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US stocks close higher with tech shares leading the gains, WTI trading below $55

Feb 04, 2019

 

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Better Research, Better Investments.Better Research, Better Investments.

US Markets End of Day Snapshot

  • US stocks close higher, with tech shares leading the gains on a day that saw volume 10-20% below recent averages
  • The S&P 500 finished up 0.68%, Nasdaq Composite up 1.15%, and Russell 2000 up 1.03%
  • WTI crude fell below $55 today and is trading at $54.56
  • US November factory orders fell 0.6%, much below the 0.3% growth expected
  • US November durable goods orders grew at only 0.7%, well below 1.5% expected
  • President Trump said in an interview Sunday that talks with China "doing very well" after the 2 countries met for 2 days last week
  • 4Q Earnings season for the S&P 500, to date, has been better than feared with 60% of reports beating top-line estimates and 75% beating earnings expectations.  However, market strategists point out that the magnitude of earnings beats is the lowest it has been in 7 years.
  • Tech (+1.6%), Industrials (+1.3%), and Telecom (+0.95%) stocks were the top performers in the S&P 500 today
  • Energy (+0.17%), Materials (-0.23%), and Healthcare (-0.34%) 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 2.52x
  • 209 stocks in the S&P 500 hit 4-week highs while 5 stocks reached 4-week lows
  • 59 stocks in the S&P 500 closed overbought while 1 stock closed oversold according to the 16-day RSI Measure
  • 213 stocks in the Nasdaq Composite hit 4-week highs while 19 stocks reached 4-week lows
  • 571 stocks in the Nasdaq Composite closed overbought while 119 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed down 0.41 points today to 15.73 after closing at 16.14 last week

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Alexion Pharmaceuticals, Inc. (ALXN) announced CY4Q2018 financials and CY2019 earnings guidance that beat consensus. Alexion generated an adjusted EPS of USD$2.14 in CY4Q2018, beating the highest analyst estimates that ranged between USD$1.69 and USD$1.96. Alexion sees an adjusted EPS of between USD$9.10 and USD$9.30, the midpoint of which surpasses analyst estimates for USD$8.79. Alexion is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Alphabet (GOOGL) reported fourth quarter EPS of USD$12.77 missing consensus of USD$13.04.  Alphabet fourth quarter revenue came at USD$39.29 billion matching consensus of USD$38.98 billion.  Alphabet reported USD$7 billion on capital expenditures, well above USD$5.2 billion expected. Paid clicks on Google properties grew 66% y/y.  Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Aryzta AG (SWX: ARYN) shares fell as much as 9% after Credit Suisse resumed coverage of the company and issued an underperform recommendation, citing concerns over debt levels. Credit Suisse wrote in a note to clients that the company’s turnaround pan following its capital increase is, “highly ambitious, given the relatively undifferentiated nature of Aryzta’s core product range.” Aryzta is rated “Top Short” in our European SMID-Cap Global Top Stock Ideas.
  • Bristol Myers Squibb Co. (BMY) shares gained after activist investor hedge fund Starboard Value said it took a position in the drug maker. Shares of Bristol Myers sank last month after the company acquired Celgene Corp. (CELG) for a record USD$74bn. Bristol Myers is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Clorox (CLX) reported second quarter 2019 adjusted EPS of USD$1.40 beating consensus of USD$1.30.  Clorox second quarter 2019 revenue came at USD$1.47 billion, in line with consensus of USD$1.47 billion.  Clorox works gave fourth quarter 2019 EPS guidance of USD$6.20-6.40, in line with consensus.  Clorox is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Colliers International (TSX: CIGI) was upgraded to outperform from market perform at JMP Securities.  An improved outlook for the next year was cited in the upgrade.  Colliers International is not rated in our Global Top Stock Ideas.
  • Diodes (DIOD) is buying a wafer fabrication facility in Scotland from Texas Instruments (TXN).  Diode said it expects the deal to be accretive but did not disclose terms of the deal.  Diodes will continue to manufacture Texas Instruments’ Analog products.  Diodes is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  Texas Instruments 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.
  • Ellie Mae (ELLI) shares rose after a DealReporter story broke late Friday that the company hired Morgan Stanley to explore a sale of the company. Many analysts across the industry are questioning if Ellie Mae would fetch much of a premium if acquired. Compass Point, for example, sees Elli Mae’s best-case scenario as being acquired at a 7%-27% premium on Friday’s closing share price. Ellie Mae is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Gilead Sciences (GILD) reported fourth quarter adjusted EPS of USD$1.44 missing consensus of USD$1.70.  Gilead Sciences fourth quarter revenue came at USD$5.8 billion beating consensus of USD$5.52 billion.  Gilead Sciences raised its quarterly dividend to 63 cents, up from 57 cents, and above 62 cents expected.  Gilead Sciences is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Impala Platinum Ltd. (JSE: IMP) shares rose the most in 3 months after the company announced a rebound in its FY1H2019 profit. The world's second-largest producer of platinum said on Monday that a rally in palladium prices that offset near decade-low prices in platinum drove the company’s larger-than-expected profit in FY1H2019. Impala Platinum is not rated in our Global Top Stock Ideas.
  • Nasdaq (NDAQ) formally confirmed its plans to bid for the Oslo Bors for 152 kronor per share.  Nasdaq is besting Euronext’s (ENXTPA: ENX) offer by 5%.  With the formal publication of Nasdaq’s offer, Euronext said it is assessing its original offer.  Nasdaq is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  Euronext is rated “Top Buy” in our European SMID-Cap Global Top Stock Ideas.
  • Nyrstar (ENXTBR: NYR) lowered its profit outlook on Friday and said it faces tough liquidity conditions this year.  Nyrstar is trying to restructure debt coming due later in the year.  Nyrstar said it continues to explore ways to improve liquidity.  Nyrstar is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas.  
  • Panalpina Welttransport Holding AG (SWX: PWTN) is open to considering other acquisition offers after the company turned down a USD$4.2bn acquisition attempt by DSV AS (CPSE: DSV). Although the Ernst Goehner Foundation, who is Panalpina’s largest shareholder with 45.9% of stock, does not want a sale of the company, it said that it is obliged to look at offers and would not necessarily reject a higher bid. Panalpina is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas. DSV A/S is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas.
  • Papa John’s International (PZZA) has received a USD$200mm investment from Starboard Value LP. As part of the investment, Starboard Value LP EO Jeffrey Smith will become the new Chairman of the Board of Directors for Papa Johns. Papa Johns is rated “Top Short” in our US Large-Cap Global Top Stock ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Seagate Technology (STX) reported fiscal second quarter adjusted EPS of USD$1.41 beating consensus of USD$1.28.  Seagate Technology fiscal second quarter revenue came at USD$2.71 billion matching consensus of USD$2.7 billion.  Seagate Technology is not rated in our Global Top Stock Ideas.
  • Sony (TSE: 6758) reported a 14% drop in operating income to 73 billion yen (USD^666 million).  Sony’s weak results came from weak PlayStation sales, Sony sold only 8.1 PS4 consoles this holiday season, down from 9 million a year ago.  Analysts comments have generally been negative with Macquarie downgrading the stock to hold from buy.  Sony is rated is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas.
  • Sysco (SYY) announced FY2Q2019 earnings that edge past analyst estimates. Sysco generated an adjusted EPS of USD$0.75 in FY2Q2019 while consensus called for USD$0.73. Sysco’s revenue in FY2Q2019 of USD$14.77bn slightly missed analyst expectations for USD$14.78bn. Sysco is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.
  • Tesla Inc. (TSLA) announced the acquisition of battery-technology company Maxwell Technologies (MXWL) for USD$218mm in stock. The acquisition for USD$4.75/share represents a ~55% premium on Friday’s closing price of Maxwell Technologies shares. Maxwell Technologies will provide Tesla with a short-term energy storage technology solution that Elon Musk has called a key to the future of electric cars in the past. 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. Maxwell Technologies is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.
  • Ultimate Software Group (ULTI) will be acquired by an investor group led by Helman & Friedman Capital for USD$11bn. Ultimate Software Group shareholders will receive USD$331.50 of cash per share, representing a ~32% premium on the company’s average stock price over the last 30 days. Ultimate Software Group is rated “Neutral” in our US Large-Cap Global Top Stock ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Vallourec SA (ENXTPA: VK) shares were downgraded by Kepler Cheurveaux from hold to reduce. Additionally, Kepler Cheurveaux slashed its price target for Vallourec from 3.40 euros/share to 0.90 euros/share, implying a 39% downside from Friday’s closing price. Vallourec is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas.
  • Versum Materials (VSM) reported fourth quarter EPS of USD$0.55 matching consensus of USD$0.55.  Versum Materials fourth quarter revenue came at USD$339.5 million, matching consensus of USD$341.8 million.  Versum Materials is rated “Top Buy” in our US SMID-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Wirecard (XTRA: WDI) is denying reports of fraud, saying “we fundamentally contradict” press reports fraud in Singapore.  Last week the Financial Times reported that an external law firm found evidence indicating, “serious offenses of forgery and/or of falsification of accounts.”  Authorities in Singapore have launched an investigation.  Wirecard is rated “Attractive” 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 3.45 basis points to 2.53%
  • US 5-Year Treasury Bonds are lower with yields up 3.36 basis points to 2.53%
  • US 10-Year Treasury Bonds are lower with yields up 4.11 basis points to 2.72%
  • The US Treasury 2s-5s Spread has narrowed 0.09 basis points to 0%
  • The US Treasury 2s-10s Spread has widened 0.6 basis points to 0.2%
  • US Treasury 5s-10s Spread has widened 0.75 basis points to 0.19%

Currencies

  • EUR€ is down 0.175% against the USD$ in after hours to 1.1436
  • GBP£ is down 0.291% against the USD$ in after hours to 1.3041
  • CHF is down 0.239% against the USD$ in after hours to 1.0022
  • JPY¥ is up 0.374% against the USD$ in after hours to 109.91

Commodities

  • WTI Crude is down -1.27% to USD$54.56/bbl with the Brent-WTI spread up USD$1.08 to USD$7.86/bbl
  • Gold is down -0.45% to USD$1312.07/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
Clorox Co/The Consumer Staples 152 5.69%            655,152.0
Raytheon Co Industrials 160 5.24%                524,745
Sysco Corp Consumer Staples 62.8 4.83%            1,545,334
McKesson Corp Health Care 123 3.87%                705,822
CarMax Inc Consumer Discretionary 64.4 3.63%                495,786
 
Underformers Sector Price 1D % Chg Volume
ABIOMED Inc Health Care 325 -5.89%                460,721
Allergan PLC Health Care 153 -3.85%                950,275
Electronic Arts Inc Communication Services 89.5 -3.06%            2,098,986
AbbVie Inc Health Care 85.5 -2.45%            2,172,827
Celgene Corp Health Care 88.1 -2.34%            3,943,377
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY