blog

Latest from the Quantamize Blog

US stocks surge as Fed Chair Powell says US rates close to neutral

Nov 28, 2018

 

Market data as of 12:15pm EST

US Market Snapshot

  • US stocks are surging today as Fed Chair Powell says US rates close to neutral, sparking risk-on sentiment
  • Fed Chair Powell said of rates "they are just below the broad range of estimates of the level that would be neutral for the economy"
  • He went on to add that the economy is "solid" with most analysts commenting that the total number of rate hikes to come is now likely to be less than originally expected in the wake of his comments
  • The S&P 500 is currently up 0.64%, Nasdaq Composite is up 1.64%, and Russell 2000 is up 0.48%
  • Tech (+2.09%), Consumer Discretionary (+1.78%), and Healthcare (+1.6%) stocks are the top performers in the S&P 500 today
  • Real Estate (+0.89%), Consumer Staples (+0.73%), and Utilities (+0.2%) 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 1.91x
  • 18 stocks in the S&P500 are at 4-week highs while 29 stocks are at 4-week lows
  • 8 stocks in the S&P 500 are overbought while 15 stocks are oversold according to the 16-day RSI Measure
  • 41 stocks in the Nasdaq Composite are at 4-week highs while 175 stocks are at 4-week lows
  • 117 stocks in the Nasdaq Composite are overbought while 322 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently flat at 18.73 from yesterday's close of 18.94

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Alphabet’s (GOOGL) Google has a plan to eradicate mosquitoes around the world that carry disease.  Google is releasing mosquitoes with a bacteria implanted that renders the hatched offspring unviable.  The vermin could be released around the world potentially eradicating vermin-borne diseases.  Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Burlington Stores (BURL) shares are soaring after beating analyst estimates for FY3Q2018 and raising their full-year guidance. Burlington generated an adjusted EPS of USD$1.21/share in FY3Q2018 while analysts’ consensus called for USD$1.06/share. Additionally, Burlington saw FY3Q2018 comparable y/y same store sales growth of 4.4% while analysts expected just 3.1%. Burlington management upped its full-year guidance for adjusted EPS to between USD$6.33/share and USD$6.37/share from between USD$6.13/share and USD$6.20/share. Burlington is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Campbell Soup Company (CPB) is considering Mark Clouse, the CEO of Pinnacle Foods (PF) to take over as CEO, according to a report in the Wall Street Journal today.    The article state that Campbell Soup will make its choice by the end of the year.  Campbell Soup said it is “considering a number of highly qualified candidates”.  Campbell Soup Company is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.  Pinnacle Foods is rated “Top Short” in our US Large-Cap Global Top Stock Ideas
  • Shares of Chico’s FAS Inc. (CHS) are plunging the most in its 25 years as a publicly traded company after reporting abysmal financials for FY3Q2018. Chico’s saw net sales of USD$499.9mm in FY3Q2018 while analyst estimates ranged between USD$511.0mm and USD$522.0mm. Chico’s consolidated comparable same store sales growth of –6.8% significantly missed analysts’ consensus, which called for –2.1%. Chico’s is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Discovery Inc (DISCA) has said in the event no Brexit deal is reached it is planning to move its European operation to the Netherlands.  Discovery fears remaining in the UK and not having the correct licenses to be able to broadcast into the EU.  Discovery is considering a move to Amsterdam.  Discovery is not rated on our Global Top Stock Ideas.
  • Janus Henderson (JHG) forecasts choppy trading for global technology stocks in the first half of 2019, citing prospects of increased US tariffs on Chinese exports and slowing Chinese growth. Janus Henderson warned investors to be wary of “demand destruction” caused by the US-Sino trade war, which is currently in “uncharted” territory. Janus Henderson highlighted that, among FAANG stocks, Alphabet (GOOGL) and Facebook (FB) offer strong risk-reward potential. Janus Henderson is not rated in our Global Top Stock Ideas.
  • J.M. Smucker (SJM) shares are trading lower after reporting FY2Q2018 financials that missed consensus analyst expectations. J.M. Smucker’s adjusted EPS of USD$2.17/share in FY2Q2018 missed analysts’ consensus of USD$2.29/share.  J.M. Smucker reported full-year adjusted EPS guidance of between USD$8.00/share and USD$8.20/share, which misses the midpoint analyst estimate of USD$8.36/share. J.M. Smucker is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas. 
  • Microsoft (MSFT) closed yesterday with a market cap above that of Apple (AAPL).  Microsoft’s USD$828.1 billion market cap was about USD$1 billion more than Apple’s at the close.  This is after Apple has seen USD$300 billion in market cap evaporate recently as tech shares have suffered on trade concerns.  Microsoft is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology 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.
  • Salesforce.com (CRM) reported results that topped analysts’ estimates.   Salesforce.com fiscal 3Q billings came at USD$2.89 billion while consensus was for USD$2.68 billion, a 27% jump.  Revenue guidance for fiscal 2020 is USD$16 billion while the company’s outlook of USD$23 billion in 2022 appears to be on track.  Salesforce.com is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Tiffany and Co. (TIF) shares are falling after reporting CY3Q2018 earnings growth ahead of the holiday season that largely disappointed investors. Tiffany’s generated y/y same store sales growth of just 3% in 3Q while analysts expected growth of 5.6%. Despite lagging sales growth, Tiffany’s reported 3Q EPS in-line with analysts’ consensus of USD$0.77/share driven by a gross margin of 62.2% while analysts expected just 62.0%. Tiffany’s is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • United Technologies (UTX) officially announced that it will split into three independent entities yesterday, sending its bond prices higher. United Technology will spin off its Collins Aerospace Systems and Pratt & Whitney businesses, its Otis and Climate business, and its Controls & Security business to operate as three separate entities. Upon its separation, the three entities combined will pay a quarterly dividend of at least USD$0.745/share. The deal should add between USD$0.15/share and USD$0.20/share to the combined company’s adjusted EPS in 2019. 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 higher with yields down -3.44 basis points to 2.79%
  • US 5-Year Treasury Bonds are higher with yields down -2.86 basis points to 2.86%
  • US 10-Year Treasury Bonds are higher with yields down -0.92 basis points to 3.04%
  • The US Treasury 2s-5s Spread has widened 0.58 basis points to 0.06%
  • The US Treasury 2s-10s Spread has widened 2.52 basis points to 0.25%
  • US Treasury 5s-10s Spread has widened 1.94 basis points to 0.19%

Currencies

  • EUR€ is currently up 0.611% against the USD$ to 1.1358
  • GBP£ is currently up 0.526% against the USD$ to 1.2814
  • CHF is currently up 0.439% against the USD$ to 1.0056
  • JPY¥ is currently down 0.211% against the USD$ to 113.55

Commodities

  • WTI Crude is currently little changed 0.02% to USD$51.57/bbl with the Brent-WTI spread down USD$-1.1 to USD$8.18/bbl
  • Gold is currently up 0.77% to USD$1224.45/o

 

*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
salesforce.com Inc Information Technology 134.05 5.02%            1,819,117
Adobe Systems Inc Information Technology 243.17 4.62%                959,507
Humana Inc Health Care 323.15 4.23%                  51,084
Under Armour Inc Consumer Discretionary 21.26 4.16%                235,635
Juniper Networks Inc Information Technology 29.14 4.03%                579,621
 
Underperformers Sector Price 1D % Chg Volume
Tiffany & Co Consumer Discretionary 92.99 -11.43%                715,121
JM Smucker Co/The Consumer Staples 102.73 -5.99%                297,567
Western Digital Corp Information Technology 46.26 -5.05%            1,472,263
Advanced Micro Devices Inc Information Technology 20.37 -3.33%          13,102,871
Seagate Technology PLC Information Technology 42.71 -3.22%                516,959