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US stocks lower in morning trading with mixed earnings and slumping housing data weighing on sentiment

Oct 24, 2018

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US Market Snapshot

  • US stocks are lower in morning trading with mixed earnings results and weak housing data weighing on markets today
  • The S&P 500 is currently down 0.87%, Nasdaq Composite is down 1.12%, and Russell 2000 is down 1.04%
  • Utilities (+1.98%), Consumer Staples (+1.58%), and Real Estate (+1.57%) stocks are the top performers in the S&P 500 today
  • Materials (-1.2%), Tech (-1.23%), and Telecom (-1.93%) 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 0.49x
  • 14 stocks in the S&P500 are at 4-week highs while 263 stocks are at 4-week lows
  • 3 stocks in the S&P 500 are overbought while 118 stocks are oversold according to the 16-day RSI Measure
  • 25 stocks in the Nasdaq Composite are at 4-week highs while 470 stocks are at 4-week lows
  • 60 stocks in the Nasdaq Composite are overbought while 1083 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently  moving down at 11.78 from yesterday's close of 20.71
     

Stocks Trending in the News

Click name for more infiormation, Q-Factor score and latest price
 

  • Apple (AAPL) CEO Tim Cook took aim at other Silicon Valley players for their use of customer data.  The Apple CEO said other companies’ uses of data equate to “surveillance” as he expounded on the importance of privacy of data.  Apple’s CEO made the comments at an EU privacy conference in Brussels.  Apple is rated ‘Top Buy’ in our US Large-Cap Global Top Stock Ideas and ‘Attarctive’ in our US Information Technology Global Top Stock Ideas.
  • Bank of Montreal (TSX:BMO, ADR:BMO) announces plays to improving efficiency during its Investor Day presentation today.  Bank of Montreal management announcement plans to double its share of US capital markets over the next 5 years, double earnings from wealth management over the same period, and targets an efficiency ratio of 58% by CY2021.  Bank of Montreal is not rated in our Global Top Stock Ideas. 
  • Boston Scientific (BSX) cut its revenue forecast for the full year to USD$9.79-9.83 billion, down from USD$9.8-9.88 billion.  Boston Scientific also cut 4Q revenue guidance to USD$2.53-2.57 billion, down from USD$2.56-2.61 billion.  Boston Scientific full year EPS guidance of USD$1.38-1.40 up from USD$1.37-1.41 which matches consensus.  Boston Scientific is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas.
  • Check Point Software (CHKP) reports 3Q earnings which beat Consensus.  Check Point Software Management announced plans to acquire cloud security firm Dome09 - - deal terms were not released though Cloud Point Software management stated they paid USD$175mm in cash.  Cloud Point Software is not rated in our Global Top Stock Ideas.
  • DXC Technology (DXC) is plunging today after its Head of Americas left after drop in sales.  DXC Technology is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our Info Tech Top Stock Ideas. 
  • Freeport-McMoran (FCX) reports 3Q earnings which are slightly ahead of Street expectations.  While Freeport-McMoran management remains bullish on the outlook for copper prices (and global demand!), they help back on giving any guidance until there is better clarity on the ongoing trade dispute between the US and China.  As an example, Freeport-McMoran management sees a significant copper supply gap approaching in coming year.  Freeport-McMoran is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • General Dynamics (GD) reports 3Q earnings which disappointed against Street forecasts after its luxury jets and submarine sales lag for the period ending September 30.  General Dynamics management reports consolidated profit margins were constrained by higher costs associated with new product launches in its submarine businesses.  General Dynamics is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and in our Industrial Global Top Stock Ideas. 
  • Hilton (HLT) increased full year EPS guidance thought it is still a touch below expectations.  Hilton expects EPS of USD$2.67-2.72 for the full year up from  USD$2.64-2.71, in line with consensus.  Hilton sees 4Q RevPar growing 2-3% with adjusted ebitda in the range of USD$518-538mn.  Hilton 3Q revenue of USD$2.25 billion came below USD$2.4 billion expected.  Hilton is rated ‘Top Buy’ in our US Large-Cap and ‘Attractive’ in our US Consumer Discretionary Global Top Stock Ideas.
  • Lockheed Martin Corp’s (LMT) potential USD$15 billion sale of its Thaad missile defense system is at risk in the wake of the Jamal Khashoggi killing.  The Lockheed Martin Corp sale is part of a USD$110 billion package of arms the US intends to sell to Saudi Arabia.  Lockheed Martin Corp would see sales over a number of years if completed.  Lockheed Martin Corp is rated ‘Attractive’ in our US Large-Cap Global Top Stock Ideas and ‘Neutral’ in our US Industrials Global Top Stock Ideas. 
  • The Chinese government has announced plans to halt the approval process for new games licenses through a stopgap loophole called the green channel. This new restriction could negatively impact the growth of the USD$38bn online gaming market, include Tencent (SEHK:700, ADR: TCEHY) and Netease (NTES).  Tencent is rated “Top Buy” in our China All-Cap Global Top Stock Ideas and Netease (NTES) is rated “Neutral” in our China All-Cap Global Top Stock Ideas. 
  • Owens Corning (OC) reports 3Q earnings which disappoint as reported net sales missed the lowest Street estimate.  Owens Corning management cut CY2018 guidance for operating profit and now sees EBIT in-line with CY2019.  Owens Corning is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our Industrial Global Top Stock Ideas
  • Texas Instruments (TXN) warned that it is seeing waning demand across many of its markets.  Texas Instruments’ CFO warned, “we are heading into a softer market” on the company’s conference call.  Susquehanna wrote in a note that guidance from Texas Instruments “bodes poorly for the group: when commenting on the sector overall.  Texas Instruments is rated ‘Top Buy’ in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • WR Grace (GRA) reports adjusted 3Q earnings which beat analyst expectations and raised FY Adjusted EPS to USD$4.00-4.05 vs. previous guidance of USD$3.90-4.00.  Rumors continue to swirl that WR Grace remains a potential takeover target for Honeywell (HON).  WR Grace is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -2.02 basis points to 2.85%
  • US 5-Year Treasury Bonds are higher with yields down -4.47 basis points to 2.96%
  • US 10-Year Treasury Bonds are higher with yields down -3.96 basis points to 3.12%
  • The US Treasury 2s-5s Spread has narrowed 2.45 basis points to 0.11%
  • The US Treasury 2s-10s Spread has narrowed 1.94 basis points to 0.27%
  • US Treasury 5s-10s Spread has widened 0.51 basis points to 0.16%

Currencies

  • EUR€ is currently down 0.697% against the USD$ to 1.1391
  • GBP£ is currently down 0.655% against the USD$ to 1.2898
  • CHF is currently down 0.298% against the USD$ to 1.0021
  • JPY¥ is currently little changed against the USD$ at 112.58

Commodities

  • WTI Crude is currently up 1.33% to USD$67.21/bbl with the Brent-WTI spread up USD$0.39 to USD$9.77/bbl
  • Gold is currently little changed -0.09% to USD$1229.27/oz
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*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

S&P 500 Sector ETFs - Intraday

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

Russell 1000 Factor ETFs - Intraday

*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
Varian Medical Systems Inc Health Care 116 11.16%                124,621
Xerox Corp Information Technology 27.8 4.09%                418,919
DTE Energy Co Utilities 116 3.70%                144,411
Rollins Inc Industrials 58.3 3.37%                  82,967
Kimberly-Clark Corp Consumer Staples 107.21 2.95%                139,373
 
Underformers Sector Price 1D % Chg Volume
DXC Technology Co Information Technology 71.2 -18.34%                842,150
AT&T Inc Communication Services 30.9 -6.31%            9,735,252
Viacom Inc Communication Services 30.7 -6.24%                672,309
Garrett Motion Inc #N/A N/A 13.8 -5.99%                  41,620
General Dynamics Corp Industrials 177 -5.77%                237,388