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He Said, She Said: Trump says "China broke the deal" as China says "Ready for fighting while talking"; Investors say SELL

May 09, 2019

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Market data as of 7am EST

 

US Stocks

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

  • Amazon (AMZN) is being accused of violating kids’ privacy right with its smart speakers.  A child advocacy group filed a complaint with federal authorities complaining that Amazon records conversations of kids on its Echo Dot Kids devices.  The complaint alleges that Amazon records the conversations and then stores them in the cloud, even after parents delete it.   The complaint states the actions violates federal online privacy rules.  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.
  • American Eagle (AEO) was downgraded by both RBC Capital and Wedbush.  RBC Capital cut American Eagle to neutral from buy while Wedbush cut to sector perform from outperform.  In both cases the downgrade was based on valuation.  American Eagles has had an impressive string of results and at this point trades at 14x forward earnings.  That valuation captures most of the anticipated improvements, both downgrades highlight.  American Eagle is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Office Depot (ODP) suffered a 2-notch downgrade from Bank of America Merrill Lynch, cutting it to underperform from buy.  Office Depot’s price target was cut to $2 from $4.  Merrill Lynch has been bullish on the stock and was anticipating a turnaround.  Office Depot disappointed recently with results and this left Merrill doubting if a turnaround will ever come.  Office Depot is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas 
  • Walmart (WMT) published a report on the earnings of its employees to rebut criticism that they are underpaid.  The average salary for a Walmart manager is $175,000 per year while full time employees earn on average $25,000 per year or $14.28 per hour.  Walmart has been expanding benefits and hiking pay both to rebut critics and better position itself in the extremely tight labor market that exists right now.  Walmart is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.  
  • Wendy’s (WEN) reported first quarter adjusted earnings that beat consensus.  Wendy’s first quarter adjusted EPS of 14 cents beat consensus of 12 cents.  First quarter revenue of $408.6 million beat consensus of $398.9 million.  Wendy’s reported same store sales of 1.3%, a touch below consensus of 1.4%.  Wendy’s is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  

Global Information Technology Stocks Trending in the News

  • Alphabet’s (GOOGL) Google is struggling to convert its music customers to paying customers.  Google’s YouTube was revamped about a year ago and its YouTube Music service is a paid subscription that Google is trying to convert its free users to.  More people listen to music on YouTube than any other streaming service.  Users, however, have grown accustomed to its free price and have been resistant to signing up for paid subscriptions.  Alphabet cited this as part of the reason for its $1 billion revenue miss.  Alphabet 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.
  • Intel (INTC) provided updated guidance to investors that was not well received.  Intel said it expects revenue growth in the low single digits over the next 3 years.  Intel expects EPS to grow in line with revenue during the same period.  Intel expects its PC revenue to be flat or fall while data center revenue will grow in the high single digits.  Intel is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Marriott International (MAR) reported first quarter earnings that beat consensus.  Marriott posted first quarter EPS of $1.41, beating consensus of $1.34.  First quarter revenue of $5.01 billion trailed consensus of $5.13 billion.  Marriott gave EPS guidance for the second quarter of $1.52 to $1.58 while consensus is $1.62.  Full year EPS guidance of $5.97 to $6.19, consensus is $6.09.  Marriott International is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Viacom (VIAB) reported fiscal second quarter sales that trailed consensus.  Viacom second quarter sales of $2.96 billion trailed $3.05 billion consensus.  Earnings beat with EPS of 95 cents beating 80 cents consensus.  Viacom saw a drop in international revenue that was the main source of its miss.  No update was given on its potential merge with CBS Corp. (CBS).  Viacom is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.  CBS Corp. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Walt Disney (DIS) reported fiscal second quarter adjusted earnings and revenue that beat consensus.  Disney first quarter adjusted EPS of $1.61 beat consensus of $1.58.  Fiscal second quarter revenue of $14.92 billion beat $14.54 billion expectations.  Disney saw media networks operating income grow to $2.19 billion from $1.3 billion q/q.  Disney CEO Robert Iger said he was “very pleased” with fiscal second quarter results.  Walt Disney is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Boeing (BA) convinced federal regulators that pilot new training for the new 737 Max, when introduced, was kept to a minimum, ex-employees allege.  Boeing convinced regulators the new version of the plane only required Level B training, which is a couple of hours on an iPad, and no time in a simulator.  Boeing wanted to limit the need for Level D training-which include extensive simulator time-so airlines could deploy the plane more quickly.  Boeing engineers convinced the FAA official in charge-someone with limited flight time-that the Level B training was sufficient.  Critics allege this may have contributed to the 737 Max crashed.  Boeing is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Staples Global Top Stock Ideas.  
  • Equifax (EFX) reported first quarter earnings in line with consensus.  Equifax reported first quarter adjusted EPS of $1.20, matching consensus.  Equifax provide adjusted EPS guidance of $1.32 to $1.37 while consensus with $1.50.  Full year adjusted EPS guidance is $5.60 to $5.80.  Equifax is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • ThyssenKrupp (XTRA:TKA) has abandoned its plan to split itself, separating its steel and capital goods businesses.  Since its announcement in September its stock has fallen 45%, reaching a 15-year low.   ThyssenKrupp is considering a listing of its prized asset, its elevator business.  ThyssenKrupp expects to make a final decision about that listing in the coming months.  ThyssenKrupp is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.

Global Commodities & Energy Stocks Trending in the News

  • Chevron (CVX) is walking away from its $33 billion bid to acquire Anadarko Petroleum (APC).  Chevron will collect its $1 billion breakup fee after Occidental Petroleum (OXY) beat it in the competition for Anadarko.  Chevron is five times larger than Occidental.  Chevron will use the breakup fee to increase share buyback by 25%.  Anadarko Petroleum is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.  Occidental Petroleum is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  Chevron is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Duke Energy (DUK) reported first quarter results that came in line with consensus.  Duke Energy first quarter EPS of $1.24 matched consensus of $1.24.  Duke reported first quarter operating revenue of $6.16 billion, trailing $6.31 billion consensus.  Duke Energy provided full year EPS guidance of $4.80 to $5.20 while consensus is presently $4.94.  Duke Energy is rated “Attractive” in our US Large-Cap Global Top Stock Ideas
  • Exelon (EXC) confirmed it is moving forward with closing the Three Mile Island nuclear power plant in Pennsylvania.  Exelon is making the move given that a bill to provide subsidies to keep them open has not moved forward in Pennsylvania’s legislature.  Exelon confirmed previously announced plans.  The plant will be closed by September 30th of this year.  Exelon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas

Global Health Care Stocks Trending in the News

  • Becton Dickinson (BDX) reported fiscal second quarter results that came in line while guidance trailed.   Becton Dickinson fiscal second quarter EPS of $2.59 came a touch ahead of $2.58 consensus.  Revenue of $4.20 billion trailed $4.23 billion expectation.  Becton Dickinson cut full year EPS guidance to $11.65 to $11.75, from $12.05 to $12.15;  and below present consensus of $12.07.  Becton Dickinson is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas

 

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European Stocks

  • The Euro Stoxx 600 is currently down -0.79%, the FTSE 100 is down -0.34%, the DAX is down -0.79%, and the CAC 40 is down -1.17%
  • Technology (-0.72%), Media (-0.96%), and Industrial Goods & Services (-0.94%) stocks are the top performers in the Euro Stoxx 600 today
  • Travel & Leisure (-0.95%), Utilities (-0.09%), and Real Estate (+0.52%) 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 0.29x
  • 29 stocks in the Euro Stoxx 600 are at 4-week highs while 188 stocks are at 4-week lows
  • 21 stocks in the Euro Stoxx 600 are overbought while 27 stocks are oversold according to the 16-day RSI Measure
  • The Nikkei 225 finished down --0.93%, the Hang Seng ended down -2.39%, the Hang Seng China Enterprise declined -2.27%, and the CSI 300 was -1.85%
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.15x
  • 5 stocks in the Nikkei 225 hit 4-week highs while 149 stocks reached 4-week lows
  • 4 stocks in the Nikkei 225 closed overbought while 33 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 0.09x
  • 1 stock in the Hang Seng hit 4-week highs while 26 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 5 stocks 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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