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Quantamize End of Day Update March 21st

Mar 21, 2018

US equities finished mixed in today’s trading. After early morning releases of the US current account balance and existing home sales for the month of February, FOMC announced that interest rates will be raised by 0.25% which was in-line with consensus estimates. The FED’s Dot-Plot update continues to point to two more rate hikes by year-end though the distribution of the estimates suggests the odds of four rate hikes for CY2018 is a real possibility.  The fed estimates for 2019 and 2020 were increased to 2.9% (from 2.7%) and 3.4% (from 3.1%). The VIX closed trading at 17.86, down 0.34 pts.

The S&P 500 closed trading 0.18% lower after rising initially close to 1.0% following the release of the FOMC decision. Energy (+2.63%) continued its strong performance for midday, and finished as the top performing sector. Advances in materials (+1.11%) and industrials (+0.12%) round out the only sectors to finish with positive returns in the S&P 500. Consumer staples (-1.32%) compounded losses from earlier in today’s trading, and finished as the worst performing sector. Real estate (-0.93%) stocks declined as well. Small-cap shares fared better than the broader market, and the Russell 2000 advanced by 0.57%

There was some inter-day movements in 10-year yields, rising to 2.94% from an opening level of 2.894%. The yield on the 10-year closed at 2.884%.

Stocks Trending in the News

DEERE & CO (DE) CEO Samuel Allen told Reuters that Deere may be negatively affected by the US tariffs on steel imports, and the retaliatory measures that other countries may take.  Deere shares closed down 1.21%.

Mark Zuckerberg, CEO of FACEBOOK (FB), finally spoke to the public regarding the controversy surrounding its user data. Zuckerberg said that Facebook made mistakes, and they are working to address the issue. Facebook shares closed up 0.74%.

GLAXOSMITHKLINE (GSK.LN) appears to be the favorite to acquire PFIZER's (PFE) consumer healthcare unit. GSK is expected to pay $20 billion for the unit, which includes brands like Advil, Centrum, and many others. GSK shares were 0.09% lower in London today, and Pfizer shares closed 0.17% lower.

Shareholders of TESLA (TSLA) approved package that could pay CEO Elon Musk $50 billion. The deal will reportedly pay Musk a minimum of $2.6 billion. Tesla's market cap must exceed $650 billion in the next ten years for Musk to receive the full compensation. Tesla currently has a market cap of $52 billion. Tesla shares were higher 1.93% today.

S&P 500 Gainers

  • RRC +7.6%
  • MRO +7.0%
  • NBL +6.0%
  • HP 5.5%
S&P 500 Laggards
  • GIS -8.9%
  • LUV -4.8%
  • SJM -4.2%
  • K -4.0%

EU Market Recap

European markets closed lower in today’s trading. Market breadth for the Euro Stoxx 600 was negative with an advance/decline ratio of 0.69 (208 advances and 372 declines), and was relatively weak as 48% of companies in the Euro Stoxx 600 finished above their 200 day moving average today compared to 54% at yesterday’s close. Top corporate headlines from the region included Vivendi’s (VIV.FP) sale of its 27% stake in Ubisoft (UBI.FP). Shares of Ubisoft rose, and advanced 3.3% by the close. BMW (BMW.GR) announced that is profit growth may become flat for the first time in a decade due to investments in new product lines as well as continued investments into electric vehicles.

The Euro Stoxx 600 fell 0.19%. Basic resources (+1.66%) was the best performing sector with returns in oil & gas (1.23%) lifting the sector higher. Utilities (+0.35%) were the next best performing sector. Consumer staples and consumer discretionary stocks were lower as losses in food & beverage (-1.16%) and travel and leisure (-0.97%) weighed down their respective sectors. Real estate was the most active sector, and traded at a volume 127% of its 30-day moving average.

Regional markets receded as the FTSE 100 (-0.32%), DAX (-0.01%), and CAC40 (-0.28%) all declined.

EU Gainers

  • WAC.GR +6.1%
  • VT9.GR +4.7%
  • GMM.GR +4.5%
  • BPOST.BB +3.9%
EU Laggards
  • DAL.IM -10.0%
  • OHB.GR -7.1%
  • GETI.B.SS -6.9%
  • CGM.FP -4.3%