Global stocks drifting lower as investors weigh trade progress and global growth prospects

by QuantalyticsResearch

 

US Stocks

  • Global stocks are drifting lower with investors weighing last week’s US-China trade progress and the potential for further progress this week as well as the outlook for global growth
  • Walmart (WMT) reported a 4.2% rise in sales this morning and provided same store sales guidance of 2.5-3% in 2019, allaying fears of a retail slowdown in the US.
  • US and Chinese negotiators will continue trade talks this week, looking to build on the momentum of last week
  • European officials made clear again they will hike import tariffs on US goods if the US lets auto tariffs increase on European auto imports on March 1st
  • The head of the Bank of Japan told Parliament he would provide more stimulus to the economy if required.
  • The VIX is little changed this morning and is currently at 15.65 after closing at 14.91 last week
  • SPY March 29 OTM Puts, EEM March 15 OTM Puts, and QQQ March 1 OTM Calls are some of the most heavily traded options in the US pre-market this morning.
  • US 10-Year Treasury Bonds are flat with yields little changed 0 basis points to 2.6626%
  • The US Treasury 2s-10s Spread has widened 1.24 basis points to 0.16%
  • WTI Crude is currently up 2.17% to USD$55.59/bbl with the Brent-WTI spread down USD$-2.34 to USD$10.29/bbl
  • Gold is currently little changed 0.14% to USD$1328.7/oz

Stocks Trending in the News

Click name for Q-Factor breakdown, latest price details, more financial info and sentiment data.

  • Advanced Auto Parts (AAP) reported fourth quarter adjusted EPS of USD$1.17 beating consensus of USD$1.13.  Advanced Auto Parts reported fourth quarter sales of USD$2.11 billion matching consensus of USD$2.11 billion.  Advanced Auto Parts sales grew 3.4% in the fourth quarter.  Advanced Auto Parts is rated “Neutral” in our Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
  • Danone (ENXTPA:BN) gave 2019 guidance for 3% sales growth with sales with full year operating income of 3.56 billion euros.  Danone expects recurring operating margin above 15%.  Danone expects EPS of 3.84 euros.  Danone is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Honda (TSE:7267) said it will close its factory in England which is being seen as a blow to Brexit.  Honda will close a factory located in Swindon, located about 80 miles outside of London.  The factory will close in 2021 and presently employs 3,500 workers.  Honda is rated “Top Buy” in our Japanese Large-Cap Global Top Stock Ideas.
  • Sage Therapeutics (SAGE) reported fourth quarter adjusted loss per share of USD$3.83 missing consensus of a loss of USD$2.97.  Sage Therapeutics reported fourth quarter total expenses of USD$164.5 million.  Sage Therapeutics sees funding in place until second half of 2020.  Sage Therapeutics is rated “Top Short” in our Large-Cap Global Top Stock Ideas.
  • SiteOne Landscaping (SITE) reported fourth quarter adjusted loss per share of USD$0.01 beating consensus of a loss of USD$0.06.  SiteOne Landscaping reported fourth quarter revenue of USD$474.6 million matching consensus of USD$473.1 million.  SiteOne Landscaping saw total sales growth 14% with organic sales growth of 4%.  SiteOne Landscaping is rated “Unattractive” in our Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Walmart (WMT) reported fourth quarter adjusted EPS of USD$1.41 beating consensus of USD$1.34.  Walmart reported fourth quarter sales of USD$138.8 billion matching consensus of USD$138.6 billion.  Walmart sales grew 4.2% in the fourth quarter, well above 3.4% expected, with online sales up 43% with Walmart’s redesigned website.  Walmart provided 2019 same store sales guidance of 2.5-3%.  Walmart is rated “Attractive” in our Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas
  • Welbuilt (WBT) reported fourth quarter adjusted EPS of USD$0.18 beating consensus of USD$0.17.  Welbuilt reported fourth quarter revenue of USD$406.1 million missing consensus of USD$393.6 million.  Welbuilt gave 2019 EPS guidance of USD$0.71-0.81.  Welbuilt is rated “Attractive” in our SMID-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.

European Stocks

  • The Euro Stoxx 600 is currently down -0.59%, the FTSE 100 has declined -0.74%, the DAX has fallen -0.3%, and the CAC 40 is lower by -0.55%
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.32x
  • Travel & Leisure (+0.27%), Utilities (+0.12%), and Insurance (-0.12%) stocks are the top performers in the Euro Stoxx 600 today
  • Banks (-1.75%), Financial Services (-0.89%), and Automobiles & Parts (-0.81%) stocks are the worst performers in the Euro Stoxx 600 today
  • 147 stocks in the Euro Stoxx 600 are at 4-week highs while 12 stocks are at 4-week lows
  • 65 stocks in the Euro Stoxx 600 are overbought while 3 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 14.81 after closing at 14.54 yesterday
  • EUR€ is currently down -0.283% against the USD$ to 1.1279
  • GBP£ is currently little changed against the USD$ at 1.2908
  • CHF is currently little changed against the USD$ at 0.9946
  • German 10-Year Bunds are higher with yields down -1.4 basis points to 0.096%
  • UK 10-Year GILTs are higher with yields down -1.3 basis points to 1.153%

Asian Stocks

  • The Nikkei 225 finished up +0.1%, the Hang Seng ended down -0.42%, the Hang Seng China Enterprise declined -0.29%, and the CSI 300 was -0.18%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 1.32x
  • 52 stocks in the Nikkei 225 hit 4-week highs while 0 stocks reached 4-week lows
  • 4 stocks in the Nikkei 225 closed overbought while 1 stock closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished neutral with the advance/decline ratio for the Hang Seng closing at 1x
  • 16 stocks in the Hang Seng hit 4-week highs while 0 stocks reached 4-week lows
  • 5 stocks in the Hang Seng closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure
  • Japan 2-Year Government Bonds are higher with yields down -0.5 basis points to -0.177%
  • Japan 10-Year Government Bonds are higher with yields down -0.6 basis points to -0.028%
  • JGBs 2s-10s Spread has narrowed 0.1 basis points to 0.15%
  • China RMB 2-Year Government Bonds are lower with yields up 1.3 basis points to 2.613%
  • China RMB 10-Year Government Bonds are lower with yields up 1.4 basis points to 3.128%
  • China Government RMB 2s-10s Spread has widened 0.1 basis points to 0.52%
  • JPY¥ is currently little changed against the USD$ at 110.76

 

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