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US markets close higher, near daily highs, with focus on the election and volume lower than average across all markets

Nov 06, 2018

 

 

US Markets End of Day Snapshot

  • US markets rose today and closed near the day's highs; investor focus was on the election as volume was below average across all markets today 
  • The S&P 500 finished up 0.63%, Nasdaq Composite up 0.64%, and Russell 2000 up 0.55%
  • Materials (+1.51%), Industrials (+1.1%), and Utilities (+0.76%) stocks were the top performers in the S&P 500 today
  • Real Estate (+0.52%), Financials (+0.5%), and Energy (+0.34%) 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 3.59x
  • 36 stocks in the S&P 500 hit 4-week highs while 5 stocks reached 4-week lows
  • 9 stocks in the S&P 500 closed overbought while 8 stocks closed oversold according to the 16-day RSI Measure
  • 52 stocks in the Nasdaq Composite hit 4-week highs while 128 stocks reached 4-week lows
  • 208 stocks in the Nasdaq Composite closed overbought while 151 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed down -0.05 points today  to 19.91 after closing at 19.96 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Air Products (APD) announces FY4Q2018 adjusted EPS from continuing operations of USD$2.00, in-line with consensus adjusted EPS expectations of USD$1.99. ADP’s adjusted EBITDA of USD$822mm in FY4Q2018 falls short of consensus revenue expectations of USD$833.1mm. ADP reports FY1Q2019 adjusted EPS from continuing operations guidance between USD$1.85/share and USD$1.90/share while consensus forecasts call for USD$1.93/share. APD is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • Alibaba (BABA) said it will do its part to help global enterprises import USD$200 billion of goods into China over the next 5 years.  Alibaba sees a growing demand from China’s middle class as a way to whittle down the present trade surplus.  Alibaba has said it will “do its part” to reverse the surplus.  Alibaba is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Associated British Foods (ABF LN) reported results that included sales growth at its Primark unit that grew 5.2% at constant exchange rates.  Associated British Foods full year operating profit of 1.4 billion pounds while consensus was for 1.39 billion.  Comparable sales fell 2.1% at Primark and Associated British Foods sees its sugar unit delivering results significantly lower than today.  Associated British Foods is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Becton Dickinson (BDX) announced FY2019 guidance that falls short of the lowest analyst estimate. Becton Dickinson sees its FY2019 adjusted EPS between USD$12.05 and USD$12.15 while analyst forecasts range between uSD$12.39 and USD$12.89. Becton Dickinson’s management stated that the firm’s FY2019 adjusted EPS includes an adverse impact of 600 basis points in relation to headwinds and divestitures. Becton Dickinson’s CY4Q2018 adjusted EPS of USD$2.93 matches consensus analyst expectations. Becton Dickinson is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  
  • BlackRock (BLK) had its Munich office raided by German prosecutors in a widening investigation into questionable tax trades, according to a report in Bloomberg today.  BlackRock is being investigated for a type of transaction used to skirt taxes on dividends, something that cost the German government an estimated 10 billion euros.  BlackRock is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • CVS Health (CVS) announces strong CY3Q2018 earnings, reporting EPS of USD$1.1.36/share while consensus forecasts called for USD$1.34/share. CVS Health’s top-line revenue of USD$47.3bn is slightly above consensus analyst forecasts of USD$47.2bn. CVS Health’s management detailed in its conference call that they expect the USD$69bn acquisition of Aetna to close by this Thanksgiving. CVS Health is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • Deutsche Post (DPW GR) reported results below consensus.  Deutsche Post delivered 3Q ebit of 376mn euros, below 393.9mn euros consensus.  Deutsche Post 3Q revenue of 14.85 billion euros came in line with consensus of 14.94 billion euros.  Deutsche Post reiterated its guidance of 5 billion euros operating profit by 2020.  Deutsche Post is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Eli Lilly (LLY) announces CY3Q2018 earnings with bottom-line EPS of USD$1.12 that missed consensus estimates of USD$1.23. Eli Lilly saw top-line revenue grow 7.1% y/y to USD$6.06bn, beating consensus estimates of USD$5.86bn. Eli Lily is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Emerson (EMR) reported 4Q results that came in line with market consensus.  Emerson reported 4Q adjusted EPS of 89 cents while consensus was for 90.  Emerson’s 4Q net sales of USD$4.89 billion came in line with USD$4.91 billion consensus.  Emerson sees 2019 underlying sales growth of 4-7% with free cash flow of USD$2.5 billion.  Emerson is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Frontdoor Inc (FTDR) shares plunged today after a weak earnings and outlook plagued the company’s first earnings release.  Frontdoor Inc was recently spun off from ServiceMaster Global Holdings (SERV).  Frontdoor Inc cut its full year ebitda forecast to USD$ 215-225mn down from USD$245-255mn citing higher claims and marketing costs.  Frontdoor Inc is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.  ServiceMaster Global Holdings is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • General Electric Company (GE) has agreed to sell its Current business, which sells LED lighting for commercial use and generated USD$1bn of sales in 2017, to private equity firm American Industrial Partners. General Electric is also reportedly attempting to sell the entirety of its consumer-lighting business, according to people familiar with the matter. General Electric is rated “Top Short” in our US Large-Cap Global Top Stock Ideas “Unattractive” in our US Industrials Global Top Stock Ideas.  
  • GreenSky (GSKY) shares are plummeting after the company reported CY3Q2018 earnings and slashed full-year guidance. GreenSky reports CY3Q2018 revenue of USD$113.9mm while consensus revenue estimates called for USD$121.3mm. GreenSky’s management cut CY2018 EBITDA guidance from between USD$192mm and USD$199mm to between USD$165mm and USD$175mm. GreenSky is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Imperial Brands (IMB LN) said it intends to build an inventory of cigarettes ahead of Brexit.  Imperial Brands will stockpile USD$40mn worth of cigarettes, about 2.6mn packs.  Imperial Brands reported weak adjusted operating profit of 3.77 pounds for the full year, a 0.1% growth, while consensus was for a drop.  Imperial Brands is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Marriot International (MAR) shares are trading lower after the company announced CY4Q2018 EPS guidance of between USD$1.37 and USD$1.41 while consensus EPS estimates call for USD$1.50. Marriott reported CY3Q2018 EPS of USD$1.38/share that beat consensus estimates of USD$1.30/share. Marriott International is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • New York Times Co. (NYT) shares are seeing the largest pull-back in intraday trading in more than four years after Barclays downgraded the stock and adjusted its price target for NYT. Barclays downgraded New York Times to underweight from equal-weight and adjusted its price target from USD$20/share to USD$18/share -- the new price target represents a 36% decline from yesterday’s close. Barclays analysts cited in a note that they believe New York Times’ rally in 2018 has been overdone. New York Times is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Ralph Lauren (RL) posted 2Q sales and profit that beat the highest estimates.  Ralph Lauren 2Q adjusted EPS came at USD$2.26 versus consensus of USD$2.15.  Ralph Lauren 2Q revenue of USD$1.69 billion while consensus was USD$1.65 billion.  Ralph Lauren same store sales growth of 0% came better than the 0.6% drop in sales that was consensus.  Ralph Lauren expects 3Q net revenue to grow in the low single digits.  Ralph Lauren is rated “Attractive” in both our US Large-Cap and US Consumer Discretionary Global Top Stock Ideas.
  • Siemens Gamesa (SGRE SM) reported full year sales of 9.12 billion euros, coming 1.6% below consensus.   Siemens Gamesa reported adjusted ebit of 693mn euros, above consensus of 660mn euros.  Siemens Gamesa sees full year 2019 revenue of 10-11 billion euros.  Siemens Gamesa is the renewable energy unit of Siemens.  Siemens Gamesa is not rated in our Global Top Stock Ideas.
  • Stifel Financial Corporation (SF) announced that it has agreed to buy Mainfirst bank, a German financial institution with 200 employees and 60 analysts that cover European equities. The acquisition is meant to scale Stifel’s equity research business in Germany and Switzerland while preparing Stifel for Britain’s departure from the European Union. Stifel is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.  
  • Symantec (SYMC) shares are soaring after reports broke that Thoma Bravo, a US private equity firm, approached Symantec about an acquisition. Reports stress that there is no guarantee that talks will lead to a deal. Trading of Symantec shares was halted briefly for volatility after the initial surge. Symantec is rated “Neutral” in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Toyota (7203 JP) raised its full year forecast, bucking the trend among carmakers.  Toyota boosted its full year operating profit to 2.4 trillion yen, up from 2.3 trillion yen.  Toyota also plans a share buyback of up to 250 billion yen or 1.44% of outstanding stock.  Toyota said it has kept costs in check allowing it to increase guidance.  Toyota is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas. 
  • Thomson Reuters (TSX: TRI) announces CY3Q2018 earnings that beat analyst expectations while the company’s top-line sales fell short of consensus forecasts. Thomson Reuters reports CY3Q2018 EPS of USD$0.37/share while consensus forecasts called for a loss of USD$0.01/share. Thomson Reuters’ CY3Q2018 revenue of USD$1.29bn fell short of consensus revenue expectations by USD$20mm. Thomson Reuters is not rated in our Global Top Stock Ideas. 
  • William Hill Plc (LSE: WMH) shares are falling the most in three months after the company reported a CY3Q2018 y/y revenue decline of 4%. William Hill sees its full-year operating profit between GBP225mm and GBP245mm, which is 3% below consensus analyst estimates. William Hill is rated “Attractive” in our United Kingdom All-Cap Global Top Stock Ideas.  
  • Zalando (ZAL GR) reported its first operating loss in a quarter in three years.  Zalando reported a 3Q loss of 39mn euros, a loss that came better than the 45mn euros loss that was expected.  Zalando saw customers wait to buy fall/winter clothing with the persistent warm weather and were forced to offer more sales to keep them buying.  Zalando is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.

 

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 2.04 basis points to 2.92%
  • US 5-Year Treasury Bonds are lower with yields up 2.23 basis points to 3.05%
  • US 10-Year Treasury Bonds are lower with yields up 1.91 basis points to 3.21%
  • The US Treasury 2s-5s Spread has widened 0.19 basis points to 0.12%
  • The US Treasury 2s-10s Spread has narrowed 0.13 basis points to 0.29%
  • US Treasury 5s-10s Spread has narrowed 0.32 basis points to 0.17%

Currencies

  • EUR€ is little changed 0.096% against the USD$ in after hours to 1.1418
  • GBP£ is up 0.429% against the USD$ in after hours to 1.3097
  • CHF is up 0.151% against the USD$ in after hours to 0.9971
  • JPY¥ is up 0.239% against the USD$ in after hours to 113.46

Commodities

  • WTI Crude is down -1.41% to USD$62.21/bbl with the Brent-WTI spread up USD$0.44 to USD$9.23/bbl
  • Gold is down -0.38% to USD$1226.82/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

On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
Mylan NV Health Care 36.4 16.13% 7,013,878
Symantec Corp Information Technology 22.5 12.58% 8,427,696
Mosaic Co/The Materials 35.6 10.61% 2,019,423
Martin Marietta Materials Inc Materials 190 8.42% 364,747
TripAdvisor Inc Communication Services 57 7.06% 14,38,691
 
Underperformers Sector Price 1D % Chg Volume
Nektar Therapeutics Health Care 36.1 -9.80%            1,404,945
Broadridge Financial Solutions Inc Information Technology 105 -9.70%                494,533
Ralph Lauren Corp Consumer Discretionary 128 -6.59%                807,519
AmerisourceBergen Corp Health Care 84 -5.15%                659,832
Marriott International Inc/MD Consumer Discretionary 115 -5.08%            1,925,280