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US stocks lower midday as trade concerns loom large

Nov 27, 2018

 

Market data as of 12:45pm EST

US Market Snapshot

  • US stocks are lower midday but have bobbed between gains and losses throughout the morning session
  • Fear of higher tariffs in the wake of President Trump's comments on China have brought sellers to the market today, a strong start to the holiday season has mitigated these concerns somewhat 
  • The portfolio manager of Fidelity's USD$43 billion Fidelity International Fund said in a briefing today he expects a market with zero return for 2019 as the business cycle turns
  • The S&P 500 is currently down 0.28%, Nasdaq Composite is down 0.17%, and Russell 2000 is down 0.65%
  • Telecom (+0.49%), Utilities (+0.59%), and Consumer Staples (+0.5%) stocks are the top performers in the S&P 500 today
  • Energy (-0.73%), Industrials (-0.83%), and Materials (-1.59%) 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 0.48x
  • 29 stocks in the S&P500 are at 4-week highs while 10 stocks are at 4-week lows
  • 4 stocks in the S&P 500 are overbought while 15 stocks are oversold according to the 16-day RSI Measure
  • 42 stocks in the Nasdaq Composite are at 4-week highs while 149 stocks are at 4-week lows
  • 192 stocks in the Nasdaq Composite are overbought while 223 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently flat at 18.94 from yesterday's close of 18.90

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Amazon (AMZN) said yesterday, Cyber Monday, was the biggest shopping day in the company’s history.  Amazon did not give a dollar amount yet but said between Thanksgiving and yesterday customer ordered 18 million toys and 13 million fashion items.  The new Echo Dot was the best selling item over those 5 days.  Amazon is rated is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Apple (AAPL) could see a 10% tariff slapped on iPhones according to a comment by President Trump.  President Trump said the tariff could be put in place on mobile phones, without singling out Apple’s iPhone.  His comment about tariffs was “…I can make it 10 percent, and people could stand that very easily”.  Apple is rated “Attractive” in both our US Large-Cap and US Information Technology Global Top Stock Ideas.    
  • Bristol-Myers Squibb (BMY) shares are trading down after reporting disappointing results for its latest late-stage cancer drug trial. The trial, which focused on treating late-stage small-cell lung cancer patients, is a setback that, “will likely increase uncertainty about R&D execution,” according to BMO Capital Markets analyst Alex Arfaei. Bristol Myers Squibb is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • BSB Bancorp (BLMT) shares are soaring after People’s United Financial (PBCT) announced that it will acquire the bank holding company for USD$32.42/share.  People’s United Financial believes that the deal will add USD$0.03/share with an IRR of 20%. BSB Bancorp is rated “Top Buy” in our US Micro-Cap Global Top Stock Ideas. People’s United Financial is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • GoDaddy (GDDY) has a discounted valuation according to a note by Piper Jaffray.  GoDaddy is undervalued and had ample opportunity to upsell to its existing clients, the note highlights.  GoDaddy has a “sticky base of users” that will provide it with stable growth going forward.  GoDaddy is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology.
  • Seadrill (SDRL) reported a USD$240mn loss in its first report since emerging from bankruptcy.  Seadrill has raised fresh capital and has removed billions in debt from its balance sheet.  Seadrill is still suffering and half of its 51 rigs were idle at the end of the quarter.  Seadrill is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas. 
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  • Steel Dynamics Inc. (STLD) shares are trading lower along with other US steel makers after announcing a plan to build a new steel mill in the US. The plan for the new US steel mill is spurring concerns of a glut in the US steel supply after tariffs caused price increases in international steel, triggering a spike in US steel production. “We see this additional supply as a major threat to already falling US sheet prices and sentiment,” said Phil Gibbs, analyst with Keybanc Capital Markets. Steel Dynamics is rated "Attractive” in our US Large-Cap Global Top Stock Ideas. 
  • United Technologies (UTX) announced it will split into three companies.  It will split into 3 units- first will maintain the United Technologies name and focus on aerospace, the second will be called Otis and focus on elevators and escalators and the third will be called Carrier and focus on heat and cooling.  The breakup of United Technologies represents a change in strategy from the one stop shopping industrial giant they it had become.  United Technologies is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.

 

US Treasuries

 

  • US 2-Year Treasury Notes are lower with yields up 0.27 basis points to 2.83%
  • US 5-Year Treasury Bonds are lower with yields up 1.03 basis points to 2.89%
  • US 10-Year Treasury Bonds are lower with yields up 1.1 basis points to 3.06%
  • The US Treasury 2s-5s Spread has widened 0.76 basis points to 0.06%
  • The US Treasury 2s-10s Spread has widened 0.83 basis points to 0.23%
  • US Treasury 5s-10s Spread has widened 0.07 basis points to 0.17%

Currencies

  • EUR€ is currently down 0.424% against the USD$ to 1.128
  • GBP£ is currently down 0.764% against the USD$ to 1.2729
  • CHF is currently down 0.17% against the USD$ to 1.0001
  • JPY¥ is currently up 0.211% against the USD$ to 113.82

Commodities

  • WTI Crude is currently little changed -0.04% to USD$51.61/bbl with the Brent-WTI spread down USD$-2.38 to USD$6.94/bbl
  • Gold is currently down -0.83% to USD$1212.29/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

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Outperformers Sector Price 1D % Chg Volume
PG&E Corp Utilities 26.79 6.56%            1,407,099
Advanced Micro Devices Inc Information Technology 21.26 5.97%          13,254,896
Vertex Pharmaceuticals Inc Health Care 175.7 4.98%                337,259
McKesson Corp Health Care 124.73 3.32%                122,879
Macy's Inc Consumer Discretionary 33.55 3.04%                476,467
 
Underperformers Sector Price 1D % Chg Volume
United Technologies Corp Industrials 120.67 -5.79%                963,389
Tapestry Inc Consumer Discretionary 37.065 -4.21%                245,480
Alliance Data Systems Corp Information Technology 193.8 -3.47%                  23,911
Northrop Grumman Corp Industrials 256.6 -3.44%                  87,788
Huntington Ingalls Industries Inc Industrials 205.65 -3.36%                  17,666