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US stocks post fifth straight day of gains with lower volume ahead of the State of the Union address

Feb 05, 2019

 

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

US Markets End of Day Snapshot

  • US stocks rose for the fifth straight day with positive earnings driving the risk-on sentiment
  • The S&P 500 finished up 0.47%, Nasdaq Composite up 0.74%, and Russell 2000 up 0.18%
  • US President Donald Trump is scheduled to give his State of the Union address to the US Congress this evening  
  • Volume traded on US stock exchanges was about 15% below the average of the last 30 days
  • 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
  • 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. 
  • Consumer Discretionary (+0.96%), Telecom (+0.91%), and Tech (+0.88%) stocks were the top performers in the S&P 500 today
  • Consumer Staples (-0.02%), Healthcare (-0.08%), and Financials (-0.14%) 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 2.16x
  • 132 stocks in the S&P 500 hit 4-week highs while 5 stocks reached 4-week lows
  • 84 stocks in the S&P 500 closed overbought while 1 stock closed oversold according to the 16-day RSI Measure
  • 285 stocks in the Nasdaq Composite hit 4-week highs while 17 stocks reached 4-week lows
  • 594 stocks in the Nasdaq Composite closed overbought while 102 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed down 0.16 points today to 15.57 after closing at 15.73 yesterday

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.
  • Allstate (ALL) reported fourth quarter adjusted EPS of USD$1.24 beating consensus of USD$1.10. Allstate fiscal first quarter combined ratio came at 97% matching consensus.  Allstate is rated “Neutral” in our US Large-Cap 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.
  • Distribuidora Internacional de Alimentacion, S/A (BME: DIA) shares soared more than 50% on Monday after LetterOne, the investment vehicle for Russian billionaire Mikhail Fridman, announced a takeover bid. LetterOne is offering 800mm euros (USD$913mm) for the troubled European grocer. LetterOne already owns 29% of DIA shares. DIA is rated “Top Short” in our European SMID-Cap Global Top Stock Ideas.  
  • Electronic Arts (EA) reported third quarter 2019 adjusted EPS of USD$1.93 matching consensus of USD$1.93.  Electronic Arts third quarter 2019 revenue came at USD$1.61 billion trailing consensus of USD$1.75 billion.  Electronic Arts gave EPS guidance for the coming quarter of USD$ 0.90, well below consensus of USD$1.59 with revenue of USD$1.17 while consensus is for USD$1.47 billion.  Electronic Arts is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology 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 consensus 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.  
  • Pandora A/S (CPSE: PNDORA) shares traded notably higher after beating CY4Q2018 estimates despite the company saying that it expects negative organic growth in FY2019.  Pandora generated net income of 5.05bn Danish krone in CY4Q2018 while analysts expected 4.88bn Danish krone. Pandora said that it expects organic sales to slow by between 3% and 7% in FY2019. Pandora is rated “Neutral” in our European Large-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.
  • The Walt Disney Co. (DIS) reported fiscal first quarter adjusted EPS of USD$1.84, handily beating consensus of USD$1.54. Disney fiscal first quarter revenue came at USD$15.3 billion beating consensus of USD$15.15 billion by a touch.  Disney's strong broadcast results drove the company's earnings beat.  Walt Disney Co. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” 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 down 0.262% against the USD$ in after hours to 1.1408
  • GBP£ is down 0.629% against the USD$ in after hours to 1.2955
  • CHF is down 0.21% against the USD$ in after hours to 1
  • JPY¥ is little changed 0.073% against the USD$ in after hours to 109.97

Commodities

  • WTI Crude is down -1.65% to USD$53.66/bbl with the Brent-WTI spread little changed USD$0.07 to USD$7.93/bbl
  • Gold is little changed 0.22% to USD$1315.1/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
Estee Lauder Cos Inc/The Consumer Staples 125 11.64%            1,597,041
Leggett & Platt Inc Consumer Discretionary 38.4 9.76%                792,993
Ralph Lauren Corp Consumer Discretionary 106 8.39%                639,874
PG&E Corp Utilities 6.95 5.94%            1,127,141
Electronic Arts Inc Communication Services 89.5 4.63%            2,271,243
 
Underformers Sector Price 1D % Chg Volume
Church & Dwight Co Inc Consumer Staples 67.3 -7.51%            1,105,898
Archer-Daniels-Midland Co Consumer Staples 43.5 -5.93%            1,963,234
Clorox Co/The Consumer Staples 152 -3.55%                674,406
Advanced Micro Devices Inc Information Technology 20.4 -3.40%          22,907,726
Gilead Sciences Inc Health Care 68.4 -3.38%            3,822,124
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY