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US stocks close higher with tech again leading the gains, S&P 500 sees best 3 day gain in 2 years; solid earnings and easing trade tensions support optimism

Nov 01, 2018



 

US Markets End of Day Snapshot

  • US stocks closed higher with tech again leading the gains, S&P 500 sees the best 3 day gain in 2 years; solid earnings and easing trade tensions supported the optimism in today's session
  • The S&P 500 finished up 1.06%, Nasdaq Composite up 1.75%, and Russell 2000 up 2.22%
  • Materials (+3.02%), Consumer Discretionary (+2.23%), and Industrials (+1.72%) stocks were the top performers in the S&P 500 today
  • Financials (+0.45%), Telecom (+0.14%), and Utilities (-0.53%) 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 3.42x
  • 50 stocks in the S&P 500 hit 4-week highs while 12 stocks reached 4-week lows
  • 2 stocks in the S&P 500 closed overbought while 49 stocks closed oversold according to the 16-day RSI Measure
  • 37 stocks in the Nasdaq Composite hit 4-week highs while 273 stocks reached 4-week lows
  • 187 stocks in the Nasdaq Composite closed overbought while 270 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed  down -9.45 points today  to 11.78 after closing at 21.23 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Apple (AAPL) reported 3Q results that beat expectations.  Apple reported 4Q revenue of USD$62.9 billion while 61.44 billion was expected.  Apple’s 3Q EPS of USD$2.91 beat USD$2.78 expected.  Apple sold 46.9mn iPhones, 48.4mn was expected.  Apple 4Q outlook, however, has come at the low end of expectations.  Apple expects 4Q sales of iPhones, which included the key holiday season, to be 46.9mn units while the market is expecting 48.4mn.  Apple is rated “Attractive” in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Banco Bradesco (BBDC4) has been aggressively expanding its loan book this year ahead of the just completed presidential election.   Banco Bradesco was the only bank to expand its loan portfolio to large companies in Brazil in the 3Q according to an article in Bloomberg today.  The article goes on to highlight the USD$33 billion in mergers, acquisitions, stock sales and bond sales that were put on hold ahead of the election.  Banco Bradesco is well positioned to gain from excepted improvement in investment banking conditions with new, conservative president.  Banco Bradesco is rated “Attractive” in our Brazil All-Cap Global Top Stock Ideas.
  • BHP (BHP AU) will return a total of USD$10.4 billion to shareholders, the company announced.  BHP will buy back USD$5.2 billion in shares starting this month, buying shares off-market.  BHP will also return USD$5.2 as a special dividend as well, to be paid later.  BHP reaped USD$10.8 billion from sales of share assets and it is returning most to shareholders.  BHP  is rated “Neutral” In our Australia Large-Cap Global Top Stock Ideas.
  • Church & Dwight (CHD) reported 3Q EPS that beat expectations.  Church & Dwight 3Q EPS of 58 cents beat 54 cents expected.  Church & Dwight 3Q revenue of USD$1.04 billion was above USD$1.02 billion expected.  Church & Dwight affirmed full year EPS guidance of USD$2.28.  Church & Dwight is rated “Top Buy” in both our US Large-Cap and US Consumer Staples Global Top Stock Ideas.
  • DowDupont (DWDP) reported 3Q adjusted EPS of 74 cents while 71 cents was consensus.  DowDupont reaffirmed its full year profit forecast.   DowDupont raised its post-merger cost savings target to USD$3.6 billion, up USD$300mn.  DowDuPont is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Encana Corporation (TSX: ECA) has agreed to an all-stock deal to buy Newfield Exploration Company (NFX) for USD$5.5bn. Encana shareholders are reacting negatively to the acquisition as the company’s stock has fallen the most in intraday trading since the early 1980s. The pullback in Encana comes despite management’s promise of a 25% dividend hike and a USD$1.5bn share buyback plan. Encana Corporation is not rated in our Global Top Stock Ideas. Newfield Exploration Company is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.  
  • FitBit (FIT) shares soared today after the company reported a strong 3Q results.  FitBit saw revenue of USD$ 393.6mn handily top the consensus estimate of USD$381.2mn.    FitBit reaffirmed full year revenue guidance of USD$1.5 billion, present consensus is for USD$1.49 billion.  FitBit is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.
  • Hanesbrands (HBI) shares are falling after the company reported earnings that missed consensus analyst estimates. Hanesbrands announced CY3Q2018 sales of USD$1.85bn while analyst consensus called for USD$1.87bn. Hanesbrands offered FY2018 guidance, forecasting FY2018 EPS of between USD$1.69 and USSD$1.73 while consensus EPS forecasts calls for USD$1.74. Hanesbrands is rated “Neutral” in our US Consumer Discretionary Global Top Stock Ideas and “Unattractive” in our US Large-Cap Global Top Stock Ideas. 
  • Glanbia (ISE: GL9) shares are trading lower today after the company announced that its pricing declined 4.1% in the first three quarters of 2018. Glanbia management cited lower year-on-year dairy markets for the pricing decline. Glanbia also announced that its volume from wholly-owned continuing operations grew by 6.7%. Jefferies published a note on Glanbia, saying it expects, “such negative pricing to trouble the market.” Glanbia is rated “Top Buy” in our European SMID-Cap Global Top Stock Ideas. 
  • ING Groep (INGA NA) reported 3Q results that came above consensus.  ING Groep 3Q underlying pretax profit of 2.12mn euros, compared with guidance of 1.91 billion euros.  ING Groep net income of 776mn euros came well above 678mn expected.  ING Groep is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • Just Eat (LSE: JE) announces FY2018 guidance that falls slightly short of analyst forecasts. Just Eat forecasts FY2018 adjusted EBITDA at the lower end of between GBP165mm and GBP185mm while consensus analyst estimates call for GBP177.9mm. For FY3Q2018, Just Eat reports y/y group revenue growth of 41% to GBP195.3mm. Just Eat is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • MorphoSys (XTRA: MOR) shares are posting large gains after the company announced positive results of its L-Mind study in relapsed or refractory diffuse large B-cell lymphoma. Results of the study detail that the treatment’s objective response rate rose to 58Z% from 49% in December. 81 total patients have been involved in this study so far. MorphoSys is rated “Top Short” in our European SMID-Cap Global Top Stock Ideas.  
  • Novo Nordisk (NOVOB DC) reported 3Q results in line.  Novo Nordisk reported sales of 27.76 billion krona versus 27.78 krona expected.  Novo Nordisk increased sale growth guidance to 0-1% growth up from -2-0% growth.  Novo Nordisk expanded its share buyback program to 15 billion krona, up 1 billion krona.  Novo Nordisk is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.
  • NXP Semiconductors NV (NXPI) shares are rising after the company reports higher-than-expected CY3Q2018 earnings. NXP Semiconductors announces CY3Q2018 top-line revenue of USD$2.45bn while consensus revenue estimates called for USD$2.42bn. NXP Semiconductors offered CY4Q2018 revenue guidance of between USD$2.32bn and USDF$2.47bn while analyst estimates range between USD$2.28bn and USD$2.50bn. NXP Semiconductors is not rated in our Global Top Stock Ideas.  
  • New York Times Company (NYT) posted 3Q results above consensus with strong digital subscriber growth.  New York Times Company reported 3Q EPS of 15 cents while consensus was for 11 cents.  New York Times Company reported 203,000 new online paying subscribers in the 3Q and a 17% jump in digital advertising revenue.    New York Times Company total advertising revenue grew 7%.  New York Times Company is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Pfizer (PFE) was downgraded at BMO Capital Markets to market perform from outperform.  Pfizer’s price target was lowered to USD$46 from USD$47.  Pfizer is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Royal Dutch Shell (RDSA LN) reported 3Q results a touch below expectations.  Royal Dutch Shell reported CCS earnings of USD$5.62 billion, below consensus of USD$5.73 billion.  Royal Dutch Shell generated USD$12.1 billion in free cash from operations, above 11.2 billion expected.  Royal Dutch Shell said its next round of projects has a breakeven price of only USD$40 for oil.  Royal Dutch Shell is rated “Attractive” in both our European Large-Cap and United Kingdom All-Cap Global Top Stock Ideas.
  • Spotify (SPOT) disappointed with its 4Q guidance today.  Spotify now expects 4Q revenue of 1.35-1.55 billion euros, the midpoint is below consensus of 1.49 billion euros.  Spotify said margins are likely to be depressed going forward as increased spending on research and development will weigh on results.  Spotify shares were off sharply on the news.  Spotify is not rated in our Global Top Stock Ideas.
  • Wayfair (W) shares are spiraling after the company reported disappointing CY3Q2018 earnings that were worse than the lowest analyst estimate. Wayfair reports a CY3Q2018 adjusted loss per share of USD$1.28 while consensus forecasted a loss per share of USD$1.11 and the lowest analyst estimate forecasted a loss per share of USD$1.21. Despite weak bottom-line income, Wayfair exceeded CY3Q2018 revenue estimates of USD$1.67bn in reporting CY3Q2018 revenue of USD$1.71bn. Wayfair is rated “Neutral” in both our US Large-Cap and US Consumer Discretionary Global Top Stock Ideas.  

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -2.44 basis points to 2.84%
  • US 5-Year Treasury Bonds are higher with yields down -1.86 basis points to 2.95%
  • US 10-Year Treasury Bonds are higher with yields down -1.32 basis points to 3.13%
  • The US Treasury 2s-5s Spread has widened 0.58 basis points to 0.11%
  • The US Treasury 2s-10s Spread has widened 1.12 basis points to 0.29%
  • US Treasury 5s-10s Spread has widened 0.54 basis points to 0.17%

Currencies

  • EUR€ is up 0.857% against the USD$ in after hours to 1.1409
  • GBP£ is up 1.864% against the USD$ in after hours to 1.3004
  • CHF is up 0.615% against the USD$ in after hours to 0.9978
  • JPY¥ is down 0.274% against the USD$ in after hours to 112.63

Commodities

  • WTI Crude is down -2.48% to USD$63.69/bbl with the Brent-WTI spread little changed USD$0 to USD$8.34/bbl
  • Gold is up 1.52% to USD$1233.28/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
Newfield Exploration Co Energy 23.5 16.14%            4,749,483
Wynn Resorts Ltd Consumer Discretionary 113 11.96%            1,880,225
Advanced Micro Devices Inc Information Technology 20.2 11.04%          26,272,737
ABIOMED Inc Health Care 376.23 10.47%                483,032
Western Digital Corp Information Technology 47.08 9.31%            2,983,740
 
Underperformers Sector Price 1D % Chg Volume
Allstate Corp/The Financials 90 -6.01%                836,067
Fiserv Inc Information Technology 74.9 -5.54%            1,385,632
Hanesbrands Inc Consumer Discretionary 16.2 -5.48%            2,833,046
PerkinElmer Inc Health Care 81.8 -5.41%                515,861
General Electric Co Industrials 9.58 -5.15%          41,491,309