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Hurt Feelings: Weak sentiment data snaps European stocks 8-day winning streak

Apr 24, 2019

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scroll down for the Asian markets recap

International Stock Markets Indexes

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

European Markets Recap

  • Confidence in both the German and French economies fell; in Germany, it fell despite expectations for a slight improvement while in France confidence in manufacturing fell to a 4-year low
  • In Germany the IFO Business Climate survery dropped to 99.2 in April while it was expected to rise to 99.9
  • In France the Manufacturing Confidence index fell to 101 in April while expected to stay unchanged at 102
  • Fear?  What Fear?: Like Cookie Monster with Chips Ahoy, Investors Gobble up Risk; VIX collapse since December one of quickest ever
  • Check out our newest Stock Model Portfolio: LET'S GET HIGH-High PERFORMANCE, of course!-with our new MARIJUANA POT-FOLIO Stock Model Portfolio!
  • Welcome to Silicon Valley: Golden State to Tax Golden Goose? "IPO Tax" to Address Income Inequality and Affordable Housing Shortfall floated in San Francisco
  • The Euro Stoxx 600 closed down -0.09%, the FTSE 100 declined -0.68%, the DAX rose +0.63%, and the CAC 40 finished down -0.28%
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.74x
  • Technology (+4.08%), Real Estate (+1.81%), and Construction & Materials (+0.64%) stocks were the top performers in the Euro Stoxx 600 today
  • Telecommunications (-1.18%), Oil & Gas (-1.77%), and Utilities (-0.27%) stocks were the worst performers in the Euro Stoxx 600 today
  • 148 stocks in the Euro Stoxx 600 hit 4-week highs while 38 stocks closed at 4-week lows
  • 144 stocks in the Euro Stoxx 600 finished the trading session overbought while 1 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed little changed -0.3 points today to 11.91 after closing at 12.2 yesterday
  • EUR€ is currently down -0.623% against the USD$ to 1.1157

Asian Stock Markets Indexes

Asian Markets Recap

  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.18x
  • 25 stocks in the Nikkei 225 hit 4-week highs while 22 stocks reached 4-week lows
  • 8 stocks in the Nikkei 225 closed overbought while 8 stocks closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished negative with the advance/decline ratio for the Hang Seng closing at 0.35x
  • 5 stocks in the Hang Seng hit 4-week highs while 7 stocks reached 4-week lows
  • 1 stock in the Hang Seng closed overbought while 2 stocks closed oversold according to the 16-day RSI Measure

Stocks Trending in the News

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Global Consumer Stocks Trending in the News

  • Domino’s Pizza (DPZ) reported sales growth that trailed consensus.  Domino’s Pizza total system-wide sales grew 3.9%, trailing 4.2% consensus.  Domino’s Pizza first quarter EPS of $2.20 came ahead of $2.09 consensus.  Domino’s Pizza is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
  • E-Bay (EBAY) posted first quarter earnings that beat expectations.  E-Bay first quarter adjusted EPS of 67 cents beat consensus of 63 cents.  Net revenue of $2.64 billion beat $2.58 billion consensus.  E-Bay guidance for second quarter of 61-63 cents, above 59 cents consensus.  E-Bay expects revenue of $2.64 to $2.69 billion in the second quarter.  E-Bay is rated “Attractive” in our US Large-Cap Global Top Stock Ideas

Global Information Technology Stocks Trending in the News

  • AT&T Inc. (T) shares slipped after the company announced first quarter results that contained a larger-than-anticipated loss of US wireless and TV subscribers. AT&T lost 204,000 net wireless subscribers and lost 627,000 TV subscribers in its first quarter compared to analyst expectations for a loss of 50,000 subscribers and 389,000 subscribers, respectively. AT&T curbed its promotional spending in its most recent quarter as it attempts to pay down debt from its takeover of Time Warner.  AT&T’s earnings were in-line with analyst consensus expectations. 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.
  • SAP SE (DB: SAP) shares soared by double-digits after the company raised its FY2019 profit forecast, citing growth in its cloud business. Activist investor Elliott Management also revealed a stake in the German software company and endorsed their change in direction, further driving the double-digit gains. SAP observed a 26% increase in new cloud bookings during the first quarter while Elliott disclosed its 1.2 billion euro stake ($1.3 billion). SAP is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Sirius XM (SIRI) shares fell after reporting first quarter financial results containing revenue and earnings that trailed the average analyst estimate. Sirius XM reported revenue of $1.74 billion in the first quarter compared to $1.75 billion that analysts expected. Sirius XM generated earnings of $0.03/share in the quarter that missed consensus of $0.05/share. Despite the financial misses, Sirius still offered FY2019 revenue and Ebitda guidance that was above consensus estimates. Sirius XM is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • TE Connectivity (TEL) shares traded notably higher after the company announced strong fiscal second quarter results that Cowen analyst Joseph Giordano praised. TE Connectivity reported organic growth of 2% in the quarter compared to broad market declines of 3%. Giordano also said that TE Connectivity’s earnings beat in the fiscal second quarter was, “balanced,” and, “operationally driven,” while noting that the second half of the company’s fiscal year could be more cautious. TE Connectivity is not rated in our Global Top Stock Ideas
  • Texas Instruments (TXN) reported first quarter earnings that beat consensus with guidance in line.  Texas Instruments first quarter EPS if $1.26 beat consensus of $1.13.  First quarter revenue of $3.59 billion beat consensus of $3.48 billion.  Texas Instruments gave second quarter EPS guidance of $1.12 to $1.32 with revenue guidance of $3.46 billion to $3.74 billion, consensus is $3.66 billion.  Texas Instruments is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.  
  • Wirecard (DB:WDI) will get a $1 billion investment from Softbank (TSE:9984).  Softbank is making the investment as it seeks more exposure to the payments sector.  Wirecard will gain access to Asian markets that they  are seeking.  The agreement could see Softbank acquiring up to 5.6% of Wirecard at a price that is 27% below market price.  The agreement involves the use of convertible bonds and could see Softbank as the second largest shareholder behind Wirecard’s founder.  Wirecard is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.  Softbank is rated “Attractive” in our Japan Large-Cap Global Top Stock Ideas   

Global Industrial Stocks Trending in the News

  • Boeing (BA) has suspended guidance in the wake of the grounding of the 737 Max and said it will issue new guidance some time in the future.  Boeing reported first quarter results  with EPS of $3.75.  First quarter revenue was $22.9 billion with operating cash flow of $2.8 billion.  Boeing returned $1.2 billion to shareholders in the quarter.  Boeing’s present backlog is $487 billion.  Boeing said it is, “engaging global regulators and customers on safe return to service of the 737 Max.”  Boeing is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Caterpillar (CAT) beat first quarter profit and sales expectations when it reported first quarter results.  Caterpillar first quarter revenue of $13.5 billion beat $13.4 billion consensus.  Caterpillar reported first quarter EPS of $2.94, ahead of $2.84 consensus.  Caterpillar upped EPS guidance to $12.06 to $13.06 for 2019 from $11.75 to $12.75 previously.  Caterpillar sees modest, consistent growth in 2019 with the greatest demand expected for mining equipment.  The mining demand is due in part to low dealer inventories of this equipment.  Caterpillar is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas
  • General Dynamics (GD) posted first quarter earnings that beat consensus.  General Dynamics first quarter EPS of $2.56 beat consensus of $2.41.  General Dynamics posted first quarter revenue of $9.26 billion handily beat consensus of $8.84 billion.  General Dynamics reported a backlog of $69.21 billion.  General Dynamics is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas
  • Jet Blue (JBLU) reported first quarter adjusted EPS that beat consensus.  Adjusted EPS came at 16 cents while consensus was 12 cents.  Jet Blue operating revenue in the first quarter was $1.87 billion, in line with $1.87 billion consensus.  Jet Blue provided second quarter guidance for available seat miles, seeing that grow 4.5% to 6.5%.  Jet Blue sees revenue per seat mile growing 1% to 4% in the second quarter.  Jet Blue is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.   
  • Norfolk Southern (NSC) first quarter earnings handily beat expectations.  Norfolk Southern first quarter EPS of $2.51 came well above $3.18 consensus.  First quarter railway operating revenue of $2.84 billion came in line with $2.82 consensus.  Norfolk Southern’s operating ratio in the first quarter was 66%.  Norfolk Southern is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas
  • Northrop Grumman (NOC) reported first quarter sales that trailed expectations.  Northrop Grumman first quarter sales of $8.19 billion came just below $8.32 billion consensus.  Boston Scientific first quarter EPS came at $5.06, beating $4.85 consensus.  Northrop Grumman increased full year EPS guidance of $18.90 to $19.10, up from of $18.50 to $19.00.  Northrop Grumman is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Stanley Black & Decker (SWK) reported stronger first quarter adjusted EPS than expected.  Adjusted EPS for the first quarter was $1.42, well above the $1.11 consensus.  Stanley Black & Decker reported first quarter revenue of $3.33 billion, in line with $3.30 billion consensus.  Stanley Black & Decker gave 2019 EPS guidance of $8.50 to $8.70.  Stanley Black & Decker is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas

Global Financials Stocks Trending in the News

  • Berkshire Hathaway Inc. (BRK.A) and CEO Warren Buffett are refuting reports that the company is in talks to buy the bankrupt California utility PG&E Corp. (PCG). Shares of PG&E Corp. initially jumped by as much as 17% in early morning trading following initial reports before retracing gains -- the stock still traded notably higher after the rumors were squashed.  Berkshire Hathaway is not rated in our Global Top Stock Ideas. PG&E Corp. is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • T. Rowe Price Group (TROW) shares edged higher after the company announced first quarter EPS of $1.87 that came notably above analyst consensus of $1.68. T. Rowe also generated revenue of $1.33 billion in the first quarter, slightly above expectations of $1.29 billion. T. Rowe Price ended the first quarter with $1.08 billion of assets under management, a 6.7% increase from the prior quarter. T. Rowe Price is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.

Global Health Care Stocks Trending in the News 

  • Anthem (ANTM) reported first quarter earnings that beat expectations.  Anthem first quarter EPS of $6.03 came ahead of $5.84 consensus.  Anthem first quarter revenue of $24.39 billion, a touch ahead of $24.19 billion consensus.  Anthem first quarter benefit expense ratio was 84.4%.  Anthem raised EPS guidance for the full year to $19.20 to $19.40, up from $19 to $19.30.  Anthem said it expects about $100 billion in operating revenue in 2019.  Anthem is rated “Attractive” in our US Large-Cap Global Top Stock Ideas 
  • Boston Scientific (BSX) reported first quarter earnings that beat expectations.  Boston Scientific first quarter EPS of $0.35 came just below $0.36 consensus.  Boston Scientific first quarter revenue of $2.49 billion, a touch below $2.51 billion consensus.  Boston Scientific provided EPS guidance for the second quarter of $0.35 to $0.37, with full year EPS of $1.54 to $1.58.  Boston Scientific is rated “Neutral” in our US Large-Cap Global Top Stock Ideas 
  • Thermo Fisher (TMO) reported first quarter earnings that beat expectations.  Thermo Fisher first quarter EPS of $2.81 came ahead of $2.73 consensus.  Thermo Fisher first quarter revenue of $6.12 billion, a touch ahead of $6.02 billion consensus.  Thermo Fisher provided EPS guidance for the full year of $12.02 to $12.22.  Thermo Fisher said it expects revenue of $25.17 billion to $25.47 billion in 2019.  Thermo Fisher is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas 

Global Power & Commodity Stocks Trending in the News

  • Occidental Petroleum (OXY) made a counter-offer for Anadarko Petroleum (APC), seeking to outbid Chevron (CVX).  Occidental is offering $76 per share in cash in its $57 billion offer.  Chevron offered $65 per share recently in a mixture of cash and stock.  Occidental is a smaller company with a balance sheet less hefty than Chevron so that despite the higher price, it may not be more attractive to investors.  Occidental has not said how it would fund Chevron’s massive LNG project in Mozambique.  Occidental Petroleum is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  Anadarko Petroleum is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.   Chevron is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  

 

 

 

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Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS