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US stocks trading lower midday, with Apple's weak iPhone sales outlook weighing on markets despite strong jobs report this morning

Nov 02, 2018

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US Market Snapshot

  • US stocks trading lower midday led by tech sector as Apple's weak outlook weighs on markets despite strong jobs report today, with 250,000 added versus 188,000 expected
  • US stocks are trading lower at midday, led by tech sector as Apple's weak iphones sales outlook weighs on markets despite strong jobs report today
  • Change in Non-Farm Payrolls came in at +250k for the the month of October vs. market espectations fo r+200k and +134k for September
  • The S&P 500 is currently down 0.67%, Nasdaq Composite is down 1.06%, and Russell 2000 is down 0.02%
  • Consumer Discretionary (+0.17%), Industrials (-0.03%), and Energy (-0.2%) stocks are the top performers in the S&P 500 today
  • Utilities (-0.96%), Real Estate (-1.53%), and Tech (-2%) stocks are the worst performers in the S&P 500 today
  • Investor sentiment for US stocks is negative with the advance/decline ratio for the S&P 500 currently at 0.56x
  • 37 stocks in the S&P500 are at 4-week highs while 13 stocks are at 4-week lows
  • 3 stocks in the S&P 500 are overbought while 14 stocks are oversold according to the 16-day RSI Measure
  • 50 stocks in the Nasdaq Composite are at 4-week highs while 131 stocks are at 4-week lows
  • 237 stocks in the Nasdaq Composite are overbought while 162 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently  moving up at 20.32 from yesterday's close of 19.34
     

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • American Axle & Manufacturing Holdings, Inc. (AXL) shares are tanking after the company reported CY3Q2018 adjusted profit below analyst estimates and pulled-back its full-year guidance. American Axle lowered its FY2018 EBITDA margin guidance from between 17.5% and 17.75% to between 16.25% and 16.5%. American Axle’s CY3Q2018 adjusted EPS of USD$0.63 comes in well below consensus adjusted EPS estimates of USD$0.90. American Axle is rated "Neutral” in both our US SMID-Cap and US Consumer Discretionary Global Top Stock Ideas. 
  • Apple (AAPL) reported 3Q results that beat expectations but guidance that disappointed.  Following the disappointing guidance, Apple declined more that 5%.  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.  Notably Apple announced that in the future it will not report individual sales figures on iPhones, iPads and iMac sales.  Apple is rated “Attractive” in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Caesars Entertainment (CZR) reported an unexpected profit of 14 cents per share.  Caesars Entertainment was expected to report a 1 cent per share loss.  Caesars Entertainment reported revenue of USD$2.19 billion, in line with USD$2.21 billion expected.  Adjusted ebitdar was USD$600mn.  Caesars Entertainment is rated “Unattractive” in both our US Large-Cap and US Consumer Discretionary Global Top Stock ideas.
  • CBS Corp. (CBS) reported 3Q profit of USD$1.24 excluding some items versus USD$1.22 expected.  CSB saw a 19% jump in tv-show licensing and as sales at its entertainment unit.  CBS expects a surge in ad sales in the next quarter with up to USD$250mn in additional ad sales.  CBS is rated is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock ideas.
  • Kraft Heinz (KHC) reported 3Q adjusted EPS that missed estimates.  Kraft Heinz reported adjusted EPS of 78 cents while 81 cents was consensus.  Kraft Heinz net sales came at USD$6.38 billion, consensus was USD$6.31 billion.  Kraft Heinz saw higher costs weigh in results.  Kraft Heinz is rated is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock ideas.
  • Newell Brands Inc. (NWL) shares are trading higher today after the company announced FY2018 normalized EPS guidance of between USD$2.55/share and USD$2.75/share while consensus adjusted EPS estimates call for USD$2.09/share. Newell also reports FY3Q2018 EPS of USD$0.81/share while consensus estimates called for USD$0.67/share. Newell Brands is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Top Short” in our US Consumer Discretionary Global Top Stock Ideas.
  • Starbucks (SBUX) posted results that beat sales expectations in the US.  Starbucks sales in the Americas rose 4% versus 2.8% consensus.  Starbucks saw 1% growth in China.  Starbucks reported 4Q EPS of 62 cents while 60 cents was consensus.  Starbucks is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock ideas.
  • Weight Watchers (WTW) is seeing its stock plummet after reporting CY3Q2018 results that largely missed expectations. Weight Watchers reports CY3Q2018 revenue of USD$365.8mm while consensus revenue estimates called for USD$379.5mm. Weight Watchers also saw its end-of-period subscribers fall from 4.5mm in CY2Q2018 to 4.2mm in CY3Q2018. Weight Watchers is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Picks. 
     

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 4.87 basis points to 2.89%
  • US 5-Year Treasury Bonds are lower with yields up 6.31 basis points to 3.01%
  • US 10-Year Treasury Bonds are lower with yields up 6.47 basis points to 3.19%
  • The US Treasury 2s-5s Spread has widened 1.44 basis points to 0.13%
  • The US Treasury 2s-10s Spread has widened 1.6 basis points to 0.3%
  • US Treasury 5s-10s Spread has widened 0.16 basis points to 0.18%
     

Currencies

  • EUR€ is currently down 0.272% against the USD$ to 1.1377
  • GBP£ is currently down 0.4% against the USD$ to 1.296
  • CHF is currently down 0.15% against the USD$ to 0.9964
  • JPY¥ is currently up 0.435% against the USD$ to 113.21

Commodities

  • WTI Crude is currently down -0.47% to USD$63.39/bbl with the Brent-WTI spread up USD$0.53 to USD$8.72/bbl
  • Gold is currently little changed -0.2% to USD$1230.99/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
VeriSign Inc Information Technology 165 17.45%                619,202
Newell Brands Inc Consumer Discretionary 19 14.50%            1,948,110
Starbucks Corp Consumer Discretionary 64.5 9.94%            5,685,313
Symantec Corp Information Technology 20.34 8.65            2,157,912
Arista Networks Inc Information Technology 254.67 5.40                240,164
 
Underformers Sector Price 1D % Chg Volume
Synchrony Financial Financials 26.6 -9.00%            1,697,054
Kraft Heinz Co/The Consumer Staples 51.1 -8.95%            3,023,304
Apple Inc Information Technology 207 -6.63%          12,555,412
Garrett Motion Inc #N/A N/A 14.5 -6.48%                  89,671
EQT Corp Energy 32.6 -6.34%                271,490