Northern Trust Securities: 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 -0.02% (2090.1), D -0.13% (17828.3), N +0.26% (4488.0), CL1 -0.34% (49.39), Copper -0.10% (209.95), Gold -0.36% (1220.06) 10YrYld -0.04 (1.8264), DXY -0.19% (95.18), Vix -3.38% (13.43).

The S&P closed inline w/ the European close just turning just down on the day in the last 10min. Volumes light off 18% from yesterday to 5.8bln shares, 20% below avg. Dollars traded off similarly to $207bln, also 20% below avg. About 55-45 down vol exceeding up on the day.

Quieter day ahead of a public appearance by Fed Chair Yellen tomorrow afternoon. The S&P traded in just a 30bps range all day staying just above the flat line in the 2nd half of the afternoon until the last 10min of the day. Bit of a reversal from recent sector action but all relative… not a lot of major moves at the sector level. Yields backing up a bit, actually back below end of last week levels to about 1.83% on the 10yr. As such Utilities/Telco among the top performers with Finanicals lagging. Energy falling a touch too as oil falls back to close down 50bps after trading >$50 this morning. Retail continues to be a rocky road with ABERCROMBIE -15.7%, MOVADO -9.3%, SIGNET -10.5%, GUESS -5% all on #s though COSTCO +3.6%, DOLLAR GENERAL +4.6%, PVH +4.3%, and DOLLAR TREE (QCC) +12.8% on their results. Heavy mall exposure, and very discretionary product mix seem to continue to be the most vulnerable vs the consistency/uniqueness in the business model seen more often than not in those fairing better. APPLE (NTS Sell) +80bps w/ a story of informal talks with TIME WARNER +1% last year. We would certainly sell APPLE into that strength as it demonstrates the flaws in the co’s current business. Semis one spot that didn’t see a small reverse of recent trend today closing higher again. A story this afternoon that TAIWAN SEMI (NTS Buy) +70bps is on track to be the first in 7nm shows that INTEL (NTS Sell) +30bps is losing its technology end to the likes of TSM and ARM HLDGS (NTS Buy) +50bps.

OUTPERFORMERS: Coal +1.1%, Utilities +1.1%, Retail +75bps, Tech Hardware +65bps, , Telecom +50bps

UNDERPERFORMERS: Metals/Mining -2.7%, Oil Services -1.8%, Chemicals -1.7%, Airlines -1.6%, Inv Banks -1.3%

COMMODS: Wheat +3.3%, Cotton +2.3%, Lean Hogs +1.8%, Cattle +1.7%, Sugar +1.5%…..Gasoline -1.7%, NatGas -1.6% , Heating Oil -1.1%, Soybeans -55bps, Crude -50bps

ECON: Initial Jobless Claims 268k vs 275k est, Durable Goods +3.4% vs 0.5% est, Cap Goods Orders No-Def Ex-Air -0.8% vs 0.3% est, March Factory Orders revised up to 1.8% from 1.5%, Pending Home Sales +5.1% m/m vs 0.7% est, Kansas City Fed -5 vs -3 est

AFTER-HRS NEWS/MOVES:

SPLUNK -3.9% q1 beat but guides just inline
VEEVA SYSTEMS +8.9% q1 beats, raises fy view
DECKERS OUTDOOR -5% q1 miss, lowers forecast
GAMESTOP -9.1% q1 beats but q2 seen below est
PALO ALTO NETWORKS -8.9% q3 inline, q4 revs view midpoint below est
ULTA SALONS +6.4% q1 eps/revs beat

ACTIVE TODAY:

TMT
TIME WARNER +1% Apple said to have considered bid last year
CRITEO -10bps defended @ Jefferies
LIONSGATE +7.6% q4 beat
NETAPP -2.4% q4 miss, lowers q1 view
INFOBLOX -80bps q3 loss, sees q4 at or below est
HP INC +6.9% q2 beat, tweaks high end of fy view lower
PURE STORAGE -15.4% nominal q1 beat but consevative view
WEBMD -4.5% prices convert

HEALTHCARE
PATTERSON COS +5.9% q4 beat
ABBOTT +55bps postive comments @ RBC

CONSUMER
COSTCO +3.6% q3 eps beat
SANDERSON FARMS +2.7% q2 beat
MOVADO -9.3% q1 beat, cuts fy view
SIGNET -10.5% q1 comps miss, lowers fy forecast
DOLLAR GENERAL +4.6% q1 beat
US FOOD +8.3% biggest corporate ipo of the year
BURLINGTON STORES +7.5% q1 beat, boosts fy
INT’L GAME +3.8% q1 beat
SEARS +6.6% posts another loss, CFO out​
GUESS -5%s q2 miss, cuts fy view
POPEYES LOUISIANA KITCHEN +4.5% q1 miss
PVH CORP +4.3% q1 eps beat, boosts fy view
WILLIAMS-SONOMA -20bps q1 beats, reaffirms
DOLLAR TREE +12.8% q1 beat, raises fy
ABERCROMBIE & FITCH -15.7% q1 miss all around
COPART +9.6% q3 beat
CARNIVAL -4.1% / ROYAL CARIBBEAN -2.6% #s cut @ Morgan Stanley

CAPITAL GOODS
TRINA SOLAR -1.6% q1 beat but sees slower 2nd half
TITAN MACHINERY -6.5% q1 loss, revs miss