blog

Latest from the Quantamize Blog

Goldman & Citi, thanks for nothin'! Weak results from pair throw wet towel on sentiment, sending stocks lower today

Apr 15, 2019

 

Better Research, Better Investments.Better Research, Better Investments.
Better Research, Better Investments.Better Research, Better Investments.

US Markets End of Day Snapshot

  • US stocks were not able to move much today, with less-than-stellar bank results pre-market dampening sentiment today
  • The S&P 500 finished down 0.06%, Nasdaq Composite is down 0.1%, and Russell 2000 is down 0.36%
  • Oil was lower today after a report showed an increase in the active rig count
  • 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. 
  • Check out ETFs you need to ownThe Top ETF Ideas for the Week You Need: Momentum Stocks and Small-Caps Stand Out
  • 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
  • We look at Value Stocks in today's Data Daily Macro Monday: Comparing Key Data Points of US Value Stocks
  • 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
  • Consumer Staples (+0.69%), Healthcare (+0.34%), and Consumer Discretionary (+0.21%) stocks were the top performers in the S&P 500 today
  • Energy (-0.57%), Real Estate (-0.6%), and Financials (-0.62%) stocks were the worst performers in the S&P 500 today
  • Investor sentiment for US stocks finished negative with the advance/decline ratio for the S&P 500 closing at 0.65x
  • 195 stocks in the S&P 500 hit 4-week highs while 21 stocks reached 4-week lows
  • 96 stocks in the S&P 500 closed overbought while 4 stocks closed oversold according to the 16-day RSI Measure
  • 149 stocks in the Nasdaq Composite hit 4-week highs while 68 stocks reached 4-week lows
  • 432 stocks in the Nasdaq Composite closed overbought while 220 stocks closed oversold according to the 16-day RSI Measure
  • The VIX finished flat at 12.95 after closing at 12.01 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials 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

  • YouTube, part of Alphabet’s (GOOGL) Google unit, mistakenly labeled live streaming video of the Notre Dame Cathedral fire with a text box as it were footage of the 9/11 attack.  YouTube algorithms assign text boxes to some video clips on YouTube and the machines made a mistake with the Cathedral fire.  YouTube introduced these text boxes in an effort to dispel conspiracy theories related to many things, including 9/11.  Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • 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

  • Charles Schwab (SCHW) reported first quarter EPS of 69 cents beating 66 cents consensus.  First quarter revenue of $2.72 billion beat consensus of $2.68 billion.  Charles Schwab reported a return on equity in the first quarter of 20%.  Charles Schwab has 3.59 trillion client assets in accounts, 11.8 million active brokerage accounts with 418k revenue trades per day.  Charles Schwab is rated “Attractive” in our US Large-Cap Global Top Stock Ideas
  • 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
  • JB Hunt (JBHT) reported first quarter EPS of $1.09 matching consensus.  JB Hunt first quarter revenue of $2.09 billion trailing consensus of $2.2 billion.  JB Hunt operating income of $169 million was flat year-on-year due to a number of higher costs.  JB Hunt is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” 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
  • HCA (HCA) could suffer after Jefferies warned on the name.  “Investors should be a bit more cautious around HCA from here and through 2020,” Jefferies wrote in a note to clients.  The comments were made after seeing HCA run 33% over the last 33%, the best performer in the sector.  HCA is among the most owned hospital stocks and with the growing talk of a single-payer system they could see weakness near-term.  HCA is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
 
Actionable and Transparent Quantitative ResearchActionable and Transparent Quantitative Research
Actionable and Transparent Quantitative ResearchActionable and Transparent Quantitative Research

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -0.19 basis points to 2.38%
  • US 5-Year Treasury Bonds are higher with yields down -1.17 basis points to 2.36%
  • US 10-Year Treasury Bonds are higher with yields down -1.26 basis points to 2.55%
  • The US Treasury 2s-5s Spread has narrowed 0.98 basis points to -0.02%
  • The US Treasury 2s-10s Spread has narrowed 1.07 basis points to 0.16%
  • US Treasury 5s-10s Spread has narrowed 0.09 basis points to 0.18%

Currencies

  • EUR€ is little changed 0.035% against the USD$ in after hours to 1.1303
  • GBP£ is up 0.161% against the USD$ in after hours to 1.3095
  • CHF is down 0.16% against the USD$ in after hours to 0.9959
  • JPY¥ is little changed 0.009% against the USD$ in after hours to 112.03

Commodities

  • WTI Crude is down -0.77% to USD$63.4/bbl with the Brent-WTI spread up USD$0.56 to USD$7.49/bbl
  • Gold is little changed -0.19% to USD$1287.96/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

 

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
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

On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
Anthem Inc Health Care 260 3.97%                792,331
UnitedHealth Group Inc Health Care 256 3.13%            1,986,179
PG&E Corp Utilities 6.95 2.77%            4,781,924
Fortinet Inc Information Technology 74.6 2.71%                752,360
CVS Health Corp Health Care 63.8 2.67%            2,748,887
 
Underformers Sector Price 1D % Chg Volume
Alliance Data Systems Corp Information Technology 168 -9.34%                126,577
Nektar Therapeutics Health Care 44.5 -4.72%                571,483
Electronic Arts Inc Communication Services 89.5 -3.91%            1,173,906
Goldman Sachs Group Inc/The Financials 180 -3.82%                459,278
HollyFrontier Corp Communication Services 52.9 -3.50%                466,301
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY