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US stocks turn negative as weak tech outlook and retail results weigh on sentiment

Nov 16, 2018

 

Market data as of 12:15pm EST

US Market Snapshot

  • US stocks turn negative after meager gains earlier in the day, with the poor outlook from tech companies and weak retail results weighing on investor sentiment
  • The S&P 500 is currently down 0.26%, Nasdaq Composite is down 0.75%, and Russell 2000 is down 0.82%
  • Federal Reserve Vice Chairman Richard Clarida said today that interest rate policy is getting close to neutral and there is some evidence that the global economy is cooling
  • Utilities (+1.14%), Real Estate (+0.95%), and Healthcare (+0.67%) stocks are the top performers in the S&P 500 today
  • Industrials (-0.58%), Telecom (-1.01%), and Consumer Discretionary (-1.09%) 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 0.84x
  • 31 stocks in the S&P500 are at 4-week highs while 51 stocks are at 4-week lows
  • 12 stocks in the S&P 500 are overbought while 16 stocks are oversold according to the 16-day RSI Measure
  • 49 stocks in the Nasdaq Composite are at 4-week highs while 185 stocks are at 4-week lows
  • 115 stocks in the Nasdaq Composite are overbought while 371 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 19.64 from yesterday's close of 19.98

Stocks Trending in the News

Click name for Q-Factor rating and financials data.

  • Anadarko Petroleum (APC) cut its spending by 3% next year and will apply the spending cut to buybacks and payouts.  Anadarko Petroleum is targeting UD$4.5 billion in spending, USD$150mn less than initially expected.   Despite cutting spending, output is expected to grow 10% next year with its dividend growing at twice that rate.  Anadarko Petroleum is benefitting from additional shale wells increasing production.  Anadarko Petroleum is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Applied Materials (AMAT) provided guidance for 1Q revenue below consensus.  Applied Materials sees first quarter sales of USD$3.56-3.86 billion which is below present consensus of USD$3.96 billion.  Adjusted earnings per shares will be 75-83 cents while consensus is 92 cents.  Applied Materials’ CEO said “near-term” market headwinds remain”.  Applied Materials is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • BlackBerry (BB) confirmed its acquisition of Cylance Inc.  BlackBerry will pay USD$1.4 billion for the cybersecurity firm as it seeks to bolster its artificial intelligence capabilities.  This purchase is BlackBerry’ largest acquisition in 7 years.  BlackBerry is not rated in our Global Top Stock Ideas.
  • Boeing’s (BA) bulletin advising airlines about the sensor problem implicated in the Lion Air crashed has caused Chinese aviation authorities to order all airlines flying the 737 Max to update flight manuals.  Boeing advised how to deal with a potential malfunction of the sensor that can force the nose of the plane lower unexpectedly.  China is ordering airlines to address this immediately.  Boeing is rated “Attractive” in both our US Large-Cap and US Industrials Global Top Stock Ideas.
  • Microsoft (MSFT) is the current favorite tech giant among hedge funds after 3Q 13F filings revealed that money managers moved away from companies like Alphabet Inc. (GOOGL) and Amazon.com (AMZN) In favor of the old-school stalwart. As of 3Q, hedge funds invested USD$24.6bn of capital in Microsoft, followed closely by Alphabet with USD$24.5bn and Amazon trailing behind with USD$17.5bn.  Microsoft is rated “Neutral in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. Alphabet is rated “Neutral in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. 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.
  • Nordstrom Inc. (JWN) shares are plunging after reporting FY3Q2018 financials that largely disapointed investors. Nordstrom reported FY3Q2018 revenue of USD$3.75bn while analyst consensus called for USD$3.69bn. Comparable sales growth of 2.3% in FY3Q2018 for Nordstrom missed analyst consensus by 10 basis points while the retailer's FY3Q2018 gross margin of 33.3% missed analysts’ consensus of 34.2%. Nordstrom is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Nvidia (NVDA) gave a disappointing forecast for the coming quarter with analysts commenting that there is evidence of a loss of demand in the guidance.  Nvidia sees USD$2.7 billion in revenue while the average estimate of analysts is USD$34 billion.  Nvidia said it expects sellers to lower prices to clear out excess inventory that grew to USD$1.42 billion, up from USD$1.09 billion last quarter.  Nvidia is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • PG&E (PCG) shares are soaring the most in 17 years after the head of California’s Public Utilities Commission said that he could not imagine allowing PG&E to go bankrupt. PG&E shares have tanked this week on speculation that the utility company’s equipment started the deadly Camp Fire raging through California. PG&E is rated “Attractive” in our US Large-Cap Global Top Stock Ideas. 
  • Viacom (VIAB) reports FY4Q2018 financials pre-market and delivers full-year consolidated income growth for the first time since 2014. In FY4Q2018, Viacom saw revenue increase 5% y/y to USD$3.49bn from USD$3.32bn a year ago. Driving the 5% y/y revenue increase was Viacom’s Paramount Pictures business, which saw double digit y/y bottom-line income growth to USD$241mm. Investors appear to be reacting positively to the financials release with Viacom trading higher pre-market. Viacom is rated “Unattractive’ in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Williams-Sonoma (WSM) shares are seeing its largest losses in a year after analysts slashed its price targets following lagged comparable sales growth that eclipsed an EPS beat for FY3Q2018.  Williams-Sonoma's price target was lowered by both Stifel and Deutsche Bank to USD$60 from USD$65. William Blair highlighted that timing differences between orders and deliveries could have had an adverse impact on comparable sales growth. Williams-Sonoma is rated “Neutral” in both our US Large-Cap Global Top Stock Ideas and US Consumer Discretionary Global Top Stock Ideas.  

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -4.58 basis points to 2.80%
  • US 5-Year Treasury Bonds are higher with yields down -4.61 basis points to 2.89%
  • US 10-Year Treasury Bonds are higher with yields down -3.47 basis points to 3.07%
  • The US Treasury 2s-5s Spread has narrowed 0.03 basis points to 0.08%
  • The US Treasury 2s-10s Spread has widened 1.11 basis points to 0.27%
  • US Treasury 5s-10s Spread has widened 1.14 basis points to 0.18%

Currencies

  • EUR€ is currently up 0.715% against the USD$ to 1.1409
  • GBP£ is currently up 0.548% against the USD$ to 1.2844
  • CHF is currently up 0.544% against the USD$ to 0.9989
  • JPY¥ is currently down 0.783% against the USD$ to 112.75

Commodities

  • WTI Crude is currently up 0.66% to USD$56.83/bbl with the Brent-WTI spread little changed USD$0.05 to USD$9.42/bbl
  • Gold is currently up 0.66% to USD$1221.35/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
PG&E Corp Utilities 24.05 35.67%            4,280,253
Edison International Utilities 53.08 12.16%                443,112
Coty Inc Consumer Staples 9.26 6.14%                224,665
Sempra Energy Utilities 114.75 3.35%                756,221
EOG Resources Inc Energy 104.77 3.02%                432,322
 
Underperformers Sector Price 1D % Chg Volume
NVIDIA Corp Information Technology 165.59 -18.09%            8,854,744
Nordstrom Inc Consumer Discretionary 50.83 -13.92%                334,780
Advanced Micro Devices Inc Information Technology 20.26 -5.68%          12,737,055
Devon Energy Corp Energy 29.13 -4.90%            1,115,421
Hanesbrands Inc Consumer Discretionary 14.92 -4.85%                501,953