Quantamize End of Day Update March 28

Mar 28, 2018
US Market Recap

US equities finished trading broadly lower. After erasing early losses, and posting positive returns at midday, US markets declined again. The sell-off in technology continued as fears of tighter regulation, increased US-Chinese trade friction, and profit taking pushed markets lower.

The S&P 500 closed slightly lower, falling 0.29%. Energy (-1.99%) was the worst performing sector on the day and was also the worst performer in the S&P 500 at midday. Materials (-1.33%) also declined sharply. Consumer stocks were mixed with consumer discretionary falling by 1.24%, while consumer staples gained 1.38%. Technology in the S&P 500 was mixed as well. Telecommunications increased by 1.64%, in contrast to a 0.56% decline in information technology. Real estate (+1.77%) was the biggest outperforming sector in the S&P 500 today.

Russell 2000 stocks were relatively flat and receded by 0.04% as small-cap stocks outperformed the broader market. Technology suffered the biggest decline, retreating by 1.68%. Disappointing returns in electronics equipment (-5.32%) and communications technology (-2.16%) weighed the technology sector down. Energy struggled again today, led lower by underperforming gas pipeline (-2.35%) and oil well (-2.11%) stocks. Financial services were the biggest outperformer in the Russell 2000, and strong returns by commercial financials and mortgages (+1.85%) lifted the sector higher.

The NASDAQ Composite fell 0.85% and underperformed the broader market. The Nasdaq opened flat and

edged higher by midday before closing down. Struggling semiconductors such as Micron Technology (-1.74%), Applied Materials (-2.49%), and Lam Research (-3.16%) weighed the index down.

Stocks Trending the News

BAIDU (BIDU) will be selling $1.5 billion in publicly traded notes. Baidu is rated a A3 by Moody’s, and A by Fitch. Shares of Baidu fell 3.40% today.

SunTrust analyst, Charles Brady raised his 2018 and 2019 EPS estimates for GENERAC HOLDINGS (GNRC). Brady believes that the four snow storms in March caused an increase in demand for portable generators. Brady already had Generac rated as a buy. Shares of Generac closed 2.15% higher.

HASBRO (HAS) CEO, Brian Goldner, said that the company made a mistake by marketing Star Wars toys in September 2017, three months before the movie was released in December. Hasbro shares closed down 0.30%.

Scandal is still surrounding WYNN RESORTS (WYNN), after Elain Wynn, ex-wife of former CEO Steve Wynn, said that company lawyers downplayed allegations of sexual misconduct against Steve Wynn. Shares of Wynn Resorts fell 0.95%.

S&P 500 Gainers

  • M +4.34%
  • EQR +3.71%
  • SPG +3.62%
  • CVS +3.48%
RTY 2000 Gainers
  • RH +22.48%
  • AGX +17.28%
  • LHO +13.24%
  • UNF +10.18%
S&P 500 Laggards
  • BEN -9.31%
  • CXO -8.76%
  • RHT -5.32%
  • NFLX -4.96%
RTY 2000 Laggards
  • PTCT -15.29%
  • TBPH -9.35%
  • ODT -8.85%
  • SGH -8.72%
Rates & Commodities

The US 10-Year yield at market close was at 2.779%, slightly higher from 2.757% on today’s open. The US 30-Year Yield is slightly higher from the open of 3.013% and its yield is at 3.017%. The USD$ traded sharply higher on the day and is back above a 90-price level at 90.10, up 86bps on the day. Notably, the USD$ is 131bps higher against the JPY¥ (106.85), and 109bps higher against the CHF (.956). The weakness in the USD$ over the last couple of weeks may be fading as uncertainty in global markets rises and investors seemingly are flocking to US assets this week. Gold is sharply lower, trading in its traditional negative correlation with the USD$ and is down 137bps at USD$ 1326.57/ounce from USD$ 1337.08/ounce this morning. Silver (USD$ 16.31), platinum (USD$ 938.17) and palladium (USD$ 969.20) followed and are down 134bps, 59bps and 48bps respectively. Following USD$ strength and rising Crude oil inventories from the EIA data release, WTI Crude oil is sharply lower on the day, down 93bs at USD$ 64.64/barrel. WTI Crude reversed off the lows from midday as it was down as much as 215bps.

Cryptocurrencies

Most cryptocurrencies have remained lower from midday; however, some coins are trading higher. Bitcoin is at USD$ 7,960.68 down 0.10%, Ethereum is at USD$449.62 down 2.10%, and Ripple is at USD$ .579, down 1.68%. News affecting sentiment following midday was light in the cryptocurrency world. Japanese luxury car dealer, L’Operaio, has said it will begin accepting Bitcoin as a payment option from customers. Iconiq Lab, a global ICO and token sale accelerator program based in Germany, will soon launch two new branches in the US and Asia. The US branch will open in New York in May, and in Asia, a Singaporean based branch will open in July 2018. Lastly, Ripple has joined the Linux Foundation-backed Hyperledger blockchain consortium.

EU Market Recap

European equities closed mostly higher today, following yesterday’s positive returns. Equities in the region opened lower, were mixed at midday, and finished broadly higher. There was little new economic news, though global technology continues to react negatively to the Monday’s technology-centered US-Chinese trade tensions.

The Euro Stoxx 600 finished up 0.46%, with an advance/decline ratio of 0.57 (334 advances and 255 declines). Strong returns in utilities (+3.24%), personal and household goods (+1.98%), and healthcare (+1.85%) lifted the index higher. Basic resources (-1.90%) was the worst performing sector in the Euro Stoxx 600, led lower by disappointing returns in chemicals (-0.56%) and oil & gas (-0.85%). Technology (-1.79%) was another underperformer today, in contrast to yesterday’s rally in the sector.

Regional markets finished mixed today with the FTSE 100 (+0.64%) and CAC40 (+0.29%) advancing, while the DAX declined by 0.25%. On a YTD, regional EU markets are broadly negative: FTSE 100 (-8.36%); DAX (-7.56%); and CAC40 (-3.43%).   

EU Gainers

  • SHP.LN +14.01%
  • CEN.FP +9.3%
  • SVT.LN +6.08%
  • ULVR.LN +4.72%
 EU Laggards
  • S92.GR -11.1%
  • WUW.GR -9.2%
  • HHFA.GR -9.1%
  • EVT.GR -8.8%