Daily Market Briefing

Stocks to Likely Rebound from Short-term Oversold Levels on Wednesday but to Continue to Trend Lower during the Months Ahead

December 12, 2018 (1:00 am U.S. Eastern Time): The recent trading action in the U.S. stock market indicates that U.S. stock prices, in general, will rebound from short-term oversold levels on Wednesday. However, the recent readings on numerous economic indicators for the United States, as well as for other major regions of the world, suggest that stocks around the globe will continue to trend lower over the next few months. Therefore, we're continuing to advise our clients and persons who subscribe to our investment research and advisory journals to allocate a large portion of their financial market assets to cash-like securities (i.e. money-market securities) and to also allocate a portion of their assets to inverse equity ETFs after advising our clients to get mostly out of stocks during September of this year. 

Headline News

December 11, 2018

  • National Federation of Independent Business's Small Business Optimism Index declines to lowest level since April
  • U.S. producer price index declines, on a year-over-year basis, to lowest level since December 2016
  • Eurozone institutional investors remain most pessimistic about near-term future direction of Eurozone economy since August 2012
  • Japan machine tool orders decline to lowest level since July 2016, signaling continuation of recent slowing in Japan manufacturing activity and the country's economic contraction

Significant Developments

U.S. Economic Developments

U.S. Political Developments

Earnings Announcements

International Economic Developments

International Geopolitical Developments

Company and Stock News

December 10, 2018 Company and Stock News

  • ConocoPhillips (COP) announced that it’s planning to invest $6.1 billion in capital assets and repurchase $3 billion of its stock during 2019
  • Hess Corporation (HES) announced that it’s planning to invest $2.9 billion in capital assets and oil/gas exploration activities, and to drill approximately 170 new wells, during 2019
  • Allscripts Healthcare (MDRX) signs definitive agreement to sell its interests in Netsmart Technologies, Inc. for approximately $525 million
  • Facebook (FB) announced that its Board of Directors authorized the company to repurchase up to $9 billion of its Class A common stock in addition to $15 billion of planned repurchases under a prior authorization
  • Axsome Therapeutics (AXSM) announced that it experienced positive results from a trial of the company’s treatment for Alzheimer’s disease

Stock of Week

CyberArk Software (CYBR)

CyberArk Software (CYBR) develops and sells cyber security software applications. The company focuses on privilege account security, which refers to enabling authorized individuals within large organizations to access needed information according to their credentials. As of August 7, 2018, the company’s customers included approximately 50% of Fortune 100 companies. CyberArk was founded during August 1999 and went public on September 24, 2014.

Composite Fundamental Rating Product Sales & EPS Growth (Qtrly) Profit Margins Financial Liquidity Long-term Debt Institution Buys to Sells
B+ A B+ C A+ A C

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Investors Monitor 20

Investors Monitor Grade

Company Name Ticker Symbol Sector / Industry Composite Fundamental Rating Product Sales & EPS Growth (Qtrly) Profit Margins Financial Liquidity Long-term Debt Institution Buys to Sells
Alarm.Com Holdings ALRM Home Security B- A B C A+ C B
Applied Optoelectronics AAOI Fiber Optics A- A+ A+ B+ A+ A+ B+
Arista Networks ANET Network Apps A+ A A+ A+ A A+ A
Control4 Corporation CTRL Home Devices B- A C C A+ A+ A
Floor & Décor Holdings FND Home Flooring B- A A+ C B- C- B+
General Electric GE Conglomerate B A C+ B- A+ C A
GrubHub GRUB Mobile Orders B+ A+ A B+ A+ B C
Micron Technology MU
Malibu Boats MBUU Boat Mfg. C+ A C B- B- C- D
Masimo Corp MASI Medical Devices A- A B A A+ A+ B
Momo Inc. MOMO Social Media A+ A A+ A+ A+ A+ A
Ollie’s Bargain Outlet OLLI Discount Stores B+ B+ A B+ A A C+
Qualys QLYS Internet Security A- A A B+ A+ A+ C
Sears Holdings SHLD Retail Stores C+ B Turn-Around Turn-Around B D+ A
SolarEdge Technologies SEDG Solar Panels A+ A A A A+ A A
The Trade Desk TTD Advertising B+ A A C+ A+ A+ B
Wal-Mart WMT Retail Stores B- A+ c+ C C A- C+
Weibo Corporation WB Social Media A+ A A+ A- A+ A+ A
Winnebago Industries WGO RV Mfg. C- A C C C+ D C
STMicroelectronics STMI
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