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US stocks soar, tech and retail lead gains, as risk appetite returns

Nov 26, 2018

 

US Markets End of Day Snapshot

  • US stocks soar with tech and retail leading the gains as risk appetite returns
  • Retails and tech perform strong with optimistic expectations for the holiday season
  • Today's rally is the best performance in 2 weeks
  • The S&P 500 finished up 1.55%, Nasdaq Composite up 2.06%, and Russell 2000 up 1.16%
  • Consumer Discretionary (+2.59%), Tech (+2.25%), and Financials (+2.1%) stocks were the top performers in the S&P 500 today
  • Utilities (+0.54%), Real Estate (+0.21%), and Consumer Staples (+0.04%) 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 6.69x
  • 14 stocks in the S&P 500 hit 4-week highs while 46 stocks reached 4-week lows
  • 3 stocks in the S&P 500 closed overbought while 33 stocks closed oversold according to the 16-day RSI Measure
  • 44 stocks in the Nasdaq Composite hit 4-week highs while 164 stocks reached 4-week lows
  • 128 stocks in the Nasdaq Composite closed overbought while 218 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed down 2.62 points today to 18.90 after closing at 21.52 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Boeing (BA) can expect competition from Airbus (AIR) for its newest mid-market jet, dubbed the 797, expected to launch next year.  Airbus said it can tweak the A330neo, giving it less thrust and hence less fuel to carry at take-off, as a way to complete against Boeing’s new 797.  Airbus’ plan is to attack the piece of the market that Boeing is targeting with the A330neo from above (larger) and with the A321neo from below (smaller).  Boeing is rated is rated “Attractive” in both our US Large-Cap Global Top Stock Ideas and US Industrials Global Top Stock Ideas.  Airbus is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Campbell Soup Company (CPB) announced it has reached a deal with activist hedge fund Third Point to end its proxy fight.  Campbell Soup Company has agreed to allow Third Point to appoint 2 independent members to its Board.  Campbell Soup Company will expand the Board to 14 members.  Third Point agreed to take no actions for 12 months, to “certain support commitments” that were not elaborated upon and to cease its litigation.  Campbell is rated “Neutral” in both our US Large-Cap Global Top Stock Ideas and US Consumer Staples Global Top Stock Ideas.
  • 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.
  • Eurofins (ERF FP) has confirmed its guidance and that is has lowered its financing costs.  Eurofins made the announcement after Morgan Stanley called into question its growth prospects in a recent note to clients.  Eurofins confirmed its expectation for 5% organic growth, saying its “achievable”.  Eurofins said a number of facts in the Morgan Stanley note are “false”.  Eurofins is rated “Neutral” in our European SMID-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 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.
  • Logitech International (SWX:LOGN) reiterates it is not in any acquisition talks to purchase US-based Plantronics (NYSE:PLT).  Reuters reported that Logitech had offered USD$2.2 billion for Plantronics, a 10% premium above last Wednesday's close.  Plantronics traded up as much as 11% during Friday’s shortened trading session before closing +3.74%.  Logitech International is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.  Plantronics is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Tech 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.
  • Paychex (PAYX) announced it is acquiring Oasis Outsourcing for USD$1.2 billion.  Oasis Outsourcing is one of the largest privately-owned employer organizations, with 8,400 clients and 1,100 employees.  Paychex expects to see revenue and cost savings synergies but had not provided specifics yet.  Paychex is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology 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.
  • NavInfo, a mapmaker backed by Tencent (SEHK: 700, ADR: TCEHY) has announced it is building a high-definition map of Singapore for autonomous car.  Tencent’s NavInfo move into Singapore would be the first overseas market for the Tencent-backed company.  According to South China Morning Post, NavInfo has already mapped north of 210k kilometers of highway in China -- 5 times the circumference of Earth!  Tencent is rated ”Attractive” in our China All-Cap Global Top Stock Ideas. 
  • Tesla’s (TSLA) Elon Musk, in an interview over the weekend, described just how dire the situation had become for the company.  He said over the last year that Tesla was “within weeks” of dying.  While the market believed Tesla’s biggest problems were financial-its need for cash-Musk revealed the Model 3 production ramp-up problems that kept arising were the reason the company almost failed.  The Musk interview aired on HBO.  Tesla is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Top Short” in our US Consumer Discretionary Global Top Stock Ideas.
     

 

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 2.08 basis points to 2.83%
  • US 5-Year Treasury Bonds are lower with yields up 2.22 basis points to 2.88%
  • US 10-Year Treasury Bonds are lower with yields up 2 basis points to 3.05%
  • The US Treasury 2s-5s Spread has widened 0.14 basis points to 0.06%
  • The US Treasury 2s-10s Spread has narrowed 0.08 basis points to 0.23%
  • US Treasury 5s-10s Spread has narrowed 0.22 basis points to 0.17%

Currencies

  • EUR€ is little changed 0.088% against the USD$ in after hours to 1.1328
  • GBP£ is little changed 0.047% against the USD$ in after hours to 1.2808
  • CHF is little changed 0.15% against the USD$ in after hours to 1.0012
  • JPY¥ is up 0.549% against the USD$ in after hours to 113.58

Commodities

  • WTI Crude is up 2.81% to USD$51.63/bbl with the Brent-WTI spread down USD$-0.42 to USD$8.34/bbl
  • Gold is little changed -0.04% to USD$1222.59/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
Newell Brands Inc Consumer Discretionary 23.5 8.18%            2,770,372
Wynn Resorts Ltd Consumer Discretionary 112 6.89%            1,099,519
L Brands Inc Consumer Discretionary 32 6.74%            1,816,694
SCANA Corp Utilities 46.6 5.83%                437,369
HollyFrontier Corp Energy 60.4 5.71%                498,801
 
Underformers Sector Price 1D % Chg Volume
Campbell Soup Co Consumer Staples 39 -3.73%                969,201
United Continental Holdings Inc Industrials 91.8 -3.26%            1,595,629
Cabot Oil & Gas Corp Energy 25 -2.42%            1,402,390
General Mills Inc Consumer Staples 42.4 -2.28%            1,034,320
Conagra Brands Inc Consumer Staples 32.6 -1.78%            1,749,819