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US stocks catch a bid late day and close higher as G20 summit begins

Nov 30, 2018

 

US Markets End of Day Snapshot

  • US stocks catch a bid late day with improving trade sentiment and close higher as the G20 summit begins
  • The S&P 500 finished up 0.69%, Nasdaq Composite up 0.54%, and Russell 2000 up 0.4%
  • Investors will be looking to the G20 summit in Buenos Aires over the weekend for any progress on trade with President Trump and President Xi set to have dinner Saturday evening
  • The S&P500 posted the best weekly performance since 2011, rising 4.59%
  • Crude futures lost 22% in November, the biggest loss since October 2008
  • Utilities (+1.38%), Industrials (+0.9%), and Real Estate (+0.76%) stocks were the top performers in the S&P 500 today
  • Materials (+0.31%), Telecom (+0.13%), and Energy (-0.38%) 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 2.55x
  • 77 stocks in the S&P 500 hit 4-week highs while 9 stocks reached 4-week lows
  • 9 stocks in the S&P 500 closed overbought while 4 stocks closed oversold according to the 16-day RSI Measure
  • 59 stocks in the Nasdaq Composite hit 4-week highs while 110 stocks reached 4-week lows
  • 292 stocks in the Nasdaq Composite closed overbought while 161 stocks closed oversold according to the 16-day RSI Measure
  • The VIX finished flat at 18.53 after closing at 18.79 yesterday
     

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Allianz (ALV GR) CEO Oliver Baete delivered guidance of 5% profit growth for the next 3 years.  Aliianz provided the exact same guidance 3 years ago leading many to questions why it is simply more of the same.  Investors did not seem to care for his guidance and sent the shares lower.  Allianz has been looking for acquisitions and has been unsuccessful, for now operational improvements will drive profit growth.  Allianze  is rated “Neutral”” in our European Large-Cap Global Top Stock Ideas.
  • Altice Europe NV (ENXTAM: ATC) shares are soaring after announcing the sale of just under half of its French fiber broadband operation group for 1.8bn euros (USD$2.1bn) to various Canadian, French, and German infrastructure funds. The newly acquired funds will be used by Altice to payoff pre-existing debt while also enabling Altice to fund the roll-out of ultra-fast internet connections to consumers at low rates available to big infrastructure projects. Altice is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas. 
  • The CEOs of BMW (BMW)Volkswagen (VOW), and Daimler (DAI GR) will meet with representative of the US government on December 4th.  The idea is to discuss trade and try to find a way forward on auto imports.  The exact details of the meeting have not been released yet, but if confirmed, would be positive for trade sentiment.  BMW is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.  Volkswagen is rated “Neutral”” in our European Large-Cap Global Top Stock Ideas.  Daimler is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.  
  • Distribuidora Internacional de Alimentacion SA (BME: DIA) shares are trading lower after a report by news outlet Cinco Dias that banks have limited DIA’s credit lines over the last month and a half. Financial institutions Santander, BBVA Deutsche Bank, Sabadell, and CaixaBank have all cancelled supplier credit lines greater than 200mm euros. Due to this, DIA will be forced to pay suppliers with its own cash. DIA is rated “Top Short” in our European SMID-Cap Global Top Stock Ideas.
  • Callaway Golf (ELY) announced it will acquire Jack Wolfskin for 418 million pounds.  Jack Wolfskin is an active lifestyle brand and Callaway Golf had indicated its desire to expand into that space.  Callaway Golf is rated “Top Buy” in our US SMID-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Cree (CREE) was downgraded at JP Morgan to underweight from neutral.  Cree saw it price target cut to USD$35, down from USD$42.  Cree’s target price implies as 24% drop from yesterday’s close.  Cree is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.
  • GameStop (GME) shares are tumbling, falling the most in 8 months after reporting quarterly financials that suggested a worse-than-expected outlook for the holiday season. Analysts expected an operating profit for GameStop of USD$87.4mm in FY3Q2018 while the company delivered an operating loss of USD$493.5mm. Following the release of financials, Wedbush analyst Michael Pachter said that a sale to private equity looks “imminent”. GameStop is rated “Unattractive” in our US large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • HP’s (HPE) purchase of Autonomy Corp in 2011 is in focus as Autonomy’s ex-CEO Michael Lynch is being charged by US authorities.  The US is charging him with fraud in relation to the valuation used to arrive at the USD$10.3 billion price HP paid.  The US alleges he used fraudulent documents from 2009, 2010 and 2011 to justify the valuation.  HP is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Kier Group Plc (LSE: KIE) shares are sustaining their worst losses in history after announcing a plan to raise GBP264mm (USD$336mm) through a rights issue that will dilute the stock. Kier is planning to use the funds, which will come from a 33-for-50 fully underwritten issue, in order to grow its position in other markets over the long-term. Kier is the most-shorted stock in the UK. Kier is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • LabCorp (LH) cuts its full year 2018 guidance today, saying total revenue will grow 9.9-10.3%, down from 10.5-11%.  LabCorp said the guidance cut was due to weaker than expected growth at LabCorp Diagnostics where it is seeing lower referral volume.  LabCorp now expects full year 2018 EPS USD$10.95-11.05, down from USD$10.95-11.05; consensus is USD$11.34.  LabCorp is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Marriott International Inc (MAR) was hacked in 2014 in what appears to be one of the largest theft of hacked personal data.  Marriott’s Starwood unit has data on up to 500 million guests stolen, including some passport and credit card data.  Marriott International has alerted authorities and is working with law enforcement to determine how this happened.  Marriott International is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • First Analysis Corp upgraded Palo Alto Networks (PANW) to strong buy from outperform.  Palo Alto’s target price was raised to USD$240, up from USD$200.  The target implies a 36% upside from yesterday’s close.  Palo Alto Networks is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Pfizer (PFE) and AbbVie (ABBV) have signed a licensing agreement resolving all intellectual property issues globally for Pfizer’s biosimilar drug to AbbVie’s Humira, the best-selling drug in the world.  Pfizer will pay royalties to AbbVie and acknowledge its patent rights, though the financial details will remain confidential.  Both parties agree to withdraw all litigation.  Pfizer is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  AbbVie is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Splunk (SPLK) had its price target hiked today by Wedbush in the wake of solid results.  Splunk’s price target was hiked to USD$136 from USD$130.  Wedbush expects Splunk’s momentum to continue into 2019.  Splunk is described as one of the best ways to play the “big data” theme.   Splunk is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Sprint Corp (S) had an earlier ruling against Time Warner Corp affirmed on appeal today.  Sprint won the earlier case in a patent infringement case over voice over internet protocol services which was affirmed.  Time Warner is now owned by Charter Communications (CHTR).  The original verdict awarded Sprint USD$140mn.  Sprint is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.  Charter Communications is rated is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas
  • Workday (WDAY) shares are trading higher by double-digits as analysts cheer the company’s most recent quarterly financials. Workday blew analysts’ consensus adjusted EPS expectations of UD$0.15/share out of the water, announcing FY3Q2018 adjusted EPS of USD$0.31/share. The FY3Q2018 financials announcement was followed by a slew of price target hikes by Wall Street analysts. Workday is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas. 

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -0.59 basis points to 2.80%
  • US 5-Year Treasury Bonds are higher with yields down -0.85 basis points to 2.83%
  • US 10-Year Treasury Bonds are higher with yields down -2.38 basis points to 3.00%
  • The US Treasury 2s-5s Spread has narrowed 0.26 basis points to 0.04%
  • The US Treasury 2s-10s Spread has narrowed 1.79 basis points to 0.2%
  • US Treasury 5s-10s Spread has narrowed 1.53 basis points to 0.17%
     

Currencies

  • EUR€ is down 0.676% against the USD$ in after hours to 1.1316
  • GBP£ is down 0.36% against the USD$ in after hours to 1.2745
  • CHF is down 0.368% against the USD$ in after hours to 1.0005
  • JPY¥ is little changed 0.053% against the USD$ in after hours to 113.54
     

Commodities

  • WTI Crude is down -1.01% to USD$50.93/bbl with the Brent-WTI spread little changed USD$-0.13 to USD$7.34/bbl
  • Gold is little changed -0.15% to USD$1222.39/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
SVB Financial Group Financials 244 4.98%                478,350
Raymond James Financial Inc Financials 76.3 4.96%                218,716
Caterpillar Inc Industrials 130 4.15%            2,742,672
American Airlines Group Inc Industrials 38.4 4.09%            3,185,104
NVIDIA Corp Information Technology 157 3.85%            5,619,536
 
Underformers Sector Price 1D % Chg Volume
Laboratory Corp of America Holdings Health Care 162 -9.78%                521,890
General Electric Co Industrials 7.94 -6.49%          46,972,452
Marriott International Inc/MD Consumer Discretionary 122 -5.72%            2,447,391
Hasbro Inc Consumer Discretionary 96.9 -5.34%            1,319,505
Activision Blizzard Inc Communication Services 52.6 -5.02%            5,318,788