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With a deal at hand to avoid shutdown, US stocks rally on optimistic sentiment

Feb 12, 2019

 

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US Markets End of Day Snapshot

  • US stocks rally on an overall optimistic sentiment with trade and budget progress fueling risk-on
  • The S&P500 posted its best one-day gain this month as it broke through its 200-day moving average today
  • The S&P 500 finished up 1.29%, Nasdaq Composite up 1.46%, and Russell 2000 up 1.27%
  • Congress has reached "an agreement in principle" though it is not clear President Trump will accept its terms, negotiations continue
  • Investors are also optimistic on chances for a US-China trade deal as President Trump indicated today he would let the March 1st deadline slide forward if the 2 sides are close to a deal by then
  • White House officials have indicated President Trump wants to meet with Chinese President Xi “soon” to avert prolonging the trade war, this as senior negotiators from both countries are set to meet Thursday and Friday in Beijing; all signs are for an extension of the existing March 1st deadline 
  • Saudi Arabia confirmed it will cut another 400,000 barrels per day of production next month, sending oil higher today
  • Morningstar reports that for the first time, investors have more money in large-cap passive funds than in large-cap actively managed funds
  • Well over USD$30 billion has flowed into emerging markets stocks over the past 17 weeks, read more about comparative valuations in our blog post As Investors Continue to Favor Emerging Markets over Developed Markets, which Sectors Look Attractive? (click to read)
  • NYU Professor Aswath Damodaran argues that S&P 500 companies in the lowest quintile for projected sales growth are typically those announcing the largest buyback
  • Materials (+2.25%), Consumer Discretionary (+1.66%), and Financials (+1.56%) stocks were the top performers in the S&P 500 today
  • Consumer Staples (+0.88%), Utilities (+0.17%), and Real Estate (-0.7%) 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 4.88x
  • 126 stocks in the S&P 500 hit 4-week highs while 14 stocks reached 4-week lows
  • 78 stocks in the S&P 500 closed overbought while 1 stock closed oversold according to the 16-day RSI Measure
  • 242 stocks in the Nasdaq Composite hit 4-week highs while 32 stocks reached 4-week lows
  • 421 stocks in the Nasdaq Composite closed overbought while 169 stocks closed oversold according to the 16-day RSI Measure
  • The VIX finished flat at 15.6 after closing at 15.97 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Activision Blizzard (ATVI) reported fourth quarter adjusted EPS of USD$1.29 matching consensus of USD$1.29.  Activision Blizzard reported fourth quarter total sales of USD$2.84 billion missing consensus of USD$3.04 billion.  Activision Blizzard said first quarter 2019 EPS will come around 20 cents, well below 47 cents consensus.  Its dividend was raised to 37 cents per share from 34 cents.  Activision Blizzard is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Akamai Technology (AKAM) reported fourth quarter adjusted EPS of USD$1.07 beating consensus of USD$1.00.  Akamai Technology reported fourth quarter revenue of USD$713 million beating consensus of USD$703.9 million.  Akamai Technology said Ed McGowan will succeed Jim Benson as CFO.  Akamai Technology is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Ares Capital (ARCC) reported fourth quarter core EPS of USD$0.45 beating consensus of USD$0.41.  Ares Capital reported fourth quarter revenue of USD$345 million beating consensus of USD$322.7 million.  Ares Capital is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Brighthouse Financial (BHF) reported fourth quarter adjusted EPS of USD$1.56 matching consensus of USD$1.56.  Brighthouse Financial reported fourth quarter revenue of USD$4.03 billion beating consensus of USD$2.03 billion.  Brighthouse Financial is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • Dominion Energy (D) announced a plan to reduce methane emissions from its natural gas infrastructure by 50% over the next decade.  Dominion Energy will achieve this primarily by reducing or eliminating gas venting from maintenance operations.  Dominion Energy will prevent more than 430,000 metric tons of methane from entering the atmosphere.  Dominion Energy is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Fidelity National Information (FIS) reported CY4Q2018 adjusted EPS from continuing operations of USD$1.60 while analysts expected USD$1.58. Fidelity National Information expects FY2019 adjusted EPS between USD$7.35 and USD$7.55, blowing past analyst estimates that range between USD$5.61 and USD$5.86. Fidelity National Information 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.
  • FMC Corp. (FMC) reported fourth quarter adjusted EPS of USD$1.69 beating consensus of USD$1.48.  FMC Corp. reported fourth quarter revenue of USD$1.2 billion matching consensus of USD$1.18 billion.  FMC is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Kering (ENXTPA:KER) reported fourth quarter sales growth of 28.1% at Gucci beating consensus of 27%.  Kering reported fourth quarter total sales of 3.83 billion euros.  Kering CEO said 10% growth for Gucci is realistic and he does not see a need for M&A and does not see a need to get into a bidding war.  Kering is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Huntsman Corp (HUN) reported fourth quarter EPS of USD$0.52 missing consensus of USD$0.54.  Huntsman Corp reported fourth quarter revenue of USD$2.24 billion in line with consensus of USD$2.13 billion.  Huntsman Corp is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Molson Coors Brewing Co. (TAP) announced today that it is restating its financial statements from 2016 and 2017.   Molson Coors Brewing Co. found errors in accounting when preparing 2018 statements.  The errors were related to deferred tax liabilities for partnerships in Miller Coors.  Molson Coors Brewing is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.
  • MoneyGram (MGI) reported fourth quarter EPS of USD$0.01 missing consensus of USD$0.13.  MoneyGram reported fourth quarter revenue of USD$345.8 million in line with consensus of USD$348.5 million.  MoneyGram is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • New Residential Investment Corporation (NRZ) announced CY4Q2018 core EPS of USD$0.58, edging past consensus of USD$0.55. New Residential Investment Corporation also acquired USD$1.5bn of re-performing loans from Fannie Mae in CY4Q2018. New Residential Investment Corporation is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Occidental Petroleum (OXY) reported fourth quarter core EPS of USD$1.22 beating consensus of USD$1.14.  Occidental Petroleum reported fourth quarter total sales of USD$4.76 billion matching consensus of USD$4.7 billion.  Occidental Petroleum is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Omnicom Group Inc. (OMC) announced CY4Q2018 adjusted EPS of USD$1.77 while consensus was for USD$1.66. Omnicom Group Inc. reported net sales of USD$4.09 in CY4Q2018 while analysts expected USD$4.10.  Omnicom Group Inc. is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Thyssenkrupp (XTRA:TKA) reported first quarter 2019 adjusted ebit of 168 million euros, matching estimates.  Thyssenkrupp reported first quarter 2019 revenue of 7.94 billion euros, beating 7.63 billion euros estimates.  Thyssenkrupp is rated “Top Short” in our European Large-Cap Global Top Stock Ideas. 
  • Toshiba Corp. (TSE: 6502) shares plunged after the company slashed its FY2019 profit forecast by at least 50%, citing mounting expenses in its energy business. Toshiba told analysts that it sees FY2019 operating profit between 20bn yen and 30bn yen (USD$180mm and USD$270mm) when the company had issued prior guidance for 60bn yen. Toshiba is not rated in our Global Top Stock Ideas.
  • Trip Adviser (TRIP) reported fourth quarter adjusted EPS of USD$0.27 missing consensus of USD$0.28.  Trip Adviser reported fourth quarter revenue of USD$346 million beating consensus of USD$342.8 million.   Trip Adviser is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Under Armour (UAA) reported fourth quarter adjusted EPS of USD$0.09 beating consensus of USD$0.04.  Under Armour reported fourth quarter revenue of USD$1.39 billion in line with consensus of USD$1.38 billion.  Under Armour reported a 12% drop in inventory and indicated first quarter sales will be flat, below 2% consensus.  Under Armour is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • US Foods Holding Corp. (USFD) announced CY4Q2018 adjusted EPS of USD$0.56 while consensus was for USD$0.58. US Foods Holding Corp. reported net sales of USD$6.04bn in CY4Q2018 beating analyst expectations of USD$5.98bn. US Foods Holding Corp. sees FY2019 adjusted EPS between USD$2.15 and USD$2.25. US Foods Holding Corp. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
  • Walmart (WMT) and Deliv have severed their online partnership to deliver groceries in New York City.  Walmart works with 7 delivery services and Deliv complained there were not sufficient volumes to make sense for the partnership to continue.  Walmart is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas. 
  • Welltower Inc. (WELL) announced CY4Q2018 normalized funds from operations per share of USD$1.01 in line with consensus of USD$1.03. Welltower Inc. reported net sales of USD$1.24 in CY4Q2018 while analysts expected USD$1.23bn. Welltower Inc. sees FY2019 normalized funds from operations between USD$4.10/share and USD$4.25/share. Welltower Inc. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Wirecard (XTRA:WDI) has been downgraded Guggenheim today to neutral from buy.  It is impossible to judge the risk/reward at this point given the recent allegations in Singapore of improper activity, Guggenheim highlights in its note.  Wirecard is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.

 

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US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 1.43 basis points to 2.49%
  • US 5-Year Treasury Bonds are lower with yields up 2.18 basis points to 2.48%
  • US 10-Year Treasury Bonds are lower with yields up 2.51 basis points to 2.67%
  • The US Treasury 2s-5s Spread has widened 0.75 basis points to -0.01%
  • The US Treasury 2s-10s Spread has widened 1.08 basis points to 0.18%
  • US Treasury 5s-10s Spread has widened 0.33 basis points to 0.19%

Currencies

  • EUR€ is up 0.47% against the USD$ in after hours to 1.1329
  • GBP£ is up 0.311% against the USD$ in after hours to 1.2895
  • CHF is down 0.221% against the USD$ in after hours to 0.9939
  • JPY¥ is little changed 0.082% against the USD$ in after hours to 110.47

Commodities

  • WTI Crude is up 1.32% to USD$53.1/bbl with the Brent-WTI spread little changed USD$-0.12 to USD$9.1/bbl
  • Gold is little changed 0.21% to USD$1310.89/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
Brighthouse Financial Inc Financials 34.2 13.95%                469,287
Coty Inc Consumer Staples 7.31 12.53%            6,129,609
PG&E Corp Utilities 6.95 7.68%            1,673,642
DR Horton Inc Consumer Discretionary 38.4 7.55%            2,281,095
IPG Photonics Corp Information Technology 126 7.21%                544,944
 
Underformers Sector Price 1D % Chg Volume
Molson Coors Brewing Co Consumer Staples 62.4 -9.44%            1,147,930
Nektar Therapeutics Health Care 44.5 -8.82%            1,125,552
Take-Two Interactive Software Inc Communication Services 106 -4.48%            3,131,305
Everest Re Group Ltd Financials 216 -3.63%                182,981
Gilead Sciences Inc Health Care 68.4 -3.28%            4,537,787
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY