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 -0.10% (2097.0), D -0.48% (17787.1), N +0.25% (4523.9), CL1 -0.85% (48.91), Copper -1.30% (208.65), Gold +0.85% (1215.77) 10YrYld -0.01 (1.8458), DXY +0.33% (95.83), Vix +8.16% (14.19).

The S&P closed inline w/ the European close despite selling off 40bps from there to the day’s lows before rallying back in the last hour. Volumes up 40% post-long weekend and at month-end to 8bln shares, about 1bln above est. Dollars traded up more than 50% to $311bln, $60bln better than avg. Up volume edges out down volume 53% to 47%.

Mixed tape w/ S&P just closing down, Dow Jones -50bps/Nasdaq +30bps, as some weaker data, renewed Brexit focus on latest poll, and a US terror warning for Europe all contribute to the market taking a pause after Friday’s close at 5 week highs. Data very much front and center ahead of the June mtg and today we had the Chicago PMI fading into contraction territory continuing a pattern of basically oscillating back and forth between the 50-level for the last year and a half. Dallas Fed, a proxy for the impact of lower oil misses big vs already negative estimates, and consumer confidence misses. 10 year yield loses morning highs to move lower to 1.84% and June hike odds retreat from around 30 to 24% (July at 53%). Despite reports of Genscape data indicating a weekly Cushing drawdown, crude also lost early gains to close down 80bps, biggest down move in more than a week. Short covering a big driver today up 70bps with small cap telco/energy/healthcare the best performing pockets of the market today along with biotech which saw some m&a return to the space. Big-cap transports/telco/utilities also right there at the top of the board today. Financials bring up the rear w/ energy, materials, and staples all weak as well. ISM Manufacturing, Construction Spending, Auto Sales all out tomorrow.

OUTPERFORMERS: Coal +3.8%, Gold Miners +1.8%, Social Media +1.5%, Railroads +1.2% , Drillers +75bps

UNDERPERFORMERS: Chemicals -2%, Integrated Oils -1.1%, Aero/Def -1%, Financials -70bps, Consumer Serivces -65bps

COMMODITIES: NatGas +5.2%, OJ +4.1%, Cocoa +1.8%, Cattle +1.4%, Lean Hogs +50bps…..Wheat -3.5%, Corn -1.9%, Silver -1.7%, Copper -1.4%, Gasoline -1%

ECON: Personal Income +0.4% inline, Personal Spending +1% vs 0.7% est, Case-Shiller 20-City m/m +0.85% vs 0.77% est, +5.43% vs 5.16% y/y, Chicago PMI 49.3 vs 50.5 est, Consumer Confidence 92.6 vs 96.1 est, Dallas Fed Manf -20.8 vs -8 est

AFTER-HRS NEWS/MOVES:

WORKDAY -4.1% q1 loss wider than est, revs small beat, sees q2 revs just ahead of est
TIVO -1.5% q1 revs miss, reaffirms
ASCENA RETAIL -5.1% q3 beats, cuts fy view
ZOES KITCHEN +3.8% q1 beat, boosts fy revs view
UNDER ARMOUR -1.8% cuts fy revs on Sports Authority bankruptcy

ACTIVE TODAY:

TMT
APPLE -50bps press reports to extend iPhone life cycles; positive comments @ Bernstein
MICRON +3.3% u/g @ Robert Baird
WORKDAY -25bps d/g @ Cross Research
MERCADOLIBRE +1.1% p/t raised @ BofA/Merrill
AMBARELLA +50bps positive comments @ Canaccord
MARKETO +9.4% agrees to $1.8bln acq by p/e
BROCADE +5.4% joined S&P 400 on close
PRICELINE -70bps new terror warning to US citizens in Europe
LINKEDIN +3.9% >100dma for first time since Jan
SINA +5.7% China names strong
SPRINT +3.3% trades >200dma intraday
QLIK TECHNOLOGIES -10.1% p/e bid indication looks disappointing

CONSUMER
FOOT LOCKER +1.6% positive comments @ Piper Jaffray
MICHAEL KORS +2.2% trades well ahead of tomm morn’s #s

HEALTHCARE
MEDTRONIC -1.5%
ALLERGAN -10bps trades up as much as 2.5% on Icahn stake
CELATOR +71.6% to be acq’d by JAZZ PHARMA for $1.5bln
ARIAD +7.8% m&a rekindles in space

FINANCIALS
SIGNATURE BANK -1.7% d/g @ Piper Jaffray

CAPITAL GOODS
TEREX +1.4% d/g @ Morgan Stanley
DEERE +2.2% u/g @ UBS
LOCKHEED MARTIN -1.6% d/g @ Berenberg

ENERGY
STATOIL -3% d/g @ RBC
DIAMOND OFFSHORE +2.8% d/g @ KLR Group
MARATHON OIL +1.3% u/g @ Piper Jaffray

UTILITIES
WESTAR +6.4% to be acq’d by GREAT PLAINS -5.9% for $.86bln