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US stocks post solid gains on positive trade sentiment and an end to the US government shutdown

Jan 25, 2019

 

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US Markets End of Day Snapshot

  • US stocks close higher with positive trade sentiment and indications that the US government would reopen (later confirmed) driving today's risk-on sentiment
  • The S&P 500 finished up 0.85%, Nasdaq Composite up 1.29%, and Russell 2000 up 1.26%
  • 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  
  • President Trump and Congress agreed to reopen the US government for about 3 weeks with negotiations continuing on funding for a border wall
  • US durable goods data was not released today due to the shutdown
  • January German business sentiment came at 99.1, well below the 100.7 market forecast, further evidence of a softening economy in Germany
  • Materials (+1.92%), Tech (+1.45%), and Industrials (+1.29%) stocks were the top performers in the S&P 500 today
  • Healthcare (+0.14%), Consumer Staples (-0.24%), and Utilities (-1.33%) stocks were the worst performers in the S&P 500 today
  • Investor sentiment for US stocks finished positive with the advance/decline ratio for the S&P 500 closing at 4.49x
  • 113 stocks in the S&P 500 hit 4-week highs while 11 stocks reached 4-week lows
  • 15 stocks in the S&P 500 closed overbought while 4 stocks closed oversold according to the 16-day RSI Measure
  • 117 stocks in the Nasdaq Composite hit 4-week highs while 36 stocks reached 4-week lows
  • 392 stocks in the Nasdaq Composite closed overbought while 114 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed down 1.47 points today to 17.42 after closing at 18.89 yesterday

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.
  • Kering (ENXTPA:KER) owes the Italian government 1.4 billion euros in back taxes.  The Italian government probed its Swiss subsidiary between 2011 and 2017.  The fine was expected and came within the range of analysts’ estimates.  Kering is rated “Neutral” in our European Large-Cap 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 
  • Nike (NKE) won a 10-year contact to supply Major League Baseball with apparel, a contract that was originally awarded to Under Armour (UAA).  The contract begins in 2020 and Under Armour backed out after originally wining in December 2016.  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.  Under Armour is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary 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.
  • Vale (VALE) has a tailing dam break at one of its mines in the state of Minas Gerais in Brazil.  200 people are missing after a wall of mud leveled buildings and made roads in the area impassable.  There are not casualties reported yet and the remote, rural area where the mine is located is adding to the difficulties.  Among the missing are employees who were in a Vale building that was leveled by mud. Vale is rated “Top Buy” in our Brazil All-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 4.21 basis points to 2.60%
  • US 5-Year Treasury Bonds are lower with yields up 4.56 basis points to 2.59%
  • US 10-Year Treasury Bonds are lower with yields up 4.1 basis points to 2.75%
  • The US Treasury 2s-5s Spread has widened 0.35 basis points to -0.01%
  • The US Treasury 2s-10s Spread has narrowed 0.1 basis points to 0.15%
  • US Treasury 5s-10s Spread has narrowed 0.46 basis points to 0.16%

Currencies

  • EUR€ is up 0.964% against the USD$ in after hours to 1.1413
  • GBP£ is up 1.026% against the USD$ in after hours to 1.32
  • CHF is up 0.369% against the USD$ in after hours to 1.0073
  • JPY¥ is little changed 0.146% against the USD$ in after hours to 109.48

Commodities

  • WTI Crude is up 0.96% to USD$53.49/bbl with the Brent-WTI spread down USD$-0.48 to USD$7.72/bbl
  • Gold is up 1.69% to USD$1302.89/oz
     

 

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

S&P 500 Sector ETFs - End of Day

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

Russell 1000 Factor ETFs - End of Day

*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
Western Digital Corp Information Technology 37.7 7.52%      8,820,304.00
Seagate Technology PLC Information Technology 39.6 6.57%            3,273,979
Micron Technology Inc Information Technology 33.9 6.48%          13,089,134
SVB Financial Group Financials 219 6.01%                407,087
Advanced Micro Devices Inc Information Technology 20.4 5.18%          21,009,542
 
Underformers Sector Price 1D % Chg Volume
ResMed Inc Health Care 116 -19.39%            1,087,381
PG&E Corp Utilities 6.95 -15.63%            7,196,515
AbbVie Inc Health Care 85.5 -6.22%            3,461,710
Intel Corp Information Technology 48.6 -5.47%          21,443,114
Intuitive Surgical Inc Health Care 515 -3.93%                571,121