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US stocks close mixed, FANGs propel Nasdaq higher though most other stocks finish lower, led by financials

Oct 22, 2018

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US Markets End of Day Snapshot

  • US stocks closed mixed with the FANGs propelling the Nasdaq higher while most other stocks finished lower
  • The S&P 500 finished down 0.43%, Nasdaq Composite up 0.26%, and Russell 2000 is down 0.16%
  • Tech (+0.81%), Consumer Discretionary (+0.48%), and Telecom (-0.04%) stocks were the top performers in the S&P 500 today
  • Energy (-1.1%), Real Estate (-1.42%), and Financials (-2.06%) 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 0.47x
  • 29 stocks in the S&P 500 hit 4-week highs while 115 stocks reached 4-week lows
  • 3 stocks in the S&P 500 closed overbought while 94 stocks closed oversold according to the 16-day RSI Measure
  • 26 stocks in the Nasdaq Composite hit 4-week highs while 401 stocks reached 4-week lows
  • 88 stocks in the Nasdaq Composite closed overbought while 645 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed down -0.25 points today  to 19.64 after closing at 19.89 last week
     

Stocks Trending in the News

Click name for Q-Factor rating and financials data.

  • Advanced Micro Devices (AMD) is trading 6.4% higher at $25.10 in the wake of an upgrade at BMO Capital and UBS.  BMO Capital raised Advanced Micro Devices’ price target to $20 from $14 while UBS raised Advanced Micro Devices’ price target to $25 from $17.  In both upgrades, Advanced Micro Devices was praised for the execution of its product rollouts and strategy while highlighting challenges ahead for the industry as a whole.  Advanced Micro Devices is rated ‘Unattractive’ in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • CNOOC (883 HK) and Total (FP FP) have extended their LNG supply agreement.  CNOOC and Total increased the total amount of the contract to 1.5 million tons per annum, up from 1 million.  CNOOC  and Total extended the contract to 20 years.  CNOOC closed 3.3% higher at HKD$14.54, Total closed 1.4% lower at 52.08 euros.  CNOOC is rated ‘Top Buy’ in our China All-Cap Global Top Stock Ideas, Total is rated ‘Attractive’ in our European Large-Cap Global Top Stock Ideas.
  • CropEnergies (CE2 GR) cut its forecast for operating profit for the full year to 15-35 million euros, down from 25-55 million euros.  CropEnergies now expects full-year revenue of 750-780 million euros, down from 810-860 million euros.  CropEnergies issued a profit warning, saying “due to difficult market conditions, CropEnergies will halt production in its plant in Wilton, UK from the end of November 2018 on.”  CropEnergies closed 6.5% lower at 4.19 euros.  CropEnergies is not rated in our Global Top Stock Ideas.
  • Daimler (DAI GR) had its price downgraded today at Bankhaus Metzler to 48 euros from 52 euros while reiterating its sell rating on Daimler in a note published today.  Daimler “has often delivered too little earnings momentum” according to the note and the profit warning from Friday was cited as evidence.  Daimler's 6% operating profit at Mercedes-Benz “disappointed”, the note went on to explain.  Daimler closed 1.4% lower at 50.81 euros.  Daimler is rated ‘Unattractive’ in our European Large-Cap Global Top Stock Ideas.
  • Fiat Chrysler (FCAU) sold its car parts unit, Magnetti Marelli to Japan’s Calsonic Kansei, owned by KKR (KKR) in a USD$7.1 billion deal.  This is the first deal for Fiat Chrysler’s new CEO and will create a parts maker with USD$17 billion in sales.  Fiat Chrysler shares closed 3.74% higher to $16.09.  KKR closed 1% lower at $23.91.  Fiat Chrysler is not rated in our Global Top Stock Ideas.  KKR is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas.
  • Halliburton (HAL) reported 3Q results a touch above expectations.   Halliburton reported 3Q revenue of USD$6.17 billion with USD$6.11 expected.  Halliburton’s 3Q operating income came at USD$716mm while USD$696mm was expected.  Halliburton said while 3Q was decent, 2019 should be “better”.  Halliburton is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas.
  • Hasbro (HAS) delivered 3Q results that missed even the lowest estimate.  Hasbro saw 3Q adjusted EPS come at USD$1.93 while consensus was for USD$2.24, non-adjusted EPS came at USD$2.06.  Hasbro revenue came well below at USD$1.57 billion, USD$1.7 billion was expected.  Hasbro saw franchise brands revenue fall 5% and partner brands fall 37%.  Hasbro closed 2.5% lower at $95.59.  Hasbro is rated ‘Unattractive’ in our US Large-Cap Global Top Stock Ideas and ‘Neutral’ in our US Consumer Discretionary Global Top Stock Ideas.
  • Jacobs Engineering Group (JEC) has agreed to sell its chemicals and resource unit to WorleyParsons Ltd. (WOR AU) in a USD$3.3 billion deal.  Jacobs Engineering Group will receive USD$2.6 billion in cash and USD$700mn in shares valued at roughly 11% of WorleyParsons Ltd.  Jacobs Engineering Group is divesting the unit so it can focus on higher margin products.  WorleyParsons Ltd. Has seen its shares halted from trading given the news.  Jacobs Engineering Group closed 6.8% higher at $77.22  Jacobs Engineering Group is rated ‘Neutral’ in both our US Large-Cap Global Top Stock Ideas and US Industrials Global Top Stock Ideas.
  • Jet Airlines (JETIN IN) is reviewing its routes and planes used as part of its response to higher fuel prices.  Jet Airlines is replacing wide-body planes with five Boeing 737 Max planes.  Jet Airline is “right sizing’ ATR network to align capacity.   Jet Airlines expects 15% fuel savings with each new plane and it expects further network changes to come.  Jet Airlines fell 6.9% to close at 213.95 rupees.  Jet Airlines is not rated in our Global Top Stock Ideas
  • Kimberly-Clark (KMB) delivered 3Q EPS above consensus, with EPS coming at USD$1.71 while consensus was for USD$1.63.  Kimberly-Clark 3Q net revenue of USD$4.58 billion came a bit above USD$4.52 billion expected.  Kimberly-Clark full-year guidance for EPS of USD$6.60-6.80 is above the mid-point estimates of USD$6.64.  Kimberly-Clark sees full-year organic revenue growth of 1%.  Kimberly-Clark is trading 3.7% lower at $106.10.  Kimberly-Clark is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas and ‘Attractive’ in our US Consumer Staples Global Top Stock Ideas.
  • Linde (LIN GR) and Praxair (PX) won approval from the US Justice Department for their USD$46 billion merger.  Linde and Praxair together will create an international giant in industrial gases.  Linde and Praxair will each sell some assets and the combination will save USD$1.1-1.2 billion per year in expenses.  Linde closed 2.8% higher at $217.30.  Praxair closed 4.5% higher at $167.04.   Linde is rated ‘Top Buy’ in our European Large-Cap Global Top Stock Ideas, Praxair is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas.
  • Papa John’s International (PZZA) founder John Schnatter is asking the board of directors to remove the poison pill in place in the company’s shareholders’ rights plan.  Any shareholder is limited from owning more than 31% of Papa John’s International.  John Schnatter presently owns 30.9% of Papa John’s International and could make an attractive partner for an effort to take over or take the company private.  Papa John’s International has said its shareholder's rights plans are in the best interests of the company.  Papa John’s International closed 0.55% lower at $52.15.  Papa John’s International is rated ‘Unattractive’ in both our US Large-Cap and US Consumer Discretionary Global Top Stock Ideas.
  • Philips NV (PHIA NA) closed 8.69% to 31.73 euros after reporting weak 3Q results.  Philips NV said it will need to revamp its entire supply chain to limit the effects of a trade war and Brexit.  Philips NV will see 60 million euros shaved from earnings next year due to the trade war and Brexit.  Philips NV saw revenue grow 7% to 568 million euros while 584 million was expected.  Philips NV Hasbro is rated ‘Attractive’ in our European Large-Cap Global Top Stock Ideas.
  • Ryanair (RYA ID) shares closed 4.08% higher to 11.98 euros after weak earnings were not worse than some had feared.  Ryanair did not issue any fresh profit warnings with the results and as AJ Bell wrote in a note “life does not seem to be getting worse…”  Ryanair delivered it first decline in first half earnings in 5 years.  Ryanair also suspended further buybacks until there is a clear Brexit resolution.   Ryanair is rated ‘Top Short’ in our US Large-Cap Global Top Stock Ideas.

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 0.44 basis points to 2.90%
  • US 5-Year Treasury Bonds are lower with yields up 0.18 basis points to 3.04%
  • US 10-Year Treasury Bonds are lower with yields up 0.57 basis points to 3.19%
  • The US Treasury 2s-5s Spread has narrowed 0.26 basis points to 0.14%
  • The US Treasury 2s-10s Spread has widened 0.13 basis points to 0.29%
  • US Treasury 5s-10s Spread has widened 0.39 basis points to 0.15%

Currencies

  • EUR€ is down 0.408% against the USD$ in after hours to 1.1467
  • GBP£ is down 0.811% against the USD$ in after hours to 1.297
  • CHF is little changed 0.01% against the USD$ in after hours to 1.004
  • JPY¥ is up 0.222% against the USD$ in after hours to 112.8

Commodities

  • WTI Crude is little changed 0.07% to USD$69.17/bbl with the Brent-WTI spread down USD$-0.64 to USD$10.49/bbl
  • Gold is down -0.33% to USD$1222.44/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
Jacobs Engineering Group Inc Industrials 77.2 6.82%                650,288
Advanced Micro Devices Inc Information Technology 25 5.79%          23,500,489
Praxair Inc Materials 167 4.40%            1,242,132
Ralph Lauren Corp Consumer Discretionary 128 3.71%                264,143
NetApp Inc Information Technology 80.32 3.55%                976,996
 
Underperformers Sector Price 1D % Chg Volume
Nektar Therapeutics Health Care 39.89 -17.22%            6,222,958
SCANA Corp Utilities 36.4 -10.98%                588,386
Bristol-Myers Squibb Co Health Care 50.9 -6.30%            4,530,706
Synchrony Financial Financials 29.5 -6.03%            2,126,904
WestRock Co Materials 40.3 -5.20%            1,212,961