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Trade fears weigh, US stocks close lower despite FOMC minutes confirming dovish tone

Nov 29, 2018

 

US Markets End of Day Snapshot

  • US stocks closed lower for the first time in 4 days with trade fears once again weighing on investor sentiment
  • The S&P 500 finished down 0.22%, Nasdaq Composite is down 0.25%, and Russell 2000 is down 0.33%
  • Energy (+0.59%), Materials (+0.55%), and Telecom (+0.36%) stocks were the top performers in the S&P 500 today
  • Consumer Discretionary (-0.43%), Financials (-0.82%), and Tech (-0.95%) stocks were the worst performers in the S&P 500 today
  • Investor sentiment for US stocks finished negative with the advance/decline ratio for the S&P 500 closing at 0.66x
  • 84 stocks in the S&P 500 hit 4-week highs while 18 stocks reached 4-week lows
  • 9 stocks in the S&P 500 closed overbought while 5 stocks closed oversold according to the 16-day RSI Measure
  • 62 stocks in the Nasdaq Composite hit 4-week highs while 121 stocks reached 4-week lows
  • 286 stocks in the Nasdaq Composite closed overbought while 306 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed up 0.44 points today to 18.93 after closing at 18.49 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Amazon.com Inc. (AMZN) is under fire as the global tech giant, who is the largest retailer and online host for small businesses in Germany, is the target of an antitrust probe by the German Federal Cartel Office. The probe specifically focuses on the terms set by Amazon for other sellers as German regulators have reportedly received “numerous” complaints from sellers. Notably, Germany is Amazon’s second largest market outside of the US. Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • American Express (AXP) was downgraded today at Buckingham from buy to neutral.  American Express will not have any opportunity to expand its margin in the near term and is one of the principal reasons for the downgrade.  The report notes that American Express is up 14% this year (as of yesterday’s close) while the A&P Financials Index is down 3.5% over the same time period and that the risk/reward for the stock more balanced at these levels.  American Express’ price target of USD$114 was reiterated.  American Express is rated “Attractive” in our US Large-Cap Global Top Stock Ideas. 
  • AT&T (T) provided 2019 guidance of free cash flow in the range of USD$26 billion.  AT&T expects a dividend payout ratio in the high 50% range.  Gross capital investment in 2019 will be in the USD$23 billion range.  AT&T expects adjusted EPS growth in the low single digits.  AT&T is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Constellation Brands (STZ) was downgraded by Macquarie to neutral from outperform.  While Constellation Brands is seeing growth in Modelo and Corona brands, this is presently priced into the stock and hence the reason for the downgrade.  Constellation Brands is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
  • Deutsche Bank (DBK GR) had its offices raided by 170 police officers today in Frankfurt.  Deutsche Bank was raided in relation to a money laundering investigation focused on 2 suspected employees.  The names of the employees were not released but their ages, 46 and 50, were published.  Analysts fear this development could paralyze Deutsche Bank for moths as it deals with the investigation.  Deutsche Bank is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Dick’s Sporting Goods (DKS) was downgraded at JP Morgan to neutral from outperform today.   Dick’s Sporting Goods saw its price target cut to USD$41 from USD$46.   Dick’s Sporting Goods was cut after delivering 3Q results below expectations, with revenue of USD$1.86 billion versus USD$1.88 billion expected.  Dick’s Sporting Goods is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Groupe Renault (ENXTPA: RNO)Nissan Motor Co. (TSE: 7201), and Mitsubishi Motors Corp. (TSE: 7211) quelled investor concerns after announcing their intention to maintain their 2-decade partnership after the arrest of the alliance’s Chairman Carlos Ghosn. “Unanimously and with conviction, the boards of Groupe Renault, Nissan Motor Co., and Mitsubishi Motors Corp. Have reaffirmed over the past days their deep commitment to the alliance,” said the companies in a joint statement. Renault is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. Nissan is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas. Mitsubishi is rated “Unattractive” in our Japan Large-Cap Global Top Stock Ideas.
  • Kraft Heinz (KHC) is acquiring Primal Kitchen, a maker of condiments and dressings.  Kraft Heinz will pay USD$200mm for the company, according to a report from CNBC.  Primal Kitchen has US$50mm in revenue and will be used as a platform against emerging brands.  Kraft Heinz is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.
  • Micron Technology’s (MU) price target was cut by Citi Bank after CEO Sanjay Mehrotra said the company expects FY1Q2018 earnings to be “somewhat above” midpoint estimates, although revenue is expected to be at the low end of guidance. As a result of Mehrotra’s comments, Citi Bank cut Micron’s price target to USD$40/share while analysts across Wall Street highlighted the global downturn in global memory chip demand. Micron is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Nintendo (TSE: 7974) shares jumped today after reporting strong financials from Thanksgiving to Cyber Monday, driven by the company’s staple console the Nintendo Switch. Total sales for Nintendo during the period were USD$250mm, driven by a 115% y/y increase in Nintendo Switch sales. US hardware sales, meanwhile, increased 45% y/y. Nintendo is not rated in our Global Top Stock Ideas. 
  • Qualcomm (QCOM) CEO Steve Mollenkopf said in an interview with CNBC that the company “Is on the doorstep of finding a resolution“ with Apple (AAPL) on ongoing issues.  He did not get specifics in his comments; the 2 companies are set to face off in court in the coming months.  He said Qualcomm “would love to work with Apple”, Qualcomm was the main supplier of chips for Apple’s phones.  Qualcomm is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” 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 Industrials Global Top Stock Ideas.
  • Sixt (SIX2 GR) has denied reports it is in talks to acquire Hertz (HTZ).  There has been speculation that Sixt was in advanced talks to acquire its smaller rival Hertz but Sixt put out a release denying any talks.  Sixt, based in Germany, has been expanding its reach in the US but is not planning an acquisition at this time.   Sixt is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas.  Hertz is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • Takeda Pharmaceuticals Company Limited (TSE: 4502) shares are trading higher after Chief Financial Officer Costa Saroukos said in an interview that the drug maker will sell as much as USD$10bn in assets after acquiring Shire Plc (LSE: SHP). The asset sales will be used to reduce interest-bearing debt, Saroukos said in the interview with Nikkei. Takeda is rated “Neutral” in our Japan Large-Cap Global Top Stock Ideas. Shire is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas and “Top Buy” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Tech Data (TECD) forecast full year guidance above present consensus.  Tech Data sees full year EPS of USD$3.90-4.20.  Tech Data expects full year net sales of USD$10.5-10.9 billion.  The forecast came with 3Q results that came well above expected, with 3Q EPS of USD$3.02 coming well above USD$2.17 expected.  Tech Data is rated “Neutral” in both our US Large-Cap and US Information Technology Global Top Stock Ideas. 
  • Yeti (YETI) reported 3Q adjusted EPS of 24 cents, above consensus of 22 cents.  Yeti’s 3Q adjusted ebitda came at USD$38.4mn.  Yeti sees full year EPS coming at 79-82 cents per shares, above consensus of 78 cents.  Yeti expects full year sales to grow 19-20% with adjusted ebitda of USD$141-144mn.  Yeti is not rated in our Global Top Stock Ideas.

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -0.2 basis points to 2.80%
  • US 5-Year Treasury Bonds are higher with yields down -2.2 basis points to 2.84%
  • US 10-Year Treasury Bonds are higher with yields down -3.29 basis points to 3.02%
  • The US Treasury 2s-5s Spread has narrowed 2 basis points to 0.04%
  • The US Treasury 2s-10s Spread has narrowed 3.09 basis points to 0.22%
  • US Treasury 5s-10s Spread has narrowed 1.09 basis points to 0.18%

Currencies

  • EUR€ is currently up 0.211% against the USD$ to 1.139
  • GBP£ is currently down 0.343% against the USD$ to 1.2781
  • CHF is currently down 0.258% against the USD$ to 1.0037
  • JPY¥ is currently down 0.194% against the USD$ to 113.46

Commodities

  • WTI Crude is currently up 2.31% to USD$51.45/bbl with the Brent-WTI spread down USD$-0.52 to USD$7.64/bbl
  • Gold is currently little changed 0.17% to USD$1223.36/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
Dollar Tree Inc Consumer Discretionary 88.4 6.13%            3,359,818
Nielsen Holdings PLC Industrials 27.2 4.02%            1,157,456
Concho Resources Inc Energy 132 3.06%                368,935
Activision Blizzard Inc Communication Services 52.6 3.02%            3,550,515
Boeing Co/The Industrials 343 2.72%            1,219,744
 
Underformers Sector Price 1D % Chg Volume
Quest Diagnostics Inc Health Care 87.9 -9.27%                780,486
Western Digital Corp Information Technology 45.5 -5.46%            2,347,891
Twitter Inc Communication Services 31.3 -4.37%            7,433,458
Wynn Resorts Ltd Consumer Discretionary 108 -4.15%            1,119,206
Nordstrom Inc Communication Services 52.30 -4.00%                689,998