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 +0.11% (2099.3), D +0.01% (17789.7), N -0.08% (4520.1), CL1 -0.43% (48.89), Copper -1.22% (207.00), Gold -0.23% (1212.59) 10YrYld -0.01 (1.8372), DXY -0.49% (95.42), Vix +0.07% (14.20).

The S&P closed up 25bps from the European close to just turn positive in the last hour of the day. Volumes fall after yesterday’s first day back from the long-weekend, down 21% today to 6.5bln shares, slipping below avg of 7bln. Dollars traded -25% to $240bln vs avg of $253bln. About 60% of volume printing to the upside.

Mkt continues to consolidate here a touch shy of April highs. With key econ data to come this week (payrolls Friday) and the Opec mtg getting underway investors seem inclined to largely wait and see. (Note after-hrs looks like some comments from UAE, Iran ministers re: output tgts may be bearish for crude). The US mkt did ever so slightly trend higher through the day after opening at the lows with some better than expected ISM data shortly after the open. Seems to be a bit of rotation underway to a more defensive posture w/ the SHUT Index outperforming TIME for the 4th session in a row. Autos in focus today w/ monthly sales data which overall seemed disappointing: worst performing large cap sector of the day followed by Tech Hardware, Transports, and Retailers w/ activewear co’s underpressure on UNDER ARMOUR -3.9% updating guidance and 2 d/g’s out there on NIKE -50bps (NTS Buy). The shorter end of the curve gains back most of yesterday’s drop in rates while to 10 year drifts back below 1.84%, curve threatening another multi-year close. Worth noting mkt pricing for a June hike backing up to 20% now, was over 20% end of last week (July still just over 50%). Gold/Dollar both off small.

OUTPERFORMERS: Refiners +2%, Coal +1%, Managed Health +95bps, Household Products +95bps, Chemicals +95bps

UNDERPERFORMERS: Metals/Mining -4.3%, Autos -1.9%, Drillers -1%, Tech Hardware -95bps, Telco -90bps

COMMODS: NatGas +4.2%, Corn +2.2%, Wheat +2%, Soybeans +2%, Lean Hogs +1.7%……Cotton -1.2%, Copper -1.1%, Cattle -50bps, Sugar -45bps, Gold -25bps

ECON: MBA Mortgage Applications -4.1%, Markit US Manf PMI 50.7 vs 50.5est, ISM Manf 51.3 vs 50.3 est, ISM Prices Paid 63.5 vs 58.5 est, Construction Spending (1.8%) vs +0.6% est

AFTER-HRS NEWS/MOVES:

WEATHERFORD -12.8% offering $1bln in exchangeable notes
BOX -7.5% q1 loss less than est but billings # light

ACTIVE TODAY:

TMT
WORKDAY +2% q1 loss wider than est, revs small beat, sees q2 revs just ahead of est
TIVO -1.3% q1 revs miss, reaffirms
DEMANDWARE +55.9% to be acq’d for $2.8bln by Salesforce.com
SALESFORCE.COM -30bps cuts q2, fy view
EMC unch’d d/g @ UBS
21ST CENTURY FOX +1.6% added to US1 list @ BofA/Merrill
ALIBABA -6.5% Softbank selling stake

CONSUMER
MICHAEL KORS +6.6% q4 beat, forecast better than est
LAS VEGAS SANDS +25bps Macau industry revs -9.6% in May
MGM +2.5% buys Boyd’s stake in Borgata
NIKE -50bps d/g’s @ Morgan Stanley, BofA/Merrill
WHOLE FOODS +4.9% u/g @ Credit Suisse
COSTCO +2.5% u/g @ Goldman
STARBUCKS -15bps positive comments in Barron’s
HANESBRANDS +2.1% updates forecast to reflect acq’s
VERA BRADLEY +2% q1 beat, reaffirms
CRACKER BARREL +8.4% q3 beat, spec div, boosts fy
JC PENNEY -15bps says qtr comps tracking well
FIAT CHRYSLER -1.8% US May sales +9.5% vs 7.7% est
FORD -2.8% May +1.9% vs 2.0% est
GENERAL MOTORS -3.4% May (11.1%) vs (3.1%) est
HONDA -1% May +3.1% vs 2.6% est
TOYOTA -10bps May (2%) vs (0.7%) est
FOOT LOCKER -1.8% off US1 list @ BofA/Merrill
ASCENA RETAIL -2.2% q3 beats, cuts fy view
ZOES KITCHEN +30bps q1 beat, boosts fy revs view
UNDER ARMOUR -3.9% cuts fy revs on Sports Authority bankruptcy

CAPITAL GOODS
BRIGGS & STRATTON -9.8% d/g @ Raymond James

FINANCIALS
FIRST REPUBLIC -1.6% 2.5mm spot secondary
METLIFE +50bps added to US1 list @ BofA/Merrill

HEALTHCARE
RELYPSA +4% u/g @ Mizuho
UNITED HEALTH +65bps exiting more “Obamacare” markets
VALEANT +4.7% sees filing 10-q June 10th or sooner
CELGENE +50bps d/g @ BTIG
CATALENT -1.1% any deal w/ Lonza said to be off the table per press

MATERIALS
ARCELORMITTAL -20bps u/g @ Citi