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US stocks mixed midday, tech share lower while industrials higher with positive 3M (MMM) earnings

Jan 29, 2019

 

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Market data as of 12 noon EST

US Market Snapshot

  • US stocks are mixed mid-session, with tech shares the biggest losers today while industrials stocks are rising in the wake of positive earnings from 3M (MMM)
  • The S&P 500 is currently down 0.14%, Nasdaq Composite is down 0.77%, and Russell 2000 is up 0.04%
  • US prosecutors have formally filed criminal charges against Huawei Technologies, raising fears about the potential for a breakdown in talks between US and China trade officials 
  • Vice Premier Liu He of China will hold talks with US Treasury Secretary Steve Mnuchin and US Trade Rep Robert Lighthizer on Wednesday and Thursday in Washington, DC
  • Bloomberg suggests the rotation into defensive stocks which started in late CY2018 points to a market bottom and an end to the current correction in stocks valuations 
  • S&P 500 stocks buying back their stocks is back in vogue with the S&P 500 buyback index up 16% since the S&P 500 hit its 12-month low on December 24th 
  • Large-cap oil stocks will be under the microscope this earnings season following the margin crush in 4Q from falling oil prices in the quarter with a greater focus on capital allocation and dividends
  • The UK Parliament is set to vote on the revised BREXIT proposal from UK Prime Minister Theresa May this evening 
  • While Bitcoin is viewed as an uncorrelated asset, historically, it has failed to properly serve as a hedge against a falling S&P 500 -- since July 2010, Bitcoin has only recorded positive returns in 3 of the 10 worst months for the S&P 500 (in terms of returns).
  • Industrials (+1.31%), Materials (+0.89%), and Real Estate (+0.53%) stocks are the top performers in the S&P 500 today
  • Consumer Discretionary (-0.88%), Telecom (-0.92%), and Tech (-1.01%) stocks are the worst performers in the S&P 500 today
  • Investor sentiment for US stocks is negative with the advance/decline ratio for the S&P 500 currently at 0.96x
  • 74 stocks in the S&P500 are at 4-week highs while 11 stocks are at 4-week lows
  • 27 stocks in the S&P 500 are overbought while 3 stocks are oversold according to the 16-day RSI Measure
  • 149 stocks in the Nasdaq Composite are at 4-week highs while 27 stocks are at 4-week lows
  • 372 stocks in the Nasdaq Composite are overbought while 125 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently flat at 18.93 from yesterday's close of 18.87

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • 3M (MMM) reported fourth quarter adjusted EPS of USD$2.31 while consensus was for USD$2.28.  3M fourth quarter revenue came at USD$7.9 billion, missing consensus of USD$7.86 billion.  3M gave guidance for 2019 EPS of USD$10.45-10.90, down from USD$10.60-11.05.  3M is rated “Attractive” in our US Large-Cap Global Top Stock Ideas “Neutral” in our US Industrials Global Top Stock Ideas.
  • Biogen (BIIB) reported fourth quarter EPS of USD$6.33 while consensus was for USD$6.69.  Biogen fourth quarter revenue came at USD$3.53 billion, missing consensus of USD$3.39 billion.  Biogen gave guidance for 2019 EPS of USD$28-29.  Biogen is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Corning Inc. (GLW) announced core EPS of USD$0.59/share while consensus was for USD$0.57/share. Corning generated revenue of USD$3.08bn, beating analysts' consensus of USD$3.01bn. Corning is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Danaher Corporation (DHR) announced CY4Q2018 financials that slightly edge past analyst estimates while reporting CY1Q2019 guidance better than analyst expectations. Danaher generated an adjusted EPS of USD$1.28/share in CY4Q2018 while analysts expected USD$1.27. Danaher said that it sees CY4Q2019 adjusted EPS between USD$1.00/share and USD$1.03/share while analysts’ consensus was for USD$1.03. Danaher is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  
  • GameStop Corporation (GME) shares fell the most in 16 years after the world’s largest independent video game retailer announced that it was ending an effort to sell itself. GameStop is the victim of an industry that is quickly transitioning to digital streaming. GameStop is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Harley Davidson (HOG) announced CY4Q2018 adjusted EPS that substantially missed analyst expectations. Harley Davidson reported an adjusted EPS of USD$0.17, missing the lowest analyst estimates that ranged between USD$0.19 and USD$0.42. Harley Davidson is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Harris Corp. (HRS) reported fourth quarter EPS of USD$1.88 while consensus was for USD$1.90.  Harris Corp. fourth quarter revenue came at USD$1.666 billion, in line with consensus of USD$1.64 billion.  Harris Corp. is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials.
  • L3 Technologies (LLL) reported fourth quarter EPS of USD$3.10 beating consensus of USD$2.69.  L3 Technologies fourth quarter revenue came at USD$2.77 billion, above consensus of USD$2.66 billion.  L3 Technologies is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials.
  • Lockheed Martin Corporation (LMT) announced CY4Q2018 EPS of USD$4.39, slightly missing analyst expectations of USD$4.40. Lockheed Martin said that it expects CY2019 EPS between USD$19.15 and USD$19.45, the midpoint of which misses analysts’ expectations of USD$19.35. Lockheed Martin is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.  
  • Nucor (NUE) reported fourth quarter EPS of USD$2.07 beating consensus of USD$1.94.  Nucor fourth quarter revenue came at USD$6.3 billion, in line with consensus of USD$6.3 billion.  Nucor is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Pfizer Inc. (PFE) reported fourth quarter EPS of USD$0.64 while consensus was for USD$0.63.  Pfizer fourth quarter revenue came at USD$14.0bn, missing consensus of USD$13.9 billion.  Pfizer gave guidance for 2019 EPS of between USD$2.82/share and USD$2.92/share while analysts’ consensus called for USD$3.04/share.  Pfizer is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology.
  • PulteGroup (PHM) reported fourth quarter EPS of USD$1.11 while consensus was for USD$1.10.  PulteGroup fourth quarter revenue came at USD$2.99 billion, missing consensus of USD$2.91 billion.    PulteGroup is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Rockwell Automation (ROK) reported FY1Q2019 EPS of USD$2.21  while consensus was for USD$2.01  Rockwell Automation fourth quarter revenue came at USD$1.64bn, in-line with consensus of USD$1.64bn.  Rockwell Automation sees FY2019 EPS of between USD$8.85/share and USD$9.25/share, the midpoint of which beats consensus of USD$8.96/share.  Rockwell Automation is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Verizon (VZ) reported fourth quarter EPS of USD$1.12 while consensus was for USD$1.08.  Verizon fourth quarter revenue came at USD$34.28 billion, missing consensus of USD$34.44 billion.  Verizon gave guidance for 2019 EPS of ~USD$4.73.  Verizon is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Xerox (XRX) reported fourth quarter EPS of USD$1.14  while consensus was for USD$1.04.  Xerox fourth quarter revenue came at USD$2.53 billion, matching consensus of USD$2.56 billion.  Xerox gave guidance for 2019 EPS of USD$3.70-3.80.  Xerox is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology.

 

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US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -1.51 basis points to 2.57%
  • US 5-Year Treasury Bonds are higher with yields down -2.36 basis points to 2.55%
  • US 10-Year Treasury Bonds are higher with yields down -1.99 basis points to 2.72%
  • The US Treasury 2s-5s Spread has narrowed 0.85 basis points to -0.02%
  • The US Treasury 2s-10s Spread has narrowed 0.48 basis points to 0.15%
  • US Treasury 5s-10s Spread has widened 0.37 basis points to 0.17%

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1426
  • GBP£ is currently down 0.16% against the USD$ to 1.3142
  • CHF is currently down 0.308% against the USD$ to 1.0049
  • JPY¥ is currently little changed against the USD$ at 109.37

Commodities

  • WTI Crude is currently up 2.79% to USD$53.44/bbl with the Brent-WTI spread little changed USD$-0.03 to USD$7.67/bbl
  • Gold is currently up 0.45% to USD$1309.28/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 Utilities 6.95 15.86%      3,649,354.00
Corning Inc Information Technology 30.1 9.98%            1,595,830
Xerox Corp Information Technology 22.8 9.47%                519,537
Dover Corp Industrials 78.1 7.46%                146,649
Harris Corp Industrials 139 6.99%                162,749
 
Underperformers Sector Price 1D % Chg Volume
Allergan PLC Health Care 153 -6.90%                461,143
Harley-Davidson Inc Consumer Discretionary 37.1 -6.66%                583,951
Advanced Micro Devices Inc Information Technology 20.4 -3.67%            9,764,823
Twitter Inc Communication Services 33 -3.53%            1,322,854
Arista Networks Inc Information Technology 223 -3.40%                  95,315

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