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Is the Powell Put in Play? Fed Reserve starts meeting today as market clamors for a rate cut

Jun 19, 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

  • Amazon (AMZN) said it will lease an additional 15 Boeing 737-800 cargo aircraft from GE Capital Aviation Services.  Amazon continues to expand its Amazon Air fleet of planes and expects to have 70 planes in its fleet by 2021.  Amazon needs the planes to make more of its own deliveries after it instituted 1-day deliveries for its Prime customers.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Manchester United (MANU) was reiterated as a buy a Jefferies and its $26 price target was also reiterated.  Manchester management recently visited the US and Jefferies sent clients a note reiterating its call.  Jefferies said Manchester’s coach Ole Gunnar Solskjaer “can bring the team back to championship caliber play” and investors should keep the faith.  Manchester United is not rated in our Global Top Stock Ideas.

Global Information Technology Stocks Trending in the News

  • Adobe (ADBE) reported fiscal second quarter adjusted earnings that beat consensus.  Adobe posted fiscal second quarter EPS of $1.83, beating consensus of $1.78.  Revenue beat by a touch at $2.7 billion while $2.74 billion was expected.  Adobe gave fiscal third quarter EPS guidance of $1.95, below consensus of $2.05.  Adobe is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Apple (AAPL) would take 2-3 years to move just 15% of its production out of China, Wedbush said in a note to clients.  Apple would risk production disruptions and higher costs with such a move.  The note was in response to press reports that Apple is considering moving 15% to 30% of production out of China.  Wedbush reiterates how important a long-term deal with China is for Apple.  Apple is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Dish Network (DISH) is preparing a $6 billion bid for assets from Sprint (S) and T-Mobile (TMUS) as the two look to shed assets to win approval to merge from regulators.  Dish is hoping to acquire spectrum and Sprint’s Boost Mobile prepaid service as part of a deal.  Dish Network is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  Sprint is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  T-Mobile is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Facebook (FB) officially unveiled plans for its own cryptocurrency called Libra.  Facebook is promising a secure blockchain-based system backed by hard assets and designed for mainstream use.  Facebook has teamed up with a number of large companies to launch the coin.  Facebook will create a regulated subsidiary called Clariba for this new business, separating the social and financial data within the company.  Calibra will create a crypto wallet to pay for things and send money using Libra.  Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  Fox is not rated in our Global Top Stock Ideas.
  • Snap Inc. (SNAP) shares surged by double digits as analysts continue to grow more confident of a turnaround in the social media company. From its December low, Snap shares have now gained more than 190%. Snap’s latest breakout was driven by a price target hike from BTIG from $5/share to $20/share. Snap is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.
  • SunPower Corp (SPWR) surged the most in 6-years in the wake of an upgrade from Goldman Sachs.  SunPower was upgraded to buy and its price target was hiked 83% to $11.  The upgrade started the rally and then short sellers covering continued it as 28% of outstanding shares have been shorted.  SunPower is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.  
  • Trip Advisor (TRIP) was upgraded to buy from hold at SunTrust.  Trip Advisor Experiences business has reached critical mass and should see robust revenue growth over the new few years.  SunTrust does not believe this is reflected in its valuation but should be.  Trip Advisor is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.  

Global Industrials Stocks Trending in the News

  • Southwest Airlines (LUV) cut its capacity outlook to a decrease of 3.5%, lower than the 2-3% decrease it originally expected.  Southwest said the revision was primarily due to lower-than-expected completion factor as well as the grounding of the 737 Max.  Southwest said it continues to see strong demand and positive passenger yield trends.  Southwest Airlines is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.

Global Power & Commodity Stocks Trending in the News

  • ExxonMobil Corp (XOM) suffered a rocket attack in Iraq near its oil workers’ field camp.  Bloomberg reports there were no injuries in the attack.  The attack in Basra injured 3 workers from an Iraqi oil company.  Exxon evacuated to 20 workers at the camp over fear of more attacks.  ExxonMobil is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • US Steel (X), a huge beneficiary of US sanctions, has said it is idling 2 blast furnaces in the US and one in Europe.  US Steel has planned outages for maintenance and said it will leave the furnaces idle due to an expected glut in capacity next year.  The decision by US Steel comes as steel prices are falling in the US.  US Steel is rated “Top Short” in our US Large-Cap Global Top Stock Ideas
  • Vale (VALE) won a decision from Brazil’s Superior Court of Justice allowing it to resume production at its Brucutu mine.  The decision allows for the use of the Laranjeiras dam which is required to resume production.  With resumption, the average quality of Vale’s ore will improve.  Vale expects to produce 307 million to 332 million tons of iron ore in 2019.  Vale is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas.

Global Health Care Stocks Trending in the News

  • Merck (MRK) continues to be on the hunt for more acquisitions, WSJ reports.  Merck is looking for additional acquisitions to expand its portfolio of cancer treatments.  Merck is also looking to expand its vaccine offering and animal health products.  Merck 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 down -0.05%, the FTSE 100 is down -0.24%, the DAX has risen +0.08%, and the CAC 40 is up +0.08%
  • Utilities (-0.83%), Health Care (-0.37%), and Personal & Household Goods (-0.51%) stocks are the top performers in the Euro Stoxx 600 today
  • Banks (+0.72%), Travel & Leisure (-0.19%), and Automobiles & Parts (+0.99%) stocks are the worst performers in the Euro Stoxx 600 today
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.95x
  • 204 stocks in the Euro Stoxx 600 are at 4-week highs while 50 stocks are at 4-week lows
  • 64 stocks in the Euro Stoxx 600 are overbought while 10 stocks are oversold according to the 16-day RSI Measure
  • The Nikkei 225 finished up +1.72%, the Hang Seng ended up +2.56%, the Hang Seng China Enterprise up +2.45%, and the CSI 300 was +1.32%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 17.75x
  • 11 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 6 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 24x
  • 6 stocks in the Hang Seng hit 4-week highs while 1 stock reached 4-week lows
  • 2 stocks in the Hang Seng closed overbought while 0 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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