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A pleasing easing? Hopes for rate cuts fuel risk-on again as global markets inch higher today

Jun 06, 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

  • Five Below (FIVE) reported same store sales that missed with adjusted earnings that beat consensus.  Five Below posted first quarter same store sales growth of 3.1%, trailing consensus of 3.8%.  First quarter EPS of 46 cents beat consensus of 35 cents.  Five Below hiked full-year EPD guidance to $3.11 to $3.18, up from  $3.00 to $3.07, with net sales of $1.87 billion to $1.89 billion.  Five Below is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.   
  • JM Smucker (JMS) reported fiscal fourth quarter adjusted earnings that beat consensus.  JM Smucker reported fiscal fourth quarter adjusted EPS of $2.08, beating consensus of $1.95.  Fourth quarter revenue of $1.9 billions trailed consensus of $1.93 billion.  JM Smucker provided 2020 EPS guidance of $8.45 to $8.65, well above consensus of $8.24.  JM Smucker is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.    
  • Mondelez (MDLZ) has ended talks to acquire the international brands from Campbell Soup Company (CPB), CNBC reports.   Campbell had hoped to get at least $3 billion for the unit and the offer from Mondelez was below that.  Talks could not agree on an acceptable valuation and ended recently.  Neither company would comment on the report.  Campbell Soup Company is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.  Mondelez is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.    
  • Tesla (TSLA) is reported to have sold a record number of cars in North America, according to a report from Electrek.  Tesla sold 33,000 cars so far in the quarter, Electrek reports, with 2,512 cars sold in June.  The news came from calls with sales executives who were not identified.  Tesla is rated “Top Short” 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

  • Advanced Micro Devices (AMD) was upgrade to equal-weight from underweight at Morgan Stanley.  AMD is “well set for 2020” according to Morgan Stanley.  AMD should see “a period of sustained profits” with cloud related products key to their growth.  Advanced Micro Devices is rated is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas
  • Alibaba (BABA) has signed a memorandum of understanding to form an e-commerce JV with Russian firms MegaFon, Mail.ru and Direct Investment Fund.  Alibaba will take a 49.9% in the JV and made the announcement after receiving anti-trust approval from Russian authorities.   Alibaba will contribute its Russian businesses plus $100 million.  Alibaba had previously set up a $2 billion venture fund in Russia to expand its presence.  Alibaba is rated “Attractive” in our China All-Cap Global Top Stock Ideas
  • Alphabet’s (GOOGL) YouTube said it is committed to removing hateful speech from its platform.  YouTube said it is stepping up efforts to remove any content that is hateful and seeks to glorify the discrimination of any group, race or sex.  YouTube will also remove content that claims factual events did not occur.  YouTube is under pressure as are many other platforms to remove harmful content.  Alphabet is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas
  • Baidu (BIDU) reported that one of the most searched terms now in China is “find a job.”  Baidu’s news highlights the growing challenge for China’s labor market.  China’s economy has been under stress and the Baidu search data confirms the labor market is struggling as the Chinese economy slows.  Baidu is rated “Unattractive” in our China All-Cap Global Top Stock Ideas
  • Cloudera (CLDR) slashed its revenue forecast for the year, sending the stock lower and leading 4 brokers to cut their ratings and targets.  Cloudera cut its full-year revenue guidance to $745 million to $765 million, down from $835 million to $851 million.  Cloudera also announced its CEO is stepping down.  Cloudera saw its price target cut by ~50% by most brokers to the $7 to $8 range.  Cloudera is rated is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas
  • Roku (ROKU) touched record territory today after Guggenheim upgraded the stock to buy from hold.  Roku has “great secular tailwinds” behind it for streaming video, Guggenheim writes.  Roku saw its price target hiked to $119 from $75.  Roku has surged 260% since its December low.  Roku is rated “Top Short” in our US Large-Cap Global Top Stock Ideas
  • Tencent (TCEHY, SEHK:700) plans to roll out Call of Duty Mobile to markets in the US, Europe and Latin America.  Tencent is rolling out the mobile game globally as it looks for new growth opportunities while its local Chinese market faces near-term uncertainty.  Call of Duty Mobile is still in beta testing and should be fully rolled out in the near-term.  Tencent is rated “Top Buy” in our China All-Cap Global Top Stock Ideas
  • Uber (UBER) is reportedly getting ready to offer helicopter rides to JFK airport in NYC soon.  Uber customers will be able to book a helicopter ride from Manhattan’s East River heliport to the JFK airport for about $200.  The service will be called Uber Copter.  Uber plans to expand the service to other cities over time.  Uber is not rated in our Global Top Stock Ideas.

Global Industrial Stocks Trending in the News

  • Boeing (BA) is in the middle of negotiations with Chinese airlines for an order of about 100 twin-aisle wide-body jets.  The order would be for Boeing’s 787 and new 777-9 variant which has yet to fly.  The negotiations have been going on amid the trade war between the US and China.  No deal is imminent, press reports highlight, and it’s hard to know when a deal could be announced give the trade spat.  Boing is rated "Unattractive" in our US Large-Cap Global Top Stock Ideas and " Unattractive" in our US Industrials Global Top Stock Ideas. 

 

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International Stock Markets Recaps

  • The Euro Stoxx 600 is currently up +0.64%, the FTSE 100 is higher by +0.67%, the DAX has risen +0.72%, and the CAC 40 is up +0.65%
  • Utilities (+1.34%), Banks (+0.47%), and Basic Resources (+0.56%) stocks are the top performers in the Euro Stoxx 600 today
  • Retail (+0.4%), Health Care (+0.91%), and Construction & Materials (+0.29%) 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 2.31x
  • 53 stocks in the Euro Stoxx 600 are at 4-week highs while 13 stocks are at 4-week lows
  • 9 stocks in the Euro Stoxx 600 are overbought while 11 stocks are oversold according to the 16-day RSI Measure
  • The Nikkei 225 finished down --0.01%, the Hang Seng ended up +0.26%, the Hang Seng China Enterprise declined -0.1%, and the CSI 300 was -0.9%
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.36x
  • 14 stocks in the Nikkei 225 hit 4-week highs while 1 stocks reached 4-week lows
  • 2 stocks in the Nikkei 225 closed overbought while 3 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 8 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 6 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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