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US stocks tumble across the board, led by tech shares, with renewed trade war fears on reports of potential new China tariffs in early December

Oct 29, 2018

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US Markets End of Day Snapshot

  • US stocks tumbled across the board after earlier gains with tech shares leading losses; losses mounted after reports broke that the US may impose additional tariffs on China in early December 
  • The S&P 500 finished down 0.66%, Nasdaq Composite is down 1.63%, and Russell 2000 is down 0.44%
  • Real Estate (+1.56%), Utilities (+1.35%), and Consumer Staples (+1.07%) stocks were the top performers in the S&P 500 today
  • Industrials (-1.68%), Tech (-1.81%), and Energy (-1.88%) stocks were the worst performers in the S&P 500 today
  • Investor sentiment for US stocks finished neutral with the advance/decline ratio for the S&P 500 closing at 1.17x
  • 6 stocks in the S&P 500 hit 4-week highs while 236 stocks reached 4-week lows
  • 0 stocks in the S&P 500 closed overbought while 156 stocks closed oversold according to the 16-day RSI Measure
  • 27 stocks in the Nasdaq Composite hit 4-week highs while 492 stocks reached 4-week lows
  • 47 stocks in the Nasdaq Composite closed overbought while 899 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed up 0.54 points today to 24.70 after closing at 24.16 yesterday
     

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. 
  • Bankia SA (BME:BKIA) reports C3Q results with disappointing market forecasts as capital levels dropped more than expected.  While net income beat Consensus estimates by 1.1%, bad loans, as a ratio of the total loan book, came in it ~7.8% for the quarter.  Bankia is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas. 
  • BASF SE (DB:BAS) has its price target cut to 95 Euros from 105 Euros at Credit Suisse.  The investment bank keeps its “Outperform” rating for BASF SE but after the recent 3Q earnings missing, Credit Suisse remains concerned about the increasing challenges to the demand outlook for BASF SE.  BASF SE is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 
  • CCC Sa (WSE:CCC) reports C3Q results which missed earnings drops to a 2-year low as its footwear-store profitability dropped in C3Q.  C3Q results dropped to negative 41.7 million Zloty in comparison to Street expectations for a positive profit of 38.6 million Zloty.  CCC is rated “Neutral” in our European SMID-Cap 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. 
  • Electronic Arts (EA) was downgraded by KeyBanc Capital Markets to sector weight from overweight.  In the note, the bank discussed being wrong about Electronic Arts and being overly optimistic.  Electronic Arts saw its estimates lowered in what was described as a lack of visibility, and is unlikely to see valuation expansion near term, according to the report.  Electronic Arts is rated “Unattractive” in our US Large-Cap Global Top Picks and “Neutral” in our US Information Technology Global Top Picks.
  • Fabryki Mebli Forte SA (WSE: FTE) shares are plummeting after reporting 9% decline in EBITDA and a 37% drop off in EBIT, exacerbating concerns of a debt default. EBITDA margin tightened to 10.7% in CY3Q2018 after management promised to maintain EBITDA margin at the 15.4% level reported on in 2H2016. Fabryki Mebli Forte SA is not rated in our 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.  
  • Grifols SA (BME:GRF) popped today on news that is received positive results from Amba clinical tests, a new Alzheimer drug.  The tests conducted by Grifols included 496 mild and moderate Alzheimer patients.  However, a new phase 3 trial will be required to secure a regulatory approval.  BBVA upgrades Grifols to “Outperform” and boosts its price target to 27.51 Euros.  Grifols is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas. 
  • HSBC Holdings (LSE:HSBA) reports C3Q results which came in ahead of Street expectations.  Adjusted revenues grew 9% Y/Y in the quarter while costs only grew +2% Y/Y for HSBC in C3Q.  The improvement in top-line, combined with a continued focus on cost cutting is boost investor sentiment for the stock.  HSBC is rated “Unattractive” in our United Kingdom Global Top Stock Ideas.
  • Kroger (KR) lowered same store sales growth guidance for the full year on store remodeling work underway at over 1,000 stores.  Kroger expects results to be similar to the first half of 2018.  Kroger reaffirmed full-year EPS of USD$3.88-4.03.  Kroger also reaffirmed commitment to generate USD$6.5 billion of Restock free cash flow by 2020.  Kroger is rated “Unattractive” in our US Large-Cap Global Top Picks and "Neutral” in our US Consumer Staples Global Top Picks.
  • Northrop Grumman (NOC) suffered today with other defense names on reports there could be defense cuts in next year’s budget.  A report in Bloomberg cited sources indicating a potential USD$33 billion cut causing profit taking in Northrop Grumman, among others.  Northrop Grumman is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials 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.  
  • 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.
  • European auto stocks Volkswagen (XTRA:VOW3)Daimler AG (XTRA:DAI) and BMW(DB:BMW) are up on news that the National Development and Reform Commission, the top economic planning committee in China, is considering cutting the sales tax on new car purchases in half.  Volkswagen is rated “Neutral”, Daimler is rated “Unattractive, and BMW is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 1.22 basis points to 2.81%
  • US 5-Year Treasury Bonds are lower with yields up 1.35 basis points to 2.92%
  • US 10-Year Treasury Bonds are lower with yields up 1.13 basis points to 3.08%
  • The US Treasury 2s-5s Spread has widened 0.13 basis points to 0.1%
  • The US Treasury 2s-10s Spread has narrowed 0.09 basis points to 0.27%
  • US Treasury 5s-10s Spread has narrowed 0.22 basis points to 0.17

Currencies

  • EUR€ is little changed 0.079% against the USD$ in after hours to 1.1384
  • GBP£ is down 0.164% against the USD$ in after hours to 1.2803
  • CHF is down 0.439% against the USD$ in after hours to 0.9985
  • JPY¥ is up 0.366% against the USD$ in after hours to 112.32

Commodities

  • WTI Crude is down -0.81% to USD$67.04/bbl with the Brent-WTI spread little changed USD$-0.25 to USD$9.4/bbl
  • Gold is down -0.36% to USD$1229.13/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
Red Hat Inc Information Technology 170 45.38%            3,238,000
Cerner Corp Health Care 58.4 5.13%            2,048,000
Macy's Inc Consumer Discretionary 34 4.97%            1,927,851
BorgWarner Inc Consumer Discretionary 39.6 3.97%                719,444
Hormel Foods Corp Consumer Staples 42.68 3.67%                885,343
 
Underperformers Sector Price 1D % Chg Volume
L3 Technologies Inc Industrials 186 -8.83%                256,274
Harris Corp Industrials 147 -8.80%                352,440
Take-Two Interactive Software Inc Communication Services 112 -6.95%            1,333,888
Boeing Co/The Industrials 336 -6.59%            1,210,365
NVIDIA Corp Information Technology 186 -6.39%            5,566,142