blog

Latest from the Quantamize Blog

With risk-appetite low, US stocks drift lower on thin volume as trade and budget fears lurk below the surface

Feb 06, 2019

 

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

US Markets End of Day Snapshot

  • US stocks drift a touch lower today in thin volume, with little risk appetite after the market's recent run; concerns over US-China trade prospects and the US budget continue to lurk below the surface
  • The S&P 500 finished down 0.22%, Nasdaq Composite is down 0.36%, and Russell 2000 is down 0.14%
  • Volume on US exchanges today is up to 30% below the average of the last 30 days
  • President Trump's speech to Congress did not do much to ease trade or budget concerns 
  • Iron ore prices have hit a 2-year high as the effects of the Vale (VALE) dam disaster and production interruptions continue to be felt 
  • According to Investors Intelligence (II), bullish stocks newsletter writers have risen for the 5th straight week, the longest streak since late August/early September.  Currently, the number of bullish newsletter sites at 48.6%.  II only begins to worry about “too much optimism” after number breaks above 50.05%.
  • Germany factory orders dropped 1.6% M/M in December, the sharpest drop in 6 months.  Market forecasts were for a +0.3% increase.  The decline in factory orders, coupled with other soft economic data points, suggests the Germany economy, the largest in Europe, is experiencing a deceleration in economic growth.
  • The price ratio of Gold (per ounce) vs the S&P 500 is beginning to recover from levels last seen in 2007.  Rising US debt (as a % of GDP), as well as the global trend of rising debt, appears to be fueling demand for gold.
  • Healthcare (+0.36%), Tech (+0.24%), and Consumer Staples (+0.06%) stocks were the top performers in the S&P 500 today
  • Real Estate (-0.76%), Energy (-0.77%), and Telecom (-1.49%) stocks were the worst performers in the S&P 500 today
  • Investor sentiment for US stocks finished negative with the advance/decline ratio for the S&P 500 closing at 0.75x
  • 213 stocks in the S&P 500 hit 4-week highs while 6 stocks reached 4-week lows
  • 94 stocks in the S&P 500 closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure
  • 285 stocks in the Nasdaq Composite hit 4-week highs while 16 stocks reached 4-week lows
  • 683 stocks in the Nasdaq Composite closed overbought while 94 stocks closed oversold according to the 16-day RSI Measure
  • The VIX finished flat at 15.37 after closing at 15.57 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • 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.
  • Boston Scientific Corp. (BSX) announced CY4Q2018 adjusted EPS of USD$0.39 beating consensus of USD$0.36.  Boston Scientific Corp. reported revenue of USD$2.56 billion in CY4Q2018 while analysts expected USD$2.5 billion. Boston Scientific Corp. sees FY2019 adjusted EPS between USD$1.53 and USD$1.58. Boston Scientific Corp. is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas. 
  • Capri Holdings Ltd. (CPRI) shares soared after the Michael Kors owner acquired the Gianni Versace brand. Additionally, Capri Holdings boosted its FY revenue guidance from expecting USD$5.13bn to expecting USD$5.22bn. Analysts, meanwhile, project USD$5.20bn in revenue for the upcoming FY. Capri Holdings is not rated in our Global Top Stock Ideas.  
  • Chipotle (CMG) reported third quarter 2019 adjusted EPS of USD$1.72 beating consensus of USD$1.39.  Chipotle third quarter 2019 revenue came at USD$1.23 billion matching consensus of USD$1.19 billion.  Chipotle same store sales grew at 6.1%, well above consensus of 4.5%.  Chipotle is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Cognizant Technology Solutions (CTSH) announced CY4Q2018 adjusted EPS of USD$ while consensus was for USD$1.07. Cognizant Technology Solutions reported revenue of USD$ in CY4Q2018 while analysts expected USD$. Cognizant Technology Solutions sees FY2019 adjusted EPS between USD$ and USD$. Cognizant Technology Solutions is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Cummins Inc. (CMI) announced CY4Q2018 adjusted EPS of USD$3.63 while consensus was for USD$3.81. Cummins Inc. reported revenue of USD$6.13bn in CY4Q2018 while analysts expected USD$6.08bn. Cummins Inc. sees FY2019 revenue growing by between 0% and 4%. Cummins Inc. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Daimler (DB: DAI) reported fourth quarter ebit of 2.67 billion versus 3.42 billion euros a year ago.  Daimler fourth quarter revenue came at 46.6 billion euros USD$39.29 billion versus 45.5 billion euros from a year ago.  Daimler is discussing building an electric van with Tesla (TSLA).  Daimler is also talking to Geely Automotive (SEHK:175) about future cooperation.  Daimler is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.  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.  Geely Automotive is rated “Unattractive” in our China All-Cap Global Top Stock Ideas.
  • Elanco Animal Health Inc. (ELAN) announced CY4Q2018 adjusted EPS of USD$0.29 while consensus was for USD$0.28. Elanco Animal Health Inc. reported revenue of USD$799.3mm in CY4Q2018 while analysts expected USD$800.7mm. Elanco Animal Health Inc. sees FY2019 adjusted EPS of between USD$1.02 and USD$1.12 while analysts expect USD$1.10. Elanco Animal Health Inc. is rated “Unattractive” in our US Large-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.
  • Eli Lilly & Co. (LLY) announced CY4Q2018 adjusted EPS of USD$1.33 matching consensus of USD$1.34. Eli Lilly & Co. reported revenue of USD$6.44 billion in CY4Q2018 while analysts expected USD$6.29 billion. Eli Lilly & Co. sees FY2019 adjusted EPS between USD$5.55 and USD$5.65. Eli Lilly & Co. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • First Data Corp. (FDC) announced CY4Q2018 adjusted EPS of USD$0.38 that matched its preliminary reported adjusted EPS of USD$0.38 on January 16th. First Data Corp. Sees its FY2019 adjusted EPS between USD$1.55 and USD$1.58, the midpoint of which slightly misses consensus of USD$1.58. First Data Corp. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • General Motors Co. (GM) announced CY4Q2018 adjusted EPS of USD$1.43 while consensus was for USD$1.25. General Motors Co. reported revenue of USD$38.40bn in CY4Q2018 while analysts expected USD$36.53bn. General Motors Co. maintained FY2019 adjusted EPS guidance between USD$6.50 and USD$7.00 while consensus was for USD$6.27. General Motors Co. is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary 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.
  • GoPro (GPRO) reported fourth quarter adjusted EPS of USD$0.26, beating consensus of USD$0.26. GoPro fourth quarter revenue came at USD$377 million beating consensus of USD$374 million by a touch.  GoPro is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Humana Inc. (HUM) announced CY4Q2018 adjusted EPS of USD$2.65 beating consensus of USD$2.52. Humana Inc. reported revenue of USD$14.17 billion in CY4Q2018 while analysts expected USD$13.97 billion. Humana Inc. sees FY2019 adjusted EPS of between USD$17 and USD$17.50 while analysts expect USD$. Humana Inc. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas. 
  • Immunomedics Inc. (IMMU) announced FY2Q2019 adjusted loss per share of USD$ while consensus was for USD$0.34. Immunomedics reported revenue of USD$ in FY2Q2019 while analysts expected USD$. Immunomedics sees FY2019 adjusted EPS of between USD$ and USD$ while analysts expect USD$. Immunomedics is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • ING Groep NV (ENXTAM: INGA) shared traded higher after the company announced it may move some offices due to Brexit. The Amsterdam-based financial institution is considering relocating dozens of London positions back to the European continent. CEO Ralph Hamers told reporters on Wednesday, “What regulators are thinking -- depending on how Brexit will be negotiated -- is that European banks do need some kind of a risk control on the continent for their euro business.” ING Groep is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • Jacobs Engineering Group Inc. (JEC) announced FY1Q2019 adjusted EPS of USD$1.14 while consensus was for USD$1.03. Jacobs Engineering Group reported revenue of USD$3.08bn in FY1Q2019 while analysts expected USD$3.82bn. Jacobs Engineering Group sees FY2019 adjusted EPS of between USD$5.10 and USD$5.50, the midpoint of which edges past analyst expectations of USD$5.15. Jacobs Engineering Group is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • MetLife (MET) reported fourth quarter adjusted EPS of USD$1.35 beating consensus of USD$1.28. MetLife fourth quarter adjusted revenue came at USD$15.4 billion, matching consensus.  MetLife is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • The New York Times Co. (NYT) announced CY4Q2018 adjusted EPS of USD$0.32 while consensus was for USD$0.28. The New York Times reported revenue of USD$502.7mm in CY4Q2018 while analysts expected USD$479.5mm. The New York Times is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Peabody Energy (BTU) announced CY4Q2018 financials that notably miss analyst estimates. Peabody reported adjusted ebitda of USD$273.7mm in CY4Q2018, missing the lowest analyst estimates that ranged between USD$274.0mm and USD$354.0mm. Peabody generated revenue of USD$1.40bn in Cy4Q2018 while analysts expected USD$1.38bn. Peabody is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  
  • Prudential Financial (PRU) reported fourth quarter adjusted operating EPS of USD$2.44 missing consensus of USD$2.78. Prudential Financial fourth quarter assets under management came at USD$1.38 trillion, matching consensus.  Prudential Financial hiked its quarterly dividend to USD$1, above 95 cents consensus.  Prudential Financial is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Regeneron Pharmaceuticals Inc. (REGN) announced CY4Q2018 adjusted EPS of USD$6.84 that largely surpassed consensus of USD$5.61. Regeneron Pharmaceuticals reported revenue of USD$1.93bn in CY4Q2018 while analysts expected USD$1.72bn. Regeneron Pharmaceuticals is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Sensata Technologies Holdings (ST) announced CY4Q2018 adjusted EPS of USD$0.95 while consensus was for USD$0.99. Sensata Technologies reported revenue of USD$3.58bn in CY4Q2018 while analysts expected USD$3.68bn. Sensata Technologies sees FY2019 adjusted EPS of between USD$3.94 and USD$4.10, the midpoint of which slightly misses consensus of USD$4.05. Sensata Technologies is not rated in our Global Top Stock Ideas.
  • Snap Inc. (SNAP) shares soared as much as 27% after the company reported revenue that trumped analyst expectations. Snap observed revenue of USD$389.8mm in CY4Q2018 while consensus was for USD$377.5mm. Management said on a conference call that analysts that the company is, “cautiously optimistic,” that users will remain level in the current quarter. Snap is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas. 
  • Summit Materials Inc. (SUM) announced CY4Q2018 adjusted loss per share of USD$0.16 while consensus was for an adjusted EPS of USD$0.05. Summit Materials reported revenue of USD$445.1mm in CY4Q2018 while analysts expected USD$489.9mm. Summit Materials sees FY2019 adjusted ebitda of between USD$430mm and USD$470mm, the midpoint of which is in line with consensus of USD$451.2mm. Summit Materials is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • Take-Two Interactive Software (TTWO) shares fell after announcing FY4Q2019 EPS guidance between USD$0.61 and USD$0.71 while consensus was for USD$1.07. Take-Two generated an adjusted EPS of USD$2.90 in FY3Q2019 while consensus was for USD$2.80. Take-Two Interactive Software reported adjusted revenue of USD$1.57bn in F32Q2019 while analysts expected USD$1.52. Take-Two Interactive Software is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Twenty-First Century Fox Inc. (FOXA) announced FY2Q2019 adjusted EPS from continuing operations of USD$0.37 while consensus was for USD$0.32. Twenty-First Century Fox reported revenue of USD$8.50bn in FY2Q2019 while analysts expected USD$8.49bn. Twenty-First Century Fox is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Ubisoft (ENXTPA: UBI) shares tanked after competitors Electronic Arts (EA) and Take-Two Interactive Software (TTWO) reported weaker than expected earnings. Video game makers across the globe are attributing lagging performance to the unprecedented success of Fortnite, a free to play game launched by Tencent’s (SEHK: 700) Epic Games. Ubisoft is rated “Attractive” in our European Large-Cap Global Top Stock Ideas. Electronic Arts is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas. Take-Two is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas. Tencent is rated “Attractive” in our China All-Cal 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.

 

Actionable and Transparent Quantitative ResearchActionable and Transparent Quantitative Research
Actionable and Transparent Quantitative ResearchActionable and Transparent Quantitative Research

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 0.41 basis points to 2.52%
  • US 5-Year Treasury Bonds are higher with yields down -0.17 basis points to 2.50%
  • US 10-Year Treasury Bonds are lower with yields up 0.17 basis points to 2.7%
  • The US Treasury 2s-5s Spread has narrowed 0.58 basis points to -0.02%
  • The US Treasury 2s-10s Spread has narrowed 0.24 basis points to 0.17%
  • US Treasury 5s-10s Spread has widened 0.34 basis points to 0.19%

Currencies

  • EUR€ is down 0.359% against the USD$ in after hours to 1.1365
  • GBP£ is little changed 0.077% against the USD$ in after hours to 1.2935
  • CHF is down 0.23% against the USD$ in after hours to 0.9978
  • JPY¥ is little changed 0.027% against the USD$ in after hours to 109.99

Commodities

  • WTI Crude is up 0.65% to USD$54.01/bbl with the Brent-WTI spread little changed USD$0.13 to USD$8.19/bbl
  • Gold is down -0.67% to USD$1306.54/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

 

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
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

On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
Skyworks Solutions Inc Information Technology 68.4 11.49%            2,527,650
Capri Holdings Ltd Consumer Discretionary 40.4 11.30%            1,346,729
Microchip Technology Inc Information Technology 75 7.29%            2,703,037
Micron Technology Inc Information Technology 33.9 5.46%          10,507,176
Unum Group Financials 32.6 5.25%            1,202,009
 
Underformers Sector Price 1D % Chg Volume
Take-Two Interactive Software Inc Communication Services 106 -13.76%            4,871,679
Electronic Arts Inc Communication Services 89.5 -13.31%            6,691,665
Activision Blizzard Inc Communication Services 46.8 -10.12%            8,083,876
Anadarko Petroleum Corp Energy 47.5 -7.40%            2,186,100
Interpublic Group of Cos Inc/The Communication Services 22.2 -5.63%            1,828,638
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY