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US stocks rising midday on positive trade news, more dovish Fed comments; WTI surging over 4%

Jan 09, 2019

 

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Market data as of 12:15pm EST

US Market Snapshot

  • US stocks are rising on positive trade news at the conclusion of trade talks as well as more Fed officials making dovish comments
  • The US and China wrapped up trade negotiations with both sounding an optimistic tone that a final agreement could be reached
  • The US confirmed that China agreed to buy more agricultural goods, energy, and manufactured items
  • WTI crude oil is surging 4.8%, trading at $52.16, after Saudi Arabia confirmed it is committed to supporting the price of crude
  • Multiple Federal Reserve regional bank heads echoed comments of Fed Chief Powell, with all saying a go-slow approach to rate hikes makes the most sense at this time 
  • The S&P 500 is currently up 0.53%, Nasdaq Composite is up 0.86%, and Russell 2000 is up 0.57%
  • Reuters is reporting that Fitch Rating’s head of sovereign ratings said that if the US shutdown goes on until March 1st and there is a problem with the debt ceiling later in the year, Fitch may need to consider a cut to the US AAA rating 
  • Tech (+1.41%), Energy (+1.36%), and Industrials (+0.82%) stocks are the top performers in the S&P 500 today
  • Telecom (-0.47%), Consumer Staples (-0.65%), and Real Estate (-1.12%) 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 2.62x
  • 90 stocks in the S&P500 are at 4-week highs while 5 stocks are at 4-week lows
  • 3 stocks in the S&P 500 are overbought while 2 stocks are oversold according to the 16-day RSI Measure
  • 53 stocks in the Nasdaq Composite are at 4-week highs while 27 stocks are at 4-week lows
  • 539 stocks in the Nasdaq Composite are overbought while 36 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 19.48 from yesterday's close of 20.47
     

Stocks Trending in the News

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  • Advanced Auto Parts (AAP)  was upgraded by Merrill Lynch to buy from neutral.  Merrill Lynch hiked Advance Auto Part’s price target to USD$187, up from USD$160.  Advance Auto Part’s average price target is presently USD$200.  In the last week, Barclay’s also upgraded Advance Auto Part to buy and raised its target to USD$205.  Advance Auto Part is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Akorn Inc. (AKRX) shares are falling after saying that the company received a warning letter from the US Food and Drug Administration (FDA). The warning letter from the FDS pertained to poor aseptic and sterilization practices in April and May of 2018 at the generic drug maker’s plant in Decatur, Illinois. Akorn is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US SMID-Cap Global Top Stock Ideas. 
  • Carbonite (CARB) was upgraded from equal-weight to overweight at Barclays with a USD$38/share price target. Barclays cites an out-of-line valuation as reasoning for the upgrade. Carbonite shares fell 23% in the most recent quarter. Carbonite is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Constellation Brands Inc. (STZ) shares are falling after reporting FY3Q2018 financials that disappointed analyst expectations. Constellation Brands also warned that it expects a decline in both profit and sales from its wine and spirits business for the current fiscal year. Higher transportations costs and larger investments in marketing are also hurting the company. Constellation Brands is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas. 
  • Delta Airlines (DAL) was downgraded at Imperial Capital to in-line from outperform.  Imperial lowered Delta Airlines’ price target to USD$53 from USD$77.  Delta Airlines’ consensus price target is presently USD$67.81.  Imperial expects fewer fare hikes and an overall more challenging environment in 2019.  Delta Airlines is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Facebook (FB) and Alphabet’s (GOOGL) Google are violating cyber laws in Vietnam, according to regulators there.  Facebook and Google are allowing anti-government content on their sites, inciting anti-government sentiment, which is against Vietnamese law.  Authorities said Facebook and Google have one year to fix the problems and must work with authorities to make that happen.  Facebook is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.  Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas
  • Fiat Chrysler Automobiles NV (BIT: FCA) is reportedly near settling a two-year long criminal investigation by the US Justice Department. The investigation concerns if Fiat Chrysler knowingly sold diesel vehicles that violated emissions rules. In October, Fiat Chrysler allocated USD$810mm to deal with expenses related to diesel probes by the US Justice Department. Fiat Chrysler is not rated in our Global Top Stock Ideas.
  • The Greenbrier Companies (GBX) shares erased gains as high as 8.5% from early in the day after Cowen called the company’s most recent reporting period, “a somewhat noisy quarter.” In reporting financials for FY1Q2019, Greenbrier generated revenue that topped the largest analyst estimate and reported an EPS that beat analysts’ consensus estimate. Greenbrier is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.  
  • Lennar (LEN) reported 4Q18 net earnings of USD$796.1 million or USD$2.42 per diluted share.  Lennar delivered 14,15 new homes, up 64% y/y.  Backlog of USD$6.6 billion is up 85% y/y.  Total revenues of USD$6.5 billion is up 71% y/y.  Lennar is rated "Attractive" in our US Large-Cap Global Top Stock Ideas and "Neutral" in our US Consumer Discretionary Global Top Stock Ideas.
  • Morgan Stanley (MS) was upgraded to buy from hold at Citi Bank. Across industry ratings, Morgan Stanley maintains 20 buy recommendations, 9 hold recommendations, and 0 sell recommendations. Morgan Stanley is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • United Continental Holdings, Inc. (UAL) has been downgraded by Imperial Capital from in-line to underperform while its price target was slashed from USD$110/share to a street-low USD$73/share. Imperial Capital cites potential weakness in China and valuation re-rating due to low fuel prices as reasons for the downgrade. United Continental is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.

 

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US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -0.4 basis points to 2.54%
  • US 5-Year Treasury Bonds are higher with yields down -0.68 basis points to 2.54%
  • US 10-Year Treasury Bonds are lower with yields up 0.7 basis points to 2.69%
  • The US Treasury 2s-5s Spread has narrowed 0.28 basis points to -0.01%
  • The US Treasury 2s-10s Spread has widened 1.1 basis points to 0.14%
  • US Treasury 5s-10s Spread has widened 1.38 basis points to 0.15%

Currencies

  • EUR€ is currently up 0.734% against the USD$ to 1.1525
  • GBP£ is currently up 0.338% against the USD$ to 1.276
  • CHF is currently up 0.53% against the USD$ to 1.0245
  • JPY¥ is currently down 0.368% against the USD$ to 108.35

Commodities

  • WTI Crude is currently up 4.78% to USD$52.16/bbl with the Brent-WTI spread little changed USD$-0.11 to USD$8.3/bbl
  • Gold is currently little changed 0.24% to USD$1288.53/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

 

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S&P 500 Movers

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Outperformers Sector Price 1D % Chg Volume
PG&E Corp Information Technology 23.6 8.20%            1,637,659
Align Technology Inc Financials 211 6.98%                263,398
ABIOMED Inc Energy 316 6.80%                  77,561
Intuitive Surgical Inc Health Care 469 6.32%                177,136
Western Digital Corp Real Estate 36.9 6.05%            1,379,538
 
Underperformers Sector Price 1D % Chg Volume
Constellation Brands Inc Real Estate 164 -9.50%                832,704
Digital Realty Trust Inc Consumer Discretionary 105 -6.46%                170,389
Perrigo Co PLC Financials 39.6 -3.56%                156,917
CVS Health Corp Consumer Staples 65.2 -3.43%            1,128,536
Equinix Inc Consumer Discretionary 346 -3.36%                125,495

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