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Poor quarterly financials from banks drag US stocks lower midday, halting 3-day advance

Apr 15, 2019

 

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Market data as of 12:00 PM

US Market Snapshot

  • US Stocks paused their three-day advance as disappointing financial results from Goldman Sachs (GS) and Citigroup (C) dragged the S&P 500 below 2,900, a level that was reached last week for the first time in 6 months. 
  • The S&P 500 is currently down 0.24%, Nasdaq Composite is down 0.36%, and Russell 2000 is down 0.15%
  • The US Empire State Manufacturing Index rebounded 6.4 points in April to 10.1, erasing the index's 5.1 point drop in March. A year ago this time, the US Empire State Manufacturing Index was at 17.9. 
  • China is considering shifting some agricultural tariffs to other items to allow President Trump to claim help for farmers ahead of the 2020 elections; part or all of the tariffs on $50 billion in US goods that were retaliatory could be changed, according to Bloomberg
  • The EU voted today to start trade talks with the US in an effort to eliminate industrial goods tariffs
  • President Trump renewed his attacks on the Federal Reserve this weekend, saying the stock market would be "5,000 or 10,000 points higher" if the Fed had not raised interest rates
  • Oil futures are sliding about 1% today after gaining 1.3% last week to mark 6 straight weeks of gains, the longest streak of weekly gains for oil futures in 3 years. Oil is falling today following a report that shows an uptick in US oil-rig activity
  • Energy (-0.44%), Materials (-0.33%), and Telecom (-0.32%) stocks are the top performers in the S&P 500 today
  • Consumer Discretionary (-0.11%), Financials (-0.66%), and Tech (-0.26%) 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 0.58x
  • 195 stocks in the S&P500 are at 4-week highs while 21 stocks are at 4-week lows
  • 96 stocks in the S&P 500 are overbought while 4 stocks are oversold according to the 16-day RSI Measure
  • 149 stocks in the Nasdaq Composite are at 4-week highs while 68 stocks are at 4-week lows
  • 432 stocks in the Nasdaq Composite are overbought while 220 stocks are oversold according to the 16-day RSI Measure 
  • The VIX is currently moving higher at 12.95 from yesterday's close of 12.01

Stocks Trending in the News

Click name for Q-Factor breakdown, latest price details, more financial info and sentiment data.

Global Consumer Stocks Trending in the News

  • Compass Group Plc (LSE: CPG) shares fell after the stock was downgraded from overweight to equal-weight by Barclays. Barclays analyst Vicki Stern also lowered her price target for Compass Group from 18.50 pounds/share to 17.70 pounds/share, implying a 3.2% premium from its last closing price. Compass currently maintains 10 buy recommendations, 12 hold recommendations, and 2 sell recommendations across Street forecasts. Compass Group is rated “Attractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Jumia Technologies (JMIA) debuted Friday and rose 54%.  Jumia is called the Amazon (AMZN) of Africa though is based in Berlin.  Jumia is a 7-year old online retailer that raised $196 million in its IPO.  Jumia has 4 million customers in 14 countries and hopes to expand aggressively post-IPO.  Jumia is not rated on our Global Top Stock Ideas.
  • Tesla (TSLA) CEO Elon Musk tweeted another production forecast while he is in the middle of negotiation with the SEC over his tweeting of relevant company information.  Musk tweeted that Tesla will produce 500,000 cars over the next 12 months,  2 months ago a similar tweet started his problems with the SEC.  Analysts have commented he chose a strange time to tweet this information out given his ongoing talks with the SEC.  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 Stocks Trending in the News

  • Publicis Groupe (ENXTPA:PUB) Is acquiring Alliance Data System’s (ADS) Epsilon unit for $4.4 billion.  Epsilon is said to add 13% to Publicis’ earnings in the first year.  Epsilon is focusing on data management, identity resolution on loyalty programs.  Publicis expects to see $60 million in cost savings by 2022.  Publicis expects to expand the reach of Epsilon upon its acquisition.  Publicis Groupe is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.  Alliance Data Systems is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Walt Disney (DIS) announced that its new streaming service will launch November 12th with a $7 monthly cost, a bet that it can undermine Netflix will a considerably cheaper charge.  Netflix’s most popular plan costs $11.  Disney’s service will be full of its original movies, plus content from its Star Wars, Marvel and Pixar franchises.  Disney expects the service to break even within 5 years.  Wal Disney is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.

Global Financial Stocks Trending in the News

  • Citigroup Inc. (C) shares slumped after announcing quarterly financials that disappointed investors. Citigroup reported little-changed revenue from its global consumer bank while the number of open accounts for Citigroup’s US retail banking division remained stagnant. Average deposits for Citigroup’s US retail banking division rose just 1% in its most recent quarter. Citigroup is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Goldman Sachs (GS) reported first quarter results that beat expectations, with investment banking coming better and trading trailing a bit.  First quarter EPS of $5.71 handily beat $4.97 consensus.  Net income of $2.25 billion came in line while revenue for the quarter fell 13% to $8.81 billion.  Investment banking revenue of $1.84 billion came above the $1.7 billion expected.  Fixed income trading revenue of 1.84 billion beat the $1.78 billion expected.  Stock trading revenue of $1.77 billion trailed the $1.83 billion expected.  Goldman increased its quarterly dividend to 85 cents per share, up from 80 cents.  Goldman Sachs is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • American Airline (AAL) has joined Southwest Airline (LUV) in canceling its 737 Max flights into the summer.  American canceled all flights with the 737 Max until August 19th.  The 2 airlines are canceling 275 flights per day until mid-August.  Southwest Airlines operates the largest 737 fleet in the US with American the second largest.  Airlines had hoped for a quick return of the jet but now they are anticipating being without it for most of the summer.  American Airlines is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.  Southwest Airline is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas
  • Lyft Inc. (LYFT) shares continued their decline today as the stock is trading roughly 22% below its IPO price and short bets continue to pile up. Investors continue to have doubts about Lyft’s ability to grow market shares against rival Uber (UBER), who is set to go public in May. According to data from financial analytics firm S3 Partners LLC, 75% of the free float Lyft shares are held short. Lyft Inc. Is not yet rated in our Global Top Stock Ideas.
  • Suzuki Motor Corp. (TSE: 7269) shares fell by the most in almost 6 months after the car and motorcycle manufacturer announced it will incur an extraordinary loss of 80bn yen (USD$714mm) for the most recent quarter related to improper auto-inspection procedures. Suzuki shares dipped as much as 8.7%, although the stock pared its losses to close about 2.3% lower. According to Suzuki, the carmaker discovered in August that roughly half of its automobiles in sampling tests did not comply with national standards. Suzuki is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.
  • Waste Management (WM) is nearing a deal to buy its rival Advanced Disposal Service (ADSW) in a $2.9 billion deal, according to the WSJ.  It is being reported that Waste Management will pay $33.15 per share for its rival, paying a 22.1% premium to Friday’s close. Including debt, the deal is worth about $5 billion.  Waste Management is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.  Advanced Disposal Service is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.  

Global Commodities & Power Stocks Trending in the News

  • Nyrstar NV (ENXTBR: NYR) shares lost more than half their value after Trafigura Group Ltd. announced a deal that will see it take control of Europea’s largest zinc smelter through a debt restructuring. As a part of the deal, Trafigura, Nyrstar’s main shareholder, top supplier, customer, and financier, will offer a package of its own debt securities to creditors in exchange for writing off debt. Nyrstar is not rated in our Global Top Stock Ideas.

Global Health Care Stocks Trending in the News

  • CVS Health (CVS) is attractive and it is time to buy, according to Barron’s.  Barron’s says despite the recent weakness in the stock, CVS’ assets leave it well-positioned for a future when consumers have more control over their own healthcare decisions.  CVS Healthcare is rated “Neutral” 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 0.22 basis points to 2.3936%
  • US 5-Year Treasury Bonds are higher with yields down -1 basis points to 2.3702%
  • US 10-Year Treasury Bonds are higher with yields down -1.62 basis points to 2.5489%
  • The US Treasury 2s-5s Spread has narrowed 1.22 basis points to -0.02%
  • The US Treasury 2s-10s Spread has narrowed 1.84 basis points to 0.16%
  • US Treasury 5s-10s Spread has narrowed 0.62 basis points to 0.18%

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1305
  • GBP£ is currently up 0.245% against the USD$ to 1.3106
  • CHF is currently little changed against the USD$ at 0.9964
  • JPY¥ is currently little changed against the USD$ at 112

Commodities

  • WTI Crude is currently down -1.19% to USD$63.13/bbl with the Brent-WTI spread up USD$0.74 to USD$7.59/bbl
  • Gold is currently little changed -0.08% to USD$1289.34/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

On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
National Oilwell Varco Inc Energy 29.285 3.65% 517,622
Anthem Inc Health Care 260.08 3.48% 123,948
CVS Health Corp Health Care 63.845 2.92% 1,227,585
Fortinet Inc Information Technology 74.58 2.46% 352,324
Waste Management Inc Industrials 93.7 2.31%                320,008
 
Underperformers Sector Price 1D % Chg Volume
Alliance Data Systems Corp Information Technology 167.78 -10.13% 126,577
Electronic Arts Inc Communication Services 89.48 -3.87% 413,164
Nektar Therapeutics Health Care 44.52 -3.19% 173,277
Goldman Sachs Group Inc/The Financials 179.58 -3.06% 459,278
NVIDIA Corp Information Technology 149.54 -2.96% 1,322,275

 

 

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