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US stocks close higher, with energy stocks leading gains on higher oil

Nov 21, 2018

 

US Markets End of Day Snapshot

  • US stocks closed higher today with energy and tech stocks fueling the gains
  • Energy stocks rallied as WTI crude traded over 2% higher today 
  • Pre-Thanksgiving volume was roughly 20% below the average of the last 30 days
  • The University of Michigan Consumer Sentiment Index fell slightly in November to 97.5 from 98.3; consensus was for no change
  • Existing home sales grew 1.4% in October, better than the 1% expected and above September's 3.4% fall
  • The S&P 500 finished up 0.31%, Nasdaq Composite up 0.92%, and Russell 2000 up 1.31%
  • Energy (+1.58%), Consumer Discretionary (+1%), and Telecom (+1%) stocks were the top performers in the S&P 500 today
  • Healthcare (-0.51%), Consumer Staples (-0.83%), and Utilities (-1.48%) 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 2.05x
  • 40 stocks in the S&P 500 hit 4-week highs while 109 stocks reached 4-week lows
  • 10 stocks in the S&P 500 closed overbought while 46 stocks closed oversold according to the 16-day RSI Measure
  • 29 stocks in the Nasdaq Composite hit 4-week highs while 293 stocks reached 4-week lows
  • 62 stocks in the Nasdaq Composite closed overbought while 677 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed down -1.68 points today to 20.80 after closing at 22.48 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Airbus (AIR FP) named Dominick Asam as its new CFO, joining from Infineon Technologies (IFX GR).  Airbus also announced a new COO for its plane making unit, Michael Schollhorn.  Both will take over in April after the present executives leave the company.  Airbus is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.  Infineon is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • Autodesk (ADSK) shares are trading notably higher as analysts are praising the firm’s better-than-expected FY3Q2018 financial results. Specifically, analysts are hailing the firm’s strong long-term growth indicators, pointing out strength in the company’s annualized recurring revenue. Analysts from Morgan Stanley, who maintains an “Overweight” recommendation with a price target of USD$160, RBC Capital Markets, who maintains an “Outperform” recommendation with a price target of USD$163, and Cowen, who maintains an “Outperform” recommendation with a price target of USD$160, all praised the firm’s financials. Autodesk is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas. 
  • Best Buy (BBY) was upgraded to neutral from under perform today at Wedbush.  When commenting on Best Buy’s strategy, Wedbush said it “appears to have settled on the right formula for long-term growth.  Wedbush expects Best Buy to deliver on its strategy amid intense competition from online retailers.  Best Buy is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and is rated “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Bilibili (BILI) shares are soaring after the company announced FY3Q2018 financials that largely surprised analysts. Bilibili reported FY3Q2018 sales of 1.078bn Chinese yuan while analysts expected sales of 1.011bn Chinese yuan. Bilibili’s EPS of 0.88 Chinese yuan/share for FY3Q2018 also surpassed analysts’ consensus of 0.73 Chinese yuan/share. Bilibili is rated “Top Short” in our China All-Cap Global Top Stock Ideas. 
  • BJ’s Wholesale Club (BJ) shares are trading largely higher after reporting better-than-expected FY3Q2018 financial results after yesterday’s market close. BJ’s reported FY3Q2018 adjusted EPS of USD$0.39/share while analysts’ consensus called for USD$0.24/share. Meanwhile, BJ’s observed comparable sales excluding gasoline growth of 1.9% while analysts expected only 1.7%. BJ’s is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Staples Global Top Stock Ideas.
  • Deere & Co (DE) reported FY4Q results that missed estimates.  Deere reported 4Q adjusted EPS of USD$2.30 versus USD$2.45 expected.  FY4Q net sales of USD$8.34 billion came below USD$8.64 billion expected.  Deere expected fiscal 2019 net of USD$3.6 billion versus consensus of USD$3.6 billion.  Deere is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Facebook (FB) was identified by Goldman Sachs as a “falling star”, a stock that has seen ownership by hedge fall significantly during the last quarter.  Goldman Sachs highlights these names as those that trail the market for the next 3 to 12 months after being identified.  Facebook, the reports says, is likely to see its extreme volatility continue.  Facebook is rated is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and is rated “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Foxconn Technology Group (2317 TT) announced it is aiming to cut 20 billion yuan (USD$2.9 billion) in expenses 2019 according to an internal memo cited in a Bloomberg article.  Foxconn is the largest assembler of iPhones for Apple (AAPL).    The memo highlights Foxconn’s need to cut expenses in its iPhone assembly unit by 6 billion yuan as it will face “a very difficult and competitive year”.  Foxconn will eliminate 10% of its non-technical staff as part of its cost cutting.  The bad news surrounding iPhone demand has sent Apple down over 20% from its October peak, closing in bear territory yesterday.  Foxconn is not rated in our Global Top Stock Ideas.   Apple is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • GameStop (GME) announced it is selling its AT&T (T) wireless stores to Prime Communications LP for USD$700mn.  GameStop had, upon its purchase of the chain, mentioned it as a key growth driver for the company.  GameStop will be selling 1,289 stores in the transaction that is expected to close by the end of January.  GameStop will use the proceeds of the sale to reduce debt, share buybacks or investing in its core video game retail operations.  GameStop is rated “Unattractive” in both our US Large-Cap and US Consumer Discretionary Global Top Stock Ideas.  AT&T is rated is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Gap (GPS) reported 3Q same store sales that were flat while consensus was for growth of 1.1%.  Gap also lowered guidance for full year earnings, now seeing USD$2.55-2.60 while previously guidance was USD$2.55-2.70.  3Q EPS of 69 cents came a touch above 68 cents expected.  Gap said it is Neutral whether to close hundreds of stores as it seeks to turn the company around.  Gap is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Foot Locker (FL) shares are soaring in pre-market trading after reporting FY3Q2018 earnings that notably beat analyst expectations. Foot Locker generated an adjusted EPS of USD$0.95/share in FY3Q2018 while analysts’ consensus called for USD$0.92/share. Foot Locker also generated FY3Q2018 comparable sales growth of 2.9% while analysts’ consensus called for just 2.0%. Foot Locker’s earnings beat post-market sent shares of competitors Nike (NKE)Dick’s Sporting Goods (DKS), and Under Armour (UA) slightly higher in pre-market trading as well. Foot Locker is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas. Nike is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  Dick’s is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas. Under Armour is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Johnson & Johnson (JNJ) suffered a setback in court today in its effort to stop generic versions of its cancer drug Zytiga.  The US Court of Appeals for the second time this week blocked Johnson & Johnson’s attempts to stop a competitor to its best-selling drug.  Johnson & Johnson immediately said it would appeal the decision.  Johnson & Johnson stands to lose millions in revenue if a generic version of Zytiga were to hit the market.  Johnson & Johnson is rated “Neutral” in our US Large-Cap Global Top Stock.
  • Johnson Matthey (LSE: JMAT) shares posted their largest intraday gains in 14 months after saying that full-year earnings will be towards the top end of guidance. The world’s largest trucking manufacturer is benefiting from increased market share in the European light-truck market as automakers are willing to spend more money on catalysts to reduce emissions. Johnson Matthey is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • Kingfisher PLC (LSE: KGF) shares are trading at their lowest level since September 2011 after announcing FY3Q2018 like-for-like sales that missed analyst expectations. In FY3Q2018, Kingfisher saw its Screwfix business generate like-for-like sales growth of 4.1% while analysts’ consensus called for 5.2%, its Brico Depot business generate like-for-like sales growth of 1.1% while analysts’ consensus called for 1.3%, and its Castorama business generate like-for-like sales growth of –7.3% while analysts’ consensus called for –3.0%. Kingfisher also announced a 50mm pound share buyback. Kingfisher is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Nyrstar NV (BB: NYR) shares are popping after Trafigura Group granted USD$650mm of extra cash to sustain the company. The world’s second-largest producer of zinc has faced crisis of late as it deals with a massive debt burden. The USD$650mm of cash should allow Nyrstar to restructure in the near future. “For the zinc market, this is good,” said Philip Ngotho, an analyst at ABN Abro NV, adding, “for bondholders and shareholders, it doesn’t really change the story.” Nyrstar is rated “Top Short” in our European SMID-Cap Global Top Stock Ideas.
  • Paragon Banking (LSE: PAG) shares posted gains after analysts said that the diversification of their business is driving growth. Shailesh Raikundlia, an analyst from Panmure Gordon who maintains a “Buy” recommendation for Paragon, said the firm’s robust loan growth and better net interest margin drove the company to report pretax profit ahead of consensus by 1%. Phil Dobbin, an analyst from Jefferies who maintains a “Buy” recommendation for Paragon, highlighted the company’s commercial lending and portfolio purchasing units that were ahead of expectations. Paragon is not rated in our Global Top Stock Ideas. 
  • Samsung’s (5930 KS) new Galaxy S10 phone top model will have 6 cameras and a 6.7-inch screen according to a report in the Wall Street Journal.  Samsung is planning a major update for the 10th anniversary of its flagship phone.  The article discusses a top-secret plan to introduce 4 phones in total, 3 with screens between 5.8 and 6.4 inches and fourth top of the line model with 6 cameras-2 in the front, 4 in back.  Samsung is following Apple (AAPL) with the 10th anniversary model, making a major update in an effort to spark sales, which have been slumping.  Apple is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  Samsung is not rated on our Global Top Stock Ideas. 
  • Swatch (UHR SW) was downgraded at RBC today to sector perform from outperform.  RBC does not see any near-term catalysts for Swatch.  Additionally, RBC sees believes present consensus is too high for Swatch.  A significant risk for Swatch is the growing market for used watches which may further eat into Swatch’s growth prospects.  Swatch is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Tencent (700 HK) backed Tongcheng-Elong Holdings (780 HK) priced its IPO today in Hong Kong.  Tongcheng-Elong Holdings, a Chinese online travel site, priced its IPO at the bottom of the range at HK$9.80, raising USD$180mn.  Tongcheng-Elong Holdings originally intended to raise USD800mn-USD$1 billion.  Tongcheng-Elong Holdings is not rated in our Global Top Stock Ideas.  Tencent is rated “Attractive” in our China All-Cap Global Top Stock Ideas.
  • Thyssenkrupp AG (TKA GR) said it expects profit next year to rise after reporting a fall in full year earnings.  Thyssenkrupp full year net income dropped to 60 million euros after saying of November 8th it expected ~100mn euros.  Fiscal full year ebit came at 1.55 billion euros, below 1.6 billion euros guidance from November 8th.  Thyssenkrupp AG said it expects profit next year to rise after reporting a fall in full year earnings.  Thyssenkrupp is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • Walgreens Boots Alliance (WBA) and Humana (HUM) are in talks to potentially take equity stakes in each other according to a report in the Wall Street Journal.  The companies have help talks about a variety of different ways to tie up, including expanding existing alliances.  Walgreen’s CEO has made clear the desire to expand its business, lamenting recently that Walgreens had not bought an insurance company 4 years ago.  Walgreens Boots Alliance is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.

 

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 1.02 basis points to 2.81%
  • US 5-Year Treasury Bonds are lower with yields up 0.34 basis points to 2.89%
  • US 10-Year Treasury Bonds are flat with yields little changed -0.01 basis points to 3.06%
  • The US Treasury 2s-5s Spread has narrowed 0.68 basis points to 0.08%
  • The US Treasury 2s-10s Spread has narrowed 1.03 basis points to 0.25%
  • US Treasury 5s-10s Spread has narrowed 0.35 basis points to 0.17%

Currencies

  • EUR€ is little changed 0.123% against the USD$ in after hours to 1.1384
  • GBP£ is little changed 0.086% against the USD$ in after hours to 1.2777
  • CHF is little changed 0.04% against the USD$ in after hours to 1.0054
  • JPY¥ is up 0.301% against the USD$ in after hours to 113.11

Commodities

  • WTI Crude is up 2.06% to USD$54.43/bbl with the Brent-WTI spread down USD$-0.36 to USD$8.43/bbl
  • Gold is up 0.35% to USD$1225.94/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
Foot Locker Inc Consumer Discretionary 52.96 14.90%            1,854,182
Autodesk Inc Information Technology 135.04 9.74%            1,761,899
Hanesbrands Inc Consumer Discretionary 15.72 6.54%            1,298,562
EQT Corp Energy 17.79 6.46%            1,340,764
Copart Inc Industrials 50.09 5.89%                768,811
 
Underformers Sector Price 1D % Chg Volume
Johnson & Johnson Health Care 141.99 -3.05%            3,264,582
Philip Morris International Inc Consumer Staples 83.95 -3.00%            1,754,669
NVIDIA Corp Information Technology 144.71 -2.93%            6,161,695
American Electric Power Co Inc Utilities 75.65 -2.79%                870,387
Alliant Energy Corp Utilities 44.07 -2.63%                680,307