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 +0.33% (2119.1), D +0.37% (18005.1), N +0.17% (4520.6), CL1 +2.32% (51.52), Copper +0.66% (206.45), Gold +1.48% (1262.30) 10YrYld -0.01 (1.7039), DXY -0.22% (93.62), Vix +0.21% (14.08).

The S&P closed up 20bps from the European close hovering around the highs of the day for the last 2hrs of the session. Volumes flat w/ yesterday at 6.4bln shares, remaining more than 5% below the 20 day avg. Dollars traded off 4% to $222bln, 10% <avg. About 2/3 of volume printing to the upside.

Quiet day all in all with the S&P trading in about a 35bps range all day but sneaks closer still to new highs, about half a percent away. A couple things of note, though mostly continuations of what we’ve seen last few days: continued outperformance of small caps and to a lesser extent mid caps. Most shorted too doubling up the S&P’s gain, Russell more than that. Large-Cap Health Care Equip/Services, Transports, Food Retailers, Materials the stand outs among larger issues. Yields continuing lower, 10yr 1.7% – just about as low as it’s been in 2 months. Financials lag a bit today, increasingly look topped out, esp on a relative basis, for now. With that move in rates and the Fed on hold it seems, Gold continues recent run higher, <2.5% from May highs now while on the other side the Dollar Index making a new low of its recent move and 1% from its May lows. Another day, another +2% for crude – still needs to go much higher to see meaningful production increases in the US. Quality continues to attract a premium as the QCC basket continues to make highs.

OUTPERFORMERS: Metals/Mining +3.2%, Gold Miners +3.1%, Steel +2.9%, Rails +1.9%, Managed Healthcare +1.7%

UNDERPERFORMERS: Coal -2.1%, Explorers -55bps, Autos -40bps, Chemicals -35bps, Integrated Oil -35bps

COMMODS: Coffee +5.6%, Silver +3.9%, Soybeans +3.2%, Sugar +2.8%, Cattle +2.4%…..OJ -1.9%, Nickel -90bps, NatGas -40bps, Cotton+20bps, Copper +50bps

ECON: JOLTS Job Openings 5788 vs 5675 est

AFTER-HRS NEWS/MOVES:

RESTORATION HARDWARE -14% q1 comps miss, cuts fy outlook

ACTIVE TODAY:

TMT
VERIFONE -24.7% q2 miss, cuts fy
LIBERTY MEDIA -1.7% d/g @ Deutsche Bank
YAHOO +0.7% said to be auctioning patent platform for ~ $1bln
TAIWAN SEMI +1.0% May sales up 4.9% y/y
BROADCOM +0.3% block trade

CONSUMER
SPROUTS FARMERS MKTS -0.5% positive comments @ BofA/Merrill
BROWN FORMAN +3.5% q4 beat
RALPH LAUREN -0.3% u/g @ BofA/Merrill
ROSS STORES +0.5% defended @ Wells Fargo
SOUTHWEST AIR +1.0% May traffic +6.4%
LULULEMON +4.9% q1 revs beat, sees margins improving
MONSTER BEVERAGE +0.9% said to have dist deal w/ Carlsberg
DAVE & BUSTERS +10.3% q1 beat & raise
DULUTH HLDGS -2.3% q1 sales miss low end of est
OXFORD INDUSTRIES -1.0% q1 miss, lowers fy eps view

HEALTHCARE
ABBVIE -2.2% d/g @ Morgan Stanley
ICON +2.2% named a top pick @ Wells Fargo
FLEXION THERAPEUTICS -12.4% $60mm share offering
HEALTHEQUITY +5.8% q1 beats

FINANCIALS
LENDING CLUB +0.7% CEO has explored t/o per press, d/g @ FBR Capital
INVESCO +0.9% attractive risk/reward @ Wells Fargo
CAPITAL ONE -0.4% d/g @ Sterne Agee CRT

CAPITAL GOODS
DOVER +1.6% u/g @ Robert Baird
MANITOWOC FOODSERVICE +6 bps d/g @ Robert Baird
GREIF -2.0% q2 eps miss

MATERIALS
AK STEEL +16.8% u/g @ Credit Suisse

ENERGY
RANGE RESOURCES -3.8% valuation d/g @ Nomura
ONEOK -0.2% d/g @ Jefferies
SUNCOR ENERGY -2.1% -1.9% $2.5bln CAD bought deal

TRANSPORTATION
ARDMORE SHIPPING -11% 7.5mm share offering, buying 6 tankers