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US stocks close the day broadly lower with risk-off sentiment strong on trade war, Italian debt and slower growth concerns

Oct 18, 2018

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US Markets End of Day Snapshot

  • US stocks closed the day broadly lower as risk-off sentiment gripped the market with trade war, Italian debt and slower growth concerns
  • The S&P 500 finished down 1.44%, Nasdaq Composite is down 2.06%, and Russell 2000 is down 1.82%
  • Utilities (+0.09%), Real Estate (+0.01%), and Consumer Staples (-0.23%) stocks were the top performers in the S&P 500 today
  • Telecom (-1.84%), Tech (-2.02%), and Consumer Discretionary (-2.11%) stocks were the worst performers in the S&P 500 today
  • Investor sentiment for US stocks finished negative with the advance/decline ratio for the S&P 500 closing at 0.25x
  • 13 stocks in the S&P 500 hit 4-week highs while 42 stocks reached 4-week lows
  • 0 stocks in the S&P 500 closed overbought while 47 stocks closed oversold according to the 16-day RSI Measure
  • 31 stocks in the Nasdaq Composite hit 4-week highs while 205 stocks reached 4-week lows
  • 97 stocks in the Nasdaq Composite closed overbought while 247 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed up 2.66 points today  to 20.06 after closing at 17.4 yesterday

Stocks Trending in the News Today

Click name for Q-Factor rating and financials data.
 

  • Activision Blizzard (ATVI) closed 8.3% lower at $71.81 after announcing its most recent Call of Duty release had hit the USD$500mm sales mark.  Bloomberg Intelligence commented that the result is “slow” for Activision Blizzard and wondered if it may miss some sales estimates.  Barron’s also had a story about Activision, calling the launch disappointing and today investors seemed to agree.  Activision Blizzard is rated ‘Neutral’ in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Bank of New York Mellon (BK) saw 3Q EPS of USD$1.06, beating the highest estimates in the market.  Bank of New York had a net interest margin of 1.27%, in line with 1.26% expected.  Bank of New York Mellon has USD$1.83 trillion in asset under management and USD$34.5 trillion in asset under administration.  Bank of New York Mellon is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas.
  • BB&T (BBT) reported 3Q adjusted earnings above estimates, with EPS of USD$1.03 beating USD$1.00 estimate.   BB&T net interest margin came at 3.47% while 3.46% was expected.  Net charge-offs came at USD$127mm better than USD$131.8mm expected. BB&T’s 3Q earnings were a record for the company.  BB&T is rated ‘Attractive’ in our US Large-Cap Global Top Stock Ideas.
  • CaixaBank (CABK SA) closed 4.5% lower at 3.64 euros after an unfavorable ruling from Spain’s Supreme Court.  CaixaBank, along with other Spanish banks, will have to pay mortgage-documentation taxes, not the borrowers.  CaixaBank’s plunge was mirrored across the sector in Spain today.  CaixaBank is rated ‘Unattractive’ in our US Large-Cap Global Top Stock Ideas.
  • Carrefour (CA FP) reported 3Q sales better than expected and the stock closed 9.3% higher at 17.03 euros.  Carrefour saw strength in French supermarket sales, an encouraging sign given recent weakness there.  Capex guidance for 2018 was lowered to 1.7 billion euros from 1.8 billion, analysts generally applauded the move.  Carrefour is rated ‘Neutral’ in our European Large-Cap Global Top Stock Ideas.
  • Danaher (DHR) forecast 4Q earnings that missed the mid-point of analyst estimates.  Danaher sees 4Q adjusted EPS of USD$1.25-1.28, while estimates are USD$1.24-1.32. 3Q sales came at USD$4.85 billion, above USD$4.8 billion expected.  Danaher is rated ‘Top Buy’ in our US Large-Cap Global Top Stock Ideas.
  • Ericsson (ERICB SS) closed 6.2% higher at 82.82 krona after reporting 3Q results that solidly beat expectations.  Ericsson’s CFO said “We see that we have good momentum in our product portfolio” in a Bloomberg interview, highlighting that most of its growth is in North America.  Ericsson is rated ‘Neutral’ in our US Large-Cap Global Top Stock Idea
  • Facebook (FB) is “delighted” with its war room’s response to Brazilian elections issues, an article in Blomberg today reports.  Facebook quickly identified and removed malicious hate speech targeting a specific area in Brazil during its presidential election in a matter of hours.  Facebook was very proud of its quick response, the article notes.  Facebook closed at $154.92, down 2.8%.  Facebook is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas and ‘Attractive’ in our US Information Technology Global Top Stock Ideas.
  • FedEx (FDX) may gain if the US drops out of the international postal agreement, as President Trump is threatening to do.  The US is complaining that foreign countries subsidize postal rates giving their domestic players an edge when competing with US shipping companies and the US Postal Service.  FedEx would better be able to compete internationally if there were no subsidies in place.  FedEx is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas and ‘Top Buy’ in our US Industrials Global Top Stock Ideas.
  • Helios & Matheson Analytics (HMNY) is being investigated for potential securities fraud by New York State securities authorities, according to a tweet from the New York Attorney General office.  Helios & Matheson Analytics may have misled investors about its finances and is being investigated under the Martin Act.  Helios & Matheson Analytics is the owner of the MoviePass subscription service.  Helios & Matheson Analytics is rated ‘Neutral’ in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Hon Hai Precision (TSEC:2317, ADR: HNHPF) was suspended from trading on the Taiwan Stock Exchange until Thursday, October 25.  Hon Hai Precision is in the process of a reducing its paid-in-capital by 20% (as previously announced by management).  Hon Hai Precision is not rated in our Global Top Stock Ideas.
  • KeyCorp (KEY) delivered 3Q earnings from continuing operations that matched expectations, coming at 45 cents per share.  KeyCorp sees 4Q noninterest income growth in the single digits.  KeyCorp expects charge-offs to stay stable in 4Q.  KeyCorp expects 4Q noninterest expenses to remain stable.  KeyCorp is rated ‘Attractive’ in our US Large-Cap Global Top Stock Ideas.
  • Michelin (ML FP) closed 0.63% higher at 98.90 euros despite refining guidance a bit lower and being downgraded at Goldman Sachs.  Michelin lowered volume expectations though it expects higher average prices.  Michelin expects volume growth at 1.5% and said it is on target for 1.2 billion euros in cost savings by 2020.  Michelin is rated ‘Unattractive’ in our US Large-Cap Global Top Stock Ideas.
  • MOMO (MOMO) and YY (YY) are experiencing unusual spikes in social media postings over the past few hours.  YY reports earnings on November 8 and MOMO reports earnings on 11/20.  YY is rated “Neutral” and MOMO is rated “Top Buy” in our China All-Cap Global Top Stock Ideas. 
  • Novartis (NOVN LN) has agreed to buy Endocyte Inc (ECYT) in a USD$2.1 billion.  Novartis is acquiring Endocyte for its potential blockbuster prostate cancer drug as Novartis seeks to expand in that area.  Novartis is paying a 54% premium to Endocyte’s closing price as of yesterday, offering USD$24 per share.  Novartis is trading 1.0% higher at 86.24 euros.  Endocyte closed 50.4% higher at $23.40.  Novartis is rated ‘Top Buy’ in our European Large-Cap Global Top Stock Ideas.  Endocyte is rated ‘Unattractive’ in our European Large-Cap Global Top Stock Ideas.
  • Philip Morris International (PM) is trading 3.4% higher to $87.52 after reporting 3Q results that came above estimates.  Philip Morris International delivered profit and revenues above estimates, attracting buyers today.  Philip Morris International also reaffirmed its guidance for the year.  Philip Morris International is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas and ‘Attractive’ in our US Consumer Staples Global Top Stock Ideas.
  • Publicis Group (ENXTPA:PUB) reports a 3Q sales outlook that appears to be boosting its full-year profit outlook.  Publicis is +3.75% to 54.20 euros.  Publicis is rated “Unattractive” in our Europe Large-Cap Global Top Stocks Ideas.
  • SAP (SAP SE) reported mixed 3Q results and the stock closed down 7.6% to $107.01.  SAP 3Q missed estimates but SAP increased guidance for the rest of the year.  SAP sees building momentum in its cloud business going into year end.  SAP saw cloud booking rise 37%, a key indicator of future growth.  SAP is rated ‘Unattractive’ in our European Large-Cap Global Top Stock Ideas.
  • Sinopec (SEHK:386) reports earnings 3Q results which disappointed investor expectations.  Net income guidance fell 20% from 2Q, Sinopec closed down 4.27% to HKD6.50.  Sinopec is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.
  • Snap-On (SNA) reports 3Q results which miss Street estimates with net revenues coming in below the lowest forecast.  Snap-On closed down 9.61% to $151.47.  Snap-On is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Taiwan Semiconductor (2330 TT) gave a revenue outlook below estimates and the stock closed 0.84% at 236.50 Taiwan dollars. Taiwan Semiconductor expects revenue in the coming quarter of USD$9.35-9.45 billion while the market is expecting USD$9.5.  Taiwan Semiconductor is suffering from a slowdown in both crypto mining and mobile phone sales, both are weighing on the stock.  Taiwan Semiconductor is not rated in our Global Top Stock Ideas.
  • Textron (TXT) reports 3Q earnings which miss Consensus estimate.  Textron fell 11.18% to USD$57.49.  Textron is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • United Rentals (URI) closed down 14.93% to $118.13 after decent results yesterday.  United Rentals provided full-year guidance that matched consensus of USD$7.77-7.87 billion.  Without any positive surprises and with that news already priced in, United Rentals is falling the most in over 2 years.  United Rentals is rated ‘Attractive’ in our US Large-Cap Global Top Stock Ideas and ‘Top Buy’ in our US Industrials Global Top Stock Ideas.

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -1.86 basis points to 2.86%
  • US 5-Year Treasury Bonds are higher with yields down -3.43 basis points to 3.02%
  • US 10-Year Treasury Bonds are higher with yields down -3.21 basis points to 3.17%
  • The US Treasury 2s-5s Spread has narrowed 1.57 basis points to 0.15%
  • The US Treasury 2s-10s Spread has narrowed 1.35 basis points to 0.3%
  • US Treasury 5s-10s Spread has widened 0.22 basis points to 0.15%
     

Currencies

  • EUR€ is down 0.374% against the USD$ in after hours to 1.1458
  • GBP£ is down 0.724% against the USD$ in after hours to 1.302
  • CHF is little changed 0.03% against the USD$ in after hours to 1.0044
  • JPY¥ is down 0.435% against the USD$ in after hours to 112.16

Commodities

  • WTI Crude is down -1.58% to USD$68.65/bbl with the Brent-WTI spread little changed USD$0.25 to USD$10.71/bbl
  • Gold is up 0.3% to USD$1225.96/oz

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

S&P 500 Sector ETFs - End of Day

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

Russell 1000 Factor ETFs - End of Day

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

S&P 500 Movers

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Outperformers Sector Price 1D % Chg Volume
Genuine Parts Co Consumer Discretionary 101 5.97%                525,435
Alliance Data Systems Corp Information Technology 223 5.51%                298,948
Philip Morris International Inc Consumer Staples 87.5 3.50%            2,327,104
AutoZone Inc Consumer Discretionary 730 2.14%                112,532
Macy's Inc Consumer Discretionary 32.41 1.79%            1,663,067
 
Underperformers Sector Price 1D % Chg Volume
United Rentals Inc Industrials 118 -15.04%            1,460,466
Textron Inc Industrials 57.5 -11.25%            1,866,317
Snap-on Inc Industrials 151 -9.61%                382,897
Sealed Air Corp Materials 32.4 -8.30%            1,103,752
Activision Blizzard Inc Communication Services 71.8 -8.29%            5,567,411