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US stocks get coal in their stockings this Christmas Eve, close broadly lower, VIX above 35

Dec 24, 2018

 

US Markets End of Day Snapshot

  • US stocks get nothing but coal in their stockings this Christmas Eve, falling the entire abbreviated session in heavy volume
  • The US government shutdown and associated turmoil in Washington, DC continues to weigh on investor sentiment
  • The S&P 500 finished down 2.14%, Nasdaq Composite is down 2.21%, and Russell 2000 is down 1.3%
  • WTI crude us falling 4.2%, trading at $43.71, driven lower by continued worries about growing crude oil supplies in the US and decelerating global growth, overshadowing indications from OPEC that the group may make further cuts to CY2019 production targets
  • Italian PM Giuseppe Conte has vowed to continue his coalition's expansionist policies, despite recent negotiations with the EU over its budget  
  • In spite of Friday’s sell-off, the SPDR S&P 500 ETF Trust (SPY) experienced positive fund flows of US$6.98 billion – the biggest one day increase since February 2018
  • Consumer Discretionary (-2.02%), Telecom (-2.04%), and Financials (-2.34%) stocks were the top performers in the S&P 500 today
  • Real Estate (-3.7%), Energy (-4.01%), and Utilities (-4.23%) 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 0.09x
  • 1 stock in the S&P 500 hit 4-week highs while 353 stocks reached 4-week lows
  • 0 stocks in the S&P 500 closed overbought while 266 stocks closed oversold according to the 16-day RSI Measure
  • 13 stocks in the Nasdaq Composite hit 4-week highs while 1082 stocks reached 4-week lows
  • 39 stocks in the Nasdaq Composite closed overbought while 1625 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed up 5.55 points today to 35.66 after closing at 30.11 last week
     

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • AbbVie (ABBV) is teaming up with Indian drugmaker Lupin (BSE: 500257) to work together on cancer treatments.  AbbVie and Lupin will work to develop and commercialize treatments for hematological cancers, according to a statement from Lupin.  AbbVie is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  Lupin is not rated in our Global Top Stock Ideas.
  • Amazon (AMZN) has received a request from the SEC to disclose how much of its revenue comes from its Prime customers, according to a report in the Wall Street Journal.  Amazon has reportedly refused the request from the SEC.  The request is part of a broader effort from the SEC to learn more about companies’ sources of revenue.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • BMW (DB: BMW) is facing a criminal probe in South Korea over safety issues.  BMW is alleged to have concealed safety issues related to fire hazards and delayed recalls.  BMW was also fined USD$10mn for delayed recalls related to a coolant leak problem.  BMW has been under investigation for that issue separately since August.  BMW is rated “Unattractive” in our European Global Top Stock Ideas.
  • Euronext (ENXTPA: ENX) has made an offer to acquire the Oslo Stock Exchange.  Euronext is offering USD$712mn for the Norwegian exchange.  Euronext has already secured backing from almost half of the Oslo Exchange’s shareholders.  The initial offer is a 32% premium to last valuation.  Euronext is rated "Top Buy" in our European SMID-Cap Global Top Stock Ideas.
  • ExxonMobil (XOM) has halted its mapping activities off the coast of Guyana after the Venezuelan navy “aggressively” interrupted the activities.  ExxonMobil was mapping in the Stabroek block, an area Venezuela has disputed with Guyana.  The block in question is expected to yield a large amount of oil, ExxonMobil has upped its estimate there 3 times this year.  ExxonMobil is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Fresh Del Monte Produce (FDP) call options trading reached 2-year high volume levels pre-market today. Fresh Del Monte call options volume totaled 501 this morning, 10x more than the 20-day average and the most since November 16th, 2016.  Fresh Del Monte is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Top Short” in our US Consumer Staples Global Top Stock Ideas. 
  • JD.com (JD) CEO Richard Liu will not be charged with rape by US authorities and has been freed from jail.  The CEO and founder controls the USD$35 billion Chinese e-commerce giant and his arrest in August had been hanging over the company.  JD.com is rated “Top Short” in our China All-Cap Global Top Stock Ideas 
  • Perrigo Co Plc (PRGO) was upgraded today by IBI Research to outperform from market perform.  IBI raised Perrigo’s target price to USD$6y, up from USD$47.  The average price target is USD$69.45.  The upgrade comes in the wake of Perrigo’s 29% tumble on Friday on its announcement of an unexpected tax assessment.  Perrigo is not rated in our Global Top Stock Picks.  Euronext is rated “Top Buy” in our US SMID-Cap Global Top Stock Ideas.
  • Playtech PLC (LSE: PTEC) shares are falling after reporting that Italy’s plans to increase their tax on gambling activities will result in a reduced FY2019 adjusted EBITDA for the company. After the Italian Senate passed the country’s 2019 budget on Sunday, Playtech expects a material decrease in EBITDA for FY2019 by between 20mm euro and 25mm euro. Playtech is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Snap (SNAP) employees are questioning the management style of its CEO, which many call distant and aloof, according to a Wall Street Journal article.  CEO Evan Spiegel flies in a private jet alone and requested and received armed security, and with the company’s stock below $5, employees are questioning the need for these things.  Snap is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.
  • Tesla (TSLA) shares are falling after reporting it will cut its car prices in China.  The price cut comes after China agreed to lower tariffs on cars imported from the US.  Telsa said it will cover the cost of any tariffs customers paid on cars that did not arrive before the tariffs were cut.  Tesla is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • UPS (UPS)  has agreed to settle a lawsuit with the US Equal Employment Opportunity Commission over uniform issues.  The EEOC alleges that UPS refused to hire individuals who had beards or long hair for religious reasons, also saying when it did hire these individuals, they were segregated at the company.  UPS settled the case for USD$4.9mn.  UPS is rated “Top ” 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 -5.66 basis points to 2.58%
  • US 5-Year Treasury Bonds are higher with yields down -5.76 basis points to 2.58%
  • US 10-Year Treasury Bonds are higher with yields down -4.3 basis points to 2.74%
  • The US Treasury 2s-5s Spread has narrowed 0.09 basis points to 0%
  • The US Treasury 2s-10s Spread has widened 1.36 basis points to 0.16%
  • US Treasury 5s-10s Spread has widened 1.46 basis points to 0.17%

Currencies

  • EUR€ is up 0.405% against the USD$ in after hours to 1.1418
  • GBP£ is up 0.633% against the USD$ in after hours to 1.2725
  • CHF is up 0.746% against the USD$ in after hours to 1.0124
  • JPY¥ is down 0.773% against the USD$ in after hours to 110.36
     

Commodities

  • WTI Crude is down -2.14% to USD$44.42/bbl with the Brent-WTI spread down USD$-1.01 to USD$6.58/bbl
  • Gold is up 0.98% to USD$1269.2/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

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Outperformers Sector Price 1D % Chg Volume
Newmont Mining Corp Materials 32.3 3.25%                697,251
PG&E Corp Utilities 26.8 2.66%                850,709
LKQ Corp Consumer Discretionary 27.8 1.40%                739,795
Kohl's Corp Consumer Discretionary 67.1 1.38%                350,344
Target Corp Consumer Discretionary 71.2 1.29%                525,158
 
Underformers Sector Price 1D % Chg Volume
Hess Corp Energy 54.4 -10.98%                862,791
Kimberly-Clark Corp Consumer Staples 115 -7.71%                249,252
Campbell Soup Co Consumer Staples 39.6 -6.99%                516,177
Consolidated Edison Inc Utilities 79.2 -5.83%                108,281
Clorox Co/The Consumer Staples 166 -5.81%                128,167