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 -0.77% (2047.6), D -0.43% (17492.3), N -1.55% (4622.1), CL1 -0.75% (37.23), Copper +0.58% (206.60), Gold -0.14% (1073.48) 10YrYld -0.00 (2.2147), DXY -1.17% (97.32), Vix +10.11% (19.38).

The S&P closed down 1% from the European unable to sustain any real rallies in the afternoon. Volume about about 7% to 8bln shares, more than 1bln above avg. Dollars traded up 14% to $316bln, 20% above avg. Down volume edges out up volume 52-48.

Markets lower for 3rd consecutive session, S&P back in the red for the year, early short squeeze faded. Most Short -1.1%. DXY -1.1% slid lower throughout the session, stops triggered in EUR at 1.10. Rates small down, WIRP hits 78%; Regional Banks remain weak. Oil volatility continues and despite favorable inventory still could not rally. FREEPORT +3.7% and KINDER MORGAN +7% saw big short cover on Div announcements. CAT -1% fell after confirming Div would be maintained. EEM -80bps / EM FX continues to roll; Rand imploding, EZA -3%. On Earnings; AEROVIRONMENT +15%, KRISPY KREME +4%, COSTCO -5%, LULULEMON -13%. DOW CHEM +12% and DUPONT +12% expected to announce merger tomorrow, clearly positive for both; SYNGENTA ADR +8% spiking on renewed t/o speculation. GE +1% said to be interested in HALLIBURTON +6% drilling assets, shouldn’t be a surprise to those following the BHI/HAL deal. FMC TECH +2.3% on reports merging with Technip (TEC FP). UNITED RENTALS +5% bouncing from 6 days of declines as comp Ashtead reported better earnings. YAHOO -1.3% suspends plans to spinoff ALIBABA -1.1% stake, hope is they focus on selling core Internet biz, sees downgrade. EA -5.5% as GAMESTOP -4% cuts Star Wars price to $40 from $60, NPD data tomorrow night; ACTIVISION -2%, NVIDIA -2.5%. FANG coming for sale, worth noting; FACEBOOK -1.8%, AMAZON -1.8%, NETFLIX -2.2%, ALPHABET (Google) -1.6%.

OUTPERFORMERS: Chems +11%, Oil Services +2.3%, Railroads +1.6%, Gold Miners +1.4%, Materials +1.3%

UNDERPERFORMERS: Homebuilders -2.7%, IT Security -2.2%, Tech Hardware -1.8%, Regional Banks -1.6%, Biotech -1.6%

COMMODS: OJ +7%, Gasoline +2.7%, Wheat +1.8%, Ally +60bps, Copper +50bps, Silver +30bps, Gold -10bps, WTI -70bps

ECO: Mortgage Apps 1.2%. Wholesale Inv -0.1%, est +0.2%.

AFTER-HRS NEWS/MOVES:

FMC TECHNOLOGIES +1.8% continues last minute surge in regular session on report in talks with Technip
ATHENAHEALTH +90bps sees fy15 eps at high end of range, revs at midpoint, fy16 range seen abov est
FIRST SOLAR -7.7% sets fy16 guideance

ACTIVE TODAY:

TMT
YAHOO -1.3% reports co. halting ALIBABA spinoff plan, may consider sale of core biz
T-MOBILE US -2.2% positive comments @ KeyBanc
AMAZON -1.9% p/t raised @ Nomura
INTEL +15bps u/g @ Nomura
F5 NETWORKS -3% d/g @ Nomura
ELECTORNIC ARTS -5.5% after GAMESTOP -3.9% said to be discounting Star Wars game
MAXIM +1.4% u/g as t/o candidate @ Nomura
SIGMA DESIGNS -32.6% q3 inline, q4 revs seen below est

CONSUMER
WYNN +13.2% CEO buys 1mm shares
KRISPE KREME +4.4% q3 eps inline, revs miss, low end raised of fy view
HERTZ +4% Icahn boosts stake
LULULEMON -13.1% q3 eps miss, revs touch light
COSTCO -5.4% q1 eps, revs miss
SMITH & WESSON +1.2% q2 eps/revs beat, raises guidance
DAVE & BUSTERS +35bps q3 eps/revs beats, raises range of fy view
OXFORD INDUSTRIES -8.4% q3 eps loss inline, revs miss, lowers range of fy view
WHIRLPOOL -6% down as Electrolux sees need for restructuring
VERA BRADLEY +46.1% q3 beats, raises fy view
AMERICAN AIRLINES -2% sees q4 prasm down 5-7%
PANERA BREAD unch’d: 2016 Best Idea @ Cowen
NORWEGIAN CRUISE LINE -2.7% d/g to sell @ Goldman

FINANCIALS
MASTERCARD -40bps $4bln b/b

HEALTHCARE
KITE PHARMA -6.4% $250mm offering
ELI LILLY -3% p/t raised @ JPMorgan

CAPTIAL GOODS
SUNEDISON +14.8% amends Vivint deal terms
AEROVIRONMENT +15% q2 profit beats est of loss, revs beat, mid point of fy view above est
GENERAL ELECTRIC +95bps press reports on possible $4.7bln sale of Japanese lending unit & interest in Halliburton assets

MATERIALS
DOW +11.9% DUPONT +11.9% said to be late-stage merger talks
FREEPORT MCMORAN +3.7% suspends dividend, cuts capex

ENERGY
KINDER MORGAN +6.9% cuts dividend, lifts capex
WHITING PETROLEUM +2.2% init o/w @ JPMorgan

SERVICES
MANPOWER -5.2% d/g @ Deutsche

Have a good evening.