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 +1.25% (2084.4), D +1.26% (17928.4), N +1.40% (4402.0), CL1 +2.49% (44.52), Copper -0.45% (209.70), Gold +0.20% (1266.40) 10YrYld +0.01 (1.7596), DXY +0.15% (94.27), Vix -6.45% (13.63).

The S&P closed up 45bps from the European close enjoying a steady ascent all day to close at the highs. Volumes not indicating a major shift in sentiment, though, actually falling 2% from yesterday to 6.7bln shares, 500mm below avg. Dollars traded up 2% to $240bln, $15bln below avg. Over 80% of volume trading to the upside for the day.

Reversal day of recent trading with high beta names leading the snap-back rally today: energy, materials, financials the stand outs. And on the flip side real estate, utilities, staples the laggards today. Best day for crude in 2 weeks helps get exposed names going though metals not following the move w/ copper, aluminum, nickel all down; precious metals up fractionally. The Dollar Index continuing a bit of a streak here of drifting to the day’s highs now at its highest level in almost 2 weeks, Yen out at its weakest point of the day no doubt helping stocks through the afternoon. No reaction in yields however with the 10yr unch’d today and remains stuck closer to ytd lows than not; the curve flattening today as well. On the ideas front APPLE (NTS Sell) +65bps continues to touch new new relative lows to the S&P and trades just a 25 cents from a new 52 week low today: 2 more poor results in the supply chain from Pegatron in Asia and INVENSENSE -12.3% today. GM (NTS Buy) +1.9% outperforms with news out of China auto sales up 6% in April: recall GM sells more cars in China than in the US and boasts a 4.9% dividend in a world where yield is scarce. In addition to scarcities we believe constants deserve to trade at a premium and would be adding to KROGER (NTS Buy) -1.67% today after a near 4% rally yesterday. Fears of disruption overblown as the co. reaffirmed its forecast this week. Interesting today the co. announced its intention to hire 14k employees for its stores, a positive sign given the co’s prudent mgmt team. Also a constant in today’s world is geopolitical risk and Defense names continue to outperform to a new high for the move. E-gaming continues to be strong with ELECTRONIC ARTS up 6% after-hrs on #s, good for ACTIVISION / NVIDIA (both NTS Buys).

OUTPERFORMERS: Coal +6.6%, Gold Miners +4%, Metals/Mining +3.2%, Steel +3.1%, Explorers +2.9%

UNDERPERFORMERS: Dept Stores -1.8%, Solar -1.1%, Food/Staples Retailers +5bps, Utilities +10bps, Real Estate +25bps

COMMODITIES: Soybeans +5.6%, Heating Oil +3.9%, Nat Gas +3.3%, Corn +3.3%, Gasoline +2.6%…..Nickel -5.1%, Aluminum -2.3%, Cotton -0.7%, Copper -0.4%, Cattle unch’d

ECON: NFIB Small Biz Optimism 93.6 vs 93 est, Wholesale Inventoris +0.1% inline, JOLTS Job Openings 5757 vs 5450 est

AFTER-HRS NEWS/MOVES:

ELECTRONIC ARTS +7.5% q4 #s beat
FOSSIL GROUP -23.2% q1 miss, cuts fy view
NUANCE COMM -3.8% q3 revs miss
DISNEY -6.3% q2 miss
ROCKET FUEL +8.6% q1 loss less than est

ACTIVE TODAY:

TMT
LATTICE SEMI +9.3% q1 inline, sees q2 revs below est, Tshingua ups stake
STAMPS.COM -5.3% q1 beat, fy raise though loses initial pop
RACKSPACE +3.8% q1 beat but q2 revs seen light
INVENSENSE -12.3% q4 revs miss on iPhone slowdown
TRIBUNE MEDIA +3.8% q1 eps miss, revs beat
TAIWAN SEMI +10bps April revs down 11.3%
NOKIA -6.7% q1 sales miss
SILVER SPRING NETWORKS -2.5% q1 beat but lowers guidance
ECHOSTAR +3.8% q1 beat
AMAZON +3.4% street high p/t @ Bernstein
ZEBRA TECH -17.8% q1 loss, cuts fy view
MARKETO +24.7% said to be exploring options

CAPITAL GOODS
REGAL BELOIT -9.0% q1 miss, cuts fy view
SOLAR CITY -20.9% q1 loss wider than est, guides q2 lower
TRANSDIGM +10.6% q2 beat & fy raise
PACCAR +3.2% added to US 1 List @ BofA/Merrill
TEREX +5.2% spec Zoomlion getting financing squared away

HEALTHCARE
ALLERGAN +5.3% q1 eps beat, revs bit light, $10bln b/b
MANNKIND -28.0% q1 loss wider than est, secondary offering
ARENA PHARMA +1.9% q1 revs beat
ZOESTIS -2.0% reports Pershing Sq cuts stake by nearly half
ELI LILLY +1.7% added to US 1 List, PFIZER removed @ BofA/Merrill

FINANCIAL
STIFEL FINANCIAL +10.2% q1 eps/revs beat
CREDIT SUISSE -1.2% q1 net loss less than est, cost cuts seen on track
AFLAC +0.8% d/g @ FBR
ITG +1.6% sells research business to LEUCADIA
BB&T +1.9% u/g @ FIG Partners

REAL ESTATE
FARMLAND PARTNERS -2.3% q1 revs miss

CONSUMER
NORWEIGIAN CRUISE LINE -4.8% q1 inline, q2 seen below est
DEAN FOODS -0.3% q1 beat, revs inline, $155mm acq
SNYDERS-LANCE -5.2% q1 beat but fy view dissapoints
INT’L FLAVORS & FRAGRANCE +5.3% q1 revs beat
HERTZ +0.2% recovers after dip on q1 revs miss
GAP INC -11.5% April comps miss, q1 prelim #s below est
HASBRO +0.3% d/g @ Piper Jaffray
SODA STREAM +23.7% q1 beat
CROCS +32.7% q1 beat
WHITEWAVE +7.0% q1 beat & raise
COSTCO +0.7% positive comments @ BMO
MONSTER BEVERAGE +2.9% $2bln b/b
GENERAL MILLS +1.6% takeout scenario discussed in note @ Citi

MATERIALS
TREX +5.2% Zoomlion said near financing for formal bid
LUMBER LIQUIDATORS -7.9% q1 miss, sales decline continues, another subpoena
ANGLOGOLD +2.8% d/g to sell @ Citi
INTREPID POTASH +18.2% y/g @ CLSA
EAGLE MATERIALS +4.3% aggregates strong

ENERGY
OASIS PETROLEUM +9.0% q1 loss wider than est, production beats
ENERGY TRANSFER PARTNERS -0.2% files to sell $1.5bln units for limited partners

SERVICES
MARKIT +0.3% q1 eps beat, revs miss