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US stocks continue march towards bear territory, unable to build on yesterday's gains

Dec 27, 2018

 

Market data as of 12:30pm EST

US Market Snapshot

  • US stocks continue their march towards bear territory, unable to build on yesterday's gains, with risk-off sentiment being felt broadly across US stocks today
  • US initial jobs claims for last week came at 216k, meeting consensus
  • The S&P 500 is currently down 1.85%, Nasdaq Composite is down 2.36%, and Russell 2000 is down 1.66%
  • WTI is trading below $45, last quoted at $44.95, down 2.75%
  • According to investment research firm AJ Bell, there have been 17 5%+ trading days for the S&P 500 since 1970.  Of those 17, 8 happened during the period of 2007 to 2009 while another 3 happened during the period of 2000-2003 -- AJ Bell suggests yesterday’s Boxing Day doesn’t remove the risk that we may be entering a bear market for the S&P 500
  • Utilities (-0.56%), Materials (-0.79%), and Consumer Staples (-1.18%) stocks are the top performers in the S&P 500 today
  • Tech (-2.37%), Telecom (-2.49%), and Consumer Discretionary (-2.75%) stocks are the worst performers in the S&P 500 today
  • Investor sentiment for US stocks is negative with the advance/decline ratio for the S&P 500 currently at 0.05x
  • 1 stock in the S&P500 is at 4-week highs while 334 stocks are at 4-week lows
  • 0 stocks in the S&P 500 are overbought while 48 stocks are oversold according to the 16-day RSI Measure
  • 12 stocks in the Nasdaq Composite are at 4-week highs while 493 stocks are at 4-week lows
  • 45 stocks in the Nasdaq Composite are overbought while 882 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving up at 32.86 from yesterday's close of 30.41

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Amazon.com Inc. (AMZN) and Walmart Inc. (WMT) may face headwinds in India after the country tightened its rules for foreign investment in e-commerce companies. India’s Trade Ministry passed measures on Wednesday that will require all e-commerce companies to treat vendors equally to prevent predatory pricing and deep discounts that reportedly threatened the country’s domestic retail industry. Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas. Walmart is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.
  • RBC is warning its clients that gaming chips manufactured by Advanced Micro Drives Inc. (AMD) and NVIDIA Corporation (NVDA) are facing falling prices on secondary platforms like Newegg, Amazon, and eBay. RBC detailed in a note to clients that falling chip prices could be indicative of a downturn in the gaming business or a result of a cooling cryptocurrency mining industry. AMD is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas. NVIDIA is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Apple Inc. (AAPL) will be the best performing FAANG stock in 2019, according to notable analyst Gene Munster. Munster believes that Apple will focus on revenue and earnings growth rather than iPhone sales in 2019 to deliver value to shareholders. With just a few days left in 2018, Apple is the second-worst performing company in the FAANG group. 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.
  • Banca Carige SpA (BIT: CRM) shares are plunging after its largest shareholder blocked a planned share sale to boost bank equity.  Malacalza Investimenti owns 27.5% of the bank and blocked the 400-million-euro sale of share at a December 22nd shareholders meeting.  It is not clear how Banca Carige will proceed.  Banca Carige is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.
  • Earthstone Energy (ESTE) saw its price target cut yesterday at Imperial Capital.  Earthstone Energy’s price target was cut to USD$8 from USD$12.  The cut came in the wake of Earthstone’s decision to cancel its purchase of Sabalo Holdings.  Earthstone Energy is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas
  • Facebook’s (FB) Instagram accidentally released an update to its application that introduced a redesigned horizontal news feed that replaced vertical scrolling. The small number of users to receive and implement the update reportedly took to social media to complain about the redesign. Instagram has since rolled back the update and said that it was only intended as, “a very small test.” Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. 
  • JD.com (JD) will restructure its JD Mall business unit into three different units going forward. The restructuring of JD.com’s most profitable business unit comes as management attempts to assure investors that the firm is not heavily reliant on Founder Liu Qiangdong, who was recently arrested in August on suspicion of rape. JD.com is rated “Top Short” in our China All-Cap Global Top Stock Ideas.  
  • NEC (TSE: 6701) has agreed to pay 8 billion Danish kroner (USD$1.2 billion) for KMD Holdings (NZSE: KMD).  NEC is making the acquisition to expand its services offerings in Europe.  KMD gives NEC entry into lucrative government services contracts.  NEC is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.  KMD Holdings is not rated in our Global Top Stock Ideas.
  • Royal Caribbean Cruises (RCL) is searching for a crew member feared to have fallen overboard during one of its cruises.  A British entertainer working on a Royal Caribbean ship did not report to work and is seen on camera footage on the ship’s dock area and then not again, leading to conclude he fell overboard.  A search is underway.  Royal Caribbean Cruises is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Sinopec (SEHK: 386) trading unit has suspended 2 executives after the unit incurred losses.  The Sinopec unit Unipec handles the trading of crude for the giant refining company and is very active in world markets.  The executives were said to be suspended for “work reasons” without any further information.  Many trading firms were poorly positioned during the recent crude weakness.  Sinopec is rated “Attractive” in our China All-Cap Global Top Stock Ideas. 
  • Tesla Inc. (TSLA) is, “poised to generate improved profitability and cash flow,” which, “puts the risk of a capital raise in the background for now,” wrote Wedbush analyst Daniel Ives in a note to clients. Wedbush forecasts a price target of USD$440/share for the electric car maker while maintaining an outperform rating. Ives added in his note to clients that Tesla, “has turned the corner on Model 3 production,” and, “demand looks very strong into 2019 and beyond based on underlying drivers for the electric vehicle market.” 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.
  • Vinci SA (ENXTPA: DG) has announced it will acquire London’s Gatwick Airport.  Vinci will pay USD$3.7 billion for 50.1%  of the airport as it was anxious to add to its portfolio.  Sovereign wealth funds from Abu Dhabi and Australia are selling.  Vinci is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas
  • Visa (V) has agreed to pay 61 pence per share for all of Earthport (LSE: EPO).  The deal values Earthport at 198 million pounds on a fully diluted basis.  Visa is paying a 250% premium for Earthport.  Visa is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  Earthport is not rated on our Global Top Stock Ideas.

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -5.05 basis points to 2.56%
  • US 5-Year Treasury Bonds are higher with yields down -4.01 basis points to 2.60%
  • US 10-Year Treasury Bonds are higher with yields down -5.56 basis points to 2.75%
  • The US Treasury 2s-5s Spread has widened 1.04 basis points to 0.04%
  • The US Treasury 2s-10s Spread has narrowed 0.5 basis points to 0.19%
  • US Treasury 5s-10s Spread has narrowed 1.55 basis points to 0.14%

Currencies

  • EUR€ is currently up 0.837% against the USD$ to 1.1448
  • GBP£ is currently up 0.15% against the USD$ to 1.2652
  • CHF is currently up 0.787% against the USD$ to 1.0122
  • JPY¥ is currently down 0.736% against the USD$ to 110.55
     

Commodities

  • WTI Crude is currently down -3.12% to USD$44.78/bbl with the Brent-WTI spread down USD$-0.28 to USD$7.55/bbl
  • Gold is currently up 0.85% to USD$1277.85/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
Applied Materials Inc Information Technology 36.5 0.91%            1,519,346
SCANA Corp Utilities 46.1 0.77%                213,888
Red Hat Inc Information Technology 178 0.64%                128,067
L3 Technologies Inc Industrials 183 0.61%                  37,031
Waters Corp Health Care 203 0.55%                  18,395
 
Underperformers Sector Price 1D % Chg Volume
Advanced Micro Devices Inc Information Technology 21.4 -6.42%            9,258,572
Perrigo Co PLC Health Care 64.1 -6.24%                208,016
Wynn Resorts Ltd Consumer Discretionary 108 -5.55%                629,514
Discovery Inc Communication Services 28.7 -5.35%                319,516
Williams Cos Inc/The Energy 25.6 -5.26%            1,164,497