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Morning Brief

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Global stock markets tread water this morning ahead of US GDP release today

Apr 26, 2019

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Market data as of 7am EST

 

US Stocks Preview Ahead of the Open

  • Global stocks are little changed this morning with global investors treading water, waiting for US GDP data, in pre-market trading front-month Dow Jones minis -0.11%, S&P 500 minis -0.06% and Nasdaq 100 minis +0.09%
  • US stocks are likely to consolidate gains, with recent breakouts to new highs that seem sustainable, as it was confirmed with considerable momentum and breadth; fueling calls for a melt-up, according to Bloomberg
  • While addressing a meeting of 40 world leaders at its "Belt and Road" forum in Beijing, President Xi listed all the reform efforts China is undertaking at home, in a speech seemingly aimed directly at President Trump as they all top the list of his demands of Chinese reforms
  • President Xi, at the same forum, said there will be a "new direction" for the country's "Belt & Road" initiative amid complaints of rampant corruption and heavy debt for countries in which projects take place
  • President Abe of Japan is meeting with President Trump today in Washington as the two seek to forge deeper trade ties in a number of areas
  • US first quarter GDP will be released today with 2.3% y/y expected
  • US Core PCE will also be released with consensus of a 1.4% rise q/q
  • University of Michigan Sentiment index for April is expected to come at 97 today
  • Tech earnings so far: Towering Titans of Tech: Stellar Tech Earnings This Week so far, the Bar is high
  • Interesting read: Blame Thanos: Speculative- Grade Corporate Bond Yields Fall Below Comparable Loan Yields
  • The VIX is little changed this morning and is currently at 13.21 after closing at 13.25 yesterday
  • United States Oil Fund LP (USO) June 19 OTM Puts, iShares China Large-Cap ETF (FXI) May 3 OTM Calls and SPDR S&P 500 ETF Trust (SPY) 26 April OTM Calls are the most actively traded options contracts in US pre-market trading this morning
  • US 10-Year Treasury Bonds are higher with yields down -0.91 basis points to 2.5234%
  • The US Treasury 2s-10s Spread has widened 1.46 basis points to 0.22%
  • WTI Crude is currently down -1.06% to USD$65.14/bbl with the Brent-WTI spread down USD$-0.95 to USD$7.19/bbl
  • Gold is currently up 0.3% to USD$1281.02/oz
  • Check out our newest Stock Model Portfolio: LET'S GET HIGH-High PERFORMANCE, of course!-with our new MARIJUANA POT-FOLIO Stock Model Portfolio!

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

  • Archer-Daniels Midland (AMD) reported first quarter earnings well below expectations.  ADM reported first quarter EPS of 46 cents, missing the 60 cents consensus.  First quarter revenue of $15.3 billion missed the $15.59 billion consensus.  ADM said it will create a new ethanol subsidiary to allow it more options, such as a spin-off, for that business unit.  ADM will be offering early retirement to some employees in the US and Canada.   ADM is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas
  • Amazon (AMZN) delivered first quarter earnings well above consensus.  Amazon delivered first quarter EPS of $7.09 while consensus was $4.67.  Amazon net sales in the first quarter were $59.7 billion, matching consensus.  Amazon reported AWS sales of $7.7 billion, posting 41% y/y growth, matching consensus of $7.67 billion.  Amazon gave 2Q sales guidance of $59.5 billion to $63.5 billion.  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.
  • Colgate-Palmolive (CL) posted first quarter earnings and revenue in line.  Colgate-Palmolive first quarter adjusted EPS of 67 cents came in line with 66 cents consensus.  Revenue in the first quarter of $3.88 billion matched $3.86 billion.  Colgate-Palmolive reiterated full year guidance of 2% to 4% organic sales growth with net sales growth flat to slight growth.  Colgate-Palmolive is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas
  • Daimler (DB:DAI) reported first quarter results that matched consensus.  Daimler posted first quarter ebit of 2.80 billion euros while consensus was 2.78 billion.  Total sales of 39.7 billion euros came a touch ahead of 39.28 billion euros.  Daimler first quarter profit was 2.15 billion euros.  Analysts comment that this should be the worst quarter of 2019 as Daimler consider laying off up to 10,000 jobs.  Daimler is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas
  • Ford Motor Co (F) reported earnings that beat consensus, bearing fruit from its turnaround efforts.  Ford reported first quarter adjusted EPS of 44 cents, ahead of the 26 cents expected.  Revenue in the first quarter of $37.2 billion beat the $36.99 consensus.  Ford is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Goodyear Tire & Rubber (GT) report better than expected earnings.  Goodyear first quarter adjusted EPS of 19 cents came well ahead of 6 cents consensus.  Revenue of $3.6 billion missed $3.71 billion consensus.  Goodyear saw weakness in its Asian business.   Goodyear Tire & Rubber is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas
  • Mattel (MAT) posted first quarter sales and earning that beat consensus handily.   Mattel reported first quarter adjusted loss of 44 cents per share, better than the 58 cents per share loss expected.  Revenue in the first quarter of $689.2 million beat the $648 million consensus.  Barbie and Hot Wheels saw strong sales growth.  Mattel 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

  • Intel (INTC) reported earnings in line and slashed guidance.  Intel reported first quarter adjusted EPS of 89 cents, ahead of87 cents expected.  Revenue in the first quarter of $16.1 billion came in line with $16.03 consensus.  Intel gave second quarter EPS guidance of about 89 cents and sees full year EPS about $4.35, a cut from $4.60 previously.  Intel is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • PayPal (PYPL) said it will invest $500 million in the Uber (UBER) IPO.  Uber said it lowered its target valuation to $80 billion to $90 billion, down from $100 billion.  Uber is seeking to raise $9 billion in its IPO.  If successful, Uber’s IPO will rank in the top 10 of all time.  PayPay is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • Capital One Financial (COF) reported earnings and revenue that beat consensus.  Capital One reported first quarter adjusted EPS of $2.90, ahead of $2.70 expected.  Revenue in the first quarter of $7.1 billion beat the $7.03 billion consensus.  Capital One Financial is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.

Global Power & Commodity Stocks Trending in the News

  • ExxonMobil (XOM) reported first quarter earnings that missed expectations.  ExxonMobil first quarter EPS of 55 cents missed 72 cents consensus.  ExxonMobil total production of 3.98 mboe/d, in line with 4.01 mboe/d consensus.  ExxonMobil suffered weak prices in both the oil and natural gas markets as compared with the previous quarter.  ExxonMobil has total capital expenditures of $6.89 billion in the first quarter.  ExxonMobil is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas
  • Glencore Plc (LSE:GLEN) is under investigation by the Commodities Futures Trading Commission for possible corrupt practices.  Glencore is being investigated by the US Justice Department, FBI as well as authorities in Brazil in relation to the “Car Wash” bribery scandal.  Glencore is also being looked at in connection with bribery in Nigeria.  Glencore is rated “Neutral” in our European Large-Cap Global Top Stock Ideas and “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas

Global Industrial Stocks Trending in the News

  • American Airlines (AAL) reported first quarter earnings in line.  American reported first quarter EPS if 52 cents while consensus was 51 cents.  American reported first quarter revenue of $10.58 was in line with $10.6 billion consensus.  American gave full year EPS guidance of $4.00 to $6.00, present consensus is $5.61.  This is a huge cut in guidance from the original $5.50 to $7.50.  American Airlines is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas
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International Stock Markets Recap

  • The Euro Stoxx 600 is currently up +0.12%, the FTSE 100 is down -0.16%, the DAX has risen +0.14%, and the CAC 40 is up +0.19%
  • Utilities (+0.25%), Health Care (+0.89%), and Travel & Leisure (+0.07%) stocks are the top performers in the Euro Stoxx 600 today
  • Automobiles & Parts (+0.87%), Basic Resources (-0.99%), and Construction & Materials (+0.07%) 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 1.07x
  • 108 stocks in the Euro Stoxx 600 are at 4-week highs while 48 stocks are at 4-week lows
  • 100 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 --0.22%, the Hang Seng ended up +0.19%, the Hang Seng China Enterprise up +0.08%, and the CSI 300 was -1.33%
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.58x
  • 14 stocks in the Nikkei 225 hit 4-week highs while 30 stocks reached 4-week lows
  • 9 stocks in the Nikkei 225 closed overbought while 4 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 1.5x
  • 3 stocks in the Hang Seng hit 4-week highs while 7 stocks 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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