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Rekindled Risk-Appetite: Markets and US futures turn positive this morning amid rising global tensions

Jun 13, 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

  • Hertz Global (HTZ) announced it will distribute subscription rights to shareholders to buy almost 58 million shares.  Each right entitles holders to purchase 0.688285 shares at $12.95.  Carl Icahn and his affiliates, holders of 28.8% of outstanding shares, plan to fully subscribe.  Proceeds will be used to pay down debt.  Hertz Global is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.   
  • Lululemon (LULU) reported first quarter earnings that beat consensus.  Lululemon reported first quarter EPS of 74 cents, beating consensus of 70 cents.  First quarter same store sales in constant currency grew 8%, above 5.2% consensus.  Net revenue in the quarter of $782.3 million, beating $756.3 million consensus.   Lululemon gave full year revenue guidance of $3.73 billion to $3.77 billion.  Lululemon is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • RH (RH), previously known as Restoration Hardware, upped guidance for the year and said it is mitigating the costs of the tariffs on China.  RH had imported 41% of its products from China and said it has renegotiated prices lower from suppliers to reduce the effects of the tariffs.  RH said full year sales will be $2.64 billion to $2.66 billion, up from $2.59 billion to $2.64 billion.  RH is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Target (TGT) announced a same-day delivery option is no available for online orders.  Target said it will offer $9.99 same-day delivery service using Shipt’s delivery service.  Target touts the options as it does not require any subscription to be bought.  Target said 65,000 items can now be delivered using the service.  Target is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Tyson Foods (TYS) is entering the veggie protein market with a hybrid burger.  Tyson is set to introduce a burger patty that is half pea protein, half angus beef.  Tyson expects its patties to be a “billion-dollar brand.”  Tyson’s CEO said he expects to be a leader in the space.  Tyson Foods is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.

Global Information Technology Stocks Trending in the News

  • Alibaba (BABA) has confidentially filed for its Hong Kong share listing, according to Bloomberg.  Alibaba is expected to raise up to $20 billion with its Hong Kong listing.  Alibaba has chosen China International Capital Corporation (SEHK:3908) and Credit Suisse Group (SWX:CSGN) to lead its listing in Hong Kong, Bloomberg previously reported.  A listing that size would be the largest in Hong Kong since 2010.  Alibaba is rated “Attractive” in our China All-Cap Global Top Stock Ideas.  China International Capital Corporation is rated “Unattractive” in our China All-Cap Global Top Stock Ideas.  Credit Suisse Group is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Juniper Networks (JNPR) was upgraded at Rosenblatt Securities to neutral from sell.  Juniper’s target price was hiked to $27 from $24.   Juniper should see growing margins on increased spending to upgrade its installed MX routers ahead of the 5G roll-out.  Anti-Chinese sentiment will also help Juniper.  Juniper Networks is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Lam Research (LRCX) was downgraded to in-line from outperform at Evercore ISI.  Lam Research’s price target was cut to $195 from $225 as well.  Evercore sees a slower recovery in memory demand which will only come in the second half of 2020.  Lam Research will have trouble moving higher any time soon, Evercore notes.  Lam Research 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) is experimenting with turning its shows into video games as it seeks to further leverage its media content.  Netflix will release a Stranger Things video game in conjunction with the release of its show by the same name.  Netflix does not develop the games itself but licenses the names for others to create the games.  Other games are planned in the near future.  Netflix is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.

Global Industrial Stocks Trending in the News

  • American Airlines (AAL) said its managers will fly on test flights of the Boeing (BA) 737 Max before any passengers do.  American is trying to build confidence in the aircraft before it returns to service.  Executives at American plus other employees will.  American announced the move at its annual shareholders meeting.  American Airlines is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.  Boeing is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.   

Global Financial Stocks Trending in the News

  • BB&T (BBT) and SunTrust (STI) have chosen the name Truist for the new bank that will result from the merger of the two.  For months BB&T and SunTrust have been asked what the new name would be and it has arrived at underwhelming praise.  When the merger is complete, Truist will be the sixth largest bank in the US.  BB&T is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  SunTrust is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.

Global Healthcare Stocks Trending in the News

  • Johnson & Johnson (JNJ) has a sales strategy with opioids similar to that of a drug dealer, a pharmaceutical industry critic claimed in court testimony.  The critic said J&J’s use of coupons for free pain patches was improper and contributed to the opioid epidemic.  J&J objected to that characterization in court and the judge said he will not consider that testimony.  Johnson & Johnson is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas

 

 

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International Stock Markets Recaps

  • The Euro Stoxx 600 is currently up +0.17%, the FTSE 100 is higher by +0.2%, the DAX has risen +0.37%, and the CAC 40 is up +0.01%
  • Utilities (+0.07%), Banks (+0.1%), and Basic Resources (+0.77%) stocks are the top performers in the Euro Stoxx 600 today
  • Retail (-0.34%), Health Care (+0.49%), and Construction & Materials (+0.48%) stocks are the worst performers in the Euro Stoxx 600 today
  • Investor sentiment for European stocks is neutral with the advance/decline ratio for the Euro Stoxx 600 currently at 1.18x
  • 100 stocks in the Euro Stoxx 600 are at 4-week highs while 19 stocks are at 4-week lows
  • 35 stocks in the Euro Stoxx 600 are overbought while 8 stocks are oversold according to the 16-day RSI Measure
  • The Nikkei 225 finished down --0.46%, the Hang Seng ended down -0.05%, the Hang Seng China Enterprise declined -0.21%, and the CSI 300 was -0.15%
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.29x
  • 42 stocks in the Nikkei 225 hit 4-week highs while 2 stocks reached 4-week lows
  • 4 stocks in the Nikkei 225 closed overbought while 0 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 1.27x
  • 5 stocks in the Hang Seng hit 4-week highs while 1 stock reached 4-week lows
  • 1 stock in the Hang Seng closed overbought while 2 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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