Pre-Market: 8:48AM EDT
|Bid||132.16 x 900|
|Ask||133.15 x 1000|
|Day's Range||131.99 - 133.80|
|52 Week Range||111.75 - 159.37|
|Beta (3Y Monthly)||1.52|
|PE Ratio (TTM)||12.39|
|Earnings Date||Oct 23, 2019|
|Forward Dividend & Yield||4.12 (3.08%)|
|1y Target Est||142.52|
Investing.com - U.S. futures pointed to a weak opening bell on Monday as oil prices spiked to their highest level since May after drone strikes hit more than half of Saudi Arabia’s oil capacity over the weekend.
Benzinga has examined the prospects for many investor favorite stocks over the past week. Bullish calls included the iPhone maker, a Big 3 automaker and a restructured industrial company. Bearish calls ...
America's nearly two-year-old trade war with China, as well as salvos with Europe and Mexico, has battered a wide swath of stocks. President Donald Trump's tariffs (and retaliatory duties) have weighed on companies in various forms, such as higher input costs and unsold inventory.The pinch is being felt on a wide scale. Global growth was already slowing, though market analysts and foreign leaders alike think the trade war is making things worse. Here at home, manufacturing is thinning, reflecting waning demand. ISM's purchasing managers' index reading for August was just 49.1. Anything under 50 signals a contraction in activity, meaning August was the first month in three years that American manufacturing receded.The result has been a pullback in numerous stocks. Buying these tariff-assisted dips is risky because some of the companies face headwinds outside of trade uncertainty. But a resolution between the U.S. and China would bring much-needed relief to many companies, and perhaps a bounceback in their shares. You can see the potential every time the market rallies on the smallest of optimistic hints."(These) value stocks will deliver attractive returns after the tariff resolution, like a coiled spring that pops up," says Michael Underhill, chief investment officer of Capital Innovations in Pewaukee, Wisconsin. He thinks the market could continue to move higher heading into October's negotiations. If more concrete progress is made, a sustained rally will continue, he says.Here, then, are 14 stocks that have already felt the burn from President Donald Trump's tariffs (and retaliatory taxes). Some represent potential should Washington reel in its tariff threats, but they may continue to suffer any time trade tensions reignite. And a few are trying to pivot their businesses out of harm's way. SEE ALSO: 25 Dividend Stocks That Analysts Love the Most
Investing.com - The Dow is set to pass its intraday record high on Friday and other indexes were also near record highs after upbeat trade news from China, while an upside surprise on core inflation wasn't seen as enough to stop the Federal Reserve cutting rates next week.
Stocks traded higher again Wednesday with the Dow Jones Industrial Average positioned for a seventh consecutive winning day as the European Central Bank (ECB) delved further into easy monetary, and amid news that trade tensions between the U.S. and China continue to thaw.Source: ymgerman / Shutterstock.com Given President Donald Trump's Twitter (NYSE:TWTR) volatility, it's wise to approach good trade news with some caution, but over the course of this week, some green shoots have emerged.The White House pledge to push back some proposed tariffs on Chinese goods while China is promising to rollback some levies on U.S. imports in conjunction with upping purchases of American farm products.InvestorPlace - Stock Market News, Stock Advice & Trading TipsToday, reports emerged that the White House has discussed offering some form of a limited trade pact to China. Whether or not that agreement is accepted remains to be seen, but the overarching issue is that both sides, at least for now, are showing willingness to work on trade deals. * 10 Battered Tech Stocks to Buy Now In Europe, the ECB cut its benchmark lending rate to -0.5% and pledged to buy $22 billion worth of euro-denominated bonds per month.Those headlines got us to the Nasdaq Composite gaining 0.30% today while the S&P 500 jumped 0.29%. The Dow Jones Industrial Average tacked on 0.17%. In late trading, 23 of the 30 Dow stocks, one of the better ratios this week, were trading higher. First, the Bad NewsYes, there were some glum performances among Dow stocks today. For example, Caterpillar (NYSE:CAT) slipped about 1% after Wells Fargo downgraded the construction machinery maker to "market perform" from "outperform." The bank also pared its price target on that Dow stock to $143 from $150."U.S. construction equipment demand is at or near peak, which will put downward pressure on earnings power," said Wells Fargo.On a technical basis, Caterpillar recently bumped into some overhead resistance and looking at the chart, the shares look primed to pull back over the near-term.Speaking of analyst chatter hurting Dow stocks, Walgreens Boots Alliance (NASDAQ:WBA) was the worst-performing Dow stock today, sliding over 4% after Deutsche Bank analyst George Hill initiated coverage of the stock with a "sell" rating.Hill had a tepid take on Dow stock UnitedHealth (NYSE:UNH), starting coverage of that laggard with a "hold" rating. Shares of UNH also finished lower today. Bright Spots on the DowVisa (NYSE:V) was the best-performing Dow stock today, adding 1.71%. It looks like buyers stepped into the name after the shares pulled back following a record close last Friday. The stock had been nearly 4% over the past several days.Shares of Walmart (NYSE:WMT) added nearly 1% after the largest U.S. retailer unveiled an expansion to its grocery delivering service. Priced at $98 annually, or $82 less per year than the fee on Amazon Fresh.Whether its streaming entertainment or food delivery, pricing power matters. Companies that can offer it without disrupting the long case for their stocks usually get a boost from investors. Walmart plans to expand the new grocery delivery service to 200 metro areas across the country.Walt Disney (NYSE:DIS) bounced back today as some of the concerns about Apple's (NASDAQ:AAPL) streaming effort ebbed.Disney has its own streaming plans, Disney +, and Credit Suisse says that if that offering can attract 10 million subscribers by the end of this year, that could bring double-digit upside for the stock. DJIA Bottom LineCentral banks around the world are acting to prop up economies that are in far worse shape than the U.S., and it's likely the Federal Reserve will follow suit to avoid having to act when it's too late.In comments made in Chicago today, former Federal Reserve Chair Janet Yellen affirmed that the Fed stands at the ready to shore up the world's largest economy, which she still views as solid. However, she doesn't believe the central bank will follow the ECB playbook of negative rates.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Dow Jones Today: Maybe We're Getting Somewhere appeared first on InvestorPlace.
The S&P 500 is closing in on a record high as optimism returns to the Street. Over the past week, we've seen improving price action and accelerating strength beneath the surface. Sector rotation is afoot, and I've spotted three stocks to buy that should continue to benefit from the shift.A glance at recent sector performance reveals several themes. Small-caps are sizzling, banks are booming and energy is rising from the abyss. Industrials also saw massive inflows. Each area boasts many compelling charts, and today's selections look well-positioned to profit.Some say that sector rotation is the lifeblood of a bull market. The power of laggards leading while leaders lag (or otherwise take a breather) has been on full display this week.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Deeply Discounted Energy Stocks to Buy Let's take a closer look at three ways to capitalize on its continuation. 3 Sector Rotation Stocks to Buy: JPMorgan Chase (JPM)Source: ThinkorSwim The awakening of the banking industry is undoubtedly one of the reasons why the small-cap-laden Russell 2000 Index has awoken. But it's actually one of the largest banks that has me licking my chops. JPMorgan Chase (NYSE:JPM) is topping off the third week of a robust rally that ushered its shares to the upper end of its two-year trading range.And that means a breakout could be imminent. JPM stock has a history of delivering strong followthrough after weekly breakouts. And with the fourth quarter fast approaching as well as bullish undertones returning to the Street, JP Morgan should keep delivering.Buy the Dec $120/$125 bull call spread for around $1.90. Exxon Mobil (XOM)Source: ThinkorSwim Energy stocks have been laid low over the past six months, but this week finally saw big buyers enter the fray. The last three days have seen accumulation days in the Energy Sector ETF (NYSERCA:XLE). Exxon Mobil (NYSE:XOM) is rising alongside XLE, and though its intermediate- and long-term trends still point lower, the sharpness of this week's ascent suggests more upside is in the offing.I particularly like how this morning's weakness was quickly bought up, confirming that buyers still lurk beneath the surface.Exxon's low implied volatility rank makes long premium plays compelling. Instead of going aggressive with a bull call spread purchase, I like using bull call diagonals instead. They only require a mildly bullish move and set us up to profit from time decay. * 10 Battered Tech Stocks to Buy Now Buy the Jan $67.50 call and sell the Nov $75 call for a net debit of $4.95. Boeing (BA)Source: ThinkorSwim Ever since bottoming in mid-August, Boeing (NYSE:BA) has been booming. The recovery reached a fever pitch yesterday with a high-volume 3.6% pop that jammed BA stock to a four-month high. We're seeing some well-deserved profit-taking this morning, but with the short-term trend now pointing higher, I suspect the weakness will prove a buying opportunity.Be aware that major resistance looms heavy at $383, so Boeing needs to clear that level before the party can really begin. But its angle of attack and the strength seen over the past month gives BA the best chance it's had in months to turn its intermediate-trend back up.Buy the Jan $380/$400 bull call spread for around $8.50. Your risk is $8.50, and the potential reward is $11.50.As of this writing, Tyler Craig didn't have positions on any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post 3 Stocks to Buy As Sector Rotation Heats Up appeared first on InvestorPlace.
There is more economic trouble brewing. This time the problem is U.S. construction. That is bad news for industrial stocks, particularly makers of back hoes, cranes and dump trucks.
Wells Fargo analyst Andrew Casey downgraded Deere from Outperform to Market Perform and reiterated his $170 price target. Casey said his latest checks suggest the U.S. construction cycle is at or near its peak, and Deere and Caterpillar will likely face earnings pressure starting in 2020. Casey said single-digit growth in Caterpillar’s Resource Industries and slight compression in Energy and Transportation will not be able to make up for a softening U.S. construction equipment market.
Joe Terranova said on CNBC's "Fast Money Halftime Report" he has a long position in Mastercard Inc (NYSE: MA ) and he would stay with it. He sees it as a global payments leader, a great story ...
Construction equipment manufacturer Caterpillar is seeing its profits squeezed amid the ongoing trade war and slower global economic growth.
The Zacks Analyst Blog Highlights: Caterpillar, General Motors, Citigroup, Northrop Grumman and Walgreens Boots
I've said it before, while the Dow Jones Industrial Average may be a flawed index due to its price-weighting mechanisms, the index still has plenty of value for investors. After all, the index does represent some of America's largest and finest companies. Thanks to their large moats, strong cash flows and big dividends, Dow Jones stocks really are the bluest of the blue-chips and make great portfolio additions.However, the various shades of blue do vary.Thanks to the recent market hiccups, rising global tensions, the trade war and overall economic malaise, not all the Dow Stocks would be considered champions at this point. And in fact, a few of them downright stink. Misreads on trends coupled with the current global economic problems have made several stocks in the blue-chip index chronically underperform in recent weeks and in fact, years for some. That puts them firmly in the "don't buy camp."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell in Market-Cursed September But how can you tell which Dow Jones stocks are big buys and which are downright sells? Luckily, here at InvestorPlace, we've done the leg work for you. Here are three of the Dow's biggest stocks to avoid. Dow Jones Stocks to Sell: 3M (MMM)Source: josefkubes / Shutterstock.com Percent Off 52-Week High: 26%The reason to buy industrial giant 3M (NYSE:MMM) stems from the fact the firm is so global in its revenues. A huge portion of its sales come from overseas. That has driven the stock's cash flows and profits in recent years. The reason to sell 3M is also that it's so global in its sales.As the trade war has dragged on, 3M has been hit hard by the overall slowing global economy. A prime example was its last earnings report. Despite a hefty share buyback program, earnings-per-share for this Dow Jones stock slipped over 37% year-over-year, while net revenues declined 2.6%. The vast bulk of the slippage in sales continues to be from Asia, Europe other emerging markets. These are the regions that drove sales in previous quarters. Moreover, the strong dollar and local currency fluctuations continue to hit 3M hard.This is a big deal going forward. With no end to the trade war in sight and major international economies -- such as Germany -- slowing way down/contracting, 3M could be between a rock and hard place. During its last conference call, the industrial stock warned things could get rough. Management is now guiding to earn $8.75 per share on the high-end -- a dip of 3.1% from its last EPS estimate.While 3M isn't in any danger of cutting its dividend and ending its long streak of payout increases, the continued dip in EPS could spell trouble for its pace of dividend jumps. And with a PEG ratio of nearly 2 and forward P/E of 18, MMM stock isn't exactly a bargain.With many of the catalysts for ownership now deteriorating and the stock relatively expensive, this is one of the Dow Jones stocks to avoid for the time being. IBM (IBM)Source: JHVEPhoto / Shutterstock.com Percent Off 52-Week High: 12%There are plenty of old school tech stocks that have pivoted correctly in the new paradigm. Dotcom leaders like Cisco (NASDAQ:CSCO) and Microsoft (NASDAQ:MSFT) have successfully changed their operations to better compete in the cloud and across many new trends in tech. And their investors have been rewarded.Then there's IBM (NYSE:IBM).Big Blue should be a leader. Unfortunately, IBM has managed to make plenty of missteps over the last decade. Missing key trends like the rise of cloud computing has continued to hurt the firm's bottom line. Revenues last quarter marked the fourth-straight quarterly revenue decline for the tech dinosaur. Based on full-year estimates for 2019, IBM will have seen its sales drop by nearly 19% over the last five years. That's just terrible.So, it's no wonder why IBM decided to buy out Red Hat to inject some growth into the firm for $34 billion. And there is potential for growth. Fellow InvestorPlace contributor David Moadel recently mentioned that the Dow Jones stock could be a major contender in open-source software and in the cloud. However, based on its estimates, IBM says Red Hat won't boost earnings until 2021 at the earliest. And given how lousy IBM has been at integrating acquisitions in recent history, the potential may not be realized.What's worse is that Big Blue recently suspended its lucrative buyback program to pay for the deal. Those buybacks have actually managed to reduce its share count by roughly 25% over the last few years. * 7 Low-Risk Mutual Funds to Buy Now In the end, there's a lot of risk for IBM and not much safety net anymore. Red Hat will take a ton of time to integrate and in the meantime, investors are getting nothing but declining sales while waiting. There's better tech stocks out there and this is one of the Dow Jones stocks to avoid. Caterpillar (CAT)Source: aapsky / Shutterstock.com Percent Off 52-Week High: 25%It's easy to pick on Caterpillar (NYSE:CAT) based on the trade war and continued lower demand from China. After all, China's massive expansion and infrastructure upgrades have long been a huge driver for construction equipment. So, with China slowing, CAT is in some hot water.The issue for the heavy-machinery firm is that it's not just woes from China that are hurting its bottom line. It turns out, construction spending across the board is starting to wobble in a big way. Both Cummins (NYSE:CMI) and Emerson Electric (NYSE:EMR) both recently warned that CAPEX spending is dropping in the U.S. as well. That CAPEX spending is also coming to the metals and mining industry as well as the sectors. The same could be said for agricultural and forester equipment. Overall demand for powerful diesel engines and other heavy machines is now dropping as the trade war has trickled on.This is a huge problem for CAT. Sales in the U.S. as well as key segments -- like energy -- have helped keep the profit engine growing and they have also helped it overcome many of the woes from China/Asia in general. But with many of these markets now seeing contraction and spending dwindle, CAT could be hit hard. And in fact, management is now predicting EPS come in at the lower end of their estimated guidance. If things continue to turn poor and the recession finally hits, the Dow Jones stock could be in a world of hurt.Now, CAT still pulls in a ton of cash flows and has seen rising sales. This has translated into a big 20% dividend boost and improved buyback program. But now that sales and cash flow growth have been muted in the new tariff-filled environment, that robust pace of dividend/buyback growth could slow if things start to really hit the fan.And for investors, that could make CAT a stock to place on their watchlist for now.As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post 3 Dow Jones Stocks to Sell Right Now appeared first on InvestorPlace.
Stocks struggled to find direction as traders took profits in some names that bounced higher last week with growth fare. Technology names got pinched today, but Monday's performances by the broader benchmarks were not too bad, nor where they impressive.Source: rafapress / Shutterstock.com Monday was a lethargic day, reminiscent of many during the summer months, but the S&P 500 entered the day just 1.80% below its all-time high and growth sectors, such as consumer discretionary and technology, were about 2% removed from records, so it wasn't surprising to see modest dips today.When all was said and done, the Nasdaq Composite was lower by 0.19% while the S&P 500 settled down by just 0.01%. The Dow Jones Industrial Average was the standout of the day, gaining 0.14%. In late trading, 17, or just over half the Dow's 30 members, were trading higher.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Industrial Stocks to Buy for a Strong U.S. Economy This week, barring any unexpected Twitter (NYSE:TWTR) activity from President Donald Trump, should be relatively quiet on the domestic headline front, but there are global considerations. The Organization of Petroleum Exporting Countries (OPEC) publishes its monthly demand forecasts on Wednesday, news that could move Dow components Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), two names that have recently steadied.On Thursday, the European Central Bank (ECB) is widely expected to reveal a rate cut, a move that could spark moribund European stocks and provide a lift to other riskier assets. Dow Dogs Have Their Day AgainWith ebullience for the Dow last week, some of the blue chip index's laggard names notched some nice gains. That group included trade-sensitive Caterpillar (NYSE:CAT). Importantly, there was follow-through as the industrial machinery maker added 3.74%, making it one of the best-performing Dow members to start the week.Slack global manufacturing data is a legitimate concern for shares of Caterpillar, but some analysts argue that investors have gotten too gloomy on the stock and that it may be pricing in more downside than is realistic.Caterpillar "could face another 1 to 2 quarters of negative [earnings per share] revisions due to dealer destocking in construction and weakness in upstream oil and gas," said Bank of America Merrill Lynch analyst Ross Gilardi in a note out today. "We advise investors to look through it because global [industrial indexes] are already below 50, central banks are stimulating, and the U.S. service economy (i.e. the consumer) is still humming."At the end of the resurgent dog spectrum is defensive name Walgreen Boost Alliance (NASDAQ:WBA), which has easily been one of the Dow's worst-performing components this year. Today, it was one of the best Dow stocks, posting a jaw-dropping (by its standards) gain of 5.76% on seemingly no news other than a recent decision by the company to tell shoppers to not enter its stores with firearms.There was some chatter out today that the recent bankruptcy of smaller rival Fred's could be beneficial to Walgreens, but a gain of this magnitude today seems to overshoot that news. Tech CheckTech was roughed up a bit today, but one day of weakness does not diminish the case for the largest sector in the S&P 500. Microsoft (NASDAQ:MSFT) was one of the tech names trading lower today. Over the weekend, Evercore ISI raised its price target on the stocks to $160 from $150, sparking some unusual (and bullish) option activity in the name today.Apple (NASDAQ:AAPL) traded modestly higher ahead of its Tuesday product reveal, which is expected to include some iPhone enhancements, though not of the stock moving variety. Yes, iPhone 11 will be impactful for Apple stock at some point, but for those watching tomorrow's event, the real near-term catalyst could be updates on Apple + streaming and other entertainment-related efforts. Dow Jones Bottom LineAs I noted above, this week should be light on headline risk, emphasis on "should be." Ebbing uncertainty could set the stage for more gains for stocks, albeit in incremental fashion, but there are other benefits to removing the overhang of doubt from investors' minds."Eventually, erratic policy and heightened uncertainty undermine confidence in a way that affects the real economy," notes BlackRock. "This could happen in a number of ways: a safe-haven bid that drives up the dollar and credit spreads and/or a sharp decline in business confidence that begins to impact spending and hiring plans. Should either start to occur, the risk is no longer just investor mood swings but a more pernicious slowdown and market correction. In the absence of those developments, while easy money cannot eliminate uncertainty it can mitigate the effects."Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post Dow Jones Today: Looking for Direction appeared first on InvestorPlace.
One has to wonder whether there isn't a wholesale shift in China toward internal consumption and away from exporting.
Some on Wall Street think the market is too bearish on Caterpillar, setting up the possibility shares could rise even if earnings fall.
Although the S&P 500 Index (SPX) is trading near all-time highs, a number of investment managers believe that four key negative factors dampen the prospects for additional gains through the end of 2019. Oliver Jones, senior markets economist at Capital Economics, expects that the S&P 500 will endure a “sizable fall” before 2019 is over.
DOW UPDATE Shares of Caterpillar and Walgreens Boots are seeing positive growth Monday morning, lifting the Dow Jones Industrial Average into positive territory. Shares of Caterpillar (CAT) and Walgreens Boots (WBA) have contributed to the index's intraday rally, as the Dow (DJIA) was most recently trading 69 points higher (0.