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US stocks directionless midday as China resumes US soybean purchases

Dec 13, 2018

 

Market data as of 12:15pm EST

US Market Snapshot

  • US stocks are directionless midday with markets mixed, small caps are especially weak; mixed signals from China weigh on sentiment
  • China Ministry of Commerce said its officials have been in constant contact with counterparts in the US and disccussions are going "smooth"; US officials were invited to China and the Ministry said Chinese officials would be happy to visit the US
  • China resumed today purchases of US soybeans with between 1.5 and 2 million metric tons bought overnight
  • China has detained a second Canadian citizen and is investigating him for "suspected activites harming state security"
  • According to the Ryan Labs Cash index (and Bloomberg News), cash is “outperforming” both the S&P 500 and the Barclays US Aggregate Bond index this year (a/o Tuesday’s close) -- this would be the first time cash has outperformed both asset classes since 1994
  • After surviving a confidence vote Wednesday night, UK Prime Minister Theresa May is in Brussels attempting to negotiate for increased concessions, notably on the “Ireland Question” as she tries to build support for a BREXIT vote in the UK Parliament
  • Goldman Sachs believes UK Prime Minister Theresa May’s victory last night among her Conservative Party colleagues will serve as a “Pyrrhic Victory” with the possibility that BREXIT could be reversed – Goldman is suggesting that the support for BREXIT outside of Prime Minister May’s Conservative Party is limited (remember that PM May was part of the Conservative Party that advocated for “Remain” ahead of the BREXIT referendum)
  • The S&P 500 is currently down 0.17%, Nasdaq Composite is down 0.65%, and Russell 2000 is down 1.01%
  • Utilities (+1.26%), Real Estate (+0.88%), and Consumer Staples (+0.54%) stocks are the top performers in the S&P 500 today
  • Materials (-0.68%), Telecom (-0.71%), and Consumer Discretionary (-0.78%) stocks are the worst performers in the S&P 500 today
  • 28 stocks in the S&P500 are at 4-week highs while 23 stocks are at 4-week lows
  • 4 stocks in the S&P 500 are overbought while 35 stocks are oversold according to the 16-day RSI Measure
  • 34 stocks in the Nasdaq Composite are at 4-week highs while 241 stocks are at 4-week lows
  • 160 stocks in the Nasdaq Composite are overbought while 344 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently little changed at 21.16 from yesterday's close of 21.46

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Apple (AAPL) said it plans to invest USD$1 billion to build a new campus in Austin, Texas that could eventually have 15,000 employees.  Apple will also open new offices in San Diego and Culver City, California.  Apple is making the investments in an effort to make good on its promise to strengthen its contributions to the American economy.  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.
  • Ball Corporation (BLL) announced intentions to sell its metal beverage packaging facilities in China to ORG Technology Co. Ltd. (SZSE: 002701). ORG Technology will pay USD$225mm in total for the Chinese facilities with the deal expected to close in the second half of 2019. Ball Corporation is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. ORG Technology is not rated in our Global Top Stock Ideas.
  • Ciena Corporation (CIEN) reports FY4Q2018 financials that contains strong 3-year guidance. Ciena reported FY4Q2019 revenue of 899.36mm while consensus estimates called for USD$862.54mm. Additionally, Ciena forecasted annual revenue growth to range between 6% and 8% over the next 3 years. Ciena Corporation is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Delta (DAL) shares are falling after reporting disappointing FY2019 profit forecasts, signaling caution to investors. Delta Air Lines projects EPS between USD$6/share and USD$7/share, the midpoint of which misses analysts’ consensus of USD$6.70/share.  Delta is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • FireEye (FEYE) is being downgraded from overweight to equal-weight at Morgan Stanley while maintaining its price target of USD$21/share. Morgan Stanley wrote that it sees, “limited upside,” at current trading levels based on a sum-of-parts analysis. FireEye is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Top Short” in our US Information Technology Global Top Stock Ideas.
  • Flowserve (FLS) shares are trading higher after management reaffirmed its guidance for 2018 and established projected financial trends through FY2022. Flowserve projects operating margins between 15% and 17% through FY2022 while targeting free cash flow generation of 100%+ of net income in FY2022. Flowserve is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • Fred’s (FRED) reported 3Q results of an 83 cents per share loss.  Fred’s saw same store sales fall 5.3% in 3Q.  Fred’s saw 3Q net sales of USD$306.4mn.  Fred’s said it continues to evaluate potential opportunities to monetize all non-core assets.  Fred’s is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • General Electric (GE) was upgraded by JP Morgan to neutral from overweight.  JP Morgan set GE’s price target at USD$6, a market low.  The consensus price target for GE is presently USD$11.38.  General Electric is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • Japan Post (TSE 6178) will buy a stake in US insurer Aflac (AFL), according to the Nikkei newspaper.  Japan Post will spend USD$2.6 billion to buy a 7-8% stake in Aflac.  The holding would become an equity-method affiliate in about 4 years, the report notes.  Japan Post is making the investments as it seeks to boost long-term profitability.  Japan Post is rated “Neutral” in our Japan Large-Cap Global Top Stock Ideas.  Aflac is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Oracle (ORCL) has filed a second lawsuit against the US Defense Department over its choice of choice of a vendor for the Pentagon’s JEDI program.  Oracle claims the contract was written to benefit Amazon’s (AMZN) Web Services and wants the contract rewritten.  Previous complaints to the US General Accounting Office were unsuccessful.   Oracle is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Seaworld Entertainment (SEAS) said the US Department of Justice has closed its investigation without taking any action.  The investigation of Seaworld Entertainment involved its response to a film critical of its business and subsequent disclosures related to its response.  Seaworld Entertainment said the Justice Department now considers the matter concluded.  Seaworld Entertainment is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • XPO Logistics Inc. (XPO) shares are tanking after short-seller Spruce Point Capital Management warned investors of, “unreliable and dubious financials,” for the trucker and warehouse operator. Additionally, Spruce Point Capital Management warned investors of heavy debt levels and a, “loss of confidence in management.” XPO Logistics have since dismissed the comments as, “baseless.” XPO Logistics, Inc. Is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -1.85 basis points to 2.75%
  • US 5-Year Treasury Bonds are higher with yields down -1.53 basis points to 2.75%
  • US 10-Year Treasury Bonds are higher with yields down -0.19 basis points to 2.90%
  • The US Treasury 2s-5s Spread has widened 0.32 basis points to 0%
  • The US Treasury 2s-10s Spread has widened 1.66 basis points to 0.15%
  • US Treasury 5s-10s Spread has widened 1.34 basis points to 0.15%

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1358
  • GBP£ is currently little changed against the USD$ at 1.2629
  • CHF is currently little changed against the USD$ at 1.0061
  • JPY¥ is currently up 0.3% against the USD$ to 113.63
     

Commodities

  • WTI Crude is currently up 1.82% to USD$52.08/bbl with the Brent-WTI spread down USD$-0.84 to USD$7.65/bbl
  • Gold is currently little changed -0.2% to USD$1243.18/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

On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
General Electric Co Industrials 7.94 7.60%          16,627,681
Aflac Inc Financials 45.4 5.94%                662,837
Kimberly-Clark Corp Consumer Staples 115 3.70%                175,058
Nektar Therapeutics Health Care 39.3 2.87%                215,284
ONEOK Inc Energy 61.3 2.85%                133,496
 
Underperformers Sector Price 1D % Chg Volume
Under Armour Inc Consumer Discretionary 21.8 -6.63%                437,475
Monster Beverage Corp Consumer Staples 58.8 -6.44%                576,772
Under Armour Inc Consumer Discretionary 23.1 -4.80%                882,075
Best Buy Co Inc Consumer Discretionary 64.1 -4.71%                365,203
Hanesbrands Inc Consumer Discretionary 15.7 -4.53%                614,347