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US stocks close lower as conflicting messages on trade from US administration erase earlier gains, tech leads losses

Nov 02, 2018

 

 

US Markets End of Day Snapshot

  • US stocks closed lower today as conflicting messages from the US administration erased gains earlier in the session, tech led today's losses
  • The S&P 500 finished down 0.63%, Nasdaq Composite is down 1.04%, and Russell 2000 up 0.19%
  • Consumer Discretionary (+0.41%), Financials (+0.01%), and Energy (-0.11%) stocks were the top performers in the S&P 500 today
  • Telecom (-0.82%), Real Estate (-0.93%), and Tech (-1.89%) stocks were the worst performers in the S&P 500 today
  • Investor sentiment for US stocks finished negative with the advance/decline ratio for the S&P 500 closing at 0.66x
  • 37 stocks in the S&P 500 hit 4-week highs while 13 stocks reached 4-week lows
  • 3 stocks in the S&P 500 closed overbought while 14 stocks closed oversold according to the 16-day RSI Measure
  • 50 stocks in the Nasdaq Composite hit 4-week highs while 131 stocks reached 4-week lows
  • 237 stocks in the Nasdaq Composite closed overbought while 162 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed up 0.17 points today to 19.51 after closing at 19.34 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • AbbVie (ABBV) reported 3Q that beat expectations.  AbbVie 3Q EPS of USD$2.14 beat USD$2.02 consensus.  AbbVie 3Q revenue came at USD$8.24 billion, in line with USD$8.23 expected.  AbbVie 3Q adjusted gross margin of 81.7% came above 81% expected.  AbbVie increased its dividend payable in February to USD$1.07 per share, up from 96 cents.  AbbVie is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas. 
  • Alibaba Group Holding Limited (BABA) shares are trading higher after reporting earnings that largely beat analyst expectations. Alibaba delivers FY2Q2019 adjusted EPS of USD$1.40/share, beating consensus estimates of USD$1.06/share by 31%. Alibaba’s top-line revenue fell just short of analyst forecasts with FY2Q2019 revenue of USD$12.40bn while consensus forecasts called for USD$12.45bn. Alibaba management also pulled-back FY2019 revenue growth guidance by between 4% to 6%. Trump comments on a potential China-US trade resolution has put a further bid into Chinese stocks. Alibaba is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • 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.
  • Barclays Plc (LSE: BARC) announced that former Rothschild banker, Nigel Higgins, will succeed John McFarlane as Chairman of Barclay’s Board of Directors. McFarlane will step down from his position with Barclays at the company’s annual general meeting on May 2nd, 2019. Higgins appointment comes as Barclays is facing increased pressure from activist investor, Edward Bramson, who became one of the firm’s largest shareholders in March 2018. Barclays is rated “Neutral” in our United Kingdom All-Cap 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.
  • CBOE (CBOE) reported 3Q adjusted EPS of USD$1.06, beating USD$1.02 consensus.  CBOE has capital expenses of USD$420mn, a touch below the USD$428mn expected.  COBE 3Q operating revenue of USD$270.5mn while USD$271.8mn expected.   CBOE is rated “Top Buy” in our US Large-Cap 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.
  • Chevron (CVX) reported 3Q EPS of USD$2.11 with record production; USD$2.06 was consensus.  Chevron saw total worldwide production of 2.956 million barrels of oil per day, the highest in the history of the company.  Chevron’s record production together with high oil prices delivered a doubling of profit.  Chevron is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • General Electric (GE) fell for the 8th straight day with  a report published today by the firm Gordon Hackett highlighting the potential for considerably higher tax liabilities.   The report cites a possible USD$9 billion in taxes owed by General Electric under the Tax Cuts and Jobs Act.  If a number of the“offsets” that General Electric used are disallowed by tax authorities, its tax bill could ruise significantly.  General Electric is rated “Top Short” in our US Large Global Top Stock Ideas and “Unattractive” in our US Industrials 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.
  • NiSource (NI) posted a total of USD$460mm in charges related to the gas blast in the Boston area in September.  NiSource posted USD$415mn for third-party claims and USD$45 for other expenses related to the incident.  NiSource expects up to another USD$200mn in costs related to the explosion. NiSource is rated “Neutral” in our US Large Global Top Stock Ideas.
  • Rosneft (ROSN RS) may invite ExxonMobil (XOM) to participate in Far East project called Eastern Petrochemical according to a report in the local Russian press.  The report outlines a number of options, one of which is to offer ExxonMobil over 50% of the project, having ExxonMobil control, to avoid US sanctions.   Blomberg reports Russian officials mentioned in October that the 2 companies were talking.  ExxonMobil is rated “Neutral” in our US Large-Cap Global Top Stock Ideas, Rosneft is rated “Top Buy” in our European SMID-Cap 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.
  • Senvion S.A. (DB: SEN) shares are trading lower after the company cut its fiscal year guidance and forecasted its EBITDA margin to come in at the lower-end of guidance. Senvion expects its fiscal year adjusted EBITDA margin to be around 5% while its earlier guidance calls for between 5% and 6.5%. Senvion also detailed that it expects to experience short-term disruption in the supply of key components of its turbine product. Senvion is not rated in our Global Top Stock Ideas.  
  • SLM Solutions Group AG (DB: AM3D) shares are falling after the company’s CFO, Uwe Bogershausen, declared himself unavailable for an extension on his appointment set to end in June. Hauck & Aufhaueser published a note last night saying they are, “very disappointed,” about management board changes, detailing that this is a, “highly critical time,” for the company. SLM Solutions also cut its fiscal year revenue guidance from between 115mm euros and 125mm euros to between 90mm euros and 100mm euros.SLM Solutions is rated “Top Short” in our European SMID-Cap 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. 
  • Willis Towers (WLTW) reported 3Q results that beat consensus, with adjusted EPS of USD$1.32 beating USD$1.13 consensus estimate.  Willis Towers increased full year EPS guidance to USD$10.12-10.32, up from USD$9.88-10.12. Willis Towers expects 3-4% organic revenue growth in constant currency terms.  Willis Towers is not rated in our Global Top Stock Ideas.

 

 

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 6.7 basis points to 2.91%
  • US 5-Year Treasury Bonds are lower with yields up 8.36 basis points to 3.03%
  • US 10-Year Treasury Bonds are lower with yields up 8.76 basis points to 3.21%
  • The US Treasury 2s-5s Spread has widened 1.66 basis points to 0.13%
  • The US Treasury 2s-10s Spread has widened 2.06 basis points to 0.31%
  • US Treasury 5s-10s Spread has widened 0.4 basis points to 0.18%

Currencies

  • EUR€ is little changed 0.114% against the USD$ in after hours to 1.1395
  • GBP£ is down 0.323% against the USD$ in after hours to 1.297
  • CHF is down 0.18% against the USD$ in after hours to 0.9961
  • JPY¥ is up 0.435% against the USD$ in after hours to 113.21

Commodities

  • WTI Crude is down -0.86% to USD$63.14/bbl with the Brent-WTI spread up USD$0.72 to USD$8.83/bbl
  • Gold is little changed -0.02% to USD$1233.19/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
VeriSign Inc Information Technology 165 17.20%            1,318,493
Newell Brands Inc Consumer Discretionary 19 14.74%            4,676,878
Starbucks Corp Consumer Discretionary 64.3 9.70%          11,491,018
Arista Networks Inc Information Technology 257.77 6.98%                541,925
Willis Towers Watson PLC Financials 152.39 6.49%                477,942
 
Underformers Sector Price 1D % Chg Volume
Kraft Heinz Co/The Consumer Staples 50.7 -9.73%            6,290,332
Synchrony Financial Financials 26.4 -9.58%            3,371,035
Stericycle Inc Industrials 47.3 -6.83%            1,158,956
Newfield Exploration Co Energy 21.9 -6.78%            3,077,683
Apple Inc Information Technology 207 -6.63%          23,438,328