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Quantamize End of Day Report March 29

Mar 29, 2018

US Market Recap

Following a volatile week of trading, US equities finished broadly higher today. The Nasdaq Composite finished 1.64% higher today on volume that was 59.7% higher than its 10-day average, as the sell-off in US technology gave way to today’s rally. It was a highly positive session for recently maligned FAANG stocks with Facebook, Apple, Amazon, Netflix, and Google all closing in positive territory. While markets rebounded on the last trading day of 1Q, this quarter marks the first negative return for the S&P 500 since 2015 (-1.2%).

US trade policy continued to generate headlines after President Trump announced that he may delay the US-South Korean trade deal if progress is not made towards the denuclearization of North Korea.

The S&P 500 was up 1.38%. Technology was mixed with information technology (+2.17%) rising sharply, while telecommunications was relatively flat (+0.01%). Semiconductors (+2.80%) lifted info tech higher with Micron (+1.26%), Applied Materials (+2.87%), and Lam Research (+3.54%) all reversing after trading lower yesterday. Energy (+2.16%) and materials (+1.88%) were two of the biggest outperforming sectors today. Consumer stocks were higher as consumer discretionary rose 1.43%, while consumer staples were up 0.66%. Real estate (-0.11%) edged lower and was the only in the S&P 500 to finish with negative returns.

The Russell 2000 was up 1.08%, but small-cap stocks underperformed the broader market. Energy (+2.91%) was the biggest winner in the Russell 2000 today resulting from strong returns in gas pipelines (+4.65%) and crude oil (+3.68%). Technology in the index rose 1.93%, while materials were driven by outperformance in steel (+3.40%) and precious metals (+3.76%). Consumer stocks were mixed with consumer staples flat, in contrast to the 1.15% advance in consumer discretionary. Surging luxury items (+8.58%) drove consumer discretionary higher.

Stocks Trending the News

President Donald Trump continued to criticize AMAZON (AMZN) during his speech today in Ohio. Amazon shares rose 1.11% today.

Health Insurance company CENTENE (CNC) surged 6.50% today on news that New York Governor Andrew Cuomo may withdraw his proposed tax on health insurers.

FACEBOOK (FB) is working to stop election meddling on its site and has started to fact-check political photos and videos. The company is also working to remove fake accounts and reduce foreign interference. Facebook shares rose 4.42% today. 

S&P 500 Gainers

  • CNC +21.08%
  • MRO +5.29%
  • PVH +5.15%
  • TSCO +5.30%
RTY 2000 Gainers
  • UNT +21.08%
  • TITN +19.29%
  • MOV +15.66%
  • HRG +14.83%
S&P 500 Laggards
  • ADS -4.07%
  • WBA -3.14%
  • UHS -2.45%
  • UNH -2.06%
RTY 2000 Laggards
  • LFIN -48.50%
  • ACXM -19.04%
  • AKCA -12.77%
  • TORC-9.28%
Rates & Commodities

The US 10-Year yield closed at 2.738%, down from 2.768% this morning. The US 30-Year yield fell over the course of the day, closing at 2.974% down from an open of 3.003%. Investors continued to move into bonds despite the rally in US equities today. The US Dollar was weaker against most of the G10 currencies, but did gain 33bps against the British Pound, and GBPUSD is trading at 1.4027. Notably, the USD fell 41bps against the Japanese Yen, and USDJPY is trading at 106.40. Metals were mixed today, with Gold -0.01%, Silver +0.33%, Platinum -0.71%, and Palladium -1.97%. Oil was stronger today with WTI closing up 0.84% higher at $64.92. WTI has risen 7.45% year to date. Soft commodities were a big mover today. Corn rose 3.82%, soybeans +2.63%, and wheat +1.23%.

Cryptocurrencies

The major cryptocurrencies have continued to fall throughout the day. The major coins have traded down to the following levels in the late afternoon and are materially down for the day: Bitcoin - $7,339.63 (-7.64%); Ethereum - $398.75 (-11.15%); Ripple - $0.5341 (-7.64%); Bitcoin Cash $732.13 (-14.66%); Litecoin - $116.64 (-12.08%). Twitter confirmed that they will be banning cryptocurrency advertisements which likely led to the sell-off today. Cryptocurrencies have fallen sharply year to date, notably with Bitcoin down 48.84% YTD. Concerns over cryptocurrency regulation and legitimacy have been weighing down the market.

EU Market Recap

Going into the holiday weekend, EU equities closed today’s trading broadly higher. Despite a global tech sell-off, it was a positive week for equities in the region as they posted mostly higher returns during 3 of the 4 trading days. Today marked the last trading session for 1Q 2018, and European markets will begin the second quarter when they reopen on Tuesday.

The Euro Stoxx 600 finished trading up 0.17% on, like the US, lower volume (11% below the 10-day average). Autos & Parts continued to be an outperformer in the index, posting a return of 3.27% today. Gains in basic resources (+1.56%) were due to strong returns in oil & gas (+0.74%) and chemicals (+0.23%). Financials were relatively flat today with financial services (+0.02%) and banking (+0.19%) providing little movement. While retail (+0.60%) outperformed in the consumer discretionary sector, poor returns in travel & leisure (-1.02%) weighed on the sector. Utilities (-0.52%) underperformed the Euro Stoxx 600.

Regional markets advanced with the FTSE 100 (+0.17%), DAX (+1.31%), and CAC40 (+0.72%) all closing higher. Contrary to the robust returns this week, regional markets compiled disappointing returns in 1Q with the FTSE 100 sliding over 8%, and the Dax declining more than 6%.

EU Gainers

  • GR +10.3%
  • LN +9.0%
  • LN +7.1%
  • GR +6.4%
 EU Laggards
  • LN -3.29%
  • LN -1.99%
  • FR -1.90%
  • LN -1.87%