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Do we have a deal? US-China to meet this week as priced-in trade deal seems ever more elusive

May 07, 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

  • Ferrari (RACE) reported first quarter results that beat expectations.  Ferrari first quarter adjusted ebitda was 311 million euros, ahead of 279.2 million euros consensus.  Ferrari posted first quarter revenue of 940 million euros, beating 865.9 million consensus.  First quarter EPS of 0.95 euros beat 0.83 euros consensus.  Ferrari said it will introduce 5 new models in 2019.  Ferrari is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas.
  • Tyson Foods (TSN) said today that it will introduce meatless protein product through 2019 as it looks to take on Beyond Meat (BYND).  Tyson held 6.5% of Beyond Meat and unloaded the shares just before its IPO last week, missing out on the 163% run-up in its first day of trading.  Tyson will introduce its meatless products on a limited basis mid-2019 with a more complete rollout later in the year.  Tyson Foods is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.  Beyond Meat is not yet rated in our Global Top Stock Ideas.

Global Information Technology Stocks Trending in the News

  • Advanced Micro Devices (AMD) said the US Department of Energy chose its chips for its next supercomputer.  Researchers at the Oak Ridge National Lab are building the supercomputer to work on artificial intelligence, weather patterns and subatomic particles.  The new machine with AMD chips will be 50 times faster than the current system when it comes online in 2021.  Advanced Micro Devices is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Alphabet’s (GOOGL) Google may introduce tools to limit tracking cookies, WSJ is reporting.  Google may introduce the tools for its Chrome browser at its developer conference next week.  The tools will limit cookies from third-party profit-seeking companies.  Importantly, the tools are not expected to hinder Google’s ability to collect user data.  Alphabet is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Anheuser-Busch InBev (BUD) confirmed its plans for an IPO for its Asian arm.  Anheuser-Busch InBev confirmed the plans wile reporting first quarter results that beat expectations.   Inbev is looking at plans to list the Asian arm on the Hong Kong exchange and use the proceeds to pay down some of its large debt load.  InBev did not give details of valuation but analyst estimate the unit will be valued between $40 billion and $50 billion.  Inbev has a market cap of about $130 billion in total.  Anheuser-Busch InBev is rated “Neutral” in our European Large-Cap Global Top Stock Ideas
  • Marvell Technology (MRVL) agreed to acquire Aquantia (AQ) in a $452 million deal.  Marvell agreed to pay $13.25 per share for Aquantia in cash for all outstanding shares.  Marvell said the deal will immediately be accretive to earnings and will generate run-rate synergies of $40 million annually after 12 months.  The deal is expected to close by the end of 2019.  Aquantia is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.  

Global Financial Stocks Trending in the News

  • AIG (AIG) report first quarter adjusted earnings that beat consensus strongly.  AIG reported first quarter EPS of $1.58, well ahead of $1.05.  First quarter ROE of 11.6% is a massive improvement over 7.7% a year ago.  AIG posted net investment income of $3.9 billion, up from $3.3 billion a year ago.  Results overall came above expectations and showed a huge improvement from a year ago.  AIG is rated “Top Short” in our US Large-Cap Global Top Stock Ideas
  • Banco Bradesco (BBD), Brazil’s second largest bank, is acquiring Florida-based BAC Florida Bank in a $500 million deal.  The deal will give Bradesco access to 13,000 private banking clients.  Bradesco has never had this size present outside of Brazil.  BAC Florida has $862 million in assets under custody.  Banco Bradesco is rated “Unattractive” in our Brazil All-Cap Global Top Stock Ideas

Global Industrials Stocks Trending in the News

  • Boise Cascade (BCC) reported first quarter sales that missed consensus.  Boise Cascade first quarter sales of $1.04 billion missed $1.18 billion consensus.  First quarter ebitda of $40.7 million also missed $41.1 million consensus.  Boise said it sees slower demand growth in 2019, saying extreme weather in the first quarter plus capacity additions due to come on line soon will weigh on results.  Boise Cascade is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas
  • Fluor (FLR) was downgraded to neutral from buy at Godman Sachs.  Fluor also saw its price target cut to $28 from $44, the lowest target in the market.  Goldman Sachs cited the “unclear medium-term margin outlook” in its downgrade of Fluor.  Fluor is transitioning to a new CEO and Goldman in not sure the company can maintain its backlog.  Fluor is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas  

Global Commodities & Energy Stocks Trending in the News

  • Anadarko Petroleum (APC) said on Monday that the offer from Occidental Petroleum (OXY) is superior to that it received from  Chevron (CVX).  Anadarko said it informed Chevron that the $33 billion deal it agreed to is terminated.  Chevron now has 4 business days to make a counteroffer and if it does not make one, Anadarko will owe Chevron a $1 billion breakup fee.  Occidental said it was pleased Anadarko has accepted its offer.  Occidental removed the need for a shareholder vote and was said to be key to moving forward.  Anadarko Petroleum is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.  Occidental Petroleum is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  Chevron is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Vale (VALE) suffered another production setback when a court ruled its massive Brucutu mine must stop production.  Brucutu produced 30 million tons of iron ore and was recently reopened only to have a court halt operations again.   Vale said with the disruption, annual production should be at the low end of its 307 to 332 million tons of guidance.  Vale is rated “Attractive” in our Brazil All-Cap Global Top Stock Ideas 

Global Healthcare Stocks Trending in the News

  • Allergan (AGN) reported Botox sales above consensus while upping full year EPS guidance.  Allergan reported Botox sales of $868 million, beating $761 million consensus.  First quarter EPS of $3.79 beat $3.55 consensus while revenue of $3.6 billion beat $3.56 billion consensus.  Allergan gave full year 2019 EPS guidance of $16.55 to $16.75, ahead of $16.43 consensus and full year revenue guidance of $15.1 billion to $15.4 billion, a hike from $15 billion to $15.3 billion.  Allergan is rated “Neutral” in our US Large-Cap Global Top Stock Ideas

 

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International Stock Markets Recaps

  • The Euro Stoxx 600 is currently down -0.42%, the FTSE 100 is down -0.92%, the DAX is down -0.47%, and the CAC 40 is down -0.57%
  • Real Estate (+1.33%), Telecommunications (+0.87%), and Utilities (+0.7%) stocks are the top performers in the Euro Stoxx 600 today
  • Banks (-1.26%), Oil & Gas (-1.08%), and Chemicals (-0.93%) 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 0.72x
  • 12 stocks in the Euro Stoxx 600 are at 4-week highs while 144 stocks are at 4-week lows
  • 23 stocks in the Euro Stoxx 600 are overbought while 14 stocks are oversold according to the 16-day RSI Measure
  • The Nikkei 225 finished down -1.51%, the Hang Seng ended up +0.52%, the Hang Seng China Enterprise up +0.24%, and the CSI 300 was +0.98%
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.26x
  • 9 stocks in the Nikkei 225 hit 4-week highs while 2 stocks reached 4-week lows
  • 10 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 2.57x
  • 1 stock in the Hang Seng hit 4-week highs while 35 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 5 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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