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Growing trade and growth concerns drag US stocks lower midday

Feb 08, 2019

 

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Market data as of 12:15pm EST

US Market Snapshot

  • US stocks are lower midday with mounting concerns over trade and global growth driving the risk-off sentiment
  • Much of that sentiment is being driven by news that US President Donald Trump and Chinese President Xi Jinping will not meet before a March 1 trade war deadline.  This came after Director of National Economic Council (NEC) Larry Kudlow commented that “there is pretty sizeable distance to go” in the trade negotiations between the world’s two largest economies.
  • The S&P 500 is currently down 0.65%, Nasdaq Composite is down 0.7%, and Russell 2000 is down 0.48%
  • BCA Research, an independent research firm, argues that global stocks should remain directionless in the near-term as there does not appear to be any clear direction to market at the moment.  BCA observes that the MSCI All-Country index hasn’t risen or fallen for more than three months at any time since 2H2017.  The independent research firm believes this trend will continue given the vulnerability of stocks valuations to interest rates.
  • Utilities (+0.16%), Consumer Staples (-0.25%), and Real Estate (-0.36%) stocks are the top performers in the S&P 500 today
  • Financials (-1.14%), Consumer Discretionary (-1.14%), and Energy (-2.06%) stocks are the worst performers in the S&P 500 today
  • Investor sentiment for US stocks is negative with the advance/decline ratio for the S&P 500 currently at 0.37x
  • 89 stocks in the S&P500 are at 4-week highs while 36 stocks are at 4-week lows
  • 62 stocks in the S&P 500 are overbought while 0 stocks are oversold according to the 16-day RSI Measure
  • 209 stocks in the Nasdaq Composite are at 4-week highs while 26 stocks are at 4-week lows
  • 302 stocks in the Nasdaq Composite are overbought while 227 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently higher at 17.15 from yesterday's close of 16.37

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Arconic Inc. (ARNC) announced plans to break into two separate companies while also announcing that it will slash its dividend by two-thirds. Arconic will split into an Engineered Products & Forging company and a Global Rolled Products business company. Arconic cut its dividend from USD$0.06 to USD$0.02, citing a need to trim costs. Arconic Inc. is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • Avista Corp. (AVA) announced CY4Q2018 adjusted EPS of USD$0.70 while consensus was for USD$0.65. Avista Corp. sees FY2019 adjusted EPS between USD$2.78 and USD$2.98. Avista also said that it will issue USD$165mm of long-term debt and up to USD$50mm of equity to refinance its debt, fund capex, and maintain its capital structure in FY2019. Avista Corp. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • CBOE Global Markets Inc. (CBOE) announced CY4Q2018 adjusted EPS of USD$1.54 while consensus was for USD$1.37. CBOE Global Markets Inc. reported revenue of USD$334.4mm in CY4Q2018 while analysts expected USD$324.5mm. CBOE Global Markets Inc. told analysts that it sees FY2019 capital expenditures between USD$50mm and USD$55mm. CBOE Global Markets Inc. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Clevland-Cliffs Inc. (CLF) announced CY4Q2018 adjusted EPS from continuing operations of USD$2.03 while consensus was for USD$0.59. Clevland-Cliffs Inc. reported revenue of USD$693.3mm in CY4Q2018 while analysts expected USD$715.7mm. Clevland-Cliffs Inc. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Coty Inc. (COTY) announced FY2Q2019 adjusted EPS of USD$0.24 while consensus was for USD$0.22.  Coty Inc. reported revenue of USD$2.51 billion in FY2Q2019 while analysts expected USD$2.46 billion. Coty Inc. declared a quarterly dividend of ISD$0.125 per share. Coty Inc. is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Staples Global Top Stock Ideas. 
  • DXC Technology (DXC) reported adjusted third quarter 2019 EPS of USD$2 23 beating consensus of USD$2.05.  DXC Technology third quarter 2019 revenue came at USD$5.18 billion, in line with consensus of USD$5.16 billion.  DXC Technology is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Electronic Arts Inc. (EA) shares surged the highest intraday since 2017 after the company announced its new free-to-play battle royale game, Apex Legends, reached 10mm users in 72 hours. Electronic Arts is hailing the new game as a competitor to Epic Games Inc.’s Fortnite. 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.
  • Exelon Corp. (EXC) announced CY4Q2018 adjusted EPS of USD$0.58 while consensus was for USD$0.57. Exelon Corp. sees FY2019 adjusted EPS of between USD$3.00 and USD$3.30, the midpoint of which slightly misses analyst expectations of USD$3.17. Exelon Corp. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Fiserv (FISV) reported fourth quarter adjusted EPS of USD$0.84 in line with consensus of USD$0.86.  Fiserv fourth quarter revenue came at USD$1.55 billion matching consensus of USD$1.55 billion.  Fiserv saw internal revenue growth of 4.5% in the fourth quarter.  Fiserv is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • GrafTech International (EAF) announced CY4Q2018 adjusted EPS of USD$0.79 while consensus was for USD$0.71. GrafTech International reported revenue of USD$532.8mm in CY4Q2018 while analysts expected USD$476.8mm. GrafTech International’s CEO said on a call with analysts, “Looking ahead to 2019, demand for our products remains solid and we expect to have continued robust cash.” GrafTech International is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Goodyear Tire & Rubber (GT) announced CY4Q2018 adjusted EPS of USD$0.51 while consensus was for USD$0.60. Goodyear Tire & Rubber observed net sales of USD$3.88bn in CY4Q2018 while analysts expected USD$3.88bn -- the company cited, “unfavorable currency translation,” as reasoning for the revenue miss. Goodyear Tire & Rubber is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Hasbro Inc. (HAS) announced CY4Q2018 adjusted EPS of USD$1.33 widely missing consensus of USD$1.71. Hasbro Inc. reported revenue of USD$1.39 billion in CY4Q2018 while analysts expected USD$1.71. Hasbro Inc. Hiked its quarterly dividend to 68 cents per share, up from 63 cents, but below 69 cents expected.. Hasbro Inc. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Mattel (MAT) reported fourth quarter adjusted EPS of USD$0.04, strongly beating consensus of 14 cents per share loss. Mattel fourth quarter revenue came at USD$1.52 billion beating consensus of USD$1.44 billion.  Mattel posted its first beat on quarterly earnings in 3 years, seeing better than expected sales in Barbie and Hot Wheels.  Mattel is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Motorola Solutions (MSI) reported fourth quarter adjusted EPS of USD$2.63 beating consensus of USD$2.54. Motorola Solutions fourth quarter revenue came at USD$2.25 billion in line with consensus of USD$2.22 billion.  Motorola Solutions 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.
  • Phillips 66 (PSX) announced CY4Q2018 adjusted ebitda of USD$309.00mm while analysts expected USD$282.7mm. Phillips 66 generated earnings per unit of USD$1.09 in CY4Q2018 while consensus was for USD$1.02.  Phillips 66 is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Univar Inc. (UNVR) announced CY4Q2018 adjusted EPS of USD$0.33 while consensus was for USD$0.32. Univar Inc. reported net sales of USD$1.97 billion in CY4Q2018 while analysts expected USD$2.01 billion. Univar Inc. sees FY1Q2019 adjusted EPS between USD$0.27 and USD$0.29. Univar Inc. is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas. 
  • Vale (VALE) has lost its license to operate the taillings dam that collapsed.  Additionally, emails have surfaced showing dam inspectors warning of potential problems with the 43-year-old earthen dam.  Vale announced the evacuation of 500 residents downstream of a different dam at another of Vale’s mines due to fears of a potential collapse.  Vale has a number of steps it must complete to bring the mine back online and that is not expected to be any time soon.  Vale is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas.

 

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US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -2.26 basis points to 2.45%
  • US 5-Year Treasury Bonds are higher with yields down -2.52 basis points to 2.43%
  • US 10-Year Treasury Bonds are higher with yields down -2.68 basis points to 2.63%
  • The US Treasury 2s-5s Spread has narrowed 0.26 basis points to -0.02%
  • The US Treasury 2s-10s Spread has narrowed 0.42 basis points to 0.17%
  • US Treasury 5s-10s Spread has narrowed 0.16 basis points to 0.19%

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1331
  • GBP£ is currently little changed against the USD$ at 1.2936
  • CHF is currently up 0.251% against the USD$ to 1.0002
  • JPY¥ is currently little changed against the USD$ at 109.72

Commodities

  • WTI Crude is currently down -0.53% to USD$52.36/bbl with the Brent-WTI spread up USD$0.48 to USD$9.16/bbl
  • Gold is currently up 0.35% to USD$1314.65/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
Coty Inc Consumer Staples 7.31 27.90%            2,544,082
Mattel Inc Consumer Discretionary 12.6 22.49%            4,747,530
Motorola Solutions Inc Information Technology 116 14.03%                299,468
Electronic Arts Inc Communication Services 89.5 13.92%            3,529,608
Mohawk Industries Inc Consumer Discretionary 124 5.11%                244,395
 
Underperformers Sector Price 1D % Chg Volume
Goodyear Tire & Rubber Co/The Consumer Discretionary 19 -9.32%            1,471,616
Henry Schein Inc Health Care 81.1 -6.29%                621,152
Arconic Inc Industrials 20.1 -4.69%                710,211
Noble Energy Inc Energy 22.7 -4.53%                423,646
Qorvo Inc Information Technology 61.6 -4.46%                519,067
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