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Risk-on and Rising! Global markets rally, US futures point to record territory for S&P 500 today after dovish Fed comments

Jun 20, 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

  • Carnival Cruise Lines (CCL) cut its full-year guidance for the second time in the last 3 months.  Carnival saw lower bookings and prices this year in the wake of the US banning Cuban stops for cruise ships.  Carnival sees adjusted EPS of $4.25 to $4.35, down from $4.35 to $4.55 previously.  In March, Carnival saw earnings as high as $4.80.  Carnival Cruise Lines is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
  • Darden (DRI) reported same store sales in the fiscal fourth quarter than trailed consensus.  Darden fiscal fourth quarter same store sales growth of 1.6% trailed consensus of 2.4%.  Fiscal fourth quarter EPS of $1.76 was a touch above consensus of $1.73.  Revenue of $2.23 billion matched consensus of $2.24 billion.  Darden gave 2020 EPS guidance of $6.30 to $6.45 while consensus is $6.46 with sales growing 1% to 2%.  Darden is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas
  • Harley-Davidson (HOG) is teaming up with Chinese motorcycle manufacturer Zhejiang Qianjiang Motorcycle Company (SZSE:000913) to develop 2 new, smaller motorcycles to compete in China.  Harley-Davidson is looking to expand growth outside the US and needs smaller motorcycles for that.  The first model is due by the end of the year.  Harley-Davidson is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  Zhejiang Qianjiang Motorcycle Company is not rated in our Global Top Stock Ideas.
  • Hershey (HSY) was downgraded to underweight from neutral at Piper Jaffray.  Hershey’s price target was raised to $125 from $122.  The downgrade is based on valuation, with Piper saying it trades at a premium to peers and that is not justified given its outlook.  Hershey has a stable, US-based portfolio of products that delivers consistent growth.  Hershey is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.
  • Kroger (KR) posted first quarter adjusted earnings that beat consensus.  Kroger first quarter adjusted EPS of 72 cents beat consensus of 71 cents.  Sales of $37.25 matched consensus of $37.22 billion.  Same store sales growth, ex-fuel, was 1.5%, trailing consensus of 1.8%.  Kroger is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • National Beverages Corp (FIZZ) shares fell after a report in Consumer Reports said the company does not have a license to operate in the state of Massachusetts.   In the Consumer Reports article, officials from the state of Massachusetts confirmed that is the case.  National Beverage did not issue any comment in relation to the report.  National Beverage Corp 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) saw its price target hiked to $226 from $216 at Macquarie while reiterating its buy rating.    Macquarie said Alibaba demonstrates “resilient” gross merchandise volumes.  Macquarie expects competition to remain fierce while growth and fundamentals remain solid at Alibaba.  Alibaba is rated “Attractive” in our Global Top Stock Ideas.
  • Dell (DELL) was initiated at Deutsche Bank with a buy rating and $62 price target.  Deutsche highlights that while IT spending is expected to slow for the rest of 2019, that is already priced into Dell.  Dell should see $11 earnings per share by 2022, Deutsche notes.  Dell is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Oracle (ORCL) reported adjusted revenue and earnings for the fiscal fourth quarter that beat consensus.  Oracle posted fiscal fourth quarter revenue of $11.14 billion, beating consensus of $10.94 billion.  Fiscal fourth quarter EPS of $1.16 beat consensus of $1.07.  Cloud services and license support revenue was $6.8 billion.  Oracle is rated “Attractive” 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

  • American Airlines (AAL) announced an order for 50 Airbus jets, opting for its new Airbus (ENXTPA:AIR) A321XLR long-range single-aisle planes.  The Airbus order was a blow to Boeing (BA) as American presently has a large fleet of 737 jets.  Boeing has plans for a new plane similar to the A321XLR but has need distracted with its 737 Max grounding.  The order from American, the largest carrier in the world, is an important endorsement for the new Airbus plane.  Boeing is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.  American Airlines is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.  Airbus is rated “Neutral” in our European Large-Cap Global Top Stick Ideas.  

Global Financials Stocks Trending in the News

  • Chubb (CB) saw its rating cut to underweight from neutral at Atlantic Securities.  Atlantic cited lower investment income going forward as a reason for the downgrade.  With investment income accounting for ~60% of income, Atlantic sees a big headwind for Chubb.  Chubb is not rated in our Global Top Stock Ideas.

 

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International Stock Markets Recaps

  • The Euro Stoxx 600 is currently up +0.61%, the FTSE 100 is higher by +0.38%, the DAX has risen +0.84%, and the CAC 40 is up +0.6%
  • Utilities (-0.03%), Health Care (+0.66%), and Personal & Household Goods (+0.56%) stocks are the top performers in the Euro Stoxx 600 today
  • Banks (-0.81%), Travel & Leisure (-0.4%), and Automobiles & Parts (+1.32%) 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 2.55x
  • 195 stocks in the Euro Stoxx 600 are at 4-week highs while 24 stocks are at 4-week lows
  • 41 stocks in the Euro Stoxx 600 are overbought while 11 stocks are oversold according to the 16-day RSI Measure
  • The Nikkei 225 finished up +0.6%, the Hang Seng ended up +1.23%, the Hang Seng China Enterprise up +1.46%, and the CSI 300 was +3.03%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 1.62x
  • 54 stocks in the Nikkei 225 hit 4-week highs while 4 stocks reached 4-week lows
  • 2 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 7.33x
  • 22 stocks in the Hang Seng hit 4-week highs while 0 stocks reached 4-week lows
  • 4 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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