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US stocks rally with strong holiday sales fueling risk-on sentiment; oil rallies 7.5%

Dec 26, 2018

 

Market data as of 12:30pm EST

US Market Snapshot

  • US stocks sold off early, with the S&P500 touching 19.8% down from its peak, just whiff from bear market territory-but then turned north and have been rallying since, with strong holiday sales fueling risk-on sentiment
  • WTI crude is rallying 7.5%,trading at $45.65 as reports circulate of a possible second meeting to discuss additional production cuts
  • US holiday retails sales rose 5.1% compared with a year ago, the strongest growth in 6 years, according to a report in the Wall Street Journal today
  • The December Richmond Fed factory gauge fell the most ever, on weaker orders and shipments, coming at -8 while consensus was for 15; this is the fourth regional fed gauge to come below consensus
  • The US government shutdown continues into its 5th day with no end in sight as Congress is away for the holidays.
  • The S&P 500 is currently up 1.98%, Nasdaq Composite is up 2.78%, and Russell 2000 is up 1.82%
  • Consumer Discretionary (+3.36%), Energy (+2.81%), and Tech (+2.67%) stocks are the top performers in the S&P 500 today
  • Consumer Staples (+0.94%), Real Estate (+0.62%), and Utilities (-0.02%) 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 10.9x
  • 1 stock in the S&P500 are at 4-week highs while 481 stocks are at 4-week lows
  • 0 stocks in the S&P 500 are overbought while 355 stocks are oversold according to the 16-day RSI Measure
  • 12 stocks in the Nasdaq Composite are at 4-week highs while 1188 stocks are at 4-week lows
  • 27 stocks in the Nasdaq Composite are overbought while 1573 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 33.15 from yesterday's close of 36.07

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Amazon (AMZN) reported “record-breaking” holiday season sales, saying it shipped more items worldwide than it ever has.  Amazon said tens of millions of people stated Prime memberships this holiday season.  Amazon shipped over 1 billion items for free for Prime members.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Chesapeake Energy Corporation (CHK) shares are trading significantly higher after board member Archie Dunham purchased USD$4.13mm worth of company shares. Dunham purchased the shares for a weighted average of USD$1.965/share. The purchase increases Dunham’s total Chesapeake Energy holdings by 29% to 9.35mm shares.  Chesapeake is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • ExxonMobil (XOM) is on track for its worst year since 1981, according to a Bloomberg report today.  ExxonMobil is in the midst of one of the biggest restructuring efforts ever, a USD$200 billion, 7-year plan.  ExxonMobil has no problem with funding the plan but the time it takes to see the fruit of these efforts could be some time in the future, the story goes on to note.  ExxonMobil is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • GenMark Diagnostics (GNMK) shares are gaining after the company reported that it received FDA 510(k) market clearance for its ePlex Blood Culture Identification Fungal Pathogen Panel. The panel, which was developed together with the ePlex BCID-GP and BCID-GN panels, pertains to the diagnosis and disease management of bloodstream infections that could potentially lead to sepsis. GenMark is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas. 
  • Hitachi Construction Machinery Co. (TSE: 6305), the world’s largest maker of construction excavators, said it sees demand in 2019 flat or somewhat lower.  Hitachi Construction Machinery Co. said North America and India will not be able to make up for lagging demand in the rest of the world, as had been the recent trend.  Hitachi Construction Machinery Co. has seen 3 years of strong demand and lower commodity prices as well as trade uncertainly has tamped demand.  Hitachi Construction Machinery Co. is rated “Unattractive” in our Japan Large-Cap Global Top Stock Ideas.  
  • JD.com (JD) announced it approved a USD$1 billion share buyback program.  JD.com last approved a USD$1 billion buyback in September of 2015.  The buyback comes as the end of a year that has seen JD.com stock fall 52%.  JD.com is rated “Top Short” in our China All-Cap Global Top Stock Ideas.
  • Maruti Suzuki India Limited (NSEI: MARUTI), India’s largest automobile manufacturer, has issued an official recall of its Super Carry model. The recall pertains to a potential defect in the fuel filter of 5,900 Super Carry vehicles that were manufactured between April 26th, 2018 and August 1st, 2018. Maruti Suzuki is rated “Unattractive” in our India All-Cap Global Top Stock Ideas.
  • Mastercard (MA) said holiday sales in the US rose 5.1% from a year ago, according to a report in the Wall Street Journal.  That is the strongest growth in 6 years.  Mastercard considers the holiday season to be November 1st until December 24th.  Online sales grew 19.1% while department stores sales fell 1.3%.  Mastercard is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Mitsubishi UFJ Financial Group Inc. (TSE: 8306) has announced the promotion of Deputy Chairman Kanetsugu Mike to replace CEO Nobuyuki Hirano. Hirano will become the new Chairman of Mitsubishi UFJ’s Board of Directors while the company’s stock is down 37% YTD. Mitsubishi UFJ is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.
  • Morgan Stanley (MS) has agreed to pay a USD$10mm fine in order to settle allegations that its anti-money laundering program failed to properly monitor tens of billions of dollars in transactions that passed through brokerage accounts for more than 5 years. Although it agreed to pay the fine, Morgan Stanley never admitted to nor denied the Financial Industry Regulatory Authority’s (FINRA) allegations. Morgan Stanley is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Sharp Corporation (TSE: 6753) will spin-off its electronic device business and laser business into wholly-owned units. The spin-offs will take effect on April 1st, 2019 and aim to revitalize the company’s business relating to 8K, artificial intelligence (AI), and Internet of Things (IoT). Sharp Japan is not rated in our Global Top Stock Ideas.
  • Tesla (TSLA) has been working overtime to deliver vehicles to owners before the end of the year in its usual end-of-year push.  Tesla is trying to maintain strong growth numbers while helping customers take advantage of a tax credit for 2018 that is in effect, which requires the delivery take place before 2018 comes to a close.  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.  

 

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 1.53 basis points to 2.57%
  • US 5-Year Treasury Bonds are lower with yields up 1.67 basis points to 2.59%
  • US 10-Year Treasury Bonds are lower with yields up 2.13 basis points to 2.75%
  • The US Treasury 2s-5s Spread has widened 0.14 basis points to 0.02%
  • The US Treasury 2s-10s Spread has widened 0.6 basis points to 0.19%
  • US Treasury 5s-10s Spread has widened 0.46 basis points to 0.16%

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1393
  • GBP£ is currently little changed against the USD$ at 1.2657
  • CHF is currently down 0.533% against the USD$ to 1.0076
  • JPY¥ is currently up 0.354% against the USD$ to 110.7
     

Commodities

  • WTI Crude is currently up 8.43% to USD$45.9/bbl with the Brent-WTI spread down USD$-1.74 to USD$7.22/bbl
  • Gold is currently up 0.27% to USD$1272.01/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
Perrigo Co PLC Health Care 64.1 10.22%                424,845
Kohl's Corp Consumer Discretionary 67.1 6.19%                217,823
Marathon Oil Corp Energy 16.6 6.16%            1,294,768
Dollar General Corp Consumer Discretionary 111 5.44%                174,133
Facebook Inc Communication Services 139 5.34%            4,550,838
 
Underperformers Sector Price 1D % Chg Volume
PG&E Corp Utilities 26.8 -2.85%                544,752
Weyerhaeuser Co Real Estate 26.7 -2.27%                811,447
Campbell Soup Co Consumer Staples 39.6 -1.77%                261,287
L3 Technologies Inc Industrials 183 -1.52%                  49,291
Harris Corp Industrials 143 -1.18%                  47,785