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Morning Brief

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Futures higher in wake of yesterday's tech tumble, today buyers flocking to S&P 500 in oversold territory

Jun 04, 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

  • Tesla (TSLA) is likely to see a recovery of sales in 2020 after recently disappointing sales news, Morgan Stanley writes.  This comes just a month after Morgan said the worst-case scenario for Tesla includes a $10 price target.  Morgan is maintaining its equal-weight rating and $230 price target.  Morgan sees a revenue jump in 2020 as the Model 3 enters new markets.  Tesla is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.    
  • Tiffany (TIF) reported first quarter same store sales that missed estimates with earnings that matched.  Tiffany's first quarter same store sale in constant currency dropped 2% while consensus was for a 1.2% drop.  Tiffany first quarter EPS of $1.03 came in line with consensus of $1.02.  Net sales of $1.0 billion came in line with $1.03 billion.  Tiffany boosted its quarterly dividend to 58 cents from 55 cents, trailing consensus of 60 cents.  Tiffany is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.    

Global Information Technology Stocks Trending in the News

  • Advanced Micro Devices (AMD) will license its graphic designs to Samsung (KOSE:A005930) for use in its smartphones.  AMD will license its designs for use in a segment of the market where it presently is absent.  The deal could potentially supply hundreds of millions of dollars in revenue to AMD, sending the shares sharply higher.  Samsung will get cutting-edge graphics as it seeks to differentiate its phones.   Advanced Micro Devices is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.    Samsung is not rated in our Global Top Stock Ideas 
  • Alibaba (BABA) was initiated at Loop Capital with a buy at Loop Capital and a price target of $250.  Alibaba is described as the world’s most complete digital retail ecosystem by Loop Capital.  Alibaba is Loop’s favorite tech stock, which they call their “favorite among internet mega-cap stocks.”   Alibaba is the “best play in China’s pivot to consumerism.”  Alibaba is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.
  • Alphabet’s (GOOGL) Google is gearing up for a legal battle with the US Justice Department.  The US government has indicated it is preparing to investigate the company over potential anti-trust concerns.  As Google has grown larger and more powerful in the age of data, many critics think it’s too powerful, especially with its internet search dominating the market.  No idea how long this could last.  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.    
  • Apple (AAPL) will fall under the jurisdiction of the Justice Department IF the US government decides to investigate the company for anti-trust violations, the Justice Department said today.  Prominent tech companies are under immense scrutiny for a number of their practices and the concentration of “power,” as critics argue, in just a few.  The announcement was made while Apple executives were on stage at Apple’s developer conference.  Apple is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. 
  • Netflix (NFLX) was upgraded to buy from hold at Loop Capital.  Netflix “has built an unstoppable lead in subscription lead in subscription video streaming” that puts it in a strong position.  Loop raised Netflix’s price target to $425.  Netflix has room to expand margin as it become a provider of video to the world.  Netflix is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.    
  • Square (SQ) is having issues with sending receipts to wrong emails after completing transactions, WSJ is reporting.  WSJ documents many cases in which customers receive receipts for transactions they know nothing about involving other customers cards.  Square matches contact details with transaction details and often a mismatch causes erroneous emails to go out.  Square responded to the report saying it has cut errors by over 50% and is shooting to eliminate them completely.  Square is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.    
  • Tencent (SEHK:700) is investing in UK fintech company TrueLayer, joining a $35 million funding round, as it targets fintech startups.  TrueLayer develops open-banking software.  The software allows people to share of aggregate financial information from different providers.  TrueLayer is expected to use the funding to expand across Europe.  Tencent is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.
  • Uber (UBER) disclosed it is under tax investigation in the US and there are potential investigations in other markets.  Uber said the IRS is looking at its taxes from 2013 and 2014.  Uber said some states and other jurisdictions are looking at its taxes.  Uber said its tax benefits are likely to be cut due to the company’s “transfer pricing positions.”  Uber is not rated in our Global Top Stock Ideas
  • Western Digital (WDC) had its price target cut to $55 from $60 at Deutsche Bank while its rating of buy was maintained.  Deutsche cited uncertainty around the trade war that is expected to weigh on Western Digital.  Estimates were cut to reflect the growing uncertainty with the trade tensions.  Western Digital is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.    

Global Industrials Stocks Trending in the News

  • Caterpillar (CAT) saw its price target cut at UBS to $115 from $125 while maintaining the sell rating.  UBS expects cut to construction activity in both the US and China.  Some of that will be offset by increased mining activity.  UBS sees the potential for further cuts to estimates in 2020 if trade tensions persist.  Caterpillar is rated "Neutral" in our US Large-Cap Global Top Stock Ideas and "Unattractive" in our US Industrials Global Top Stock Ideas. 
  • Navistar (NAV) boosted revenue guidance to around 5% above analysts’ consensus.  Navistar sees full year revenue of $11.25 billion to $11.75 billion, up from $10.75 billion to $11.25 billion.  Navistar reported second quarter revenue that beat consensus.  Second quarter revenue of $3.0 billion beat consensus of $2.69 billion.  Navistar is rated "Neutral" in our US SMID-Cap Global Top Stock Ideas and "Neutral" in our US Industrials Global Top Stock Ideas. 

Global Health Care Stocks Trending in the News

  • Quest Diagnostics (DGX) said up to 11.9 million patients’ personal and medical records may have been available to hackers in a data breach at a collections agency that works with Quest.  Quest reported that someone had access to all patients information for 8 months, information including credit card numbers, social security numbers and bank accounts.  Quest said it suspended the collection agency for now and is working with law enforcement.  Quest Diagnostics is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.

 

 

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International Stock Markets Recaps

  • The Euro Stoxx 600 is currently up +0.26%, the FTSE 100 is higher by +0.19%, the DAX has risen +0.92%, and the CAC 40 is up +0.2%
  • Telecommunications (+0.49%), Utilities (+0.06%), and Real Estate (+0.5%) stocks are the top performers in the Euro Stoxx 600 today
  • Basic Resources (+0.38%), Technology (-1.16%), and Oil & Gas (-0.05%) 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 1.49x
  • 23 stocks in the Euro Stoxx 600 are at 4-week highs while 229 stocks are at 4-week lows
  • 9 stocks in the Euro Stoxx 600 are overbought while 62 stocks are oversold according to the 16-day RSI Measure
  • The Nikkei 225 finished down --0.01%, the Hang Seng ended down -0.49%, the Hang Seng China Enterprise declined -0.86%, and the CSI 300 was -0.92%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 2x
  • 1 stock in the Nikkei 225 hit 4-week highs while 98 stocks reached 4-week lows
  • 3 stocks in the Nikkei 225 closed overbought while 70 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 0.47x
  • 0 stocks in the Hang Seng hit 4-week highs while 21 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 10 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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