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US stocks pare earlier losses, trading flat midday; consumer slow-down fears weigh on sentiment

Jan 10, 2019

 

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Market data as of 12:15pm EST

US Market Snapshot

  • US stocks pare earlier losses and are flat midday; fears of a consumer slow-down weigh on market sentiment today
  • The S&P 500 is currently up 0.03%, Nasdaq Composite is down 0.01%, and Russell 2000 is up 0.05%
  • WTI crude trades lower, though remains firmly agove $52 in midday trading
  • US Initial Jobless Claims for January 5th came slightly better at 216,000 versus 226,000 expected
  • The FOMC minutes released yesterday higlighted the Fed's desire to go slow with rate hikes in 2019, saying the Fed "could afford to be patient about further policy tightening" 
  • Disappointing holiday retail sales results from major department stores is dampening enthusiasm for US retail stocks this AM
  • The US goverment is no closer to reopening after President Trump and Congressional leaders met yesterday and came to no agreement, the shutdown is well into its third week
  • Utilities (+0.91%), Real Estate (+0.81%), and Industrials (+0.49%) stocks are the top performers in the S&P 500 today
  • Energy (-0.29%), Telecom (-0.34%), and Consumer Discretionary (-0.53%) 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 1.99x
  • 128 stocks in the S&P500 are at 4-week highs while 3 stocks are at 4-week lows
  • 4 stocks in the S&P 500 are overbought while 3 stocks are oversold according to the 16-day RSI Measure
  • 61 stocks in the Nasdaq Composite are at 4-week highs while 20 stocks are at 4-week lows
  • 638 stocks in the Nasdaq Composite are overbought while 19 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently  moving down at 0 from yesterday's close of 19.98
     

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Big Lots (BIG) was downgraded to neutral from buy at Goldman Sachs.  Big Lots’ price target was cut to USD$34 from USD$48.  The downgrade follow 2 disappointing quarters of results and concerns over margin compression.  Big Lots is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Boeing (BA) deliver the first 9 of 179 KC-46 planned aerial fuel-tankers to the US Air Force despite flaws in its camera system used for aerial refueling.  Boeing has accepted responsibility for fixing the planes and will do so in the coming years.  The KC-46 program is a USD44 billion upgrade to the aerial refueling tanker fleet of the US Air Force which is 2 years late.  Boeing is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Columbia Sportswear (COLM) was downgraded to hold from buy at Needham & Co.  Needham believes Columbia is fully valued at this price level.  Columbia Sportswear should hit its growth targets in 2019 but Needham thinks its multiple of 20.5 times earnings is not a good entry point.  Columbia Sportswear is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Fast Retailing (TSE:9983) reported fiscal 1Q operating income that missed consensus.  Fast Retailing fiscal 1Q operating income was 104.67 billion yen while 117.52 was consensus estimate.  Fiscal 1Q net sales of 644.47 trillion yen came below 656.76 billion yen expected.   Full year sales guidance of 2.3 trillion yen was maintained.  Fast Retailing is rated “Neutral” in our Japan Large-Cap Global Top Stock Ideas.
  • Ford (F) announced a major restructuring of its European operations as it looks to raise its stock price.  Ford is in talk with its unions about jobs cuts that are likely to run into the thousands.  Ford is likely close multiple production plants in Europe as part of the plan, specifics have yet to be announced.  Ford is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Kering (ENXTPA:KER) had its rating cut by USB to neutral from buy.  UBS lowered Kering’s price target to 450 euros from 575 euros.  UBS says the Gucci momentum that Kering has seen is topping out and led UBS to cut some of its 2019 assumptions, causing the rating cut.  UBS sees 11% organic growth in 2019.  Kering is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Kohl’s Corp (KSS) reports November/December SSSs of +1.2% vs. +6.9% for the period in CY2017.  The market is interpreting this result as negative even though management tightened its FY EPS guidance to USD$5.50 to USD$5.55 from USD$5.35 to USD$5.55.  Target is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Macy’s (M) reports holiday season (November and December) SSSs of +0.7% and cuts its full-year guidance for sales and EPS.  Macy’s now sees FY EPS in a range of USD$3.95 to USD$4.30 from previous guidance of USD$4.10 to USD$4.30.  Macy’s is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Nike (NKE) is the focus of a EU tax investigation of companies that use Dutch law to lower their tax payments.  The EU alleges Nike and others have used the Netherlands to set up structure that “unduly reduce their tax burden”, and that is unfair.  The EU probe will focus on the structure of royalty payments and how they are taxed.  Nike is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Samsung (KOSE:A005930) is set to unveil its new flagship S10 cell phone lineup on February 20th, the Wall Street Journal is reporting.  Samsung will introduce a version of the phone that is foldable and fully functional.  There will be 4 versions of the S10 unveiled on the 10th anniversary of the phone.  Samsung is not rated in our Global Top Stock Ideas.  
  • Snap (SNAP) was upgraded at Cowen to market perform from underperform.  Snap has lost 70% of its value since its February 2018 peak.  Its change to an auction-based platform for ad sales and expected improvement in ROI were cited as reasons for the upgrade and USD$6 price target.  Snap  is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Target (TGT) reports November/December SSSs of +5.7%.  Target management reaffirms its full-year guidance for revenues and EPS.  In unrelated news, Target also announces that CFO Cathy Smith will be retiring and that the company is conducting an extensive search for its next CFO.  Target is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Twitter (TWTR) received a double upgrade from Merrill Lynch today, with it’s rating rising to buy from underperform.  In the Twitter report, Merrill Lynch details a survey it did of 1,000 companies that found Twitter delivered the best engagement among platforms for the companies surveyed.  Among social media platforms, Merrill sees Twitter with the most to gain as social media spending grows.  Twitter is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
     

 

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US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -0.61 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 flat with yields little changed -0.01 basis points to 2.70%
  • The US Treasury 2s-5s Spread has narrowed 0.07 basis points to -0.01%
  • The US Treasury 2s-10s Spread has widened 0.6 basis points to 0.16%
  • US Treasury 5s-10s Spread has widened 0.67 basis points to 0.17%
     

Currencies

  • EUR€ is currently down 0.295% against the USD$ to 1.1509
  • GBP£ is currently down 0.219% against the USD$ to 1.2761
  • CHF is currently down 0.78% against the USD$ to 1.0182
  • JPY¥ is currently little changed against the USD$ at 108.28

Commodities

  • WTI Crude is currently little changed -0.04% to USD$52.34/bbl with the Brent-WTI spread little changed USD$0.11 to USD$8.24/bbl
  • Gold is currently down -0.38% to USD$1288.65/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
Macy's Inc Health Care 30 -18.22%            3,174,291
American Airlines Group Inc Information Technology 32 -7.15%            2,451,220
Kohl's Corp Information Technology 64.8 -6.71%                686,662
L Brands Inc Financials 26.1 -4.96%            1,106,601
United Continental Holdings Inc Consumer Discretionary 83 -4.78%                958,204
 
Underperformers Sector Price 1D % Chg Volume
PG&E Corp Information Technology 23.6 6.51%            1,228,978
Constellation Brands Inc Real Estate 164 5.84%                721,246
Newell Brands Inc Materials 18.4 4.00%                427,304
General Electric Co Health Care 7.27 3.94%            5,297,936
Westrock Co Energy 37.9 3.33%                185,294

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