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US stocks recover from earlier losses as oil rally boosts sentiment

Jan 02, 2019

 

Market data as of 12:15pm EST

US Market Snapshot

  • US stocks erased most of the early session losses with a rally in oil helping improve sentiment for stocks
  • Saudi Arabia appears to be fufilling its promise to cut oil production, Bloomberg is reporting, after analyzing observed tanker volumes
  • WTI crude is surging 4.3%, trading at $47.37 on production news out of Saudi Arabia
  • Markit US Manufacturing PMI for December came at 53.8, in line with the 53.9 consensus
  • The S&P 500 is currently down 0.36%, Nasdaq Composite is down 0.17%, and Russell 2000 is up 0.19%
  • Stock Market strategists suggest metals stocks are set to recover in CY2019 and will be one of the best performing industry sectors with a peak US Dollar  
  • Energy (+2.21%), Consumer Discretionary (+0.3%), and Financials (+0.23%) stocks are the top performers in the S&P 500 today
  • Healthcare (-1.59%), Utilities (-1.93%), and Real Estate (-2.32%) 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 0.71x
  • 3 stocks in the S&P500 are at 4-week highs while 1 stocks are at 4-week lows
  • 0 stocks in the S&P 500 are overbought while 20 stocks are oversold according to the 16-day RSI Measure
  • 19 stocks in the Nasdaq Composite are at 4-week highs while 269 stocks are at 4-week lows
  • 113 stocks in the Nasdaq Composite are overbought while 153 stocks are oversold according to the 16-day RSI Measure
  • The VIX is flat at 25.38 from yesterday's close of 25.42

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Abbott Labs (ABT) was downgraded to sell from neutral at Citi today.  Abbott Labs’ price target was lowered to USD$68 from USD$72.  Abbott Labs’ price target implies 8% downside from its last close.  Abbott Labs is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Aflac Inc. (AFL) has been downgraded by JPMorgan Chase & Co. to neutral from overweight. JPMorgan Chase & Co. forecasts a price target of USD$51/share for Aflac, implying a 12% upside from Monday’s close. Across industry estimates, Aflac maintains an average price target of USD$46.50. Aflac is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Akami (AKAM) was downgraded today to market perform from outperform at JP Morgan.  Akami’s price target was cut to USD$73 from USD$86.  Akami will see lower top-line growth than previously expected.  Akami is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Baidu Inc. (BIDU) Chairman Robin Li said in an open letter today that the firm will focus on opportunities in artificial intelligence (AI) technology in 2019. In the open letter, Li highlighted the enormous opportunities for growth and augmentation in the technology. Baidu is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Banca Carige (BIT: CRG) saw its operations placed under temporary administration by the European Central Bank.  Banca Carige saw this happen after it failed to raise additional capital last week.  A team from the ECB will help the bank lower risk and potentially find a partner.  Banca Carige is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas.
  • Becton, Dickinson & Co (BDX) was named a top large-cap pick at JP Morgan for 2019.  Becton, Dickinson will see 6-7% growth in 2019, growing faster than peers.  Becton, Dickinson will see margin expansion in 2019 in the wake of its acquisition of Bard, 2019 will see full integration of the Bard business.  Becton, Dickinson & Co is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • BioMarin Pharmaceutical Inc. (BMRN) has been downgraded by Raymond James from outperform to market perform. BioMarin currently maintains 22 buy recommendations, 6 hold recommendations, and 0 sell recommendations across industry ratings. Over the last year, analysts have raised BioMarin’s consensus price target by 0.8%. BioMarin is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Centrais Electricas Brasileiras S.A. - Electrobras (BOVESPA: ELET6) is trading higher after CEO Wilson Ferreira Jr. Said that he was invited to stay by Brazil’s new government to carry out a possible privatization of the state-controlled utility. “We’re still going to study what is the best way forward,” Ferreira told reporters, adding, “I will sit down with the government to define what will be the capitalization model.” Electrobras is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas. 
  • Facebook (FB) Messenger is likely set to introduce a dark mode, according to reports. Jane Machun Wong, a tech tipster, posted a screenshot on Twitter that appears to be a work in progress of a dark mode interface for Facebook Messenger. A dark mode for Facebook Messenger would effectively make the application easier to use at night while saving battery for Android users. Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Geely Automotive (SEHK: 175) released the first photos of its new models as it seeks to broaden its automotive offerings.  Geely Automotive released photos of a new coupe SUV that is based on its new modular architecture.  Geely did not give a data it will go on sale nor a price for the vehicle.  Geely Automotive is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Netflix (NFLX) has removed a TV from streaming in Saudi Arabia at the request of regulators there.  Netflix removed a show that is critical of the US-Saudi Arabia relationship after regulators said the show runs afoul of Saudi Arabia’s cybersecurity laws.  Netflix is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Omega Healthcare (OHI) announced that it will acquire MedEquities Realty Trust (MRT) in a deal that values MedEquities at USD$600mm in enterprise value. The acquisition will see Omega take on USD$34mm in mortgage loans while diversifying the firm’s property portfolio to 7 different states. Omega Healthcare is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. MedEquities is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.
  • Tata Steel Ltd (BSE: 500470) has its stock downgraded today by CLSA.  Tata Steel was downgraded to sell from neutral at CLSA.  Tata Steel’s price target was slashed to 460 rupees from 815 rupees, implying an 8.6% downside from its last price.  Tata Steel is not rated in our Global Top Stock Ideas.
  • Tesla Inc. (TSLA) shares are falling after its Model 3 deliveries missed analyst estimates in CY4Q2018. Tesla delivered 63,150 Model 3 vehicles, missing analysts’ consensus of 63,698 vehicles. Additionally, Tesla announced that it will cut the price of its vehicles in the US by USD$2,000 in an effort to absorb the federal EV tax credit that was cut in half on Tuesday. 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.  
  • Windstream Holdings Inc. (WIN) shares are soaring after the network communications and technology solutions provider announced the sale of its EarthLink consumer internet business to Trive Capital. Trive Capital will pay USD$330mm in cash for EarthLink, indicating an EV/sales multiple of roughly 2x and an EV/EBITDA multiple of about 4x. Windstream is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas. 
  • Wright Medical Group (WMGI) was chosen as a 2019 top picks among medical technology companies by Piper Jaffray.  Wright Medical Group should see “solid growth” in 2019 in a sector it says “is cheap”.   Wright Medical Group is not rated in our Global Top Stock Ideas.

 

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 1.62 basis points to 2.50%
  • US 5-Year Treasury Bonds are higher with yields down -1 basis points to 2.501%
  • US 10-Year Treasury Bonds are higher with yields down -1.96 basis points to 2.66%
  • The US Treasury 2s-5s Spread has narrowed 2.62 basis points to 0%
  • The US Treasury 2s-10s Spread has narrowed 3.58 basis points to 0.16%
  • US Treasury 5s-10s Spread has narrowed 0.96 basis points to 0.16%

Currencies

  • EUR€ is currently down 1.003% against the USD$ to 1.135
  • GBP£ is currently down 1.13% against the USD$ to 1.2596
  • CHF is currently down 0.726% against the USD$ to 1.0112
  • JPY¥ is currently down 0.392% against the USD$ to 109.31

Commodities

  • WTI Crude is currently up 3.5% to USD$47/bbl with the Brent-WTI spread up USD$1.08 to USD$8.24/bbl
  • Gold is currently up 0.26% to USD$1285.92/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
General Electric Co Health Care 7.27 6.61%            9,929,608
Wynn Resorts Ltd Health Care 98.1 5.46%                589,189
Perrigo Co PLC Financials 39.6 4.80%                209,824
Hess Corp Health Care 41.5 4.57%                184,919
Brighthouse Financial Inc Health Care 31.6 4.56%                116,348
 
Underperformers Sector Price 1D % Chg Volume
Hologic Inc Consumer Discretionary 40.7 -5.72%                606,064
Abbott Laboratories Information Technology 70.6 -4.24%                579,990
Akamai Technologies Inc Financials 61.7 -4.03%                232,470
Medtronic PLC Consumer Discretionary 89.7 -3.68%                460,406
Apartment Investment & Management Co Industrials 43.5 -3.51%                  88,717