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US stocks open week higher with financial and energy leading gains

Nov 26, 2018

 

Market data as of 1230pm EST

US Market Snapshot

  • US stocks are higher midday with tech shares leading the gains, though stocks are off the earlier highs
  • Optimism with tech is based on hopes for trade progress with a Trump-Xi meeting expected at the G-20 summit that starts Friday
  • Microsoft (MSFT) overtook Apple (AAPL) as the most valuable US company during this morning's session
  • The S&P 500 is currently up 1.07%, Nasdaq Composite is up 0.95%, and Russell 2000 is up 0.9%
  • Real Estate (-0.14%), Energy (+1.25%), and Financials (+1.72%) stocks are the top performers in the S&P 500 today
  • Telecom (+1.25%), Healthcare (+0.38%), and Industrials (+0.09%) stocks are the worst performers in the S&P 500 today
  • Investor sentiment for US stocks is positive with the advance/decline ratio for the S&P 500 currently at 3.76x
  • 14 stocks in the S&P500 are at 4-week highs while 46 stocks are at 4-week lows
  • 3 stocks in the S&P 500 are overbought while 33 stocks are oversold according to the 16-day RSI Measure
  • 44 stocks in the Nasdaq Composite are at 4-week highs while 164 stocks are at 4-week lows
  • 128 stocks in the Nasdaq Composite are overbought while 218 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently  moving down 1.72 at 19.80 from yesterday's close of 21.52

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Shares of CVS Health (CVS) and Aetna (AET) are trading higher after the state of New York’s Department of Financial Services approved the acquisition of Aetna by CVS Health. The state of New York’s Department of Financial Services placed conditions on the acquisition approval, including enhanced consumer and health insurance rate protections, privacy controls, and a USD$40mm investment to support health insurance education and enrollment in New York. CVS Health is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. Aetna is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Facebook’s (FB) COO Sheryl Sandberg has seen her star dimmed considerably after Facebook’s recent woes, according to a report in Bloomberg today. The article discusses how she was viewed as “larger than life” previously by many people at the company in the past but today she is blamed by many there for its problems.  The comments from colleagues are that she often was more worried about her own brand that she was about Facebook’s problems.  Facebook is rated “Neutral” in our US Large-Cap Global Top Picks and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Fiat Chrysler Automoviles NV (FCAU) shares are rising on news that management is considering the sale of its robotics arm Comau that would draw a price of between 1.5bn euros and 2bn euros (USD$1.7bn and USD$2.3bn). Citing people familiar with the matter, the review of the firm’s robotics arm is still in its early stages with no final decisions having been made on the matter. Fiat Chrysler is not rated in our Global Top Stock Ideas. 
  • GameStop (GME) was upgraded by Bank of America Merrill Lynch to neutral from underperform.  Bank of America Merrill Lynch increased its GameStop to USD$16 from USD$9.  Bank of America Merrill Lynch highlights that the sale of its Spring Mobile unit provides a USD$700mn cash infusion that is key for the company.  Short interest in GameStop is 25% of its float presently.  GameStop is rated "Unattractive" in both our US Large-Cap and US Consumer Discretionary Global Top Stock Ideas.
  • General Motors (GM) will be closing a manufacturing facility in Oshawa, Canada, just outside Toronto.  The union confirmed there is no car production assigned to the factory past next year.  The Oshawa facility employs 2,200 people and is one of the largest in Canada.  The factory has been there since 1953.  General Motors is closing a total of 7 factories, eliminating 14,000 jobs.  General Motors is rated “Unattractive” in our US Large-Cap Global Top Sock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Kering (KER) announced it will bring all of its digital activities in-house.  Kering has had a JV with e-commerce firm YNAP for the last 7 years but will transition to all digital activities being handled in-house.  Kering is working on a suite of apps with Apple (AAPL) that will be used in stores.  Kering expects the transition to be complete in the first half of 2020.  Kering is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.   Apple is rated “Attractive” in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Novavax (NVAX) was upgraded at Piper Jaffray today to overweight from neutral.  Piper Jaffray expects progress on its ResVax phase 3 trial in 1Q2019 according to its note.  If successful that would mean further trials in the US and EU in 2020, positive according to Piper Jaffray.  Novavax is rated “Top Short” in our US SMID-Cap Global Top Stock Ideas.
  • Plantronics (PLT) shares are falling on reports that acquisition talks with Logitech (LOGN SW) were terminated. Gregory Burns, analyst with Sidoti, is reiterating the firm’s “Buy” recommendation for Plantronics while maintaining a price target of USD$86/share, saying that Plantronics’ board “was right” to reject the undervalued acquisition bid by Logitech. Plantronics is rated “Attractive" in our US Large-Cap and "Neutral" in our US Information Technology Global Top Stock Ideas.  Logitech is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • RBC Capital Markets reiterates that they expect the cryptocurrency overhang to impact both NVIDIA Corp (NVDA) and Advanced Micro Devices (AMD) for another quarter.  According to research by RBC, the break-even price for Ethereum miners is USD$175 for Ether; currently, Ether is hovering around USD$114, almost 90% off its February 2018 peak.  RBC suggests that the long-term growth outlook for both NVIDIA and AMD remain positive.  NVIDIA is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Tech Global Top Stock Ideas.  AMD is rated “Unattractive” in our US  Large-Cap Global Top Stock Ideas and “Neutral” in our US Tech Global Top Stock Ideas.

 

US Treasuries

 

  • US 2-Year Treasury Notes are lower with yields up 2.71 basis points to 2.83%
  • US 5-Year Treasury Bonds are lower with yields up 2.91 basis points to 2.89%
  • US 10-Year Treasury Bonds are lower with yields up 2.73 basis points to 3.06%
  • The US Treasury 2s-5s Spread has widened 0.2 basis points to 0.06%
  • The US Treasury 2s-10s Spread has widened 0.02 basis points to 0.23%
  • US Treasury 5s-10s Spread has narrowed 0.18 basis points to 0.17%

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1342
  • GBP£ is currently little changed against the USD$ at 1.2819
  • CHF is currently little changed against the USD$ at 1.0021
  • JPY¥ is currently up 0.469% against the USD$ to 113.49

Commodities

  • WTI Crude is currently up 3.05% to USD$51.75/bbl with the Brent-WTI spread down USD$-0.75 to USD$8.17/bbl
  • Gold is currently little changed -0.06% to USD$1222.34/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
Newell Brands Inc Consumer Discretionary 23.4 7.86%                928,107
L Brands Inc Consumer Discretionary 31.8 6.10%                547,168
L Brands Inc Consumer Discretionary 110 5.92%                409,081
Wynn Resorts Ltd Consumer Discretionary 38 5.76%            1,891,182
General Motors Co Consumer Discretionary 32.7 5.10%            3,972,795
 
Underperformers Sector Price 1D % Chg Volume
Campbell Soup Co Consumer Staples 39.3 -2.91%                238,856
General Electric Co Industrials 7.37 -2.84%          11,897,591
Cabot Oil & Gas Corp Energy 25.1 -2.15%                481,671
United Continental Holdings Inc Industrials 93.2 -1.76%                357,636
General Mills Inc Consumer Staples 42.7 -1.64%                372,986