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US stocks' early strength gives way to late day weakness as questionable growth outlook dominates investors thoughts

Oct 19, 2018

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US Markets End of Day Snapshot

 

  • US stocks' early strength gave way to late day weakness as questionable growth outlook dominated investors' thoughts and brought sellers
  • The S&P 500 is currently down 0.04%, Nasdaq Composite is down 0.48%, and Russell 2000 is down 1.2%
  • Consumer Staples (+2.31%), Utilities (+1.58%), and Real Estate (+1%) stocks are the top performers in the S&P 500 today
  • Energy (-0.82%), Consumer Discretionary (-0.89%), and Healthcare (-0.95%) stocks are the worst performers in the S&P 500 today
  • Investor sentiment for US stocks is negative with the advance/decline ratio for the S&P 500 currently at 0.85x
  • 14 stocks in the S&P500 are at 4-week highs while 102 stocks are at 4-week lows
  • 1 stock in the S&P 500 is overbought while 76 stocks are oversold according to the 16-day RSI Measure
  • 29 stocks in the Nasdaq Composite are at 4-week highs while 312 stocks are at 4-week lows
  • 103 stocks in the Nasdaq Composite are overbought while 440 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 19.89 from yesterday's close of 20.06

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • American Express (AXP) beat on 3Q results and upped full year guidance.  American Express reported 3Q EPS of USD$1.88, a touch above consensus with revenue of USD$10.14 billion versus USD$10.07 billion consensus.  American Express hiked full-year EPS guidance to USD$7.30-7.40 from USD$6.90-7.30  American Express closed 3.8% higher at $106.73.  American Express is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas.
  • Apple (AAPL) will unveil new products on October 30th in Brooklyn according to a press release.  Apple will likely unveil new iPads and Mac computers, analysts have commented.  Apple will probably release an updated iPad Pro, a lower cost MacBook laptop, and new Mac mini desktop.   Apple closed 1.5% higher at $219.31.  Apple is rated ‘Top Buy’ in our US Large-Cap Global Top Stock Ideas and rated ‘Attractive’ in our US Information Technology Global Top Stock Ideas.
  • Citizens Financial Group (CFG) reported 3Q results that beat expectations.  Citizens Financial Group 3Q adjusted EPS came at 93 cents, above 90 expected.   Citizens Financial Group saw 3Q revenue of USD$1.56 billion, matching estimates with USD$416mm of non-interest income.   Net charge-off for Citizens Financial Group came at USD$86mm, a touch above USD$82.9mm expected.  Citizens Financial Group closed 4.1% higher at $36.37.  Citizens Financial Group is rated ‘Attractive’  in our US Large-Cap Global Top Stock Ideas.
  • Daimler (DAI GR) closed 1.9% lower at 51.40 euros after announcing that earnings this year will be “significantly” lower than the market is expecting.  Daimler did not give details with its announcement just a general statement which drew criticism from many.  Daimler’s announcement included “an annoying lack of disclosure” according to Jefferies.   Local broker Bankhaus Metzler called Daimler’s warning “disastrous”.  Daimler is rated ‘Unattractive’ in our European Large-Cap Global Top Stock Ideas.
  • Disney (DIS) was upgraded today at Barclays to overweight from equal weight.  Disney saw its price target hiked to $130 from $105 as well.  Barclays said Disney is “likely to become a core holding again”.  Barclays believes Disney’s investor day could be a catalyst for a move higher.  Disney closed 2.3% higher at $118.90.  Disney is rated ‘Attractive’ in our US Large-Cap Global Top Stock Ideas and ‘Top Buy’ in our US Consumer Discretionary Global Top Stock Ideas.
  • DowDupont (DWDP) closed 1.9% lower at $57.49 after taking a USD$4.6 billion charge after it cut the value of its agriculture unit, according to a regulatory filing.  DowDupont expects less planting than before and this was cited as one of the primary reasons for the charge.  DowDupont is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas
  • Facebook (FB) has banned over 100,00 accounts from its WhatsApp messaging service as Facebook tries to contain what Bloomberg calls “political shenanigans”.   Facebook is trying to remove misinformation from its network in Brazil ahead of the second round of the Brazilian presidential election on October 28th.   Amid complaints from some, Facebook said it is committed to enforcing its rules equally on all.  Facebook closed 0.26% lower at $154.45.  Facebook is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas and ‘Attractive’ in our US Information Technology Global Top Stock Ideas.
  • Honeywell (HON) delivered 3Q sales of USD$10.76 billion matching consensus.  Honeywell saw 3Q EPS come at USD$3.11, also matching consensus.  Honeywell lowered full-year guidance on revenue to USD$41.7-41.8 billion, down from USD$43.1-43.6 billion.  Honeywell closed 1.1% lower at $153.47.  Honeywell is rated ‘Neutral’ in our US Large-Cap and US Industrials Global Top Stock Ideas.
  • InterContinental Hotels Group (IHG LN) delivered 3Q results below expectations, with softer revenue trends.  InterContinental Hotels Group saw comparable RevPAR growth of 1%, below consensus with year to date RevPAR growth of 2.7%.  InterContinental Hotels Group announced it is returning USD$500mm to shareholders via a special dividend.  InterContinental Hotels Group is rated ‘Attractive’ in our United Kingdom All-Cap Global Top Stock Ideas.
  • Lufthansa (LHA) closed 4.8% lower at 17.95 euros after it was downgraded in a note from MainFirst Bank.  Lufthansa was downgraded to neutral from outperform given its weaker outlook, according to the note.  Lufthansa had its price target slashed to 20 euros from 30 as well.  Lufthansa is rated ‘Neutral’ in our European Large-Cap Global Top Stock Ideas.
  • Michelin (ML FP) closed down 11.28% to 87.74 euros after issuing a warning about declining volumes in Europe and China.  Michelin said new emissions rules in Europe and slow car sales in China, dampening its sales outlook.  Michelin expects sales to fall in the second half of the year given those developments.   Michelin beat 3Q expectations, but all focus is on its sales warning.  Michelin is rated ‘Unattractive’ in our European Large-Cap Global Top Stock Ideas.
  • Nestle (NESN SW) is in talks with advisors about the potential sale of its skincare division according to a report in Bloomberg today.  Nestle could see proceeds of USD$8-10 billion according to the report.  Discussions are in early stages, it goes on, and interest could come from multi-nationals or private equity firms.  Nestle closed 3.1% higher at  82.04 francs.  Nestle is rated ‘Neutral’ in our European Large-Cap Global Top Stock Ideas.
  • PayPal (PYPL) reported 3Q results that exceeded analysts’ expectations.  PayPal reported adjusted EPS of 58 cents, beating the 54 cents consensus.  PayPal hiked 4Q revenue expectation to USD$4.2-4.28 billion, matching consensus estimates.  PayPal also said it is making progress on monetizing its Venmo mobile payment service.  PayPal closed 9.4% higher at $84.78.  PayPal is rated ‘Unattractive’ in our US Large-Cap Global Top Stock Ideas.
  • Schlumberger (SLB) reported disappointing 3Q results, missing on revenue expectations.  Schlumberger said the global recovery in oil has yet to translate to a higher bottom line for it, though Schlumberger sees a continued overall improving trend in its businesses.  Schlumberger warned that investors will have to wait longer for those improvements to deliver higher results.  Schlumberger closed flat at $58.47.  Schlumberger is rated “Unattractive’ in our US Large-Cap Global Top Stock Ideas. 
  • State Street (STT) reported 3Q results that were generally in line with consensus.   State Street delivered net interest margin of 1.48% while 1.47% was expected while State Street’s 3Q EPS of USD$1.87 was in line with USD$1.88 expected.  State Street has USD$2.81 trillion in assets under management.  State Street closed 1.1% lower at $72.90.  State Street is rated ‘Unattractive’ in our US Large-Cap Global Top Stock Ideas.  
  • Tencent (700 HK) backed iCarbonX has hired Goldman Sachs banker Shawn Lee to be its CFO.  Tencent backed iCarbonX is seeking to help people use their genetic data to generate recommendations for diet medicine for them.  iCarbonX has raised USD$100mm in financing, including from Tencent.  Tencent closed 0.36% higher at HKD$282.  Tencent is rated ‘Attractive’ in our China All-Cap Global Top Stock Ideas.
  • VF Corp (VFC) reported 3Q earnings above expectations, with EPS of USD$1.43 coming above USD$1.33 consensus and beating the highest estimate in the market.  VF Corp also lifted its full year's guidance, upping EPS guidance to USD$3.65 from originally USD$3.52-3.57.  VF Corp closed 10.7% lower at $77.76.  VF Corp is rated ‘Neutral’ in both our US Large-Cap and US Consumer Discretionary Global Top Stock Ideas. 
  • Volvo AB (VOLVB SS) reported mixed 3Q results and the stock closed 2.19% lower at 133.85krona.  Volvo AB sees strong demand in North America that it expects to continue into 2019, offsetting weakening demand in Europe.   Volvo’s return on sale came at 11.1%, above its 10% target and up from 9.1%.  Volvo is rated ‘Neutral’ in our European Large-Cap Global Top Stock Ideas.

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 2.97 basis points to 2.90%
  • US 5-Year Treasury Bonds are lower with yields up 2.08 basis points to 3.04%
  • US 10-Year Treasury Bonds are lower with yields up 1.53 basis points to 3.19%
  • The US Treasury 2s-5s Spread has narrowed 0.89 basis points to 0.14%
  • The US Treasury 2s-10s Spread has narrowed 1.44 basis points to 0.29%
  • US Treasury 5s-10s Spread has narrowed 0.55 basis points to 0.15%

Currencies

  • EUR€ is currently up 0.559% against the USD$ to 1.1517
  • GBP£ is currently up 0.399% against the USD$ to 1.307
  • CHF is currently little changed against the USD$ at 1.0043
  • JPY¥ is currently up 0.303% against the USD$ to 112.55

Commodities

  • WTI Crude is currently up 0.68% to USD$69.12/bbl with the Brent-WTI spread little changed USD$0.13 to USD$10.89/bbl
  • Gold is currently little changed 0.07% to USD$1226.66/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
Interpublic Group of Cos Inc/The Communication Services 24.7 9.65%            2,745,846
PayPal Holdings Inc Information Technology 84.8 9.42%            8,527,299
Procter & Gamble Co/The Consumer Staples 87.3 8.80%            7,494,276
Synchrony Financial Financials 31.4 5.80%            2,332,459
CenturyLink Inc Communication Services 21.99 4.52%            3,217,902
 
Underformers Sector Price 1D % Chg Volume
Advanced Micro Devices Inc Information Technology 23.7 -11.12%          25,898,118
VF Corp Consumer Discretionary 77.8 -10.71%            1,684,055
Valero Energy Corp Energy 92.8 -10.28%            2,603,759
eBay Inc Consumer Discretionary 28.8 -8.87%            9,151,191
State Street Corp Financials 72.9 -8.53%            1,971,885