US Stocks
- Global stocks are declining as traders await where US Treasury yields settle this AM after yesterday’s bond market holiday
- US stocks index futures are pointing to a drop in US stocks on the open in NY with the Dow Jones minis -0.39%, S&P500 minis -0.43% and Nasdaq 100 minis –0.41%
- The IMF has formally downgraded its growth assessment for the United States, citing trade tensions between Washington & Beijing, fading impact from the tax cut and higher interest rates – growth forecast was revised down to 2.7% from 2.9% for CY2019
- The VIX is moving up this morning and is currently at 16.91 after closing at 15.69 yesterday
- SPY October 10 & November 16 OTM Puts, EWZ November 16 OTM Puts, AT&T (T) October 19 OTM Puts, and QQQ October 26 OTM Puts are the most heavily traded options contracts in the US pre-market
- US 10-Year Treasury Bonds are lower with yields up 1.52 basis points to 3.248%
- The US Treasury 2s-5s Spread has widened 1.26 basis points to 0.2%
- The US Treasury 2s-10s Spread has widened 1.92 basis points to 0.37%
- WTI Crude is currently little changed -0.07% to USD$74.29/bbl with the Brent-WTI spread up USD$1.54 to USD$10.74/bbl
- Gold is currently little changed -0.12% to USD$1186.64/oz
Stocks Trending in the News
- Alphabet’s Google (GOOGL) found a software glitch in its Google+ social network that allowed developers access to millions of users’ personal data. Google decided to inform the public yesterday for the first time, worried about the negative press it may garner. Google found the flaw in March. Google is rated ‘Neutral’ in both our US Large-Cap and US Information Technology Global Top Picks
- Baker Hughes (BHGE) was upgraded at Jefferies to buy from hold. Baker Hughes’ recent announcement that it acquired a 5% stake in Abnoc Drilling was cited as a reason for the upgrade. Baker Hughes is rated ‘Top Short’ in our US Large-cap Global Top Picks
- Daimler Geely Automotive (175 HK) is working with Daimler (DAI GR) to start a ride-hailing and car-sharing service in China. This was reported in Bloomberg but has not been confirmed by the companies. Geely owns 10% of Daimler. Geely closed 5.2% lower at HKD$13.40 while Daimler is trading 0.90% lower at 54.11 euros. Geely is rated ‘Neutral’ in out China All-Cap Global Top Picks and Daimler is rated ‘Unattractive’ on our European Large-Cap Global Top Picks
- General Electric (GE) won a USD$700mn contract to supply turbines and generators for Egypt’s first nuclear reactor. General Electric will deliver four turbines, one per year 2023-2026. The project is for a total of 4800 megawatts. General Electric is rated “top Short’ in our US Large-Cap Global Top Picks and ‘Neutral’ in our US Industrials Global Top Picks
- Pinnacle Foods (PF) reported preliminary adjusted net earnings of 77-79 cents per share while consensus is for 67 cents. Pinnacle Foods has been executing productivity and cost management programs continuously. There are 5 cents per share related to an insurance payment. Pinnacle Foods is rated “Top Buy’ in both our US Large-Cap and US Consumer Staples Global Top Picks
- Royal Mail (RMG LN) fell below its IPO price in morning trading after being downgraded by RBC. Royal Mail traded below 330 pence, its IPO price, before rebounding and is presently trading .022% higher at 341.20 pence. Royal Mail is rated ‘Unattractive’ in our United Kingdom All-cap Global Top Picks
- Taiwan Semiconductor (TSEC) posted September sales of USD$3.06bn, up 7.2% y/y. Year-to-date Taiwan Semiconductor has posted 6% growth in sales. Taiwan Semiconductor closed 0.21% higher at 244 Taiwan dollars. Taiwan Semiconductor is not rated in our Global Top Picks
- Tata Motors (TTMT IN) shares fell 13.2% to 184.20 rupees after announcing it would shutter its Jaguar Land Rover factory for 2 weeks in October. Tata Motors will close the plant due to the weak demand in China. Last month sales fell 46% in China because of uncertainty on import duties. Tata Motors is trading at its lowest level in 6 years. Tata Motors is not rated in our Global Top Picks
- Tencent (700 HK) has lost USD$220bn in market cap in 2018. Tencent has fallen 38% year-to-date and has lost more value than any other company, ever, according to a report in Bloomberg today. Since its IPO it returned 67,000% until January of this year when it began to give it back. Tencent is rated ‘Attractive’ in our China All-cap Global Top Picks
- Wirecard (WDI GR) is trading 1.7% higher at 171.15 euros after releasing its “Vision 2025” guidance. Wirecard sees ~27% compound annual growth in transactions and ~28% compound annual ebitda growth. The general comment from analysts has been that it is a new trajectory for growth. Wirecard is rated ‘Top Buy’ in our European Large-Cap Global Top Picks
European Stocks
- European stocks are declining again this morning, after opening in the black as the spat between the EU and the Italian coalition government continues to blunt investor sentiment
- The Euro Stoxx 600 is currently down -0.44%, the FTSE 100 has declined -0.37%, the DAX has fallen -0.59%, and the CAC 40 is lower by -0.35%
- Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.42x
- Oil & Gas (+0.87%), Real Estate (+0.69%), and Basic Resources (+0.56%) stocks are the top performers in the Euro Stoxx 600 today
- Chemicals (-0.99%), Telecommunications (-0.98%), and Health Care (-0.95%) stocks are the worst performers in the Euro Stoxx 600 today
- 5 stocks in the Euro Stoxx 600 are at 4-week highs while 264 stocks are at 4-week lows
- 4 stocks in the Euro Stoxx 600 are overbought while 128 stocks are oversold according to the 16-day RSI Measure
- VSTOXX, the European stocks equivalent of the VIX, is little changed this morning and is currently at 17.76 after closing at 17.63 yesterday
- EUR€ is currently down -0.409% against the USD$ to 1.1445
- GBP£ is currently down -0.29% against the USD$ to 1.3052
- CHF is currently down -0.169% against the USD$ to 1.0059
- German 10-Year Bunds are lower with yields up 2.1 basis points to 0.55%
- UK 10-Year GILTs are lower with yields up 3.5 basis points to 1.709%
Asian Stocks
- Asian stocks finished down in overnight trading, the seventh straight day of losses as escalating trade tensions between China and the United States, combining with rising US treasury yields, is spooking Asian traders
- The Nikkei 225 finished down –1.32%, the Hang Seng ended down -0.11%, the Hang Seng China Enterprise up +0.26%, and the CSI 300 was -0.07%
- Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.13x
- 23 stocks in the Nikkei 225 hit 4-week highs while 8 stocks reached 4-week lows
- 35 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 1.38x
- 3 stocks in the Hang Seng hit 4-week highs while 19 stocks reached 4-week lows
- 0 stocks in the Hang Seng closed overbought while 7 stocks closed oversold according to the 16-day RSI Measure
- Japan 10-Year Government Bonds are lower with yields up 0.6 basis points to 0.161%
- JGBs 2s-10s Spread has widened 0.2 basis points to 0.27%
- JPY¥ is currently little changed against the USD$ at 113.15
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