blog

Latest from the Quantamize Blog

Tech flies high while Industrials crash and burn; US stocks closed mixed as earnings drive sector moves

Apr 25, 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 close mixed with tech stocks strong today on earnings while industrials tanked on guidance cuts
  • The S&P 500 finished down 0.04%, Nasdaq Composite up 0.21%, and Russell 2000 is down 0.79%
  • Tech earnings so far: Towering Titans of Tech: Stellar Tech Earnings This Week so far, the Bar is high
  • US Stocks continue to grind higher with US stocks outperforming their international peers by nearly 5% for the year.  This divergence will continue for the next few months as earnings expectations in the US are revised upwards.  Remember, it isn’t FOMO driving US stocks, it is earnings and feels like this rally has more to run.  Please see our video from yesterday to get our take why US stocks aren’t expensive and can continue to run. 
  • A report from the International Shopping Centers Associations shows Gen Z shoppers embrace shopping centers, having visited one at least once over a 3-month period, much more than other demographic groups
  • Interesting read: Blame Thanos: Speculative- Grade Corporate Bond Yields Fall Below Comparable Loan Yields
  • US Initial Jobless Claims data for the week ending April 20th were 230,000, compared with 200,000 expected and 192,000 in the prior period.  
  • US Durable Goods Orders for March rose 2.7% while 0.80% was expected and the decline of 1.60% in February.  
  • US Capital Goods Orders Nondefense for March rose 1.3% while 0.2% was expected and the decline of 0.1% in February.  
  • Is it FOMO Fever: Is FOMO Really Driving the Current Rally in the S&P 500 or is it Earnings?
  • Check out our newest Stock Model Portfolio: LET'S GET HIGH-High PERFORMANCE, of course!-with our new MARIJUANA POT-FOLIO Stock Model Portfolio!
  • Healthcare (+1.13%), Telecom (+1.08%), and Utilities (+0.43%) stocks were the top performers in the S&P 500 today
  • Consumer Staples (-0.75%), Materials (-1.3%), and Industrials (-1.99%) 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 0.64x
  • 117 stocks in the S&P 500 hit 4-week highs while 14 stocks reached 4-week lows
  • 76 stocks in the S&P 500 closed overbought while 6 stocks closed oversold according to the 16-day RSI Measure
  • 159 stocks in the Nasdaq Composite hit 4-week highs while 90 stocks reached 4-week lows
  • 445 stocks in the Nasdaq Composite closed overbought while 198 stocks closed oversold according to the 16-day RSI Measure
  • The VIX finished flat at 13.21 after closing at 13.14 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.

Global Consumer Stocks Trending in the News

  • Altria (MO) shares slipped after the company reported quarterly financial that broadly missed analyst expectations. Altria's revenue excluding excise taxes of $4.39 billion missed the lowest analyst estimates that ranged between $4.40 billion and $4.74 billion. Altria also generated an adjusted EPS of $0.90 in the first quarter that missed consensus for earnings of $0.92/share. Altria is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.  
  • Amazon (AMZN) delivered first quarter earnings well above consensus.  Amazon delivered first quarter EPS of $7.09 while consensus was $4.67.  Amazon net sales in the first quarter were $59.7 billion, matching consensus.  Amazon reported AWS sales of $7.7 billion, posting 41% y/y growth, matching consensus of $7.67 billion.  Amazon gave 2Q sales guidance of $59.5 billion to $63.5 billion.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • DR Horton (DHI) reported fiscal second quarter results that beat expectations.  DR Horton posted fiscal second quarter EPS of 93 cents, beating consensus of 86 cents.  Second quarter revenue of $4.13 billion beat $4.05 billion consensus.  Net orders grew 6% in the quarter.  DR Horton gave 2019 revenue guidance of $16.7 billion to $17 billion, below present consensus of $17.16 billion.  DR Horton is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Ford Motor Co (F) reported earnings that beat consensus, bearing fruit from its turnaround efforts.  Ford reported first quarter adjusted EPS of 44 cents, ahead of the 26 cents expected.  Revenue in the first quarter of $37.2 billion beat the $36.99 consensus.  Ford is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Hershey (HSY) shares traded higher after the company announced an adjusted EPS in the first quarter of $1.59, beating the highest analyst estimates that ranged between $1.44 and $1.55. Hershey see its FY2019 adjusted EPS coming between $5.63 and $5.74, the midpoint of which is higher than consensus of $5.64. Hershey is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.
  • Mattel (MAT) posted first quarter sales and earning that beat consensus handily.   Mattel reported first quarter adjusted loss of 44 cents per share, better than the 58 cents per share loss expected.  Revenue in the first quarter of $689.2 million beat the $648 million consensus.  Barbie and Hot Wheels saw strong sales growth.  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.
  • Tesla (TSLA) reported a huge loss for the first quarter, much more than expected.  Tesla lost $494 million in the quarter, or $2.90 per share.  Consensus was for a $1.30 per share loss.  Tesla is planning to raise up to $2.5 billion in new equity this year.  For comparison, Tesla recorded only $2.2 billion in cash on its balance sheet at the end of the quarter.  Tesla reiterated its plans to deliver 360,000 to 400,000 cars in 2019.  Tesla said it will shoot to be cash flow “neutral” this year whereas past guidance was to be earing profits past this quarter.  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

  • Comcast Corp. (CMCA.A) is reportedly in talks to sell its 30% stake in streaming service Hulu to the majority owner of the entity, Walt Disney Co. (DIS). After Disney completed the acquisition of 21st Century Fox in March for $71 billion, Disney became a 60% owner in Hulu -- last week, Disney agreed to buy out minority Hulu investor AT&T Inc. (T) at a valuation of $15 billion. Comcast Corp. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. Disney is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” 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.
  • Facebook (FB) reported first quarter revenue that beat consensus.  Facebook posted first quarter EPS of $0.85, ex-legal expenses it would have been $1.89.  Facebook first quarter revenue of $15.08 billion beat consensus of $14.97 billion.   Facebook reported a $3 billion expense charge in the quarter related to FTC legal issues.  Facebook reported 1.56 billion daily active users in the quarter.  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) reported earnings in line and slashed guidance.  Intel reported first quarter adjusted EPS of 89 cents, ahead of87 cents expected.  Revenue in the first quarter of $16.1 billion came in line with $16.03 consensus.  Intel gave second quarter EPS guidance of about 89 cents and sees full year EPS about $4.35, a cut from $4.60 previously.  Intel is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Lam Research (LRCX) reported fiscal third quarter EPS of $3.70 which consensus of $3.38.  Lam Research fiscal third quarter revenue of $2.44 billion consensus of $2.40 billion.   Lam Research gave fourth quarter EPS guidance of $3.20 to $3.60.  Lam Research is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Microsoft (MSFT) reported fiscal third quarter EPS of $1.14 which beat consensus of $1.00.  Microsoft fiscal third quarter revenue of $30.57 billion beat consensus of $29.86 billion.  Cloud revenue of $9.65 billion beat $9.3 billion, growing 41% y/y.  Microsoft is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Nintendo (TSE: 7974) shares fell lower after the company announced first quarter financial results and guidance that disappointed analyst expectations. Nintendo signaled that it would not introduce the highly anticipated new Switch gaming console model at the E3 trade show in June. Nintendo also posted operating profit of 29.7 billion yen in the first quarter ($266 million), missing consensus of $36 billion yen. Nintendo is not rated in our Global Top Stock Ideas.
  • Nokia Corporation (HLSE: NOKIA) shares fell by double-digits after the company signaled that its high volume of 5G business expected in the second half of 2019 also comes with risks to the company. “We demonstrated in 2017 that we can deliver a fully loaded second half, and we expect we can do so again,” said CEO Rajeev Suri, who added the caveat, “That said, I think it’s reasonable to acknowledge that our slow start to the year has slightly increased risk in this area.” Nokia is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • PayPal (PYPL) reported first quarter adjusted EPS of $0.78 which beat consensus of $0.68.  PayPal first quarter revenue of $4.13 billion matched consensus.   PayPal gave second quarter EPS guidance of $$0.68 yo $0.78.  PayPal said 40 million users used its Venmo service at least once a month.  PayPal is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Visa (V) reported fiscal second quarter EPS of $1.31 which consensus of $1.24.  Visa fiscal second quarter revenue of $5.5 billion came in line with consensus of $5.47 billion.   Visa posted payments growth of 8% in the quarter.  Visa is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Xilinx Inc. (XLNX) shares slid by the most in 5 years after the company offered a disappointing gross margin outlook for FY2019. Analysts responded to the guidance by saying they do not see an opportunity for short-term upside in the company. The guidance caused analysts to initiate a slew of downgrades and slashes to price forecasts. Xilinx is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.

Global Industrial Stocks Trending in the News

  • 3M (MMM) reported first quarter earnings that trailed expectations.  3M reported first quarter adjusted EPS of $2.23, behind the $2.48 expected.  Revenue in the first quarter of $7.86 billion trailed the $8.02 consensus.  3M is realigning its business units from 5 to 4 and will eliminate 2,000 jobs worldwide, taking a $150 million charge.  3M cuts its 2019 EPS guidance to $9.25 to $9.75, a huge cut from $10.45 to $10.90.  3M is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Bombardier Inc. (TSX: BBD.B) shares tanked as much as 25% after announcing first quarter financials and slashed its FY2019 guidance. Bombardier cut its revenue forecasts for FY2019 by $1 billion due to a soft first quarter that was the result of aircraft delivery timings and slower-than-expected ramp up in rail projects production during the first quarter. Bombardier is rated “Neutral” in our Canada All-Cap Global Top Stock Ideas.
  • Rockwell Automation (ROK) shares fell after the company announced quarterly earnings and offered guidance with a midpoint that missed analyst consensus. Rockwell told analyst that it sees FY2019 adjusted EPS between $8.85 and $9.15, the midpoint of which is below consensus of $9.01. Rockwell’s adjusted EPS of $2.04 in its fiscal second quarter also missed analyst expectations of $2.08. Rockwell is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • UPS (UPS) reported first quarter earnings that missed consensus as it suffered weather challenges in the quarter.  UPS reported first quarter EPS of $1.39, trailing $1.42 consensus.  UPS said poor weather cost it 7 cents per share in earnings.  First quarter revenue of $17.3 billion while consensus was for $17.78 billion.  UPS saw improvements in margin overseas and said this quarter should be the low point in earnings for the year.  UPS gave 2019 EPS guidance of $7.45 to $7.75.  UPS is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • Capital One Financial (COF) reported earnings and revenue that beat consensus.  Capital One reported first quarter adjusted EPS of $2.90, ahead of $2.70 expected.  Revenue in the first quarter of $7.1 billion beat the $7.03 billion consensus.  Capital One Financial is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Deutsche Bank (DB:DBK) and Commerzbank (DB:CBK) have formally ended their merger talks.  Five weeks of talks could not yield a deal.  A host of economic and political concerns limited Deutsche Bank and Commerzbank from creating the national powerhouse the German Finance Ministry was pushing for.  Deutsche now must come up with its fifth turnaround plan since 2015 in the wake of the failed merger attempt.   In the end, the 2 banks simply agreed a merger would be too difficult.  Deutsche Bank is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.  Commerzbank is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Lazard Ltd. (LAZ) shares slid after the company reported quarterly financials, which contained a 15% decline in the company’s first quarter financial advisory fees. Lazard CEO also told analysts that he expects his firm and other US rivals to gain market share from the largest European investment banks. Lazard is not rated in our Global Top Stock Ideas.

Global Power & Commodity Stocks Trending in the News

  • Hess Corp (HES) reported a surprise first quarter profit.  Hess posted a 9 cents per share profit while consensus was for a 27 cents per share loss.  Hess delivered greater than expected oil production in the Gulf of Mexico and the Bakken shale region. Hess Corporation is rated “Top Short” in our US Large-Cap Global Top Stock Ideas
  • Newmont Gold Corp (NEM) delivered first quarter earnings that beat expectations.  Goldcorp first quarter EPS of 33 cents came ahead of 27 cents consensus.  Revenue of $1.8 billion trailed $1.87 billion consensus.  Newmont reported 1.23 million ounces of production.  Newmont Gold Corp is rated “Attractive” in our US Large-Cap Global Top Stock Ideas

Global Healthcare Stocks Trending in the News

  • AbbVie (ABBV) posted first quarter adjusted EPS and revenue that beat consensus.  AbbVie reported first quarter EPS of $2.14, ahead of $2.06.  Revenue of $7.83 billion beat $7.78 billion consensus.  Despite increased competition for its best-selling drug Humira, AbbVie hiked EPS guidance to $8.73 to $8.83 fro 2019, up from $8.65 to $8.75; consensus is $8.69.  AbbVie’s psoriasis drug Skyrizi received FDA approval April 23rd.  AbbVie is rated “Attractive” 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 lower with yields up 1.21 basis points to 2.32%
  • US 5-Year Treasury Bonds are lower with yields up 1.8 basis points to 2.32%
  • US 10-Year Treasury Bonds are lower with yields up 1.62 basis points to 2.53%
  • The US Treasury 2s-5s Spread has widened 0.59 basis points to 0%
  • The US Treasury 2s-10s Spread has widened 0.41 basis points to 0.2%
  • US Treasury 5s-10s Spread has narrowed 0.18 basis points to 0.2%

Currencies

  • EUR€ is down 0.197% against the USD$ in after hours to 1.1133
  • GBP£ is little changed 0.078% against the USD$ in after hours to 1.2892
  • CHF is little changed 0% against the USD$ in after hours to 0.9799
  • JPY¥ is down 0.472% against the USD$ in after hours to 111.66

Commodities

  • WTI Crude is down -1.06% to USD$65.14/bbl with the Brent-WTI spread up USD$0.98 to USD$8.67/bbl
  • Gold is little changed 0.1% to USD$1277.06/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
Cincinnati Financial Corp Financials 77.6 6.71%                558,369
Facebook Inc Communication Services 149 5.85%          14,952,798
Lam Research Corp Information Technology 140 4.93%            1,612,761
Hershey Co/The Consumer Staples 108 4.59%                657,731
Fortune Brands Home & Security Inc Industrials 42 4.41%                963,095
 
Underformers Sector Price 1D % Chg Volume
Xilinx Inc Information Technology 91.2 -17.08%            3,958,015
3M Co Industrials 189 -12.95%                931,852
Freeport-McMoRan Inc Materials 11.6 -10.09%          10,730,406
Iron Mountain Inc Real Estate 34.8 -8.90%            2,350,372
United Parcel Service Inc Industrials 97.4 -8.13%                711,073
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY