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US stocks surge midday as renewed trade optimism drives stocks higher

Dec 12, 2018

 

Market data as of 12:15pm EST

US Market Snapshot

  • US stocks are surging midday with a broad-based rally, renewed US-China trade optimism is driving stocks higher 
  • President Trump's statement that he would intervene in the Huawei CFO case to get a trade deal plus concrete moves by China to open access for US companies are fueling today's positive sentiment
  • WSJ is reporting China is drafting a replacement for its "Made in China 2025" plan, in an effort to make access for US companies easier
  • UK Prime Minister Theresa May vows to defeat a challenge to her leadership in a confidence vote that could occur as soon as this evening
  • The S&P 500 is currently up 1.52%, Nasdaq Composite is up 2.03%, and Russell 2000 is up 1.84%
  • Tech (+2.1%), Consumer Discretionary (+2.1%), and Healthcare (+1.98%) stocks are the top performers in the S&P 500 today
  • Consumer Staples (+0.31%), Utilities (-0.35%), and Real Estate (-0.97%) 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 5.85x
  • 32 stocks in the S&P500 are at 4-week highs while 55 stocks are at 4-week lows
  • 12 stocks in the S&P 500 are overbought while 57 stocks are oversold according to the 16-day RSI Measure
  • 32 stocks in the Nasdaq Composite are at 4-week highs while 315 stocks are at 4-week lows
  • 114 stocks in the Nasdaq Composite are overbought while 573 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently little changed at 21.16 from yesterday's close of 21.76

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Apple (AAPL) is considering moving iPhone production out of China is tariffs become onerous, according to a Bloomberg story today.  Apple, for now, will maintain its current setup but will reassess its situation if tariffs rise more than 10%.  Up until now, iPhones have not been targeted for tariffs, but Apple will continue monitoring developments.  Apple is rated “Top Buy” in our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Boeing (BA) will see its USD$22 billion order for jets canceled by Lion Air in the wake of its 737 Max crash.  Lion Air’s owner is angry at Boeing and said he feels betrayed in an interview with Bloomberg.  The order has not been formally canceled but he is preparing to do so. Boeing is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Facebook Inc. (FB) evacuated its employees from buildings in its Silicon Valley headquarters following a bomb threat late yesterday afternoon. Genevieve Grinda, a Facebook spokesperson, said on the matter, “We are working closely with local authorities to investigate this threat and further monitor the situation.” Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. 
  • Pandora A/S (CPSE: PNDORA) shares are falling the most in a month after Carnegie slashed its price target for the global jewelry maker from DKK375/share to DKK350/share. Carnegie cited lower estimates and weak like-for-like momentum as reasons for the price target cut, although it did maintain its “Hold” recommendation for the stock. Pandora is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • PG&E (PCG) confirmed its workers saw damage to one of its transmission towers on the day the Camp Fire began.  The tower it mentioned is at the same location regulators have identified as that of the fire’s origin.  PG&E has lost 47% of its market cap since the fire.  PG&E is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Tencent (TCEHY, HK 700) priced its Tencent Music (TME) IPO at USD$13, the bottom of the IPO price range.  Tencent sold 82 million shares in the IPO and the company will debut with a valuation of just over USD$23 billion.  Tencent raised USD$1.1 billion in the offering.  Tencent is rated “Attractive” in our China All-Cap Global Top Stock Ideas.  Tencent Music is not rated in our Global Top Picks.
  • Under Armour Inc. (UAA) shares are trading lower after saying that it expects annual revenue growth for its North America region in the low single-digits from 2020 through 2023. Under Armour provided this guidance at the company’s first investors day since 2015. Under Armour is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas. 
  • United Rentals (URI) shares are trading notably higher after the company dismissed fears of slowed growth in reporting FY2019 guidance. United Rental forecasts revenue for FY2019 to fall between USD$9.15bn and USD$9.55bn while the average analyst estimate is for USD$8.94bn. Additionally, United Rental sees FY2019 ebitda between USD$4.35bn and USD$4.55bn while analysts’ consensus calls for USD$4.34bn. United Rentals is rated “Attractive” in our US large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Uniti Group Inc. (UNIT) shares are falling after Morgan Stanley downgraded the stock from equal-weight to underweight while slashing its price target from USD$24/share to USD$16/share. In a note to clients, Morgan Stanley cited that increased capital costs, elevated leverage, and Windstream uncertainty all pose a risk to the company’s dividend. Uniti Group is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
     

 

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 0.61 basis points to 2.77%
  • US 5-Year Treasury Bonds are lower with yields up 2.19 basis points to 2.76%
  • US 10-Year Treasury Bonds are lower with yields up 2.33 basis points to 2.90%
  • The US Treasury 2s-5s Spread has widened 1.58 basis points to -0.01%
  • The US Treasury 2s-10s Spread has widened 1.72 basis points to 0.13%
  • US Treasury 5s-10s Spread has widened 0.14 basis points to 0.14%

Currencies

  • EUR€ is currently up 0.415% against the USD$ to 1.1364
  • GBP£ is currently up 1.313% against the USD$ to 1.2651
  • CHF is currently little changed against the USD$ at 1.008
  • JPY¥ is currently little changed against the USD$ at 113.2

Commodities

  • WTI Crude is currently up 1.92% to USD$52.64/bbl with the Brent-WTI spread down USD$-1.48 to USD$7.16/bbl
  • Gold is currently little changed 0.19% to USD$1245.63/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
United Rentals Inc Industrials 116 8.52%                239,511
Twitter Inc Communication Services 31.3 6.68%            2,946,985
Netflix Inc Communication Services 289 5.49%            1,524,081
Nektar Therapeutics Health Care 39.3 5.16%                218,508
Newfield Exploration Co Energy 17.6 5.13%                741,905
 
Underperformers Sector Price 1D % Chg Volume
Under Armour Inc Consumer Discretionary 21.8 -8.24%                612,045
Under Armour Inc Class C Consumer Discretionary 23.1 -8.09%            1,123,845
Mosaic Co/The Materials 36.2 -5.30%                623,943
Macerich Co/The Real Estate 50.1 -2.96%                123,652
Verizon Communications Inc Communication Services 59.5 -2.46%            1,626,452