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Quantamize Midday Report March 14

Mar 14, 2018

US Midday Review

US equities are trading lower midday. Large-cap stocks are trailing midday with the S&P 500 down 0.15%. Industrials -1.32%, materials -1.01%, and consumer staples -0.86% were the worst performing sectors. The utilities +0.82%, real estate +0.04%, and consumer discretionary -0.19% sectors were outperformers.

Technology is up +0.1%, outperforming the overall market. It is led higher by the internet & social media +0.9%, networking & communications +0.3% and hardware +0.1% industries. Semiconductors -0.1%, software -0.1%, and services -0.1% weighed on the sector.

The Russell 2000 is also lower by 0.15%, as small-cap stocks perform in-line with the S&P index. Materials are down -1.05% as the RTY Steel Index -2.07% weighs down the sector. Durables -0.67%, and financial services -0.64% are also underperformers in today’s session. Utilities +0.14% are higher as are staples +0.14%, which is led by a +0.50% rise in the RTY Tabaco index.

S&P Industrial Laggards

  • BA -4.39%
  • RTN -2.18%
  • NOC -1.61%
S&P Materials Laggards
  • DWDP -1.31%
  • EMN -1.51%
  • MLM -1.83%
S&P Utilities Movers
  • EIX +2.96%
  • NEE +1.91%
  • PEG +1.62%
S&P Real Estate Movers
  • EQIX +1.9%
  • HST +1.18%
  • MAA +0.68%

Rates & Commodities Recap

Global markets have kicked into a risk off mood today following slightly soft US economic data today, and the downward adjustment of the Atlanta Fed’s GDPNow index to a Q1 GDP estimate of 1.85% from a previous release of 2.48% on March 9. Additional news that seems to be contributing to the risk off sentiment includes the White House announcement today that the US plans to reduce its trade deficit with China by $100bn.

Following these headlines, the 10-Year is down to 2.81% from 2.846% this morning and the 20+ Year ETF (TLT) is up 86bps however High Yield Corporate Bonds (HYG) remain flat. The USD is flat despite the risk off sentiment. Most notably the JPY is 30bps stronger against the USD. Investors do not seem to be panicking as Gold is down 19bps on the day – which has not served as a safe-haven asset as of late due its positive correlation with the S&P 500 over the past month and a half.  Other Precious Metals are trading up on the day except for platinum, which is down 27bps on the day. WTI Crude Oil is trading slightly lower on the day - down 15bps off the OPEC data release today – which highlights that US Shale output is outpacing Shale demand which undermines OPEC supply cuts.

EU Midday Review

European markets were lower by 0.15% at the close, with sentiment driving new including softer than expected EU industrial output figures.

Basic resources +0.93%, construction and materials +0.71%, and personal household goods +0.64% were outperformers in the market, while chemicals -1.03%, banks -0.98%, and oil and gas -0.66% were laggards.

Regional markets were mixed with the DAX advancing +0.14%, while the CAC40 -0.18% and FTSE 100 -0.09% both receded.

EU Laggards

  • SPO -49.9%
  • BPOST -21.2%
  • ALU -18.7%
  • NAT -16.2%
  • CLAS -10.8%
EU Movers
  • BUR +30.1%
  • PTY +15.1%
  • RPT +14.8%
  • EMIS +12.5%
  • ADS +11.7%