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 -0.65% (2063.6), D -0.92% (17568.0), N +0.02% (4694.8), CL1 -0.13% (37.60), Copper +0.32% (205.80), Gold +0.33% (1074.96) 10YrYld -0.01 (2.2200), DXY -0.25% (98.42), Vix +10.42% (17.49).

The closed down 15bps from the European close never turning positive today and closing in about the middle of the day’s range. Volume inline with yesterday at 7.5bln shares, about 10% above avg. Dollars traded up fractionally to $275bln, a couple percent above avg. Close to 3/4 of volume to the downside.

Markets lower again today, Oil volatility remains a concern; Biotech bounce supporting Nasdaq. DXY struggling to hold any rally. 10yr goes out flattish; KRE -1.8% breaks below 50dma. EEM -1.1% continues to roll over, as do the High Yield ETFs. Oil sees over 5% intraday swing going out small down; API 4:30pm. WSJ reports KINDER MORGAN -4% holding board meeting today to discuss Div. Copper/Gold flat. Miners hit hard globally; New low XME -2%; ALCOA -6%, FREEPORT -7%. Struggling to find any positives today. AUTOZONE +6% back to all time highs as EPS/Comps Beat. TOLL BROTHERS -7% earnings Miss dragging down the sector, commentary on next year remains positive and we continue to believe LENNAR -3% best positioned given their size and scale. HOME DEPOT (Technical Buy) unch, reaffirmed guidance, sees housing strong for several years. Airlines given back recent Outperformance as SOUTHWEST -9% warned on pricing concerns. Rails continues to fall as M&A becomes increasingly unlikely, NORFOLK SOUTHERN -6%, CP -3%. Perfect storm for TRAN Index -2.8%, ugly chart; and in addition, interesting to see FEDEX -2.8% /UPS -1.3% rolling over at this time of year. QUALCOMM -6% given back lasts weeks gains as EU officially made two antitrust complaints, remain a Seller. Tomorrow looking light on news flow; LULULEMON (Athleisure) reporting, NVIDIA +1.4% speaking at Barc conference, continue to see Buyers across eGaming names, new highs ACTIVISION +1.7%.

OUTPERFORMERS: Biotech +2%, Pharma +30bps, IT Security +30bps, Social Networks +25bps, Software +10bps

UNDERPERFORMERS: Railroads -3.4%, Homebuilders -2.9%, Airlines -2.5%, Banks -1.8%, Materials -1.8%

COMMODS: Nat Gas +30bps, Copper +30bps, WTI -20bps, Gold -20bps, Ally -50bps, Silver -1.5%, Sugar -1.6%, Cocoa -2.8%

ECO: NFIB Small Biz 94.8, est 96.4. JOLTS Job openings 5383, est 5500.

AFTER-HRS NEWS/MOVES:

MASTERCARD +85bps $4bln b/b
SMITH & WESSON -1% q2 eps/revs beat, raises guidance
DAVE & BUSTERS +6% q3 eps/revs beats, raises range of fy view
OXFORD INDUSTRIES -3% q3 eps loss inline, revs miss, lowers range of fy view
AEROVIRONMENT +10.7% q2 profit beats est of loss, revs beat, mid point of fy view above est
KITE PHARMA -2.4% $250mm offering

ACTIVE TODAY:

TMT
FAIRCHILD +5.6% unsolicited bid from China Resources Group
COMCAST -1.4% init buy @ Nomura
JOHN WILEY & SONS -10.4% q2 miss
FRONTIER -2.2% positive comments @ Bernstein
T-MOBILE US +80bps positive comments @ Oppenheimer
ADOBE +2.4% positive comments @ Pacific Crest, p/t raised @ Deutsche
WAYFAIR +2.6% init sector weight @ Pacific Crest
WEBMD -1.7% d/g from top pick list @ RBC
OUTERWALL -24.2% reduces fy revs view
LAM RESEARCH +3.2% added to US1 List @ BofA/Merrill
FIREEYE +6.7% u/g @ Citi
QUALCOMM -5.6% regulatory inquiries in EU and Taiwan
GOPRO +40bps cautious comments @ Citi
MARVELL -7.4% 2 accounting probes by gov’t agencies
CTRIP.COM -30bps d/g @ HSBC

CONSUMER
DEAN FOODS -7.4% d/g @ Morgan Stanley
RESTORATION HARDWARE -90bps defended @ Wells Fargo
AB INBEV -15bps u/g @ HSBC
UNITED NATURAL FOODS -16.2% q1 miss
HERSHEY +80bps u/g @ Argus
CHILDRENS PLACE +12.6% q3 eps inline, revs light, comps miss, reaffirms fy, good start to q4 comps, $250mm b/b
THE BUCKLE +5bps Nov comps small miss
KELLOGG +45bps u/g @ Morgan Stanley
TOLL BROS -7% q4 miss
TANGER FACTORY OUTLET +35bps u/g @ Goldman
INTERCONTINENTAL HOTELS -2.9% d/g @ Berenberg
HYATT -40bps init buy @ Berenberg
UNILEVER -1.2% u/g @ Credit Suisse
H&R BLOCK -7% q2 eps slightly wider loss than est, revs miss too
CASEY’S GENERAL STORE +4.6% q2 beat
SOUTHWEST AIRLINES -9.2% lowers q4 rasm guidance

FINANCIALS
FRANKLIN RESOURCES -3.7% d/g @ Barclays
CBOE HLDGS -4.4% d/g @ Barclays
CARLYLE GROUP -3.3% d/g @ BofA/Merrill

HEALTHCARE
THERMO FISHER +40bps u/g to conviction buy @ Goldman

CAPITAL GOODS
L-3 -1% selling Nat’l Security Solutions unit to CACI +3.7% for $550mm ash

MATERIALS
US STEEL unch’d: debt d/g @ Fitch

TRANSPORTATION
NORFOLK SOUTHERN -5.7% rejects revised CANADIAN PACIFIC -3.3% bid
FEDEX -2.7% p/t lowered @ Bernstein

ENERGY
KINDER MORGAN -4.3% Board mtg to consider div cut

have a good evening.