Northern Trust Capital Markets: 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 +0.58% (2083.3), D +0.73% (17804.9), N +0.59% (4400.2), CL1 +2.50% (49.18), Copper +1.85% (208.90), Gold -0.70% (1289.97) 10YrYld +0.08 (1.6834), DXY -0.58% (93.66), Vix -5.36% (18.37).

The S&P closed down 60bps from the European close to end the day up but at session lows. Volumes light post-expiration off 27% to 6.65bln shares falling back below avg of 6.8bln. Dollars traded off 25% to $245bln, just a touch below avg. 80% of volume printing to the upside on the morning frenzy.

As looks will be the case for a bit, the macro continuing to drive the conversation as it pertains to stocks. What seems like support firming for ‘Bremain’ enough to set a positive tone though e-minis did fade most of the gains since the strong move to start the week last night. Crude and rates more holding their gains for the day, the former looking to have passed the test of the 50 day for now, the latter w/ it’s biggest move either way in over 2 weeks/biggest up move in more than a month. The pound at highs of the day basically, 1.467. Fifth straight decline for the dollar index while gold backs off a touch from Friday’s new high. In ideas, the US QCC basket continues to make new relative highs as compounding constants continues to attract a premium. Also at new relative highs our US E-Gaming plays (which features a couple QCC names) as the positives continue: FACEBOOK (NTCM Buy) +30bps making moves w/ their Facebook Live platform in gaming and LOGITECH (NTCM Buy) +1.6% as global p/x action in peripheries positive w/ vr and smart device drivers. MICROSOFT (NTCM Sell) -12bps at a very precarious spot on the chart vs. the mkt as Barron’s echoes our some of our previously voiced concerns on their Linkedin deal. Along w/ fresh Brexit polling to digest tomorrow, Yellen begins 2 days on Capital Hill shortly after the US open.

OUTPERFORMERS: Metals/Mining +4.3%, Coal +3.1%, Explorers +1.9%, Steel +1.9%, Autos +1.7%

UNDERPERFORMERS: Drillers -1%, Utes -40bps, Food/Staples/Retailers -35bps, Gold Miners -25bps, Oil Services -15bps

COMMODS: NatGas +4.4%, Gasoline +4.4%, Heating Oil +2.5%, Crude +2.4%, Copper +1.9%…..Corn -3.6%, Cattle -2%, Wheat -1.5%, Soybeans -1.4%, Coffee -1.1%

ECON: none

AFTER-HRS NEWS/MOVES:

WERNER (halted) sees q2 below est, SWIFT -8% after-hrs in sympathy
IMPERVA +5% new stake by Elliott

ACTIVE TODAY:

TMT
JD.COM +4.6% taking ownership of WAL-MART +20bps China e-biz who will acq 5% stake
YELP +5.7% u/g @ Deutsche
EXPEDIA +2.9% u/g @ Atlantic Equities
SYMANTEC +2.5% u/g from sell @ UBS
SQUARE +1.8% cautious mention in Barron’s
MICROSOFT -15bps Linkedin deal looked skeptically in Barron’s
NETFLIX -70bps p/t cut @ Nomura
DISNEY +60bps “Finding Dory” sets animated film opening record
CYPRESS SEMI -4.1% $250mm convert offering
APPLE -24bps said closer to India stores as gov’t eases requirements
TABLEAU +1% positive comments @ Wedbush
WORKDAY +95bps negative checks @ Wedbush
STAMPS.COM +3.5% $55mm acq

HEALTHCARE
CVS HEALTH -1.7% d/g @ Morgan Stanley
EXPRESS SCRIPTS -60bps d/g @ Morgan Stanley
EAGLE PHAMACEUTICALS -9% d/g @ Mizuho
HOLOGIC +1% FDA emergency authorization for Zika test
CELGENE +55bps positive mention in Barron’s
PERRIGO -1.3% d/g @ Argus
INNOVIVA +1.5% positive phase III trial w/ GLAXOSMITHKLINE +2.9%
CATALENT +5.6% u/g @ BofA/Merrill
PFIZER +80bps off franchise pick list @ Jefferies

CONSUMER
NIKE +1.2% positive comments @ Piper Jaffray
SPIRIT AIRLINES +3.2% u/g @ Credit Suisse
UNDER ARMOUR +2.4% u/g @ Buckingham
BRUNSWICK +3.2% named Top Pick @ SunTrust
SIGNET +1.3% positive customer survey @ Cowen
MGM RESORTS -1.3% p/t raised @ Susquehanna
HERTZ +5.2% / AVIS +3.7% positive survey comments @ MKM
LAS VEGAS SANDS -5.6% Macau to boost junket penalties
GAP +2.9% u/g @ Wolfe Research

CAPITAL GOODS
SOLAR CITY +2.6% d/g @ Barclays
DELPHI +4.9% positive comments in Barron’s
BOEING +2.3% defended @ Deutsche
CATEPILLAR +65bps May sales fall inline w/ April decline

FINANCIALS
BANK OF AMERICA +2.3% +2.3% positive mention in Barron’s
UBS +2.4% press report Americas unit could be for sale citing analyst

ENERGY
MARATHON OIL +10% $888mm acq
MURPHY OIL +6% u/g @ Raymond James
CONTINENTAL RESOURCES +1.5 p/t raised @ Canaccord

TRANSPORTATION
UNION PACIFIC +60bps d/g @ Scotiabank
FEDEX +1.4% gov’t drops illegal prescription drug case