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US stocks end day higher, tech shares lead rebound after morning losses

Dec 10, 2018

 

US Markets End of Day Snapshot

  • US stocks close the day higher after being sharply lower during the morning session; tech shares led the rally after the S&P500 hit its lowest intraday level since April
  • The S&P 500 finished up 0.17%, Nasdaq Composite up 0.74%, and Russell 2000 is down 0.35%
  • The S&P500 was down almost 2% this morning and reversed to close up 0.17%, its biggest one day reversal since early February
  • Oil gave up all of Friday's gains, with WTO closing 3.4% lower at $50.82
  • UK Prime Minister Theresa May confirmed the Brexit vote has been postponed and a new date for a vote has not been set
  • Tech (+1.43%), Telecom (+0.75%), and Healthcare (+0.33%) stocks were the top performers in the S&P 500 today
  • Real Estate (-0.43%), Financials (-1.4%), and Energy (-1.62%) 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 0.82x
  • 21 stocks in the S&P 500 hit 4-week highs while 109 stocks reached 4-week lows
  • 9 stocks in the S&P 500 closed overbought while 27 stocks closed oversold according to the 16-day RSI Measure
  • 30 stocks in the Nasdaq Composite hit 4-week highs while 243 stocks reached 4-week lows
  • 92 stocks in the Nasdaq Composite closed overbought while 630 stocks closed oversold according to the 16-day RSI Measure
  • The VIX finished lower at 22.58 after closing at 23.23yesterday
     

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Alibaba (BABA) is considering joining a new funding round for Megvii, the maker of facial recognition software Face++.  Megvii is seeking USD$500mn in new funding and is considering a valuation of between USD$3.5-4 billion, Alibaba has previously participated in funding for Megvii.  Megvii makes facial recognition software that scans faces for security systems.  Alibaba is not rated in our Global Top Stock Ideas. 
  • Allscripts Healthcare Solutions (MDRX) shares are trading higher after announcing that it signed a definitive pact to sell its interest in Netsmart Technologies (NTST). Allscripts detailed that it expects net after-tax proceeds of roughly USD$525mm, which will be used to repay long-term debt and to invest in growing businesses. Allscripts is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas. Netsmart Technologies is not rated in our Global Top Stock Ideas. 
  • ASM Pacific Technology Limited (SEHK: 522) shares are falling amid worries that the recent Huawei case will cause the United States to increase import and export controls on Chinese tech products. A wide range ASM Pacific’s products would be affected by the controls. On Friday, ASM Pacific was downgraded to “Underperform” from “Neutral” at Macquarie, which cited expected cuts to earnings guidance. ASM Pacific is rated “Attractive” in our China All-Cap Global Top Stock Ideas. 
  • BASF (DB: BAS) has issued another profit warning, saying that deteriorating markets will hurt earnings.  BASF sees earnings before interest and taxes falling 15-20%.  Its previous warning stated the drop would be about 10%.  BASF is citing lower chemical prices a weaker automotive market as the reason for the profit warning.  BASF is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Boeing (BA) announced it is launching the BBJ 777X, a new Boeing business jet that can fly farther than any business jet ever.  The new Boeing BBJ 777X can fly halfway around the world non-stop.  The longest-range model of the new jet can fly 11,645 nautical miles without stopping to refuel.  Boeing is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • The injunction halting the Boeing (BA) / Embraer (ERJ) deal has been lifted.  A regional court in Brazil has removed the earlier injunction which did not allow the companies to finalize the deal until after the court’s year-end recess.  The deal is now allowed to proceed.  Boeing is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.  Embraer is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas. 
  • Bunge (BG) CEO Soren Schroeder will step down, the company has announced.  Sorem will stay on as CEO until the Board can find a replacement.  It was reported last week that Bunge was in talks with potential buyers who would be interested in a transaction once Soren stepped down as CEO.  Bunge is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.  
  • Eramet S.A. (ENXTPA: ERA) shares are falling the most in its history after warning investors that quality-management problems related to its alloy business will likely result in material financial impacts. Although there is no indication that the French-based metals conglomerate’s product safety was impacted, Eramet still informed costumers to await further word on its corrective action plan. Eramet is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas. 
  • FedEx Corporation (FDX) shares are trading at their lowest levels in 18 months after Bank of America Corporation cut its recommendation and slashed its price target for FedEx. In a note to clients, Bank of America cited that one of the company’s key financial goals are at risk due to the departure of an executive from the firm’s air-freight division. Bank of America cut its recommendation for FedEx to “Neutral” while slashing its price target by 28%. FedEx is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Gilead Sciences (GILD) has named a veteran executive from Roche Holdings (SWX: ROG), Daniel O’Day, to take over as Chairman and CEO.  Gilead is tasking him with expanding the reach of Gilead beyond its core drugs of anti-viral treatments for HIV and hepatitis.  Mr. O’Day will take over in his new role on March 1, 2019.  Gilead is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas    Roche Holdings is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas. 
  • Gol Linhas Aereas (GOLL4) announced it will lease an additional 11 737 Max long-haul jets.  Gol will lease the jets as it looks to add a new international destination each quarter for the next 2 years.  Gol is rated “Attractive” in our Brazil All-cap Global top Stock Ideas.
  • GoPro Inc. (GPRO) announced today that it will move a majority of its production of US-destined cameras out of China by next summer in an effort to minimize the impact from US tariffs. GoPro said in a statement today that it expects the production shift to come at a relatively low cost since the company uses its own production equipment. GoPro is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas and “Top Short” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Hong Kong Stock Exchanges and Clearing Limited (SEHK: 388), which owns the Stock Exchange of Hong Kong, Asia's third-largest stock exchange, detailed today that it will announce a three-year strategy tomorrow to adopt artificial intelligence (AI) and robotics to increase efficiencies on its exchanges. Additionally, the Hong Kong Stock Exchange is considering how it could develop big data into its own tradeable asset class. Officials from Hong Kong Stock Exchanges and Clearing highlighted that prospects of tradeable big data are in their early stages. Hong Kong Stock Exchanges and Clearing is rated “Top Buy” in our China All-Cap Global Top Stock Ideas. 
  • Impel S.A. (WSE: IPL) shares are falling after Danish cleaning giant ISS A/S (CPSE: ISS) announced that it has given up on lower margin operations in central and eastern Europe to focus on stronger core markets. Impel maintains a 19% stake in ISS. In explaining its reasoning for leaving central and eastern Europe markets, ISS said that they are dominated by, “smaller, price-centric customers,” and that it is unable to, “fully leverage volumes, concept, and talent,” to generate,” attractive returns.” Impel is not rated in our Global Top Stock Ideas. ISS is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.  
  • RIB Software (DB: RIB) shares are plummeting after announcing an agreement with Flex Ltd.  (FLEX) on a new ownership structure for their joint venture, YTWO Formative. Flex has exited the YTWO Formative partnership, leaving RIB Software to take full control of the venture. The partnership now lacks a partner that can take control of the supply chain process. RIB Software is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.  Flex Ltd. is not rated in our Global Top Stock Ideas.  
  • Qualcomm Inc. (QCOM) announced that it won a ruling in China against Apple Inc. (AAPL) that prevents the smartphone manufacturer from selling some of its iPhone models in the country. The Fuzhou Intermediate People’s Court found that 7 of Apple’s iPhone models are infringing on patents owned by Qualcomm. Qualcomm is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas. 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. 
  • Tesla (TSLA) CEO Elon Musk, in an interview in 60 Minutes Sunday evening, said none of his tweets have been censored since his problems with the SEC.  Musk said in the interview “I want to be clear.  I do not respect the SEC.”  Musk added that he respects the justice system so he is abiding by the terms of the SEC agreement he made with them.  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.  
  • Tivity Health (TVTY) in acquiring Nutriisystem Inc (NTRI) in a USD$1.3 billion deal.  Tivity Health is a maker of fitness and health programs and is acquiring diet plan company Nutrisystem, paying a 30% premium over the average price of the last 5 trading days.  Nutrisystem is being valued at USD$47 per shares in the transaction.  Tivity will incorporate the Nutrisystem program into its health regimens.  Nutrisystem is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  Tivity Health is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas.
  • Yelp’s (YELP) Board received a letter from one of its largest shareholders, SQN Investors, pushing for changes at Yelp.  SQN highlights “repeated strategic errors, operational missteps stockholder disappointments” that have happened over the last year.   The letter comes in the wake of the multiple downgrades to the stock after it issued a profit warning.  Yelp is rated “Top Short” 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 lower with yields up 1.83 basis points to 2.72%
  • US 5-Year Treasury Bonds are lower with yields up 2.18 basis points to 2.71%
  • US 10-Year Treasury Bonds are lower with yields up 0.89 basis points to 2.85%
  • The US Treasury 2s-5s Spread has widened 0.35 basis points to -0.02%
  • The US Treasury 2s-10s Spread has narrowed 0.94 basis points to 0.12%
  • US Treasury 5s-10s Spread has narrowed 1.29 basis points to 0.14%

Currencies

  • EUR€ is down 0.228% against the USD$ in after hours to 1.1353
  • GBP£ is down 1.312% against the USD$ in after hours to 1.2559
  • CHF is little changed 0.099% against the USD$ in after hours to 1.01
  • JPY¥ is up 0.532% against the USD$ in after hours to 113.29

Commodities

  • WTI Crude is down -3.06% to USD$51/bbl with the Brent-WTI spread up USD$0.77 to USD$7.89/bbl
  • Gold is down -0.38% to USD$1244.59/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

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Outperformers Sector Price 1D % Chg Volume
Northrop Grumman Corp Industrials 261 4.40%                418,583
Lockheed Martin Corp Industrials 302 4.23%                367,496
Broadcom Inc Information Technology 236 4.09%            1,359,834
Fortinet Inc Information Technology 73.9 3.71%                426,372
Facebook Inc Communication Services 139 3.14%            6,007,140
 
Underformers Sector Price 1D % Chg Volume
Apache Corp Energy 35.5 -6.91%            1,440,616
Marathon Oil Corp Energy 16.6 -5.42%            2,914,048
Newfield Exploration Co Energy 17.6 -5.32%            1,202,410
KeyCorp Financials 18.1 -4.72%            2,231,398
Under Armour Inc Consumer Discretionary 23.1 -4.65%            1,158,836