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US stocks rallying midday on tech sector strength, though still on track for worst month since 2010

Oct 31, 2018

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US Market Snapshot

  • US stocks are rallying at midday with the tech sector leading the gains. Despite the rally, stocks are still on track for the worst month since 2010
  • The S&P 500 is currently up 1.26%, Nasdaq Composite is up 1.83%, and Russell 2000 is up 0.79%
  • Tech (+2.18%), Telecom (+1.79%), and Financials (+1.71%) stocks are the top performers in the S&P 500 today
  • Utilities (-0.67%), Real Estate (-0.68%), and Consumer Staples (-1.1%) 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 2.6x
  • 53 stocks in the S&P500 are at 4-week highs while 53 stocks are at 4-week lows
  • 8 stocks in the S&P 500 are overbought while 73 stocks are oversold according to the 16-day RSI Measure
  • 31 stocks in the Nasdaq Composite are at 4-week highs while 339 stocks are at 4-week lows
  • 105 stocks in the Nasdaq Composite are overbought while 493 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 22.16 from yesterday's close of 23.35

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Automatic Data Processing (ADP) reports FY1Q2019 revenue of USD$3.32bn that tops consensus estimates of USD$3.28bn. ADP also beat consensus FY1Q2019 EPS estimates, reporting quarterly EPS of USD$1.20 while consensus EPS estimates called for USD$1.11. ADP raised its FY2019 adjusted EPS growth guidance from between 13% and 15% to between 15% and 17%. ADP is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Baidu (BIDU) provided guidance that was below consensus.  Baidu expects revenue to come in 4Q 25.48-26.72 billion yuan.  Presently consensus is for 27.8 billion yuan.  3Q revenue of 28.2 billion yuan came above consensus.  Baidu is seeing a challenging ad environment as newcomers vie for a piece of Baidu’s ad business.  Baidu is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Clorox (CLX) reports FY1Q2019 earnings that surpass expectations, however, management cut FY2019 guidance. Clorox delivers FY1Q2019 total sales of USD$1.56bn that beat consensus revenue expectations of USD$1.54bn. Clorox management lowered its FY2019 EPS outlook from between USD$6.32 and USD$6.52 to between USD$6.20 and USD$6.40. Clorox is rated “Top Buy” in our US Consumer Staples Global Top Stock Ideas and “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Electronic Arts (EA) shares are sliding after management pulled-back FY2019 adjusted EPS guidance from USD4.85/share to USD$4.50/share. EA’s FY2Q2019 earnings were a different story, as the firm reported FY2Q2019 adjusted EPS of USD$0.88/share while consensus adjusted EPS estimates called for USD$0.58/share. EA’s FY2Q2019 top-line revenue of USD$1.22bn is slightly above consensus revenue estimates of USD$1.19bn. EA is rated “Neutral” in our US Information Technology Global Top Stock Ideas and “Unattractive” in our US Large-Cap Global Top Stock Ideas
  • Estee Lauder (EL) reports FY2Q2019 adjusted EPS guidance of between USD$1.47 and USD$1.50, missing the lowest analyst FY2Q2019 adjusted EPS estimates, which range between USD$1.56 and USD$1.74. Estee Lauder’s FY1Q2019 adjusted EPS of USD$1.47 largely exceeds consensus FY1Q2019 adjusted EPS forecasts, which called for USD$1.22/share. Estee Lauder also issues a dividend of USD$0.43/share and announces of a 40 million share repurchase plan. Estee Lauder is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Stapes Global Top Stock Ideas. 
  • Facebook (FB) reported 3Q results above expectations with revenue jumping 33% to USD$13.73 billion.  Facebook saw 2.27 billion monthly active users in 3Q.  3Q EPS of USD$1.76 came well above USD$1.47 expected.   Facebook outlined further focus on “stories” and videos via Instagram for the future as change roils the social network.  Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • General Motors Company (GM) shares are soaring after the company reported earnings pre-market that largely exceed analyst expectations. General Motors saw its CY3Q2018 adjusted profit rise to USD$1.87/share while consensus estimates forecasted USD$1.25/share.  General Motor’s quarterly revenue in CY3Q2018 grew 6.4% y/y to USD$35.8bn. General Motors’ earnings beat was driven largely by a 33% y/y increase in pretax profit to USD$2.8bn in the company’s North America region. General Motors is rated “Neutral” in our US Consumer Discretionary Global Top Stock Ideas and “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Intercontinental Exchange (ICE) announces CY3Q2018 adjusted EPS of USD$0.85/share that beat the highest analyst estimates, which ranged between USD$0.79/share and USD$0.81/share. Intercontinental Exchange’s CY3Q2018 operating income of USD602mm is well below analyst consensus forecasts of USD$674.2mm, however. Intercontinental Exchange is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Kellogg Company (K) is seeing its largest price drop in 18 years after the company slashed its profit forecast and announced a decline in its US snack foods business. Kellogg cut its adjusted EPS growth forecast for CY2018 to between 7% and 8% from a prior forecast of between 11% to 13%. Kellogg’s US snacks unit saw its sales fall 3.5% y/y in CY3Q2018 to USD$737mm. Kellogg is rated “Top Buy” in our US Consumer Stapes Global Top Stock Ideas and “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • Maxar Technologies (MAXR) shares are plummeting after the firm announced CY3Q2018 adjusted EPS of USD$0.75/share, missing consensus adjusted EPS estimates of USD$1.02 and falling short of the lowest analyst EPS estimate of USD$0.82. Maxar’s CY3Q2018 revenue of USD$508mm comes in well below consensus revenue estimates of USD$534.4mm. Maxar Technologies is not rated in our Global Top Stock Ideas.  
  • McDermott International, Inc. (MDR) shares are tanking after the company cut value forecasts for some projects, announced the sale of assets in order to reduce debt, and planned to sell USD$300mm in preferred stock. McDermott announced plans to sell USD$300mm of 12% preferred stock to investment funds managed by Goldman Sachs, the proceeds of which will be used for, “general corporate purposes.” McDermott also reported underwhelming CY3Q2018 profit while cutting the estimated value of its Cameron LNG, Freeport LNG, and Calpine projects by USD$744mm. McDermott is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  
  • Molson Coors Brewing Company (TAP) shares are trading higher after reporting strong quarterly earnings that were driven by strong international growth. Molson Coors reports CY3Q2018 underlying EPS of USD$1.84 while consensus EPS forecasts called for USD$1.60/share. Worldwide beer volume in CY3Q2018 increased by 25.3mm hectoliters while Molson Coors’ management upped its target cost saving for 2017-19 to USD$700mm from USD$600mm. Molson Coors is rated “Top Buy” in both our US Large-Cap and US Consumer Discretionary Global Top Stock Ideas.  
  • Qualcomm (QCOM) had its stock downgraded by Bank of America Merrill Lynch today.  Qualcomm lowered to neutral from buy.   Bank of America Merrill Lynch cut Qualcomm’s target to USD$70 from USD$75.  Qualcomm was downgraded ahead of earnings to be published November 7th.  Qualcomm is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • YUM! Brands, Inc. (YUM) announces CY3Q2018 adjusted EPS that blows past analyst estimates, reporting quarterly EPS of USD$1.04/share while consensus called for USD$0.85/share. Yum! Brands’ CY3Q2018 top-line revenue was in line with consensus estimates of USD$1.38bn with quarterly revenue of USD$1.39bn. Comparable y/y sales growth of 3% and 5% for KFC and Tacobell, respectively, were the largest drivers of Yum! Brands’ quarterly EPS beat. Yum! Brands is rated “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas and “Neutral” in our US Large-Cap Global Top Stock Ideas. 

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 1.62 basis points to 2.8669%
  • US 5-Year Treasury Bonds are lower with yields up 1.87 basis points to 2.9749%
  • US 10-Year Treasury Bonds are lower with yields up 1.7 basis points to 3.1397%
  • The US Treasury 2s-5s Spread has widened 0.25 basis points to 0.11%
  • The US Treasury 2s-10s Spread has widened 0.08 basis points to 0.27%
  • US Treasury 5s-10s Spread has narrowed 0.17 basis points to 0.16%

Currencies

  • EUR€ is currently down 0.229% against the USD$ to 1.1319
  • GBP£ is currently up 0.417% against the USD$ to 1.2759
  • CHF is currently down 0.201% against the USD$ to 0.9929
  • JPY¥ is currently down 0.194% against the USD$ to 112.91
     

Commodities

  • WTI Crude is currently little changed 0.09% to USD$66.24/bbl with the Brent-WTI spread down USD$-0.37 to USD$9.25/bbl
  • Gold is currently down -0.61% to USD$1215.44/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
FleetCor Technologies Inc Information Technology 201 8.28%                  90,774
HollyFrontier Corp Energy 68.5 8.13%                189,421
Molson Coors Brewing Co Consumer Staples 62.9 7.94%                412,334
General Motors Co Consumer Discretionary 35.93 7.22%            3,000,168
Varian Medical Systems Inc Health Care 119.94 6.89%                210,060
 
Underperformers Sector Price 1D % Chg Volume
Baxter International Inc Health Care 61.7 -10.25%                462,113
Kellogg Co Consumer Staples 66.1 -7.96%                396,124
Gilead Sciences Inc Health Care 68.2 -5.46%            1,478,436
IPG Photonics Corp Information Technology 134 -5.37%                171,365
General Mills Inc Consumer Staples 43.5 -4.40%                564,708