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He said what? US stocks off lows after Mnuchin calls trade talks "constructive" without giving details, investors remain cautious

May 10, 2019

 

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Market data as of 12:30 pm EST

US Market Snapshot

  • US stocks have bounced off the session lows on positive comments from Treasury Secretary Mnuchin, saying talks were "constructive"
  • The S&P 500 is currently down 0.82%, Nasdaq Composite is down 0.86%, and Russell 2000 is down 0.84%
  • President Trump tweeted this morning there is "no need to rush" to reach a trade deal with China as the parties are set to meet during the day for additional trade talks in Washington
  • China has said it is ready to retaliate with its own tariffs though has not yet indicated what that will be
  • US CPI in April rose 0.3%, below 0.4% consensus and 0.4% from a month earlier
  • US CPI ex-food and energy rose 0.1%, below 0.2% consensus and matching March 
  • Real hourly earnings grew 1.2% in April, trailing 1.3% consensus
  • Utilities (+0.69%), Materials (+0.59%), and Real Estate (+0.5%) stocks are the top performers in the S&P 500 today
  • Consumer Discretionary (-0.87%), Tech (-0.89%), and Healthcare (-0.96%) 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 0.27x
  • 15 stocks in the S&P500 are at 4-week highs while 171 stocks are at 4-week lows
  • 19 stocks in the S&P 500 are overbought while 32 stocks are oversold according to the 16-day RSI Measure
  • 95 stocks in the Nasdaq Composite are at 4-week highs while 127 stocks are at 4-week lows
  • 179 stocks in the Nasdaq Composite are overbought while 616 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 18.64 from yesterday's close of 19.1
  • Check out these TOP PICKS posts from this week:

Stocks Trending in the News

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Global Consumer Stocks Trending in the News

  • Anheuser-Busch InBev (BUD) formally filed for an IPO for its Hong Kong unit.  Anheuser-Busch is targeting a $70 billion valuation and stated in its filing that it is the largest beer company in Asia Pacific.  The IPO is being targeted for July and the unit is called Budweiser Brewing Company APAC Ltd.  Anheuser-Busch InBev is rated "Neutral" in our European Large-Cap Global Top Stock Ideas
  • Booking Holdings Inc. (BKNG) shares traded notably higher after better-than-expected hotel nights metrics casted away doubt from Street analysts’ outlook regarding company guidance.  Jefferies analyst Brent Thill wrote to clients regarding the earnings, “As growth in the traditional hotel business continues to decelerate we are confident in BKNG’s plan to continue expanding its alternative accommodations business.” Booking Holdings is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • JD.com Inc. (JD) shares edged higher after China’s second-largest e-commerce operator announced revenue that topped analyst estimates. JD.com observed revenue of 121.1 billion yuan ($18 billion) during the first quarter that was ahead of consensus for 120 billion yuan. JD.com’s bottom-line income of 1.2 billion yuan also beat out consensus expectations for a loss of 244.7 million yuan. JD.com is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Roku Inc. (ROKU) shares surged to an all-time high after the video streaming platform announced first quarter revenue and a FY2019 outlook that was ahead of analyst expectations. From their December low, Roku shares are up nearly 200%. The first quarter financials prompted a slew of Street analysts to raise their price targets for Roku shares. Roku is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.

Global Information Technology Stocks Trending in the News

  • Symantec (SYMC) CEO Greg Cark unexpectedly quit, sending shares of Symantec tumbling.  No specific reason was given but Symantec has struggled to make its enterprise security business grow, the unit is the majority of Symantec’s revenue.  Starboard Value LP, the activist hedge fund, bought 5% of the company and has stated its intention to shake up management of the company.  Richard Hill will take over as interim CEO.  Symantec also cut revenue guidance for the rest of the year.  Symantec is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Tenneco Inc. (TEN) shares fell by the most intraday in almost a decade after the company hit a triple-whammy with its first quarter earnings release. Tenneco reported quarterly financials that trailed analyst estimates, cut back its FY2019 guidance, and announced a spin-off of its aftermarket auto parts business. Tenneco lost more than a third of its total market value initially on the news. Tenneco is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Zillow Group Inc. (ZG) shares rallied after the company reported first quarter financial results that broadly beat analyst expectations. The broadly strong financials from Zillow led at least five Street analysts to hike their price targets for shares. Despite the initial positive reactions, Bloomberg and Barclay’s both warned that the reaction could be overly optimistic. Zillow initially opened 17% higher in Friday trading before retracing gains to about +5% positive intraday. Zillow Group is not rated in our Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Aeroports de Paris (ENXTPA: ADP) shares fell after being downgraded by JPMorgan, Santander, and Goldman Sachs following the delay of the privatization of the airport operator due to a court ruling. Analysts downgraded the stock because they saw the government embarking on a competitive privatization process of Aeroports de Paris, which appears to no longer appears to be the case. Aeroports de Paris is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas.
  • Uber (UBER) placed its IPO at $45 per share, near the low end of the price range.  The price range was $44 to $50.  The IPO is raising $8.1 billion for Uber and values the company at about $82 billion.  Uber’s IPO makes it the highest valued IPO since Alibaba (BABA) in 2014.  Alibaba is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.  Uber is not yet rated in our Global Top Stock Ideas.

Global Financial Stocks Trending in the News

  • Tradeweb (TW) reported first post-IPO results that came a touch above consensus.  Tradeweb reported first quarter adjusted EPS of 23 cents, ahead of 22 cents consensus.  First quarter revenue of $186.8 million was a touch more than $186.0 million consensus.  Tradeweb declared its first quarterly dividend of 8 cents per share.  Tradeweb saw a 34% growth in volume versus a year ago.  Tradeweb is not rated in our Global Top Stock Ideas.

Global Commodities & Power Stocks Trending in the News

  • Buckeye Partners LP (BPL) shares soared by more than 25% after the IFM Global Infrastructure Fund announced the acquisition of the owner and operator of oil pipelines and terminals for $6.5 billion. The acquisition price of Buckeye represents a 27.5% premium on Thursday’s share closing price. Buckeye Partners is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.

Global Health Care Stocks Trending in the News

  • Care.com (CARE) announced that is it overhauling its business model and adding in-depth background checks for the caregivers who post on its site.  Care.com has 33 million members and will pay a third-party provider to check criminal histories of caregivers as well as verify their key personal data.  The changes come after the WSJ did a report about problems with caregivers on Care.com.  Care.com is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.

 

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US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -2.05 basis points to 2.23%
  • US 5-Year Treasury Bonds are higher with yields down -1 basis points to 2.23%
  • US 10-Year Treasury Bonds are flat with yields little changed 0 basis points to 2.44%
  • The US Treasury 2s-5s Spread has widened 1.05 basis points to 0%
  • The US Treasury 2s-10s Spread has widened 2.05 basis points to 0.2%
  • US Treasury 5s-10s Spread has widened 1 basis points to 0.21%

Currencies

  • EUR€ is currently up 0.214% against the USD$ to 1.1239
  • GBP£ is currently little changed against the USD$ at 1.3031
  • CHF is currently up 0.345% against the USD$ to 0.9886
  • JPY¥ is currently little changed against the USD$ at 109.68

Commodities

  • WTI Crude is currently up 0.44% to USD$61.97/bbl with the Brent-WTI spread up USD$0.85 to USD$9.6/bbl
  • Gold is currently up 0.27% to USD$1287.55/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

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Outperformers Sector Price 1D % Chg Volume
News Corp Communication Services 12.4 4.07%                483,798
Linde PLC Materials 157 3.57%                123,358
News Corp Communication Services 12.5 3.17%                112,997
Booking Holdings Inc Consumer Discretionary 1700 3.17%                152,268
Ball Corp Materials 49.3 2.97%                254,221
 
Underperformers Sector Price 1D % Chg Volume
Symantec Corp Information Technology 19.7 -13.89%            5,779,680
Wynn Resorts Ltd Consumer Discretionary 108 -6.26%                742,117
Marriott International Inc/MD Consumer Discretionary 110 -5.00%                469,800
Mettler-Toledo International Inc Health Care 582 -4.08%                  17,958
Tapestry Inc Consumer Discretionary 35.9 -3.99%                887,962
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