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US stocks see earlier gains fade on trade and government shutdown concerns

Dec 11, 2018

 

Market data as of 12:15pm EST

US Market Snapshot

  • US stocks opened the session strong, but gains have faded as President Trump threatens to shut down government and trade concerns linger
  • President Trump said during a press event with Democratic leaders Nancy Pelosi and Chuck Schumer, "I will be the one to shut it down" 
  • The S&P 500 is currently up 0.13%, Nasdaq Composite is up 0.21%, and Russell 2000 is up 0.35%
  • While China moves ahead with its plan to cut import tariffs on autos imported from the US, Bloomberg notes that 6 of the 10 top selling vehicles in China are US-built, German-badged SUVs
  • UK Prime Minister Theresa May will tour the capitals of the EU seeking concessions to get her Brexit deal passed in Parliment, European Commission Juncker said no renegotiations are possible though he allows for "clarifications", SkyNews reports Tory opposition is growing
  • Consumer Staples (+0.56%), Real Estate (+0.41%), and Tech (+0.2%) stocks are the top performers in the S&P 500 today
  • Industrials (-0.56%), Financials (-0.66%), and Energy (-0.67%) 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 1.58x
  • 7 stocks in the S&P500 are at 4-week highs while 247 stocks are at 4-week lows
  • 12 stocks in the S&P 500 are overbought while 46 stocks are oversold according to the 16-day RSI Measure
  • 30 stocks in the Nasdaq Composite are at 4-week highs while 300 stocks are at 4-week lows
  • 77 stocks in the Nasdaq Composite are overbought while 897 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving up at 23.13 from last yesterday's close of 22.64

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • The CEO of Alphabet’s (GOOGL) Google, Sundar Pichai, appeared before congress today and refuted claims of bias in US elections. In addition to accusations regarding meddling in US elections, Pichai denied claims that Google is working to develop a censored search engine in China, dubbed Firefly. Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas. 
  • Anheuser-Busch InBev NV (ENXTBR: ABI) had its credit rating cut by Moody’s Investor Services, driven by the brewer’s struggle to lessen its USD$100bn debt burden. Moody’s lowered its credit rating for Anheuser-Busch's unsecured senior debt from A3 to Baa1, the lowest tier of investment-grade debt. This news comes even after Anheuser-Busch announced a plan to slash its dividend payment by 50% to combat high debt levels. Anheuser-Busch is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Aramark (AMRK) shares are plunging in the stock’s largest intraday decline in 3 years after reporting disappointing FY2019 guidance. Aramark projected adjusted EPS in FY2019 of between USD$2.27 and USD$2.37, which excludes M&A motorization. According to Goldman Sachs, the adjusted EPS guidance translates to GAAP EPS guidance of between USD$2.32 and USD$2.42 while analysts’ consensus call for USD$2.50. Goldman Sachs believes that today’s sell-off of Aramark is overdone. Aramark is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • AT&T (T) was upgraded today at Citigroup to buy from neutral.  Citigroup upgraded AT&T in the wake of its recent weakness, writing that at this level the stock has “a better risk/reward scenario”.  Citigroup sees AT&T well positioned going into 2019.  AT&T is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Daimler AG (XTRA: DAI) has secured a purchase agreement for 20bn euros (USD$23bn) of battery cells through 2030 to leverage in its shift towards electric vehicles. By 2022, the Mercedes-Benz manufacturer plans to roll out some 130 hybrid and fully-electric car variants across its models. “After investing billions of euros in the development of the electric fleet and the expansion of our global battery network, we are now taking the next step,” said Daimler CEO Dieter Zetsche. Daimler is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Disney (DIS) had hoped to sell its 22 regional Fox Sports networks to one buyer.  The NY Post reports today, however, that it will sell them to multiple buyers as it conducts management meetings with multiple suitors.  Disney would not deny or confirm the news.  Disney is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • DSW Inc. (DSW) reports FY3Q2018 financials that generally beat analyst estimates. DSW reported FY3Q2018 adjusted EPS of UDS$0.70/share while analysts’ consensus called for USD$0.51/share. Driving DSW’s EPS beat was its comparable sales growth, which came in at 7.30% for FY3Q2018 while analysts only expected 4.32%. DSW is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Fiserv (FISV) was upgraded yesterday by Goldman Sachs.  Fiserv was upgraded to buy from neutral while its price target was hiked to USD$92 from USD$78.  Goldman Sachs sees resilient earnings growth in Fiserv and cited that in its upgrade.  Fiserv is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • FleetCor (FLT) was downgraded to neutral from buy today at Goldman Sachs.  FleetCor saw its price target lowered to USD$215 from USD$245.  FleetCor was downgraded as Goldman Sachs takes a more defensive position in the payments & IT sector.  FleetCor is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Portola (PTLA) shares are trading lower after the European Committee for Medicinal Products for Human Uses extended its review of Portola’s Ondexxya medication. Although the delay likely relates to, “minor,” issues with the treatment, according to William Blair analyst Matt Phillips, it is another setback in a long list of delays faced by Portola. Portola is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • Qualcomm’s (QCOM) victory in Chinese courts yesterday over Apple (AAPL) concerning a two-year legal dispute over smartphone patents is a very real problem for Apple investors. While Apple is calling Qualcomm’s injunction against the sale of several iPhone models a, “desperate move,” that the company intends to fight, Granite Investment Advisors fund manager Timothy Lesko believes that Apple will be forced to settle in time, saying, “Apple will eventually have to come to the negotiating table with 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.
  • Stitch Fix (SFIX) was downgraded today at William Blair to market perform from outperform.  Stitch Fix reported fiscal 1Q results that beat the highest estimates.  Stitch Fix reported adjusted 1Q ebitda of USD$14.3mm, while 7.98mm was consensus.  1Q revenue of USD$366.2mm was in line with 358.2mm expected.  Adjusted EPS of 10 cents compares to 3 cents expected.  Stitch Fix is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.

 

 

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 1.02 basis points to 2.73%
  • US 5-Year Treasury Bonds are higher with yields down -0.34 basis points to 2.71%
  • US 10-Year Treasury Bonds are higher with yields down -0.91 basis points to 2.84%
  • The US Treasury 2s-5s Spread has narrowed 1.36 basis points to -0.03%
  • The US Treasury 2s-10s Spread has narrowed 1.93 basis points to 0.11%
  • US Treasury 5s-10s Spread has narrowed 0.57 basis points to 0.14%
     

Currencies

  • EUR€ is currently down 0.387% against the USD$ to 1.1312
  • GBP£ is currently down 0.303% against the USD$ to 1.2523
  • CHF is currently down 0.297% against the USD$ to 1.0067
  • JPY¥ is currently little changed against the USD$ at 113.37

Commodities

  • WTI Crude is currently up 1.43% to USD$51.73/bbl with the Brent-WTI spread down USD$-0.77 to USD$7.44/bbl
  • Gold is currently little changed -0.03% to USD$1244.11/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
Twitter Inc Communication Services 31.3 4.58%            2,576,999
Aptiv PLC Consumer Discretionary 71.5 3.52%                124,721
General Motors Co Consumer Discretionary 36.8 2.79%                880,040
NRG Energy Inc Utilities 38.8 2.69%                620,664
PerkinElmer Inc Health Care 86.6 2.60%                  37,015
 
Underperformers Sector Price 1D % Chg Volume
Darden Restaurants Inc Consumer Discretionary 111 -2.97%                117,898
Everest Re Group Ltd Financials 220 -2.64%                  19,680
Discovery Inc Communication Services 28.7 -2.61%                384,705
NetApp Inc Information Technology 67.4 -2.48%                558,993
Michael Kors Holdings Ltd Consumer Discretionary 43.8 -2.37%                214,983