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US stocks selling off midday with tech sector leading losses

Nov 12, 2018

 

 

US Market Snapshot

  • US stocks are selling off midday with weak iPhone demand weighing on markets as tech sector leads the losses
  • The S&P 500 is currently down 1.57%, Nasdaq Composite is down 1.95%, and Russell 2000 is down 1.58%
  • Real Estate (+0.59%), Utilities (+0.41%), and Consumer Staples (-0.2%) stocks are the top performers in the S&P 500 today
  • Financials (-1.18%), Consumer Discretionary (-1.42%), and Tech (-2.67%) 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 0.3x
  • 90 stocks in the S&P500 are at 4-week highs while 21 stocks are at 4-week lows
  • 26 stocks in the S&P 500 are overbought while 14 stocks are oversold according to the 16-day RSI Measure
  • 76 stocks in the Nasdaq Composite are at 4-week highs while 141 stocks are at 4-week lows
  • 223 stocks in the Nasdaq Composite are overbought while 265 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently  moving down at 11.78 from yesterday's close of 17.36

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Alphabet’s (GOOGL) Google has said the new EU plan to deal with copyright problems, known as Article 13, may be unrealistic.  Google said that while it has agreements for most of the videos on its YouTube service there are some in which multiple parties claim copyright.  In these cases, Google may have to delete these videos.  While a small percentage it would be many, many videos and if passed Google would likely have to remove many users content from YouTube. Something Google is warning will cause tension with its users.  Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Athenahealth Inc. (ATHN) shares are trading higher after private-equity firm Veritas Capital and Elliott Management Corporation announced they will acquire the company.  Athenahealth will be acquired in an all-cash transaction for USD$135/share, representing a 12% premium to the stock’s Friday close price. Athenahealth is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  
  • Cheesecake Factory Inc (CAKE) was downgraded at Barclay’s to underweight from equal weight.  Cheesecake Factory Inc saw its price target lowered to USD$47 from USD$51.  The downgrade of Cheesecake Factory Inc followed its full year EPS guidance cut to USD$2.42-2.46 from USD$2.62-2.74.  Cheesecake Factory Inc is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Intelsat (I) was upgraded by Morgan Stanley to equal weight from underweight.  Intelsat has its price target hiked to USD$28 from USD$8.  Intelsat recently affirmed full year sales guidance of USD$2.06-2.11 billion, below consensus of USD$2.15 billion.  Intelsat is not rated in our Global Top Stock Ideas. 
  • Lumentum Holdings Inc. (LITE) shares are plummeting along with other Apple Inc. (AAPL) suppliers as investors are fearing weak iPhone demand. Longbow Research reported today that Apple is facing weak iPhone demand in China while Nikkei reported last week that Apple cancelled a production boost for its iPhone XR line. Today, Lumentum Holdings cut its FY2Q2019 outlook after being asked to, “meaningfully reduce shipments,” for previously placed orders. Lumentum is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas. Apple is rated “Attractive’ in both our US Large-Cap & US Information Technology Global Top Stock Ideas.  
  • Microsoft (MSFT) has pledged to support the “Paris call for trust and security in cyberspace” together with many other tech companies.  The idea of the pledge is to unite tech companies to battle election tampering, compromised electronic components and software hacks.  Microsoft has pledged its help to avoid some of the problems seen over the last few years and this effort has been spearheaded by France’s President Macron.  Microsoft is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Netflix (NFLX) said it will test lower-priced offerings of its streaming service to boost its sales.  Netflix CEO said it does not have a firm plan yet but intends to try lower prices in some markets.  Netflix plans to inform about its plans soon once completed and its CEO said there will definitely be tests soon.  Netflix is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • PG&E Corporation (PCG) and Edison International (EIX) shares are falling the most in 16 years today as wildfires have spread across northern and southern California. Authorities are reportedly investigating electrical equipment as one of the possible causes of the wildfires. Reportedly, a PG&E transmission line went offline 15 minutes before one of the wildfires was first reported. Susquehanna Financial Group estimates that PG&E could be facing up to USD$5bn in liabilities as a result of the wildfires. 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.
     

 

US Treasuries

  • US 2-Year Treasury Notes are flat with yields little changed 0 basis points to 2.9241%
  • US 5-Year Treasury Bonds are flat with yields little changed 0 basis points to 3.0353%
  • US 10-Year Treasury Bonds are flat with yields little changed 0 basis points to 3.1819%
  • The US Treasury 2s-5s Spread has little changed 0 basis points to 0.11%
  • The US Treasury 2s-10s Spread has little changed 0 basis points to 0.26%
  • US Treasury 5s-10s Spread has little changed 0 basis points to 0.15%

Currencies

  • EUR€ is currently down 0.741% against the USD$ to 1.1252
  • GBP£ is currently down 0.917% against the USD$ to 1.2853
  • CHF is currently down 0.272% against the USD$ to 0.9917
  • JPY¥ is currently little changed against the USD$ at 113.78
     

Commodities

  • WTI Crude is currently up 1.21% to USD$60.92/bbl with the Brent-WTI spread up USD$0.52 to USD$9/bbl
  • Gold is currently down -0.51% to USD$1203.44/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
Nektar Therapeutics Health Care 36.1 5.79%                821,255
Coty Inc Consumer Staples 8.8 3.53%            1,096,560
NRG Energy Inc Utilities 39.6 3.29%                557,964
Conagra Brands Inc Consumer Staples 35.5 3.08%                587,743
FirstEnergy Corp Utilities 39.2 3.03%                396,148
 
Underperformers Sector Price 1D % Chg Volume
PG&E Corp Utilities 33.6 -15.81%            3,121,353
ABIOMED Inc Health Care 341 -15.47%                189,351
Edison International Utilities 55 -9.90%                984,241
Advanced Micro Devices Inc Information Technology 19.2 -8.99%          11,613,401
Broadcom Inc Information Technology 221 -7.59%                599,658