% q3 eps beat, guidance ahead of #s
AVON +7% said in talks to sell NA biz to p/e

HEALTHCARE
PERKINELMER -3.2% d/g @ Wedbush
TEVA +65bps prices secondary
MEDTRONIC +75bps q2 inline, guide inline
MALLINCKRODT -20bps q4 eps/revs beat
DYAX +12.2% anti trust clearance for acq by Shire

ENERGY
KINDER MORGAN -6.8% d/g @ Argus
GULFPORT ENERGY +30bps added to Franchise Pick list @ Jefferies

FINANCIALS
TD BANK -1.3% q4 eps inline, revs better, 9.5mm share b/b
TRAVELERS -3% / UNUM -1.7% d/g @ BofA/Merrill
RAYMOND JAMES -1% acquires Deutsche Bank US private client business
VANTIV -2.8% 13.4mm share offering