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US stocks close off the lows as economic adviser Kudlow signals openness to trade deal with China

Nov 27, 2018

 

US Markets End of Day Snapshot

  • US economic advisor Larry Kudlow signalled a willingness to strike a trade deal with China at the G20, sparking afternoon optimism for US stocks today
  • The S&P 500 finished down 0.28%, Nasdaq Composite up 0.01%, and Russell 2000 is down 0.87%
  • Fed Chairman Powell will speak this evening and his words will be parsed for indications on monetary policy
  • Healthcare (+0.99%), Consumer Staples (+0.91%), and Utilities (+0.87%) stocks were the top performers in the S&P 500 today
  • Industrials (-0.24%), Energy (-0.33%), and Materials (-1.25%) stocks were the worst performers in the S&P 500 today
  • Investor sentiment for US stocks finished neutral with the advance/decline ratio for the S&P 500 closing at 1.11x
  • 29 stocks in the S&P 500 hit 4-week highs while 10 stocks reached 4-week lows
  • 4 stocks in the S&P 500 closed overbought while 15 stocks closed oversold according to the 16-day RSI Measure
  • 42 stocks in the Nasdaq Composite hit 4-week highs while 149 stocks reached 4-week lows
  • 192 stocks in the Nasdaq Composite closed overbought while 223 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed up 0.12 points today to 19.02 after closing at 18.9 yesterday

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.    
  • BlackRock (BLK) announced it is acquiring 4.9% of Envestnet (ENV) as part of a strategic relationship.  BlackRock and Envestnet will develop tech solutions for financial advisors together.  BlackRock is paying yesterday’s closing price of USD$52.13 for the stake, paying no premium and will receive warrants to purchase additional shares.  The total value of the initial investment is USD$122.8mn.  BlackRock is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  Envestnet is rated “Top Buy” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our 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. 
  • Cracker Barrel (CBRL) reported FY1Q earnings that beat the highest analyst estimate.  Cracker Barrel reported FY1Q EPS of USD$1.96 while estimates ranged from USD$1.82-1.95.  Cracker Barrel FY1Q revenue was 735.5mn while consensus was for USD$ 718.6mn.  Cracker Barrel saw restaurant same store sales growth of 1.4% while retails sales grew 4.3%.  Cracker Barrel increased sales growth guidance for full year to 1-2% from 0-1% previously.  Cracker Barrel is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary 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.
  • Line Corp (3938 JP) is partnering with Tencent’s (700 HK) WeChat Pay in its push into financial services.  Line Corp will form an alliance with Tencent targeting Chinese visitors to Japan.  This is part of Line’s plan to spend USD$882mn by 2021 to create an all-in-one online communications and entertainment provider.  Tencent s rated “Attractive” in our China All-Cap Global Top Stock Ideas.  Line Corp s not rated in our Global Top Stock Ideas. 
  • Bain Capital is considering a takeover bid for Osram (OSR GR) of Germany, a company with a USD$4.4 billion market value.  Osram shares soared in Germany on the news.  At this point Bain is analyzing the German maker of lighting equipment and neither Bain nor Osram has any comment on the news.  Osram is rated “Unattractive” in our European Global Top Stock Ideas.
  • 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. 
  • Spirit Airlines (SAVE) surged today after raising guidance and giving an upbeat outlook.  Spirit Airlines has been able to generate more revenue from fees and other ancillary charges than it expected and is the reason for the boost in guidance.  Spirit Airlines increased load factor and revenue expectations by about 10%.  Spirit Airlines is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and is rated “Unattractive” in our US Industrials Global Top Stock Ideas.
  • 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. 
  • Shares of Swedish banks Svenska Handelsbank AB (OM: SHB A), Skandinaviska Enskilda Banken AB (OM: SEB A), and Swedbank (OM: SWED A) are all trading higher after Morgan Stanley raised its net interest income estimates for the three banks in 2019 and 2020. Explaining the estimate hike, Morgan Stanley detailed that it belives that current consensus forecasts underestimate the benefits to net interest income on rising interest rates. Svenska Handelsbank is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. SEB is rated “Attractive” in our European Large-Cap Global Top Stock Ideas. Swedbank is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.  
  • Tesla (TSLA) said a Reuters report on its sales in China was “wildly inaccurate”.  Tesla said it does not report monthly figures.  Local press reported Tesla sold 211 cars in China in October with Tesla replying that the number was off “by a significant margin”.   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.
  • Thomas Cook (TCG LN) cut its profit outlook for the third time this calendar year as the fallout from its botched summer continues.  Thomas Cook cut its ebit forecast by 58mnpounds to 250mn pounds.  Thomas Cook suspended its dividend, saving it 9mn pounds.    Thomas Cook was not prepared for the very hot summer and these cuts are the results of that.  Thomas Cook is rated “Top Short” in our United Kingdom 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.
  • Vallourec (ENXTPAA: VK) shares are soaring, posting their largest intraday gains since March 2016, after Bank of America Merrill Lynch analyst Vlad Sergievskii upgraded Vallourec to “Buy”. In a note, Sergievskii said the recent decline of Vallourec is “overdone” and that insolvency concerns were exaggerated. Vallourec is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.

 

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 0.07 basis points to 2.83%
  • US 5-Year Treasury Bonds are lower with yields up 0.17 basis points to 2.88%
  • US 10-Year Treasury Bonds are lower with yields up 0.18 basis points to 3.05%
  • The US Treasury 2s-5s Spread has widened 0.1 basis points to 0.06%
  • The US Treasury 2s-10s Spread has widened 0.11 basis points to 0.22%
  • US Treasury 5s-10s Spread has little changed 0.01 basis points to 0.17%

Currencies

  • EUR€ is down 0.291% against the USD$ in after hours to 1.1295
  • GBP£ is down 0.717% against the USD$ in after hours to 1.2735
  • CHF is little changed 0.05% against the USD$ in after hours to 1.0013
  • JPY¥ is up 0.176% against the USD$ in after hours to 113.78

Commodities

  • WTI Crude is little changed -0.14% to USD$51.56/bbl with the Brent-WTI spread up USD$0.52 to USD$8.67/bbl
  • Gold is down -0.62% to USD$1214.78/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
PG&E Corp Utilities 26.97 7.36%            3,594,098
Advanced Micro Devices Inc Information Technology 21.05 4.83%          22,654,437
Vertex Pharmaceuticals Inc Health Care 175.5 4.80%                745,281
McKesson Corp Health Care 125.7 4.18%                410,539
Macy's Inc Consumer Discretionary 33.89 4.08%            1,567,490
 
Underformers Sector Price 1D % Chg Volume
Garrett Motion Inc Industrials 11.53 -6.65%                232,652
Aptiv PLC Consumer Discretionary 71.09 -4.50%                420,317
United Technologies Corp Industrials 122.7 -4.14%            2,181,958
Huntington Ingalls Industries Inc Industrials 204.1 -4.13%                104,495
Newfield Exploration Co Energy 17.05 -3.97%            1,245,849