blog

Latest from the Quantamize Blog

US stocks rose on trade optimism with light volume to close 2018

Dec 31, 2018

 

US Markets End of Day Snapshot

  • US stocks rose today on optimsim the US and China will make progress on trade issues in the near future
  • The S&P 500 finished up 0.85%, Nasdaq Composite up 0.77%, and Russell 2000 up 0.79%
  • Volume today is 20-40% below average on US stock exchanges 
  • Oil is 1.2% higher with WTI trading at $45.89 on its way to the first annual price decline since 2015, WTI fell 24.1% in 2018
  • 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 (+1.39%), Consumer Discretionary (+1.09%), and Industrials (+1.01%) stocks were the top performers in the S&P 500 today
  • Telecom (+0.28%), Utilities (+0.19%), and Real Estate (+0.03%) stocks were the worst performers in the S&P 500 today
  • Investor sentiment for US stocks finished positive with the advance/decline ratio for the S&P 500 closing at 5.67x
  • 2 stocks in the S&P 500 hit 4-week highs while 0 stocks reached 4-week lows
  • 0 stocks in the S&P 500 closed overbought while 33 stocks closed oversold according to the 16-day RSI Measure
  • 16 stocks in the Nasdaq Composite hit 4-week highs while 312 stocks reached 4-week lows
  • 71 stocks in the Nasdaq Composite closed overbought while 158 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed  down 2.84 points today  to 25.50 after closing at 28.34 last week

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.
  • Amazon (AMZN) plans to expand its Whole Foods stores network into suburbs where it is adding clients, according to a report in the Wall Street Journal.  Additional Whole Foods locations will allow Amazon to expand its Prime Now 2-hour delivery service.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Apollo Global Management’s (APO) USD$20 billion to acquire Arconic Inc (ARCN)is being delayed into 2019 given turmoil in the credit markets, according to a report in the NY Post today.   The report says the Apollo will proceed if markets loosen up.  Apollo Global Management Amazon is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.  Arconic is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Top Short” in our US Industrials 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.
  • Distribuidora Internacional de Alimentacion SA (BME: DIA) has executed a series of agreements following the company obtaining the last pending approval from a financial institution. The agreements will grant DIA will access to additional short-term financing of 215mm euros and 682mm euros of financing through working capital financial instruments. DIA is rated “Top Short” in our European SMID-Cap 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. 
  • Jet Airways Limited (BSE: 532617) is reportedly in talks with the State Bank of India pertaining to a short-term 15bn rupee loan to meet working capital needs and current payment obligations. Reports by Press Trust of India highlights that Jet Airway’s partner Etihad may guarantee the loan. Jet Airways is rated “Top Buy” in our India All-Cap Global Top Stock Ideas.
  • Michael Kors Holdings (KORS) has changed its name to Capri Holdings.  On Wednesday, January 2nd Capri Holdings will start trading on the NYSE under the symbol CPRI.  Capri Holdings will have about USD$8 billion is sales in 2019.  Michael Kors Holdings is not rated in our 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.  
  • Standard Chartered (LSE: STAN) Bank Hong Kong will charge a minimum brokerage fee of HK$50 for its Hong Kong securities trading service while maintaining its previous brokerage fee of 0.2%. The policy will reportedly have the largest impact on day traders. Standard Chartered Bank Hong Kong is rated “Unattractive” in our United Kingdom All-Cap 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.
  • Weight Watchers (WTW) shares fell over 6% during the last day of year as the most important season for dieting begins.  Weight Watchers has a disappointing 3Q and analysts are generally expecting an improving situation.  DA Davidson Research call the new advertising campaign “fresh and upbeat”.  Weight Watchers should deliver 12% sales growth in 2019, they highlighted in a note to clients today.  Weight Watchers is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Vestas Wind Systems A/S (CPSE: VWS) has received its first order from China State Power Investment Corporation, one of China’s five largest power companies. The order is a 19MW order of 4MW platform turbines. Additionally, the order includes a 5-year Active Output Management 4000 service agreement with delivery and commissioning expected to be completed in 3Q2019. Vestas Wind Systems is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Vodafone (LSE: VOD) Ukraine will begin offering its customers free delivery of LTE-supporting USims. The promotion will last until February 18th, 2019 and will require customers to register on the corporate online site of Vodafone. Vodafone is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas. 

 

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -2.83 basis points to 2.48%
  • US 5-Year Treasury Bonds are higher with yields down -4.36 basis points to 2.51%
  • US 10-Year Treasury Bonds are higher with yields down -3.4 basis points to 2.68%
  • The US Treasury 2s-5s Spread has narrowed 1.53 basis points to 0.02%
  • The US Treasury 2s-10s Spread has narrowed 0.57 basis points to 0.2%
  • US Treasury 5s-10s Spread has widened 0.96 basis points to 0.17%

Currencies

  • EUR€ is little changed 0.131% against the USD$ in after hours to 1.1459
  • GBP£ is up 0.433% against the USD$ in after hours to 1.2754
  • CHF is up 0.197% against the USD$ in after hours to 1.0181
  • JPY¥ is down 0.617% against the USD$ in after hours to 109.59
     

Commodities

  • WTI Crude is little changed 0.18% to USD$45.41/bbl with the Brent-WTI spread up USD$2.29 to USD$7.76/bbl
  • Gold is little changed 0.16% to USD$1282.82/oz

 

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

S&P 500 Sector ETFs - End of Day

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

Russell 1000 Factor ETFs - End of Day

*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 Real Estate 256 4.52%            3,299,815
Advanced Micro Devices Inc Health Care 17.5 3.59%          15,900,860
Keysight Technologies Inc Industrials 59.5 3.23%                296,549
Best Buy Co Inc Financials 52 3.16%            1,172,192
Regeneron Pharmaceuticals Inc Information Technology 365 3.00%                306,190
 
Underformers Sector Price 1D % Chg Volume
Perrigo Co PLC Financials 39.6 -2.93%                466,781
Cabot Oil & Gas Corp Financials 23.8 -2.61%            2,022,424
Dominion Energy Inc Industrials 73.3 -2.46%            5,590,556
SCANA Corp Information Technology 48.8 -2.27%          11,907,586
Nektar Therapeutics Real Estate 33.2 -2.23%                793,431