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US stocks rally broadly as cloud of elections is removed, risk-on sentiment abounds as divided Congress is bullish for stocks

Nov 07, 2018

 

 

US Market Snapshot

  • US stocks are seeing a broad-based rally today as the cloud of an election has given way to a divided US Congress, something generally bullish for stocks
  • The S&P 500 is currently up 1.57%, Nasdaq Composite is up 1.97%, and Russell 2000 is up 1.04%
  • Healthcare (+2.74%), Tech (+2.31%), and Consumer Discretionary (+2.03%) stocks are the top performers in the S&P 500 today
  • Real Estate (+0.76%), Financials (+0.39%), and Consumer Staples (+0.36%) 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 4.56x
  • 66 stocks in the S&P500 are at 4-week highs while 7 stocks are at 4-week lows
  • 14 stocks in the S&P 500 are overbought while 8 stocks are oversold according to the 16-day RSI Measure
  • 69 stocks in the Nasdaq Composite are at 4-week highs while 108 stocks are at 4-week lows
  • 266 stocks in the Nasdaq Composite are overbought while 174 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 17.07 from yesterday's close of 19.91
     

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Boeing (BA) has issued a warning to pilots in the wake of the recent 737 Max jet crash.  Boeing is advising pilots how to deal with potential malfunction of a sensor while flying.  Boeing’s advisory reminds pilots how to deal with faulty information from its angle of attack sensor, which is being implicated in the recent crash.   Boeing is basing this advisory on preliminary data from the crash and has not yet reached a final conclusion.  Boeing is rated “Attractive” in both our US Large-Cap and US Industrials Global Top Stock Ideas. 
  • CME Group (CME) announced it is moving Europe’s largest market for short-term financing out of London ahead of Brexit.  CME Group wants to guarantee that continental firms will have access to the market in the event there is no Brexit deal.  CME Group will move the BrokerTec business, as it is known, to Amsterdam.   CME Group is rated “Attractive” in our US Large-Cap Global Top Stock Ideas. 
  • DaVita (DVA) shares are trading higher after a referendum to cap dialysis profits in California was voted down yesterday. Morgan Stanley said that, had the referendum been voted through, DaVita would have lost about 6% of its annual income. DaVita spent roughly USD$67mm to fight the referendum. DaVita is rated “Unattractive” in our US Large Cap Global Top Stock Ideas. 
  • Dean Foods Co. (DF) shares are spiraling after the top US dairy producer reported a larger-than-expected loss in CY3Q2018. Dean Foods reports a CY3Q2018 loss of USD$0.29/share while analysts expected a loss of USD$0.07/share. Dean Foods also pulled-back its guidance, citing higher-than-expected costs associated with closing seven of its plants. Dean Foods is rated “Neutral” in both our US SMID-Cap and US Consumer Staples Global Top Stock Ideas.  
  • Humana (HUM) shares are higher in midday trading after the company reported CY3Q2018 financials and raised CY2018 guidance. Humana delivered diluted EPS of USD$4.65/share in CY3Q2018 while analyst consensus called for USD$4.18.  Humana raised its full-year 2018 adjusted EPS guidance by USD$0.25/share to USD$14.40/share. Humana is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.  
  • Ironwood Pharmaceuticals (IRWD) was downgraded by Credit Suisse and JP Morgan in the wake of weak 3Q results.   JP Morgan cut Ironwood Pharmaceuticals’ price target to USD$11 from USD$20 while cutting its rating to underweight from neutral.  Credit Suisse cut its price target to USD$14 from USD$20 and its rating to neutral from outperform.  Ironwood Pharmaceuticals is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.
  • Match Group (MTCH) shares suffered after reporting guidance below consensus.  Match Group said sales will be USD$440-4540mn, below consensus of USD$454.5mn while 3Q revenue came in line at USD$444mn.  Match Group sees little revenue growth for the rest of the year and it seeks to become a one-stop shop for dating apps.  Match Group is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Michael Kors Holdings Ltd. (KORS) shares are falling the most in intraday trading since May 2015 after the company missed consensus analyst forecasts for same-store sales and pulled-back its full-year comparable sales forecast. Michael Kors management discussed in its conference call that they expect comparable same-store sales growth in FY3Q2019 to fall into the single digits, primarily due to negative currency conversion impacts. Despite pulling back its guidance, Michael Kors reported FY2Q2019 EPS of USD$1.27/share while analyst consensus called for USD$1.10. Michael Kors is not rated in our Global Top Stock Ideas.  
  • Mylan N.V. (MYL) shares traded higher yesterday after the company reported better-than-expected CY3Q2018 earnings. Mylan announced CY3Q2018 adjusted EPS y/y growth of 13.6% to USD$1.25/share while consensus estimates called for USD$1.19. Mylan is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.  
  • Tableau Software, Inc. (DATA) shares are rising after the company announced CY3Q2018 financials that generated split opinions from Wall Street analysts. As a result of its quarterly financials, Bernstein upgraded Tableau from market perform to outperform and raised its price target from USD$124/share to USD$145/share, citing Tableau’s new pricing structure that will drive long-term new business growth. Cowen, on the other hand, downgraded Tableau from outperform to market perform while lowering its price target from USD$113/share to USD$103/share, citing a complex revenue model that will lead to less recurring revenue than expected. Tableau is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas. 
  • Virtu Financial, Inc. (VIRT) is set to acquire Investment Technology Group (ITG) for USD$30.30/share in cash. The USD$30.30/share acquisition price represents more than a 40% premium on ITG’s average closing share price over the last 30 days. ITG also announced CY3Q2018 financial results surpassed analyst expectations today. Virtu Financial is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas. ITG is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.
  • Zillow Group (ZG) shares plunged in after-hours trading after cutting its forecast for the second straight quarter.  Zillow Group now sees full year revenue of USD$1.307-1.324 billion, a range below the lowest estimates.  Zillow Group sees full-year ebitda of USD$195-207mn, again well below the USD$247mn consensus.  Zillow Group said it will take time for advertisers to adapt to its new business model and cited that as the reason for the cut.  Zillow Group is not rated in or Global Top Stock Ideas.

 

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 0.41 basis points to 2.93%
  • US 5-Year Treasury Bonds are higher with yields down -1.53 basis points to 3.04%
  • US 10-Year Treasury Bonds are higher with yields down -4.2 basis points to 3.18%
  • The US Treasury 2s-5s Spread has narrowed 1.94 basis points to 0.11%
  • The US Treasury 2s-10s Spread has narrowed 4.61 basis points to 0.25%
  • US Treasury 5s-10s Spread has narrowed 2.67 basis points to 0.15%

Currencies

  • EUR€ is currently up 0.28% against the USD$ to 1.1459
  • GBP£ is currently up 0.321% against the USD$ to 1.3141
  • CHF is currently up 0.261% against the USD$ to 1.0001
  • JPY¥ is currently little changed against the USD$ at 113.36

Commodities

  • WTI Crude is currently down -0.55% to USD$61.87/bbl with the Brent-WTI spread up USD$0.77 to USD$9.42/bbl
  • Gold is currently little changed 0.03% to USD$1227.55/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
Anadarko Petroleum Corp Energy 58.16 11.80%                715,923
Humana Inc Health Care 351.63 9.22%                  80,374
Centene Corp Health Care 142.13 8.50%                230,462
Pioneer Natural Resources Co Energy 160.30 7.74%                213,523
Align Technology Inc Health Care 246.69 7.20%                327,361
 
Underperformers Sector Price 1D % Chg Volume
Coty Inc Consumer Staples 8.96 -19.50%            1,581,990
DXC Technology Co Information Technology 61.68 -14.68%                711,256
Michael Kors Holdings Ltd Consumer Discretionary 49.29 -14.26%            1,400,818
Garrett Motion Inc #N/A N/A 13.88 -6.57%                  99,339
EQT Corp Energy 33.17 -5.11%                250,062