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US stocks treading water midday, little changed as WTI dips below $52

Feb 11, 2019

 

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Market data as of 12:15pm EST

US Market Snapshot

  • US stocks are treading water midday with investors waiting for some indication on progress-or not-on trade and/or budget negotiations 
  • The S&P 500 is currently up 0.08%, Nasdaq Composite is up 0.3%, and Russell 2000 is up 0.59%
  • Trade features prominently this week as Chinese Vice Premier Liu He and US Treasury Secretary Steve Mnuchin are set to resume trade talks. 
  • US and Chinese officials are working against a March 1st deadline set by the US to reach a deal or hike tariffs on over USD$200 billion in imports 
  • Oil is weaker this morning with WTI crude 1.5% lower, below $52 at $51.95 last trade
  • Goldman Sachs has stopped recommending clients to purchase stocks of companies with strong balance sheets given the change in stance from the Federal Reserve, saying the pause in hikes should help companies with weak balance sheets 
  • Congressional negotiators made progress over the weekend on an agreement to fund the US government but are reported to have hit a snag yesterday and are presently stalled. 
  • Industrials (+0.57%), Energy (+0.5%), and Consumer Discretionary (+0.35%) stocks are the top performers in the S&P 500 today
  • Healthcare (-0.11%), Telecom (-0.27%), and Utilities (-0.28%) stocks are the worst performers in the S&P 500 today
  • Investor sentiment for US stocks is positive with the advance/decline ratio for the S&P 500 currently at 1.63x
  • 92 stocks in the S&P500 are at 4-week highs while 45 stocks are at 4-week lows
  • 70 stocks in the S&P 500 are overbought while 0 stocks are oversold according to the 16-day RSI Measure
  • 203 stocks in the Nasdaq Composite are at 4-week highs while 36 stocks are at 4-week lows
  • 294 stocks in the Nasdaq Composite are overbought while 237 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently higher at 16.30 from last week's close of 15.72

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Apple (AAPL) saw a 20% plummet in iPhone shipments in the fourth quarter of 2018, according to a report from research firm IDC.  IDC estimates the market as a whole or phones contracted 9.7% in China in the fourth quarter.  IDC highlights that Apple has not been able to adjust its offerings in China fast enough for the pace of change of customers.  Apple is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Avaya Holdings (AVYA) announced FY2019 financial guidance that is mostly in line with analyst expectations. Avaya Holdings expects adjusted revenue between USD$3.05bn and USD$3.15bn in FY2019 while consensus was for USD$3.09bn. Avaya also said that it sees adjusted ebitda of between USD$178.0mm and USD$191.0mm in FY2Q2019, the midpoint of which misses consensus of USD$192.7mm. Avaya Holdings is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Colony Capital Inc. (CLNY) announced that it reached an agreement to add directors to its board and to conduct a strategic review of the company. Colony Capital will add Raymond Mikulich and Craig Hatkoff to its board of directors, effective immediately, as part of its pact with Blackwells Capital. Colony Capital and Blackwells Capital will also jointly agree on a third new director for the company at a later date. Colony Capital is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas
  • Deutsche Post (DB: DPW) may get a hike in postage rated more than expected, according to a report in Frankfurter Allgemeine Zeitung today.  Deutsche Post may get a hike to 0.90 euro, up from 0.70 presently.  The hike will take effect in early summer and not in April as originally thought.  Deutsche Post is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Electronic Arts (EA) was upgraded by Bank of America Merrill Lynch to buy from neutral.  Electronic Arts had its price target hiked to USD$110 from USD$95 while the average price target is USD$93.66.  The hike comes in the wake of weak earnings in February 5th.  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. 
  • Geely Automotive (SEHK: 175) announced a total sales increase of 2% y/y in January to a record 158,393 units. The January sales number represents a 70% increase in unit sales from December and includes sales of its Lynk & Co. premium brand, sold by a 50% joint venture. Geely Automotive is rated “Unattractive” in our China All-Cap Global Top Stock Ideas.
  • KKR (KKR) is acquiring 60% of Indian waste-collection company Ramky Enviro Engineers Ltd in its impact fund.    The deal is valued at USD$510 million.  This is KKR’s biggest deal in the impact fund.  KKR is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Euronext (ENXTPA:ENX) has hiked its offer for the Oslo Stock Exchange to 158 kronor per share, topping by 4% Nasdaq’s (NDAQ) offer for the Oslo exchange.  Nasdaq’s offer was already accepted by the Oslo Exchange and today Nasdaq said it is moving ahead with the deal, giving no hint if it plans to up its offer.  Euronext is rated “Top Buy” in our European SMID-Cap Global Top Stock Ideas.  Nasdaq is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Morgan Stanley (MS) announced the acquisition of Solium Capital (TSX: SUM) for about USD$900mm. Morgan Stanley will pay about CAD$19.15/share for Solium Capital, a provider of stock-plan administration services, which represents a 43% premium on the company’s closing price. Morgan Stanley is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. Solium Capital is not rated in our Global Top Stock Ideas.
  • Norfolk Southern (NSC) shares traded higher after the company announced it is targeting 5% annual revenue growth through 2021. Norfolk also told investors that it expects to improve its FY2019 operating ratio by at least 100 basis points from FY2018 levels. Norfolk will target a dividend payout ratio of 33% in FY2019 while continuing to use free cash flow and borrowing capacity to buyback shares. Norfolk Southern is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.  
  • Playtech (LSE: PTEC) was downgraded by Bank of America Merrill Lynch to underperform from neutral.  Bank of America Merrill Lynch sees a lack of visibility in Asia in the near term and was cited as a primary reason for the downgrade.  Playtech is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas 
  • Restaurant Brands International Inc. (QSR) and other US restaurant stocks rose on Monday after January data showed, “continued positive comp. growth." Comparable sales for the US restaurant industry rose 2% y/y in January 2019 while average check increased 2.7%, Raymond James wrote in a note to clients. Restaurant traffic, meanwhile, fell 0.7% y/y in January. Restaurant Brands is not rated in our Global Top Stock Ideas.  
  • Smith & Nephew Plc (LSE: SN) shares fell on news of deal talks with NuVasive Inc. (NUVA). A deal would reportedly be worth more than USD$3bn, according to the Financial Times. Last week, Smith & Nephew CEO Namal Nawana said that the company is ready to pursue a large deal to expand the company’s operations to more medical devices. Smith & Nephew is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas. NuVasive is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Sprint (S) is suing AT&T (T) for the use of a “5G E” symbol on the screens of phones on its networks that are near an enhanced 4G cell tower.  AT&T calls this “5G Evolution”  hence the 5G E symbol on screens while Sprint is suing call this deceptive.  Sprint is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.  AT&T is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Tesla (TSLA) has successfully ramped up the production of Model 3s but is still have challenges servicing them.  The Wall Street Journal highlight today that owners are having to wait weeks or months to get their vehicles serviced due to the limited number of locations. 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.
  • Vale (VALE) has lost its license to operate the tailings dam that collapsed.  The Brazilian Mines and Energy Minister has opened an administrative proceeding to collect information related to the rupture of Vale's tailings 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 is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas.

 

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US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 2.86 basis points to 2.49%
  • US 5-Year Treasury Bonds are lower with yields up 3.35 basis points to 2.4%
  • US 10-Year Treasury Bonds are lower with yields up 2.87 basis points to 2.66%
  • The US Treasury 2s-5s Spread has widened 0.49 basis points to -0.02%
  • The US Treasury 2s-10s Spread has little changed 0.01 basis points to 0.17%
  • US Treasury 5s-10s Spread has narrowed 0.48 basis points to 0.18%

Currencies

  • EUR€ is currently down 0.415% against the USD$ to 1.1276
  • GBP£ is currently down 0.657% against the USD$ to 1.2859
  • CHF is currently down 0.35% against the USD$ to 0.9958
  • JPY¥ is currently up 0.647% against the USD$ to 110.44

Commodities

  • WTI Crude is currently down -1.46% to USD$51.95/bbl with the Brent-WTI spread up USD$0.75 to USD$9.47/bbl
  • Gold is currently down -0.4% to USD$1309.02/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
Electronic Arts Inc Communication Services 89.5 6.05%            5,513,408
Nektar Therapeutics Health Care 44.5 4.70%                289,382
Chipotle Mexican Grill Inc Consumer Discretionary 515 3.92%                  82,008
Newell Brands Inc Consumer Discretionary 20.8 3.84%                382,585
ABIOMED Inc Health Care 325 3.68%                  47,376
 
Underperformers Sector Price 1D % Chg Volume
Loews Corp Financials 46.6 -6.89%                259,037
Activision Blizzard Inc Communication Services 46.8 -5.54%            5,157,717
WellCare Health Plans Inc Health Care 256 -3.09%                  63,321
Take-Two Interactive Software Inc Communication Services 106 -2.96%                545,297
Expedia Group Inc Consumer Discretionary 117 -2.94%                325,111
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