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US stocks mostly higher, rebounding on trade hopes after President Trump's comments

Nov 16, 2018

 

 

US Markets End of Day Snapshot

  • US stocks rebounded from earlier lows on renewed trades hopes after President Trump signaled a willingness to strike a deal with China at the upcoming G-20 summit
  • The S&P 500 finished up 0.22%, Nasdaq Composite is down 0.15%, and Russell 2000 up 0.22%
  • Real Estate (+1.36%), Utilities (+1.31%), and Energy (+1.1%) stocks were the top performers in the S&P 500 today
  • Tech (-0.11%), Telecom (-0.39%), and Consumer Discretionary (-0.54%) 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 1.89x
  • 31 stocks in the S&P 500 hit 4-week highs while 51 stocks reached 4-week lows
  • 12 stocks in the S&P 500 closed overbought while 16 stocks closed oversold according to the 16-day RSI Measure
  • 49 stocks in the Nasdaq Composite hit 4-week highs while 185 stocks reached 4-week lows
  • 115 stocks in the Nasdaq Composite closed overbought while 371 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed  down 1.82 points today to 18.16 after closing at 19.98 yesterday
     

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.
  • Delta Airlines (DAL) confirmed it is ordering 10 Airbus (AIR FP) A330-900neo jets.  Delta is presently the only US customer for the A330-900neo model.  Delta Airlines has decided to defer an order for 10 of the larger A350-800 models until 2025-26.  Delta Airlines currently flies 11 A350s with 4 more due to join the fleet shortly.  Delta Airlines is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Dillard’s (DDS) reported 3Q revenue that was above markets expectations with revenue of USD$1.46 billion while USD$1.39 billion.  Dillard’s saw comparable sales growth of 3% while gross margins were compressed due to markdowns.  Dillard’s sales growth marks its fourth straight quarter of growth.  Dillard’s is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Huawei Technologies Co. (SZSE: 002502) aims to dethrone Apple (AAPL) as the number one global smartphone maker, as per CEO Richard Yu’s comments in a CNBC interview, where he said, “Next year, we will be very close to number one, maybe we will be on par with Samsung.” Yu went on to mention that the US-Sino trade war has created a barrier to the US for Huawei, allowing the technology company to focus on other global markets. Huawei is not rated in our Global Top Stock Ideas. Apple is rated “Attractive” in both our US Large-Cap Global Top Stock Ideas and US Information Technology 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.
  • Nintendo (7974 JP) had its price target cut to 54,200 yen from 55,200 at Daiwa Securities as the woes mount for the company.  Nintendo saw a weak debut of its most recent Pokemon game but has seen brisk sales of its Switch console.  Nintendo closed over 9% lower on the news.  Nintendo is not rated in our 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) rallied in after-hours trading yesterday after California regulator said it can’t imagine letting PG&E go bankrupt.  The head of California’s Public Utility Commission said, in discussing PG&E, “They have to have stability and economic support to get the dollars they need right now” which caused the stock to rally up to 49% in post-market trading yesterday.  PG&E is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Taiwan Semiconductor Manufacturing (TSMC) shares are falling in pre-market trading after the world’s largest contract chipmaker announced that it suffered a NT$2.596bn (USD$84.28) loss from a virus that infected its computer system in August. Booked as an operating expense, the loss was offset by gains from foreign currency conversion. Following the announcement, Morgan Stanley downgraded TSMC’s recommendation from overweight to equal-weight while cutting the price target from NT$253/share to NT$239/share. TSMC is not rated in our Global Top Stock Ideas.
  • Tesaro Inc (TSRO), a maker of cancer drugs, is exploring a potential sale of the company, according to a report in Bloomberg today.  Tesaro is in initial talks after receiving interest, the report states.  Tesaro’s stock price hit a 4-year low last week after reporting disappointing drug trial results.  Tesaro is rated “Unattractive” in our US Large-Cap Global Top Stock
  • 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.
  • Visa (V) announced a minority investment in BillDesk of India.   Visa said in a statement that its investment is intended to help the online platform for bill payments develop new markets and expand.  Visa has an existing agreement for cooperation with BillDesk and this investment is meant to strengthen that relationship.  The investment from Visa values BillDesk at almost USD$2 billion.  Visa is rated “Top Buy” in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Vivendi (VIV IM) said it is making progress with its sale of Universal Music Group, sending the stock over 10% higher.  Vivendi is speaking to 15 banks regarding the sale and will whittle the list down to between 5 and 7.  The sale of Universal Music Group could reap upwards of 20 billion euros according to analysts.  Vivendi expects to complete the sale over the next 12-18 months.  Vivendi is rated “Attractive” in our European Large-Cap 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 -5 basis points to 2.80%
  • US 5-Year Treasury Bonds are higher with yields down -5.12 basis points to 2.88%
  • US 10-Year Treasury Bonds are higher with yields down -3.84 basis points to 3.07%
  • The US Treasury 2s-5s Spread has narrowed 0.12 basis points to 0.08%
  • The US Treasury 2s-10s Spread has widened 1.16 basis points to 0.27%
  • US Treasury 5s-10s Spread has widened 1.28 basis points to 0.19%

Currencies

  • EUR€ is up 0.768% against the USD$ in after hours to 1.1415
  • GBP£ is up 0.415% against the USD$ in after hours to 1.2827
  • CHF is up 0.684% against the USD$ in after hours to 1.0003
  • JPY¥ is down 0.704% against the USD$ in after hours to 112.84

Commodities

  • WTI Crude is little changed 0% to USD$56.46/bbl with the Brent-WTI spread up USD$0.68 to USD$9.77/bbl
  • Gold is up 0.7% to USD$1221.85/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
PG&E Corp Utilities 24.4 37.54%            7,980,162
Edison International Utilities 54.45 15.38%            1,594,377
NetApp Inc Information Technology 71.9 4.37%            1,778,086
Coty Inc Consumer Staples 9.09 4.36%            4,208,560
Helmerich & Payne Inc Energy 62.59 4.24%                394,636
 
Underperformers Sector Price 1D % Chg Volume
NVIDIA Corp Information Technology 164.4 -18.76%          13,872,844
Nordstrom Inc Consumer Discretionary 50.93 -13.66%            1,996,861
Garrett Motion Inc Information Technology 12.05 -7.02%                833,762
Activision Blizzard Inc Communication Services 50.94 -4.89%            4,074,106
Hanesbrands Inc Consumer Discretionary 14.91 -4.85%            1,289,574