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US stocks lower across the board led by tech sector amid weak results; oil enters bear territory with WTI down for 10th straight day, the longest slump on record

Nov 09, 2018

 

 

US Market Snapshot

  • US stocks are lower across the board, led by tech sector amid weak results; oil enters bear market territory with the WTI down for a 10th straight day, the longest slump on record
  • The S&P 500 is currently down 1.12%, Nasdaq Composite is down 1.8%, and Russell 2000 is down 1.64%
  • Consumer Staples (+0.43%), Utilities (+0.15%), and Real Estate (-0.06%) stocks are the top performers in the S&P 500 today
  • Telecom (-1.55%), Tech (-1.89%), and Materials (-1.97%) 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 0.33x
  • 159 stocks in the S&P500 are at 4-week highs while 9 stocks are at 4-week lows
  • 24 stocks in the S&P 500 are overbought while 8 stocks are oversold according to the 16-day RSI Measure
  • 100 stocks in the Nasdaq Composite are at 4-week highs while 94 stocks are at 4-week lows
  • 447 stocks in the Nasdaq Composite are overbought while 175 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving up at 17.91 from yesterday's close of 16.72

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Activision (ATVI) provided a weaker outlook for 4Q than analysts are expecting, and the stock suffered as a result.  Activision expects 4Q EPS of USD$1.27, below present consensus of USD$1.31.  Activision’s 2019 outlook is in question, a year with limited product launches are expected, making the performance of recent launches particularly important, according to recent analyst comments.  Activision is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • CenturyLink (CTL) shares are falling today after the company reported CY3Q2019 financials post-market yesterday. CenturyLink’s full-year 2019 guidance disappointed analysts as the company pulled-back revenue estimates to USD$22.78bn from USD$23.3bn and EBITDA estimates to USD$9.16bn from USD$9.57bn. As a result of the guidance adjustment, Cowen downgraded CenturyLink to market perform while adjusting its price target to USD$21/share. CenturyLink is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Ctrip.com International Ltd. (CTRP) tanked yesterday, falling the most in intraday trading in nearly 15 years after analysts from CICC, CIMB, Credit Suisse, Citi, and China Renaissance all downgraded the company’s stock despite CY3Q2018 financials that beat analyst estimates. Ctrip.com reported CY3Q2018 revenue of USD$1.37bn while consensus estimates called for USD$1.34bn. Analysts cited the reason for the downgrades as margin concerns, with Ctrip.com forecasting non-GAAP operating margin between 0% and 1% for CY4Q2018 while they achieved a non-GAAP operating margin of 20% in CY3Q2018. Crtip.com is rated “Unattractive” in our China All-Cap Global Top Stock Ideas.  
  • Disney (DIS) reported 4Q results that beat expectations, beating the highest estimates.  Disney reported adjusted EPS of USD$1.48 while estimates were for USD$1.34.  Disney’s total revenue of USD$14.31 billion well above the USD$13.74 billion estimate.  Disney CEO has presented a strategy with 3 online platforms-ESPN+, Hulu and Disney+, its new streaming service; all three are receiving significant investments near term.  Disney is rated “Top Buy” in both our US Large-Cap Global Top Stock Ideas and US Consumer Discretionary Global Top Stock Ideas.
  • Finisar Corporation (FNSR) shares are soaring today after II-VI Inc. (IIVI) announced that it will acquire Finisar for USD$3.2bn in cash and stock. Finisar is a notable supplier for Apple, Inc. (AAPL). The new acquisition will see II-VI focus on data-centers, building out high-speed 5G infrastructure, and autonomous cars. Finisar is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas. II-VI Inc. Is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.   
  • Hertz Global Holdings (HTZ) shares are trading higher after announcing CY3Q2018 financials that surpassed analyst expectations. Hertz reports CY3Q2018 revenue of USD$2.78bn that beat consensus analyst estimates of USD$2.68bn. Hertz’s bottom-line EPS of USD$1.68/share also beat consensus analyst estimates of USD$1.57/share. Hertz is rated “Attractive’ in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • PG&E Corporation (PCG), Edison International (EIX), and other California utility owners’ shares are tumbling after a California wildfire quadrupled in size as a result of 65 mph winds. Both PG&E and Edison International serve a large portion of the California population. PG&E is rated “Attractive” in our US Large-Cap Global Top Stock Ideas. Edison International is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas. 
  • TransCanada Corp (TRP CN) suffered a setback in its planned Keystone XL pipeline.  A federal judge in Montana ordered the project to be halted due to an environmental lawsuit against TransCanada.  The judge agreed with plaintiffs that TransCanada Corp failed to conduct a complete environmental review and ordered the project to stop.   TransCanada Corp is not rated in our Global Top Stock Ideas.
  • Yelp (YELP) suffered yesterday after warning that its slowdown from 3Q will continue into this quarter.  Yelp is seeing fewer new accounts being added and consequently less revenue growth.  Yelp forecast 4Q revenue of USD$239-243mn, a range below the lowest estimate presently.  Consensus for 4Q revenue for Yelp is USD$259.7mn.  Yelp is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -3.27 basis points to 2.9323%
  • US 5-Year Treasury Bonds are higher with yields down -4.94 basis points to 3.0422%
  • US 10-Year Treasury Bonds are higher with yields down -4.98 basis points to 3.1875%
  • The US Treasury 2s-5s Spread has narrowed 1.67 basis points to 0.11%
  • The US Treasury 2s-10s Spread has narrowed 1.71 basis points to 0.26%
  • US Treasury 5s-10s Spread has narrowed 0.04 basis points to 0.15%

Currencies

  • EUR€ is currently down 0.37% against the USD$ to 1.1321
  • GBP£ is currently down 0.651% against the USD$ to 1.2977
  • CHF is currently little changed against the USD$ at 0.9933
  • JPY¥ is currently down 0.21% against the USD$ to 113.83

Commodities

  • WTI Crude is currently down -1.65% to USD$59.67/bbl with the Brent-WTI spread little changed USD$0 to USD$9.29/bbl
  • Gold is currently down -1.4% to USD$1207/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
EQT Corp Energy 36.78 5.80%                556,676
NRG Energy Inc Utilities 38.8 4.92%            2,035,043
Monster Beverage Corp Consumer Staples 55.78 2.99%                640,647
Cabot Oil & Gas Corp Energy 25.92 2.81%                390,210
Colgate-Palmolive Co Consumer Staples 62.31 2.20%            1,853,484
 
Underperformers Sector Price 1D % Chg Volume
PG&E Corp Utilities 41.96 -12.41%            1,220,586
Activision Blizzard Inc Communication Services 56.02 -10.70%                887,433
Edison International Utilities 63.1 -9.55%                325,800
CenturyLink Inc Communication Services 19.1 -9.30%            2,476,512
General Electric Co Industrials 8.32 -8.57%          23,633,194