Breathe! Global stocks taking breather after strong week for stocks as Quadruple Witching Friday is upon us
Jun 21, 2019
Market data as of 7am EST
US Stocks Preview Ahead of the Open
- Global markets and US futures are drifting lower this morning at the end of a bullish week for stocks, front-month Dow Jones minis are -0.11%, S&P 500 minis -0.13% and Nasdaq 100 minis -0.33%
- Markit US Manufacturing PMI for May is expected to remain flat at 50.5 today
- Markit US Services PMI for May is expected to improve slightly to 51 today, up from 50.9 last month
- Crude oil is higher again this morning in the wake of Iran shooting down a US drone over the Persian Gulf
- According to analysis from Bloomberg, rate cuts don’t always stop economic recessions and support rallies in stocks. Remember, rates are being cut because economic data is deteriorating on the margin...you can even make that argument that, since rates are so low to begin with, cutting rates won’t have a material impact.
- Many people ask...What is a Direct Listing? And why did Slack (WORK) opt for this type of listing? We explain
- It's Quadruple Witching Friday: Freaky Friday and Manic Monday are coming-Quadruple Witching followed by S&P500 Rebalancing
- Fed Funds future indicate a near-100% chance of an interest rate cut at the next Fed meeting in July, read more: The bond market is speaking loud and clear, but is the Fed listening?
- Top Performing ETFs: Long Live LATAM! Latin American ETFs Dominate List of Top Performing ETFs this Month
- Negative Sentiment Report: H&R Block (HRB) and Boeing (BA) Among Top Stocks Trending by Negative Sentiment
- TOP BUY stocks with highest TECHNICAL factor exposure: THESE US Large-Cap “Top Buys” have the Most Attractive Technical Factor Exposure
- US existing home sales for May is due today and 2.1% m/m growth is expected
- SPDR S&P 500 ETF Trust (SPY) June 21 OTM Calls, Broadcom Inc (AVGO) June 21 OTM Calls and iShares MSCI Emerging Markets ETF (EEM) June 21 OTM Calls are the most actively traded options in today's pre-market
- The VIX is little changed this morning and is currently at 15.62 after closing at 14.75 yesterday
- US 10-Year Treasury Bonds are higher with yields down -0.03 basis points to 2.0281%
- The US Treasury 2s-10s Spread has widened 1.35 basis points to 0.26%
- WTI Crude is currently up 5.38% to USD$56.65/bbl with the Brent-WTI spread down USD$-5.01 to USD$8.31/bbl
- Gold is currently up 0.69% to USD$1398.07/oz
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
- CarMax (KMX) reported fiscal first quarter same store sales and earnings that beat consensus. CarMax reported same store sales growth of 9.5% while consensus was for 5.2%. Fiscal first quarter EPS of $1.59 beating consensus of $1.48. Revenue in the quarter of $5.37 billion beat consensus of $5.16 billion. CarMax is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
- Kraft-Heinz (KHC) saw its credit rating cut to one level above junk by S&P, to BBB- from BBB. S&P said its view of Kraft’s business is “diminished,” saying it does not expect meaningful sales growth without discounts or significant innovation. S&P also believes there are governance and internal control issues at Kraft as well as the ongoing SEC investigation to worry about. Kraft-Heinz is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
- Tesla (TSLA) saw its price target cut to $300 from $400 at Jefferies. In its report, Jefferies said “we got it wrong” when talking about its view this year on Tesla. Jefferies has been one of the biggest bulls on Tesla and wrote that the price action this year for Tesla has been “humbling.” Jefferies writes that it still sees value in Tesla despite cutting its price target by 25%. Tesla is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas
- Walmart (WMT) agreed to pay $282 million to settle allegations it paid bribes around the world. Walmart has been in negotiations for 6 years with the US government to resolve the issue. Walmart will pay $144 million to the SEC and $138 million to the US Justice Department to resolve the situation. The allegations involve violations of the Foreign Corrupt Practices Act. Walmart is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
Global Information Technology Stocks Trending in the News
- Apple (AAPL) is warning owners of certain MacBook Pro laptops sold between September 2015 and February 2017 to not use them due to a risk their batteries could overheat and cause injuries. Apple has recalled the laptops in question, they can catch fire in worst case scenarios. This is Apple’s second recall of a product this year. Apple is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
- Micron (MU) has its price target cut to $28 from $32 at Baird. Micron’s rating of underperform was reiterated. Baird sees the downturn in memory chips extending into 2020 and this was cited as a reason for the downgrade. Micron reports results on June 25th. Micron is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
- Weibo (WB) is not concerned about the trade war and has announced sale of dollar-denominated bonds. Weibo already has a $900 million convertible-bond due in 2022 but this would be the first bond offering in the syndicated bond market. Weibo is taking advantage of the rallying bond market. Weibo is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
Global Industrials Stocks Trending in the News
- Caterpillar (CAT) was downgraded to underweight from neutral at Atlantic Equities. Caterpillar saw its price target cut to $110 from $135 as well. Caterpillar’s CEO recently said he takes a long view on the trade war, but near term, Atlantic Equities sees better opportunities and downgraded the stock. Caterpillar is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
- General Electric (GE) won a contract to build a 2,400-megawatt hydropower project on the Zambia/Zimbabwe border. GE will build it together with Construction Corp of China. The contract is worth about $4 billion and has been planned for years. General Electric is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
- JetBlue (JBLU) announced an order for 13 Airbus (ENXTPA:AIR) A321XLR, its new single-aisle long-range jet. JetBlue plans to use the jets to launch its service to Europe. JetBlue will launch that service in 2021 and said the A321XLR will help it expand into north, south and central Europe. The A321XLR can fly 4,700 nautical miles. JetBlue Airlines is rated “Unattractive” 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 Health Care Stocks Trending in the News
- Canopy Growth (TSX:WEED) reported fiscal fourth quarter revenue that exceeded consensus. Canopy Growth fiscal fourth quarter revenue of C$94.1 million ahead of consensus of C$92.2 million. Canopy Growth shipped 9,326 kilograms in the fiscal fourth quarter and 24,300 for the entire fiscal year. Canopy Growth is rated “Neutral” in our Canada All-Cap Global Top Stock Ideas.
- Merck (MRK) saw its price target hiked to $90 from $84 at Morgan Stanley while reiterating its overweight rating. Merck held meetings with investors on its investors day and there were no major surprises in those, Morgan writes. Investors were said to be very happy with Merck’s long-term growth prospects. Merck is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas
- UnitedHealth Group (UNH) announced it is acquiring healthcare payments firm Equian LLC from its private equity owners. UnitedHealth is paying $3.2 billion for the firm, according to WSJ. Equian is focused on payment processing services for insurers and healthcare companies. Equian claims to be able to lower mistakes in processing and lower costs. UnitedHealth is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
International Stock Markets Recaps
- The Euro Stoxx 600 is currently down -0.24%, the FTSE 100 is higher by +0.1%, the DAX is down -0.09%, and the CAC 40 is up +0.08%
- Utilities (+0.3%), Health Care (-0.87%), and Personal & Household Goods (-0.48%) stocks are the top performers in the Euro Stoxx 600 today
- Banks (-0.36%), Travel & Leisure (-0.58%), and Automobiles & Parts (+0.24%) 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 0.7x
- 255 stocks in the Euro Stoxx 600 are at 4-week highs while 24 stocks are at 4-week lows
- 51 stocks in the Euro Stoxx 600 are overbought while 10 stocks are oversold according to the 16-day RSI Measure
- The Nikkei 225 finished down --0.95%, the Hang Seng ended down -0.27%, the Hang Seng China Enterprise declined -0.01%, and the CSI 300 was +0.14%
- Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.54x
- 52 stocks in the Nikkei 225 hit 4-week highs while 2 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 negative with the advance/decline ratio for the Hang Seng closing at 0.39x
- 23 stocks in the Hang Seng hit 4-week highs while 0 stocks reached 4-week lows
- 3 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