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US stocks rising mid-session on tech results, rising trade optimism ahead of US-China talks

Jan 25, 2019

 

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Market data as of 12 noon EST

US Market Snapshot

  • US stocks are rising midday with the global tech rally and trade optimism driving the risk-on sentiment today
  • The S&P 500 is currently up 1%, Nasdaq Composite is up 1.32%, and Russell 2000 is up 1.2%
  • The US will receive a delegation from China on Monday for further trade talks that will include deputy ministers and be led by Vice Premier Liu He 
  • JP Morgan published a report saying the global average cash cost to mine 1 Bitcoin is now above its value with low-cost miners in China still able to mine profitably  
  • The US government shutdown is in its 35th day, with the press reporting there are talks "at the highest levels" underway to end it
  • US durable goods data was not released today due to the shutdown
  • Materials (+2.25%), Energy (+1.52%), and Industrials (+1.43%) stocks are the top performers in the S&P 500 today
  • Healthcare (+0.28%), Consumer Staples (+0.04%), and Utilities (-0.72%) 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 6.81x
  • 113 stocks in the S&P500 are at 4-week highs while 11 stocks are at 4-week lows
  • 15 stocks in the S&P 500 are overbought while 4 stocks are oversold according to the 16-day RSI Measure
  • 117 stocks in the Nasdaq Composite are at 4-week highs while 36 stocks are at 4-week lows
  • 392 stocks in the Nasdaq Composite are overbought while 114 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 17.61 from yesterday's close of 18.89
     

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • AbbVie (ABBV) announced CY4Q2018 adjusted EPS that missed analyst estimates while providing full-year guidance that also missed analyst estimates. AbbVie reported an adjusted EPS of USD$1.90/share in CY4Q2018 while analysts’ consensus called for USD$1.94/share. AbbVie sees CY2019 adjusted EPS between USD$8.65/share and USD$8.75/share, the midpoint of which misses analysts’ consensus of USD$8.73/share. AbbVie is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Air Products & Chemicals (APD) reported fiscal first quarter EPS of USD$1.50 while consensus was for USD$1.86.  Air Products & Chemicals fourth quarter revenue came at USD$2.24 billion while consensus was for USD$2.26 billion.  Air Products & Chemicals is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Amazon.com Inc. (AMZN) is requesting that consumer-goods companies begin to create brands exclusive to Amazon. GNC (GNC), an sweeteners and nutrition brand, and Tuft & Needle, a mattress company, are among the first to launch their exclusive Amazon products. The move is the latest example of Amazon trying to offer a wide selection of products at the lowest prices. Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Colgate-Palmolive (C) reported fiscal second quarter EPS of 74 cents while consensus was for 73 cents.  Colgate-Palmolive fiscal second quarter revenue came at USD$3.81 billion, missing consensus of USD$3.77 billion.  Colgate-Palmolive gave guidance for 2019 revenue 2-4% growth in sales.  Colgate-Palmolive is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas
  • Discover Financial Services (DFS) reported fourth quarter EPS of USD$2.03 while consensus was for USD$2.05.  Discover Financial Services fourth quarter revenue came in line at USD$2.8 billion while consensus was for USD$2.8 billion.  Discover Financial Services is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • DR Horton (DHI) reported fourth quarter EPS of 76 cents while consensus was for 78 cents.  DR Horton fourth quarter revenue came at USD$3.51  billion while consensus was for USD$3.49 billion.  DR Horton is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • E-Trade Financial Services (ETFC) reported fourth quarter EPS of USD$1.07 while consensus was for USD$1.03.  E-Trade Financial Services fourth quarter revenue came at USD$735 million while consensus was for USD$744 million.  E-Trade Financial Services is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Hill-Rom Holdings, Inc. (HRC) reported adjusted FY1Q2019 EPS of USD$1.02/share, beating the highest analyst estimates that ranged between USD$0.98/share and USD$1.00/share. Hill-Rom's net revenue in FY1Q2019 of USD$683.5mm also beat analysts’ consensus of USD$676.4mm. Hill-Rom is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  
  • Intel (INTC) reported fiscal second quarter EPS of USD$1.28 while consensus was for USD$1.22.  Intel fiscal second quarter revenue came at USD$18.66 billion, missing consensus of USD$19.01 billion.  Intel gave guidance for 1Q19 revenue of ~USD$16 billion, well below consensus of USD$17.34 billion and EPS guidance of 87 cents, well below USD$1.22 consensus.  Intel is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Lear (LEA) announced CY4Q2018 financials that met analyst estimates whil affirming 2019 guidance given 10 days earlier. Lear observed net sales of USD$4.94bn in CY4Q2018 while analysts expected USD$4.98bn. Lear’s adjusted EPS of USD$4.05/share in CY4Q2018 surpassed analyst expectations of USD$3.92/share. Lear is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Mastercard (MA) will acquire Earthport (AIM: EPO), the UK payments company, for 33 pence per share, besting an offer by Visa (V) by 10%.  Mastercard is valuing Earthport at 233 million pounds.  Mastercard is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  Visa is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  Earthport is not rated in our Global Top Stock ideas.
  • Mediaset (BIT: MS) and ProSiebenSat.1 (XTRA: PSM) shares surged after Italy’s MF Milano Finanza newspaper reported that the two companies could reach a potential deal as early as next month. The report cites people familiar with the matter while saying that Mediaset could review an offer at their next meeting, planned for early February. Mediaset is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas. ProSiebenSat.1 is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • NextEra Energy (NEE) reported CY4Q2018 operating revenue of USD$155mm while analysts expected USD$270.7mm. NextEra also provided full-year adjusted EBITA guidance between USD$1.2bn and USD$1.38bn, surpassing analysts’ consensus of USD$1.12bn.  NextEra Energy is rated “Neutral” in our US Large-Cap Global Top Stock Ideas 
  • Nokia OYJ (HLSE: NOKIA) will receive CAD$40mm in funding from the government of Canada for research. The research will likely pertain to 5G research as Canada weighs a ban on Nokia rival Huawei. Nokia is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Norfolk Southern (NSC) reported fourth quarter EPS of USD$2.57 while consensus was for USD$2.28.  Norfolk Southern fourth quarter revenue came at USD$2.896 billion while consensus was for USD$2.84 billion.  Norfolk is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Starbucks (SBUX) reported fourth quarter EPS of 69 cents while consensus was for 65 cents.  Starbucks fourth quarter revenue came at USD$6.63 billion while consensus was for USD$6.48 billion.  Starbucks is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Telia Company AB (OM: TELIA) announced CY4Q2018 financials the largely missed analyst expectations. Telia reported adjusted EBITDA of 6.74bn Swedish krona in CY4Q2018, missing the lowest analyst estimates that ranged between 6.94bn Swedish krona and 7.36bn Swedish krona. Telia’s CY4Q2018 net sales of 22.21bn Swedish krona also missed analyst expectations of 22.42bn Swedish krona. Telia is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.
  • Vodafone Group Plc (LSE: VOD) officially suspended its equipment purchases from Huawei Technologies Co Ltd. Vodafone CEO Nick Read said on a call with reporters Friday, “We have decided to pause further Huawei in or core whilst we engage with the various agencies and governments and Huawei.” Vodafone is rated “Neutral” in our United Kingdom All-Cap 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 lower with yields up 2.12 basis points to 2.58%
  • US 5-Year Treasury Bonds are lower with yields up 2.7 basis points to 2.57%
  • US 10-Year Treasury Bonds are lower with yields up 2.3 basis points to 2.73%
  • The US Treasury 2s-5s Spread has widened 0.58 basis points to -0.01%
  • The US Treasury 2s-10s Spread has widened 0.18 basis points to 0.15%
  • US Treasury 5s-10s Spread has narrowed 0.4 basis points to 0.16%

Currencies

  • EUR€ is currently up 0.902% against the USD$ to 1.1406
  • GBP£ is currently up 0.834% against the USD$ to 1.3175
  • CHF is currently up 0.349% against the USD$ to 1.0071
  • JPY¥ is currently little changed against the USD$ at 109.6
     

Commodities

  • WTI Crude is currently little changed -0.04% to USD$52.96/bbl with the Brent-WTI spread up USD$0.47 to USD$8.22/bbl
  • Gold is currently up 1.39% to USD$1299.07/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
Micron Technology Inc Information Technology 33.9 6.07%      6,311,360.00
Coty Inc Consumer Staples 7.31 5.79%                606,704
Western Digital Corp Information Technology 37.7 5.61%            5,037,328
Seagate Technology PLC Information Technology 39.6 5.42%            2,074,823
Freeport-McMoRan Inc Materials 11.6 5.33%            2,101,283
 
Underperformers Sector Price 1D % Chg Volume
ResMed Inc Health Care 116 -17.39%                466,164
PG&E Corp Utilities 6.95 -11.83%            3,304,989
Intel Corp Information Technology 48.6 -6.35%            9,856,331
AbbVie Inc Health Care 85.5 -6.26%            1,407,874
E*TRADE Financial Corp Financials 47.8 -3.82%                885,763

 

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