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Tech share lead rebound in US stocks, breaking 5 day losing streak

Nov 15, 2018

 

 

US Markets End of Day Snapshot

  • US stocks rose strongly during the afternoon, rebounding from losses earlier in the day, led by tech shares on hopes for a better trade scenario
  • The S&P 500 finished up 1.06%, Nasdaq Composite up 1.72%, and Russell 2000 up 1.44%
  • US stocks broke a 5 day losing streak with today's higher close
  • US Commerce Secreatary Wilbur Ross said the best that can be hoped for near-term is a "framework" for further trade talks with China and that the real progress would come when the 2 countries leaders meet one on one 
  • Tech (+2.46%), Energy (+1.48%), and Financials (+1.44%) stocks were the top performers in the S&P 500 today
  • Consumer Staples (-0.33%), Utilities (-0.77%), and Real Estate (-0.9%) stocks were the worst performers in the S&P 500 today
  • Investor sentiment for US stocks finished positive with the advance/decline ratio for the S&P 500 closing at 3.07x
  • 50 stocks in the S&P 500 hit 4-week highs while 43 stocks reached 4-week lows
  • 11 stocks in the S&P 500 closed overbought while 25 stocks closed oversold according to the 16-day RSI Measure
  • 41 stocks in the Nasdaq Composite hit 4-week highs while 237 stocks reached 4-week lows
  • 116 stocks in the Nasdaq Composite closed overbought while 467 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed down 1.24 points today at 20.01 after closing at 21.25 yesterday

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 spply 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.
  • Aston Martin Lagonda (LSE: AML) shares are falling after reporting FY3Q2018 financials that disappointed investors, despite nearly doubling sales y/y. Aston Martin reported net income of 282.4mm pounds for the quarter, a y/y increase of 81% while its sales nearly doubled to 1.776bn pounds. What disappointed investors, however, were Aston Martin’s profitability guidance, as the luxury car manufacturer’s adjusted EBITDA margin of 19% largely missed its target for the quarter of 23%. Aston Martin is not rated in our Global Top Stock Ideas. 
  • Bovis Homes (LSE: BVS) shares are declining after the company said that uncertainty surrounding Brexit impacted discretionary spending in Europe. As a result of the uncertainty, Bovis Homes changed its strategy for the second half of the fiscal year to increase its use of part exchange deals, which involves trading in one’s home as part of a payment for a new property. Bovis Homes stressed that it maintained its rate of sales for the second half of the fiscal year. Bovis Homes is rated “Neutral” in our United Kingdom All-Cap 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.
  • Credit Suisse Group (SWX: CSGN) shares are negative after reports are breaking that the Swiss bank is deliberating hundreds of job cuts. Citing people familiar with the matter, the job cuts could come as early as this year as a part of CEO Tidjane Thiam’s initiative to cut expenses, which is now extending into its fourth year. Credit Suisse did not comment on the story. Credit Suisse is rated “Neutral” in our European Large-Cap 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.
  • Facebook (FB) is facing mounting criticism after the New York Times published a lengthy article on its efforts to combat criticism against it.  Facebook employed firms that encourage media outlets to look into allegations against those figures criticizing Facebook.  Facebook has been accused of spreading misinformation as part of its efforts and today was forced to issue a length rebuttal in response to the article.  Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Goldman Sachs’ (GS) CEO David Solomon said “I am personally outraged that any employee of the firm would undertake the actions spelled out in the government’s pleading” when discussing fraud allegations in Malaysia.  Goldman Sachs has seen its stock fall for 5 consecutive days as the allegations weigh on its reputation.  On Monday the Finance Minister of Malaysia said the country would seek a refund of all fees it paid Goldman Sachs in conjunction with 1MDB deals where the fraud allegedly took place.  Goldman Sachs is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas
  • Henkel AG (XTRA: HEN3) shares are posting slight gains in relief of a reported quarterly profit that kept the firm on track to meet its 2018 growth guidance. Henkel generated y/y EPS growth of 2.6% to 1.58 euros/share while reporting organic y/y sales growth of 2.7% to 5.04bn euros. Henkel AG also saw its EBIT margin improve by 40 basis points to 18.4%. Henkel is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Hugo Boss (BOSS GR) announced that it will pay more attention to fashion trends and avoid the fashion mistakes it made in 2015 and 2016.  Hugo Boss will speed up production, personalize clothes more and boost its e-commerce effort significantly.    Hugo Boss guidance is for sales growth of 5-7% for the next 4 years as it seeks to move closer to the “fast fashion” models of other successful retailers.  Hugo Boss is rated “Attractive” in our SMID-Cap 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.
  • Netapp (NTAP) shares are plunged over 10% today after 2Q results came a touch above estimates.  Netapp delivered 2Q net revenue of USD$1.52 billion versus USD$1.51 billion expected, while EPS od USD$1.06 came a bit above 99 cents expected.  Netapp 3Q guidance of net revenue of USD$1.55-1.65 billion and 3Q EPS of USD$1.12-1.18 are in line with consensus.  Analyst comments on the results were generally constructive while expectations remain high.  Netapp is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology 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.
  • Tencent (700 HK, TCEHY) backed Mogu Inc. has reduced its valuation target for its IPO.  Mogu is seeking a USD$2 billion valuation, half the USD$4 billion target when the deal was first announced earlier in the year.  Mogu is an online retailer of fashion and cosmetics with 62.6 million active users.  Tencent is rated “Attractive” in our China All-Cap 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.
  • Wells Fargo (WFC) announced it is cutting 1,000 jobs in its consumer lending and tech-payments units.  Wells Fargo is making the cuts as part of its CEO announcement to trim up to 10% of the company’s workforce over the next 3 years.  Wells Fargo seeks to streamline operations with the reductions.  Wells Fargo is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
     

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -1.03 basis points to 2.85%
  • US 5-Year Treasury Bonds are higher with yields down -1.88 basis points to 2.93%
  • US 10-Year Treasury Bonds are higher with yields down -1.28 basis points to 3.11%
  • The US Treasury 2s-5s Spread has narrowed 0.85 basis points to 0.08%
  • The US Treasury 2s-10s Spread has narrowed 0.25 basis points to 0.26%
  • US Treasury 5s-10s Spread has widened 0.6 basis points to 0.17%

Currencies

  • EUR€ is up 0.195% against the USD$ in after hours to 1.1332
  • GBP£ is down 1.632% against the USD$ in after hours to 1.278
  • CHF is little changed 0.04% against the USD$ in after hours to 0.9936
  • JPY¥ is little changed 0.035% against the USD$ in after hours to 113.59

Commodities

  • WTI Crude is up 0.37% to USD$56.46/bbl with the Brent-WTI spread up USD$1.32 to USD$9.29/bbl
  • Gold is little changed 0.19% to USD$1213.2/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
Arista Networks Inc Information Technology 244.2 6.40%                306,329
Take-Two Interactive Software Inc Communication Services 113.06 6.08%            1,696,011
Xilinx Inc Information Technology 88.51 5.63%            1,661,923
Cisco Systems Inc Information Technology 46.77 5.50%          14,561,955
Micron Technology Inc Information Technology 39.91 4.94%            8,785,071
 
Underperformers Sector Price 1D % Chg Volume
PG&E Corp Utilities 17.74 -30.68%          13,854,415
Edison International Utilities 47.19 -12.40%            1,598,150
NetApp Inc Information Technology 68.88 -11.73%            3,325,979
PPL Corp Utilities 30.5 -5.22%            2,598,515
Lennar Corp Consumer Discretionary 39.53 -5.00%            1,726,083