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 +1.06% (2043.4), D +0.90% (17524.9), N +0.59% (4597.3), CL1 +2.37% (37.17), Copper -2.79% (205.25), Gold +0.13% (1061.19) 10YrYld +0.05 (2.2676), DXY +0.60% (98.19), Vix -7.26% (21.08).

The S&P closed inline with the European close, fading a bit over the last hour. Volume off about 10% today to 8bln shares, 1bln above avg. Dollars traded off 8% to $317bln, still more than 10% above avg. More than 80% of volume to the upside.

Markets higher across the board led by Oils and Banks. Most Short +2.2%. DXY /Rates catching a bid ahead of the Fed; 10yr 2.26. HYG +1.6% / JNK +1.2%. Banks enjoy best rally in 2 months; BKX +3%. Oil now +$3 from yesterday’s low; XLE +2.5%, EXXON +4.5%. API 4:30pm. BHI -60bps/HAL +1.5% DOJ extends deadline to 30th April 2016, remedies offered aren’t sufficient. Copper/Nat Gas weak; XME -90bps. On Earnings; VERIFONE +20bps, 3M -6%, AGCO -7%, KENNAMETAL -19%. All things Star Wars catching a bid ahead of Friday’s release; AMC +5%, EA +4%, DISNEY +3%. ACTIVISION +2% and KROGER +1.1% new all time high, top picks. QUALCOMM (Short) +2.5% seeing a little relief on today’s guidance, looks to be related to Buyback and leaves us unconvinced. APPLE -1.8% notable underperformer, more concerns from supply chain, set up looking weak into March quarter; SKYWORKS -1%, CIRRUS LOGIC -5%. FANG Index went out on session lows and continues to weaken vs market. Department stores continue to underperform in Retail, H&M the latest to flag weather; new low MACY’S -1.2%. DOW -1.4%/DUPONT -2% still coming for sale post merger; SYNGENTA +70bps barely reacting to Chemchina story. MICROCHIP +3.3% said to be undisclosed bidder for ATMEL -20bps. ADVANCE AUTO PARTS +6% on report co up for sale. FT suggests door still open for possible VOD +1%/LIBERTY +60bps deal. Looking into tomorrow; clear focus is the Fed 2/2:30pm, one and dove; Earnings expected from FedEx, Joy Global, Oracle.

OUTPERFORMERS: Drillers +6%, Integrated +4%, Banks +3%, Solar +3%, Biotech +2.9%

UNDERPERFORMERS: Chems -1.6%, Dept Stores -1%, Materials -90bps, Tech Hardware -50bps, Industrials unch

COMMODS: WTI +2.4%, Silver +50bps, Wheat +20bps, Gold -20bps, Ally -1.1%, Nickel -2.3%, Copper -2.8%, Nat Gas -5.4%

ECO: Empire Man -4.59, est -7.00. CPI 0.0%, est 0.0%. NAHB Housing 61, est 63.

ACTIVE TODAY:

TMT
SYMANTEC +3.3% u/g @ Morgan Stanley
VMWARE +1.3% Dell could b/b at least $3bln in tracking stock
LIONSGATE +3.5% init o/p @ Bernstein
TEXAS INTRUMENTS +2.4% u/g @ Oppenheimer
VERIFONE +25bps q4 eps/revs small beat, fy view below est
DISNEY +2.6% / IMAX +2.4% Star Wars anticipation
SIRIUS XM +1.8% reaches new deal with Howard Stern
QUALCOMM +2.5% rejects split after review, sees q1 at/modestly above high end of range
VERIZON +20bps d/g @ BTIG
COGNIZANT +1.3% d/g off conviction list @ Goldman
CIRRUS LOGIC -5.2% Apple supply chain continues under pressure after Dialog Semi warning

CONSUMER
ZOE’S KITCHEN -5.8% d/g @ Credit Suisse
PANERA BREAD +1.1% u/g @ Longbow
HYATT -90bps d/g @ Citi
COACH +4.1% u/g @ Cowen
DOLLAR TREE -50bps p/t raised @ Cantor
NORWEGIAN CRUISE LINE HLDGS -1.6% prices secondary
PANERA +1.1% u/g @ Longbow
ADVANCED AUTO PARTS +5.8% reports co may look to sell itself

HEALTHCARE
AMGEN +2.9% u/g @ Morgan Stanley
VALEANT +16.4% cuts some drug prices in dist pact with Walgreens
INTERCEPT +16.9% report has hired advisors amid approaches
PERRIGO +20bps positive comments @ Jefferies

CAP GOODS/INDUSTRIAL
KENNEMETAL -19% slashes guidance just over 1 month after prev update
JOHNSON CONTROLS -75bps d/g @ RBC
CHICAGO BRIDGE & IRON +3.5% u/g @ Baird
BOEING +2.5% boosts div/buyback
DEERE -2.1% sells off on Agco cutting guide

FINANCIALS
AIG +2.6% u/g @ Keefe Bruyette
CARLYLE GROUP +3.4% d/g @ Citi
INTERCONTINENTAL EXCHANGE +1.8% reinstated o/w @ Barclays
LEUCADIA NAT’L +5.5% Jefferies trading revs down 36% for the qtr
VISA +2.3% u/g to conviction buy @ Goldman

MATERIALS
LUMBER LIQUIDATORS +24.7% report Tilson has covered short
PEABODY -6.7% d/g @ Macquarie
3M -6% cuts fy view
POTASH +3.3% u/g @ HSBC

SERVICES
XEROX +1.6% Icahn increses stake by a percent to 8.13%

ENERGY
BAKER HUGHES -60bps / HALIBURTON +1.5% extending closing deadline to April