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 +0.78% (2081.4), D +0.66% (17891.2), N +0.92% (4381.3), CL1 -2.13% (44.94), Copper -0.81% (226.50), Gold -0.14% (1291.17) 10YrYld +0.03 (1.8670), DXY -0.55% (92.58), Vix -6.50% (14.68).

The S&P closed up 45bps from the European close to end the day just off session highs. Volumes light, though, off about 20% from Friday to 7bln shares, just back below avg of 7.1bln. Dollars traded off 25% to $253bln, still just over avg of $251bln. Despite the nice move across major avgs, up volume just 55% of activity today.

Pretty broad-based rally after last week to start May. Volumes dip as headlines a bit more muted w/ several int’l markets closed and a slower start this week in US earnings. Energy, Software, Retailers powering rally to afternoon highs. Financials keeping pace as rates move back up to 1.86% on the 10yr. AMAZON +3.7% continues to be a beast post-#s. APPLE (sell) -10bps continues to underperform post-#s. Energy stands out to the downside, Genscape data showing a bigger Cushing build, crude -2.1%, <$45 and prob not a coincidence with that move, Most-Shorted +50bps a decent under performer despite the broader melt-up. In stock specific news HALIBURTON +1.8% / BAKER HUGHES -2% officially call off their proposed mega deal. BIDU -7.9% as China investigates their compliance with online standards after a death linked to products from an online ad. Macau names up strong on industry data not as bad as feared: WYNN +6.8% / LAS VEGAS SANDS +3.5% . On earnings or pre-announcements: SYSCO +5.5%, BROCADE -11.5%, HELMERICH PAYNE -4.6%, CNA FINANCIAL +3.9%. Outside of stocks and oil, currency moves catching eyes with a new low for the move for DXY, EURO 1.152, JPY 106.48. Gold hits a high of just under 1304/oz pre-mkt US time but drifts through the day to close off fractionally. Despite yields a bit higher, June odds of a rate hike falling to 12% at the moment as US breakevens come back a touch a bit across the board perhaps a bit due to mixed to slightly disappointing economic data: US Economic surprise index making a new low for the move to levels last seen late Feb. Vehicles sales tomorrow, #s from Avis, Cummins, CVS, Emerson, Estee Lauder, Fossil, Grubhub, Molson Coors, Pfizer, Sprint, Starwood, Zillow among others.

OUTPERFORMERS: Coal +2.5%, Retail +1.8%, Pack Foods +1.6%, Consumer Services +1.6%, Real Estate +1.5%

UNDERPERFORMERS: Metals/Mining -3.2%, Drillers -2.7%, Gold Miners -2%, Oil Services -1.4%, Solar -1.2%

COMMODITIES: OJ +6.4%, Nickel +1.6%, Soybeans +1.4%, Lean Hogs +1.2%, Cotton +90bps…..NatGas -5.9%, Gasoline -2.9%, Crude -2.3%, Heating Oil -2%, Coffee -1.%

ECON: Markit US Manf PMI 50.8 inline, ISM Manf 50.8 vs 51.4 est, ISM Prices Paid 59.0 vs 52.0 est, ISM New Orders 55.8, Construction Spending m/m +0.3% vs 0.5% est

AFTER-HRS NEWS/MOVES:

TEXAS ROADHOUSE +3.9% q1 eps/comps beat
COMMUNITY HEALTH -12.3% cuts fy forecast
AIG -2.3% q1 eps miss
CHEGG -2.8% q1 loss just better than est, q2 revs seen inline
TENET HEALTHCARE +5.6% q1 beat, q2 revs seen better than est
AMPLIFY SNACKS -12.4% q1 inline, no upside to guide
QUALYS -4.6% q1 beat but q2 view below est
FABRINET +7% q3 beat
BEACON ROOFING +7.3% q2 revs beat high end of prev range
ANADARKO -90bps q1 loss narrower than est, revs miss

ACTIVE TODAY:

TMT
L-3 COMMUNICATIONS +1.5% u/g @ Goldman
TECH DATA -5.5% d/g to sell @ Citi
GROUPON -3.6% d/g @ RBC
SEAGATE -5.9% d/g @ JPMorgan
STARZ +2.8% u/g @ Credit Agricole
BROADSOFT +3.8% q1 loss narrows
BROCADE -11.5% profit warning
CAVIUM +1.3% positive comments @ Argus
NETSUITE +70bps p/t raised @ FBN
BAIDU -7.9% China investigation into compliance w/ online regulations

CONSUMER
COLGATE-PALMOLIVE +2% u/g from sell @ Goldman
LAS VEGAS SANDS +3.5% / WYNN +6.8% latest Macau data better than expected
PANERA BREAD +5bps p/t raised @ Telsey Advisory
COSTCO +1.9% added to Focus List @ JPMorgan
GNC HLDGS +6.8% strategic review may include sale of co
JC PENNEY +3.7% positive comments in Barron’s
ARROW ELECTRONICS -4.9% d/g to sell @ Citi
DICKS SPORTING GOODS +3.3% positive comments @ Deutsche

FINANCIALS
CNA FINANCIAL +3.9% q1 beat
LOEWS +1.2% q1 small beat
ONE BEACON INSURANCE +4.6% q1 op income rises

HEALTHCARE
ACADIA PHARMA +2.2% FDA approval
SAREPTA +26.3% u/g @ Oppenheimer

CAPITAL GOODS
JOY GLOBAL -80bps off conviction list @ Avondale

ENERGY
BAKER HUGHES -2% / HALIBURTON +1.8% deal called off, BHI paying $3.5bln breakup fee
HELMERICH & PAYNE -4.6% q2 loss more than est
DIAMOND OFFSHORE +1.2% q1 revs beat
ULTRA PETROLEUM -23.8% file bancruptcy
OCENEERING INT’L -75bps p/t raised @ Cowen

MATERIALS
VALE -35bps u/g @ BB&T
INT’L PAPER +45bps to acq WEYERHAESER +50bps pulp biz for $2.2bln
EASTMAN CHEMICAL +90bps d/g @ CLSA
TENARIS -2% d/g off focus list @ Scotiabank

SERVICES
APOLLO EDUCATION +12.4% receives “best & final” bid from consortium
SYSCO +5.5% q3 beats

TRANSPORTATION
KIRBY +1.7% u/g @ BB&T