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Like a leaf on a lazy river, US stocks dritfing lower, despite weak data this morning; WTI over $64

Apr 08, 2019

 

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Market data as of 12:15pm EST

US Market Snapshot

  • US stocks are drifting lower like a lazy river, not reacting much to today's weak data, the S&P 500 closed Friday within 1.5% of its all-time high
  • The S&P 500 is currently down 0.16%, Nasdaq Composite is down 0.18%, and Russell 2000 is down 0.26%
  • Today's weak data bolsters the case for those calling for interest rate cuts from the Fed
  • WTI crude is surging over 1.7% today, trading above $64, last trade $64.20
  • US February Factory Orders fell 0.5%, matching consensus and well below 0.1% growth in January
  • US February Durable Goods Orders fell 1.6%, matching consensus and well below 0.1% growth in January
  • Earnings seasons begins this week, and with many companies lowering their outlooks last quarter, investors will be focused on these earnings as stocks near record levels
  • The Federal Reserve will publish the minutes of its most recent meeting on Wednesday with investors anxious hear their comments after so many dovish words over the last 6 weeks
  • Check out these Tech Top Picks: Forget the FANGs, THESE Titans of Techs are what your portfolio NEEDS NOW!
  • Check out our Book of the WeekThe Truth About Money, by Ric Edelman
  • Energy (+0.44%), Consumer Staples (+0.25%), and Consumer Discretionary (+0.01%) stocks are the top performers in the S&P 500 today
  • Real Estate (-0.66%), Utilities (-0.83%), and Industrials (-0.89%) stocks are the worst performers in the S&P 500 today
  • Investor sentiment for US stocks is negative with the advance/decline ratio for the S&P 500 currently at 0.6x
  • 178 stocks in the S&P500 are at 4-week highs while 4 stocks are at 4-week lows
  • 72 stocks in the S&P 500 are overbought while 1 stock are oversold according to the 16-day RSI Measure
  • 162 stocks in the Nasdaq Composite are at 4-week highs while 55 stocks are at 4-week lows
  • 470 stocks in the Nasdaq Composite are overbought while 114 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently little changed at 13.48 from last week's close of 12.82

Stocks Trending in the News

Click name for Q-Factor rating and financials data.

Global Consumer Stocks Trending in the News

  • Aston Martin (LSE: AML) shares traded lower after Deutsche Bank cut its recommendation for the luxury carmaker from buy to hold. Deutsche Bank also slashed its price target for Aston Martin by 50% to 1,000p/share. In a note to clients, Deutsche Bank analyst Tim Rokossa explained, “We expect global automotive market volatility and Brexit-related uncertainty to depress customer demand from here.” Aston Martin is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Bayerische Motoren Werke AG (DB: BMW) shares slipped after the luxury car manufacturer warned investors that it may face a charge of more than 1bn euros (USD$1.1bn) from a European Union probe alleging of collusion between German auto manufacturers to delay the rollout of cleaner emission vehicles. BMW’s profit margin could slide to as low as 4.5% as a result of the potential charge. Shares of rivals Daimler AG (XTRA: DAI) and Volkswagen AG (XTRA: VOW3) also fell on the news. BMW is rated “Top Short” in our European Large-Cap Global Top Stock Ideas. Daimler is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas. Volkswagen is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Boston Beer (SAM) shares tumbled by the most in more than 6 months after Goldman Sachs downgraded the stock from neutral to sell. Goldman Sachs also slashed its price target for Boston Beer from USD$270/share to USD$245/share, implying a 7% downside as of Thursday’s close. Goldman explained that Boston Beer’s sales growth will likely deaccelerate as the company’s Twisted Tea brand observes slower growth. Boston Beer is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Staples Global Top Stock Ideas.
  • Chipotle (CMG) published a statement saying none of its restaurants are implicated in the latest E. coli outbreak.   The statement was in response to the federal officials’ investigation of a multi-state outbreak of E. coli.  Officials said no specific focus exists yet and Chipotle said they have not been contacted by officials.  Chipotle is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Dollar Tree (DLTR) shares fell after Loop Capital downgraded the stock from buy to hold citing that the discount retail store chain is no longer likely to sell its Family Dollar unit. Loop Capital also said that private equity firm Starboard will no longer be pushing for additional board seats at the company. Dollar Tree is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Lyft (LYFT) is accusing Morgan Stanley (MS) of marketing products to help pre-IPO investors bet against the stock.  Lyft sent a letter to Morgan Stanley making the allegation and threatening a lawsuit if not.  Lyft asked Morgan Stanley to stop marketing those products if it is, in fact, doing so.  The investors being marketed too are subject to lock-up agreements, prohibiting sales of their shares.  Lyft is not yet rated in our Global Top Stock Ideas.  Morgan Stanley is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Starbucks (SBUX) was downgraded to neutral from buy at UBS.  Starbucks’ saw its price target hiked to $78 from $72, the average price target in the market is $71.  The rating cut is due to UBS’ belief that the risk/reward situation is balanced at this time.  The hike in the price target is due to the previously announced $2 billion share repurchase program.  Starbucks 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.  
  • Tesla (TSLA) had its delivery estimate and target lowered at Morgan Stanley today.  Telsa’s target was cut to $240 from $260.  Tesla is now expected to deliver 344,000 cars in total in 2019, down from 362,000 originally expected.  Morgan Stanley expects the 45% drop in Model X + S sees recently to continue through 2019.  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.  
  • Wynn Resorts (WYNN) shares edged higher following reports from AFR’s Street Talk column that Crown Resorts (ASX: CWN) recently rebuffed a confidential takeover offer from Wynn. Citing unfamiliar people with the matter, the report alleges that Crown Resorts initially called UBS bankers before finalizing a decision to rebuff the offer. Since the initial offer, Crown Resorts has named Goldman Sachs as a joint advisor to the company. Wynn Resorts is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas. Crown Resorts is rated “Neutral” in our Australia Large-Cap Global Top Stock Ideas.

Global Information Technology and Communication Services Stocks Trending in the News

  • Facebook (FB) and other social media executives could be held personally liable for harmful content on their platforms in the UK, according to a report from Bloomberg.  Legislation may be presented as early as Monday with those provisions, the report notes.  UK ministers are unhappy with the rate of progress on self-regulation and are ready to craft government regulations for the space.  The recent massacre in New Zealand and the use of the Facebook platform before and during that incident gave new impetus for the regulations.  Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Intel (INTC) was downgraded to market perform from outperform at Wells Fargo Securities.  Intel’s price target was raised to $60 from $55.  Wells writes that the downgrade “reflects a more cautious view on the current semi demand and data points” with the close of the first quarter.  Wells is cautious about 2H19 demand with the potential for further weakness, seeing downside to its current expectations.  Intel is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Micron (MU) was downgraded market perform from outperform at Cowen.  Micron’s price target was cut to $45 from $46.  Cowen wrote in a note that Micron’s earnings are likely to fall this coming year and that is “a stark contrast to what is expected by most investors.”  Cowen highlighted the weak DRAM market and its expectation that it will stay weaker for longer than expected.  Micron is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Snap Inc. (SNAP) shares extended their rally Monday as shares are trading at their highest since August 2018 following an upgrade from RBC Capital Markets. RBC upgraded Snap Inc. shares from neutral to outperform, citing product innovation and a potential return to growth in daily active users. Snap Inc. Is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.
  • Taiwan Semiconductor Manufacturing Company (TSEC: 2330) shares traded notably higher after DigiTimes reported that the company completed design infrastructure that will allow clients like Apple Inc. (AAPL) to work on chip designs using the 5nm process. With a logic density 1.8x that of current generation chips, the new 5nm process will deliver sizeable gain in both speed and power efficiency. Apple is expected to use the new 5nm process in its 2020 iPhone production. Taiwan Semiconductor Manufacturing Company is not rated in our Global Top Stock Ideas. Apple is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Versum Materials (VSM) has agreed to accept the Merck KGaA’s (DB:MRK) offer of $48 a share, an offer that had recently been increased.    Merck’s offer totals $5.8 billion for Versum.    Merck is seeking to beef up its performance materials division which today is the smallest of its three units.  Versum Materials is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  Merck KGaA Materials is rated “Neutral” in our European Large-Cap Global Top Stock Ideas
  • Zillow Group (ZG) shares traded slightly higher after Cowen upgraded the stock from market perform to outperform, becoming the only Wall Street house to rate the stock a buy. Cowen also increased Zillow Group’s price target from USD$40/share to a Street-high USD$46/share target. Cowen explained in a note to clients that Zillow’s internet and technology unit, “has enduring value,” and that, “management has a cogent plan, experienced personnel, and ample capital to deploy.” Zillow Group is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Boeing (BA) announced it is cutting 737 Max production as the plane remains grounded.  Boeing will cut production by 19% to around 42 planes per month as it cuts 737 production.  Boeing is attempting to restore confidence in the 737 Max in the wake of the initial investigation report indicating a sensor in the 737 Max was likely the cause of the accident.  Boeing is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas
  • General Electric (GE) saw a key analyst at JP Morgan turn bearish on the stock, cutting its rating to underweight from neutral.  JP Morgan cut its GE price target to $5, the lowest on The Street.  General Electric got a significant boost in December when JP Morgan upgraded the stock to neutral.   Since then, JP Morgan has turned negative on a number of divisions of GE, leading to the downgrade.  General Electric is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas
  • Triumph Group (TGI) announced it hired bankers to help it filed alternatives for its Aerospace Structures business unit.  The announcement comes at the end of a 3-year restructuring effort.  Triumph could reap $00-500 million in a sale, according to analysts.  Triumph has limited potential buyers for the asset.  Triumph  is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas and “Top Short” in our US Industrials Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • JP Morgan (JPM) CEO Jamie Dimon commented on banks’ potentially limited ability to help during the next crisis situation.  He commented in his letter to shareholders that new regulations and liquidity requirements will not allow banks to respond as they did during the crisis.  JP Morgan is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Moelis & Co. (MC) shares slid after Morgan Stanley cut its CY1Q2019 profit forecast for the company and cut its price target to a Street low. Morgan Stanley now sees EPS of USD$0.18 in FY1Q2019, a reduction of 76.32% from the prior forecast of USD$0.76. Analysts currently maintain a consensus EPS forecast of USD$0.43. Morgan Stanley also cut its price target for Moelis & Co. To USD$45/share from USD$46/share while the consensus price target for Moelis & Co. Is USD$50/share. Moelis & Co. is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.
  • Societe Generale SA (ENXTPA: GLE) shares edged lower after the company announced plans to cut up to 700 jobs in Paris and to eliminate 100s more at its London and New York locations. The slew of job cuts at Societe Generale comes after the firm’s investment bank observed a difficult CY1Q2019. Societe Generale is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • TradeWeb Markets (TW) placed its IPO and started trading Thursday.  Shares were priced at $27 and the shares opened the day 27% higher at $34.26.  TradeWeb sold 40 million shares raising $1.1 billion in the sale and twice increased the size of the offering due to demand.  The IPO values TradeWed at $7.9 billion.  TradeWeb is not yet rated in our Global Top Stock Ideas.

Global Healthcare Stocks Trending in the News

  • SanBio Co. (TSE: 4592) shares traded higher by double-digits after the company announced its SB623 regenerative cell therapy for injury related to brain trauma received Sakigake fast-track designation. With the newly acquired fast-track designation, SanBio will priority consultation and review for its treatment for manufacturing and marketing approval from the Pharmaceuticals and Medical Devices Agency in Japan. SanBio is not rated in our Global Top Stock Ideas.

 

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US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 1.03 basis points to 2.34%
  • US 5-Year Treasury Bonds are lower with yields up 1.52 basis points to 2.32%
  • US 10-Year Treasury Bonds are lower with yields up 1.96 basis points to 2.51%
  • The US Treasury 2s-5s Spread has widened 0.49 basis points to -0.03%
  • The US Treasury 2s-10s Spread has widened 0.93 basis points to 0.17%
  • US Treasury 5s-10s Spread has widened 0.44 basis points to 0.19%

Currencies

  • EUR€ is currently up 0.401% against the USD$ to 1.1261
  • GBP£ is currently little changed against the USD$ at 1.3046
  • CHF is currently little changed against the USD$ at 1.0005
  • JPY¥ is currently down 0.233% against the USD$ to 111.47

Commodities

  • WTI Crude is currently up 1.78% to USD$64.2/bbl with the Brent-WTI spread down USD$-0.54 to USD$6.63/bbl
  • Gold is currently up 0.46% to USD$1297.76/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
Symantec Corp Information Technology 19.7 6.66%            1,662,639
PG&E Corp Utilities 6.95 2.89%                350,594
Schlumberger Ltd Energy 41.6 2.60%                848,842
Wynn Resorts Ltd Consumer Discretionary 108 2.13%                467,140
Brighthouse Financial Inc Financials 34.2 2.12%                182,164
 
Underperformers Sector Price 1D % Chg Volume
General Electric Co Industrials 8.72 -7.24%          10,345,710
Boeing Co/The Industrials 352 -4.46%                959,558
Dollar Tree Inc Consumer Discretionary 96.1 -3.10%                422,078
Celanese Corp Materials 93.9 -3.00%                  96,212
Regeneron Pharmaceuticals Inc Health Care 405 -2.77%                  77,248
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