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US stocks little changed in listless trading with volume 20% below average

Dec 28, 2018

 

Market data as of 12:15pm EST

US Market Snapshot

  • US stocks have moved between gains and losses today with little to move markets; volume is averaging 20% below normal in US trading
  • The S&P 500 is currently up 0.21%, Nasdaq Composite is up 0.31%, and Russell 2000 is down 0.01%
  • According to an analysis of the S&P 500 cyclically adjusted P/E ratio (CAPE), S&P 500 stocks valuations are in-line with their long-run average : the spread between the CAPE Yield (inverse of the CAPE) minus the “real” yield for the US 10-year is at 2.64%, in-line with its average over the last 4 decades, which suggests the implied risk premium for the S&P 500 is  not low and that stocks are not “expensive” 
  • The US government shutdown marches on, now in its seventh day
  • Financials (+0.7%), Consumer Discretionary (+0.63%), and Healthcare (+0.37%) stocks are the top performers in the S&P 500 today
  • Materials (-0.14%), Real Estate (-0.29%), and Energy (-0.49%) 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 0.85x
  • 0 stocks in the S&P500 are at 4-week highs while 13 stocks are at 4-week lows
  • 0 stocks in the S&P 500 are overbought while 33 stocks are oversold according to the 16-day RSI Measure
  • 10 stocks in the Nasdaq Composite are at 4-week highs while 469 stocks are at 4-week lows
  • 42 stocks in the Nasdaq Composite are overbought while 440 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently  moving down at 0 from yesterday's close of 29.96
     

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Amazon (AMZN) is in talks with the New York Yankees about buying the regional sports network YES from Disney (DIS), according to the Wall Street Journal.  The Yankees already own 20% of YES and have first rights on buying the rest.  Disney is said to be seeking USD$5-6 billion for the network.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  Disney is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • American Airlines (AAL) suffered flight cancellations and delays in New York after an electrical outage.  Its operations at LaGuardia airport were interrupted after the airport briefly lost power last night.  American Airlines canceled flights and delayed others as the airport switched to backup generators.  American flights were expected to return to normal today.  American Airlines is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • Canadian marijuana producer Aphria Inc. (TSX: APHA) said that a proposed CAD$2.8bn (USD$2.1bn) hostile offer by Green Growth Brands Ltd. is significantly undervalued. The proposed bid is roughly 23% below Aphria’s 20-day average share price. “The board has determined that the GGB proposal, as it currently stands, significantly undervalues the company,” said Aphria Chairman Irwin Simon. Aphria is not rated in our Global Top Stock Ideas.
  • Boeing (BA) has won an order for 11 737-Max jets from BOC Aviation Ltd. (SEHK: 2588), according to press reports out of Asia.  BOC Aviation Ltd. has signed a lease with unidentified airlines for the jets.  BOC Aviation Ltd. will have the option for an undisclosed number of additional jets from Boeing, according to the report.  BOC Aviation Ltd. is rated “Attractive” in our China All-Cap Global Top Stock Ideas.  Boeing is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Consolidated Edison (ED), the electricity provider for New York City, suffered an explosion at a substation in Queens.  The explosion illuminated the night sky with a blue light that could be seen for miles.  Residents called police reporting a plane crash with some believing that aliens had landed.  The explosion cut electricity to LaGuardia airport temporarily.  Consolidated Edison is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • HMV Group (LSE: HMV) has filed for insolvency for the second time in 6 years after observing disappointing sales over the holiday period. The 97-year old music and entertainment retailer’s potential liquidation threatens 2,025 jobs. In January 2013, HMV entered insolvency procedures after the trend towards online streaming services dragged down sales. HMV is not rated in our Global Top Stock Ideas.
  • JPMorgan Chase & Co. (JPM) has been fined HK$12.5mm (USD$1.6mm) by the Hong Kong Monetary Authority for failing to meet anti-money laundering and counter-terrorist financing law requirements. JPMorgan Hong Kong reportedly violated 6 different provisions of the laws between April 2012 and February 2014 relating to lack of customer due diligence and improper handling of wire transfers. JPMorgan is rated "Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Lockheed Martin (LMT) has secured a contract from the Naval Air Systems Command to support the company’s F-35 Lightning II Technology Refresh 3 System. Valued at USD$712.5mm, the deal will last until March 2023. Lockheed Martin is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas. 
  • Nissan (TSE: 7201) said it will cut car production by 20% on less China demand.  Nissan will cut production by 30,000 units in the next quarter, according to press reports.  Nissan produced 400,000 cars in China in the last quarter.  Nissan in rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.
  • NVIDIA Corporation (NVDA) is facing a class action lawsuit headed by Glancy Prongay & Murray LLP that relates to NVIDIA shares purchased between August 10th, 2017 and November 15th, 2018. The class action lawsuit pertains to the company’s alleged improper revenue guidance. NVIDIA is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. 
  • Sears Holdings (SHLD.Q) shares are trading notably higher despite today being the deadline for the company to avoid liquidation. According to CNBC, Sears’ survival hinges on a USD$4.6bn deal from ESL Investments, although the private equity company has yet to officially submit the bid. Sears is not rated in our Global Top Stock Ideas.  
  • Sony (SNY, TSE: 6758) said it will boost production of chips for next-generation 3D cameras for mobile phones after interest from phone manufactures.  Sony said it will ramp up mass production of the chips this summer when they will already be powering a number of mobile phones.  Sony did not give production estimates but said the unit is already profitable.  Sony is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.
  • On Friday Tesla (TSLA) will institute the changes it agreed to with the US Securities and Exchange Commission.  The SEC wants 2 new independent board members and they will start on Friday.  Additionally, it wants CEO Elon Musk’s tweets monitored much more closely for inappropriate content.  Telsa is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • The European Union (EU) has published draft guidelines for ethical artificial intelligence (AI) development that will impact tech giants like Alphabet Inc. (GOOGL) and Microsoft Inc. (MSFT). The EU plans to invest 1.5bn euro in AI by 2020 while working to ensure privacy and ethics in the process. Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas. Microsoft is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Transocean (RIG) has signed a five-year drilling contract and rig design and construction management contract with Chevron USA (CVX). The deal will see the completion of two ultra-deepwater drillships that are already under construction. The drilling contract alone is worth an estimated USD$830mm. Transocean is not rated in our Global Top Stock Ideas. Chevron is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Verizon (VZ) customers suffered nationwide telecom service disruption after CenturyLink, a contractor that handles data network traffic management for Verizon, suffered a failure in its network.  Verizon did not say how many people were affected but data and mobile service was affected in various parts of the United States.  Verizon is rated “Attractive” in our US Large-Cap Global Top Stock Ideas

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -2.82 basis points to 2.43%
  • US 5-Year Treasury Bonds are higher with yields down -4.35 basis points to 2.57%
  • US 10-Year Treasury Bonds are higher with yields down -2.7 basis points to 2.73%
  • The US Treasury 2s-5s Spread has narrowed 1.53 basis points to 0.04%
  • The US Treasury 2s-10s Spread has widened 0.12 basis points to 0.21%
  • US Treasury 5s-10s Spread has widened 1.65 basis points to 0.17%
     

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1445
  • GBP£ is currently up 0.482% against the USD$ to 1.2705
  • CHF is currently up 0.454% against the USD$ to 1.0169
  • JPY¥ is currently down 0.577% against the USD$ to 110.37
     

Commodities

  • WTI Crude is currently up 1.39% to USD$45.23/bbl with the Brent-WTI spread down USD$-2.51 to USD$6.82/bbl
  • Gold is currently up 0.27% to USD$1279.18/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 Health Care 7.27 4.20%          10,252,261
Applied Materials Inc Financials 31.6 2.92%            1,215,107
Coty Inc Real Estate 6.34 2.68%                593,704
Lam Research Corp Energy 133 2.27%                302,960
Chipotle Mexican Grill Inc Real Estate 415 2.21%                  35,867
 
Underperformers Sector Price 1D % Chg Volume
United Rentals Inc Consumer Discretionary 105 -2.61%                  79,967
Cabot Oil & Gas Corp Financials 23.8 -2.44%                416,731
Under Armour Inc Consumer Discretionary 17.9 -2.23%                238,980
L Brands Inc Financials 26.1 -1.88%                178,642
Michael Kors Holdings Ltd Information Technology 37.9 -1.87%                103,225