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US stocks fall with oil futures plunging over 7% today

Nov 13, 2018

 

 

US Markets End of Day Snapshot

  • US stocks traded higher in the morning session but lost steam and turned negative in the afternoon as oil futures plunged
  • Oil futures fell over 7% today, the biggest single-day loss in 3 years on growing fears of an oil glut through the next year
  • Oil has fallen for 12 consecutive days, an unprecedented losing streak
  • The S&P 500 finished down 0.15%, Nasdaq Composite up 0%, and Russell 2000 is down 0.26%
  • Financials (+0.59%), Industrials (+0.45%), and Utilities (+0.35%) stocks were the top performers in the S&P 500 today
  • Consumer Staples (-0.37%), Healthcare (-0.68%), and Energy (-2.39%) stocks were the worst performers in the S&P 500 today
  • Investor sentiment for US stocks finished neutral with the advance/decline ratio for the S&P 500 closing at 1.04x
  • 73 stocks in the S&P 500 hit 4-week highs while 15 stocks reached 4-week lows
  • 15 stocks in the S&P 500 closed overbought while 19 stocks closed oversold according to the 16-day RSI Measure
  • 47 stocks in the Nasdaq Composite hit 4-week highs while 200 stocks reached 4-week lows
  • 132 stocks in the Nasdaq Composite closed overbought while 362 stocks closed oversold according to the 16-day RSI Measure
  • The VIX is currently moving up at 20.02 from yesterday's close of 19.32

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 (AAP) was reiterated outperform at RBC today.  RBC notes that Advanced Auto Parts' strong 3Q results are enough to keep its momentum going.   Advanced Auto Parts' gross margins are starting to expand, and that expansion is expected to continue.  Advanced Auto Parts was reiterated as outperform at Morgan Stanley today, also highlighting the margin expansion.  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.
  • Alphabet (GOOGL) unit Waymo will launch a commercial driverless car service in the next 2 months.  The service will cater to both individuals looking for rides and business looking to pay to shuttle customers to their stores.  The announcement from Alphabet came at a Wall Street Journal conference today.  Waymo will initiate the service in Phoenix, where it has done millions of miles of testing, and it will expand from there.  Waymo said one aspect of the pilot that surprised them was how many businesses, including Walmart (WMT) and AutoNation (AN), are willing to pay to bring customers to their businesses.  Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. Walmart is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.  AutoNation is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Unattractive” 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 in one location.  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.
  • Ambu A/S (CPSE: AMBU B) shares are falling after reporting full-year EBIT that missed the lowest analyst estimate. Ambu reported full-year EBIT of 563mm kronor while analyst estimates ranged between 568mm kronor and 605mm kronor. Ambu also announced a full-year dividend of 0.40 kronor/share. Ambu is rated “Neutral” in our European Large-Cap 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.
  • Bayer AG (DB: BAYN) shares are trading flat after announcing CY3Q2018 financials that surpass the highest analyst estimates. Bayer reports CY3Q2018 adjusted EBITDA of 2.20bn euros while analyst estimates ranged between 1.97bn euros and 2.14bn euros, with consensus calling for 2.04bn euros. Bayer’s sales, however, fell short of the CY3Q2018 consensus estimate of 9.99bn euros, reporting CY3Q2018 sales of 9.91bn euros. Bayer is rated “Neutral” in our European Large-Cap 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 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. 
  • Experian PLC (LSE: EXPN) shares are seeing their largest intraday gains in six months after the company increased its guidance of the full-year. Experian sees its full-year organic revenue growth in-line with the first half of FY2019’s and at the higher-end of its previous guidance. In the first half of FY2019, Experian reported a dividend of 14.00 eurocents/share. Experian is rated “Attractive” in our European Large-Cap Global Top Stock Ideas and “Top Buy” in our United Kingdom All-Cap Global Top Stock Ideas.  
  • Facebook (FB) said today it removed 141 accounts before the election after being informed about them from federal authorities.  Facebook said they were informed they may be from the same Russia group that is suspected of having tried to influence the 2016 election.   Facebook said that they were tipped off by the FBI on November 4th about the suspicious online activity.  Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology 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.
  • Johnson Controls (JCI) has completed its transformation from automotive parts manufacturer to a provider of building systems.  Johnson Controls completed its USD$13.2 billion sale of its battery unit and now is expected to pay down as much as USD$3.5 billion in debt with the proceeds as well as make any acquisition that makes sense.  Johnson Controls is not rated in our Global Top Stock Ideas.
  • Nordex SE (XTRA: NDX1) shares are tumbling after the turbine manufacturer suffered from the declining cost of generating wind power. Nordex SE saw EBITDA fall more than 60% from a year ago to 71.4mm euros while its sales fell 25% from a year ago to 1.77bn euros. Nordex’s CY2018 revenue guidance of between 2.4bn euros and 2.6bn euros also disappointed investors. Nordex is rated “Neutral” in our European SMID-Cap 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. 
  • Swedish Match AB (OM: SWMA) shares are falling today after FDA commissioner Scott Gottlieb said at an event in Washington, DC that action on flavored cigars should be expected. This comes after Swedish Match detailed in its CY3Q2018 financial presentation that it expects to continue robust growth in the US cigar market for the full-year. Swedish Match is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas. 
  • Telecom Italia (BIT: TIT) shares are trading lower after CEO Amos Genish was removed following a dispute with investor Elliott Management Corporation. Genish faced issues with Elliot Management amid his plans to split off Telecom Italia’s landline network. After a hastily arranged conference call earlier Tuesday, Telecom Italia’s board of directors voted 10 to 5 in favor of Genish’s removal. Telecom Italia is rated “Top Short” in our European Large-Cap 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.
  • Vodafone (LSE: VOD) shares are trading higher after analysts were pleased with the company’s ability to cut operating costs and maintain its dividend. Vodafone announced a dividend of 4.64 eurocents/share for the quarter while the firm intends to report a dividend of 15.07 eurocents/share for the full year. For the first half of the fiscal year, Vodafone reported an EBITDA of 7.08bn euros while the company forecasted 7.03bn euros. Vodafone is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • YY Inc (YY) provided guidance that met consensus.  YY sees 4Q revenue of 4.39-4.54 billion yuan while consensus is for 4.5 billion yuan.  YY reported 3Q results that were a bit above expectations.  YY 3Q EPS of USD$1.70 was above USD$1.76, 3Q net revenue of USD$597.4 billion came above USD$575mn estimates.  YY is rated “Unattractive” in our China All-Cap Global Top Stock Ideas.

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -3.3 basis points to 2.89%
  • US 5-Year Treasury Bonds are higher with yields down -5.13 basis points to 2.9%
  • US 10-Year Treasury Bonds are higher with yields down -4.22 basis points to 3.13%
  • The US Treasury 2s-5s Spread has narrowed 1.83 basis points to 0.09%
  • The US Treasury 2s-10s Spread has narrowed 0.91 basis points to 0.25%
  • US Treasury 5s-10s Spread has widened 0.91 basis points to 0.16%
     

Currencies

  • EUR€ is up 0.615% against the USD$ in after hours to 1.1287
  • GBP£ is up 0.887% against the USD$ in after hours to 1.2963
  • CHF is up 0.354% against the USD$ in after hours to 0.9927
  • JPY¥ is little changed 0.026% against the USD$ in after hours to 113.81

Commodities

  • WTI Crude is down -7.07% to USD$55.69/bbl with the Brent-WTI spread up USD$1.19 to USD$8.31/bbl
  • Gold is little changed 0.2% to USD$1202.81/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
Advance Auto Parts Inc Consumer Discretionary 184.72 10.57%                543,652
General Electric Co Industrials 8.61 7.75%          34,504,393
NVIDIA Corp Information Technology 199.31 5.15%            4,247,487
Cabot Oil & Gas Corp Energy 26.49 4.33%            2,822,804
Edison International Utilities 55.54 3.69%                850,283
 
Underperformers Sector Price 1D % Chg Volume
Coty Inc Consumer Staples 8.16 -5.66%            2,695,789
Tyson Foods Inc Consumer Staples 58.17 -5.58%            1,749,504
Halliburton Co Energy 32.27 -5.53%            5,769,678
DaVita Inc Health Care 64.47 -5.47%                444,562
TechnipFMC PLC Energy 23.53 -5.01%            1,383,244