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US stocks fall as the global stock sell-off continues

Dec 06, 2018

 

Market data as of 12:15pm EST

US Market Snapshot

  • US stocks are falling across the board as the global stock sell-off continues in full force today; fear of renewed US-China trade tension is fueling the risk-off sentiment
  • Investors fear a flaring of trade tension in the wake of Canadian authorities announcing they have arrested the CFO of the Chinese technology company Huawei, Meng Wazhou, and she faces extradition to the United States.
  • The S&P 500 is currently down 2%, Nasdaq Composite is down 1.28%, and Russell 2000 is down 1.53%
  • The Saudi Oil Minister said today he is not confident an agreement can be reach between OPEC and Russia (OPEC+) to cut oil production 
  • The ADP Employment Change report for November came at 179k, below the 195k expected and down from last month's 227k
  • Initial jobless claims for the past week came at 231k in line with the 225k expected
  • Durable goods orders in October dropped 4.3%, more than the 2.5% expected
  • Telecom (-0.59%), Real Estate (-0.74%), and Consumer Discretionary (-1.15%) stocks are the top performers in the S&P 500 today
  • Materials (-3.02%), Financials (-3.38%), and Energy (-3.54%) stocks are the worst performers in the S&P 500 today
  • Investor sentiment for US stocks is negative with the advance/decline ratio for the S&P 500 currently at 0.09x
  • 82 stocks in the S&P500 are at 4-week highs while 73 stocks are at 4-week lows
  • 7 stocks in the S&P 500 are overbought while 6 stocks are oversold according to the 16-day RSI Measure
  • 48 stocks in the Nasdaq Composite are at 4-week highs while 164 stocks are at 4-week lows
  • 173 stocks in the Nasdaq Composite are overbought while 597 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently up 3.38 at 24.12 from yesterday's close of 20.74

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Autoliv (ALV) said it has reserved USD$210mn to cover a potential fine from the European Commission, according to a note from Pareto.  The fine relates to an investigation of suppliers of occupant safety systems being conducted by the European Commission.  Autoliv would see a ~24% cut to consensus EPS for 2018, the note highlights.  Autoliv is not rated on our Global Top Stock Ideas.
  • Avista Corporation (AVA) shares are falling the most in 16 years after Washington state regulators rejected the USD$3.4bn acquisition of the US utility by Canada-based Hydro One Ltd. (TSX: H). The Washington Utilities and Transportation Commission said in a statement today that the deal does not adequately protect Spokane, Washington-based Avista, or customers from political and financial risks. Additionally, the state regulator said that the acquisition does not provide a net benefit to customers. Avista Corporation is rated “Top Buy” in our US SMID-Cap Global Top Stock Ideas. Hydro One is not rated in our Global Top Stock Ideas.  
  • Bombardier (BBD.B CN) said it sees revenue growing 10% in 2019 over 2018’s USD$18 billion guidance.  Bombardier sees 2019 adjusted ebitda of USD$1.65-1.8 billion.  Bombardier is rated “Neutral” in our Canada All-Cap Global Top Stock Ideas.
  • Dollarama (TSX: DOL) reports FY3Q2018 financials that generally miss analyst estimates. Dollarama generated an EPS of CAD$0.41/share in FY3Q2018 while analysts’ consensus called for CAD$0.43. Dollarama saw quarterly sales of CAD864.3mm in FY3Q2018 while analysts expected CAD$893.2mm. Despite missing earnings and sales estimates, Dollarama’s comparable sales growth of 3.1% was enough to squeak by the analyst consensus estimate of 3.06%. Dollarama is rated “Top Buy” in our Canada All-Cap Global Top Stock Ideas. 
  • Epic Games Inc., maker of the hugely popular “Fortnite”, said it will open its own online store to sell its apps and those of other developers.  The announcement was aimed at Apple (AAPL) as Epic Games will only charge a commission of 12%, that is less than half of what Apple charges to sell apps in its store.  Macquarie commented in a note that this audacious move could lead other developers to demand the same deal from Apple.  Apple is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Euromoney (ERM LN) will acquire “Boardex” and “The Deal” from The Street (TST).  Euromoney said the acquisition will create “a powerful workflow tool across multiple industries.  Boardex is an executive profile platform and The Deal is a platform focused on M&A news and data.  Euromoney will fund the acquisition with existing funding.  Euromoney is not rated on our Global Top Stock Ideas.  The Street is rated “Neutral” in our US Micro-Cap Global Top Stock Ideas.
  • Facebook (FB) had emails published that were sent among executives showing them trying to maximize the use of customers’ data.  The emails show executives treating customer data like a commodity that could be traded and used to Facebook’s benefit.  These emails from Facebook show customer data being used for the benefit of Facebook and seemingly without a care for the customers themselves.  Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. 
  • Huawei Technologies Co.’s Chief Financial Officer Wanzhou Meng was arrested by Canadian officials at the instruction of the United States for allegedly violating Iranian sanctions. The US is now seeking the extradition of Meng while Chinese authorities are up in arms, calling for the release of the daughter of Huawei founder Ren Zhengfei. The arrest threatens to upend US-China trade negations, sending the shares of Qualcomm (QCOM)Advanced Micro Drives (AMD)Texas Instruments, Inc. (TXN), and other US-based chipmakers lower in pre-market trading. Qualcomm is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas. Advanced Micro Drives is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas. Texas Instruments is rated “Neutral” in our US large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Lam Research (LRCX) announced it fired CEO Martin Anstice.  Lam Research he was fired after an investigation into workplace misconduct.  Lam Research did not detail the details of the investigation but said it did not involve any financial misconduct.  Lam’s COO took over as CEO for now.  Lam Research is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas. 
  • Och-Ziff Capital Management Group LLC (OZM) shares are soaring after announcing plans to conduct a reverse stock split to convert from a partnership to a corporation. Och-Ziff Capital announced these plans after its share price sank below USD$1. Companies who trade on the NYSE risk being de-listed if their stock trades below an average price of USD$1 for a 30-day period. Och-Ziff Capital is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas. 
  • Signet (SIG), the parent company of Kay Jewlers, shares are spiraling lower today after reporting that, so far in 4Q, the Jewler is seeing a, “more competitive environment as department stores continue to invest in the category and consumers are highly responsive to value.” As a result of this, Signet will not release any additional promotional activity in 4Q to support holiday sales. Signet is not rated in our Global Top Stock Ideas.
  • Tesla (TSLA) will start production at its new Shanghai facility in the second half of 2019.  The new factory, dubbed “Gigafactory 3”, will be the biggest ever foreign owned manufacturing facility in Shanghai.  Local officials visited the project yesterday, asking Tesla to accelerate construction, according to a message a release from local officials. Tesla is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -5.92 basis points to 2.73%
  • US 5-Year Treasury Bonds are higher with yields down -6.41 basis points to 2.72%
  • US 10-Year Treasury Bonds are higher with yields down -5.58 basis points to 2.85%
  • The US Treasury 2s-5s Spread has narrowed 0.49 basis points to -0.01%
  • The US Treasury 2s-10s Spread has widened 0.34 basis points to 0.12%
  • US Treasury 5s-10s Spread has widened 0.83 basis points to 0.13%

Currencies

  • EUR€ is currently up 0.309% against the USD$ to 1.1379
  • GBP£ is currently up 0.33% against the USD$ to 1.2776
  • CHF is currently up 0.509% against the USD$ to 1.0074
  • JPY¥ is currently down 0.654% against the USD$ to 112.45

Commodities

  • WTI Crude is currently down -4.58% to USD$50.47/bbl with the Brent-WTI spread up USD$0.57 to USD$7.68/bbl
  • Gold is currently up 0.28% to USD$1240.77/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

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Outperformers Sector Price 1D % Chg Volume
Hewlett Packard Enterprise Co Information Technology 15.1 6.05%            2,154,188
Weyerhaeuser Co Real Estate 26.7 3.22%                743,061
Take-Two Interactive Software Inc Communication Services 112 2.79%                308,660
PulteGroup Inc Consumer Discretionary 26.7 2.54%                718,833
Discovery Inc Communication Services 31.6 2.43%                785,571
 
Underperformers Sector Price 1D % Chg Volume
SVB Financial Group Financials 244 -11.29%                306,070
Cimarex Energy Co Energy 83.6 -7.65%                134,706
DaVita Inc Health Care 65.7 -6.76%                235,115
Concho Resources Inc Energy 132 -6.74%                181,839
Centene Corp Health Care 142 -6.70%                150,998