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 -0.81% (2079.1), D -0.74% (17732.5), N -0.86% (4422.8), CL1 -1.06% (48.54), Copper +1.13% (205.35), Gold +0.78% (1283.87) 10YrYld -0.03 (1.6113), DXY -0.21% (94.36), Vix +23.14% (20.97).

The S&P closed down 60bps from the European close to end the day at session lows. Volumes down small from Friday at 6.64bln shares, 100mm below avg. Dollars traded down less than 1% to $250bln, staying $5bln above avg. Better than 80% of volume to the down side.

With little to get excited about, much of end of last week’s action continues as we await further clues if not direction from the Fed later this week. S&P down 3 days in a row now after making recent highs, first such streak in a month. VIX starting to respond jumping to highest since mid-February. The tragic events over the weekend in Orlando certainly not helpful to investor psyche and Brexit polls seem to continue to show leaving at the least real possibility if not the more likely outcome. Rates and crude not able to get any positive momentum going of late. 10yr falling below 1.61% , lowest since December 2012 and failing to move higher for 11th day in last 13 and down 5 in a row. Changes of hike by Feb next year now dropping <50%. Crude down 3rd day in a row, for now more along the lines of consolidation just under $50. Dollar Index closes lower, GBP last spotted tonight @ 1.4237. Shorts continue to get redeployed w/ most-shorted about double the S&P to the downside. Small/Mid Caps continue to be sold aggressively after recent outperformance. Some deal news of note: most prominent of course MICROSOFT -2.6% purchase of LINKEDIN +46.6% boosting social media names, save FACEBOOK (NTS Buy) -2.3% which was mentioned by a prominent shortseller. Also in security space SYMANTEC +5.3% swoops in for privately-held Blue Coat for $4.65bln as the latter was in the midst of ipo planning. Not enough to get the space going as HACK etf can’t get >200dma, closing flat on the day. Also in the news APPLE (NTS Sell) -1.5% kicked off wwdc but more relevant to our call, further press reports, this time sighting HonHai, of declining iPhone sales. Continue to be sellers as the ‘super-cycle’ comes to an end. As we refresh our e-gaming theme into the E3 Conf (call for updated report), NVIDIA (NTS Buy) +1.3%, one of our plays on the theme, sees positive commentary away and a new street high p/t as continues to make relative highs to the mkt.

OUTPERFORMERS: Social Media +4%, Coal +1.8% , Metals/Mining +40bps, Integrated Oil +40bps, Drillers +10bps

UNDERPERFORMERS: Dept Stores -4.2%, Refiners -3.7%, Airlines -2.7%, Solar -2.5%, Homebuilders -1.9%, Transports -1.4%

COMMODS: Corn +1.7%, NatGas +1.4%, Lean Hogs +1.4%, Copper +1.1%, Gold +75bps…..Cattle -2.6%, Gasoline -1.7%, Cotton -1.5%, Wheat -75bps, Crude -50bps

ECON: none

AFTER-HRS NEWS/MOVES:

REVANCE THERAPEUTICS -27.5% trail fails to meet end point
MINERVA NEUROSCIENCES -3.9% launches secondary
IMMUNOGEN -11.1% $100mm convertible senior notes offering via private placement

ACTIVE TODAY:

TMT
APPLE -1.5% continued press from Asia on declining iPhone sales; wwdc kicks off
SYMANTEC +5.3% $4.65bln acq of private Blue Coat
SCIENCE APPLICATIONS INT’L +2.2% q1 beat
AMAZON -40bps positive comments @ Piper Jaffray
VODAFONE -1.7% d/g @ Macquarie
ON SEMI +1.8% u/g @ Pac Crest
SAP -2.1% d/g @ Jefferies
FITBIT -2% positive comments @ Citi
NVIDIA +1.3% new street high p/t @ Jefferies, u/g @ Nomura
AMD +1.9% p/t raised @ Jefferies
MICROSOFT -2.6% to buy LINKEDIN +46.6% for $26.2bln cash
TWITTER +3.8% attention turns to them as potential t/o candidate
SONY -1.8% positive comments in Barron’s
FACEBOOK -2.3% Citron says short shares

CAPITAL GOODS
DEERE -40bps May sales update
UNITED RENTALS -1.7% removed from focus list @ Citi

CONSUMER
ESTEE LAUDER -30bps u/g @ CLSA
ICONIX BRANDS -8% cuts fy view to reflect added shares issued
WILLIAMS SONOMA -55bps positive comments in Barron’s
HILTON unch’d: positive post-split view in Barron’s
UNITED CONTINENTAL -4.4% prasm concerns mounting on street
GENERAL MOTORS +5bps mkt talk of potential TOYOTA -1.5% interest

FINANCIALS
TOTAL SYSTEM SERVICES -1.8% top processors pick @ Citi

HEALTHCARE
SHIRE -2% breakthrough designation for drug
ENDO +1.2% u/g @ Mizuho
AGIOS PHARMA +3.2% positive study data
ALNYLAM -4% p/t lowered @ Jefferies
MCKESSON -1% positive comments in Barron’s citing holder

ENERGY
GULFPORT ENERGY -1.7% d/g @ KLR
ENI -2.9% positive comments @ Bernstein
ROWAN COS +10bps u/g @ Johnson Rice
ATWOOD OCEANICS +70bps d/g @ Johnson Rice

MATERIALS
STEEL DYNAMICS -1% sees q2 better than est
MONSANTO -2% p/t raised @ Piper Jaffray
LYONDELLBASSELL -1.6% d/g @ Cowen, positive CEO interview in Barron’s
BUNGE -4.5% #s cut @ JPMorgan

TRANSPORTATION
RYDER -65bps positive comments @ Baird