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US stocks rising midday on strong earnings reports this morning, ahead of Fed decision

Jan 30, 2019

 

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Market data as of 12:15pm EST

US Market Snapshot

  • US stocks are rising broadly today with a batch of robust earnings reports this morning fueling investors' risk-on sentiment 
  • The S&P 500 is currently up 0.95%, Nasdaq Composite is up 1.4%, and Russell 2000 is up 0.4%
  • US and Chinese negotiators have begun 2 days of trade talks today in Washington, DC
  • The US Federal Reserve (US Fed) is set to release a decision on interest rates today.  The announcement will be made at 2pm EST with Fed Funds futures currently pricing in no probability of a rate hike. 
  • ADP private non-farm jobs report for January came at 213,000, well above 188,000 consensus; down from 271,000 in December
  • Pending home sales in December fell 2.2% m/m, coming worse than the 0.5% growth expected
  • Leuthold’s Jim Paulsen argues the doubts about US economic policy are a positive contrarian indicator for the S&P 500: historically, following readings in the top 5th, the S&P 500 has realized a forward 12-month gain of 15% 
  • SPDR SPT ETF Trust (SPY) saw positive inflows of USD$2.24 billion yesterday, the largest single-day increase since December 24th  
  • Tech (+2.09%), Consumer Discretionary (+1.55%), and Industrials (+1.2%) stocks are the top performers in the S&P 500 today
  • Utilities (+0.44%), Telecom (+0.33%), and Financials (+0.27%) 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 3.2x
  • 129 stocks in the S&P500 are at 4-week highs while 9 stocks are at 4-week lows
  • 35 stocks in the S&P 500 are overbought while 3 stocks are oversold according to the 16-day RSI Measure
  • 139 stocks in the Nasdaq Composite are at 4-week highs while 31 stocks are at 4-week lows
  • 352 stocks in the Nasdaq Composite are overbought while 144 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 18.64 from yesterday's close of 19.13

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Advanced Micro Devices (AMD) reported fiscal first quarter 2019 adjusted EPS of 8 cents matching consensus of 8 cents.  AMD fiscal first quarter revenue came at USD$1.42 billion, in line with consensus of USD$1.44 billion.  AMD gave first quarter 2019 revenue guidance of USD$1.2-1.3 billion, well below consensus of USD$1.47 billion.  AMD is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Alibaba (BABA) announced strong FY3Q2019 financials with growth in cloud computing and entertainment offsetting a slowing online retail business. Bernstein observed an adjusted EPS of 12.19 yuan in FY3Q2019 while analysts expected 11.21 yuan/share. Alibaba generated revenue growth of 41% y/y to USD$117.3bn yuan (USD$17.5bn). Bernstein analyst David Dai wrote in his report that, “Alibaba is the dominant and most profitable leader in China e-commerce.” Alibaba is rated “Unattractive” in our China All-Cap Global Top Stock Ideas.
  • Ally Financial (ALLY) announced fourth quarter 2018 adjusted EPS of USD$0.92, beating the highest analyst estimates that ranged between USD$0.79 and USD$0.88.  Ally Financials fourth quarter 2018 revenue came at USD$1.44bn, falling short of consensus of USD$1.53bn. Ally Financial is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Anthem Inc. (ANTM) reported fourth quarter 2018 adjusted EPS of USD$2.15 in line with consensus of USD$2.20.  Anthem fourth quarter 2018 revenue came at USD$23.73 billion, in line with consensus of USD$23.34 billion.   Anthem gave 2019 EPS guidance of USD$19. Anthem is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  
    Apple (AAPL) reported fiscal first quarter 2019 adjusted EPS of USD$4.18 in line with consensus of USD$4.17.  Apple fiscal first quarter 2019 revenue came at USD$84.3 billion, in line with consensus of USD$83.97 billion.  Apple’s gross margin of 38% matched consensus.  Apple reported its first holiday sales decline since 2001 with iPhone sales falling 15%.  CEO Tim Cook outlined life beyond iPhones with growing sales in services and other Apple products.  Apple gave second quarter 2019 revenue guidance of USD$55-59 billion.  Apple is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • AT&T Inc. (T) reported fourth quarter 2018 adjusted EPS of USD$0.87 in line with consensus of USD$0.86.  AT&T fourth quarter 2018 revenue came at USD$47.99 billion, in line with consensus of USD$48.49 billion.   AT&T added only 134,000 wireless subscribers, below 208,000 consensus. AT&T is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • Automatic Data Processing (ADP) reported second quarter 2019 adjusted EPS of USD$1.34  beating the highest analyst estimates that ranged between USD$1.16 and USD$1.23.  ADP second quarter 2019 revenue came at USD$3.51bn, beating consensus of USD$3.44bn.   ADP sees FY2019 EPS growth of 17%, falling short of consensus of 19%. ADP is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Boeing (BA) announced CY4Q2018 earnings and CY2019 guidance that sent the stock price soaring. Boeing reported a CY4Q2018 core EPS of USD$5.48, blowing out consensus of USD$4.59. Boeing sees CY2019 between USD$19.90 and USD$20.10, surpassing analyst expectations of USD$18.44. Boeing is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Check Point Software Technologies (CHKP) announced that it sees revenue for FY2019 between USD$1.94bn and USD$2.04bn while consensus calls for USD$1.99bn. Additionally, Check Point expects adjusted EPS between USD$5.85 and USD$6.25 in FY2019 while analysts expect USD$6.09. Check Point is not rated in our Global Top Stock Ideas.  
  • E-Bay (EBAY) reported fourth quarter EPS of 71 cents above consensus of 68 cents.  E-Bay fourth quarter revenue came at USD$2.88 billion, in line consensus of USD$2.86 billion.  E-Bay gave guidance for first quarter 2019 EPS of 62-64 cents, in line with consensus that is presently 61 cents.  E-Bay is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • General Dynamics Corp. (GD) reported fourth quarter 2018 EPS from continuing operations of USD$3.07, beating the consensus of USD$2.98.  General Dynamics fourth quarter 2018 revenue came at USD$10.38bn, edging past the consensus of USD$10.36bn. General Dynamics is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Hess Corp. (HES) reported fourth quarter 2018 adjusted loss per share of USD$0.31, narrower than consensus for a USD$0.37 loss per share.  Hess observed a realized crude price/barrel of USD$58.11 in CY4Q2018 compared to USD$55.44 a year prior. Hess is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • Ingersoll-Rand (IR) reported fourth quarter 2018 adjusted EPS of USD$1.31  in line with consensus of USD$1.29.  Ingersoll-Rand fiscal first quarter 2019 revenue came at USD$3.895 billion, in line with consensus of USD$3.85 billion.  Ingersoll-Rand is not rated in our US Large-Cap Global Top Stock Idea
  • Invesco Ltd (IVZ) reported fourth quarter 2018 adjusted EPS of 44 cents well below consensus of 53 cents.  Invesco fourth quarter 2019 revenue came at USD$1.26 billion, in line with consensus of USD$1.3 billion.   Invesco’s assets under management (AUM) came at USD$888.2 billion, below USD$902 billion consensus. Invesco is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas. 
  • Juniper Networks (JNPR) reported fourth quarter adjusted EPS of 59 cents beating by a touch consensus of 57 cents.  Juniper Networks fourth quarter revenue came at USD$1.18 billion, in line with consensus of USD$1.22 billion.  Juniper Networks gave first quarter 2019 EPS guidance of 17-23 cents, well below consensus of 37 cents.  Juniper is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • McDonald’s Corp. (MCD) announced CY4Q2018 financial results that largely disappointed investors. McDonald’s US comparable sales rose 2.3% in CY4Q2018, missing consensus for 2.4% growth.  McDonald’s generated adjusted EPS of USD$1.97 in CY4Q2018, edging past analyst expectations for USD$1.89. McDonald's is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our Consumer Discretionary Global Top Stock Ideas.
  • Nasdaq (NDAQ) reported fourth quarter 2018 adjusted EPS of USD$1.26 in line with consensus of USD$1.27.  Nasdaq first quarter 2019 revenue came at USD$645 million, in line with consensus of USD$642.3 million.   Nasdaq offered to buy the Oslo Bors for NK152 per share, countering Euronext’s offer.  Nasdaq is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • PE&G (PCG) has formally declared bankruptcy as expected. PE&G will be reorganized and regulators have not indicated yet what time or reorganization they prefer.  Analysts expect major changes, though there is no consensus, on what may end up as the final form of PE&G.  PE&G is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Royal Caribbean Cruises (RCL) reported fourth quarter 2018 adjusted EPS of USD$1.53, slightly beating consensus of USD$1.51.  Royal Caribbean fourth quarter 2018 revenue came at USD$2.33bn, beating consensus for USD$2.31bn.   Royal Caribbean gave first quarter 2019 adjusted EPS guidance of USD$1.10, higher than analyst expectations for USD$ 1.07. Royal Caribbean is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Silicon Labs (SLAB) announced CY4Q2018 financials and CY1Q2019 guidance that missed the lowest analyst estimates. Silicon Labs generated an adjusted EPS of USD$0.91 while analyst estimates ranged between USD$0.93 and USD$0.95. Silicon Labs sees adjusted EPS of between USD$0.42 and USD$0.52 in CY1Q2018 while analyst estimates ranged between USD$0.72 and USD$0.90. Silicon Labs is rated “Top Buy” in our US SMID-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Stryker Corporation (SYK) reported fourth quarter earnings announced FY2019 guidance that tops analyst expectations. Stryker increased its FY2019 revenue estimate by USD$160mm to USD$14.79bn. JPMorgan analyst Robbie Marcus called the company’s 4Q results a, “picture perfect finish to 2018.” Stryker Corporation is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  
  • Thermo Fisher Scientific (TMO) reported adjusted EPS for CY4Q2018 that beat the highest analyst estimate. Thermo Fisher generated an adjusted EPS of USD$3.25 in CY4Q2018, beating the highest analyst estimates that ranged between USD$3.16 and USD$3.24. Thermo Fisher also generated revenue of USD$6.51bn while analyst estimates ranged between USD$6.19bn and USD$6.28bn. Thermo Fisher is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.  
  • T. Rowe Price Group (TROW) reported fourth quarter 2018 adjusted EPS of USD$1.54, falling short of consensus of USD$1.66.  T. Rowe fourth quarter 2018 revenue came at USD$1.31bn, falling just short of consensus of USD$1.33bn.   T. Rowe’s assets under management came in at USD$962bn, down 2.9% from the previous quarter. T. Rowe is rated “ Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Vale (VALE) said it will close some of its mining productions involved the recent dam disaster.  The death toll has risen to 84 people and is expected to rise further.  The price of iron ore has surged in the wake of the disaster and Vale is a significant supplier of iron ore to the world.  Vale is rated “Top Short” in our Brazil All-Cap Global Top Stock Ideas.

 

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US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 1.01 basis points to 2.58%
  • US 5-Year Treasury Bonds are lower with yields up 1.84 basis points to 2.56%
  • US 10-Year Treasury Bonds are lower with yields up 2.14 basis points to 2.73%
  • The US Treasury 2s-5s Spread has widened 0.83 basis points to -0.02%
  • The US Treasury 2s-10s Spread has widened 1.13 basis points to 0.15%
  • US Treasury 5s-10s Spread has widened 0.3 basis points to 0.17%

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1417
  • GBP£ is currently little changed against the USD$ at 1.306
  • CHF is currently down 0.448% against the USD$ to 1.0009
  • JPY¥ is currently little changed against the USD$ at 109.54

Commodities

  • WTI Crude is currently up 2.91% to USD$54.86/bbl with the Brent-WTI spread down USD$-0.87 to USD$7.22/bbl
  • Gold is currently little changed -0.07% to USD$1310.91/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
Advanced Micro Devices Inc Information Technology 20.4 15.17%    24,555,851.00
Stryker Corp Health Care 162 11.52%                413,931
Anthem Inc Health Care 260 10.07%                271,209
Freeport-McMoRan Inc Materials 11.6 7.03%            4,153,880
Boeing Co/The Industrials 352 6.87%                971,506
 
Underperformers Sector Price 1D % Chg Volume
Juniper Networks Inc Information Technology 28.1 -8.05%                997,886
Franklin Resources Inc Financials 30.6 -6.16%                359,445
T Rowe Price Group Inc Financials 92.7 -5.47%                730,698
Discovery Inc Communication Services 27.1 -4.93%            1,134,786
Amgen Inc Health Care 199 -4.60%            1,128,494