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 -2.50% (1890.3), D -2.21% (16151.4), N -3.48% (4183.1), CL1 +0.62% (30.59), Copper -0.18% (195.55), Gold +0.63% (1093.45) 10YrYld -0.03 (2.0717), DXY -0.06% (98.91), Vix +12.24% (25.22).

The S&P closed down 235bps from the European close ending the day just off session lows. Volume up about 6% over yesterday to 9.6bln shares, 15% above avg. Dollars traded +15% over $360bln, more than 25% above avg. More than 90% of the volume printing to the downside. 105 new 52 week lows on the S&P 500 today (vs 107 on Monday).

Markets lower across the board, Nasdaq leading making a new closing low on the year (-9%). Eminis test 1880, 1850 the big level to watch. Most Short -4.6%. DXY slips below 99 but holding 50dma. 2/10 YC breaking down and taking Banks with it, BKX -3.4% new low for the move and breaks key level been flagging, KRE -3.6%; JPM -2.8% kick off earnings in the morning and run through next week. Early Oil rally sold on disappointing DOE data, 5% range. ALCOA -2%, FREEPORT -9%, WILLIAMS -18%. On Earnings/Updates; GENERAL MOTORS +60bps, TRACTOR SUPPLY -4%, FORD -5%, CSX -6%, BORGWARNER -10%, LENDING TREE -30%. Not great for the TRAN Index -4%, new closing low; but supportive our Short Rails call. Another session where I really couldn’t find anything positive. IT Security couldn’t hold the early squeeze on the CYBERARK +20% t/o spec; HACK -1.1%, PALO ALTO -5% finally cracked. APPLE -3% reports co may be in the mix for TIME WARNER -60bps; supply chain continues to come for Sale, new lows SKYWORKS -7% and QORVO -10%; RF competition concerns adding fuel to the fire. TSMC -1.3 report tonight, INTEL -2.4% report tomorrow after the close. AMAZON -6% breaks 100dma, held this level throughout last year’s monster rally. NETFLIX (Short) -9% given back last week’s gains, -ve sellside commentary around, earnings Tuesday. METLIFE +2.2% looking to separate US retail business. AB INBEV -2.4% launched $46bn bond offering, hearing $30bn had been expected.

OUTPERFORMERS: Gold Miners unch, Utils unch, IT Security -1.1%, Telcos -1.2%, Real Estate -1.5%

UNDERPERFORMERS: Refiners -7.3%, Biotech -5.4%, Retail -4.5%, Drillers -3.9%, Transport -3.8%

COMMODS: Sugar +3.4%, Silver +2.9%, Nat Gas +1.2%, Gold +80bps, Ally +60bps, WTI unch, Copper -40bps, Gasoline -2.9%

ECO: Mortgage Apps 21.3%, prev -11.6%. Beige Book; 12 Fed districts posted “moderate” growth and 7 described the expansion as “modest.”

AFTER-HRS NEWS/MOVES:

GOPRO -25% warns on q4 revs, cutting 7% of jobs
JETBLUE +1% Dec Prasm -5%

ACTIVE TODAY:

TMT
TIMEWARNER -60bps t/o speculation continues with APPLE -2.6% mentioned as possible player in press
MICROSOFT -2.2% u/g @ Morgan Stanley
QUALCOMM -90bps u/g @ Susquehanna
TWITTER -4.8% init neutral @ Mizuho
CYBERARK +19.6% said to be in early discussions to be acq’d by CHECKPOINT
APPLE -2.6% bearish sentiment “overreached” @ FBR
BAIDU -4% positive comments @ Oppenheimer
ELECTRONIC ARTS -3.4% defended @ Piper Jaffray
ATMEL +3.7% deems MICROCHIP -1.3% offer superior to Dialog

CONSUMER
YUM! BRANDS -80bps
FORD -5.1% 25c/shr spec div but sees ’16 pre-tax profits only equal to or greater than ‘15
TRACTOR SUPPLY -3.7% q4 #s miss
RED ROBIN GORMET BURGERS -4.2%
MIDDLEBY -1.5% u/g @ Macquarie
STARWOOD PROPERTY -2.1% d/g @ Goldman
AB INBEV -2.4% said to be preparing $30bln bond sale
GENERAL MOTORS +60bps boosts forecast, $4bln b/b
SCOTTS MIRACLE-GRO +90bps added to Current Better Values List @ William Blair
FIVE BELOW +75bps u/g @ Stifel
COCA COLA -65bps positive comments @ Wells Fargo
UNDER ARMOUR -40bps view cut @ OTR Global

CAPITAL GOODS
BORG WARNER -9.5% sees fy #s below est

FINANCIALS
METLIFE +2.2% said to weigh sale of US retail ops
CME GROUP -3.5% u/g @ JPMorgan
TD AMERITRADE -3.5% u/g @ BofA/Merrill
CHARLES SCHWAB -5.2% d/g @ BofA/Merrill
JANUS CAPITAL -6.3% d/g @ JPMorgan
AMERICAN EXPRESS -2.4% d/g @ Goldman
LENDING TREE -29.4% falls after conf presentation
MORGAN STANLEY -5.5% d/g to sell @ SocGen

HEALTHCARE
SHIRE -60bps positive comments @ Bernstein
INTUITIVE SURGICAL +55bps prelim qtr #s better than est
EXPRESS SCRIPTS -6.9% biggest client threatens to leave
RADIUS HEALTH -12% new low for move
VERTEX -7% trades below September low

TRANSPORTATION
CSX CORP -5.7% sees profits falling
NORFOLK SOUTHERN -5.9% added to s/t buy list @ Deutsche

ENERGY
DIAMONDBACK ENERGY +1.7% files to sell 2.25mm shares
CHENIERE ENERGY -2.6% u/g @ Citi
WHITING PETROLEUM -8.7% d/g @ UBS
ULTRA PETROLEUM +1.2% d/g to sell @ UBS
PLAINS GP -15.2% d/g @ JPMorgan
PLAINS ALL AMERICAN -9.6% d/g @ JPMorgan
WILLIAMS COS -17.7% further speculation of deal trouble
TESORO -12.2% refiners reverse recent gains as gasoline inventories rise

MATERIALS
PRAXAIR -1.9% u/g @ Seaport Global
TIMKENSTEEL -2.8% d/g @ Jefferies

have a good evening.