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US stocks mixed, off morning lows, with tech shares catching a bid

Nov 15, 2018

 

Market data as od 12:15pm EST

US Market Snapshot

  • US stocks are mixed at midday, up from earlier lows as the tech sector catches a bid, led by Cisco Systems' (CSCO) 4% rally on strong results
  • The turmoil around Brexit continues to weigh on markets as Prime Minster May tries to sell the agreement to her cabinet
  • The S&P 500 is currently up 0.06%, Nasdaq Composite is up 0.57%, and Russell 2000 is up 0.45%
  • Tech (+1.27%), Materials (+0.68%), and Financials (+0.66%) stocks are the top performers in the S&P 500 today
  • Consumer Staples (-0.59%), Real Estate (-0.82%), and Consumer Discretionary (-1.36%) 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 1.33x
  • 50 stocks in the S&P500 are at 4-week highs while 43 stocks are at 4-week lows
  • 11 stocks in the S&P 500 are overbought while 25 stocks are oversold according to the 16-day RSI Measure
  • 41 stocks in the Nasdaq Composite are at 4-week highs while 237 stocks are at 4-week lows
  • 116 stocks in the Nasdaq Composite are overbought while 467 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 21.13 from yesterday's close of 21.25

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Amazon (AMZN) continues to receive criticism around the New York metropolitan area for the amount of subsidies it is receiving for the move to Long Island City, Queens.  New York state Senator Kirsten Gillibrand believed to be considering a presidential run in 2020, criticized he deal in a tweet yesterday.  Amazon reports on its site that New York government-state and city-are providing USD$48,000 per expected created job, an enormous sum for the protesting politicians.  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) is actively recruiting engineers in San Diego, the home of Qualcomm (QCOM).  Apple is seeking mobile chip designers, an effort designed to further weaken Qualcomm’s ability to ever supply chips to Apple again.  Apple and Qualcomm are due to face off in court in 2019 over their chip supply contracts, this after Apple stopped buying chips from Qualcomm.  Both parties are alleging the other owes it vast sums.  Apple is rated “Neutral” in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Cisco Systems Inc. (CSCO) shares are trading higher after reporting FY1Q2019 financials that largely pleased investors. In FY1Q2019, Cisco generated top-line revenue of USD$13.07bn while analysts expected revenue of USD$12.87bn with estimates ranging between USD$12.73bn and USD$12.95bn. Cisco’s adjusted EPS of USD$0.75/share was also enough to surpass consensus analyst expectations of USD$0.72/share. Cisco is rated as “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Energizer Holdings Inc. (ENR) shares are falling after reporting mixed FY4Q2018 financials. Energizer reported FY4Q2018 net sales of USD$457.2mm while analyst consensus called for USD$459.6mm. Despite missing expectations on sales, Energizer generated FY4Q2018 EPS of USD$0.83/share, surpassing analyst expectations of USD$0.81/share. Energizer is rated as “Neutral” in both our US Large-Cap Global Top Stock Ideas and US Consumer Staples Global Top Stock Ideas.
  • J.C. Penney Company Inc. (JCP) shares are trading slightly higher despite announcing FY3Q2018 financials that mostly missed analyst expectations. J.C. Penney reported FY3Q2018 sales of USD$2.65bn while analysts expected revenue of USD$2.81bn. J.C. Penney’s profitability managed to beat analyst expectations in FY3Q2018, however, reporting a loss per share of USD$0.52 while analysts expected a loss per share of USD$0.56. J.C. Penney’s credit risk is currently at an all-time high -- the cost of insuring USD$10mm of J.C. Penney debt surged to USD$5.7mm upfront and USD$500,000 annually, indicating a 99% probability of default. J.C. Penney is rated as “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US SMID-Cap Global Top Stock Ideas. 
  • KB Home (KBH) shares are falling the most in 3 years after the home builder lowered its financial forecasts on a call with investors, citing lowered demand for housing and an unclear future outlook. As a result of the lowered guidance, Bank of America cut its recommendation for KB Home from buy to neutral while lowering its price target from USD$26/share to USD$24/share -- the USD$24/share price target recommends a 15% premium to yesterday’s close. KB Home is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Lockheed Martin (LMT) announced it was awarded a contract for 255 additional F-35 fighter jets.  Lockheed Martin’s contract is valued at USD$22.7 billion and it will receive a USD$6 billion advance as part of the agreement.  Lockheed Martin will deliver 106 of the aircraft to the US military branches with the balance going to allied foreign customers.  Lockheed Martin was also awarded a contract for an additional eight MH-60R helicopters, a contract valued at USD$382mn.  Lockheed Martin is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Netease (NTES) reported 3Q results that beat expectations.  Netease 3Q earnings per ADR of USD$2.55 came above USD$2.46 expected.  Netease 3Q revenue of USD$2.45 billion beat USD$2.40 billion consensus.  Netease 3Q gross profit came at USD$1.1billion.  Netease approved a dividend of USD$0.45 per ADR and approved a USD$1 billion buyback program.  Netease is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Oracle (ORCL) lost a challenge to the Pentagon’ USD$10 billion cloud contract.  Oracle complained to the US General Accounting Office alleging that the process unfairly favored Amazon (AMZN) and violated the government’s procurement standards.  The General Accounting Office ruled against Oracle Wednesday, leaving the Pentagon to seek a single provider as it has been doing.  Oracle is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Walmart Inc. (WMT) reported CY3Q2018 financials that generally pleased investors. Walmart reports CY3Q2018 comparable y/y same store sales growth of 3.4%, surpassing analyst estimates. Notably, Walmart changed its indefinite comparable same store sales growth guidance from “about 3%” to “at least 3%”. Walmart generated an adjusted EPS of USD$1.08/share in CY3Q2018 while analyst consensus called for USD$1.01/share -- this excludes a one-time loss from the acquisition of JD.com.  Walmart also raised its full-year adjusted EPS guidance from between USD$4.65/share and USD$4.80/share to between USD$4.75/share and USD$4.85/share. 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.

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -2.07 basis points to 2.84%
  • US 5-Year Treasury Bonds are higher with yields down -2.9 basis points to 2.92%
  • US 10-Year Treasury Bonds are higher with yields down -2.38 basis points to 3.10%
  • The US Treasury 2s-5s Spread has narrowed 0.83 basis points to 0.08%
  • The US Treasury 2s-10s Spread has narrowed 0.31 basis points to 0.26%
  • US Treasury 5s-10s Spread has widened 0.52 basis points to 0.17%

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1313
  • GBP£ is currently down 1.87% against the USD$ to 1.2749
  • CHF is currently little changed against the USD$ at 0.9937
  • JPY¥ is currently little changed against the USD$ at 113.52

Commodities

  • WTI Crude is currently little changed 0.25% to USD$56.39/bbl with the Brent-WTI spread up USD$1.98 to USD$9.71/bbl
  • Gold is currently little changed 0.19% to USD$1213.24/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
Symantec Corp Information Technology 23.55 4.83%            1,354,318
Arista Networks Inc Information Technology 238.62 3.88%                  51,793
Broadcom Inc Information Technology 234.9 3.77%                323,233
Cisco Systems Inc Information Technology 46.1 3.76%            5,938,963
Micron Technology Inc Information Technology 39.48 3.70%            3,077,875
 
Underperformers Sector Price 1D % Chg Volume
PG&E Corp Utilities 19.41 -24.23%            5,788,181
NetApp Inc Information Technology 69.71 -10.88%            1,636,746
Garrett Motion Inc #N/A N/A 12.75 -5.56%                  56,841
Lennar Corp Consumer Discretionary 39.51 -5.29%                526,162
Edison International Utilities 51.53 -4.38%                431,652