Jobs Jitters: All eyes on US jobs report this morning as global markets move higher
Jun 07, 2019
Market data as of 7am EST
US Stocks Preview Ahead of the Open
- Green screens abound this morning with global markets and US futures moving higher, front-month Dow Jones minis are +0.33%, S&P 500 minis +0.35% and Nasdaq 100 minis +0.46%
- The US jobs report comes this morning and consensus is for an addition of 175,000 jobs with the unemployment rate holding steady at 3.6%
- Investors are nervous after the huge ADP private jobs data miss earlier in the week: Paucity of Positions: ADP data today shows fewest new jobs added in May since 2010
- There has been no additional word on the potential for the US to delay tariffs on Mexico, all signs are that they will start on Monday
- China's Central Bank, the People's Bank of China, said it has "tremendous" policy room to adjust monetary policy if needed given the trade war raging, said governor Yi Gang in a Bloomberg interview
- Gang added that he is not wedded to any particular level on the yuan, and that market forces should determine the level
- German Industrial Production dropped 1.9% in April, the most in 4 years
- Trade War Update: Trials and Tribulations of Trade - The latest from the Trade War front lines
- The Ore Score: The Party's Over? Iron Ore Falling on Increased Shipments and Growth Concerns
- Top Buy Quality Value Stocks: Just in time for these rocky markets - TOP BUY Quality Value Stocks your portfolio should have NOW!
- Negative Sentiment Report: Feelin' Blue: Top Trending Russell 1000 Stocks by Negative Sentiment
- The VIX is little changed this morning and is currently at 15.48 after closing at 15.93 yesterday
- SPDR S&P 500 ETF Trust (SPY) June 7 OTM Calls & Puts, SPDR Bloomberg Barclays High Yield Bond ETF (JNK) Sept 20 OTM Puts and Cloudera (CLDR) June 18 OTM Puts are the most actively traded options in today's pre-market
- US 10-Year Treasury Bonds are lower with yields up 0.85 basis points to 2.1259%
- The US Treasury 2s-10s Spread has widened 1.36 basis points to 0.25%
- WTI Crude is currently up 1.76% to USD$52.59/bbl with the Brent-WTI spread down USD$-1.46 to USD$10.83/bbl
- Gold is currently little changed -0.15% to USD$1333.34/oz
Stocks Trending in the News
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Global Consumer Stocks Trending in the News
- Barnes & Noble (BKS) is close to a deal seeing itself acquired by Elliott Management, WSJ reports. Barnes & Noble has suffered years of decline amid numerous turnaround plans, all unsuccessfully. It is being reported the auction for Barnes Noble is coming near to an end. Barnes & Noble’s market cap is just north of $300 million. Barnes & Noble is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
- Beyond Meat (BYND) provided a revenue forecast above consensus. Beyond Meat said it expects revenue to exceed $210 million this year, above the $205 million consensus. Last year it generated $88 million in revenue. Beyond Meat has seen its shares rise 400% since its IPO. Beyond Meat is not rated in our Global Top Stock Ideas.
- Caesars Entertainment Group (CZR) in talks and close to a deal to combine with rival Eldorado Resorts Inc (ERI), according to press reports. Caesars and Eldorado are trying to finalize a cash and stock offer that would result in Eldorado running the combined entity. Caesars is one of the largest casino operators with over 50 casinos in 13 states. Caesars has a market cap of $6 billion with $9 billion in debt while Eldorado has a market cap of $4 billion with debt of $3 billion. No comment from either company. Caesars is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas. Eldorado Resorts Inc is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
- Norwegian Cruise Line (NCLH) was caught by surprise by the US ban on stops in Cuba. Norwegian Cruise Line said the abrupt nature of the ban will its negative effect even worse for the company. Norwegian Cruise Line sees the ban cutting full-year EPS by 35-45 cents. Norwegian Cruise Line is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
- Walmart (WMT) will start delivering groceries this fall right into customers refrigerators. In three cities this fall, Walmart employees wearing body cameras will enter customers’ homes that have smart locks. Customers will be able to watch the deliveries live-streamed when they aren’t home. The service will be called Walmart InHome. Walmart is the largest seller of groceries in the US and is looking to adjust the way consumers buy groceries. Walmart is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
Global Information Technology Stocks Trending in the News
- Alphabet’s (GOOGL) Google told the US government that banning Huawei could compromise national security. Google said if the ban goes into effect it would not be able to update its Android operating system on Huawei mobile phone. In that scenario Huawei would have to modify Android on its own, and that could make it more vulnerable to hacking risks. Huawei said it could develop its own OS “very quickly” if needed. Alphabet is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas
- Apple (AAPL) plans to offer anonymous sign-ins for third-party apps that are downloaded through its app store. Users logging in will be given the option to log into the app anonymously which would prohibit the app from collecting the user’s data that is used for advertising targeting. The feature will be part of the update to its mobile operating system this fall. Ad-supported apps could suffer as consumers gain. Apple is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas
- AT&T (T) has changed course and is likely to offer one tier of service for its video streaming service. AT&T originally planned to offer three tiers of service but WSJ reports that has been simplified to one. AT&T plans to charge $16-17 as a monthly fee. An ad-supported version with a lower price is planned for 2020. AT&T 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) has been revamping its senior executive in its legal and communication teams anticipating antitrust actions from the federal government. Both legal and communications teams have new leaders while its public relations team is now headed by Britain’s former deputy prime minister. Facebook has been keen to add people to its defense team with experience dealing with government regulators. Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas
Global Financial Stocks Trending in the News
- Columbia Financial (CLBK) will acquire Stewardship Financial Corp (SSNF) in an all cash deal. Columbia will pay holders of Stewardship $15.75 per share. The total value of the deal is about $137 million. The deal should close in the second half of 2019. Columbia Financial is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas. Stewardship Financial Corp is not rated in our Global Top Stock Ideas.
- JP Morgan (JPM) has is killing its no-fee banking app Finn that was meant to attract younger clients. JP Morgan launched the app a year ago as part of its strategy to expand its offerings among younger customers. JP Morgan has the most digital customers of any US bank with 50.7 million and decided its Chase unit is best positioned to serve these younger clients. Finn users will have their accounts transferred to Chase accounts and need to download the Chase app. JP Morgan is rated “Attractive” in our US Large-Cap Global Top Stock Ideas
Global Health Care Stocks Trending in the News
- Insys Therapeutics (INSY) announced it agreed to pay $225 million to settle its civil and criminal charges brought by the federal government. Insys is charged with fraud for marketing the highly addictive opioid drugs as safer, non-addictive painkillers. Insys said the settlement was in the best interests of shareholders. Insys Therapeutics is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas
International Stock Markets Recaps
- The Euro Stoxx 600 is currently up +0.91%, the FTSE 100 is higher by +0.87%, the DAX has risen +0.79%, and the CAC 40 is up +1.5%
- Utilities (+1.03%), Banks (+0.62%), and Basic Resources (+0.61%) stocks are the top performers in the Euro Stoxx 600 today
- Retail (+0.61%), Health Care (+0.56%), and Construction & Materials (+1.34%) 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 7.33x
- 81 stocks in the Euro Stoxx 600 are at 4-week highs while 29 stocks are at 4-week lows
- 12 stocks in the Euro Stoxx 600 are overbought while 15 stocks are oversold according to the 16-day RSI Measure
- The Nikkei 225 finished up +0.53%, the Hang Seng ended up +0.26%, the Hang Seng China Enterprise declined -0.1%, and the CSI 300 was -0.9%
- Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 2.46x
- 13 stocks in the Nikkei 225 hit 4-week highs while 5 stocks reached 4-week lows
- 1 stock in the Nikkei 225 closed overbought while 5 stocks closed oversold according to the 16-day RSI Measure
- Chinese markets are closed today for Dragon Boat day
*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio