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US stocks mixed midday, tech shares rising with rally in semiconductors

Jan 24, 2019

 

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Market data as of 1:15pm EST

US Market Snapshot

  • US stocks are mixed midday, tech shares are higher with a rally in semiconductor stocks; generally good earnings news is being offset by trade concerns 
  • Trade concerns were fueled by Commerce Secretary Wilbur Ross saying the US and China are "miles apart" on trade
  • White House Economic adviser Larry Kudlow later said he sees "a fair chance" of the US and China coming to a deal
  • The S&P 500 is currently down 0.41%, Nasdaq Composite is up 0.17%, and Russell 2000 is up 0.31%
  • The Philadelphia Semiconductor Indes is up 5.1% in the wake of strong earnings results in the sector
  • US Initial Jobless Claims for the week of January 19th came at 199,000, below the 218,000 consensus and the first time it fell below the 200k level in decades
  • US Manufacturing PMI for January came at 54.9, above 53.5 consensus
  • US Services PMI for January came at 54.2, above 54.0 consensus
  • US Composite PMI for January came at 54.5
  • Research by Bank of America suggests institutional investors are showing a preference for individual stock picking at the expense of buying ETFs.  Will CY2019 be the year that Active Investing finally bounces back?
  • Bloomberg publishes a fascinating analysis of “passive” funds to find that many are really “passive-aggressive” with a focus on the creation of unique indices to help these supposed funds help beat the market.  At the moment, there are over 3.7 million unique indices.  This isn’t what Jack Bogle envisioned when he launched his first index fund!
  • Energy (+0.98%), Tech (+0.96%), and Industrials (+0.67%) stocks are the top performers in the S&P 500 today
  • Materials (-0.44%), Healthcare (-0.78%), and Consumer Staples (-1.53%) 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 1.73x
  • 108 stocks in the S&P500 are at 4-week highs while 3 stocks are at 4-week lows
  • 14 stocks in the S&P 500 are overbought while 1 stocks are oversold according to the 16-day RSI Measure
  • 94 stocks in the Nasdaq Composite are at 4-week highs while 36 stocks are at 4-week lows
  • 330 stocks in the Nasdaq Composite are overbought while 110 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently flat at 19.43 from yesterday's close of 19.52

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • American Airlines (AAL) announced CY4Q2018 financials that mostly surpassed analyst expectations. American Airlines reported adjusted EPS of USD$1.04/share in CY4Q2018 while analysts expected USD$1.02/share. American Airlines generated operating revenue of USD$10.94bn in the quarter, slightly missing analysts’ consensus of USD$10.95bn. American Airlines is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • American Electric Power (AEP) reported fourth quarter EPS from continuing operations of 72 cents while consensus was for 70 cents.  American Electric Power fourth quarter revenue came at USD$3.8 billion while USD$ 3.6 billion was consensus.  American Electric Power is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Bristol-Myers Squibb (BMY) reported fourth quarter adjusted EPS of 94 cents while consensus was for 85 cents.  Bristol-Myers Squibb fourth quarter revenue came at USD$5.97 billion, USD$ 5.99 billion was consensus.  Bristol-Myers Squibb affirmed 2019 EPS guidance of USD$4.10-4.20.   Bristol-Myers Squibb is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Freeport-McMoRan Inc. (FCX) reported fourth quarter EPS of USD$0.11/share while consensus was for USD$0.18/share.  Freeport fourth quarter revenue came at USD$3.68bn while analysts expected USD$3.77bn.   Freeport is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Huntington Bancshares Inc. (HBAN) reported CY4Q2018 financials that disappointed analysts and investors. Huntington generated USD$0.29 of EPS in CY4Q2018 while analyst expectations called for USD$0.32/share. Huntington’s earnings were dragged down by a higher-than-expected provision for loan losses. Huntington is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.  
  • Jet Blue (JBLU) reported fourth quarter adjusted EPS of 50 cents while consensus was for 42 cents.  Jet Blue fourth quarter operating revenue came at USD$1.97 billion versus USD$1.96 billion consensus.  Jet Blue is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • McCormick (MKC) reported fourth quarter EPS of USD$1.67 while consensus was for USD$1.70.  McCormick fourth quarter revenue came at USD$1.5 billion versus USD$1.55 billion expeceted.  McCormick is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Microsoft Corporation’s (MSFT) Bing search engine has officially been banned in China. While other search engines like Alphabet’s (GOOGL) Google were previously banned in China, Bing was allowed to operate because it sensors search results. Microsoft 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.
  • Southwest Airlines (LUV) reported fourth quarter EPS of USD$1.17, above the highest estimate, while consensus was for USD$1.07.  Southwest Airline's fourth quarter operating revenue came at USD$5.7 billion.  Revenue per seat mile grew 1.8% in the quarter.  Southwest Airlines is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • STMicroelectronics (ENXTPA: STM) reported strong CY4Q2018 financials while providing CY1Q2019 guidance that indicates a q/q revenue decrease of about 20.7%, or a y/y decrease of about 5.7%. STMicroelectronics generated USD$418mm of net income in CY4Q2018 while analysts expected just USD$376mm. STM Microelectronics is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Textron (TXT) reported fourth quarter EPS from continuing operations of USD$1.02 while consensus was for 98 cents.  Textron fourth quarter revenue came at below expectations at USD$3.75 billion while USD$4 billion was consensus.  Textron is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Union Pacific Corporation (UNP) reported CY4Q2018 earnings that beat analysts’ consensus. Union Pacific recorded USD$2.12 EPS in CY4Q2018 while analysts expected USD$2.06/share. Union Pacific’s operating revenue of USD$5.76bn in CY4Q2018 also beat analyst expectations of SUD$5.73bn. Union Pacific is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • UroGen Pharmaceutical (URGN) shares slid after the company an offering of USD$150mm worth of shares at USD$41/share. The USD$41/share target offering price represented a 10.73% discount to Wednesday’s closing price. UroGen is not rated in our Global Top Stock Ideas.  
  • W.W. Grainger (GWW) announced CY4Q2018 adjusted EPS that beat analyst estimates while reporting CY2019 EPS guidance, the midpoint of which misses analyst estimates. Grainger observed CY4Q2018 adjusted EPS of USD$3.96/share, beating analysts’ consensus of USD$3.59/share. Grainger sees CY2019 EPS of between USD$17.10/share and USD$18.70/share while the analyst consensus was for USD$18.04/share. Grainger is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas. 
  • Xilinx Inc. (XLNX) reported FY3Q2019 financials that largely surprised analyst expectations. Xilinx generated an EPS of USD$0.92 in FY3Q2019 while analysts expected just USD$0.86/share. The earnings surprise, fueled by growth in the company's 5G business, prompted Raymond James analyst Chris Caso to comment in a note to clients, “Boy do we feel dumb for missing this stock.” Xilinx is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” 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 -1.87 basis points to 2.56%
  • US 5-Year Treasury Bonds are higher with yields down -3.05 basis points to 2.54%
  • US 10-Year Treasury Bonds are higher with yields down -2.88 basis points to 2.71%
  • The US Treasury 2s-5s Spread has narrowed 1.18 basis points to -0.02%
  • The US Treasury 2s-10s Spread has narrowed 1.01 basis points to 0.15%
  • US Treasury 5s-10s Spread has widened 0.17 basis points to 0.17%

Currencies

  • EUR€ is currently down 0.606% against the USD$ to 1.1312
  • GBP£ is currently down 0.321% against the USD$ to 1.3027
  • CHF is currently down 0.199% against the USD$ to 1.0034
  • JPY¥ is currently little changed against the USD$ at 109.71
     

Commodities

  • WTI Crude is currently down -0.63% to USD$52.09/bbl with the Brent-WTI spread up USD$1.24 to USD$8.85/bbl
  • Gold is currently little changed -0.16% to USD$1280.64/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
Xilinx Inc Information Technology 91.2 19.37%      2,783,606.00
Lam Research Corp Information Technology 140 14.63%            2,334,403
Applied Materials Inc Information Technology 33.7 9.95%            3,305,834
Western Digital Corp Information Technology 37.7 9.09%            2,447,499
Micron Technology Inc Information Technology 33.9 8.59%            9,443,869
 
Underperformers Sector Price 1D % Chg Volume
McCormick & Co Inc/MD Consumer Staples 141 -12.44%                676,128
Freeport-McMoRan Inc Materials 11.6 -8.77%            6,670,817
Citrix Systems Inc Information Technology 107 -7.42%                836,106
PG&E Corp Utilities 6.95 -4.89%                964,287
Advance Auto Parts Inc Consumer Discretionary 160 -4.08%                  66,463

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