Quantamize Midday Report March 13

Mar 13, 2018

US Midday Review

U.S equities are trading 0.37% lower midday on the heels of CPI data indicating consumer prices rose 0.2% in February, in line with consensus estimates. Information technology -0.87%, financials -0.71%, and consumer discretionary -0.38% are the worst performing sectors, while telecommunications +0.37%, real Estate +0.35%, and healthcare +0.27% move higher.

S&P Industrials are 0.5% higher, with Airlines +1.7% and Home building +1.04% as the best performing industries. Autos, machinery, and electrical equipment are little changed.

Consumer shares are mixed with consumer staples rising +0.2%, while consumer discretionary underperformed falling -0.38%. Retail shares are mostly higher, trading up +0.46%, while entertainment & media equities fell -0.7%.

Energy shares are trading lower by -0.3%, despite early trading gains. Brent crude is down -1.1% to $64.22/barrel, while natural gas rose +0.4% to $2.789/btu.

Tech sector shares are trading down -0.3%. Hardware +0.7%, services +0.7%, and networking +0.2% are higher, while semis -0.6%, software -0.7%, and internet & social media -1.4% trail the S&P index overall.

S&P Info Tech Laggards

  • QCOM -4.51%
  • EBAY -2.19%
  • MSFT -1.67%
  • AMD -1.52%
S&P Financial Laggards
  • AXP -1.88%
  • AIG -1.54%
  • CBOE -2.5%
  • KEY -1.81%
S&P Consumer Discretionary Laggards
  • MAT -2.74%
  • UAA -2.47%
  • EXPE -2.03%
  • NFLX -1.85%
S&P Telecommunications Movers
  • T +0.8%
  • VZ +0.29%
  • AMT +1.08%
  • NTL +0.67%
S&P Real Estate Movers
  • MAC +1.58%
  • SPG +1.37%
  • DLR +1.29%
  • GGP +1.22%
S&P Healthcare Movers
  • AGN +2.14%
  • ABBV +1.85%
  • JNJ +1.61%
  • UNH +1.61%

Rates & Commodities

US bond yields are modestly off this afternoon as the 10-year is currently at 2.852%, down from 2.865% this morning. The front end of the curve shows little movement, and investors seem to be looking to the long end as the 30-year is down to 3.11% from 3.129% this morning in-line with the 10-year. The move in bonds confirms a risk-off attitude today in the markets as equities give back their earlier gains following the CPI news – most likely due to Rex Tillerson’s departure as Secretary of State which is being felt as a risk to free trade given that Pompeo, the presumptive replacement, shares protectionist views with Trump.

The USD$ is slightly down from this morning following the Tillerson news with the US Dollar index down 0.27%. The USD$/CAD$ pair is up 0.64% off BOC Chief Poloz reiterating that the BOC should remain cautious on rate hikes given possible further economic expansion without excess inflation. This is coupled with slack on the supply side of the economy that has yet to be filled. The GBP£/USD$ is down by 0.67% as UK has raised its economic growth forecast to 1.5% for this year vs. 1.4% previously.

In the commodities market, investors appear to be flocking to precious metals with the risk off sentiment. In contrast, copper and aluminum are giving back gains from yesterday. WTI Crude Oil has flipped into contango – the first time since February 20th. Oil weakness seems to be stemming from concerns that the US will continue to increase supply which undermines OPEC’s supply cuts.

EU Midday Review

EU markets end today’s session lower -0.97%. There was little data out of the region, with much of the focus on economic events including the ECOFIN meeting, EU President Jean-Claude Juncker’s address to the EU Parliament regarding Brexit, and UK Chancellor Philip Hammond’s Spring financial statement.

Chemicals -1.85%, telecommunications -1.76%, and personal & household goods -1.69% were the biggest laggards. Basic resources +0.1%, utilities -0.4%, and oil & gas -0.46% outperformed the Euro Stoxx benchmark index.

Regional markets finished today’s trading down with the FTSE 100 -1.05%, DAX -1.59%, and CAC40 -0.64% all receding.

EU Laggards

  • GNC -30.2%
  • KDS -12.1%
  • CVR -11.2%
  • BGO -10.2%
  • ILD -10.1%
EU Movers
  • NORDJB +39.5%
  • FCCN +24.6%
  • ZTF +7.9%
  • KOG +6.8%
  • MOR +5.1%