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Quantamize End of Day Update April 3

Apr 03, 2018

US Market Recap

US equities extended gains from midday and finished higher as markets rebounded slightly from yesterday’s debacle. The S&P 500 advanced by 1.26% with all sectors in the index finishing in positive territory. Stocks in the S&P 500 are still more than 9% off from their record high in January, despite today’s positive trading. Market breadth was strongly optimistic with an S&P 500 advance/decline ratio of 8.17 (458 advances and 46 declines) while the VIX continued to decline from midday and settled at 21.10 (-10.67%). The Nasdaq Composite was up 1.04% today, but technology was still a relative laggard. It has been a disappointing start to the quarter for technology as the sector was among the worst performers yesterday and is again one of the worst performers today.

Market sentiment was mixed earlier in trading but improved following a Bloomberg report that the White House will not take direct action against Amazon’s business. This may mitigate some of the concerns about government interference into technology. The report came on the heels of National Trade Council director Peter Navarro stating that “smart money is certainly going to buy on the [market] dips here because the economy is as strong as an ox.”

S&P 500 consumer stocks advanced broadly as consumer staples rose by 1.37% while consumer discretionary gained 1.23%. Technology offered relatively middling returns with telecommunications and information technology moving up by 0.77% and 1.01%, respectively. Energy (+2.14%) was the biggest outperformer in the S&P 500 while returns materials (+1.45%), financials (+1.38%), and industrials (+1.38%) were all relatively in-line with each other. Healthcare ended trading up 1.52%, due to strong returns in pharmaceuticals and biotechnology (+1.42%).

Stocks in the Russell 2000 advanced by 1.31%. Energy (+1.87%) was the best performing sector in the Russell 2000, as was the case in the S&P 500.  Returns in consumer stocks were broadly higher with consumer staples and consumer discretionary each rising more than 1.3%. Healthcare and technology finished as the biggest underperformers, though they both still increased by 1.04%.

Stocks Trending the News

US retail sales of e-cigarettes grew 81% during a 4-week period ending March 25, sending tobacco companies higher. ALTRIA GROUP (MO) & PHILLIP MORRIS (PM) gained 3.55% and 2.37%, respectively.

IMAX Corp. (IMAX) is partnering with Guangzhou JinYi Media Corp. and will be putting 30 more IMAX theaters in China. IMAX shares rose 7.85% today.

SPOTIFY (SPOT) IPO was priced at $165.90. Shares closed at $149.60, down 9.83% from the list price.

Jefferies analyst, Randal Konik, released a positive note on UNDER ARMOUR (UAA). Konik sees better pricing power and production reception. Under Armour shares are up 4.47%.  

S&P 500 Gainers

  • UAA +5.29%
  • FL +4.61%
  • CBS +4.24%
  • BHGE +4.14%
S&P 500 Laggards
  • VIAB -3.70%
  • Amt -1.68%
  • AYI -1.38%
  • STZ -1.35%
 RTY 2000 Gainers
  • ALNA +26.17%
  • FLXN +12.61%
  • OMER +12.60%
  • PRTA +11.44%
RTY 2000 Laggards
  • ALRN -16.22%
  • WATT -9.56%
  • MRSN -9.16%
  • HF -9.03%
Rates & Commodities

US bonds fell today, with yields rising, as investors went back into equities. The 10-Year yield rose to 2.778% from today’s open of 2.750% and the US 30-Year Yield and is at 3.014% from today’s open of 2.983%. The USD$ was slightly higher today, currently at 90.18, up 14bps. The USD$ maintained most of its gains against JPY (106.63, +70bps) and CHF (.9588, +40bps). The dollar remained weaker against CAD (1.2804, -84bps) and MXN (18.223, -12bps). Gold and silver remained around levels from this afternoon and are down 69bps at USD$ 1332.04/ounce, and down 106bps at USD$ 16.42 respectively. Platinum (USD$ 925.65) -0.94% and palladium (USD$ 934.67) -0.24% are following, as metals continued to underperform. WTI Crude oil continued to climb higher and is priced at USD$ 63.58/barrel, up 90bps.

 EU Market Recap

European equities declined broadly in their first trading session since the extended holiday weekend. US-Chinese trade tension escalation, a global technology sell-off and a Eurozone PMI of 56.6 for March which marked an 8-month low (down from 58.6 in February) drove the negative market sentiment. Markets in the region had not yet fully priced these factors in due to the long layoff.

The Euro Stoxx 600 finished 0.39% lower. Technology in the Euro Stoxx 600 continued to struggle, falling 0.67% with telecommunications moving 0.48% lower. Consumer discretionary was mixed with retail (+0.34%) and personal & household goods (+0.24%) higher, while travel & leisure (-0.89%) weighed the sector down. Basic resources (+0.38%) outperformed the broader Euro Stoxx 600, led by strong returns in oil & gas (+0.79%). Auto & Parts edged 0.04% lower after being one of the biggest outperformers towards the end of the previous quarter.

Regional markets were down as well with the FTSE 100 (-0.26%), DAX (-0.67%), and CAC40 (-0.19%) all receding on the day.

EU Gainers

  • IM +7.32%
  • IM +6.38%
  • FR +3.27%
  • LN +3.04%
EU Laggards
  • FR -5.10%
  • FR -4.54%
  • SE -4.33%
  • SS -4.07%

Major cryptocurrencies continued to rally throughout the day. Bitcoin is trading at USD$ 7,513.62 up 7.18%, Ethereum is following at USD$ 418.67, up 9.12% and Ripple at USD$ 0.5486 up 10.88%. News was light today, but South Korea’s crypto exchanges Gopax, Coinone, and Korbit promised to take steps to make the cryptocurrency market safer.