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US stocks give up early session gains and close flat; crude rallies with WTI over $55, up 3%

Feb 01, 2019

 

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US Markets End of Day Snapshot

  • US stocks finished little changed. Despite strong job data, the sentiment was muted by Amazon's (AMZN) weak outlook and tech stocks' weakness
  • The S&P 500 finished up 0.08%, Nasdaq Composite is down 0.25%, and Russell 2000 up 0.17%
  • WTI crude rallies 3% today, trading through $55 and is trading at $55.32 
  • The US added 304,000 non-farm jobs in January, nearly twice the 165,000 expected and the most in almost a year
  • Average hourly earnings in January rose 0.1%, less than 0.3% expected
  • Markit US Manufacturing PMI for January came at 94.9, matching consensus
  • University of Michigan sentiment index for January came above expectations at 91.2, consensus was 90.7
  • Energy (+1.83%), Tech (+0.6%), and Financials (+0.51%) stocks were the top performers in the S&P 500 today
  • Telecom (-0.34%), Real Estate (-0.67%), and Consumer Discretionary (-1.77%) 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 1.29x
  • 226 stocks in the S&P 500 hit 4-week highs while 6 stocks reached 4-week lows
  • 59 stocks in the S&P 500 closed overbought while 2 stocks closed oversold according to the 16-day RSI Measure
  • 191 stocks in the Nasdaq Composite hit 4-week highs while 22 stocks reached 4-week lows
  • 610 stocks in the Nasdaq Composite closed overbought while 111 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed down 0.43 points today to16.14 after closing at 16.57 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Adidas AG (DB: ADS) shares fell after UBS wrote in a note to clients that increased competition and promotional activity in 4Q will hurt the company's product margins. UBS cut Adidas from buy to neutral for this reason. UBS sees Adidas’ gross margins falling by about 20 basis points while consensus calls for a 30 basis point increase. Adidas is rated “Attractive” in our European Large-Cap Global Top Stock Ideas. 
  • Amazon (AMZN) reported fourth quarter 2018 EPS of USD$6.04, above consensus of USD$5.55.  Amazon four th quarter revenue came at USD$72.4 billion, beating consensus of USD$71.9 billion.  This is Amazon's third record earnings report in a row.  Amazon gave guidance for first quarter 2019 net sales of USD$56-60 billion, below consensus that is presently USD$60.9 billion.  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.
  • Booz Allen Hamilton Holding Corporation (BAH) announced strong FY3Q2019 financials and offered FY2019 guidance that misses analyst expectations. Booz Allen observed an adjusted EPS of USD$0.72 in FY3Q2019 while analyst expectations called for USD$0.59. Booz Allen sees FY2019 adjusted EPS between USD$2.65 and USD$2.75, the midpoint of which slightly misses consensus of USD$2.71. Booz Allen is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Chevron Corp. (CVX) posted earnings for CY4Q2019 that beat analysts’ consensus. Chevron reported a production increase to 3 million barrels of oil equivalent per day for the first time in its history, despite falling crude oil prices. Chevron sees fiscal first quarter 2019 EPS between USD$ and USD$. Chevron is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • Cigna Corp. (CI) reported fourth quarter 2018 adjusted EPS of USD$2.46, in line with consensus of USD$2.45.  Cigna Corp. fourth quarter 2018 revenue came at USD$13.75bn, matching consensus.  Cigna Corp. sees 2019 EPS between USD$20 and USD$21. Cigna Corp. is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Cypress Semiconductor (CY) reported fourth quarter 2018 adjusted EPS of USD$0.35 missing consensus of USD$0.32.  Cypress Semiconductor fourth quarter revenue came at USD$604.5 million slightly beating consensus of USD$598.9 million.  Cypress Semiconductor gave guidance for first quarter 2019 EPS of USD$0.22-0.26.  Cypress Semiconductor is rated“Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Danske Bank A/S (CPSE: DANSKE) shares traded higher after the company told investors that it does not expect to sustain financial losses as a result of clients leaving due to the company’s money laundering scandal. Last year alone, Danske lost about 11,000 retail customers in Denmark. Danske is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.  
  • Dominion Energy Inc. (D) reported fourth quarter 2018 operating EPS of USD$0.89, in line with consensus of USD$0.90.  Dominion Energy fourth quarter 2018 operating revenue came at USD$3.36bn, slightly above consensus of USD$3.27bn.  Dominion Energy sees fiscal first quarter 2019 EPS between USD$1.05 and USD$1.25, the midpoint of which is slightly above consensus of USD$1.13. Dominion Energy is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Electrolux (OM:ELUX B) announced a comprehensive overhaul of its production of appliances in America.  Electrolux also announced it will spin off a division that makes professional appliances.  Electrolux will close a plant in Memphis and move other production to Chile.  Electrolux reported results above consensus.  Electrolux is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Exxon Mobil Corporation (XOM) reported financials for CY4Q2018 that crushed analyst estimates. Exxon generated an EPS of USD$1.41 in CY4Q2018, largely surpassing consensus of USD$1.08 and beating the highest analyst estimates that ranged between USD$0.89 and USD$1.26.  Exxon also announced that it repurchased USD$425mm of common stock in CY2018. Exxon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Facebook (FB) is facing seven different data privacy investigations by Irish and EU authorities in the wake of new privacy rules.  Irish authorities said the investigations “are centered on the activities of very big internet companies and their users”. Facebook also reported fourth quarter 2018 adjusted EPS of USD$2.38 beating consensus of USD$2.18.  Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Fortune Brands (FBHS) reported fourth quarter 2018 adjusted EPS of USD$0.86, below consensus of USD$0.93.  Fortune Brands fourth quarter revenue came at USD$1.42 billion, missing consensus of USD$1.47 billion.  Fortune Brands gave guidance for 2019 EPS of USD$3.53-3.77, below consensus of USD$3.78.  Fortune Brands is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • HCA Healthcare (HCA) completed the purchase of Mission Health of North Carolina for USD$1.5 billion.  Mission Health is a 6-hospital network that HCA will add to its 1800 healthcare sites.  HCA Healthcare is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Honeywell International (HON) reported fourth quarter 2018 adjusted EPS of USD$1.91, edging past consensus of USD$1.89.  Honeywell fourth quarter 2018 revenue came at USD$9.73bn, in line with consensus of USD$9.70bn.  Honeywell sees FY2019 EPS between USD$7.80 and USD$8.10, the midpoint of which surpasses analyst consensus of USD$7.89. Honeywell is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Johnson Controls International (JCI) reported fiscal first quarter 2019 adjusted EPS from continuing operations of USD$0.26, above consensus of USD$0.24.  Johnson Controls fiscal first quarter 2019 revenue came at USD$5.46bn, in line with consensus of USD$5.48bn.  Johnson Controls FY2019 EPS between USD$1.75 and USD$1.85, the midpoint of which matches analyst consensus for USD$1.80. Johnson Controls is not rated in our Global Top Stock Ideas.
  • KKR & Co. Inc. (KKR) announced fourth quarter 2018 adjusted EPS of USD$0.55, in line with consensus of USD$0.51.  KKR & Co. Reported assets under management of USD$194.7bn as of December 31st, 2018 compared to consensus for USD$191.1bn. KKR & Co. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Merck & Co. Inc. (MRK) reported fourth quarter 2018 adjusted EPS of USD$1.04, in line with consensus of USD$1.03.  Merck & Co. fourth quarter 2018 revenue came at USD$11.00bn, edging past consensus of USD$10.95bn.  Merck & Co. Inc. sees FY2019 EPS between USD$4.57 and USD$4.72, the midpoint of which slightly missed analyst consensus of USD$4.69. Merck & Co. Inc. is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Nintendo Co. (TSE: 7974) saw its largest single-day drop since launching the Switch console in early 2017 after slashing forecasts for FY2019 Switch shipments from 20 million units to 17 million units. Junko Yamamura, an analyst with Nomura Holdings, said that, “Titles that introduce new ways of playing aren’t going viral like before.” Nintendo is not rated in our Global Top Stock Ideas.
  • Roper Technology (ROP) announced CY4Q2018 financials and CY1Q2019 guidance that surpasses analyst estimates. Roper generated adjusted EPS of USD$3.22 in CY4Q2018 while analysts expected USD$3.13. Roper sees CY1Q2019 adjusted EPS between USD$2.74 and USD$2.80, the midpoint of which beats consensus of USD$2.72. Roper is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Spirit Airlines (SAVE) shares traded higher after the company reported FY2019 guidance 4% above the average analyst estimate. Spirit sees FY2019 revenue between USD$8.0bn and USD$8.2bn while consensus called for USD$7.79bn. Spirit generated an adjusted EPS of USD$1.85 in CY4Q2018 while consensus was for USD$1.80. Spirit is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • Stifel Financial (SF) announced CY4Q2018 financials that surpass analysts estimates. Stifel observed USD$1.57 of EPS, beating the highest analyst estimates that ranged between USD$1.42 and USD$4.52. Stifel generated USD$793.4mm of adjusted revenue in CY4Q2018, beating analyst expectations of USD$764.3mm. Stifel is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas.
  • Symantec (SYMC) reported third quarter 2019 adjusted EPS of USD$0.44, beating consensus of USD$0.39.  Symantec third quarter 2019 revenue came at USD$1.21 billion, in line with consensus of USD$1.18 billion.  Symantec works gave fourth quarter 2019 EPS guidance of 37-41 cents, in line consensus.  Symantec is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Tesla (TSLA) is estimated to have delivered 6,500 Model 3 sedans to US customers in January.  Tesla delivered a total 63,150 Model 3s in 4Q2018 globally.  For 2019, Tesla plans to deliver between 360,000 and 400,000 vehicles across all models.  Tesla is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Vale (VALE) said the closures that are affecting its iron ore mines will not affect its nickel mines as they do not utilize these types of dams.  Vale is presently the largest producer of nickel and last year produced 288,200 tons of the metal.  Vale is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas.
  • Wirecard AG (XTRA: WDI) shares are tanking after the Financial Times reported that an external law firm found evidence indicating, “serious offenses of forgery and/or of falsification of accounts.” Wirecard has since denied the report, calling it, “inaccurate, misleading, and defamatory.” Wirecard is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.  

 

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US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 5.04 basis points to 2.50%
  • US 5-Year Treasury Bonds are lower with yields up 7.02 basis points to 2.50%
  • US 10-Year Treasury Bonds are lower with yields up 5.67 basis points to 2.68%
  • The US Treasury 2s-5s Spread has widened 1.98 basis points to 0%
  • The US Treasury 2s-10s Spread has widened 0.63 basis points to 0.18%
  • US Treasury 5s-10s Spread has narrowed 1.35 basis points to 0.18%

Currencies

  • EUR€ is little changed 0.114% against the USD$ in after hours to 1.1461
  • GBP£ is down 0.214% against the USD$ in after hours to 1.3081
  • CHF is little changed 0.089% against the USD$ in after hours to 1.0048
  • JPY¥ is up 0.533% against the USD$ in after hours to 109.47

Commodities

  • WTI Crude is up 3.01% to USD$55.32/bbl with the Brent-WTI spread little changed USD$-0.12 to USD$7.24/bbl
  • Gold is little changed -0.23% to USD$1318.22/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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Get Unbiased Quantitative Investment Research from Advanced AI Machine Learning Technology and Maximize your ReturnsGet Unbiased Quantitative Investment Research from Advanced AI Machine Learning Technology and Maximize your Returns

S&P 500 Movers

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Outperformers Sector Price 1D % Chg Volume
Symantec Corp Information Technology 19.7 8.99%            6,026,396
FMC Corp Materials 79.1 7.52%                487,016
Aon PLC Financials 149 7.16%                442,204
Zimmer Biomet Holdings Inc Health Care 104 6.40%                542,182
Western Digital Corp Information Technology 37.7 4.47%            3,117,230
 
Underformers Sector Price 1D % Chg Volume
Amazon.com Inc Consumer Discretionary 1673 -5.38%            2,999,489
Westrock Co Materials 40.3 -4.94%                926,047
IDEXX Laboratories Inc Health Care 196 -3.48%                451,728
Valero Energy Corp Energy 78.8 -2.93%            1,372,789
Kohl's Corp Consumer Discretionary 67.3 -2.91%                694,999
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY