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Party on Mr Powell! Global stocks extend rally today in wake of Powell signalling open to cut rates if needed

Jun 05, 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

  • American Eagle (AEO) reported first quarter adjusted EPS that beat consensus.  American Eagle posted first quarter adjusted EPS of 24 cents, beating consensus of 21 cents.  American Eagle reported revenue in the first quarter of $886.3 million, ahead of $855.5 consensus.  Same store sales grew 6% in the first quarter, well above 3.1% consensus.  American Eagle provided second quarter adjusted EPS guidance of 30 to 32 cents, below consensus of 35 cents.  American Eagle is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.    
  • Calares (CAL) saw its price target cut to $28 from $32 at Needham.  Calares’ buy rating was maintained.  Needham believes the softness in comps seen in the first quarter will persist into the second quarter.  The third quarter should see improvement for Calares, Needham adds.  The inventory situation should improve by then as well.  Calares is rated “Top Buy” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Campbell Soup Co (CPB) reported fiscal third quarter adjusted earnings that beat consensus.  Campbell Soup reported fiscal third quarter adjusted EPS of 56 cents, beating consensus of 47 cents.  Third quarter net sales of $2.18 billion trailed consensus of $2.36 billion.  Campbell Soup provided full year adjusted EPS guidance of $2.50 to $2.55.  Campbell Soup is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.
  • Carnival Cruise Lines (CCL) is set to suffer as the US State Department said it will no longer allow cruise ships and other vessels to make stops in Cuba.  The US cited Cuba’s actions in Venezuela and it's causing the humanitarian crisis there.  The US government action caught the industry by surprise when announced.  Cruise companies have been adding sailings to Cuba recently as demand to go there remains strong.   Carnival Cruise Lines is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.    
  • Cracker Barrel (CBRL) reported fiscal third quarter EPS that beat consensus.  Cracker Barrel fiscal third quarter EPS of $2.09, beating consensus of $2.07.  Same store sale grew 1.3%, just above 1.2% expected.  Fiscal third quarter revenue of $739.6 million beat consensus of $721.4 million.  Cracker Barrel boosted its regular quarterly dividend to $1.30 per share from $1.25.  Cracker Barrel also declared a special dividend of $3.00 per share.  Cracker Barrel is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.    
  • Ford Motor Co (F) saw its joint venture in China, called Changan Ford Automobiles, fined for anti-trust violations by Chinese authorities.  Ford will be fined $26 million for restricting retailers’ sale price in the city of Chongqing.  The move is China pressuring US companies as a result of the trade war and actions against other US companies is almost guaranteed.  Ford Motor Co is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • GameStop (GME) shares slid after the company reported a complete cut to its dividend.  GameStop also said the rest of the year “will probably be tough.”  Not what investors want to hear.  GameStop’s CEO said management is confident that redirecting capital to debt reduction is the right move for the company.  Analysts comments focus on the fear that management is not confident in GameStop’s ability to generate cash going forward.  GameStop is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.    
  • Walmart (WMT) will get a visit from socialist and presidential candidate Bernie Sanders.  Sanders will hold a protest at the annual shareholders meeting of Walmart in an attempt to pressure Walmart to improve working conditions.  Sanders is aiming to attract working class democratic voters with his Walmart protest, Walmart has been a frequent target of Sanders’ tirades.  Walmart is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.

Global Information Technology Stocks Trending in the News

  • NXP Semiconductor (NXPI) was upgraded to hold from sell at Stifel.  NXP Semiconductor saw its price target hiked to $95 from $85 as well.  Stifel cited reduced debt risk and greater confidence there won’t be any additional cuts to estimates.  NXP Semiconductor could take advantage of lower interest rate to further refinance its debt.  NXP Semiconductor is not rated on our Global Top Stock Ideas 
  • Salesforce.com (CRM) reported first quarter revenue and earnings that beat expectations.  Salesforce.com posted first quarter revenue of $3.74 billion, up 24%, beating consensus of $3.68 billion.  First quarter adjusted EPS of 93 cents, well above 61 cents consensus.  Salesforce.com provided full year EPS guidance of $2.88 to $2.90 and revenue of $16.1 billion to $16.25 billion.  Salesforce.com is rated “Neutral” 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

  • Mitsubishi Heavy Industries (TSE:7011) is on talks to buy Bombardier’s (TSX:BBD.B) regional get business.  Mitsubishi Heavy Industries is in the process of designing Japan’s first jetliner since the 1960s.  Mitsubishi said no decision has been made yet.  Press reports that an announcement could come at the Paris Air Show that begins June 17th.  Mitsubishi Heavy Industries is rated “Neutral” in our Japan Large-Cap Global Top Stock Ideas.  Bombardier is rated “Neutral” in our Canada All-Cap Global Top Stock Ideas
  • United Airlines (UAL) is celebrating the UN’s Environment Day by flying “planet flight.”  United will fly from Chicago to Los Angeles today with a minimal environmental footprint.  On the flight United will generate zero cabin waste and fly on a mixture of biofuels.  United will by offsetting credits for any air pollution it generates.  United is trying to show the efforts airlines can make for the environment.  United Airlines is rated "Attractive" in our US Large-Cap Global Top Stock Ideas and "Neutral" in our US Industrials Global Top Stock Ideas. 

Global Financial Stocks Trending in the News

  • Wells Fargo (WFC) has pledged $1 billion to help with affordable housing initiatives.  Well Fargo made the announcement as part of its pledge to spend 2% of its profits on philanthropy.  Wells Fargo will also focus its efforts on helping small business after donating $444 million to 11,000 nonprofits last year.  Wells Fargo 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 +0.45%, the FTSE 100 is higher by +0.54%, the DAX has risen +0.44%, and the CAC 40 is up +0.57%
  • Utilities (+0.51%), Banks (-0.43%), and Basic Resources (+0.16%) stocks are the top performers in the Euro Stoxx 600 today
  • Retail (+0.93%), Health Care (-0.2%), and Construction & Materials (+0.82%) 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 2.7x
  • 32 stocks in the Euro Stoxx 600 are at 4-week highs while 72 stocks are at 4-week lows
  • 5 stocks in the Euro Stoxx 600 are overbought while 16 stocks are oversold according to the 16-day RSI Measure
  • The Nikkei 225 finished up +1.8%, the Hang Seng ended up +0.5%, the Hang Seng China Enterprise up +0.04%, and the CSI 300 was -0.04%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 14x
  • 5 stocks in the Nikkei 225 hit 4-week highs while 26 stocks reached 4-week lows
  • 1 stock in the Nikkei 225 closed overbought while 30 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 2.13x
  • 0 stocks in the Hang Seng hit 4-week highs while 13 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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