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Where do we go now? After record US close, global markets struggle for further upside in wake of negative European sentiment readings

Apr 24, 2019

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Market data as of 7am EST

 

US Stocks Preview Ahead of the Open

Stocks Trending in the News

 

Click name for Q-Factor breakdown, latest price details, more financial info and sentiment data.

Global Consumer Stocks Trending in the News

  • Domino’s Pizza (DPZ) reported sales growth that trailed consensus.  Domino’s Pizza total system-wide sales grew 3.9%, trailing 4.2% consensus.  Domino’s Pizza first quarter EPS of $2.20 came ahead of $2.09 consensus.  Domino’s Pizza is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
  • E-Bay (EBAY) posted first quarter earnings that beat expectations.  E-Bay first quarter adjusted EPS of 67 cents beat consensus of 63 cents.  Net revenue of $2.64 billion beat $2.58 billion consensus.  E-Bay guidance for second quarter of 61-63 cents, above 59 cents consensus.  E-Bay expects revenue of $2.64 to $2.69 billion in the second quarter.  E-Bay is rated “Attractive” in our US Large-Cap Global Top Stock Ideas

Global Information Technology Stocks Trending in the News

  • Texas Instruments (TXN) reported first quarter earnings that beat consensus with guidance in line.  Texas Instruments first quarter EPS if $1.26 beat consensus of $1.13.  First quarter revenue of $3.59 billion beat consensus of $3.48 billion.  Texas Instruments gave second quarter EPS guidance of $1.12 to $1.32 with revenue guidance of $3.46 billion to $3.74 billion, consensus is $3.66 billion.  Texas Instruments is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.  
  • Wirecard (DB:WDI) will get a $1 billion investment from Softbank (TSE:9984).  Softbank is making the investment as it seeks more exposure to the payments sector.  Wirecard will gain access to Asian markets that is seeking.  The agreement could see Softbank acquiring up to 5.6% of Wirecard at a price that is 27% below market price.  The agreement involves the use of convertible bonds and could see Softbank as the second largest shareholder behind Wirecard’s founder.  Wirecard is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.  Softbank is rated “Attractive” in our Japan Large-Cap Global Top Stock Ideas   

Global Industrial Stocks Trending in the News

  • Boeing (BA) has suspended guidance in the wake of the grounding of the 737 Max and said it will issue new guidance some time in the future.  Boeing reported first quarter results  with EPS of $3.75.  First quarter revenue was $22.9 billion with operating cash flow of $2.8 billion.  Boeing returned $1.2 billion to shareholders in the quarter.  Boeing’s present backlog is $487 billion.  Boeing said it is, “engaging global regulators and customers on safe return to service of the 737 Max.”  Boeing is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Caterpillar (CAT) beat first quarter profit and sales expectations when it reported first quarter results.  Caterpillar first quarter revenue of $13.5 billion beat $13.4 billion consensus.  Caterpillar reported first quarter EPS of $2.94, ahead of $2.84 consensus.  Caterpillar upped EPS guidance to $12.06 to $13.06 for 2019 from $11.75 to $12.75 previously.  Caterpillar sees modest, consistent growth in 2019 with the greatest demand expected for mining equipment.  The mining demand is due in part to low dealer inventories of this equipment.  Caterpillar is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas
  • General Dynamics (GD) posted first quarter earnings that beat consensus.  General Dynamics first quarter EPS of $2.56 beat consensus of $2.41.  General Dynamics posted first quarter revenue of $9.26 billion handily beat consensus of $8.84 billion.  General Dynamics reported a backlog of $69.21 billion.  General Dynamics is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas
  • Jet Blue (JBLU) reported first quarter adjusted EPS that beat consensus.  Adjusted EPS came at 16 cents while consensus was 12 cents.  Jet Blue operating revenue in the first quarter was $1.87 billion, in line with $1.87 billion consensus.  Jet Blue provided second quarter guidance for available seat miles, seeing that grow 4.5% to 6.5%.  Jet Blue sees revenue per seat mile growing 1% to 4% in the second quarter.  Jet Blue is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.   
  • Norfolk Southern (NSC) first quarter earnings handily beat expectations.  Norfolk Southern first quarter EPS of $2.51 came well above $3.18 consensus.  First quarter railway operating revenue of $2.84 billion came in line with $2.82 consensus.  Norfolk Southern’s operating ratio in the first quarter was 66%.  Norfolk Southern is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas
  • Northrop Grumman (NOC) reported first quarter sales that trailed expectations.  Northrop Grumman first quarter sales of $8.19 billion came just below $8.32 billion consensus.  Boston Scientific first quarter EPS came at $5.06, beating $4.85 consensus.  Northrop Grumman increased full year EPS guidance of $18.90 to $19.10, up from of $18.50 to $19.00.  Northrop Grumman is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Stanley Black & Decker (SWK) reported stronger first quarter adjusted EPS than expected.  Adjusted EPS for the first quarter was $1.42, well above the $1.11 consensus.  Stanley Black & Decker reported first quarter revenue of $3.33 billion, in line with $3.30 billion consensus.  Stanley Black & Decker gave 2019 EPS guidance of $8.50 to $8.70.  Stanley Black & Decker is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas

Global Health Care Stocks Trending in the News 

  • Anthem (ANTM) reported first quarter earnings that beat expectations.  Anthem first quarter EPS of $6.03 came ahead of $5.84 consensus.  Anthem first quarter revenue of $24.39 billion, a touch ahead of $24.19 billion consensus.  Anthem first quarter benefit expense ratio was 84.4%.  Anthem raised EPS guidance for the full year to $19.20 to $19.40, up from $19 to $19.30.  Anthem said it expects about $100 billion in operating revenue in 2019.  Anthem is rated “Attractive” in our US Large-Cap Global Top Stock Ideas 
  • Boston Scientific (BSX) reported first quarter earnings that beat expectations.  Boston Scientific first quarter EPS of $0.35 came just below $0.36 consensus.  Boston Scientific first quarter revenue of $2.49 billion, a touch below $2.51 billion consensus.  Boston Scientific provided EPS guidance for the second quarter of $0.35 to $0.37, with full year EPS of $1.54 to $1.58.  Boston Scientific is rated “Neutral” in our US Large-Cap Global Top Stock Ideas 
  • Thermo Fisher (TMO) reported first quarter earnings that beat expectations.  Thermo Fisher first quarter EPS of $2.81 came ahead of $2.73 consensus.  Thermo Fisher first quarter revenue of $6.12 billion, a touch ahead of $6.02 billion consensus.  Thermo Fisher provided EPS guidance for the full year of $12.02 to $12.22.  Thermo Fisher said it expects revenue of $25.17 billion to $25.47 billion in 2019.  Thermo Fisher is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas 

Global Power & Commodity Stocks Trending in the News

  • Occidental Petroleum (OXY) made a counter-offer for Anadarko Petroleum (APC), seeking to outbid Chevron (CVX).  Occidental is offering $76 per share in cash in its $57 billion offer.  Chevron offered $65 per share recently in a mixture of cash and stock.  Occidental is a smaller company with a balance sheet less hefty than Chevron so that despite the higher price, it may not be more attractive to investors.  Occidental has not said how it would fund Chevron’s massive LNG project in Mozambique.  Occidental Petroleum is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  Anadarko Petroleum is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.   Chevron is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  

 

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International Stock Markets Recap

  • The Euro Stoxx 600 is currently up +0.17%, the FTSE 100 is down -0.27%, the DAX has risen +0.81%, and the CAC 40 is up +0.05%
  • Technology (+3.09%), Real Estate (+0.98%), and Construction & Materials (+0.7%) stocks are the top performers in the Euro Stoxx 600 today
  • Telecommunications (-0.91%), Oil & Gas (-0.9%), and Utilities (-0.83%) stocks are the worst performers in the Euro Stoxx 600 today
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.99x
  • 148 stocks in the Euro Stoxx 600 are at 4-week highs while 38 stocks are at 4-week lows
  • 144 stocks in the Euro Stoxx 600 are overbought while 1 stock is oversold according to the 16-day RSI Measure
  • The Nikkei 225 finished down --0.27%, the Hang Seng ended down -0.53%, the Hang Seng China Enterprise declined -0.57%, and the CSI 300 was +0.28%
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.18x
  • 17 stocks in the Nikkei 225 hit 4-week highs while 6 stocks reached 4-week lows
  • 8 stocks in the Nikkei 225 closed overbought while 4 stocks closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished negative with the advance/decline ratio for the Hang Seng closing at 0.35x
  • 6 stocks in the Hang Seng hit 4-week highs while 12 stocks reached 4-week lows
  • 4 stocks in the Hang Seng closed overbought while 1 stock closed oversold according to the 16-day RSI Measure

 

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

 

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