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European stocks fall as ECB says it will discuss at its meeting if it needs to act

Feb 21, 2019

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*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

European Markets

  • European stocks close lower after the ECB said it will discuss at its next meeting if the weakness in the EU economy warrants action from them at this point
  • The Euro Stoxx 600 closed down -0.28%, the FTSE 100 declined -0.85%, the DAX rose +0.19%, and the CAC 40 finished up 0%
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.78x
  • Media (+1.32%), Food & Beverage (+0.75%), and Telecommunications (+0.36%) stocks were the top performers in the Euro Stoxx 600 today
  • Banks (-1.8%), Basic Resources (-1.5%), and Industrial Goods & Services (-0.41%) stocks were the worst performers in the Euro Stoxx 600 today
  • 161 stocks in the Euro Stoxx 600 hit 4-week highs while 20 stocks closed at 4-week lows
  • 74 stocks in the Euro Stoxx 600 finished the trading session overbought while 3 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed little changed -0.09 points today to 14.19 after closing at 14.27 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • Agilent Technology (A) reported first quarter 2019 core EPS of USD$0.76 beating consensus of USD$0.73. Agilent Technology reported first quarter 2019 sales of USD$1.28 billion matching consensus of USD$1.27 billion.  Agilent Technology gave 2Q 2019 EPS guidance of USD$0.70-0.72.  Agilent Technology is rated “Neutral” in our Large-Cap Global Top Stock Ideas.
  • Ardagh Group SA (ARD) shares edged slightly lower after the company announced FY2019 guidance that missed the average analyst estimate. Ardagh said on a conference call that it expects FY2019 adjusted EPS between USD$1.60 and USD$1.75, the midpoint of which is slightly lower than consensus of USD$1.81. Ardagh also announced CY4Q2018 adjusted EPS of USD$0.33 that surpassed consensus of USD$0.28. Ardagh is not rated in our Global Top Stock Ideas.  
  • Arris International PLC (ARRS) announced CY4Q2018 adjusted EPS of USD$0.76 while consensus was for USD$0.74. Arris International PLC reported net sales of USD$1.79bn in CY4Q2018 while analysts expected USD$1.78bn. Arris International PLC told investors, “We anticipate 2019 to be a stronger year than 2018, with the first quarter expected to be the lowest quarter of the year.” Arris International PLC is rated "Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Avis Budget Group (CAR) reported fourth quarter adjusted EPS of USD$0.53 beating consensus of USD$0.37.  Avis Budget Group reported fourth quarter sales of USD$2.1 billion matching consensus of USD$2.05 billion.   Avis Budget Group is rated “Neutral” in our Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • BAE Systems Plc (LSE: BA.) shares dropped after saying that German limits on arms exports to Saudi Arabia will impact its business with the country. BAE Systems told investors that Germany’s current position on export licensing, “may affect the group’s ability to provide the required capability.” BAE Systems is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Bunge (BG) reported fourth quarter EPS of USD$0.08 well below consensus of USD$0.20.  Bunge reported fourth quarter adjusted revenue of USD$11.54 billion is in line with consensus of USD$11.66 billion.  Bunge said its strategic review and CEO search are progressing well.  Bunge is rated “Neutral” in our Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
  • Centrica Plc (LSE: CNA) shares plunged to their lowest levels in nearly two decades after the company announced a bleak outlook for FY2019. Centrica attributed tougher trading conditions in the UK energy market as reasoning for the outlook. Centrica also explained that its average adjusted operating cash low, “is under some pressure.” Centrica is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • CommScope (COMM) reported fourth quarter EPS of USD$0.51 above consensus of USD$0.43.  CommScope reported fourth quarter adjusted revenue of USD$1.06 billion in line with consensus of USD$1.06 billion.  CommScopegave first quarter 2019 EPS guidance of 41-46 cents.  CommScope is rated “Neutral” in our Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Domino's Pizza Inc. (DPZ) shares plunged after reporting CY4Q2018 adjusted EPS of USD$2.62 while analysts expected USD$2.69. Domino's Pizza observed total system-wide domestic comparable sales growth of 5.6% in CY4Q2018, missing consensus of 7.2%. Domino’s Pizza generated domestic company-owned sales growth of 3.6% in CY4Q2018, missing consensus of 6.6%. Domino's Pizza is rated "Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Fuchs Petrolub (DB: FPE3) shares fell notably lower after the company announced a FY2019 Ebit forecast of 371mm euros that missed consensus for 397mme euros. Lambe analyst Heiko Feber wrote in a note to clients that Fuchs Petrolub intends to increase investments into plants, IT, R&D, and employees in the next fiscal year. Fuchs Petrolub is rated “Top Buy” in our European SMID-Cap Global Top Stock Ideas.  
  • Hormel Foods Corp. (HRL) announced FY1Q2019 adjusted EPS of USD$0.44, matching consensus of USD$0.44. Hormel Foods Corp. reported net sales of USD$2.36bn in FY1Q2019 while analysts expected USD$2.39bn. Hormel Foods Corp. also reaffirmed its FY2019 guidance. Hormel Foods Corp. is rated "Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
  • Jack in the Box (JACK) reported fourth quarter adjusted operating EPS of USD$1.35 beating consensus of USD$1.28.  Jack in the Box reported fourth quarter sales of USD$290.8 million matching consensus of USD$286 million.  Same store sales fell 0.1% in the quarter.  Jack in the Box is rated “Neutral” in our Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Johnson & Johnson (JNJ) said it has received subpoenas and inquiries from the US Justice Department and Securities and Exchange Commission relating to its talc baby-powder products.  Some allege there is asbestos in the talc powder that can cause cancer.  Johnson & Johnson faces 13,000 claims alleging the baby powder causes cancer.  Johnson & Johnson is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Newmont Mining (NEM) reported fourth quarter adjusted operating EPS of USD$1.35 beating consensus of USD$1.28.  Newmont Mining reported fourth quarter sales of USD$290.8 million matching consensus of USD$286 million.  Same store sales fell 0.1% in the quarter.  Newmont Mining is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Nike (NKE) has been the subject of ridicule in the social media realm after a basketball player sprained his knee after his Nike sneakers split open in the middle of a game.  The player from Duke University limped off the court and immediately Nike became the butt of endless jokes about the poor quality of its products.  Nike is rated “Unattractive” in our Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.
  • Norwegian Cruise Line Holdings (NCLH) reported CY4Q2018 adjusted EPS of USD$0.85, surpassing consensus of USD$0.79. Norwegian Cruise Line Holdings generated net sales of USD$1.38bn in CY4Q2018, slightly missing consensus of USD$1.40bn. Norwegian Cruise Line Holdings expects FY2019 adjusted EPS between USD$5.20 and USD$5.30, the midpoint of which beats consensus of USD$5.15. Norwegian Cruise Line Holdings is rated "Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
  • Prysmian (BIT: PRY) shares fell the most intraday in more than 6 months after the company announced a system failure detected in WesternLink Interconnection, leading to its UK undersea power line to temporarily shutdown. Mediobanca cut its recommendation for Prysmian shares from outperform to neutral on the news. Prysmian is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.  
  • Realty Income Corp. (O) reported fourth quarter FFO of USD$0.73 per share in line with consensus of USD$0.74.  Realty Income Corp reported fourth quarter adjusted revenue of USD$344.4 million in line with consensus of USD$342 million.  Realty Income Corp sees 2019 FFO of USD$3.23-3.29 per share.  Realty Income Corp is rated “Attractive” in our Large-Cap Global Top Stock Ideas.
  • Scientific Games Corp. (SGMS) reported CY4Q2018 adjusted EPS of USD$0.30 blowing past consensus of USD$0.08. Scientific Games Corp. generated net sales of USD$885.70mm in CY4Q2018, beating consensus of USD$871.95mm. Scientific Games Corp. is rated "Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Swiss RE (SWX: SREN) shares edged higher after a proposed CHF2bn buyback program offset a FY2018 net income miss. Swiss RE proposed a buyback program spanning two separate tranches, each worth up to CHF1bn, to be executed prior to the 2020 AGM. Swiss RE also announced FY net income of USD$421mm, largely missing consensus of USD$788.7mm. Swiss RE is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Vereit Inc. (VER) reported CY4Q2018 adjusted funds from operations per share of USD$0.156 while analysts expected USD$0.171. Vereit Inc. expects FY2019 adjusted funds from operations per share between USD$0.68 and USD$0.70, the midpoint of which edges past consensus of USD$0.68. Vereit Inc. is rated "Neutral” in our US Large-Cap Global Top Stock Ideas.

What is Going on with European Currencies?

  • EUR€ is currently little changed against the USD$ at 1.1334
  • GBP£ is currently little changed against the USD$ at 1.3052
  • CHF is currently little changed against the USD$ at 0.9988

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are lower with yields up 2.7 basis points to 0.127%
  • German 10-Year Bunds are lower with yields up 2.7 basis points to 0.127%
  • French 10-Year Government Bonds are lower with yields up 1.6 basis points to 0.542%
  • UK 10-Year GILTs are lower with yields up 2.1 basis points to 1.202%
  • Italian 10-Year Government Bonds are higher with yields down -2.7 basis points to 2.833%
  • Spanish 10-Year Government Bonds are lower with yields up 0.3 basis points to 1.203%

 

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Euro Stoxx 50 Movers

In local currency.
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Outperformers Sector Price 1D % Chg Volume
Fresenius SE & Co KGaA Telecommunication Services 50 2.29%                  871,158
Linde PLC Real Estate 152 1.68%                  161,329
Danone SA Financials 67.8 1.38%               1,938,886
Vinci SA Consumer Discretionary 82.1 1.26%               1,134,011
Telefonica SA Financials 7.77 1.21%            29,596,987
 
Underperformers Sector Price 1D % Chg Volume
BNP Paribas SA Financials 41.6 -2.28%               1,831,438
Sanofi Consumer Discretionary 73.1 -1.48%               2,443,884
Societe Generale SA Energy 25 -1.34%               1,214,435
ING Groep NV Consumer Discretionary 11 -1.32%            13,430,545
ASML Holding NV Health Care 160 -0.91%               1,076,553
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS