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European stocks post modest gains on trade optimism, but have worst week in almost 8 months

May 10, 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

  • European stocks post slight gains, off the highs of session; for the week it was the worst in almost 8 months
  • The Euro Stoxx 600 closed up +0.32%, the FTSE 100 declined -0.06%, the DAX rose +0.72%, and the CAC 40 finished up +0.27%
  • Investor sentiment for European stocks finished trading positive with the advance/decline ratio for the Euro Stoxx 600 currently at 2.26x
  • Chemicals (+1.33%), Utilities (+1.08%), and Industrial Goods & Services (+0.66%) stocks were the top performers in the Euro Stoxx 600 today
  • Automobiles & Parts (-0.95%), Travel & Leisure (-0.19%), and Personal & Household Goods (-0.14%) stocks were the worst performers in the Euro Stoxx 600 today
  • 31 stocks in the Euro Stoxx 600 hit 4-week highs while 275 stocks closed at 4-week lows
  • 11 stocks in the Euro Stoxx 600 finished the trading session overbought while 61 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed  down -8.13 points today to 11.91 after closing at 20.04 yesterday
  • EUR€ is currently little changed against the USD$ at 1.123

Asian Stock Markets Indexes

Asian Markets Recap

  • President Trump tweeted this morning there is "no need to rush" to reach a trade deal with China as party as 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
  • Chinese mainland stocks rose on strong buying from state-backed funds
  • The Nikkei 225 finished down --0.27%, the Hang Seng ended up +0.84%, the Hang Seng China Enterprise up +0.79%, and the CSI 300 was +3.63%
  • Investor sentiment for Japanese stocks finished neutral with the advance/decline ratio for the Nikkei 225 closing at 1.03x
  • 10 stocks in the Nikkei 225 hit 4-week highs while 131 stocks reached 4-week lows
  • 2 stocks in the Nikkei 225 closed overbought while 63 stocks closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished positive with the advance/decline ratio for the Hang Seng closing at 4x
  • 1 stock in the Hang Seng hit 4-week highs while 22 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 8 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

  • 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.

 

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