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European stocks give back earlier gains, close flat, with news of EU probe into banks

Jan 31, 2019

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

European Markets

  • European stocks open higher but close flat after the EU annouced a probe into 8 banks for allegedly cooperating in the market
  • The EU did not identify the 8 banks and said the investigations is focused on "a collusive scheme that aimed at distorting competition" in sovereign bond trading
  • The EU added that "traders employed by the banks exchanged commercially sensitive information and coordinated on trading"
  • The Euro Stoxx 600 closed up +0.04%, the FTSE 100 advanced +0.39%, the DAX fell -0.08%, and the CAC 40 finished up +0.36%
  • The EU anti-trust officials are set to veto the Alstom (DB:ALO) - Siemens (DB: SIE) rail merger, with both French and German officials angry at the expected move
  • UK Foreign Secretary Jeremy Hunt said Brexit may have to delayed as Parliament cancels its February recess to deal with Brexit options
  • 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 Jingping "in the near future"
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.57x
  • Oil & Gas (+1.83%), Health Care (+1.07%), and Food & Beverage (+0.95%) stocks were the top performers in the Euro Stoxx 600 today
  • Banks (-1.96%), Chemicals (-0.94%), and Real Estate (-0.78%) stocks were the worst performers in the Euro Stoxx 600 today
  • 124 stocks in the Euro Stoxx 600 hit 4-week highs while 14 stocks closed at 4-week lows
  • 44 stocks in the Euro Stoxx 600 finished the trading session overbought while 5 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed  down 0.91 points today to 15.11 after closing at 16.02 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial 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.
  • Deutsche Bank AG (DB: DBK) executives fear that they are down to their last 60 days to turnaround the struggling German bank. According to reports, executives at Deutsche Bank believe that the company’s performance in CY1Q2019 could decide if the bank will be forced into a government-brokered merger with Commerzbank AG (DB: CBK). “If this is true, the economic situation at Deutsche Bank must be worse than seen by the outside,” said M.M. Warburg analyst Andreas Plaesier. Deutsche Bank is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. Commerzbank is rated “Unattractive” in our European Large-Cap 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.
  • 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.
  • Vallourec SA (ENXTPA: VK) creditors are beginning to cut their exposure to the French steel tube maker as concerns over meeting debt commitments have become more prevalent, according to people familiar with the matter. As per reports, at least two Vallourec lenders are seeking to sell off revolving-credit facilities at as little as 75% of face value. Vallourec is rated “Top Short” in our European Large-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.

What is Going on with European 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

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -3.9 basis points to 0.149%
  • German 10-Year Bunds are higher with yields down -3.9 basis points to 0.149%
  • French 10-Year Government Bonds are higher with yields down -4.3 basis points to 0.554%
  • UK 10-Year GILTs are higher with yields down -3.6 basis points to 1.219%
  • Italian 10-Year Government Bonds are higher with yields down -1 basis points to 2.589%
  • Spanish 10-Year Government Bonds are higher with yields down -5.8 basis points to 1.196%

 

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Euro Stoxx 50 Movers

In local currency.
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Outperformers Sector Price 1D % Chg Volume
Koninklijke Philips NV Financials 34.4 3.45%               5,409,167
Anheuser-Busch InBev SA/NV Energy 66.6 2.18%               2,400,725
TOTAL SA Consumer Discretionary 48 2.04%               8,028,583
SAP SE Industrials 90.3 1.60%               3,122,480
Sanofi Consumer Discretionary 75.8 1.55%               3,321,624
 
Underperformers Sector Price 1D % Chg Volume
Societe Generale SA Energy 27.1 -3.72%               7,223,153
Intesa Sanpaolo SpA Industrials 1.99 -3.21%          230,822,472
BNP Paribas SA Financials 41 -3.20%               6,691,369
Nokia OYJ Financials 5.51 -3.06%            62,727,794
BASF SE Utilities 63.8 -2.58%               5,087,775
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS