blog

Latest from the Quantamize Blog

US stocks post tepid gains in light volume on last day of trading in 2018

Dec 31, 2018

 

Market data as of 12:30pm EST

US Market Snapshot

  • US stocks posted early gains on optimism for a US-China trade deal in the wake of President Trump's tweet but lost most of the gains since then
  • US President Donald Trump tweets that negotiations between US and Chinese trade officials are “moving along well” with "big progress” towards a comprehensive trade deal between the world’s two largest economies 
  • The S&P 500 is currently up 0.37%, Nasdaq Composite is up 0.47%, and Russell 2000 is down 0.07%
  • Volume today is 20-40% below average on US stock exchanges 
  • Oil is flat with WTI trading at $45.30 on its way to the first annual price decline since 2015
  • Interesting fact for the day: while the S&P 500 is having its worst year since 2008, “technically”, the 9-year bull market still has not “broken” with S&P 500 still holding above its weekly trend line
  • According to Bloomberg analysis, whole valuation for the S&P 500 as measured by the Cyclically adjusted P/E (CAPE) ratio remains at historically elevated levels, the CY2018 contraction in the ratio may point to a rally in US stocks next year -- on average, in subsequent years after a 10% drop in the CAPE ratio, the real return in the S&P 500 has been +9.6% going back to 1871
  • Emerging Markets ETFs experienced their 11th straight week of inflows with USD$300.9 million flowing into emerging markets stocks ETFs
  • Healthcare (+1.09%), Consumer Discretionary (+1.02%), and Tech (+0.78%) stocks are the top performers in the S&P 500 today
  • Consumer Staples (-0.14%), Telecom (-0.41%), and Real Estate (-0.86%) stocks are the worst performers in the S&P 500 today
  • Investor sentiment for US stocks is positive with the advance/decline ratio for the S&P 500 currently at 1.72x
  • 2 stocks in the S&P500 are at 4-week highs while 0 stocks are at 4-week lows
  • 0 stocks in the S&P 500 are overbought while 33 stocks are oversold according to the 16-day RSI Measure
  • 16 stocks in the Nasdaq Composite are at 4-week highs while 312 stocks are at 4-week lows
  • 71 stocks in the Nasdaq Composite are overbought while 158 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently 26.60 moving down 1.74 from yesterday's close of 28.34

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Aflac (AFL) said it will enter reinsurance agreements on certain products with Singapore Life.  Aflac will make an initial USD$20mn minority investment in the concern as Aflac seeks to enter new markets.  Aflac describes the venture as a good example of its ability to leverage digital technology to enter new markets.  Aflac is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Amazon (AMZN) is making a big push in India to train shoppers on using its website.  Amazon has added Hindi and videos to its ordering screen to help residents on the Indian countryside, according to a report in the Wall Street Journal today.   Amazon is also adding small stores where shoppers can learn and a fleet of local delivery people what can accept payment when delivering.  Amazon is focused on the interior in Indian where 800 million people live and often d not have access to a retailer.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Camping World Holdings Inc. (CWH) shares are falling, extending its YTD loss to more than 70%, after reporting that President Roger Nuttall resigned from his position, effective immediately. Camping World Holdings is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Canada Goose (TSX: GOOS) opened its first store in China this past Friday.  The store is located in Shanghai and has seen heavy crowds since its opening.  This despite the diplomatic tension between Canada and China after Canada detained a Huawei executive at the US’s request.  Canada Goose is not rated in our Global Top Stock Ideas.
  • Facebook’s (FB) recent data scandal has brought many criticisms of inaction at the Federal Trade Commission, according to a New York Times report today.  Facebook was not responsible for consultant’s misuse of Facebook user data, the Commission rules, rankling many proponents of stronger data protection rules.  Facebook is rated is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Heron Therapeutics’ (HRTX) HTX-011, new drug application, has been accepted and granted Priority Review designation by the Food and Drug Administration. The new drug application for HTX-011 contains data from five different Phase 2 trials and two different Phase 3 trials pertaining to postoperative pain treatment. Heron Therapeutics is rated “Top Short” in our US Large-Cap Global Top Stock Ideas. 
  • Nissan’s (TSE: 7201) ousted chairman Carlos Ghosn will remain in jail until January 19th as prosecutors won more detention time for him.  Mr. Ghosn has been detained since November 19th for alleged financial crimes related to his personal finances.  Nissan is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.
  • Pacific Gas and Electric Co. (PCG) worker has been hospitalized following the explosion of a company transformer. California’s Division of Occupational Safety and Health will conduct an official investigation into the matter. PG&E is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Sears Holding Corporation (SHLD) Chairman Eddie Lampert has submitted his highly anticipated USD$4.4bn takeover bid to keep the US retailer from bankruptcy.  The takeover bid is backed by USD$1.3bn in financing from three different financial institutions. Lambert’s takeover bid is the only way for Sears to avoid liquidation. Sears is rated “Top Short” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Tencent (TCEHY, SEHK: 700) was not the beneficiary of any approval for video games as China published approval for 80 new games titles.  China’s State Administration of Press, Publication, Radio, Film, and Television published the approvals online today.  China suspended approval of all new games earlier this year throwing a cloud of uncertainty over the sector.  Tencent Amazon is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Tesla (TSLA) CEO Elon Musk will visit China in 2019 for the inauguration of Tesla’s production facility there.  Tesla’s factory is known as Gigafactory 3 and is located in Shanghai.  Elon Musk tweeted that he would be in China soon for the event without giving a date.  Tesla is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -0.81 basis points to 2.50%
  • US 5-Year Treasury Bonds are higher with yields down -2.35 basis points to 2.53%
  • US 10-Year Treasury Bonds are higher with yields down -1.45 basis points to 2.70%
  • The US Treasury 2s-5s Spread has narrowed 1.54 basis points to 0.02%
  • The US Treasury 2s-10s Spread has narrowed 0.64 basis points to 0.2%
  • US Treasury 5s-10s Spread has widened 0.9 basis points to 0.17%

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1449
  • GBP£ is currently up 0.417% against the USD$ to 1.2752
  • CHF is currently little changed against the USD$ at 1.0172
  • JPY¥ is currently down 0.508% against the USD$ to 109.71
     

Commodities

WTI Crude is currently little changed -0.24% to USD$45.22/bbl with the Brent-WTI spread up USD$1.07 to USD$7.1/bbl
Gold is currently little changed 0% to USD$1280.66/oz

 

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

S&P 500 Sector ETFs - Intraday

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

Russell 1000 Factor ETFs - Intraday

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

 

 

S&P 500 Movers

On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
Netflix Inc Communication Services 265 3.59%            1,574,099
ABIOMED Inc Health Care 329 3.25%                  60,002
CF Industries Holdings Inc Materials 43.6 2.93%                  84,543
Incyte Corp Health Care 64 2.71%                124,394
Regeneron Pharmaceuticals Inc Health Care 371 2.38%                  75,079
 
Underperformers Sector Price 1D % Chg Volume
Perrigo Co PLC Health Care 38.5 -3.66%                121,147
DISH Network Corp Communication Services 24 -3.61%                482,291
Ford Motor Co Consumer Discretionary 7.58 -2.88%            6,145,103
Kraft Heinz Co/The Consumer Staples 42.4 -2.66%            1,154,239
Nektar Therapeutics Health Care 32.7 -2.64%                162,771