Northern Trust: 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 +0.08% (2058.7), D -0.20% (17705.9), N +0.26% (4341.2), CL1 -3.18% (43.24), Copper -2.39% (210.25), Gold -0.01% (1263.84) 10YrYld -0.03 (1.7507), DXY +0.28% (94.15), Vix -1.02% (14.57).

The S&P closed up 20bps from the European close to end the day about in the middle of the range. Volumes down about 5% to 6.8bln, 400mm below est. Dollars traded off 9% to $232bln, about 10% below avg. Down volume about 60% of activity.

Pretty narrow range on the S&P today, <50bps, though definitely some moves of interest under the hood. Emerging markets and materials down big largely but not exclusively on China-related concerns. Within emerging markets EWZ etf traded down as much a 7.4% on headlines that Rousseff’s impeachment was halted. EWZ recovered to -1.8% on the day then late headlines that the proceedings will in fact move on. EEM -1.3% and now lowest vs S&P in about 6 weeks. XME down a whopping 7.8% today (JOY -18%, MT -9.5% to name a couple specific stocks) and, vs the S&P, falling below the 50day for the first time in more than 3 months. In addition to hard commodities Crude contributing to moves in the space with oil falling 2.8% with supply concerns from Canadian fires subsiding and the market digesting Saudi moves over the weekend. DXY up 25bps today, out at the highs again and up 5 straight days. All underperforming sectors today linked to commodities and the outperformers again have very defensive flavor to them even though small caps, most-shorted, and nasdaq marginally outperformed the S&P for the day. Updating a few ideas TSLA (Sell) off 2.8% making a new low post #s with BMW i3 looking to get more range and highlighting competition. Press over the weekend highlighting LNKD (Sell) -25bps great for employees, not so much for shareholders in discussing the effect of stock-based come. APPLE (Sell) +8bps today still can’t rebound, note supplier INVN -9.7% after-hrs.

OUTPERFORMERS: Pharma +1.4%, Food/Staples Retailers +1.4%, Dept Stores +1.3%, Healthcare +1.1%, Packaged Foods +85bps

UNDERPERFORMERS: Metals/Mining -10.8%, Coal -7.3%, Gold Miners -6.8%, Drillers -5.3%, Steel 4.9%

COMMODITIES: Cattle +2.1%, Coffee +1.6%, Sugar +90bps , Nickel +50bps, OJ +30bps…..Heating Oil -4%, Gasoline -3.6%, Silver -2.9%, Crude -2.8%, Copper -2.3%

ECO: Labor Market Conditions Indes -0.9 vs -1.0 est

AFTER-HRS NEWS/MOVES:

ARENA PHARMA +4.4% q1 revs beat
STIFEL FINANCIAL +2.7% q1 eps/revs beat
RACKSPACE -6.6% q1 beat but q2 revs seen light
INVENSENSE -9.7% q4 revs miss on iPhone slowdown
SOLAR CITY -14% q1 loss wider than est, guides q2 lower
GAP INC -10.6% April comps miss, q1 prelim #s below est

ACTIVE TODAY:

TMT
WORKDAY -1% d/g to sell @ Brean Capital
NEWS CORP -3.3% d/g @ CLSA
ON SEMI -3.2% q1 eps beat, revs miss
JD.COM -7.1% q1 weaker than est
WAYFAIR +10.2% q1 revs beat, gains customers
APPLE +10bpspositive comments @ RBC Capital
ALIBABA +25bps p/t raised @ Oppenheimer
STRATASYS -1.3% q1 beats but loses early gains
DISH +2.1% defended @ Citi
LIBERTY INTERACTIVE +1.5% q1 beat
BROADCOM +1.5% pos comments @ Morgan Stanley
F5 NETWORKS +1.2% positive comments @ Wells Fargo

CONSUMER
WILLIAM LYONS HOMES +12.5% q1 beat
L BRANDS +65bpsd/g @ UBS
ULTA BEAUTY -10bps d/g @ Raymond James
TYSON FOODS +1.5% q2 beat & raise
ALTRIA +1.2% u/g @ Argus
KRISPE KREME +24.3% $1.35bln t/o from p/e
POST HLDGS +1% p/t raised @ Citi
CHIPOTLE MEXICAN GRILL +4.5% above avg volume on move
SOTHEBY’S +6% says an investor may increase stake to 10%, reverses lower move on #s
KROGER +3.7% backs forecast at investor day
HORMEL +3.1% squeezy move w/ 10% s/i
INTERCONTINENTAL HOTELS -16.6% d/g @ Oddo

CAPITAL GOODS
PACCAR +55bps u/g @ BofA/Merrill
JOY GLOBAL -18% / CATEPILLAR -3.5% trade lower on commodity concerns

FINANCIALS
CAPITAL ONE +30bps u/g @ Guggenheim
PJT PARTNERS +6.1% q1 #s, details effect of fraud incident
LENDING CLUB -34.9% CEO out, #s
PNC FINANCIAL -70bps / BB&T -85bps d/g @ Raymond James
BANK OF THE OZARKS -1.1% u/g @ FIG Partners
ZION +10bps u/g @ Raymond James

REIT
HCP +4.2% spinning off Manorcare portfolio
SL GREEN +70bps top pick @ SunTrust

HEALTHCARE
HORIZON PHARMA +13.9% #s beat, renewed interest in deal for DEPOMED per press
TEVA q1 beat +5.1%
SMITH & NEPHEW +1.9% u/g @ Jefferies
ARIAD +2.9% sells EU business
VALEANT -6.1% sees qrtly filingoyx on time, reits view

ENERGY
OCCIDENTAL PETROLEUM -70bps d/g @ JPMorgan
SANCHEZ ENERGY -2.9% q1 loss wider than est
CHESAPEAKE -10.7% firmly in the crosshairs
DIAMOND OFFSHORE -6.5% deep water names sold

MATERIALS
ARMSTRONG FLOORING +4% q1 revs beat
LOUISIANA-PACIFIC +55bps q1 eps beat, revs miss
VALE -9.8% d/g @ SocGen
US STEEL -14.1% China effect

UTILITIES
AES CORP +70bps recovers after q1 miss