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 +0.13% (2112.1), D +0.10% (17938.3), N -0.23% (4513.1), CL1 +1.29% (50.34), Copper -3.05% (205.25), Gold -0.14% (1243.54) 10YrYld -0.02 (1.7143), DXY -0.04% (93.86), Vix +2.93% (14.05).

The S&P closed down 25bps from the European close to end the day inline w/ opening levels and at afternoon lows. Volumes off small to 6.3bln shares, 500mm below avg. Dollars traded off fractionally to $226bln, more than $20bln below avg. About 60-40 up volume over down volume on the day.

Energy again the standout as oil continues to grind higher (and we see that continuing). Small/Mid/Lrg Cap Energy shares the best performers of the day. Transports also strong led by airlines which are seeing summer price hikes take hold across the industry. Retail, Semis, Most-Shorted Names, Tech Hardware, Real Estate also the main outperformers. Lrg Cap Pharma weak on poor trial data from BIOGEN -12.7% and ALEXION -10.8%. Financials weak too w/ yields coming in a bit w/ the 10yr back down to 1.71% along w/ global headlines of record low yields – that combined w/ World Bank lowering its global growth forecast reinforces a market scarce for yield and growth: good for QCC names as US QCC basket makes new highs today. Despite rates falling, utilities also weak along w/ staples as summer dovishness seems to take; dollar leaks a bit lower still. Materials also a laggard with FREEPORT -3.5% on rising copper inventories. Moving on #s NAVISTAR +19.6% as had big s/I, VALEANT -14.6%. BIOGEN -12.8% weighs on biotech w/ poor trial results. ARM HLDGS (NTS Buy) +1.6% outperforms semi making new high for the move and just eclipsing first day of the year levels. In e-gaming ACTIVISION (NTS Buy) +1% on a report of bullish checks. F5 NETWORKS (QCC) +12.8% in late day pop on press saying has hired advisors on t/o interest.

OUTPERFORMERS: Explorers +3.7%, Drillers +2.9%, Homebuilders +2.6%, Airlines +2.5%, Oil Services +2.3%

UNDERPERFORMERS: Metals/Mining -3.7%, Gold Miners -1.5%, Inv Banks -1%, Asset Mgrs -90bps, Pharma -80bps

COMMODS: Heating Oil +2.6%, Nickel +2%, Crude +1.6%, Sugar +1.2%, Cocoa +65bps…..Copper -3.1%, Lean Hogs -60bps, Cattle -50bps, Silver -20bps, Gold -5bps

ECON: Non-farm Productivity (q1 final) -0.6% inline, Labor Costs (q1 final)

AFTER-HRS NEWS/MOVES

SUNCOR ENERGY -1.9% $2.5bln CAD bought deal
DAVE & BUSTERS +3.6% q1 beat & raise
VERIFONE -23.5% q2 miss, cuts fy
ARDMORE SHIPPING -13.7% 7.5mm share offering, buying 6 tankers
DULUTH HLDGS -11.7% q1 sales miss low end of est
FLEXION THERAPEUTICS -7.1% $60mm share offering
OXFORD INDUSTRIES -5.6% q1 miss, lowers fy eps view
HEALTHEQUITY +4.2% q1 beats

ACTIVE TODAY:

TMT
APPLE +40bps seen range-bound @ UBS
NVIDIA +20bps p/t raised @ MKM Partners
TWITTER -1.8% discussed as m&a tgt @ SunTrust; another high-profile hacking
IAC -80bps init o/p @ BMO Capital
AMAZON -40bps p/t raised @ Oppenheimer
GODADDY -2.3% d/g @ Citi
TAIWAIN SEMI +2.3% positive view of profit growth in Chairman interview
VERIZON +2.1% said to eye $3bln bid for YAHOO -90bps core internet biz
AT&T +1.1% seen as Yahoo bidder too in separate report
ZILLOW +5.7% favorable settlement w/ Move.com
DISCOVERY -3.6% d/g @ Bernstein
SIGMA DESIGNS -3.9% q1 miss
JABIL CIRCUIT -2.1% d/g to sell @ Goldman
SIRIUS unch’d / PANDORA -75bps tie up discussed by Liberty Media CEO
ACTIVISION BLIZZARD +1% revs tracking better than est per note @ ITG Research
SYNAPTICS -1.7% said to be no longer in talks w Chinese investors
F5 NETWORKS +12.6% said to have hired advisors per press

CONSUMER
RALPH LAUREN -2.4% sees lower sales, details plan for cutting jobs, shutting stores
VINCE HLDG +4.8% q1 loss/sales better than est
MICHAEL’S -8.1% q1 comps miss, q2 seen below est
TYSON FOODS -10bps recommended @ Jefferies
UNITED NATURAL FOODS +14% q3 beat & raise
CASEY’S GENERAL STORES +3.3% q4 miss
TESLA +53% investor Ron Barron positive on tv, rises >50dma
PULTE GROUP +3.6% Elliott Mgmt takes stake
CARMAX +2% May used car prices rises per industry data
AMERICAN AIRLINES +3.5% price hikes taking hold in industry

HEALTHCARE
ALEXION -10.9% trial fails to meet endpoint
VALEANT -14.6% cuts forecast
SAREPTA +22.6% FDA requests more info leading to approval optimism
RELYPSA -4.5% d/g @ Morgan Stanley
LDR HLDG +63.8% being acq’d by ZIMMER BIOMET -1.7%
BIOGEN -12.8% MS treatment misses primary endpoint
CTI BIOPHARMA +2.5% positive data
CATALENT -9.1% secondary

FINANCIALS
ZIONS BANCORP -35bps u/g @ Susquehanna
FIFTH THIRD -1% d/g @ Susquehanna
E-TRADE -1.3% launching robo-advisor per press
TRANSUNION -1.7% spot secondary prices
VISA +10bps announces digital commerce app for mobile
MARSH & MCLENNAN +45bps p/t raised @ UBS
BROADRIDGE FINANCIAL SOLUTIONS -1% d/g @ Raymond James
BB&T -45bps u/g @ Rafferty Capital

CAPITAL GOODS
SPIRIT AEROSYSTEMS +30bps positive comments @ Bernstein
NAVISTAR +19.6% q2 profit beats
HD SUPPLY +2.4% q2 eps beats/revs miss

ENERGY
CARRIZO OIL & GAS +5.1% u/g @ Seaport Global
WPX ENERGY +20bps u/g @ Seaport Global

UTILITIES
PSEG -2.5% d/g @ BofA/Merrill

SERVICES
ITT EDUCATIONAL -11.8% told by Dept of Ed to boost cash reserves

TRANSPORTATION
FEDEX +1% boosts dividend
DRYSHIPS -45.3% 3 lenders declare event of default