US Stocks Preview Ahead of the Open
- Global stocks are flat this morning amid tariff threats and US stocks index futures are FLAT with front-month Dow Jones minis -0.03%, S&P 500 minis -0.06% and Nasdaq 100 minis -0.09%
- President Trump has vowed to hit the EU with tariffs for its subsidies to Airbus (ENTXPA:AIR) and the EU responded it will do the same due to US subsidies to Boeing (BA)
- Analysts began the last quarter expecting a 4.3% hike in profits but by the end of the quarter the expectation was for a 3.6% drop in profits
- Barron’s is arguing today the 10-year old stock rally in the US could continue for years to come, and is not necessarily close to its end
- The VIX is moving down this morning and is currently at 13.40 after closing at 13.18 yesterday
- SPDR S&P500 ETF (SPY) April 10 OTM Calls, General Electric (GE) May 3 Calls and AT&T (T) April 18 OTM Calls are the most actively traded options contracts in US pre-market trading this morning.
- US 10-Year Treasury Bonds are higher with yields down -0.54 basis points to 2.5168%
- The US Treasury 2s-10s Spread has widened 0.26 basis points to 0.16%
- WTI Crude is currently up 2.09% to USD$64.4/bbl with the Brent-WTI spread down USD$-2.03 to USD$6.44/bbl
- Gold is currently up 0.34% to USD$1301.93/oz
Stocks Trending in the News
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- Apple’s (AAPL) opportunity in the health sector could be three times what the smartphone offers it, according to a report from Morgan Stanley today. Apple’s opportunity ranges from $15 billion to up to $313 billion. Morgan Stanley says Apple has the potential to be a digital disruptor in the health space with wearable like its Apple Watch. Apple could be building the blocks of another ecosystem, Morgan notes. Apple is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
- Harley-Davidson (HOG) was downgraded to market perform from outperform at Wells Fargo Securities. Harley-Davidson’s price target was raised to $41 from $40 as well. Harley-Davidson has risen 19% since the start of the year and with expected pricing headwinds in 2019, a downgrade was in order, Wells Fargo writes. Harley-Davidson is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas
- Snap Inc. (SNAP) shares extended their rally Monday as shares are trading at their highest since August 2018 following an upgrade from RBC Capital Markets. RBC upgraded Snap Inc. shares from neutral to outperform, citing product innovation and a potential return to growth in daily active users. Snap Inc. Is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.
- Tesla (TSLA) announced sales staff cuts in the wake of disappointing delivery data. Tesla let sales staff go in Chicago, Brooklyn, Tampa and a handful of other locations. These people were tasked with contacting people for test drives, etc and are no longer needed as Tesla shifts to online ordering. 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) is fully embracing robots in its stores as it seeks to control labor costs. Walmart is using robots to check inventory, clean floors and load inventory as it pays its workers more. Walmart said 300 stores will add robots this year to check inventory while 1500 stores will receive automated floor scrubbers. Walmart said 1 robot can save a number of hours of human work each day, allowing it greater flexibility with labor. 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.
- Well Fargo (WFC) has languished in the 2+ years since its sales practices scandal, according to the WSJ. In that time the bank has struggled as 2 CEOs have exited and revenue in its 3 main business lines has fallen. Wels Fargo was once a fast growing, nimble bank admired by peers. Today it is seeing falling revenue and is using cost cuts to boost earnings. With no permanent CEO and a difficult job finding one, it is not clear what Wells’ plan going forward will be. Well Fargo is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
- Wynn Resorts (WYNN) shares edged higher following reports from AFR’s Street Talk column that Crown Resorts (ASX: CWN) recently rebuffed a confidential takeover offer from Wynn. Citing unfamiliar people with the matter, the report alleges that Crown Resorts initially called UBS bankers before finalizing a decision to rebuff the offer. Since the initial offer, Crown Resorts has named Goldman Sachs as a joint advisor to the company. Wynn Resorts is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas. Crown Resorts is rated “Neutral” in our Australia Large-Cap Global Top Stock Ideas.
International Stock Markets Recap
- The Euro Stoxx 600 is currently up +0.24%, the FTSE 100 is higher by +0.06%, the DAX has risen 0%, and the CAC 40 is up +0.15%
- Banks (+0.91%), Insurance (+0.76%), and Health Care (+0.57%) stocks are the top performers in the Euro Stoxx 600 today
- Technology (-0.41%), Real Estate (-0.22%), and Travel & Leisure (-0.19%) 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 1.21x
- 101 stocks in the Euro Stoxx 600 are at 4-week highs while 14 stocks are at 4-week lows
- 71 stocks in the Euro Stoxx 600 are overbought while 2 stocks are oversold according to the 16-day RSI Measure
- The Nikkei 225 finished up +0.19%, the Hang Seng ended up +0.27%, the Hang Seng China Enterprise up +0.18%, and the CSI 300 was +0.45%
- Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.68x
- 57 stocks in the Nikkei 225 hit 4-week highs while 23 stocks reached 4-week lows
- 6 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 1.27x
- 20 stocks in the Hang Seng hit 4-week highs while 2 stocks reached 4-week lows
- 10 stocks in the Hang Seng closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure