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US stocks higher as improved trade outlook fuels risk-on sentiment

Dec 03, 2018

 

Market data as of 12:30pm EST

US Market Snapshot

  • US stocks are higher, though off the highs of the day, as the optimism over the US-China trade truce propels stocks higher
  • The S&P 500 is currently up 0.81%, Nasdaq Composite is up 1.39%, and Russell 2000 is up 0.42%
  • Oil has been strong all day in the wake of Saudi Arabia and Russia agreeing to extend the pact to support oil prices. WTO is 3.6% higher midday
  • The ISM Manufacturing Index for November came at 59.3, above 57.7 expected
  • Consumer Discretionary (+2.26%), Energy (+1.9%), and Tech (+1.66%) stocks are the top performers in the S&P 500 today
  • Utilities (+0.27%), Real Estate (-0.25%), and Consumer Staples (-0.45%) 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 2.14x
  • 97 stocks in the S&P500 are at 4-week highs while 14 stocks are at 4-week lows
  • 18 stocks in the S&P 500 are overbought while 5 stocks are oversold according to the 16-day RSI Measure
  • 71 stocks in the Nasdaq Composite are at 4-week highs while 105 stocks are at 4-week lows
  • 318 stocks in the Nasdaq Composite are overbought while 214 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently down 1.48 at 16.59 from yesterday's close of 18.07

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Apple (AAPL) will not introduce an iPhone that can use 5G services until 2020 according to a report from Bloomberg today.  Apple will wait until almost a year after the introduction of 5G technology to take advantage of the new, faster technology, the same way it did when 4G was introduced.  Apple did this in the past to avoid the inevitable early problems with the new service, preferring to wait until it is fully introduced.  Apple is rated “Attractive” in our US Large-Cap and US Information Technology Global Top Stock Ideas. 
  • Discovery (DISC.A) shares are trading lower after President and CEO David Zaslav discussed at an industry conference that the firm’s flagship Discovery Channel, “has some ratings challenges, but is still the number 1 channel in America for men.” While speaking at the annual UBS Media Investor Conference in New York, Zaslav added that the weaker ratings would drive US advertising revenue for the fourth quarter “a little” below previous expectations of between 3% and 5% growth. Discovery is not rated in our Global Top Stock Ideas. 
  • Former General Electric (GE) employees are cited in a Wall Street Journal report that alleges General Electric’s insurance business of failing to acknowledge worsening results over recent years, leading to the turmoil surrounding the large conglomerate. The Wall Street Journal additionally reports that federal investigators are questioning these former General Electric employees in relation to a probe of the conglomerate. General Electric is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas. 
  • Global Blood Therapeutics (GBT) shares are surging more than 50% after announcing results from an experimental sickle cell disease treatment that showed improvements in patients’ hemoglobin and hemolysis. 65% of patients treated with a high dose of Global Blood Therapeutics’ voxelotor experimental treatment showed improvements after 24 weeks vs 33% patients who used a smaller dosage and saw improvement and just 10% of patients who used a placebo and saw improvement. As a result of the study, the FDA has agreed to accelerate the approval pathway for Global Blood Therapeutics’ sickle cell treatment. Global Blood Therapeutics is rated “Top Short” in our US Large-Cap Global Top Stock Ideas. 
  • Lululemon (LULU) is in talks to join a Chinese investor group attempting a takeover of Amer Sports Oyj (AMEAS FH) according to a report in Bloomberg today.  The report states that Lululemon is in talks to take about 20% of the deal, though nothing has been confirmed officially.  Lululemon is rated “top Buy” in our US Large-Cap Global Top Stock Ideas.  Amer Sports Oyj is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas.
  • Nexstar Media Group (NXST) shares are trading slightly higher after announcing the all-cash acquisition of Tribune Media Company (TRCO) for USD$4.1bn. Including the cost of debt acquisition, the total acquisition value comes to USD$6.4bn. The per share acquisition price represents a 15.5% premium on shares of Tribune Media as of Friday’s close. Nexstar Media is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas. Tribune Media is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Qualcomm (QCOM) said it has ruled out any other bids for NXP Semiconductor (NXPI) after the US and Chinese negotiations appeared to open the way to potentially approve the deal.  Qualcomm, in a note to the market, said it was grateful for the work of both the countries but that it has abandoned the deal and has no plans to revisit it.  It said, “Qualcomm considers the matter closed”.  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.  NXP Semiconductors is not rated in our Large-Cap Global Top Stock Ideas.
  • The Walt Disney Company (DIS) will abandon Comcast Corporation’s (CMCSA) FreeWheel advertising platform in favor of Alphabet’s (GOOGL) Google Ad Manager in relation to its video streaming service. The trend towards digitally native advertising solutions is one being seen across the online television advertising space. Of late, Alphabet has signed deals with CBC, A&E Networks, and AMC Networks to use its Google Ad Manager service. Disney is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas. Comcast is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas. Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Verizon (VZ) has been downgraded by JP Morgan to neutral from outperform.   Verizon’s price target was reiterated at USD$62.  Verizon has outperformed the SP500 by 13% recently and JP Morgan highlighted this when downgrading the stock.  Verizon is fully valued at this point, in JP Morgan’s opinion. Verizon is rated is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.

 

US Treasuries

 

  • US 2-Year Treasury Notes are lower with yields up 3.86 basis points to 2.82%
  • US 5-Year Treasury Bonds are lower with yields up 2.53 basis points to 2.83%
  • US 10-Year Treasury Bonds are lower with yields up 0.9 basis points to 2.99%
  • The US Treasury 2s-5s Spread has narrowed 1.33 basis points to 0.01%
  • The US Treasury 2s-10s Spread has narrowed 2.96 basis points to 0.17%
  • US Treasury 5s-10s Spread has narrowed 1.63 basis points to 0.16%
     

Currencies

  • EUR€ is currently up 0.292% against the USD$ to 1.135
  • GBP£ is currently little changed against the USD$ at 1.2735
  • CHF is currently little changed against the USD$ at 1.0016
  • JPY¥ is currently little changed against the USD$ at 113.65

Commodities

  • WTI Crude is currently up 3.08% to USD$52.5/bbl with the Brent-WTI spread little changed USD$0.09 to USD$7.79/bbl
  • Gold is currently up 1.01% to USD$1232.85/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

On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
Wynn Resorts Ltd Consumer Discretionary 108 10.23%            1,008,892
Advanced Micro Devices Inc Information Technology 21.4 9.77%          19,198,444
Twitter Inc Communication Services 31.3 6.97%            2,662,346
Incyte Corp Health Care 64.8 6.75%                441,273
Estee Lauder Cos Inc/The Consumer Staples 142 6.04%                436,226
 
Underperformers Sector Price 1D % Chg Volume
Discovery Inc Class A Communication Services 31.6 -8.69%            1,858,737
Discovery Inc Class C Communication Services 28.7 -8.13%                533,677
Take-Two Interactive Software Inc Communication Services 112 -7.63%                958,913
HollyFrontier Corp Energy 61.7 -7.43%                253,486
Activision Blizzard Inc Communication Services 52.6 -4.89%            4,106,832