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Oil roars like a lion midday while stocks just lounge like a kitty cat; US confirms effort to push Iranian oil exports to zero

Apr 22, 2019

 

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Market data as of 12:15pm EST

US Market Snapshot

  • US stocks are flat midday with thin volume as oil rallies 3% on news of US moves against Iranian oil exports
  • The US has formally announced the end of all waivers for Iranian oil exports when they expire May 2nd in its effort to drive exports to zero, exerting further upward pressure on the price of oil 
  • The S&P 500 is currently up 0.02%, Nasdaq Composite is up 0.01%, and Russell 2000 is down 0.48%
  • 155 companies of the S&P 500, or 31% of the index, as well as 40% of the Dow Jones Industrial Average, will report earnings this week
  • US existing home sales for March fell 4.9% in March, coming worse than the 3.8% drop expected, and well below the 11.8% rise that posted in February  
  • Our CIO on CNBCLet's Trade Earnings! Our CIO discusses trading Facebook and Amazon earnings on CNBC's "Trading Nation" 
  • We know investors are SMART: "Dumb Money" is not so Dumb, a New Study of Vanguard Clients Finds
  • A quick first quarter earnings update, so far: S&P 500 Communication Services Stocks Post Strong Earnings While Energy Stocks Lag
  • European markets are closed for the Easter holiday today
  • Energy (+2.1%), Telecom (+0.32%), and Tech (+0.08%) stocks are the top performers in the S&P 500 today
  • Healthcare (-0.39%), Materials (-0.45%), and Real Estate (-1.91%) 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 0.61x
  • 106 stocks in the S&P500 are at 4-week highs while 58 stocks are at 4-week lows
  • 81 stocks in the S&P 500 are overbought while 16 stocks are oversold according to the 16-day RSI Measure
  • 129 stocks in the Nasdaq Composite are at 4-week highs while 113 stocks are at 4-week lows
  • 254 stocks in the Nasdaq Composite are overbought while 414 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving up at 13.21 from last week's close of 12.09

Stocks Trending in the News

 

Click name for Q-Factor rating and financials data.

Global Consumer Stocks Trending in the News

  • Bed, Bath & Beyond (BBBY) announced changes to its board meant to appease activist investors that have been insisting on changes.  5 new independent members will join Bed, Bath & Beyond’s board with 5 currents members leaving.  Among those leaving are its co-founders and co-chairmen.  Its board will now contain 10 members, 9 of which are independent and 6 of which are women.  Bed, Bath & Beyond has been talking with the activist investors clamoring for change and expects these moves to satisfy their demands.  Bed, Bath & Beyond is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Kimberley-Clark (KMB) reported first quarter adjusted that beat expectations.  Kimberley-Clark reported first quarter EPS of $1.66 beating $1.54 consensus.  First quarter net sales of $4.63 billion also beat consensus of $4.53 billion.  Kimberley-Clark saw first quarter organic revenue growth of 3%.  Kimberley-Clark said it attained $115 million in cost savings in the quarter and returned $510 million to shareholders.  Kimberley-Clark provided EPS guidance for 2019 of $6.50 to $6.70, in line with consensus of $6.62.  Kimberley-Clark is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
  • Kroger (KR) has continued to struggle in adapting to the new grocery delivery dynamics of its sector, according to a WSJ report highlighting its challenges.  Kroger is known as a very conservative company and critics say this has severely limited its ability to adapt to the new supermarket environment.  Kroger has taken a long time to come up with a new approach as the landscape changes drastically.   Kroger’s CEO admitted, “There’s no doubt we were behind.”  Kroger believes it now has a plan to succeed.  Kroger is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.
  • Mattel (MAT) shares edged lower after Bronte Capital issued a short report for the stock that cited “seemingly dysfunctional management,” and the recall of the Rock ‘n Play sleeper due to infant deaths. Bronte Capital founder John Hempton also explained that the company’s high levels of debt will make it had to take on risks such as new products or talent. Mattel is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Rent-A-Center (RCII) shares jumped by double-digits and traded at their highest level since 2015 after the company announced it will receive a $92.5 million settlement payment from Vintage Capital and B. Riley (RILY) regarding litigation. Raymond James upgraded shares of Rent-A-Center from strong buy to outperform on the news while hiking its price target from $25/share to $27/share. Rent-A-Center is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas. B. Riley is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas.
  • Sketchers (SKX) provided second quarter guidance that was well below consensus.  Sketchers expects second quarter EPS in the range of 30-35 cents while present consensus is 38 cents.  First quarter results came in line with EPS of 71 cents and revenue of $1.28 billion.  Same store sales grew 0.7% at company owned stores.  Sketchers is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Tesla (TSLA) has scheduled a presentation for investors and the press to show off its driverless car technology.  The event, curiously, is 2 days before Tesla is expected to report a quarterly loss.  Tesla was initially expected to report a gain, but difficulty in delivering cars overseas has caused the company problems.  Critics complain the event is simply a way to distract investors.  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

  • Samsung (KOSE:A005930) has abruptly canceled 2 Galaxy Fold prelaunch events.  The events were in Hong Kong and mainland China and come in the wake of malfunctioning Galaxy Fold models. A tech reporter from the WSJ posted photos on social media of a broken and peeling screen and that was followed by other pre-launch models breaking under testing.  Despite the cancellation, Samsung is reportedly sticking to the launch of the new phone in the US this Friday.  Samsung is the largest maker of cell phones in the world.  Samsung is not rated in our Global Top Stock Ideas.
  • Sprint’s (S) litigation against AT&T’s (T) “5G Evolution” ads will get its first hearing today and tomorrow with a ruling to follow shortly thereafter.  Sprint alleges AT&T’s use of the “5GE” symbol and ads is deceptive since the service does not meet international 5G standards.  The service is actually an enhanced 4G service, according to Sprint, and AT&T should stop deceiving customers because 5G service has still to be rolled out nationally.  Sprint is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.  AT&T is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  

Global Financial Stocks Trending in the News

  • Ally Financial (ALLY) reported first quarter earnings and revenue ahead of consensus.  First quarter EPS of 80 cents beat consensus of 78 cents.  Ally first quarter revenue of $1.6 billion beat $1.58 billion consensus.  Ally net interest margin in the first quarter was 2.67%, while return on equity was 11.1%.  Ally Financial is rated “Attractive” in our US Large-Cap Global Top Stock Ideas. 
  • Wells Fargo (WFC) will be holding its annual meeting this week and investors were hoping for some news on efforts to revive its performance.  The exit of its CEO makes any news on that subject to be very unlikely.  Since the exit of the CEO, the bank and has rescinded guidance on expenses and regulatory relief, further clouding the way forward for investors.  Wells Fargo is rated “Neutral” in our US Large-Cap Global Top Stock Ideas

Global Industrial Stocks Trending in the News

  • Grainger (GWW) reported first quarter earnings ahead of expectations.  First quarter EPS of $4.51 beat $4.44 consensus.  Revenue in the first quarter of $2.80 billion trailed the $2.88 billion consensus.  Grainger provided sales growth guidance for 2019 of 4-8%.  Grainger is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas
  • Jacobs Engineering Group Inc. (JEC) announced that it’s agreed to acquire cybersecurity firm KeyW Holding Corp. (KEYW) for $603 million. The acquisition will increase the number of Jacobs Engineering Group with top-secret government access by 50%. Although neither company is a household name, both have deep ties to Washinton’s cybersecurity and cyberintelligence specialists. The acquisition represents a substantial premium for KeyW Holding Corp., which had a market value of $393.4 million as of Thursday’s close. Jacobs Engineering is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas. KeyW Holding Corp. is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Lennox International (LII) reported first quarter earnings that beat and guidance that matched consensus.  First quarter adjusted EPS from continuing operations of $1.68 came ahead of $1.48 consensus.  First quarter sales of $790.3 million beat $749.6 million consensus.  Lennox provided 2019 EPS of $12.00 to $12.60, while consensus is $12.32.  Lennox International is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas
  • Snap-On (SNA) first quarter earnings beat consensus, with adjusted EPS of $3.01 beating $2.90 consensus.  Snap-On first quarter revenue of $921.7 million trailed $933.3 million consensus.  Snap-On’s CEO said they see “continuing improvements in our US franchise network.”  Snap-On is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas

Global Commodity & Power Stocks Trending in the News

  • Halliburton (HAL) reported first quarter results that beat consensus.  Halliburton reported first quarter revenue of $5.74 billion, ahead of $5.52 billion consensus.  Operating income for the first quarter came at $426 million beating consensus of $415 million.  Halliburton EPS from continuing operations was 17 cents.  Revenue was higher than expected in all regions Halliburton operates.  Halliburton is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Steel Dynamics (STLD) shares edged lower despite positive comments made by CEO Mark Millett on the firm’s first quarter earnings call. Millett told analysts, “We believe North American steel consumption will continue to see a steady increase.” Steel Dynamics reported first quarter sales and earnings that met analyst expectations. Steel Dynamics is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.

Global Health Care Stocks Trending in the News

  • Intuitive Surgical (ISRG) shares slipped lower after the company reported mixed first quarter results, prompting several analysts to trim their price targets for the stock. Intuitive Surgical reported adjusted EPS of $2.61, slightly missing analyst expectations for earnings of $2.70/share. Intuitive Surgical also reported a revenue miss for its first quarter with total sales of $973.7 million compared to expectations of $975.3 million. Intuitive Surgical is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Medidata Solutions Inc. (MDSO) shares soared by double-digits following reports that French-based Dassault Systemes SE (ENXTPA: DSY) is seeking to acquire a US company. The reports indicate that Dassault is considering Medidata Solutions for the acquisition among other potential targets. The acquisition would bolster Dassault’s science division. Medidata Solutions is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas. Dassault Systemes is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.

 

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US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 0.43 basis points to 2.38%
  • US 5-Year Treasury Bonds are lower with yields up 1.2 basis points to 2.38%
  • US 10-Year Treasury Bonds are lower with yields up 2.35 basis points to 2.58%
  • The US Treasury 2s-5s Spread has widened 0.77 basis points to 0%
  • The US Treasury 2s-10s Spread has widened 1.92 basis points to 0.2%
  • US Treasury 5s-10s Spread has widened 1.15 basis points to 0.2%

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1261
  • GBP£ is currently little changed against the USD$ at 1.2984
  • CHF is currently little changed against the USD$ at 0.9848
  • JPY¥ is currently little changed against the USD$ at 111.93

Commodities

  • WTI Crude is currently up 2.84% to USD$65.82/bbl with the Brent-WTI spread up USD$0.37 to USD$7.92/bbl
  • Gold is currently little changed -0.08% to USD$1274.49/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
Kimberly-Clark Corp Consumer Staples 117 5.71%                515,055
Marathon Oil Corp Energy 15.8 5.39%            1,103,918
Devon Energy Corp Energy 26.4 3.87%                508,601
Diamondback Energy Inc Energy 105 3.58%                217,894
Netflix Inc Communication Services 354 3.28%            1,596,904
 
Underperformers Sector Price 1D % Chg Volume
Intuitive Surgical Inc Health Care 515 -7.54%                505,931
WW Grainger Inc Industrials 293 -4.50%                  49,917
Mattel Inc Consumer Discretionary 12.6 -3.56%            1,197,960
Weyerhaeuser Co Real Estate 24.1 -3.19%                316,077
Macerich Co/The Real Estate 45.7 -3.18%                  50,080
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