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Rout in US tech sector leads a day of losses for US stocks, S&P500 +2.13% for week

Nov 09, 2018

 

 

US Markets End of Day Snapshot

  • Rout in US tech sector leads a day of losses for US stocks as weak tech earning weigh on broader stock market
  • The S&P 500 finished down 1.44%, Nasdaq Composite is down 1.99%, and Russell 2000 is down 2.37%
  • In spite of today's move, S&P500 +2.21% for week
  • WTI closes down 1.38%, its tenth straight day of losses ahead of OPEC meeting this weekend
  • Consumer Staples (+0.4%), Real Estate (-0.14%), and Utilities (-0.16%) stocks were the top performers in the S&P 500 today
  • Materials (-1.6%), Telecom (-1.83%), and Tech (-2.07%) 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 0.46x
  • 159 stocks in the S&P 500 hit 4-week highs while 9 stocks reached 4-week lows
  • 24 stocks in the S&P 500 closed overbought while 8 stocks closed oversold according to the 16-day RSI Measure
  • 100 stocks in the Nasdaq Composite hit 4-week highs while 94 stocks reached 4-week lows
  • 447 stocks in the Nasdaq Composite closed overbought while 175 stocks closed oversold according to the 16-day RSI Measure

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.
  • Amazon (AMZN) said today it will start selling the most recent iPhones, iPads and iMacs from Apple (AAPL) as part of a new deal the companies have struck.  Amazon will also sell Apple branded accessories and Beats headphones from Apple.  In the past, Amazon only sold older models of Apple products; this deal changes that.  Amazon will not be selling Apple’s HomePod, its competitor to Amazon’s Echo products.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  Apple is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
  • Banca Monte dei Paschi Siena (BIT: BMPS) shares are trading slightly higher today after the company reported mixed CY3Q2018 financials. Monte Paschi reported CY3Q2018 revenue of 809.5mm euros while analyst consensus called for 827.8mm euros. Monte Paschi saw net interest income in CY3Q2018 of 442.1mm euros while consensus called for 440.7mm euros. Monte Paschi is rated “Unattractive’ in our European SMID-Cap Global Top Stock Ideas.  
  • Banco Bilbao Vizcaya Argentaria SA (BME: BBVA) is being hit the hardest among Spanish banks after the Mexican government proposed scrapping some bank commissions, including ATM withdrawal fees. BBVA is currently seeing its largest intraday drop in two years with Mexico currently accounting for 40% of the financial institution's revenue. BBVA is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.     
  • BlackBerry (BB) is in talk to acquire cyber security firm Cylance according to a report in Business Insider today.  BlackBerry’s potential acquisition could reach USD$1.5 billion.  BlackBerry would make the addition to bolster its security offerings, Cylance makes AI-based cyber security products.  The reports states BlackBerry could announce the deal as early as next week.  BlackBerry is not rated in our Global Top Stock Ideas.
  • Burberry Group Plc (LSE: BRBY) shares are trading lower today despite being upgraded to neutral from underperform at Intermonte. Intermonte raised Burberry’s price target from 17.50 pounds/share to 18.00 pounds/share. Currently, Burberry maintains an average price target of 19.25 pounds across 22 companies. Burberry is rated “Neutral” in our United Kingdom All-Cap 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.
  • Compagnie Financiere Richemont SA (SWX: CFR) shares are trading notably lower today after the company signaled a slowdown of growth in China and a possibility of weakening demand for its products as a result of the US-Sino trade war. During the company’s conference call today, Richemont CFO Burkhart Grund told reporters that the company’s 18-month period of double-digit growth in domestic Chinese markets is over, citing a clampdown on luxury imports into China. Richemont is rated “Unattractive” in our European 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.
  • Dropbox (DBX) shares surged today after reporting strong results after yesterday’s close.  Dropbox reported a 3Q loss of 1 cent per share while the market was expecting 6 cents.  Dropbox revenue of USD$360.3 topped all estimates, with consensus at 352.6mn.  Dropbox said its new product offerings helped it surpass subscriber growth estimates.  Dropbox is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.
  • EDP (EDP) said it is maintaining its guidance for 2018 net profit, according to a regulatory filing.  EDP said it is seeing “clear signals” that approvals are coming for the China Three Gorges bid.  EDP said it also expects approval for projects in Brazil soon from regulators there.  EDP is rated “Attractive” in our European SMID-Cap Global Top Picks.
  • 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.
  • JD.com Inc. (JD) shares fell 6.9% in yesterday’s trading after the company’s CEO, Liu Qiangdong, was absent from the World Internet Conference, a significant state-sponsored conference in China. JD.com is the country’s second largest internet company and shares have fallen 48% so far this year, as of yesterday’s market close. JD.com is rated “Top Short” in our China All-Cap Global Top Stock ideas.
  • Leonardo (BIT: LDO) shares are falling after the company announced mixed CY3Q2018 financials. Leonardo reported CY3Q2018 revenue in-line with analyst consensus, however, their EBITA missed consensus by 17%. Leonardo is rated “Neutral” in our European Large-Cap 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.
  • Revlon (REV) said it will slash costs by USD$150mn by the end of next year, sending the stock soaring over 30% in today’s trading.  Revlon plans to include job cut in its plan but has not revealed any headcount reductions numbers.  Revlon CEO Debra Perelman said the company will be reallocating resources to “high priority growth areas”.  Revlon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Short” in our US Consumer Staples Global Top Stock Ideas.
  • Thyssenkrupp (TKA GR) issued a profit warning citing the effects of a German investigation into steel price fixing.  Thyssenkrupp said there could be “substantial adverse consequences” due the ongoing investigation as well as weakness in its elevator division.  Thyssenkrupp expects 2018 adjusted ebit of 1.6 billion euros, down from 1.8 billion euros previously guided.  Thyssenkrupp is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • Telecom Italia (TIT IM) has abandoned its debt-reduction target that it has previously announced.  Telecom Italia will write down the value of its assets by about 2 billion euros as the company copes with activist investors demanding improvements.  Telecom Italia is facing strong competition in both its mobile and fixed-line businesses.  Telecom Italia is rated “Top Short” in our European 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 -3.68 basis points to 2.92%
  • US 5-Year Treasury Bonds are higher with yields down -4.94 basis points to 3.04%
  • US 10-Year Treasury Bonds are higher with yields down -4.8 basis points to 3.18%
  • The US Treasury 2s-5s Spread has narrowed 1.26 basis points to 0.11%
  • The US Treasury 2s-10s Spread has narrowed 1.12 basis points to 0.26%
  • US Treasury 5s-10s Spread has widened 0.14 basis points to 0.15%
     

Currencies

  • EUR€ is down 0.238% against the USD$ in after hours to 1.1336
  • GBP£ is down 0.658% against the USD$ in after hours to 1.2976
  • CHF is little changed 0.06% against the USD$ in after hours to 0.9947
  • JPY¥ is down 0.237% against the USD$ in after hours to 113.8

Commodities

  • WTI Crude is down -1.15% to USD$59.97/bbl with the Brent-WTI spread little changed USD$-0.15 to USD$9.24/bbl
  • Gold is down -1.21% to USD$1209.17/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
EQT Corp Energy 35.90 4.62%                677,908
Monster Beverage Corp Consumer Staples 56.84 3.67%            1,466,235
Colgate-Palmolive Co Consumer Staples 63.8 3.53%            1,933,021
NRG Energy Inc Utilities 38.28 2.91%            1,688,734
Coty Inc Consumer Staples 8.49 2.71%            3,039,196
 
Underperformers Sector Price 1D % Chg Volume
PG&E Corp Utilities 39.92 -14.3%          23,551,223
Activision Blizzard Inc Communication Services 55.01 -13.12%          34,426,776
Edison International Utilities 61 -12.4%            8,004,321
CenturyLink Inc Communication Services 18.91 -11.05%          28,656,742
Skyworks Solutions Inc Information Technology 76.66 -8.77%            2,416,502