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Trump snaps 5-day winning streak saying HE is the one holding up trade deal, US stocks close lower on trade concerns

Jun 11, 2019

 

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US Market Snapshot

  • US stocks snap 5-day winning streak after President Trump reignites trade concerns, stocks close lower
  • Trade War Update: Who's holding up the US-China trade deal? "It's me!" President Trumps says today
  • The S&P 500 finished down 0.03%, Nasdaq Composite is down 0.01%, and Russell 2000 is down 0.29%
  • The US said it has "grave concerns" over the Hong Kong law that would allow extradition to mainland China, increasing pressure as more massive protests there are expected
  • The US has increased the presence of the US Coast Guard in the South China Sea in response to China's neighbor's requests for help with China's aggressive moves in waters these neighbors claim as theirs
  • There are 10 British Conservatives vying for Theresa May's job with Brexit as the main issue, as expected
  • Germany's gauge of investors views of the market (different than views on the broader economy) hit its lowest level since 2010 
  • Top Quality Value AND Low Volatility & Momentum Stocks: Take Your Pick! Financials, REITs, and Industrials Among Best Quality Value and Low Volatility & Momentum Stocks
  • Positive Sentiment Report: No Discount Needed for THESE Top Buy Consumer Stocks Trending by Positive Sentiment
  • Options Update: Energy Options Expensive with Fall In Crude Oil Prices. Chevron Notable Outlier
  • President Trump threatens China again: Trade War Trash Talk: If you don't meet me, more tariffs for you! 
  • Financials stocks options: Financial Stocks Options Look Cheap As Interest Rates Are Set To Drop
  • Asia ETF Flows: Asia Aversion: Investors Remain Cautious of Asian Stocks and Find Opportunity in India and Australia
  • Consumer Staples (+0.41%), Consumer Discretionary (+0.33%), and Telecom (+0.29%) stocks were the top performers in the S&P 500 today
  • Healthcare (-0.25%), Utilities (-0.69%), and Industrials (-0.9%) 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 0.85x
  • 169 stocks in the S&P 500 hit 4-week highs while 5 stocks reached 4-week lows
  • 52 stocks in the S&P 500 closed overbought while 8 stocks closed oversold according to the 16-day RSI Measure
  • 80 stocks in the Nasdaq Composite hit 4-week highs while 177 stocks reached 4-week lows
  • 374 stocks in the Nasdaq Composite closed overbought while 229 stocks closed oversold according to the 16-day RSI Measure
  • The VIX finished flat at 16.07 after closing at 15.94 yesterday

Stocks Trending in the News

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Global Consumer Stocks Trending in the News

  • Beyond Meat (BYND) was downgraded to hold from buy at JP Morgan after its 572% rise in price.  JP Morgan was the lead underwriter in the IPO of Beyond Meat.  JP Morgan said in its downgrade that Beyond Meat shares are getting overvalued, with a $10 billion enterprise value and trading at 27 times 2020 sales.  JP Morgan insisted its call is just a valuation call.  Beyond Meat is not rated in our Global Top Stock Ideas.
  • Crocs (CROX) said it does not anticipate that the US-China trade war will have a material effect on its business.  Crocs said if the 25% tariffs were put in place it would take about a $5 million hit.  Crocs is working to reduce its exposure to China, it presently imports 30% of its production from China and that is expected to drop to 10% in 2020.  Crocs is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • GrubHub Inc. (GRUB) shares surged higher after a report from GeekWire indicates that Amazon (AMZN) will shut down its restaurant food delivery service Amazon Restaurants. The report finds that Amazon Restaurants will be discontinued on June 24th and that its workplace lunch delivery service Daily Dish will close on June 14th. Still, Bloomberg analyst Andrew Eisenson believes, “GrubHub will likely continue to lose share amid intense competition from Uber Eats and DoorDash.” GrubHub is rated “Top Short” in our US Large-Cap Global Top Stock Ideas. 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.
  • H&R Block (HRB) shares edged higher after the company reported revenue in the fiscal fourth quarter that was in line with analyst estimates. H&R Block generated revenue of $2.33 billion while analysts expected $2.32 billion. H&R Block also reported earnings from continuing operations of $4.32/share in the fiscal fourth quarter that was accompanied by a $0.26/share dividend payment, which also met analyst expectations. H&R Block is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Hudson’s Bay (TSX:HBC), owner of Saks Fifth Ave, received a proposal from a group of its shareholders including its Chairman, to take the company private.  The group is offering C$9.45 per share, a 48% premium to Friday’s close, for a total value of about C$1.74 billion.  The group of shareholder represents 57% of outstanding shares of the Hudson’s Bay.  Hudson’s Bay has struggled to improve performance in recent years and has shed a number of assets.  Hudson’s Bay is rated “Attractive” in our Canada All-Cap Global Top Stock Ideas
  • Kraft Heinz (KHC) rose sharply after the company published its long-delayed 10-K and its restatements of results came in line.  Kraft Heinz completed its internal investigation over procurement issues and there were no additional surprises.  Its write-down of $15.4 billion did not change.  Kraft Heinz is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.
  • Lyft (LYFT) was upgraded to positive from neutral at Susquehanna.  Lyft saw its price target hiked to $80 from $57, implying a 41% upside for the stock.  Susquehanna sees a more rational competitive environment for Lyft going forward.  Lyft is not rated in our Global Top Stock Ideas.
  • National Beverage (FIZZ) shares tanked after Business Insider reported on a new lawsuit that the company may be facing.  The new lawsuit claims that National Beverage’s president claimed its sparkling water cans were free of BPA months before that was, in fact, the case to create positive buzz for the company.   National Beverage had no comment on the story.  National Beverage is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.
  • Whirlpool (WHR) saw Italy scarp all its incentives after it announced it would close its plant in Naples, Italy.  The Italian government complained the Whirlpool has not lived been faithful to its agreement with the factory.  Italy will rescind the 15 million in incentives remaining, complaining the company already received 50 million euros of incentives since 2014.  Whirlpool is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.

Global Information Technology Stocks Trending in the News

  • Apple (AAPL) said it has a back-up plan in the event the trade war with China drags on.  Apple’s primary manufacturer, Foxconn  (TSEC:2354), said it has capacity outside of China to produce all the iPhones that are destined for the United States.  China is where most of Apple’s products are made presently.  Foxconn said it is ready to support Apple in whatever move it needs to make.  Apple is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  Foxconn is not rated in our Global Top Stock Ideas.
  • Cree (CREE) cut its revenue and earnings guidance in the wake of the restrictions on Huawei exports.  Cree said it does not anticipate shipping any added products for Huawei’s build out and cannot say when shipments will resume.  Cree cut fiscal fourth quarter revenue guidance to $245 million to $252 million, down from $263 million to $272 million.  Cree now expects fiscal fourth quarter adjusted EPS of 8 to 12 cents, down from 12 to 16 cents.  Cree is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Facebook (FB) announced a new paid research effort called Study.  Facebook will compensate users who download the Study app and it will record what apps you use and how you use them.  Facebook wants the data on its competitors and is willing to pay users for it.  Facebook did not yet say exactly what the compensation would be.  Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Intel (INTC) is acquiring networking startup Barefoot Networks.  Barefoot Networks is focused on networking chips, a part of the chip market where Intel does not presently compete.  Intel plans to scale up production at Barefoot to better compete in the market for managing traffic over ethernet.  Intel is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.
  • Symantec (SYMC) was downgraded to equal-weight from overweight at Morgan Stanley.  Symantec will see “increased competition and management turnover represent risks to Symantec’s turnaround.”  Symantec saw its price target cut to $14 from $23, its new price target is a market low.  Morgan sees further downside for the stock.  Symantec is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.
  • T-Mobile Inc. (TMUS) and Sprint Corp. (S) shares both slid following a group of states set to sue in order to block a proposed takeover of the T-Mobile by Sprint. The increased pressure from state attorney generals, led by New York’s Letitia James, comes just prior to the Justice Department’s final decision on the proposed takeover. The takeover is being challenged by 10 total states and the District of Columbia. T-Mobile is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. Sprint is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.

Global Industrial Stocks Trending in the News

  • JetBlue Airways Corp. (JBLU) shares traded higher following an upgrade from neutral to buy at Citigroup. Citigroup also raised its price target for JetBlue Airways from $19.50/share to a Street-high $26/share. Citigroup analyst Kevin Crissey wrote in a note to clients that JetBlue’s new cost trajectory, “would likely lead to a strong stock appreciation.” JetBlue Airways is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Thermo Fisher Scientific (TMO) and Roper Technologies (ROP) announced they have terminated the deal in which Thermo Fisher was due to acquire Gatan, Inc, a subsidiary of Roper.  Thermo Fisher and Roper said they terminated the deal given the challenges in getting the deal approved by regulators in the UK.  The supply contract that was already in place in which Gatan supplies Thermo Fisher will remain intact.  Thermo Fisher Scientific is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  Roper Technologies is rated “Top Buy” 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

  • CBOE Global Markets (CBOE) shares slid slightly lower after shares were cut from outperform to market perform by Raymond James analyst Patrick O’Shaughnessy. O’Shaughnessy cited an expensive valuation and a struggle by the company to find new long-term growth drivers as reasoning for the downgrade. CBOE Global Markets is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.

Global Health Care Stocks Trending in the News

  • CVS Health Corp. (CVS) may be about to see its acquisition of Aetna (AET) rejected by a federal judge, the NY Post is reporting.  Reports say the judge in the case appears to be leaning towards not approving the merger due to its effects on competition in the market.  Oral arguments are to be heard July 17th and ruling is expected shortly thereafter.  The report cites individuals close to the case as its source.  CVS is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  Aetna is not rated in our Global Top Stock Ideas.

 

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US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 2.4 basis points to 1.92%
  • US 5-Year Treasury Bonds are flat with yields little changed 0 basis points to 1.91%
  • US 10-Year Treasury Bonds are higher with yields down -0.53 basis points to 2.14%
  • The US Treasury 2s-5s Spread has narrowed 2.4 basis points to -0.01%
  • The US Treasury 2s-10s Spread has narrowed 2.93 basis points to 0.22%
  • US Treasury 5s-10s Spread has narrowed 0.53 basis points to 0.23%

Currencies

  • EUR€ is little changed 0.141% against the USD$ in after hours to 1.1328
  • GBP£ is up 0.3% against the USD$ in after hours to 1.2723
  • CHF is down 0.228% against the USD$ in after hours to 1.008
  • JPY¥ is little changed 0.046% against the USD$ in after hours to 108.5

Commodities

  • WTI Crude is little changed 0.02% to USD$53.27/bbl with the Brent-WTI spread down USD$-0.72 to USD$9.59/bbl
  • Gold is little changed -0.08% to USD$1326.95/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
Albemarle Corp Materials 73.5 3.52%                584,546
Schlumberger Ltd Energy 41.6 3.44%            2,763,653
Regions Financial Corp Financials 15.1 3.43%            3,422,463
CenturyLink Inc Communication Services 16.2 3.29%            2,180,927
H&R Block Inc Consumer Discretionary 25.4 3.12%            1,425,517
 
Underperformers Sector Price 1D % Chg Volume
Raytheon Co Industrials 160 -5.11%            1,425,517
L3 Technologies Inc Industrials 178 -4.39%                120,307
Harris Corp Industrials 139 -4.28%                241,303
United Technologies Corp Industrials 111 -3.96%            1,840,487
ABIOMED Inc Health Care 325 -3.82%                271,540

 

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