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US stocks close lower, pare earlier losses on Brexit progress

Nov 14, 2018

 

 

US Markets End of Day Snapshot

  • US stocks close lower, paring earlier losses as news of progress on Brexit helped markets late day
  • Oil closed higher for the first time in 13 sessions, WTI broke its longest losing streak ever
  • Federal Reserve Chairman Jerome Powell will speak tonight at an event being hosted by the Dallas Fed discussing national and global economic issues
  • The S&P 500 finished down 0.76%, Nasdaq Composite is down 0.9%, and Russell 2000 is down 0.81%
  • The S&P500 closed lower for the fifth straight day and is at its lowest level in 2 weeks
  • Telecom (+0.46%), Real Estate (+0.04%), and Energy (-0.11%) stocks were the top performers in the S&P 500 today
  • Utilities (-1.13%), Tech (-1.29%), and Financials (-1.38%) 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 0.5x
  • 44 stocks in the S&P 500 hit 4-week highs while 28 stocks reached 4-week lows
  • 14 stocks in the S&P 500 closed overbought while 24 stocks closed oversold according to the 16-day RSI Measure
  • 49 stocks in the Nasdaq Composite hit 4-week highs while 202 stocks reached 4-week lows
  • 124 stocks in the Nasdaq Composite closed overbought while 339 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed  down -20.02 points today  to 0 after closing at 20.02 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.

  • Adyen (AYDNA DC) shares are falling today after notable index compiler MSCI refrained from adding Adyen to its MSCI Europe Index benchmark. According to an analyst from Bryan Garnier, who maintains a ‘Sell’ recommendation for Adyen with a price target of 490 euros, some investors were surprised by the news. Adyen is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • 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.
  • AT&T (T) reiterated guidance for 2018 today.  AT&T expects full year EPS in the range of USD$3.50.  AT&T expects full year revenue of USD$21 billion range.  AT&T said the first full quarter with WarnerMedia integrated saw it accretive to earnings by USD$0.05 and AT&T reiterated its expectation of USD$2.5 billion in run-rate synergies by 2021.  AT&T is rated “Attractive” in our US Large-Cap 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.
  • Iliad SA (ENXTPA: ILD) shares are trading higher following FY3Q2018 financials that contained shreds of optimism after the company’s stock has lost half of its value so far in 2018. Specifically, investors were pleased to see strong performance in the company’s Italian unit. Raymond James analyst Stephane Beyazian, who maintains a ‘Strong Buy’ recommendation for Iliad, wrote in a note that FY3Q2018 contained the first signs of recovery for Iliad. Raymond James is rated “Unattractive’ in our European SMID-Cap 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 is rated "Neutral" in both our US Large-Cap and US Consumer Discretionary Global Top Stock Ideas. 
  • L Brands’ (LB) Victoria’s Secret lost its head of lingerie, according to a report in Bloomberg today.  Jan Singer ran the lingerie division at Victoria’s Secret, a unit with USD$4 billion is annual sales.  Victoria’s Secret has been criticized for not adapting to shifting tastes in lingerie.  L Brands had no comment on the matter, Ms. Singer has been with the company for 2 years.  L Brands is rated “Unattractive” in both our US Large-Cap and US Consumer Discretionary Global Top Stock Ideas.
  • Merck (MRK GR) cut its full year adjusted ebitda forecast while raising its net sales guidance.  Merck expects full year adjusted ebitda 3.7-3.9 billion euros, down from 3.75-4 billion euros.  Merck now expects organic net sales to grow 4-6%, up from 3-5%.  Merck said adverse forex effects will lower adjusted ebitda by 8-10%.  Merck is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Mediaset (BIT: MS) shares are trading higher after reported FY3Q2018 financials the pleased investors. Mediaset reported an EBIT loss of 9.1mm euros in FY3Q2018, an improvement from their 42.2mm euros EBIT loss a year prior. Mediaset’s failure to retain football broadcasting rights, however, caused advertising revenues in October fell 1% y/y. Mediaset is rated “Neutral” in our European SMID-Cap 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.  
  • Snap (SNAP) shares fell amid confirmation from the company that the Department of Justice and Securities and Exchange Commission is investigating its IPO.  Both are looking into allegation that Snap misled investors leading up to its IPO.   Snap said it believes this relates to disclosures it made in relation to competition from Instagram, now part of Facebook (FB).  Reports are that Snap was not clear about how much Instagram was hurting its business.  Snap is rated “Unattractive” in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Superior Industries (SUP) was upgraded today to buy from neutral at Buckingham.  Superior Industries’ price target was lowered to USD$12 from USD$19, however.  Superior Industries’ high leverage ratio was cited as a concern by Buckingham, which also said 3Q results were right in line and that recent weakness in the stock “was overdone”.  Superior Industries is rated “Top Buy” in both our US SMID-Cap and US Consumer Discretionary Global Top Stock Ideas.
  • Tata Motors (TTMT IN) had its outlook cut to negative from stable at Moody’s Investors Service.  Tata Motors saw the cut due to weakness expected at its Jaguar Land Rover Automotive Plc over the next 12-18 months.  Tata Motors had its rating reaffirmed at Baa2.  Tata Motors is not rated in our Global Top Stock Ideas.
  • Tencent (700 HK, TCEHY) reported 3Q net income that beat the highest estimates.  Tencent reported net income of 23.33 billion yuan while 18.39 billion as consensus.  Tencent 3Q revenue of 8.6 billion yuan was in line with 80.41 billion yuan expected.   Tencent saw 3Q online gaming revenue of 25.8 billion yuan, online advertising revenue of 16.2 billion and smart phone gaming revenue of 19.5 billion yuan.  Tencent is rated “Attractive” in our China All-Cap Global Top Picks.
  • Wirecard (WDI GR) shares are sliding despite raising guidance.  Wirecard raised its operating profit forecast and investors have not been impressed.  Morgan Stanley noted the increased guidance “a minor positive” given that most estimates were already above that.  Wirecard entered the DAX in September.  Wirecard is rated “Attractive” in our European Large-Cap Global top Stock Idea.

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -2.48 basis points to 2.86%
  • US 5-Year Treasury Bonds are higher with yields down -2.73 basis points to 2.95%
  • US 10-Year Treasury Bonds are higher with yields down -1.47 basis points to 3.12%
  • The US Treasury 2s-5s Spread has narrowed 0.25 basis points to 0.09%
  • The US Treasury 2s-10s Spread has widened 1.01 basis points to 0.26%
  • US Treasury 5s-10s Spread has widened 1.26 basis points to 0.17%
     

Currencies

  • EUR€ is up 0.213% against the USD$ in after hours to 1.1314
  • GBP£ is little changed 0.139% against the USD$ in after hours to 1.2995
  • CHF is little changed 0.131% against the USD$ in after hours to 0.9943
  • JPY¥ is down 0.193% against the USD$ in after hours to 113.59

Commodities

  • WTI Crude is up 1.01% to USD$56.25/bbl with the Brent-WTI spread little changed USD$0.11 to USD$8.65/bbl
  • Gold is up 0.71% to USD$1210.79/

 

*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
Coty Inc Consumer Staples 8.7 6.61%            4,001,304
Advanced Micro Devices Inc Information Technology 20.81 6.11%          22,048,335
BorgWarner Inc Consumer Discretionary 39.18 3.51%                575,026
Newmont Mining Corp Materials 32.4 3.15%            1,501,046
Cimarex Energy Co Energy 86.57 2.59%                242,887
 
Underperformers Sector Price 1D % Chg Volume
PG&E Corp Utilities 25.59 -21.79%            6,671,828
Progressive Corp/The Financials 64.8 -9.48%            1,695,117
CF Industries Holdings Inc Materials 45.03 -8.55%            1,325,168
Conagra Brands Inc Consumer Staples 32.64 -7.25%            2,614,813
Macy's Inc Consumer Discretionary 33.22 -7.18%            4,040,411