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Trade War On!! US tariffs are back, Trump says "no need to rush" for a deal, US futures falling

May 10, 2019

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Market data as of 7am EST

 

US Stocks Preview Ahead of the Open

  • With the return of tariffs this morning, European and Chinese stocks are higher while US futures are lower pre-market with front-month Dow Jones minis -0.23%, S&P 500 minis -0.36% and Nasdaq 100 minis -0.21%
  • President Trump tweeted this morning there is "no need to rush" to reach a trade deal with China
  • China has said it is ready to retaliate with its own tariffs though has not yet indicated what that will be
  • US CPI for April will print today with consensus for 0.4% rise
  • A Bloomberg survey showed investors believe China will increase stimulus for the domestic economy in the wake of the reinstatement of tariffs
  • The VIX is moving up this morning and is currently at 19.28 after closing at 19.10 yesterday
  • SPDR S&P 500 ETF Trust (SPY) May 10 & May 17 OTM Puts  iShares MSCI Emerging Markets ETF (EEM) June 17 and July 19 OTM Puts are the most actively traded options contracts in US pre-market trading this morning
  • US 10-Year Treasury Bonds are lower with yields up 1.78 basis points to 2.4601%
  • The US Treasury 2s-10s Spread has widened 0.76 basis points to 0.19%
  • WTI Crude is currently down -0.68% to USD$61.7/bbl with the Brent-WTI spread up USD$1.8 to USD$9.75/bbl
  • Gold is currently little changed 0.13% to USD$1285.71/oz

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

  • 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 (BKNG) reported first quarter adjusted EPS that missed consensus and cut full year EPS guidance.  Booking posted first quarter EPS of $11.17, behind $11.32 consensus.  Booking cut second quarter adjusted EPS guidance to $22.25 to $22.60, below consensus of $22.68.  Booking is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary 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.

Global Industrials Stocks Trending in the News

  • 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 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.

 

 

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International Stock Markets Recaps

  • The Euro Stoxx 600 is currently up +0.85%, the FTSE 100 is higher by +0.47%, the DAX has risen +1.27%, and the CAC 40 is up +0.87%
  • Technology (+1.09%), Media (+0.89%), and Industrial Goods & Services (+1.2%) stocks are the top performers in the Euro Stoxx 600 today
  • Travel & Leisure (+0.61%), Utilities (+0.96%), and Real Estate (-0.11%) stocks are the worst performers in the Euro Stoxx 600 today
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 7.96x
  • 31 stocks in the Euro Stoxx 600 are at 4-week highs while 275 stocks are at 4-week lows
  • 11 stocks in the Euro Stoxx 600 are overbought while 61 stocks are oversold according to the 16-day RSI Measure
  • 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 40 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 12 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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