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Tech shares lead losses among US stocks today as trade tensions escalate

Nov 19, 2018

 

Market data as of 12:15pm

US Market Snapshot

  • US stocks have traded lower all morning with losses building through the session as fresh trade tensions dampen sentiment
  • The S&P 500 is currently down 1.53%, Nasdaq Composite is down 2.56%, and Russell 2000 is down 1.86%
  • Utilities (-0.09%), Real Estate (-0.26%), and Consumer Staples (-0.39%) stocks are the top performers in the S&P 500 today
  • Telecom (-1.86%), Consumer Discretionary (-2.28%), and Tech (-3.24%) 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 0.27x
  • 85 stocks in the S&P500 are at 4-week highs while 21 stocks are at 4-week lows
  • 16 stocks in the S&P 500 are overbought while 16 stocks are oversold according to the 16-day RSI Measure
  • 54 stocks in the Nasdaq Composite are at 4-week highs while 177 stocks are at 4-week lows
  • 160 stocks in the Nasdaq Composite are overbought while 264 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 20.67 from last week's close of 18.14
     

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Amazon (AMZN) is planning to be your last minute savior at Thanksgiving this year, offering last minute delivery of groceries until 2pm.  Amazon is looking to gain an edge helping customers with last minute meal prep.  Amazon is experimenting with this service as it seeks to gain an edge.  It is trying build on its success in last minute delivery for Christmas last year.  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.
  • Cimarex Energy Co. (XEC) has announced the acquisition of Resolute Energy Corporation (REN) for roughly USD$811mm, combining two of the largest US oil producers. Of late, activist shareholders have pressured Resolute to sell itself. The acquisition is a cash-and-stock purchase. Cimarex CEO Tom Jorden said on a call with analysts that Resolute’s assets fit, “like a glove.” Cimarex is rated as “Unattractive’ in our US Large-Cap Global Top Stock Ideas. Resolute is rated as “Top Short” in our US SMID-Cap Global Top Stock Ideas. 
  • Charles Schwab (SCHW) was downgraded at UBS today.  UBS cut the stock to neutral from buy.  UBS also cut the price target of Charles Schwab to USD$51 from USD$57.  UBS comments that while Charles Schwab is growing faster than traditional asset managers UBS sees “compression on market sensitive revenues” going forward which contributed to the downgrade.  Charles Schwab is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Colfax (CFX) shares are falling significantly after announcing an expansion into orthopedics through the USD$3.15bn acquisition of DJO Global Inc.  The acquisition will be financed by USD$100mm of cash from Colfax’s balance sheet with the remainder of funds being raised through a debt offering. The acquisition comes as the medical industry is observing an uptick in consolidation -- recently, major medical players Medtronic Plc and Abbott Labotories have made large acquisitions. Colfax is rated as “Attractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas. 
  • An article by the Financial Times questions whether USD$40bn of asset sales will be enough to sustain General Electric (GE), discussing a potential long-term bear case for the US-based conglomerate. The article cites a note published by JPMorgan analyst Stephen Tusa, which argues that a “real bear case” is longer-term, noting that General Electric has USD$100bn in liabilities and zero enterprise free cash flow despite cutting its quarterly dividend from USD$0.12/share to USD$0.01/share. In a CNBC interview, CEO Larry Culp said he has, “no higher priority right now,” than cutting GE’s debts by raising cash through the selling of assets. General Electric is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • NVIDIA Corporation (NVDA) shares plummeted on Friday and are slightly negative in pre-market trading after the chip-maker gave a disappointing forecast for its current quarter and faced issues with its cryptocurrency mining business segment. A Wall Street Journal article discusses that NVIDIA’s decline will take time to recover, citing analyst forecasts the project NVIDIA’s revenue to fall over the next three quarters. Two-thirds of analysts, however, maintain a “Buy” rating on Nvidia. 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.
  • Spectrum Brands (SPB) shares are sinking after announcing FY4Q2018 financials that disappointed investors. Spectrum Brands reports FY4Q2018 adjusted EPS of USD$0.79/share while analyst consensus called for USD$1.03/share. Spectrum’s FY4Q2018 gross margin of 36.8% also missed consensus expectations of 38.6%. Spectrum is rated as “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Short” in our US Consumer Staples Global Top Stock Ideas.  
  • TD Ameritrade (AMTD) was upgraded at UBS today.  UBS hiked the TD Ameritrade rating on the stock to buy from neutral.  TD Ameritrade saw its price target raised to USD$60 from USD$58.  UBS said it believes there is “misperceptions about risk” with TD Ameritrade and the present level would be an attractive entry point.  TD Ameritrade is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Zayo Group Holdings (ZAYO) shares are trading notably higher after reports broke that the network infrastructure company is attracting takeover interest. Reports detail that Zayo is attracting interest from groups of investors from notable funds managed by Blackstone Group LP and Stonepeak Partners LP. Zayo initially went public in 2014 and recently announced intentions to spinoff into two separate publicly traded companies: one focused on communications infrastructure and the other on enterprise services. Zayo is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
     

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -1.88 basis points to 2.78%
  • US 5-Year Treasury Bonds are higher with yields down -0.85 basis points to 2.86%
  • US 10-Year Treasury Bonds are lower with yields up 0.37 basis points to 3.06%
  • The US Treasury 2s-5s Spread has widened 1.03 basis points to 0.09%
  • The US Treasury 2s-10s Spread has widened 2.25 basis points to 0.29%
  • US Treasury 5s-10s Spread has widened 1.22 basis points to 0.2%

Currencies

  • EUR€ is currently up 0.237% against the USD$ to 1.1442
  • GBP£ is currently little changed against the USD$ at 1.2841
  • CHF is currently up 0.58% against the USD$ to 1.006
  • JPY¥ is currently down 0.239% against the USD$ to 112.56

Commodities

  • WTI Crude is currently down -1.08% to USD$55.85/bbl with the Brent-WTI spread little changed USD$-0.13 to USD$9.67/bbl
  • Gold is currently little changed -0.12% to USD$1221.86/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

On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
Twenty-First Century Fox Inc Class B Communication Services 49.1 2.84%            2,106,654
Twenty-First Century Fox Inc Class A Communication Services 49.5 2.78%            4,213,887
Arconic Inc Industrials 20.56 1.88%                663,179
PPL Corp Utilities 31.37 1.71%                294,392
Helmerich & Payne Inc Energy 63.6 1.69%                113,773
 
Underperformers Sector Price 1D % Chg Volume
Align Technology Inc Health Care 207.02 -8.51%                180,387
ABIOMED Inc Health Care 295.52 -7.89%                113,913
Adobe Systems Inc Information Technology 222.85 -6.76%                804,143
Intuitive Surgical Inc Health Care 485.55 -6.32%                121,380
salesforce.com Inc Information Technology 124.48 -6.19%                742,199