US Market Snapshot

• US stocks post broad-based losses to cap the worst May for stocks in 9 years; tariffs on Mexico drove risk-off today
• The S&P 500 finished down 1.32%, Nasdaq Composite is down 1.51%, and Russell 2000 is down 1.35%
• President Trump announced the US will slap 5% tariffs on imports to the US from Mexico if it does not control the flow of illegal immigrants to the US, this after the largest ever group of illegals-over 1,000-entered the US in the El Paso sector
• Read more on Mexico tariffs: Tariffs for you too! Trump threatens tariffs on Mexico over illegal immigration, US trade rep not a happy camper
• Fed Funds futues have fully priced in 2 rate cuts this year as bonds continue to rally amid global trade tensions
• China said it will create a list of "unreliable" company-its own blacklist-in retaliation for the US moves against its tech companies; the vague language China used will allow it to target any US company it wants to
• Read more on China: You have your blacklist, we'll make ours! China creating list of "unreliable entities" from the US, saying "Necessary means will be taken"
• US Vice President Mike Pence said the US and China will in fact meet at the G-20 summit and he is hopeful that China will agree to the changes the US is seeking 
• China has a plan for restricting rare earth metals exports if the trade war worsens, read more: Don't Say I Didn't Warn You: Chinese State Media Threatens US with a Big Rare Earth Metals Stick
• Great US economic data yesterday: Goldilocks Rules! Strong GDP growth, solid consumer demand and tame inflation today confirm US economy in sweet spot
• What would it take to cut interest rates? Fed Vice Chairman Richard Clardia: We Could Cut Rates if Growth Outlook Worsens
• German bonds continue to rally amid the global tension and the yield om its 10-year bond touched -0.20% 
• Real Estate (+0.77%), Utilities (+0.45%), and Healthcare (-0.78%) stocks were the top performers in the S&P 500 today
• Tech (-1.6%), Energy (-1.62%), and Telecom (-2.04%) 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 0.31x
• 7 stocks in the S&P 500 hit 4-week highs while 103 stocks reached 4-week lows
• 5 stocks in the S&P 500 closed overbought while 80 stocks closed oversold according to the 16-day RSI Measure
• 49 stocks in the Nasdaq Composite hit 4-week highs while 346 stocks reached 4-week lows
• 121 stocks in the Nasdaq Composite closed overbought while 660 stocks closed oversold according to the 16-day RSI Measure
• The VIX closed up 1.44 points today to 18.74 after closing at 17.3 yesterday

Global Consumer Stocks Trending in the News

• Amazon (AMZN) is considering acquiring the pre-paid wireless service Boost Mobile from T-Mobile (TMUS) and Sprint (S), according to Reuters.  The news is being described as negative for national carriers given Amazon’s tendency to lower prices in general when it enters a new market.  Boost has a long-term contract for access to T-Mobile and Sprint’s network, making it a very attractive target.  None of the companies would comment on the report.  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.  
• Big Lots (BIG) reported first quarter earnings that beat consensus and upped full year guidance.  Big Lots reported first quarter adjusted EPS of 92 cents, above consensus of 70 cents.  Revenue of $1.3 billion matched consensus of $1.29 billion.  Big Lots upped full-year adjusted EPS guidance to $3.70 to $3.85, $3.55 to $3.75.  Big Lots is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
• Constellation Brands (STZ) suffered greatly after the US announced potential tariffs on imports from Mexico.  Constellation Brands’ imports Corona and Modelo products and hiking tariffs on its products is sure to cause it pain.  Two-thirds of Constellation Brands’ revenue come from beer and alcohol it produce in Mexico.  Constellation Brands is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.  
• Gap (GPS) reported first quarter same store sales that missed consensus.  Gap reported first quarter same stores sales of a 4% drop, trailing the 1.2% expected.  Gap first quarter adjusted EPS of 24 cents trailed consensus of 32 cents.  First quarter revenue of $3.71 billion came a touch below $3.75 billion consensus.  Gap provided full year EPS guidance of $2.04 to $2.14, well below consensus of $2.46.  Gap is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
• Johnson & Johnson (JNJ) was ordered by a NYC jury to pay an additional $300 million in punitive damages to a woman who blamed her rare cancer on its talc powder.  The actual damages verdict in the trial was $25 million, so with the punitive damages award the total is $325 million that Johnson & Johnson has been ordered to pay.  The lawsuit is one of thousands that Johnson & Johnson faces over its talc powder alleging causing cancer.  Johnson & Johnson is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
• Kraft Heinz (KHC) had its price cut farther at Credit Suisse to a market-low of $26, down from $33.  Credit Suisse floated a theory that the SEC could find further problems at Kraft Heinz as it investigates the company’s internal controls.  Kraft Heinz has lost 36% this year so far as the bad news keeps coming.  Kraft Heinz is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.  
• Lyft (LYFT) shares rose sharply in the wake of JP Morgan reiterating its buy rating and $86 price target.  JP Morgan sees 50+% upside for Lyft and recommended the present price level, ~$40, as a good entry point.  Lyft has a number of high-growth, high-margin opportunities in its business and expects the market to reward it for them.  Lyft is not rated in our Global Top Stock Ideas
• Tesla (TSLA) is starting to take order in China for its locally build Model 3s.  Tesla is pricing the locally built model well below the price of those that are imported to China from the US.  Tesla is pricing it at $47,500 which is well below the $59,800 it was charging for the imported cars.  Tesla’s strategy in China could be key to its survival, analysts argue.  Tesla is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  T-Mobile is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.  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.  
• Williams-Sonoma (WSM) reported first quarter adjusted EPS of 81 cents, handily beating consensus of 69 cents.    Same store sales growth of 3.5% also beating consensus of 1.6%.   Williams-Sonoma hiked full-year adjusted EPS guidance to $4.55 to $4.75, up from $4.50 to $4.70.  Shares rose 16% on Friday.  Williams-Sonoma is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  

Global Information Technology Stocks Trending in the News

• Dell (DELL) reported first quarter earnings that beat consensus but revenue that trailed.  Dell first quarter adjusted EPS of $1.45 beating consensus of $1.20.  Dell first quarter revenue of $21.9 billion, trailing consensus of $23.9 billion.  Weakness in server sales, which dropped 8.6%, was the main reason for the miss.  Dell provided full year revenue guidance of $92.7 billion to $95.7 billion, indicating revenue growth of 2.3% to 5.6%, well below the 15% growth posted last week.  Dell is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
• Facebook (FB) is being criticized for not removing bogus vaccine content on its site that it promised to remove.  There are still paid ads claiming vaccines unethical doctors have conspired to hide evidence that vaccines are harmful to children.  Facebook officials have said they are not where they want to be and are working to remove all that content.  Facebook is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
• Micron (MU) had its price target lowered at Stifel due to the Chinese tariffs.  32% of Micron’s revenue comes from shipments into China.  Given all the uncertainties with China, Micron saw its price target at Stifel cut to $54 from $60.  Expected declines in DRAM prices also was cited in the target price cut.  Micron is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
• Uber (UBER) reported its first quarterly results as a public company.  Uber reported a first quarter loss of $1.03 billion which was in line with what Uber said in its IPO documents.  Revenue grew just 10% to $2.62 billion, fueling critics claims that competition is hurting Uber’s growth prospects.  A year earlier that growth was 80%.  Uber is not yet rated in our Global Top Stock Ideas.
• Verizon (VZ) was downgraded to neutral from buy at UBS.  UBS maintained its $59 price target.  Verizon will see the fundamentals of its wireless business remain positive though it is unlikely to see any acceleration in growth.  Valuation has returned to historical levels and UBS believes the risk/reward now is not in Verizon’s favor.  Verizon is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.  

Global Industrials Stocks Trending in the News

• FedEx (FDX) announced it will offer Sunday delivery service to most homes in the US.  FedEx’s President said, “Online shopping is seven days a week.”  FedEx said with so much online shopping and customers expecting deliveries quickly, the move to seven days of delivery looks to answer that demand.  Deliveries on Sunday will start next year as FedEx looks to capture more e-commerce business.  FedEx is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas

Global Power & Commodities Stocks Trending in the News

• American Tower Corp (AMT) agreed to acquire Eaton Towers in a deal valued at $1.85 billion including debt.  American Tower is making the acquisition to fuel its growth in Africa where both companies have towers.  The combination will allow American Tower to expand farther in Africa where tower growth in the highest.  The deal will give American Tower $260 million in property revenue in the first year after closing the deal.  American Tower is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas
• Nucor (NUE) was downgraded today at Merrill Lynch to underperform from buy, a 2 notch downgrade.  Nucor is being pressured by the trade war with China.  Steel price estimates for the coming year have been slashed by analysts, hurting Nucor’s outlook.  Merrill cut Nucor’s price target to $50 from $68.  Nucor is rated “Attractive” in our US Large-Cap Global Top Stock Ideas

US Treasuries

• US 2-Year Treasury Notes are higher with yields down -13.68 basis points to 1.92%
• US 5-Year Treasury Bonds are higher with yields down -10.39 basis points to 1.91%
• US 10-Year Treasury Bonds are higher with yields down -7.83 basis points to 2.13%
• The US Treasury 2s-5s Spread has widened 3.29 basis points to -0.01%
• The US Treasury 2s-10s Spread has widened 5.85 basis points to 0.21%
• US Treasury 5s-10s Spread has widened 2.56 basis points to 0.22%

Currencies

• EUR€ is up 0.359% against the USD$ in after hours to 1.1169
• GBP£ is up 0.19% against the USD$ in after hours to 1.2632
• CHF is up 0.635% against the USD$ in after hours to 0.9985
• JPY¥ is down 1.14% against the USD$ in after hours to 108.37

Commodities

• WTI Crude is down -5.46% to USD$53.5/bbl with the Brent-WTI spread little changed USD$0.15 to USD$9.22/bbl
• Gold is up 1.3% to USD$1305.41/oz
   

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S&P 500 Sector ETFs - Intraday

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