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US stocks rallying midday on Fed, strong earnings; Facebook (FB), GE (GE) both surging over 10%

Jan 31, 2019

 

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Market data as of 12:15pm EST

US Market Snapshot

  • US stocks are rallying midday with Fed's dovish comments and more strong earnings propelling markets. US stocks are on track for the best month in 3 years
  • Both Facebook (FB) and General Electric (GE) are rallying over 10% in today's trading after posting results that handily beat expectations (see Stocks in the News below for details)
  • If the current rally in the S&P 500 holds, the January 2018 move will be the best January move since 2014 with dovish comments by the US Federal Reserve boosting a better than expected earnings season (to date
  • The S&P 500 is currently up 0.89%, Nasdaq Composite is up 1.5%, and Russell 2000 is up 0.88%
  • US President Donald Trump is meeting with China’s top trade negotiator, Vice Premier Liu He, today in Washington 
  • President Trump said today that negotiations are going well but there will be no final deal until he meets again with Chinese President Xi Jinping "in the near future"
  • Yesterday’s +6.83% move in Apple (AAPL) following the release of its fiscal 1Q2019 results will probably be the biggest post-earnings move in Apple if past behavior is any guide: the magnitude of post-earnings moves from Apple (AAPL) are typically the largest post release of Fiscal 1Q results
  • Excessive investor pessimism may create an environment where moderately positive news may set a low bar for “good news rallies” according to BTIG
  • Telecom (+3.91%), Consumer Staples (+1.54%), and Consumer Discretionary (+1.35%) stocks are the top performers in the S&P 500 today
  • Tech (+0.21%), Financials (-0.72%), and Materials (-1.21%) 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 2.29x
  • 210 stocks in the S&P500 are at 4-week highs while 9 stocks are at 4-week lows
  • 54 stocks in the S&P 500 are overbought while 2 stocks are oversold according to the 16-day RSI Measure
  • 160 stocks in the Nasdaq Composite are at 4-week highs while 25 stocks are at 4-week lows
  • 461 stocks in the Nasdaq Composite are overbought while 126 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 16.90 from yesterday's close of 17.66

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • ABIOMED Inc. (ABMD) reported fiscal third quarter 2019 adjusted EPS of USD$0.97, edging past consensus of USD$0.95.  ABIOMED observed a fiscal third quarter 2019 gross margin of 83%, falling short of consensus of 83.7%.  ABIOMED sees its FY2019 operating margin between 29.0% and 29.5%. ABIOMED is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Aptiv PLC (APTV) reported fourth quarter 2018 adjusted EPS from continuing operations of USD$1.34, beating consensus of USD$1.20.  Aptiv fourth quarter 2018 revenue came at USD$3.64bn, also beating consensus of USD$3.53bn.  Aptiv sees fiscal first quarter 2019 EPS between USD$0.97 and USD$1.02, largely missing consensus for USD$1.23/share. Aptiv is not rated in our Global Top Stock Ideas.
  • BakerHughes (BHGE) reported fourth quarter 2018 adjusted EPS of USD$0.26, in line with consensus of USD$0.26. BakerHughes fourth quarter 2018 revenue came at USD$6.26 billion, in line with consensus of USD$6.07 billion.  BakerHughes is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Ball Corp. (BLL) reported fourth quarter 2018 adjusted EPS of USD$0.41, below consensus of USD$0.56. Ball Corp. fourth quarter 2018 revenue came at USD$2.8 billion, in line with consensus of USD$ 2.68 billion. Ball Corp. sees 2019 ebitda of USD$2 billion. Ball Corp. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Baxter International (BAX) reported fourth quarter 2018 adjusted EPS of USD$0.78, beating consensus of USD$0.73.  Baxter International fourth quarter 2018 revenue came at USD$2.84bn, in line with consensus of USD$2.81bn.  Baxter International sees fiscal first quarter 2019 EPS between USD$0.66 and USD$0.68, falling short of consensus for USD$0.73. Baxter International is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Celgene Corp. (CELG) reported fourth quarter 2018 adjusted EPS of USD$2.39, surpassing consensus of USD$2.32.  Celgene Corp. fourth quarter 2018 revenue came at USD$4.04bn, in line with consensus of USD$3.99bn.  Celgene Corp. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Charter Communications Inc. (CHTR) shares rose by double-digits after the company reported a gain in its broadband business, a sign that acquisitions of Time Warner Cable and Bright House Networks are paying off.  Charter added 289,000 new internet customers in CY4Q2019, up 9.88% from 263,000 new internet customers a year prior. Charter is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • DowDuPont Inc. (DWDP) reported fourth quarter 2018 adjusted EPS of USD$0.88, in line with consensus of USD$0.87.  DowDuPont fourth quarter 2018 revenue came at USD$bn20.10, slightly missing consensus of USD$20.93bn.  DowDuPont sees FY2019 organic sales growth between 2% and 3%. DowDuPont is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Eaton Corp. (ETN) reported fourth quarter 2018 adjusted EPS of USD$1.46, edging past consensus of USD$1.43.  Eaton Corp. fourth quarter 2018 revenue came at USD$5.46bn, beating consensus of USD$5.42bn.  Eaton Corp. sees fiscal first quarter 2019 EPS between USD$1.18 and USD$1.28, the midpoint of which is in line with consensus of USD$1.24. Eaton Corp. is not rated in our US Large-Cap Global Top Stock Ideas.
  • Enterprise Products (EPD) reported fourth quarter 2018 adjusted earnings of USD$0.59 per unit, beating consensus of USD$0.50. Enterprise Products fourth quarter 2018 revenue came at USD$9.18 billion, below consensus of USD$ 9.43 billion. Enterprise Products reported a buyback of unit up to USD$2 billion. Enterprise Products is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • Facebook (FB) reported fourth quarter 2018 adjusted EPS of USD$2.38 beating consensus of USD$2.18.  Facebook fourth quarter revenue came at USD$16.91 billion, above consensus of USD$16.39 billion.  Facebook reported 2.32 billion monthly active users, matching consensus and 1.52 billion daily active users, also matching consensus.  Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Ferrari NV (RACE) shares surged after the company announced that it expected profit to jump in its fiscal year. Ferrari sees ebit growing by 10% in FY2019 to as much as 1.25bn euro (USD$1.43bn). CEO Louis Camilleri also told investors that strong book orders may lead the company to boost its financial targets for the full-year. Ferraris is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.  
  • General Electric (GE) reported fourth quarter 2018 adjusted EPS of USD$0.17, missing consensus of USD$0.22.  General Electric fourth quarter 2018 revenue came at USD$33.28bn, slightly missing consensus of USD$32.33bn.  General Electric also announced that they reached a settlement of USD$1.5bn with the DOJ related to the company’s old subprime mortgage business. General Electric is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Top Short” in our US Industrials Global Top Stock Ideas.
  • International Paper Co. (IP) reported fourth quarter 2018 adjusted EPS of USD$1.65, beating consensus of USD$1.59.  International Paper Co. fourth quarter 2018 revenue came at USD$5.95bn, in line with consensus of USD$5.96bn. International Paper Co. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Marsh & McLennan (MMC) reported fourth quarter 2018 adjusted EPS of USD$1.17, surpassing consensus of USD$1.04.  Marsh & McLennan fourth quarter 2018 revenue came at USD$3.70bn, slightly missing consensus of USD$3.73bn. Marsh & McLennan is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Mastercard Inc. (MA) reported fourth quarter 2018 adjusted EPS of USD$1.55, edging past consensus of USD$1.52.  Mastercard Inc. fourth quarter 2018 revenue came at USD$3.81bn, in line with consensus of USD$3.80bn.  Mastercard Inc. is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Microsoft (MSFT) reported fiscal second quarter 2019 adjusted EPS of USD$1.10 in line with consensus of USD$1.09.  Microsoft fiscal.  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.
  • MSCI Inc. (MSCI) reported fourth quarter 2018 adjusted EPS of USD$1.31, in line with consensus of USD$1.30.  MSCI fourth quarter 2018 operating revenue came at USD$361.7mm, beating consensus of USD$359.8mm. MSCI is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Northrop Grumman Corporation (NOC) reported a FY2019 sales forecast of USD$34bn, in line with consensus of USD$34.20bn. Northrop Grumman generated USD$8.16bn of sales in the fourth quarter of 2019 while analysts expected USD$8.12bn. Northrop Grumman Corporation is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Qualcomm (QCOM) reported fiscal first quarter 2019 EPS of USD$1.20  above consensus of USD$1.09.  Qualcomm fiscal first quarter revenue came at USD$4.82 billion, in line consensus of USD$4.9 billion.  Qualcomm gave guidance for second quarter 2019 revenue of USD$4.4-5.2 billion, in line with consensus that is presently USD$4.83 billion.  Qualcomm is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • ServiceNow Inc. (NOW) shares gained after the company announced subscription sales that topped analyst expectations. ServiceNow told investors that it sees FY2019 subscription revenue growth between 34% and 35%, blowing past consensus of 31%. ServiceNow also said that it sees its subscription billings business growing by between 31% and 32% in FY2019, higher than consensus of 27%. ServiceNow is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.  
  • Sherwin-Williams Co. (SHW) reported fourth quarter 2018 adjusted EPS of USD$3.54, falling slightly short of consensus of USD$3.613.61.  Sherwin-Williams Co. fourth quarter 2018 revenue came at USD$4.06bn.  Sherwin-Williams Co. sees FY2019 EPS between USD$20.40 and USD$21.40, the midpoint of which misses consensus of USD$21.37. Sherwin-Williams Co. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Tractor Supply Co. (TSCO) reported fourth quarter 2018 adjusted EPS of USD$1.11, in line with consensus of USD$1.09.  Tractor Supply Co. fourth quarter 2018 revenue came at USD$2.13bn, in line with consensus of USD$2.10bn.  Tractor Supply Co. sees fiscal first quarter 2019 EPS between USD$4.60 and USD$4.75, the midpoint of which is in line with consensus of USD$4.71. Tractor Supply Co. is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Westrock Co. (WRK) reported fiscal first quarter 2019 adjusted EPS of USD$0.83, slightly beating consensus of USD$0.81.  Westrock fiscal first quarter 2019 revenue came at USD$4.33bn, missing consensus of USD$4.51bn. Westrock is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Wynn Resorts (WYNN) reported fourth quarter adjusted EPS of USD$1.09 missing consensus of USD$1.31.  Wynn Resorts fourth quarter revenue came at USD$1.69 billion, above consensus of USD$1.61 billion.  Wynn Resorts works gave first quarter 2019 EPS guidance of 17-23 cents, well below consensus of 37 cents.  Wynn Resorts is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Vale (VALE) cut production at its southern system of mines, sending iron ore prices in the global market higher.  Vale will produce more in its larger, northern system where in fact the ore is of higher grade.  The cut in production will be temporary.  The death toll from its dam accident has risen to 99 with at least 250 people still missing,  Vale is rated “Top Short” in our Brazil All-Cap Global Top Stock Ideas.
  • Visa (V) reported fiscal first quarter EPS of USD$1.30 beating consensus of USD$1.25.  Visa fiscal first quarter revenue came at USD$5.51 billion, above consensus of USD$5.41 billion.  Visa is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology.
  • Xcel Energy Inc. (XEL) reported fourth quarter 2018 ongoing EPS of USD$0.42, in line with consensus of USD$0.42.  Xcel fourth quarter 2018 operating revenue came at USD$2.88bn, in line with consensus of USD$2.83bn.  Xcel sees FY2019 EPS between USD$2.55 and USD$2.65, in line with consensus of USD$2.61. Xcel is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.

 

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US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -3.43 basis points to 2.47%
  • US 5-Year Treasury Bonds are higher with yields down -3.51 basis points to 2.44%
  • US 10-Year Treasury Bonds are higher with yields down -4.11 basis points to 2.63%
  • The US Treasury 2s-5s Spread has narrowed 0.08 basis points to -0.03%
  • The US Treasury 2s-10s Spread has narrowed 0.68 basis points to 0.16%
  • US Treasury 5s-10s Spread has narrowed 0.6 basis points to 0.19%

Currencies

  • EUR€ is currently down 0.226% against the USD$ to 1.1454
  • GBP£ is currently little changed against the USD$ at 1.3131
  • CHF is currently little changed against the USD$ at 1.0066
  • JPY¥ is currently down 0.193% against the USD$ to 108.83

Commodities

  • WTI Crude is currently up 0.7% to USD$54.61/bbl with the Brent-WTI spread little changed USD$0.07 to USD$7.19/bbl
  • Gold is currently little changed 0.11% to USD$1321.39/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
General Electric Co Industrials 8.72 15.37%    27,136,932.00
Charter Communications Inc Communication Services 294 14.37%                734,899
Facebook Inc Communication Services 149 12.96%          12,173,284
AmerisourceBergen Corp Health Care 77.2 8.24%                240,203
Aptiv PLC Consumer Discretionary 69.8 7.64%                297,339
 
Underperformers Sector Price 1D % Chg Volume
H&R Block Inc Consumer Discretionary 25.4 -8.86%                432,641
DowDuPont Inc Materials 55 -7.79%            2,539,686
PG&E Corp Utilities 6.95 -6.52%                699,832
Tractor Supply Co Consumer Discretionary 86.9 -4.64%                628,918
PayPal Holdings Inc Information Technology 91.7 -4.58%            2,847,195
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