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US stocks rise today in volatile trading as a see-saw day of trading ends with a rally; all major stock indices close at least 1.5% higher

Oct 30, 2018

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US Markets End of Day Snapshot

  • US stock rise today in volatile trading with a see-saw day of trading ending in a rally; all stock indices close at least 1.5% higher
  • The S&P 500 finished up 1.57%, Nasdaq Composite up 1.58%, and Russell 2000 up 1.99%
  • Telecom (+2.49%), Energy (+2.3%), and Materials (+2.26%) stocks were the top performers in the S&P 500 today
  • Tech (+1.16%), Healthcare (+1.11%), and Utilities (+0.29%) stocks were the worst performers in the S&P 500 today
  • Investor sentiment for US stocks finished positive with the advance/decline ratio for the S&P 500 closing at 8.43x
  • 22 stocks in the S&P 500 hit 4-week highs while 162 stocks reached 4-week lows
  • 1 stock in the S&P 500 closed overbought while 138 stocks closed oversold according to the 16-day RSI Measure
  • 26 stocks in the Nasdaq Composite hit 4-week highs while 500 stocks reached 4-week lows
  • 92 stocks in the Nasdaq Composite closed overbought while 712 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed down -1.35 points today  to 23.35 after closing at 24.70 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Aixtron (DB: AIXA) shares are soaring after M.M. Warburg Investment Research upgraded Aixtron to buy from hold. Warburg Investment Research also raised Aixtron’s price target from 10.50 euros to 12 euros, representing a 16% increase from yesterday's close. Consensus price targets for Aixtron are for 12.90 euros. Aixtron is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.  
  • Allergan (AGN) reports CY3Q2018 earnings that beat analyst estimates, announcing quarterly adjusted EPS of USD$4.25/share while consensus estimates called for USD$4.05/share. Allergan’s top-line revenue slightly beat consensus estimates of USD$3.89bn, reporting CY3Q2018 revenue of USD$3.91bn. Allergan also upped its FY2018 adjusted EPS guidance from between USD$16.00 and USD$16.50 to between USD$16.20 and USD$16.60. Allergan is not rated in our Global Top Stock Ideas.  
  • Apple (AAPL) unveiled 2 new iPad Pro models with 11-inch and 12.9-inch screen sizes.  Apple’s new iPad Pros add a host of new features, including a faster processor, slimmer sides, upgraded camera, and facial recognition.   Apple introduced the new models at an event in Brooklyn today.  Apple is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • BP (BP LN) reported blow out results, well above expectations for 3Q, with net income of USD$3.84 billion, up from USD$1.87 billion a year ago.  Production at BP was flat while the reliability of its refineries was the highest in 15 years.  BP is rated “Neutral” in our UK All-Cap Global Top Stock Ideas.
  • Brinker International (EAT) announces mixed FY1Q2019 earnings, reporting quarterly EPS of USD$0.47 while analysts expected EPS of USD$0.45. Brinker International managed to grow top-line revenue in FY1Q2019 by 1.9% y/y to USD$753.8mm from USD$739.4mm last year. Brinker International’s operating margin fell 130 bps to 11.1% while operating income rose from 3.9% a year ago to 6.2% in FY1Q2019. Brinker is rated “Attractive” in our US Consumer Discretionary Global Top Stock Ideas and “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Chesapeake Energy Corporation (CHK) is agreeing to buy WildHorse Resource Development Corporation (WRD) for USD$2.27bn. As part of the acquisition, Chesapeake will assume WildHorse’s net debt of USD$930mm. In a statement announcing the acquisition, Chesapeake detailed that the purchase of WildHorse will enable the natural gas producer to double its oil production by 2020. Chesapeake and WildHorse are both rated “Top Short” in our US Large-Cap Global Top Stock Ideas.  
  • Coca-Cola (KO) announces earnings Tuesday morning that beat estimates, reporting CY3Q2018 adjusted EPS of USD$0.58 that surpasses consensus adjusted EPS expectations of USD$0.55. Coca-Cola's top-line revenue is reported as USD$8.25bn for CY3Q2018 while consensus revenue expectations called for USD$8.17bn. Double-digit growth in the company’s Coca-Cola Zero Sugar product drove net income growth of 30% y/y in CY3Q2018 for Coca-Cola. Coca-Cola is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.
  • Cognizant Technology (CTSH) reports CY4Q2018 guidance below analyst expectations, expecting CY4Q2018 revenue of between USD$4.09bn and USD$4.13bn while analysts expect CY4Q2018 revenue of USD$4.17bn. Cognizant also reports CY4Q2018 EPS guidance of USD$1.05/share while analysts expect USD$1.14/share. Cognizant declares a CY3Q2018 dividend of USD$0.20/share, representing a 1.16% dividend yield that falls in-line with historical dividends. Cognizant is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Geberit (SWX: GEBN) announces disappointing CY3Q2018 earnings, reporting total sales of 740.7mm swiss francs while consensus estimates called for revenue of 763.0mm swiss francs. Geberit pulled back its FY2018 organic growth forecasts to between 3% and 4% after the company’s sales declined 2.9% y/y in CY3Q2018. Geberit is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • General Electric (GE) is cutting its dividend to 1 cent per share from 12 cents per share while taking a USD$22 billion goodwill charge.  General Electric will reorganize its power unit into 2 units.  General Electric reported 3Q EPS of 14 cents while consensus was for 20 cents.  General Electric is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and ‘Neutral’ in our US Industrials Global Top Stock Ideas.   
  • Genmab A/S (CPSE: GEN) shares are trading higher after results from its cancer treatment trial showed an impressive 45% reduction in the risk of progression or death. Analysts at Citigroup said that the market had expected strong results from the trial, but the “strong efficacy” level is likely to boost sentiment further. Swedish Bank, Svenska Handelsbanken, is recommending that investors buy shares of Genmab. Genmab is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.  
  • Harley-Davidson (HOG) is recalling 178,000 motorcycles because a clutch problem can cause them to get stuck in gear.  Harley-Davidson said in papers filed with the National Highway Transportation Safety Administration that an internal fluid leak can cause the problem and potentially lead to a crash.  Harley-Davidson reports 5 crashes with no injuries related to this issue.  Harley-Davidson is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Lufthansa (LHA) is cutting expansion plans after 3Q results came below estimates.   Lufthansa plans to slow growth next year after buying jets this year from a rival.  Lufthansa will focus on profitability next year after integration challenges from acquiring a rival’s jets.  Lufthansa plans to cut capacity by 3.8% next year after an expected 8% during the winter.  Lufthansa is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Mastercard (MA) beat estimates when reporting 3Q results today.   Mastercard reported 3Q adjusted EPS of USD$1.78 compared with consensus of USD$1.68.  Mastercard delivered net revenue of USD$3.9 billion while USD$3.86 billion was expected.  Mastercard saw gross dollar volume up 13% with purchase volume up 15%.  Mastercard is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Microsoft (MSFT) is ordering chips from Xilinx (XLNX) for its Azure server now, replacing Intel (INTC) as the supplier of chips, according to a report from Bloomberg today.  Microsoft will use Xilinx chips as co-processors in more than half its Azure servers, Bloomberg reports.  The report goes on to say the deal between Microsoft and Xilinx has yet to be made public so neither has a comment on the report.  Microsoft is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  Xilinx is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  Intel is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Mondelez (MDLZ) announces FY3Q2018 adjusted earnings of USD$1.19 billion, equating to USD$0.81/share while consensus adjusted EPS called for USD$0.57. Despite beating adjusted EPS estimates, Mondelez’s FY3Q2018 revenue fell 3.5% y/y to USD$6.3bn, missing consensus revenue estimates by USD$20mm. Mondelez is rated “Neutral” in both our US Large-Cap and US Consumer Staples Global Top Stock Ideas.
  • Novozymes (CPSE: NZYMB) is being downgraded from hold to sell at Carnegie with its price target being lowered to 275 kroner from 305 kroner. The price target reduction represents a 12% decrease from Novozymes last close. Novozymes is rated “Top Buy” in our European SMID-Cap Global Top Stock Ideas. 
  • Pfizer (PFE) narrowed its full year guidance as its older drugs struggle.  Pfizer narrowed guidance even as beating 3Q estimates.  Pfizer now sees full year revenue of USD$53-53.7 billion, tighter than previous USD$53-55 billion.  Pfizer has returned USD$15 billion back to shareholders via dividends and share buybacks, with USD$3 billion more planned this year.  Pfizer is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Reckitt Benckiser Group (RB LN) saw USD$89.4mn cut from revenue in the 3Q due to a glitch in production at its infant formula facility in the Netherlands.  Reckitt Benckiser Group’s new CEO has been trying to turn around the company and the latest problem puts a huge kink in that effort.   Reckitt Benckiser Group is rated “Attractive” in our UK All-Cap Global Top Stock Ideas.
  • Take Two Interactive Software (TTWO) shares are largely higher after initial sales of its Red Dead Redemption 2 video game exceeded analyst expectations. Piper Jaffray forecasted Red Dead Redemption 2 to sell between USD$400mm and USD$500mm in its first three days -- Take Two blew past that figure, reporting sales of USD$725mm in the game’s first three days. Take Two is rated “Unattractive” in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Under Armour Inc. (UAA) is posting its largest intraday gain since October 2008 after reporting CY3Q2018 earnings that largely surpassed analyst expectations. Under Armour reports CY3Q2018 adjusted EPS of USD$025 while analyst consensus EPS estimates called for USD$0.13. Under Armour’s top-line revenue of USD$1.44bn in CY3Q2018 also beat consensus estimates of USD$1.32bn. Under Armour is rated “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas and “Top Short” in our US Large-Cap Global Top Stock Ideas.  
  • Volkswagen (VOW GR) reported 3Q results that beat expectations with results helped by its Porsche and Seat divisions.  Volkswagen 3Q operating profit of 3.51 billion euros came above consensus of 3.21 billion euros.  Volkswagen maintained full year guidance while many were expecting it to be cut, with Porsche strength powering those results.  Volkswagen is rated "Neutral" in our European Large-Cap Global Top Stock Ideas.
  • WellCare Health Plans (WCG) reports CY3Q2018 EPS of USD$2.70 that beats consensus EPS estimates of USD$2.93. WellCare’s CY3Q2018 revenue grew 15% y/y to USD$5.06bn, surpassing consensus revenue estimates by USD$10mm. WellCare is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 3.03 basis points to 2.84%
  • US 5-Year Treasury Bonds are lower with yields up 2.71 basis points to 2.94%
  • US 10-Year Treasury Bonds are lower with yields up 2.83 basis points to 3.11%
  • The US Treasury 2s-5s Spread has narrowed 0.32 basis points to 0.1%
  • The US Treasury 2s-10s Spread has narrowed 0.2 basis points to 0.27%
  • US Treasury 5s-10s Spread has widened 0.12 basis points to 0.17%
     

Currencies

  • EUR€ is down 0.237% against the USD$ in after hours to 1.1346
  • GBP£ is down 0.672% against the USD$ in after hours to 1.2707
  • CHF is down 0.311% against the USD$ in after hours to 0.9949
  • JPY¥ is up 0.534% against the USD$ in after hours to 112.97

Commodities

  • WTI Crude is down -1.28% to USD$66.18/bbl with the Brent-WTI spread little changed USD$0.23 to USD$9.33/bbl
  • Gold is down -0.46% to USD$1223.81/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
Under Armour Inc Class A Consumer Discretionary 23.2 27.71%            5,511,932
Under Armour Inc Class C Consumer Discretionary 21 24.75%            2,604,607
Vulcan Materials Co Materials 98.9 17.49%                908,497
Akamai Technologies Inc Information Technology 72.6 16.92%            2,461,404
Take-Two Interactive Software Inc Communication Services 124.01 11.01%            2,210,939
 
Underperformers Sector Price 1D % Chg Volume
FLIR Systems Inc Information Technology 46.4 -12.92%            1,149,583
General Electric Co Industrials 10.2 -8.78%          45,976,510
Allergan PLC Health Care 161 -7.55%            1,694,470
Ulta Beauty Inc Consumer Discretionary 267 -4.13%                501,059
Cognizant Technology Solutions Corp Information Technology 66.5 -3.90%            2,657,043