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US stocks little changed at close as trade concerns persist

Dec 13, 2018

 

US Markets End of Day Snapshot

  • US stocks were higher at the open but lost steam through the day with mixed signals from China causing trade concerns to persist; small-cap stocks suffered today
  • The S&P 500 finished down 0.02%, Nasdaq Composite is down 0.39%, and Russell 2000 is down 1.55%
  • European Central Bank President Mario Draghi said in Frankfurt today that economic risks "are trending to the downside" due to geopolitical risks, trade protectionism and increased volatility; the ECB's QE bond-buying program ends this month
  • 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
  • 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)
  • Utilities (+0.88%), Consumer Staples (+0.69%), and Real Estate (+0.61%) stocks were the top performers in the S&P 500 today
  • Consumer Discretionary (-0.44%), Financials (-0.59%), and Materials (-1.13%) 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 0.58x
  • 28 stocks in the S&P 500 hit 4-week highs while 23 stocks reached 4-week lows
  • 4 stocks in the S&P 500 closed overbought while 35 stocks closed oversold according to the 16-day RSI Measure
  • 34 stocks in the Nasdaq Composite hit 4-week highs while 241 stocks reached 4-week lows
  • 160 stocks in the Nasdaq Composite closed overbought while 344 stocks closed oversold according to the 16-day RSI Measure
  • The VIX finished flat at 21.16 after closing at 21.46 yesterday

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.
  • Coca-Cola (KO) was downgraded by UBS today to neutral from buy.  Coca-Cola has a number of risks it is facing that could inhibit it from reaching long global growth targets.  Coca-Cola is fairly valued at present price, UBS notes.  Coca-Cola is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples 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.
  • GAM Holdings (SWX: GAM) said it is having problems stemming outflows from its asset management business in the wake of its scandal involving a well-known portfolio manager.  GAM Holdings said it will post a loss of USD$931mn for this year as it is forced to write-down the value of its business.  GAM Holdings will also cut 10% of its workforce.  GAM Holdings is rated “Neutral” in our European SMID-Cap 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.
  • G4S Plc (LSE GFS) is considering an exit from the armored car business via an IPO of its unit.  G4S said the dwindling use of physical notes in developed countries has led to its consideration of an IPO.  G4S said the unit could be worth about USD$2 billion and G4S rose the most in 2 years on the news.  G4S is rated “Top Short” in our United Kingdom All-Cap 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.
  • LEONI AG (DB: LEO) shares are popping after Reuters reported that it is in the early stages of talks to merge with Motherson Sumi Systems Limited (BSE: 517334). The report by Reuters cites that Motherson Sumi still needs to secure financing. The deal is expected to be worth 1bn euros.  Leoni is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas. Motherson Sumi is not rated in our Global Top Stock Ideas.
  • Metro AG (DB: B4B) shares are falling after CEO Olaf Koch said on the sidelines of the company’s annual press conference that its efforts to reverse sales declines in Russia will take another 2 to 3 quarters. Koch detailed further that, while he is optimistic of the company’s turnaround in Russia, FY2018 and FY2019 profit in the country will still fall. Metro AG is rated “Neutral” in our European SMID-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.
  • Proctor & Gamble (PG) was upgraded to but today at Bank of America Merrill Lynch in a report today.  Proctor & Gamble should sustain its present sales momentum into 2019, the report notes.  A number of Proctor & Gamble initiatives are starting to bare fruit and are cited as primary reasons for the confidence in 2019 and upgrade.  Proctor & Gamble is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
  • Sacyr S.A. (BME: SCYR) and Salini Impregilo SpA (BIT: SAL), the two building companies behind a consortium to expand the Panama Canal, are plummeting on a report that an arbitration court has ordered the consortium to pay back nearly USD$548mm in after cost overruns. The initial advanced payments for the venture came in 2009. Sacyr is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas. Salini is rated “Neutral” in our European SMID-Cap 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.
  • Sports Direct International Plc (LSE: SPD) shares are plunging the most in 2 years after CEO Mike Ashley commented that the company’s business in November was, “unbelievably bad.” Additionally, Sports Direct International warned investors that fixing problems at its House of Fraser department-store will cost more than expected. Sports Direct International is not rated in our 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.
  • XXL ASA (OB: XXL) shares are trading down after being downgraded by Credit Suisse from outperform to neutral. Additionally, Credit Suisse slashed its price target for XXL by 37.14% from 70 Norwegian Krone/share to 44 Norwegian Krone/share. Credit Suisse cited concerns of current leverage posing a risk to the firm’s dividend payments as the reason for the downgrade and price target cut. XXL is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas.

 

US Treasuries

 

  • US 2-Year Treasury Notes are higher with yields down -1.24 basis points to 2.75%
  • US 5-Year Treasury Bonds are higher with yields down -1.36 basis points to 2.75%
  • US 10-Year Treasury Bonds are lower with yields up 0.35 basis points to 2.91%
  • The US Treasury 2s-5s Spread has narrowed 0.12 basis points to -0.01%
  • The US Treasury 2s-10s Spread has widened 1.59 basis points to 0.15%
  • US Treasury 5s-10s Spread has widened 1.71 basis points to 0.16%

Currencies

  • EUR€ is little changed 0.079% against the USD$ in after hours to 1.136
  • GBP£ is up 0.253% against the USD$ in after hours to 1.2661
  • CHF is little changed 0.02% against the USD$ in after hours to 1.0063
  • JPY¥ is up 0.274% against the USD$ in after hours to 113.6
     

Commodities

  • WTI Crude is up 2.8% to USD$52.58/bbl with the Brent-WTI spread little changed USD$-0.13 to USD$8.15/bbl
  • Gold is little changed -0.24% to USD$1242.64/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
General Electric Co Industrials 7.94 7.30%          30,204,646
Aflac Inc Financials 45.4 6.64%            1,709,621
Kimberly-Clark Corp Consumer Staples 115 3.93%                446,658
Macerich Co/The Real Estate 50.1 3.54%                752,773
Yum! Brands Inc Consumer Discretionary 91.9 3.32%                769,396
 
Underformers Sector Price 1D % Chg Volume
Monster Beverage Corp Consumer Staples 58.8 -6.98%            1,470,317
Hanesbrands Inc Consumer Discretionary 15.7 -6.63%            1,956,685
Under Armour Inc Consumer Discretionary 21.8 -6.31%            1,154,652
American Airlines Group Inc Industrials 38.4 -5.50%            3,048,132
Mattel Inc Consumer Discretionary 13.8 -5.25%            1,171,261