We released our weekly Global Laggards report yesterday (please click here to access the report). The stocks highlighted in this
report are laggards relative to their own domestic markets. We recommend that they be underweighted as they may be
vulnerable to further downside risk and underperformance. European names highlighted this week include Orion B (ORNB.FI;
ORNBV:FH) and Boss (Hugo) (Xet) (BOSSX.DE; BOSS:GR)
Author: Veera Manju
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continued to pull back yesterday, though both were able to find support at their respective 21-DMA (S&P 500: 2,904; Nasdaq: 7,996). Should this level break, we will be looking for each index to find support at their rising 50-DMA (S&P 500: 2,849; Nasdaq: 7,787). Both indices avoided distribution, with counts remaining at one day on
the S&P 500 and three on the Nasdaq.
WON Europe Today
Yesterday, most markets were closed. The U.K.’s FTSE 100 was down 0.44% on lower volume as investors were waiting for the U.S. Federal Reserve’s latest monetary policy decision.
- The Stoxx 600 was closed yesterday.
- Sectors that gained the most include Financial Services and Travel & Leisure.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq staged downside reversals, closing below near-term support at their respective 10-DMA. The Nasdaq added a second straight distribution day, though the overall count remains at three due to expiration. The S&P 500 now has just one distribution day. We will be looking for both indices to find support at their respective 21-DMA (S&P 500: 2,903; Nasdaq: 7,994) should the pullback persist.
WON Europe Today
Yesterday, European markets closed mixed. Bank stocks incurred losses due to disappointing earnings, while oil and chipmaker stocks gained. Germany’s DAX and France’s CAC were up 0.13% and 0.10%, respectively, on higher volume. The U.K.’s FTSE 100 was down 0.30% on higher volume.
- The Stoxx 600 was down 0.03%, with higher volume.
- Sectors that gained the most include Oil & Gas and Electricity, while Banks and Mining incurred losses.
- Countries that closed in negative territory were the U.K., Denmark, Finland, Norway, Sweden, Austria, Portugal, and Luxembourg.
- Shares of Apple supplier AMS (AMS.CH; AMS:SW) gained 21.2% after it beat forecasts for Q1 profit and provided an upbeat outlook for Q2.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 rallied off 10-DMA support for a third time in four sessions, while the Nasdaq pierced that level before regaining it by the close of the session. Still, the Nasdaq added a distribution day, taking the count to two days on the S&P 500 and three on the Nasdaq, with one expiring on each at the close today.
Economic Summary
Q1 GDP well above estimates.
Real GDP increased 3.2% y/y in Q1, according to the advance estimate released by the Bureau of Economic Analysis. It was 100bps higher than the previous release and 120bps above market expectations. Positive contribution from PCE, private inventory investment, exports, state and local government spending, and nonresidential fixed investment continue to support the expansion of the economy.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trend into all-time highs. Distribution remains low at two days, with one day expiring on each index at the close tomorrow.
WON Europe Today
Yesterday, major European markets closed in the green. In Spain, Prime Minister Pedro Sanchez’s pro-European socialist party won the election. France’s CAC and Germany’s DAX were up 0.21% and 0.10%, respectively, on lower volume. The U.K.’s FTSE 100 was up 0.17% on lower volume.
- The Stoxx 600 was up 0.10%, with lower volume.
- Sectors that gained the most include Banks and Media, while Travel & Leisure and Chemicals incurred losses.
- Countries that closed in negative territory were Finland, Norway, and Portugal.
WON Europe Today
On Friday, most European markets closed in the green on the back of better-than-expected U.S economic growth in Q1, with strong earnings. Germany’s DAX was up 0.27% on lower volume. France’s CAC 40 was up 0.21% on lower volume while the U.K.’s FTSE 100 was down by 0.08% on higher volume due to a fall in crude oil price.
- The Stoxx 600 closed 0.18% higher, on higher volume.
- Most major sectors performed well on Friday. Media and Automobile & Parts were the biggest gainers.
- The countries that were in negative territory include the U.K., Finland, Norway, Sweden, Austria, and the Netherlands.
- Norway and Austria added one distribution day on Friday after losing 0.25% and 0.52%, respectively, on higher volume, taking the total to six and one, respectively.
- French drug maker Sanofi (SQ@F.FR; SAN:FP) gained 3.5% after it returned to growth with good Q1 results.
- Stocks of Siltronic (WAFX.DE; WAF:GR), STMicroelectronics (STM.IT; STM:IM), and Ams (AMS.CH; AMS:SW) lost after Intel Corp (INTC; INTC:US) reduced Its full year revenue forecast, indicating an industry-wide slowdown.
