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US stocks mixed midday, earlier strength gives way to Nasdaq losses and S&P 500 maintains tepid gains

Oct 29, 2018

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US Market Snapshot

  • US stocks open the day higher, lose strength through the morning and midday. Nasdaq is flat with S&P 500 maintaining tepid gains
  • The S&P 500 is currently up 1.25%, Nasdaq Composite is up 0.11%, and Russell 2000 is up 1.7%
  • Financials (+1.97%), Real Estate (+1.4%), and Consumer Staples (+1.38%) stocks are the top performers in the S&P 500 today
  • Tech (+0.17%), Telecom (+0.16%), and Consumer Discretionary (+0.09%) 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 10.11x
  • 6 stocks in the S&P500 are at 4-week highs while 236 stocks are at 4-week lows
  • 0 stocks in the S&P 500 are overbought while 156 stocks are oversold according to the 16-day RSI Measure
  • 27 stocks in the Nasdaq Composite are at 4-week highs while 492 stocks are at 4-week lows
  • 47 stocks in the Nasdaq Composite are overbought while 899 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving up at 24.21 from yesterday's close of 24.16

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Apple (AAPL) is reinitiated as “Buy” at Jefferies with a price target of USD$265, implying an additional 23% upside from current price levels.  At the moment, Apple has 30 buys, 16 holds and 2 sells across different Street analysts.  Apple is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Info Tech Global Top Stock Ideas. 
  • Denbury Resources Inc. (DNR) will acquire Penn Virginia Corporation (PVAC), a Houston-based oil producer, for USD$1.2bn. The new acquisition will enable Denbury to deploy enhanced oil recovery techniques, which allow oil and gas to be extracted from old oil fields. Denbury is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. Penn Virginia is rate “Top Short” in our US SMID-Cap Global Top Stock Ideas.  
  • Dicerna Pharmaceuticals, Inc. (DRNA) and Eli Lilly (LLY) are beginning a, “broad strategic partnership,” that will see Dicerna pay USD$100mm for use of Eli Lilly’s RNAi platform. According to Stifel, the partnership will see Eli Lilly yield an additional USD$2/share of additional cash. Dicerna is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas. Eli Lilly is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • First Data Corporation (FDC) reports CY3Q2018 free cash flow of USD$370mm, surpassing analyst expectations of USD$444mm. Although it surpassed expectations, First Data’s free cash flow was impacted severely by FX price concessions on contract renewals, onboarding costs, and non-recurring software revenue. First Data shares are trading lower on generally weak earnings while SunTrust is recommending that investors buy into First Data’s weakens. First Data is rated “Attractive” in our US Information Technology Global Top Stock Ideas and “Neutral” in our US Large-Cap Global Top Stock Ideas.  
  • Red Hat (RHT) is set to be acquired by IBM (IBM) in a USD$33 billion takeover, the second-largest technology deal ever.  The deal is an all cash deal.  IBM hopes the acquisition of Red Hat helps it catch up with cloud computing market leaders Amazon (AMZN) and Microsoft (MSFT).  Red Hat is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Info Tech Global Top Stock Ideas.  IBM is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Info Tech Global Top Stock Ideas.
  • ON Semiconductor Corporation (ON) announces CY3Q2018 revenue of USD1.54bn that beats consensus estimates of USD$1.51bn. ON Semiconductor’s management adjusted CU4Q2018 revenue guidance to between USD$1.48bn and USD$1.53bn from between USD$1.43bn and USD$1.51bn. ON Semiconductor is rated “Top Buy” in our US Information Technology Global Top Stock Ideas and “Attractive” in our US Large-Cap Global Top Stock Ideas.  
  • Sony’s (TSE:6758, ADR:SNE) Playstation 4 (PS4) unit is enjoying an unusually strong product cycle, selling more than 4 times the number of consoles than Microsoft’s XBOX One.  Sony’s position in the console gaming industry should help the company weather the upcoming shift to cloud gaming, where games are delivered via a cloud console, rather than on a local piece of hardware.  Sony PS4 has sold 84 million units vs. 39 million units for the Microsoft XBOX One as a point of reference.  Sony is rated “Neutral” in our Japan Large-Cap Global Top Stock Ideas.
  • Tencent (SEHK:700, ADR:TCEHY) subsidiary Futu Securities, an online brokerage focused on Chinese and Hong Kong investors which filed from an IPO last week, is seeing more competition in public markets after Tiger Brokers, a Chinese online brokerage backed by Jim Rogers, has announced a USD$200mm IPO.  Tencent is rated “Attractive” in our China All-Cap Global Top Stock Ideas.

 

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 2.03 basis points to 2.8265%
  • US 5-Year Treasury Bonds are lower with yields up 2.71 basis points to 2.9342%
  • US 10-Year Treasury Bonds are lower with yields up 2.26 basis points to 3.0981%
  • The US Treasury 2s-5s Spread has widened 0.68 basis points to 0.11%
  • The US Treasury 2s-10s Spread has widened 0.23 basis points to 0.27%
  • US Treasury 5s-10s Spread has narrowed 0.45 basis points to 0.16%

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1394
  • GBP£ is currently little changed against the USD$ at 1.2809
  • CHF is currently down 0.319% against the USD$ to 0.9997
  • JPY¥ is currently up 0.509% against the USD$ to 112.48

Commodities

  • WTI Crude is currently down -0.38% to USD$67.33/bbl with the Brent-WTI spread little changed USD$0.07 to USD$9.69/bbl
  • Gold is currently little changed -0.24% to USD$1230.58/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

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Outperformers Sector Price 1D % Chg Volume
Red Hat Inc Information Technology 170 45.46%            1,707,247
BorgWarner Inc Consumer Discretionary 41 7.78%                235,304
Goodyear Tire & Rubber Co/The Consumer Discretionary 21.6 6.10%                656,374
Aptiv PLC Consumer Discretionary 78.1 5.97%                213,654
Macy's Inc Consumer Discretionary 34.22 5.68%                460,257
 
Underformers Sector Price 1D % Chg Volume
Take-Two Interactive Software Inc Communication Services 114 -4.64%                407,443
Harris Corp Industrials 155 -3.38%                  50,312
DXC Technology Co Information Technology 70.8 -3.27%                165,247
L3 Technologies Inc Industrials 198 -3.18%                  49,031
Electronic Arts Inc Communication Services 93.5 -2.79%                768,025