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 +0.48% (2022.0), D +0.60% (17368.5), N +0.72% (4570.2), CL1 +1.82% (36.27), Copper -0.52% (210.70), Gold -1.05% (1063.45) 10YrYld +0.09 (2.2217), DXY +0.12% (97.68), Vix -7.91% (22.47).

The S&P closed up 130bps from the European close (session lows) to close at the day’s best levels. Volumes up over 5% today to 8.8bln shares, 25% above avg. Dollars traded about flat though $338bln but also above avg. Despite closing at highs down volume accounting for about two-thirds of activity for the day.

Further pressure over the morning saw 10% of S&P hit a new 52 week low; Eminis rebound 30 points over the afternoon. Russell -70bps, Most Short -1.8%. DXY +10bps rebounds from early weakness and Euro struggles to hold 1.10; Yuan hits 4 year low. 10yr rallies from 2.14 to 2.23 intraday. HYG -90bps /JNK -80bps remain under pressure, another credit fund liquidating. Oil hit during the European morning but US buying saw 4% bounce; majors outperforming, COP/CVX +3%. Copper/Gold come for sale again; FREEPORT -6.4%, GDX -5.7%. Nat Gas getting destroyed on warm weather, records being broken across the east coast; SWN -10%. No major Earnings or Eco. Solar seeing some short covering post Paris pact, FIRST SOLAR +6% tops S&P; TRINA SOLAR +12% subject to management buyout. Elsewhere in M&A; ON SEMI +2.1% set to win battle for FAIRCHILD -2.7%, MICRON -2.7% Buying rest of Inotera for $3.2bn, ATMEL +3% sees $9 bid but said to stick with Dialog. NEWELL RUBBERMAID -7% confirms JARDEN +2.7% deal. DU PONT -3.6% / DOW -4% now given back the merger rally, confusion remains over deal terms. BAKER HUGHES -2.1% / HALLIBURTON -1.1% set to hear from DOJ tomorrow, stocks trading like that decision has already been made. APPLE -60bps sees further negative channel check updates, chart starting to worry again; supply chain weak, SKYWORKS -3.6%, QORVO -6.6%. FITBIT -1.2% remains for sale ahead of 22.6m share lock up expiry; GOPRO -10% crushed on yet another dgrade, -75% ytd. Looking into tomorrow; earnings remain light, NAHB Housing, 2 day Fed meeting kicks off; would expect another lively session ahead of Thursday’s announcement.

OUTPERFORMERS: Solar +6.3%, Integrated +2.5%, Software +1.4%, Retail +1.3%, Telco +1.1%

UNDERPERFORMERS: Gold Miners -5.7%, Chems -3.5%, Materials -2.8%, Homebuilders -1.6%, Refiners -1.2%

COMMODS: WTI +2.1%, Corn +1.1%, Ally +60bps, Copper -50bps, Gold -1%, Silver -1.3%, Gasoline -2.1%, Nat Gas -5.1%
AFTER-HRS NEWS/MOVES:

VERIFONE -50bps q4 eps/revs small beat, fy view below est
SPARK THERAPEUTICS 3mm shr secondary

ACTIVE TODAY:

TMT
ATMEL +3.1% acknowledges unsolicited $9/shr bid
MICRON -2.7% to buy rest of Inotera for $3.2bln
INTEL +60bps report from edn Tsinghua Unicom to take stakes in Intel and Micron
HP ENTERPRISE +1.8% u/g @ Credit Suisse
FORTINENT -40bps u/g @ Cowen
MATCH GROUP -1.5% init sell @ Goldman
GOPRO -9.6% d/g @ Morgan Stanley
SQUARE +3.2% init buy @ Goldman
SALESFORCE.COM +15bps seen as potential Google cloud partners @ Oppenheimer
BLACKBERRY -1.4% positive comments @ RBC
FAIRCHILD SEMI -2.7% reits support for ON SEMI deal
APPLE -60bps iPhone forecast cut @ Morgan Stanley, p/t cut @ Barclays
LIBERTY MEDIA -1.1% init o/w @ JPMorgan
IAC +60bps positive comments @ Cowen
QUALCOMM -1.3% seen leaning against breakup per press

CONSUMER
JARDEN +2.7% to be acq’d by NEWELL RUBBERMAID in $13.2bln deal
COACH +2.3% u/g @ Piper
MATTEL +3.1% u/g @ BMO
HORMEL +70bps d/g @ Deutsche
MEAD JOHNSON -15bps d/g @ Goldman
KIMBERLY CLARK +2.9% u/g @ Goldman
WHOLE FOODS -2% positive comments @ Oppenheimer
KROGER +1.9% p/t raised @ Argus
TESLA +70bps init mkt perform @ JMP Securities
DESTINATION MATERNITY +5.1% rejects unsolicited bid

HEALTHCARE
STRYKER -85bps d/g @ BMO
VALEANT +1.2% positive comments @ UBS
HORIZON PHARMA -10bps positive comments @ UBS
BRISTOL-MYERS +1.5% p/t increased @ Cowen

FINANCIALS/REIT
PROLOGIS -30bps d/g to sell @ Goldman
BLACKSTONE -3.5% init o/p @ William Blair

INDUSTRIAL
TYCO -2.1% d/g @ Credit Suisse

ENERGY
HALLIBURTON +1.1% unwilling to agree to extension in BAKER HUGHES deal
CHENIERE ENERGY -2.8% CEO out
WEATHERFORD -1.4% seens as logical tgt for NATIONAL OILWELL VARCO +80bps @ FBR
BP -1.9% u/g to focus list @ Scotia Howard Weill
CHEVRON +3.3% u/g @ Soctia Howard Weill
ATWOOD OCEANICS -7.2% d/g @ Soctia Howard Weill

UTILITIES
CONSOLIDATED EDISON +2% u/g from sell @ Deutsche

MATERIALS
STEEL DYNAMIC +40bps u/g @ Nomura
QUANEX +1% q4 beats
CEMEX -2.7% d/g 2 Credit Suisse

TRANSPORTATION
UNION PACIFIC -50bps p/t lowered @ UBS, postive comments @ Susquehanna
FEDEX -40bps d/g @ Raymond James
LANDSTAR -3.4% d/g @ BB&T