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Trade talk hopes push US stocks higher midday

Nov 13, 2018

 

 

US Market Snapshot

  • Hopes for renewed trade talks between the US and China are pushing US stocks higher midday
  • White House economic adviser Larry Kudlow told CNBC today that there are discussions going on betweens the US and China at "all levels" of government 
  • WTI crude hit a 9-month low in trading today
  • The S&P 500 is currently up 0.66%, Nasdaq Composite is up 0.89%, and Russell 2000 is up 1.03%
  • Industrials (+1.22%), Financials (+1.21%), and Materials (+0.98%) stocks are the top performers in the S&P 500 today
  • Healthcare (-0.13%), Consumer Staples (-0.3%), and Energy (-0.51%) 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 2.65x
  • 73 stocks in the S&P500 are at 4-week highs while 15 stocks are at 4-week lows
  • 15 stocks in the S&P 500 are overbought while 19 stocks are oversold according to the 16-day RSI Measure
  • 47 stocks in the Nasdaq Composite are at 4-week highs while 200 stocks are at 4-week lows
  • 132 stocks in the Nasdaq Composite are overbought while 362 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 19.32 from yesterday's close of 20.45

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Advanced Auto Parts (AAP) reported 3Q results above expectations.  Advanced Auto Parts reported 4Q net sales of USD$2.3 billion, growing 4.3%; consensus was for USD$2.23 billion.  Advanced Auto Parts saw same store sales growth of 4.6%.  Advanced Auto Parts adjusted EPS of USD$1.89 grew 32.2%.  Advanced Auto Parts increased guidance for full year sales growth to 2-2.5%, up from 0-1.5%.  Advanced Auto Parts is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Amazon (AMZN) is set to announce it is choosing Long Island City in New York City and Crystal City in Virginia for its new HQ2.  The decision should be made public today and caps a 14 month selection process that saw cities compete with one another for the 50,000 jobs that are expected to be generated from the project.  In the end, Amazon is splitting between 2 cities due to the fear of not being able to hire enough people if located one single spot.  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.
  • Aramark (ARMK) reported 4Q results that missed expectations.  Aramark reported 4Q adjusted EPS of 70 cents while the expectation was for 72 cents.  Aramark 4Q sales of USD$3.91 billion came below USD$3.95 billion expected.  Aramark hiked its quarterly dividend 5% to 11 cents from 10.5 cents.  Aramark is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Beazer Homes USA Inc. (BZH) shares are soaring today after the homebuilder reported FY4Q2018 revenue 2.7% above the consensus analyst estimate, providing relief to homebuilders across the US. Beazer Homes’ FY4Q2018 revenue of USD$767.9mm surpassed consensus analyst estimates of USD$747.5mm while the firm delivered an EPS of USD$1.84/share. Beazer Homes also announced a USD$50mm stock buyback plan and reports a matching debt buyback plan. Beazer Homes is rated “Neutral" in our US SMID-Cap Global Top Stock Ideas and "Top Short" in our US Consumer Discretionary Global Top Stock Ideas.
  • Boeing (BA) withheld information about potential hazards related to a new flight control feature being implicated in the 737 Max Lion Air crash, according to a report in the Wall Street Journal today.  The system Boeing included in the newest 737 models is designed to help the pilot avoid raising the nose of the airplane too high.  It is being reported that in the unusual situations the system can force the nose of the plane lower so strongly pilots are unable to recover.  Boeing informed airlines of the potential problem only last week in a safety bulletin but, according to the report, not before.  Boeing is rated “Attractive” in both our US Large-Cap and US Industrials Global Top Stock Ideas. 
  • General Electric (GE) shares are trading notably higher after CEO Larry Culp accelerated plants to sell the companies’ stake in Baker Hughes (BHGE) that would raise nearly USD$4bn at current price levels. GE will sell up to 166.2mm shares of Baker Hughes, generating up to USD$3.9bn of desperately needed capital. This news comes as the cost to insure against a default by GE for five years reached 211 basis points, nearly double the cost since two weeks ago, as per credit-default swap data from CMA. GE is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas. Baker Hughes is rated "Neutral" in our US Large-Cap Global Top Stock Ideas
  • Home Depot (HD) reported 3Q results that beat expectations handily.  Home Depot reported same stores sale growth of 4.8%, above 4.7% expected.  Home Depot delivered USD$26.3 billion in revenue also above expectations.  This is the 18th straight quarter that Home Depot has delivered earnings above estimates.  Home Depot increased sales growth expectations for the full year to 7.2%, up from 7%.  Home Depot is rated “Top Buy” in both our US Large-Cap and US Consumer Discretionary Global Top Stock Ideas.
  • Snap (SNAP) lost its executive in charge of its media division.  Nick Bell is the latest departure for the company, he was the VP of Content for the last 5 years, driving the production of original content on Snapchat.  He will leave Snap at the end of the year.  Snap is rated “Unattractive” in both our US Large-Cap and US Information Technology Global Top Stock Ideas. 
  • Tyson Foods Inc. (TSN) shares are trading lower today after reporting guidance for FY4Q2018 that disappointed investors. Tyson expects FY4Q2019 adjusted EPS to range between USD$5.75/share and USD$6.10/share while consensus estimates called for USD$6.05/share. Tyson has dealt with issues associated with falling chicken prices due to sluggish demand as well as the US-Sino trade war, as China, the world’s largest consumer of pork, imposed a tariff on American pork. Tyson is rated “Top Buy" in our US Large-Cap Global Top Stock Ideas and "Attractive" in our US Consumer Staples Global Top Stock Ideas.
     

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -2.47 basis points to 2.89%
  • US 5-Year Treasury Bonds are higher with yields down -3.42 basis points to 3.00%
  • US 10-Year Treasury Bonds are higher with yields down -2.39 basis points to 3.1%
  • The US Treasury 2s-5s Spread has narrowed 0.95 basis points to 0.1%
  • The US Treasury 2s-10s Spread has widened 0.07 basis points to 0.26%
  • US Treasury 5s-10s Spread has widened 1.03 basis points to 0.16%

Currencies

  • EUR€ is currently up 0.597% against the USD$ to 1.1285
  • GBP£ is currently up 1.409% against the USD$ to 1.303
  • CHF is currently up 0.263% against the USD$ to 0.9918
  • JPY¥ is currently little changed against the USD$ at 113.91

Commodities

  • WTI Crude is currently down -4.27% to USD$57.37/bbl with the Brent-WTI spread up USD$1.55 to USD$8.78/bbl
  • Gold is currently little changed 0.21% to USD$1202.84/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
Advance Auto Parts Inc Consumer Discretionary 182.65 9.21%                239,750
EQT Corp Energy 20.36 8.29%            1,032,940
General Electric Co Industrials 8.54 6.42%          12,315,014
NVIDIA Corp Information Technology 200.75 6.05%            2,323,764
Cabot Oil & Gas Corp Energy 26.89 5.91%                956,279
 
Underperformers Sector Price 1D % Chg Volume
Tyson Foods Inc Consumer Staples 58.1 -5.60%                546,091
DaVita Inc Health Care 65.55 -3.81%                136,512
Coty Inc Consumer Staples 8.455 -2.31%                765,090
eBay Inc Consumer Discretionary 28.31 -2.24%            2,263,043
Macy's Inc Consumer Discretionary 36.22 -2.19%                594,472