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 +1.66% (1921.6), D +1.41% (16379.1), N +2.15% (4273.0), CL1 +2.17% (31.14), Copper +1.10% (197.75), Gold -1.47% (1077.59) 10YrYld -0.00 (2.0926), DXY +0.15% (99.09), Vix -5.19% (23.91).

Another tough session, making a new low at 10am then we rallying nearly 50 points over the rest of the day. DXY +20bps shrugged off early wobble, uptrend remains intact. 10yr tested 2.05, rebounding to 2.10. Oil post first proper rally of the year (-16% ytd) and the main driver for rally in stocks; WILLIAMS +34%, FREEPORT +12% (-40% ytd), CONOCO +6%. Copper also seeing some relief, but Gold remains for sale. On Earnings/Updates; TSMC +7%, JP MORGAN +1.5%, BEST BUY -10%, GOPRO -15%. JPM EPS/Revs came in ahead and arguably first piece of decent news this year, solid commentary on economy (also a catalyst for today’s bounce), M&A pipeline strong. ABBVIE +7% leading healthcare bounce on positive patent challenge result; AMGEN +5%. Things not so good in Consumer Electronics as GORPO and BEST BUY smashed on warnings. BBY highlighted significant declines in mobile phones, tablets and digital imaging. We now count 12 APPLE +2% supply chain warnings or cautionary statements; earnings 1/26. NETFLIX (Short) +50bps earnings coming up on Tuesday, further –ve commentary today, ratings concerns and relationship with Disney appears to be thawing. We released our Quality Cash Compounders note for US stocks today; Buy Quality companies and backing ‘proven winners’, 50 names to consider. Also today, Toby sent round a 1 month update on the latest Bubblebox; Alpha of 1.75% and 8.16% respectively vs Nasdaq. Looking into tomorrow; Earnings expected from BLK, C, FAST, PNC, RF, USB and WFC; Retail Sales/PPI/IP.
OUTPERFORMERS: Energy +4.5%, Biotech +4%, Pharma +3.2%, Railroads +2.2%, SOX +2.1%,

UNDERPERFORMERS: Gold Miners -3.5%, Homebuilders -1%, Autos -10bps, Real Estate unch, Retail +20bps

COMMODS: Initial Jobless 284k, est 275k

ECO: Sugar +2.7%, WTI +2.4%, Gasoline +2.3%, Ally +1.8%, Copper +1.2%, Gold -1%, Wheat -2%, Silver -2.3%, Nat Gas -5.3%
AFTER-HRS NEWS/MOVES:

INTEL -1.8% q4 eps, revs beat but margin outlook dissapoints
ACTIVE TODAY:

TMT
GOPRO -14.6% q4 warning, job cuts
AMBARELLA -6% down in sympathy with GoPro
YELP -2.2% d/g to sell @ B. Riley
TAIWAN SEMI +6.5% q4 eps beats, revs small beat
NVIDIA -2% d/g @ Barclays
F5 NETWORKS +15bps d/g, positive on ARISTA NETWORKS @ Barclays
INFOSYS +8.4% q3 eps, revs beat
ATMEL -40bps revises q4 guidance, Dialog declines to revise bid
WEBMD -7.7% said in talks to sell all or part of co, then denied
FORTINET +3.2% positive comments @ Stephens
MOBILEYE -9.7% p/t cut @ Morgan Stanley

CONSUMER
FIAT CHRYSLER -4.2% accusations of falsifying sales reports
GENERAL MOTORS -60bps postive comments in Barron’s
VAIL RESORTS +4% postive trading update
KBHOMES +2.7% 10mm share b/b
CHIPOTLE +6.1% u/g @ CLSA
BEST BUY -9.7% dissapoiting holiday sales
BIG FIVE SPORTING GOODS +3.8% preannounces better than est

FINANCIALS
JPMORGAN +1.5% q4 eps/revs beat
GOLDMAN SACHS +1.5% said to look to cut 10% of fixed income staff per press
DISCOVER +1.5% d/g @ JPMorgan
FIRST REPUBLIC +3.5% q4 eps beats, book value slightly light
EAST WEST BANCORP +1.8% u/g @ BMO
PACWEST BANCORP -40bps d/g @ BMO

CAPITAL GOODS
ILLINOIS TOOLWORKS +40bps u/g @ Morgan Stanley

HEALTHCARE
NOVARTIS +2% named top global pick in sector @ Jefferies
ABBVIE +6.6% defeats Amgen in patent dispute

ENERGY
DIAMONDBACK ENERGY +5.3% u/g @ Cowen

MATERIALS
YAMANA GOLD -8.2% d/g @ Barclays
ALCOA +1.5% d/g @ Argus
BHP +6.4% u/g @ Citi

Have a good evening.