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US stocks post tepid gains, building on overseas strength after strong Chinese data

Mar 01, 2019

 

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Market data as of 12 noon EST

US Market Snapshot

  • US stocks are higher midday  following strength in Europe and Asia after better-than-expected data from China 
  • The S&P 500 is currently up 0.22%, Nasdaq Composite is up 0.25%, and Russell 2000 is up 0.22%
  • US Personal Income grew at 0.4%, below the 1.0% consensus and above December's 0.2% rate
  • Markit US Manufacturing PMI for February is 53, below the 53.7 consensus and 53.7 in January
  • ISM Manufacturing Index in February was 54.2, below 55.8 consensus and 55.8 in January
  • University of Michigan Sentiment index was 93.8 in February, below 95.9 consensus and 95.5 in January
  • US officials are preparing a final trade agreement to present to China in the coming weeks with the potential for another summit in March, according to a report in Bloomberg today 
  • MSCI has confirmed it will increase the weight on Chinese stocks in its indexes, with China rising in the MSCI Emerging Markets index to 3.3% from today’s 0.72% 
  • The China Caixin China Manufacturing PMI came in at 49.9, ahead of market forecasts of 48.5 and January’s reading of 48.3.  Greater-than-expected domestic demand was boosted by an increase in infrastructure spending. 
  • According to equities strategist David Bianco at DWS Investment, the current cycle in earnings growth favors US large-cap stocks.  According to his analysis, growth rates for the S&P 500 surpasses that of the Russell 2000 if “unprofitable companies” are excluded
  • Energy (+1%), Healthcare (+0.92%), and Consumer Discretionary (+0.37%) stocks are the top performers in the S&P 500 today
  • Utilities (-0.44%), Consumer Staples (-0.47%), and Real Estate (-1.23%) 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 1.29x
  • 90 stocks in the S&P500 are at 4-week highs while 30 stocks are at 4-week lows
  • 83 stocks in the S&P 500 are overbought while 5 stocks are oversold according to the 16-day RSI Measure
  • 296 stocks in the Nasdaq Composite are at 4-week highs while 52 stocks are at 4-week lows
  • 320 stocks in the Nasdaq Composite are overbought while 225 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently little changed at 14.4 from yesterday's close of 14.78

Stocks Trending in the News

Click name for Q-Factor rating and financials data.

Global Consumer Stocks Trending in the News

  • Amazon (AMZN) has launched Project Zero, its effort to limit counterfeit sellers on its platform.  Project Zero lets brand owner delete product it deems are fakes.  This marks a shift in the way Amazon functioned in the past and it cedes responsibility for fighting counterfeiters to a third party, the brand owners.  Amazon is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Foot Locker (FL) shares surged after the company delivered CY4Q2018 earnings that beat the highest analyst estimate. Foot Locker reported CY4Q2018 adjusted EPS of USD$1.56, beating the highest analyst estimates that ranged between USD$1.32 and USD$1.49. Foot Locker also reported robust comparable sales growth of 9.7% in CY4Q2018, more than double consensus of 4.6% Foot Locker is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Gap (GPS) announced it will split into 2 companies, with Old Navy being spun off as a standalone company.  Gap reported fourth quarter 2019 adjusted EPS of USD$0.72 matching consensus of USD$0.72.  Gap reported fourth quarter 2019 adjusted revenue of USD$4.62 billion missing consensus of USD$4.7 billion.  Gap gave fiscal 2019 EPS guidance of USD$2.11-2.26 with flat to slightly up sales.  Gap is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Nordstrom (JWN) reported fourth quarter EPS of USD$1.48 beating consensus of USD$1.42.  Nordstrom reported fourth quarter revenue of USD$4.48 billion trailing consensus of USD$4.6 billion.  Nordstrom saw 0.1% same store sales growth, well below the 1.2% consensus.  Nordstrom gave 2019 sales growth guidance of 1-2%, with EPS guidance of USD$3.65-3.90, above consensus of USD$3.67.  Nordstrom is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Moncler (BIT: MONC) shares jumped by double-digits after the Italian jacket maker reported FY2018 that broadly beat analyst expectations. Jefferies analyst Flavio Cereda wrote in a note to clients that Moncler is establishing itself as a, “go-to brand,” for the millennial demographic. Jefferies raised its price target for Moncler from 37 euros/share to 39 euros/share while maintaining its buy recommendation for the stock. Moncler is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Tesla (TSLA) CEO Elon Musk said the company probably won’t post a profit in the first quarter.  Musk said Tesla will have a number of one-time charges that will see it not post a profit.  He said Tesla is cutting costs by closing some stores and cutting its workforce, and it will focus on selling cars online going forward.  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.

Global Information Technology & Communication Services Stocks Trending in the News

  • Autodesk (ADSK) reported fourth quarter adjusted EPS of USD$0.46 beating consensus of USD$0.42.  Autodesk reported fourth quarter adjusted revenue of USD$737.3 million beating consensus of USD$706.5 million.  Autodesk gave first quarter EPS guidance of 44-48 cents per share.  Autodesk is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Dell (DELL) reported fourth quarter 2019 adjusted EPS of USD$0.52 matching consensus of USD$0.52.  Dell reported fourth quarter 2019 adjusted revenue of USD$14.7 billion missing consensus of USD$14.9 billion.  Dell gave second quarter EPS guidance of 50-53 cents per share.  Dell is rated “Top Short” in our US Large-Cap Global Top Stock Ideas
  • WPP Plc (LSE: WPP) shares soared after the company dodged another results shock and reported stronger than expected earnings following a year plagued by client losses. Low expectations for WPP Plc were driven by weak results at rival Publicis Groupe SA (ENXTPA: PUB), who blamed ad spending cuts by consumer goods manufacturers in North America for its downturn. WPP Plc is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas. Publicis Groupe SA is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 

Global Industrials Stocks Trending in the News

  • Rheinmetall (DB: RHM) shares popped after the company delivered better than expected CY4Q2018 financial results for both its defensive and automotive division. Bankhaus Lampe analyst Gordon Schoenell wrote in a note to clients that Rheinmetall’s CY4Q2018 financial indicate, “surprisingly strong margins,”. Rheinmetall’s adjusted Ebit in CY4Q2018 blew past consensus by ~20%. Rheinmetall is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • Jupiter Fund Management Plc (LSE: JUP) shares surged the most intraday in more than 5 years after it announced a higher than expected dividend following a, “tough year,” for asset managers. Jupiter Fund Management trimmed its FY2018 dividend to 28.5 pence/share, a 13% cut from the prior year. Jupiter Fund Management is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • London Stock Exchange Group Plc (LSE: LSE) CEO David Schwimmer announced plans to cut roughly 5% of its workforce to spur growth. London Stock Exchange Group Plc also told investors that it is well positioned to weather any fallout from the potential UK exit from the European Union. London Stock Exchange Group Plc is rated “Attractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Mitsubishi UFJ Financial Group Inc. (TSE: 8306) announced that it’s agreed to acquire DZ Bank’s (UNQ: 834310) aviation finance division, one of the largest acquisitions in the company's history. As part of the acquisition, Mitsubishi UFJ Financial Group will receive a loan portfolio worth 5.6bn euros (USD$6.4bn) and the unit’s employees. Mitsubishi UFJ Financial Group is rated “Attractive” in our Japan Large-Cap Global Top Stock Ideas. DZ Bank is not rated in our Global Top Stock Ideas. 

Global Commodities & Power Stocks Trending in the News

  • Linde (XTRA:LIN) unit Praxair will build a hydrogen plant in Louisiana.  Praxair will supply a major refinery will hydrogen under a long-term contract.  Praxair will build, own and operate the steam methane reformer, which will supply 170 million standard cubic feet of high-purity hydrogen each day.  Linde is not rated in our Global Top Stock Ideas.
  • Vale (VALE) is facing an investigation from Brazilian regulators over possible coverups regarding safety procedures regarding its tailing dams.  Authorities said fines could rise to 205 of revenue from 2018.  The investigation is being launched under Brazil’s anticorruption laws and was not expected.  Vale is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas.

Global Health Care Stocks Trending in the News

  • Dentsply (XRAY) reported fourth quarter adjusted EPS of USD$0.58 beating consensus of USD$0.54.  Dentsply reported fourth quarter adjusted revenue of USD$1.05 billion in line with consensus of USD$1.03 billion.  Dentsply gave 2019 EPS guidance of USD$2.25-2.40 which is above present consensus of USD$2.17.  Dentsply is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Portola Pharmaceuticals (PTLA) reported fourth quarter adjusted loss of USD$1.34 missing consensus of a loss of USD$1.14 per share.  Portola Pharmaceuticals reported fourth quarter adjusted revenue of USD$15.3 million beating consensus of USD$10.3 million.  Portola Pharmaceuticals had cash on hand of USD$317 million at the end of the fourth quarter.  Portola Pharmaceuticals is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.

 

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US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 2.63 basis points to 2.54%
  • US 5-Year Treasury Bonds are lower with yields up 2.71 basis points to 2.53%
  • US 10-Year Treasury Bonds are lower with yields up 2.18 basis points to 2.73%
  • The US Treasury 2s-5s Spread has widened 0.08 basis points to 0%
  • The US Treasury 2s-10s Spread has narrowed 0.45 basis points to 0.2%
  • US Treasury 5s-10s Spread has narrowed 0.53 basis points to 0.2%

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1376
  • GBP£ is currently down 0.302% against the USD$ to 1.3223
  • CHF is currently little changed against the USD$ at 1.0013
  • JPY¥ is currently up 0.467% against the USD$ to 111.91

Commodities

  • WTI Crude is currently little changed -0.19% to USD$57.11/bbl with the Brent-WTI spread down USD$-2.36 to USD$7/bbl
  • Gold is currently down -0.93% to USD$1301.13/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
Gap Inc/The Consumer Discretionary 24.9 18.94%            2,845,873
DENTSPLY SIRONA Inc Health Care 39.8 15.83%            1,288,272
L Brands Inc Consumer Discretionary 26.6 7.12%                865,509
Masco Corp Industrials 31.4 6.83%                474,436
PG&E Corp Utilities 6.95 6.64%                617,711
 
Underperformers Sector Price 1D % Chg Volume
Nektar Therapeutics Health Care 44.5 -8.44%                533,978
Walgreens Boots Alliance Inc Consumer Staples 71.8 -5.52%            1,559,599
Simon Property Group Inc Real Estate 171 -3.24%                140,251
Macerich Co/The Real Estate 45.7 -3.17%                  64,799
American Airlines Group Inc Industrials 32.1 -3.14%            1,049,335
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