blog

Latest from the Quantamize Blog

Market at Midday: US stocks rally led by tech as Microsoft (MSFT), Tesla (TSLA) and Twitter (TWTR) deliver strong earnings

Oct 25, 2018

Start Your Free Trial Today

 

US Market Snapshot

  • US stocks are rallying today led by the tech sector as Microsoft (MSFT), Tesla (TSLA) and Twitter (TWTR) deliver strong earnings
  • The S&P 500 is currently up 1.64%, Nasdaq Composite is up 2.42%, and Russell 2000 is up 2.09%
  • Consumer Discretionary (+2.77%), Tech (+2.69%), and Telecom (+2.19%) stocks are the top performers in the S&P 500 today
  • Industrials (+0.51%), Consumer Staples (-0.2%), and Utilities (-1.44%) stocks are the worst performers in the S&P 500 today
  • Investor sentiment for US stocks is positive with the advance/decline ratio for the S&P 500 currently at 4.38x
  • 48 stocks in the S&P500 are at 4-week highs while 258 stocks are at 4-week lows
  • 7 stocks in the S&P 500 are overbought while 204 stocks are oversold according to the 16-day RSI Measure
  • 17 stocks in the Nasdaq Composite are at 4-week highs while 774 stocks are at 4-week lows
  • 59 stocks in the Nasdaq Composite are overbought while 1179 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently  moving down at 11.78 from yesterday's close of 25.23

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Advanced Micro Devices (AMD) reports revenues and EPS well below the Street causing the stock to tumble in post-market trading.  Advanced Micro Devices is guiding for flat C4Q revenues.  Advanced Micro Devices is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Info Tech Global Top Stock Ideas.
  • Altria Group (MO) reports C3Q results that are in-line with market forecasts and boosts it FY CY2018 guidance to USD$3.95-4.03 vs. Consensus of USD$3.99.  In addition, Altria announces it is pulling e-Cigarette flavors as the FDA cracks down on spiking teen use of e-Cigarettes.  Altria is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas. 
  • Comcast (CMCSA) reports C3Q E of USD$0.65, topping Street estimates on the back of better than expected net changes in internet users, +363k vs forecasts for +299k.  
  • Ford Motor Co. (F) will recall up to 1.5 million of its Focus models after discovering a defect involving a faulty fuel system. Focus models made between 2012 and 2018 may have a faulty canister purge valve that could get stuck in an open position and cause the car to stall. Ford stressed in a public statement that they are not aware of any accidents, injuries, or fires caused by the defect. Ford is rated “Neutral” in both our US Large-Cap and US Consumer Discretionary Global Top Stock Ideas.  
  • Franklin Resources (BEN) reports 3Q2018 EPS of $0.96 which blows past consensus EPS expectations of $0.74. Franklin Resources also announces the acquisition of Benefit Street Partners, an alternative credit manager. Franklin Resources’ management attributed $0.17 of its 3Q2018 EPS to tax reform enacted earlier in the year. Franklin Resources is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • Hershey (HSY) reports C3Q results which were in-line with market expectations.  Hershey reaffirmed its FY CY2018 guidance of USD$5.33-5.43.  Hershey management highlights that gross margins contracts with higher freight and shopping costs -- Gross margins dropped to 44% vs. 45.3% a year ago.  Hershey mentions it remains committed to growing higher-margin product business and uses its USD$420mm acquisition of Pirate’s Booty maker B&G Foods as an example of its commitment.  Hershey is rated a “Top Buy” in both our US Large-Cap Global Top Stock Ideas and our US Consumer Staples Global Top Stock Ideas. 
  • Laboratory Corporation (LH) was downgraded from buy to hold by Canaccord Genuity while its price target was lowered from $195/share to $162/share. Recently, Laboratory Corporation cut its FY2018 EPS guidance from $11.35-$11.65 to $11.25-$11.45. Laboratory Corporation is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas. 
  • Maple Leaf Foods Inc. (TSX: MFI) reports 3Q2018 earnings that missed expectations. Maple Leaf Foods’ top-line revenue fell 3.7% y/y to C$874.8mm, missing consensus which was at C$901.1mm. Maple Leaf Foods also missed on EPS, which was reported as C$0.29 compared to consensus of C$0.33. Maple Leaf Foods management attributed lower hog prices and high investments in its flagship brands as reasoning for the earnings miss. Maple Leaf Foods Inc. is not rated in our Global Top Stock Ideas.  
  • Merck (MRK) reports Adjusted C3Q EPS of USD$1.19 vs. Estimates of USD$1.14.  Merck management announces a share buyback plan of USD$10bn and boosts the quarterly dividend to USD$0.55 vs. estimates for USD$0.49.  Merck is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • Microsoft (MSFT) reports F1Q results which top estimates, though capex came in 4.8% below expectations.  Microsoft’s beat was driven by its cloud computing unit as revenue from Azure cloud computing services jumped 76% Y/Y.  Microsoft is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Info Tech Global Top Stock Ideas. 
  • Royal Caribbean Cruises (RCL) would be better served ignoring 3Q noises and focusing on the positive management commentary for CY2019 according Stifel analyst Steven Wieczynski.  Earlier this morning, Royal Caribbean Cruises reported C3Q results which were in-line with Street estimates and lower FY CY2018 guidance below Consensus (the upper range of FY CY2018 guidance is below the mean analyst estimate for CY2018).  Royal Caribbean Cruises is is rated “Neutral” in both our US Large-Cap and US Consumer Discretionary Global Top Stock Idea
  • Sherwin-Williams (SHW) announces 3Q2018 y/y revenue growth of 5% to $4,731.5mm which missed consensus estimates. Sherwin-Williams’ management also lowers 2018 adjusted EPS guidance from $19.05 to $19.20 per share. Management further detailed that 3Q2018 EPS was reduced by $0.16 per share due to costs to become the exclusive US supplier of interior and exterior paints for Lowe’s retail stores. Sherin-Williams is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.  
  • Southwest Airlines (LUV) reports C3Q results in-line with market expectations with better than expected revenues.  Southwest Airlines sees FY ASMS up close to 4%, slightly below Street forecasts.  Southwest Airlines is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and US Industrials Global Top Stock Ideas. 
  • Stanley Black & Decker (SWK) reports Adjusted 3Q EPS in-line with Street expectations though management lowers its FY CY2018 guidance below market estimates.  Stanley Black & Decker management announces a USD$250mm cost reduction program and an exclusive program with Home Depot (HD) where Home Depot will now be the exclusive home retailer for Stanley Black & Decker hand tools and store product portfolios starting in CY2019.  Stanley Black & Decker is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and US Industrials Global Top Stock Ideas. 
  • TAL Education (TAL) reports F2Q results which beat Street estimates but TAL Education’s guidance for F3Q weas lower than expected.  TAL Education announces of share buyback plan of USD$100mm.  TAL Education is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Tesla (TSLA) reports C3Q Adjusted EPS of USD$2.90, blowing out Street estimates of –USD$0.15.  C3Q Free Cash Flow came in at USD$881mm vs. Estimates of USD$2809mm.  According to Tesla management, Model 3 production averaged ~4,300 cars/week in C3Q.  Tesla is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Twitter (TWTR) reports C3Q results which crush Street estimates as revenues came in above the highest estimates.  The only negative from the quarter is a lower than expected Monthly Average User (MAU) count which was related to Twitter’s decision to clean out Spam accounts – MAUs dropped by 9 million users to 326 million MAUs, the second straight quarter with declines in aggregate MAUs.  Twitter is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Info Tech Global Top Stock Ideas.
  • Valero Energy (VLO) reports Adjusted C3Q EPS of USD$2.01, beating the highest estimate.  C3Q refinery utilization was 99% for C3Q.  Valero is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • Xilinix (XLNX) reports F2Q results which blows out forecasts for the period and raises FY guidance well above Street estimates.  Guidance for F3Q sales was raised above the highest market estimate for the same period.  Xilinix is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and US Info Tech Global Top Stock Ideas. 

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 2.43 basis points to 2.85%
  • US 5-Year Treasury Bonds are lower with yields up 3.51 basis points to 2.97%
  • US 10-Year Treasury Bonds are lower with yields up 2.45 basis points to 3.12%
  • The US Treasury 2s-5s Spread has widened 1.08 basis points to 0.12%
  • The US Treasury 2s-10s Spread has widened 0.02 basis points to 0.27%
  • US Treasury 5s-10s Spread has narrowed 1.06 basis points to 0.15%

Currencies

  • EUR€ is currently down 0.211% against the USD$ to 1.1368
  • GBP£ is currently down 0.497% against the USD$ to 1.2817
  • CHF is currently down 0.319% against the USD$ to 0.9989
  • JPY¥ is currently up 0.276% against the USD$ to 112.57

Commodities

  • WTI Crude is currently up 0.88% to USD$67.36/bbl with the Brent-WTI spread little changed USD$-0.07 to USD$8.76/bbl
  • Gold is currently down -0.31% to USD$1229.98/oz

 

*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

On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
Twitter Inc Communication Services 31.6 14.56%            7,195,408
Xilinx Inc Information Technology 79 14.50%            1,104,364
International Paper Co Materials 43.6 9.90%                533,265
Take-Two Interactive Software Inc Communication Services 120 8.48%                705,662
Ford Motor Co Consumer Discretionary 8.81 7.95%            8,546,366
 
Underformers Sector Price 1D % Chg Volume
Align Technology Inc Health Care 223 -23.25%            1,369,966
Equifax Inc Industrials 98.4 -14.84%                424,272
Advanced Micro Devices Inc Information Technology 19.6 -13.78%          28,933,572
EQT Corp Energy 35 -13.49%                581,806
ABIOMED Inc Health Care 328 -6.86%                262,112