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US stocks post slight gains midday, rising for the fifth straight day

Feb 05, 2019

 

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Market data as of 12:30pm EST

US Market Snapshot

  • US stocks post modest gains midday with positive corporate results sending markets higher for a fifth straight day
  • The S&P 500 is currently up 0.26%, Nasdaq Composite is up 0.39%, and Russell 2000 is down 0.13%
  • Markit US Services PMI for January came at 54.2, matching consensus
  • ISM Non-Manufacturing Index came at 56.7, missing consensus of 57.1 and down from 57.6 in December
  • US President Donald Trump is scheduled to give his State of the Union address to the US Congress this evening  
  • Goldman Sachs argues that investors who missed the January 2019 rally, where the S&P 500 finished +8.0%, missed out on most of the returns for the year following an overreaction to decelerating growth in 4Q of CY2018.  Going forward, Goldman Sachs expects only modest returns. 
  • Bloomberg analysts do a deep dive on earnings for the S&P 500, highlighting that earnings growth is expected to decelerate in CY2019 before rebounding in CY2020.  According to Bloomberg, a recovery in the acceleration of earnings growth for the S&P 500 in CY2020 will be key to supporting a continued rally in the benchmark US index.  Consensus expects an average EPS growth rate of +9.5% per annum through CY2020, well ahead of the +8.2% average annual growth rate for the past 5 years. 
  • MKM argues utility stocks will regain the price momentum they lost during the post-Christmas rally with technical signals suggesting the sector is oversold
  • The MSCI All Country index, a proxy for global stocks, has already recovered 50% of CY2018’s losses YTD with the index now +8.35%
  • Tech (+0.69%), Consumer Discretionary (+0.61%), and Materials (+0.5%) stocks are the top performers in the S&P 500 today
  • Energy (-0.25%), Real Estate (-0.3%), and Financials (-0.55%) stocks are the worst performers in the S&P 500 today
  • Investor sentiment for US stocks is neutral with the advance/decline ratio for the S&P 500 currently at 1.16x
  • 132 stocks in the S&P500 are at 4-week highs while 5 stocks are at 4-week lows
  • 84 stocks in the S&P 500 are overbought while 1 stock is oversold according to the 16-day RSI Measure
  • 285 stocks in the Nasdaq Composite are at 4-week highs while 17 stocks are at 4-week lows
  • 594 stocks in the Nasdaq Composite are overbought while 102 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down 0.13 at 15.60 from yesterday's close of 15.73

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • 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.
  • Aramark (ARMK) reported FY1Q2019 adjusted EPS of USD$0.63 in line with analyst expectations for USD$0.61. Aramark generated USD$4.3bn of revenue in FY1Q2019 while consensus called for USD$4.19bn. Aramark expects FY2019 EPS to come between USD$2.30 and USD$2.40. Aramark is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Archer-Daniels-Midland Co. (ADM) reported CY4Q2018 earnings that missed the average analyst estimate. On a conference call with analysts, CEO Juan Luciano said, “Our assumption is not that the trade deal is resolved now in the first quarter, we have it more like half of the year.”  Analysts were surprised that Archer-Daniels-Midland is basing their FY2019 guidance on a resolution to the trade war when there is no imminent deal. Archer-Daniels-Midland is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.  
  • Array Biopharma Inc. (ARRY) reported FY2Q2018 adjusted loss per share of USD$0.05, better than analyst expectations for a loss per share of USD$0.15. Array Biopharma Inc. generated USD$82.5mm of revenue in FY2Q2018 while consensus called for USD$52.4mm. Array Biopharma Inc. is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • Becton Dickinson & Co. (BDX) reported CY4Q2018 adjusted EPS of USD$2.70 in line with analyst expectations for USD$2.61. Becton Dickinson generated USD$4.16bn of revenue in CY4Q2018 while consensus called for USD$4.11bn. Becton Dickinson expects CY2019 EPS to come between USD$12.05 and USD$12.15. Becton Dickinson is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • CDK Global Inc. (CDK) announced FY2Q2019 adjusted EPS of USD$0.98 while consensus was for USD$0.91. CDK Global reported revenue of USD$590.4mm in FY2Q2019 while analysts expected USD$578.8mm. CDK Global sees FY2019 adjusted EPS at the higher end of between USD$3.70 and USD$3.80 while analysts expect USD$3.73. CDK Global is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Centene Corp. (CNC) announced CY4Q2018 adjusted EPS of USD$1.38 while consensus was for USD$1.32. Centene Corp. reported revenue of USD$16.6bn in CY4Q2018 while analysts expected USD$16.33bn. Centene Corp. sees CY2019 split adjusted EPS between USD$4.11 and USD$4.31. Centene Corp. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas. 
  • Church & Dwight Co. (CHD) announced CY4Q2018 adjusted EPS of USD$0.57 in line with consensus of USD$0.58. Church & Dwight Co. reported revenue of USD$1.07bn in CY4Q2018 matching consensus for USD$1.07bn. Church & Dwight Co. sees FY2019 adjusted EPS between USD$2.43 and USD$2.47, missing consensus for USD$2.48. Church & Dwight Co. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.
  • Emerson Electric Co. (EMR) announced FY1Q2019 EPS from continuing operations of USD$0.74 while consensus was for USD$0.66. Emerson Electric reported revenue of USD$4.15bn in FY1Q2019 while analysts expected USD$4.21bn. Emerson Electric sees FY2019 adjusted EPS between USD$3.60 and USD$3.75, the midpoint of which beats consensus for USD$3.63. Emerson Electric is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Energizer Holdings (ENR) reported FY2019 adjusted EPS guidance that beat analyst estimates while announcing an adjusted EPS for FY1Q2019 that also surpassed analyst expectations. Energizer generated an adjusted EPS of USD$1.64 while consensus was for USD$1.54. Energizer sees adjusted EPS between USD$3.45 and USD$3.55 in FY2019 while consensus called for just USD$3.40. Energizer is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.
  • Entegris Inc. (ENTG) reported FY1Q2019 adjusted EPS of USD$0.47 in line with analyst expectations for USD$0.45. Entegris Inc. generated USD$401.6 mn of revenue in FY1Q2019 while consensus called for USD$391.4mn. Entegris Inc. expects FY2Q2019 EPS to come between USD$0.42 and USD$0.47. Entegris Inc. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. 
  • Estee Lauder Cos. Inc. (EL) reported FY2Q2019 adjusted EPS of USD$1.86 well above analyst expectations for USD$1.55.  Estee Lauder Cos. expects FY2019 EPS to come between USD$4.92 and USD$5.00. Estee Lauder Cos. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples 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.
  • Lazard Ltd. (LAZ) reported CY4Q2018 adjusted EPS of USD$0.94 surpassing analyst expectations for USD$0.91. Lazard generated USD$684.5mm of operating revenue in CY4Q2018 while consensus called for USD$666.8mm. Lazard is not rated in our Global Top Stock Ideas.
  • Lumentum Holdings (LITE) announced FY2Q2019 adjusted EPS of USD$1.15 while consensus was for USD$1.17. Lumentum Holdings reported revenue of USD$373.7mm in FY2Q2019, beating analyst expectations for USD$357.4mm. Lumentum Holdings sees FY2019 adjusted EPS between USD$0.76 and USD$0.94, the midpoint of which misses concensus for USD$0.93. Lumentum Holdings is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Oaktree Capital (OAK) announced CY4Q2018 financials that largely surpassed analyst expectations. Oaktree Capital generated an adjusted EPS of USD$0.43 in CY4Q2018 while consensus was for USD$0.32. Oaktree Capital’s adjusted revenue of USD$290.2mm also beat analyst expectations for USD$242.3mm. Oaktree Capital is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.  
  • Ralph Lauren Corp. (RL) reported FY3Q2019 adjusted EPS of USD$2.32 beating analyst expectations for USD$2.14. Ralph Lauren generated USD$1.73bn of revenue in FY3Q2019 while consensus called for USD$1.66bn. Ralph Lauren’s comparable sales at constant currency grew 4% in FY3Q2019, double consensus of 2%. Ralph Lauren is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” 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
  • TransDigm Group Inc. (TDG) reported FY1Q2019 adjusted EPS of USD$3.85 largely beating analyst expectations for USD$3.43. TransDigm Group generated USD$993.3mm of revenue in FY1Q2019 while consensus called for USD$956.2mm. TransDigm Group expects FY2019 EPS to come between USD$16.42 and USD$17.10, the midpoint of which beats consensus of USD$16.58. TransDigm Group is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials 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.
  • Viacom Inc. (VIAB) announced FY1Q2019 adjusted EPS from continuing operations of USD$1.12, beating consensus of USD$1.02. Viacom reported revenue of USD$3.09bn in FY1Q2019 while analysts expected USD$3.12bn. Viacom is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.

 

 

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US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -1.22 basis points to 2.52%
  • US 5-Year Treasury Bonds are higher with yields down -2.18 basis points to 2.51%
  • US 10-Year Treasury Bonds are higher with yields down -2.34 basis points to 2.70%
  • The US Treasury 2s-5s Spread has narrowed 0.96 basis points to -0.01%
  • The US Treasury 2s-10s Spread has narrowed 1.12 basis points to 0.18%
  • US Treasury 5s-10s Spread has narrowed 0.16 basis points to 0.19%

Currencies

  • EUR€ is currently down 0.262% against the USD$ to 1.1408
  • GBP£ is currently down 0.652% against the USD$ to 1.2952
  • CHF is currently down 0.23% against the USD$ to 0.9998
  • JPY¥ is currently little changed against the USD$ at 109.91

Commodities

  • WTI Crude is currently down -0.84% to USD$54.1/bbl with the Brent-WTI spread down USD$-0.55 to USD$7.61/bbl
  • Gold is currently little changed 0.18% to USD$1314.57/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
Estee Lauder Cos Inc/The Consumer Staples 125 11.61%                875,199
Leggett & Platt Inc Consumer Discretionary 38.4 9.86%                256,954
Ralph Lauren Corp Consumer Discretionary 106 7.11%                300,032
PG&E Corp Utilities 6.95 5.57%                554,090
TripAdvisor Inc Communication Services 56.6 5.29%                363,529
 
Underperformers Sector Price 1D % Chg Volume
Church & Dwight Co Inc Consumer Staples 67.3 -8.31%                514,401
Archer-Daniels-Midland Co Consumer Staples 43.5 -6.70%                656,282
Clorox Co/The Consumer Staples 152 -3.64%                204,581
Advanced Micro Devices Inc Information Technology 20.4 -3.52%          13,104,302
Gartner Inc Information Technology 129 -2.88%                221,627
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