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US stocks turn negative on fresh trade concerns, tech weakness

Nov 14, 2018

 

Market data as of 12:15pm EST

US Market Snapshot

  • US stocks opened the day positive, but turned negative on fresh trade conerns relating to the new USMCA, the updated NAFTA agreement
  • New Jersey Representative Bill Pacrell, expected to chair the House Ways and Means Committee, said the USMCA needs "not only changes in the legislation but more enforcement"; markets turned negative after his comments
  • Tech shares were weak with Apple (AAPL) down over 2.5% on growth concerns
  • The S&P 500 is currently down 0.56%, Nasdaq Composite is down 0.51%, and Russell 2000 is down 0.53%
  • Telecom (+0.06%), Industrials (+0.06%), and Consumer Discretionary (+0.01%) stocks are the top performers in the S&P 500 today
  • Financials (-0.61%), Tech (-0.7%), and Utilities (-1.1%) 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 0.57x
  • 44 stocks in the S&P500 are at 4-week highs while 28 stocks are at 4-week lows
  • 14 stocks in the S&P 500 are overbought while 24 stocks are oversold according to the 16-day RSI Measure
  • 49 stocks in the Nasdaq Composite are at 4-week highs while 202 stocks are at 4-week lows
  • 124 stocks in the Nasdaq Composite are overbought while 339 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving up at 20.78 from yesterday's close of 20.02

Stocks Trending in the News

Click name for Q-Factor rating and financials data.

  • Amazon (AMZN) will see the first protest in New York City today over its new campus planned for Long Island City in Queens.   Some local politicians want guarantees from Amazon that it will do all it can to benefit the citizens of Queens and plan to demand that today.  They complain that the area cannot handle 25,000 new people, especially given the state of the subways, saying Amazon is building a helipad while residents are stuck with overcrowded trains.  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 (AAPL) was downgraded at Guggenheim today to neutral from buy.  The note cites supply chain cuts and the lower deliveries of phones it implies.  Apple was also had its price target lowered at UBS to USD$225, also citing supply chain concerns.  Apple is rated “Attractive” in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Canada Goose (TSX: GOOS) shares are soaring after the winter clothing manufacturer reported earnings that topped analysts’ estimates for the seventh straight quarter. Canada Goose generated FY2Q2018 adjusted EPS of CAD$0.46/share while analysts’ consensus called for CAD$0.26/share. Canada Goose’s profitability also surpassed analyst expectations, reporting FY2Q2018 gross margin of 55.8% while analysts expected 52.8%. Canada Goose is not rated in our Global Top Stock Ideas.
  • Caterpillar (CAT) was maintained as a buy at Credit Suisse in a note to clients.  Caterpillar’s price target was updated to USD$183 as well.  Caterpillar saw October machines sales rise 18%, this follows a 21% rise in September.  Caterpillar is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Facebook’s (FB) turbulent year is bleeding into employee morale with several key measures of internal sentiment taking a turn for the worse this year. Amid a falling stock price, troubled leadership, and harsh media coverage, only about 50% of Facebook’s 23,000 employees said they were optimistic about Facebook’s future, down from 82% the year before. Meanwhile, 53% of employees believe that Facebook is making the world better, down from 72% in 2017. Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Bloomindale's, a unit of Macy's (M), is adding high end appliances to its store in New York City.  Bloomingdale's is following other retailers in adding appliances to its offerings.  The Macy's unit will offer USD$7,000 refrigerators from LG and washing machines that automatically figure out how much soap is needed.  Bloomindale's hopes to spark sales by adding the new products.  Macy's shares are trading higher after the company announced strong FY3Q2018 financials that detailed positive comparable same-store sales growth.  Macy’s generated an unexpected comparable same-store y/y sales growth of 3.3%. Macy’s also boosted its full-year guidance, raising full-year adjusted EPS forecasts from between USD$3.95/share and USD$4.15/share to between USD$4.10/share and USD$4.30/share. Macy’s is rated “Neutral” in both our US Large-Cap Global Top Stock Ideas and US Consumer Discretionary Global Top Stock Ideas. 
  • PG&E Corporation (PGC) shares are spiraling downward, falling over 25%, as investors are fearing the possibility that the company’s equipment started the wildfire(s) raging through California.  PG&E also announced that it has exhausted all of its revolving credit lines, speaking further to the company’s financial stress. “The risk of bankruptcy is very real for these guys,” says Bloomberg Intelligence analyst Jaimin Patel. PG&E is rated “Attractive’ in our US Large-Cap Global Top Stock Ideas.  
     

 

US Treasuries

 

  • US 2-Year Treasury Notes are higher with yields down -2.06 basis points to 2.87%
  • US 5-Year Treasury Bonds are higher with yields down -2.22 basis points to 2.96%
  • US 10-Year Treasury Bonds are higher with yields down -1.29 basis points to 3.12%
  • The US Treasury 2s-5s Spread has narrowed 0.16 basis points to 0.09%
  • The US Treasury 2s-10s Spread has widened 0.77 basis points to 0.26%
  • US Treasury 5s-10s Spread has widened 0.93 basis points to 0.17%

Currencies

  • EUR€ is currently up 0.195% against the USD$ to 1.1312
  • GBP£ is currently up 0.339% against the USD$ to 1.3021
  • CHF is currently little changed against the USD$ at 0.9934
  • JPY¥ is currently little changed against the USD$ at 113.71

Commodities

  • WTI Crude is currently up 1.58% to USD$56.57/bbl with the Brent-WTI spread up USD$0.71 to USD$9.08/bbl
  • Gold is currently little changed 0.07% to USD$1203.08/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
Coty Inc Consumer Staples 8.83 8.21%            1,445,983
Advanced Micro Devices Inc Information Technology 20.34 3.82%            9,813,450
Twitter Inc Communication Services 33.51 3.13%            1,486,073
BorgWarner Inc Consumer Discretionary 38.96 2.98%                142,306
LKQ Corp Consumer Discretionary 27.7 2.32%                265,838
 
Underperformers Sector Price 1D % Chg Volume
PG&E Corp Utilities 23.52 -28.64%            2,745,030
EQT Corp Energy 16.835 -9.29%            1,055,475
CF Industries Holdings Inc Materials 45.46 -7.78%                581,206
Conagra Brands Inc Consumer Staples 32.69 -7.05%                952,388
Progressive Corp/The Financials 66.92 -6.55%                376,676