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US stocks whipsaw between gains and losses to close little changed

Dec 11, 2018

 

US Markets End of Day Snapshot

  • US stocks opened higher, sold off through early afternoon, then caught a bid late afternoon only to fade to close little changed, on a day filled with threats of a government shutdown, with each comment out of Washington being watched by the market 
  • President Trump threatens to shut down government with Democratic leaders Nancy Pelosi and Chuck Schumer, "I will be the one to shut it down" ; later in the day senior Congressional leader signaled a clear desire to avoid a shutdown
  • Reuters is reporting former Canadian diplomat Michael Kovrig has been detained in China, saying it was not clear if this was related to the Huawei case; this detention was reported early today and has yet to explain the reason
  • The S&P 500 finished down 0.04%, Nasdaq Composite up 0.16%, and Russell 2000 is down 0.21%
  • Consumer Staples (+0.85%), Healthcare (+0.3%), and Utilities (+0.3%) stocks were the top performers in the S&P 500 today
  • Materials (-0.37%), Industrials (-0.6%), and Financials (-1.02%) 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 0.89x
  • 7 stocks in the S&P 500 hit 4-week highs while 247 stocks reached 4-week lows
  • 12 stocks in the S&P 500 closed overbought while 46 stocks closed oversold according to the 16-day RSI Measure
  • 30 stocks in the Nasdaq Composite hit 4-week highs while 300 stocks reached 4-week lows
  • 77 stocks in the Nasdaq Composite closed overbought while 897 stocks closed oversold according to the 16-day RSI Measure
  • The VIX finished lower at 21.76 after closing at 22.64 yesterday

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. 
  • Anglo American Plc (LSE: AAL) shares are trading higher after reporting that it expects to produce more commodities this year and more cheaply than indicated in prior forecasts. Anglo American’s copper-equivalent production, which converts the miner’s mined commodities into a comparable ratio, is expected to be 2$ higher than previously forecasted while costs will be 5% lower. Anglo American is rated “Neutral” in our United Kingdom All-Cap 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. 
  • Asos Plc (ASC LN) had its price target slashed by Morgan Stanley today to 3,200 pence, the lowest in the market.  Asos’ cash balance has fallen to 43 million pounds, down from 173 million pounds in September 2016.  Morgan Stanley said that while Asos has self-financed its expansion for the last 15 years, “it no longer seems able to do so”.  Asos is rated “Neutral” in our United Kingdom All-Cap 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.
  • CalAmp (CAMP) fell over 15% today after 2 downgrades.  Northland downgraded CalAmp to market perform from outperform saying “changes may take some time.”  Roth Capital cut CalAmp’s price target to USD$27 from USD$24 citing supply chain challenges, while maintaining a buy rating.   CalAmp is rated “Top Buy” in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Credit Suisse Group AG (SWX: CSGN) shares are trading slightly higher after CEO Tidjane Thiam announced the company’s intention to buyback 3bn francs (USD$3bn) of stock and an upcoming dividend hike. Switzerland’s second-largest lender plans to buyback stock over the next two years. Analysts expect details of the stock buyback and dividend hike to be revealed at Credit Suisse’s investor day on Wednesday. Credit Suisse is rated “Unattractive” in our European 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.
  • Delta Airlines (DAL) announced it is barring emotional-support animals that are less than 4 months old on its flights.  Delta Airlines also said it is barring all emotional-support animals on its flights of over 8 hours.  Delta indicated rising incidents onboard have led to the restrictions.  Delta Airlines is rated “Neutral” in both our US Large-Cap and US Industrials 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. 
  • Distribudora Internacional de Alimentacion (BME: DIA) and its largest shareholder told its banks it is unable to repay a USD$2.1 billion debt it owes, according to a story in El Confidencial.  The news comes as the company is set to leave the Ibex 35 index later this month.  The stock traded over 15% lower on the news.  Distribudora Internacional de Alimenacion is rated “Top Short” in our European SMID-Cap 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.
  • Lundbeck (CPSE: LUN) shares are rising after Nordea upgraded the stock from “Sell” to “Hold”. Additionally, Nordea lifted its price target for Lundbeck from DKK255/share to DKK259/share. The new price target incorporated an EPS estimate increase for 2019 and on by between 1% and 2%, according to Nordea analyst Michael Novod. Lundbeck is rated “Attractive” in our European SMID-Cap 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.
  • Tencent (TCEHY, HK: 700) priced the IPO of its Tencent Music unit at USD$13 per share, according to Dow Jones.  Tencent was marketing 82 million shares in the unit and if confirmed, it was priced at the bottom of the IPO range.  Tencent is rated “Attractive” in our All-China Global Top Stock Ideas.
  • Verizon (VZ) reported it will record a severance change of USD$1.3-1.6 in the fourth quarter, the results of its headcount reduction and buyout programs.  Verizon also said it take a non-cash goodwill impairment charge of ~USD$4.6 billion as well.  This charge is due to weakness in its Oath media business.  Verizon is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Weatherford International (WFT) was downgraded by Well Fargo Securities to market perform from outperform.   JP Morgan also downgraded Weatherford International to neutral from overweight.  Both downgrades cited lower oil prices and its effects on spending.  Weatherford International is not rated in our Global Top Stock Ideas.
  • WPP (LSE WPP) announced it intends to see USD$347mm in annual cost savings by the end of 2021.  If realized, that would push its profit margin from 13% to at least 15%.   WPP will spend 300mm pounds per year to restructure and sees comparable organic sales dropping by 0.5%, up from previous guidance of a fall of between 0.5-1%.  WPP is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 3.9 basis points to 2.76%
  • US 5-Year Treasury Bonds are lower with yields up 3.03 basis points to 2.74%
  • US 10-Year Treasury Bonds are lower with yields up 2.15 basis points to 2.87%
  • The US Treasury 2s-5s Spread has narrowed 0.87 basis points to -0.02%
  • The US Treasury 2s-10s Spread has narrowed 1.75 basis points to 0.11%
  • US Treasury 5s-10s Spread has narrowed 0.88 basis points to 0.13%

Currencies

  • EUR€ is down 0.326% against the USD$ in after hours to 1.1319
  • GBP£ is down 0.629% against the USD$ in after hours to 1.2482
  • CHF is down 0.287% against the USD$ in after hours to 1.0068
  • JPY¥ is little changed 0.071% against the USD$ in after hours to 113.41

Commodities

  • WTI Crude is up 1.27% to USD$51.65/bbl with the Brent-WTI spread down USD$-0.3 to USD$7.7/bbl
  • Gold is little changed -0.14% to USD$1242.76/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
Broadcom Inc Information Technology 236 3.17%            2,342,900
Twitter Inc Communication Services 31.3 3.05%            4,756,918
Campbell Soup Co Consumer Staples 39.6 2.92%                846,117
PerkinElmer Inc Health Care 86.6 2.87%                142,999
Church & Dwight Co Inc Consumer Staples 66 2.73%                481,703
 
Underformers Sector Price 1D % Chg Volume
Fluor Corp Industrials 41.1 -5.35%                991,001
National Oilwell Varco Inc Energy 32.7 -3.74%            1,199,833
Darden Restaurants Inc Consumer Discretionary 111 -3.43%                439,135
Everest Re Group Ltd Financials 220 -3.25%                  96,183
Invesco Ltd Financials 20.3 -3.06%            1,703,050