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Tech shares lead today as US stocks post fifth weekly gain, S&P 500 above 2800 for first time since November

Mar 01, 2019

 

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US Markets End of Day Snapshot

  • US stocks close higher today with tech shares leading, stock post the fifth weekly gain; the S&P 500 closes above 2800 for the first time since November
  • The S&P 500 finished up 0.69%, Nasdaq Composite up 0.83%, and Russell 2000 up 0.89%
  • 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 (+1.81%), Healthcare (+1.41%), and Consumer Discretionary (+0.92%) stocks were the top performers in the S&P 500 today
  • Real Estate (-0.13%), Materials (-0.16%), and Consumer Staples (-0.17%) 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 2.73x
  • 90 stocks in the S&P 500 hit 4-week highs while 30 stocks reached 4-week lows
  • 83 stocks in the S&P 500 closed overbought while 5 stocks closed oversold according to the 16-day RSI Measure
  • 296 stocks in the Nasdaq Composite hit 4-week highs while 52 stocks reached 4-week lows
  • 320 stocks in the Nasdaq Composite closed overbought while 225 stocks closed oversold according to the 16-day RSI Measure
  • The VIX finished flat at 14.4 after closing at 14.78 yesterday

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.
  • Kering SA (ENXTPA: KER) shares moved higher after AlphaValue upgraded shares from add to buy. Kering currently maintains 21 buy recommendations, 4 hold recommendations, a 1 sell recommendation across analyst ratings. On average, analysts have increased their price target for Kering shares by 1.9% over the last 3 months. Kering is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 
  • Kroger (KR) announced it will stop accepting Visa (V) credit cards at the stores of its Smith’s stores, widening the ban on Visa cards at its stores.  Kroger complains the cost of its credit cards is too high, though it will still permit the use of Visa debit cards.  Kroger’s Smith’s unit operates 142 stores in western states.  Kroger is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.  Visa is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials 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.
  • William Hill (LSE: WMH) shares slid after the company reported in-line FY2018 results that contained no new information about the company’s future. Peel Hunt analyst Ivor Jones wrote in a note to clients William Hill earnings are set to fall, “sharply,” in 219 due to partly the firm's investment in expansion to the US. Jones wrote in his note that payoff for the US investment, “remains some way in the future and we are skeptical about whether any analysis of the potential upside is investable.” William Hill is rated “Neutral” in our United Kingdom All-Cap 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

  • Eaton (ETN) plans to spin off its lighting division in a tax-free transaction.  Eaton said the division, which had USD$1.8 billion in sales in 2018, would be completely spun off by the end of 2019.  Goldman Sachs (GS) has been retained to advise on the transaction.  Goldman Sachs is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.  Eaton is not rated in our Global Top Stock Ideas.
  • 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.
  • Rolls-Royce (LSE: RR.) shares continued to slip following Thursday’s FY2018 financial report that contained weaker than expected financial results. Investors are debating whether or not the quality of Rolls-Royce's cash flow generation and its profitability are sufficient to justify the stock’s valuation. Rolls-Royce is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.  
  • Southwest Airlines (LUV) plans to offer service among the Hawaiian Islands, offering short-haul flights that it is best at.  Southwest has plans to take on local players and has hired management away from those local players.  Southwest sees a market with high price points and of a size where it believe it can compete effectively.  Southwest Airlines is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials 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 4.05 basis points to 2.55%
  • US 5-Year Treasury Bonds are lower with yields up 5.07 basis points to 2.56%
  • US 10-Year Treasury Bonds are lower with yields up 4.72 basis points to 2.76%
  • The US Treasury 2s-5s Spread has widened 1.02 basis points to 0.01%
  • The US Treasury 2s-10s Spread has widened 0.67 basis points to 0.21%
  • US Treasury 5s-10s Spread has narrowed 0.35 basis points to 0.2%

Currencies

  • EUR€ is little changed 0.053% against the USD$ in after hours to 1.1365
  • GBP£ is down 0.407% against the USD$ in after hours to 1.3209
  • CHF is little changed 0.12% against the USD$ in after hours to 1.0008
  • JPY¥ is up 0.476% against the USD$ in after hours to 111.92

Commodities

  • WTI Crude is down -2.48% to USD$55.8/bbl with the Brent-WTI spread little changed USD$0.06 to USD$8.4/bbl
  • Gold is down -1.56% to USD$1292.85/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
DENTSPLY SIRONA Inc Health Care 39.8 17.65%            2,713,663
Gap Inc/The Consumer Discretionary 24.9 16.18%            5,181,338
Masco Corp Industrials 31.4 6.50%            1,580,201
Foot Locker Inc Consumer Discretionary 57.2 5.96%            1,844,967
L Brands Inc Consumer Discretionary 26.6 5.20%            1,835,778
 
Underformers Sector Price 1D % Chg Volume
Walgreens Boots Alliance Inc Consumer Staples 71.8 -6.43%            3,230,978
Nektar Therapeutics Health Care 44.5 -5.94%            1,449,371
Kroger Co/The Consumer Staples 28.6 -4.47%            4,736,186
Simon Property Group Inc Real Estate 171 -3.09%                577,822
Southwest Airlines Co Industrials 49.7 -3.03%            1,816,916
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY