blog

Latest from the Quantamize Blog

US stocks close higher on US-China trade progress and soothing words from the Fed; WTI surge over 5%, above $52

Jan 09, 2019

 

Better Research, Better Investments.Better Research, Better Investments.

US Markets End of Day Snapshot

  • US stock closed higher, propelled by US-China trade progress and soothing words from Fed officials as well as FOMC minutes
  • The minutes from the last FOMC meeting show Fed officials encouraging a go-slow approach to rate hikes in 2019
  • Multiple Federal Reserve regional bank heads echoed comments of Fed Chief Powell, with all saying a go-slow approach to rate hikes makes the most sense at this time 
  • The US and China wrapped up trade negotiations with both sounding an optimistic tone that a final agreement could be reached
  • The US confirmed that China agreed to buy more agricultural goods, energy, and manufactured items
  • The S&P 500 finished up 0.41%, Nasdaq Composite up 0.87%, and Russell 2000 up 0.86%
  • WTI crude oil is surging 5.2%, trading at $52.38, after Saudi Arabia confirmed it is committed to supporting the price of crude
  • UK Prime Minister Theresa May will spend the day trying to convince Parliament of the merits of her Brexit deal, there will be 5 days of deliberations before a January 15th vote  
  • Energy (+1.5%), Tech (+1.24%), and Industrials (+0.63%) stocks were the top performers in the S&P 500 today
  • Real Estate (-0.43%), Utilities (-0.65%), and Consumer Staples (-0.97%) 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 2.31x
  • 90 stocks in the S&P 500 hit 4-week highs while 5 stocks reached 4-week lows
  • 3 stocks in the S&P 500 closed overbought while 2 stocks closed oversold according to the 16-day RSI Measure
  • 53 stocks in the Nasdaq Composite hit 4-week highs while 27 stocks reached 4-week lows
  • 539 stocks in the Nasdaq Composite closed overbought while 36 stocks closed oversold according to the 16-day RSI Measure
  • The VIX closed  down -20.47 points today  to 0 after closing at 20.47 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Advanced Auto Parts (AAP)  was upgraded by Merrill Lynch to buy from neutral.  Merrill Lynch hiked Advance Auto Part’s price target to USD$187, up from USD$160.  Advance Auto Part’s average price target is presently USD$200.  In the last week, Barclay’s also upgraded Advance Auto Part to buy and raised its target to USD$205.  Advance Auto Part is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Akorn Inc. (AKRX) shares are falling after saying that the company received a warning letter from the US Food and Drug Administration (FDA). The warning letter from the FDS pertained to poor aseptic and sterilization practices in April and May of 2018 at the generic drug maker’s plant in Decatur, Illinois. Akorn is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US SMID-Cap Global Top Stock Ideas. 
  • Bed, Bath & Beyond (BBBY) reported fiscal 3Q EPS of 18 cents, above 17 cents consensus.  Bed, Bath & Beyond fiscal 3Q net sales came in line at USD$3.03 billion, USD$3.04 billion was the average consensus.  Same-store sales fell 1.8%, worse than the 0.2% fall that was expected.   Bed, Bath & Beyond is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Carbonite (CARB) was upgraded from equal-weight to overweight at Barclays with a USD$38/share price target. Barclays cites an out-of-line valuation as reasoning for the upgrade. Carbonite shares fell 23% in the most recent quarter. Carbonite is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Constellation Brands Inc. (STZ) shares are falling after reporting FY3Q2018 financials that disappointed analyst expectations. Constellation Brands also warned that it expects a decline in both profit and sales from its wine and spirits business for the current fiscal year. Higher transportations costs and larger investments in marketing are also hurting the company. Constellation Brands is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas. 
  • Delta Airlines (DAL) was downgraded at Imperial Capital to in-line from outperform.  Imperial lowered Delta Airlines’ price target to USD$53 from USD$77.  Delta Airlines’ consensus price target is presently USD$67.81.  Imperial expects fewer fare hikes and an overall more challenging environment in 2019.  Delta Airlines is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Facebook (FB) and Alphabet’s (GOOGL) Google are violating cyber laws in Vietnam, according to regulators there.  Facebook and Google are allowing anti-government content on their sites, inciting anti-government sentiment, which is against Vietnamese law.  Authorities said Facebook and Google have one year to fix the problems and must work with authorities to make that happen.  Facebook is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.  Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas
  • Fiat Chrysler Automobiles NV (BIT: FCA) is reportedly near settling a two-year long criminal investigation by the US Justice Department. The investigation concerns if Fiat Chrysler knowingly sold diesel vehicles that violated emissions rules. In October, Fiat Chrysler allocated USD$810mm to deal with expenses related to diesel probes by the US Justice Department. Fiat Chrysler is not rated in our Global Top Stock Ideas.
  • Greggs Plc (LSE: GRG) reported 4Q sale-store-sales growth of 5.2% at company managed stores.  Greggs raised its earnings forecast for pretax profit of 88 million pounds, up from 86 million pounds.  Shore Capital reiterated its hold ratings, saying the company is fully valued at these levels.  Greggs is rated “Attractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • The Greenbrier Companies (GBX) shares erased gains as high as 8.5% from early in the day after Cowen called the company’s most recent reporting period, “a somewhat noisy quarter.” In reporting financials for FY1Q2019, Greenbrier generated revenue that topped the largest analyst estimate and reported an EPS that beat analysts’ consensus estimate. Greenbrier is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.  
  • KB Home (KBH) reported fourth quarter that beat average consensus estimates.  KB Home 4Q EPS of 96 cents beat 93 cents consensus.  4Q revenue came at USD$1.35 billion, a touch above USD$1.33 billion consensus.  KB Home delivered 3.389 home in the fourth quarter.  KB Homes is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Lennar (LEN) reported 4Q18 net earnings of USD$796.1 million or USD$2.42 per diluted share.  Lennar delivered 14,15 new homes, up 64% y/y.  Backlog of USD$6.6 billion is up 85% y/y.  Total revenues of USD$6.5 billion is up 71% y/y.  Lennar is rated "Attractive" in our US Large-Cap Global Top Stock Ideas and "Neutral" in our US Consumer Discretionary Global Top Stock Ideas.
  • Man Group Plc (LSE: EMG) shares are edging slightly lower after reports that Kuwait's Public Institution for Social Security (PIFSS) is suing the world’s largest public hedge fund firm for USD$156mm. The lawsuit relates to, “secret contracts with a former PIFSS executive between 1996 to 2013,” according to a statement from the government-run institution. Man Group is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.  
  • Morgan Stanley (MS) was upgraded to buy from hold at Citi Bank. Across industry ratings, Morgan Stanley maintains 20 buy recommendations, 9 hold recommendations, and 0 sell recommendations. Morgan Stanley is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Ted Baker Plc (LSE: TED) shares are soaring more than 30% after the company reported a strong Christmas sales update. Ted Baker’s stock has faced turmoil amid reports of inappropriate behavior by its founder towards staff. Ted Baker is not rated in our Global Top Stock Ideas. 
  • Tencent (TCEHY, SEHK: 700) will soon introduce its own digital assistant called “Xiaowei” for WeChat.  Tencent is introducing the digital assistant that will link to a large variety of apps, allowing users to do things like play music or order food.  Tencent has not made clear how and when Xiaowei will be rolled out.  Tencent is rated “Attractive” in our China All-Cap Global Top Stock Ideas.
  • T-Mobile US (TMUS) reported preliminary wireless additions for the fourth quarter of 1.4 million, well above the consensus expectation of 985,000.    Of those 1.4 million, 1 million were telephone customers.  Additionally, T-Mobile’s COO said the company is confident its merger with Sprint (S) will winregulatoryr approval.  T-Mobile US is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  Sprint is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • United Continental Holdings, Inc. (UAL) has been downgraded by Imperial Capital from in-line to underperform while its price target was slashed from USD$110/share to a street-low USD$73/share. Imperial Capital cites potential weakness in China and valuation re-rating due to low fuel prices as reasons for the downgrade. United Continental is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Wacker Chemie AG (XTRA: WCH) shares are rallying on news that China will begin to promote grid-parity solar and wind power projects. Bloomberg Intelligence analyst James Evans wrote on the news that, “Any acceleration of subsidy-free solar projects within China would encourage more sustainable long-term demand for suppliers across the value chain.” Wacker Chemie is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas.  
  • Weibo (WB) was downgraded yesterday by Morgan Stanley to equal-weight from overweight.  Weibo is feeling the pinch of competition from smaller players and has seen margin compression, both were cited as reasons for the downgrade.  Weibo’s next earnings report is February 12th.  Weibo is rated “Neutral” in our China All-Cap Global Top Stock Ideas.

 

Actionable and Transparent Quantitative ResearchActionable and Transparent Quantitative Research

US Treasuries

  • US 2-Year Treasury Notes are higher with yields down -3.26 basis points to 2.54%
  • US 5-Year Treasury Bonds are higher with yields down -3.2 basis points to 2.54%
  • US 10-Year Treasury Bonds are higher with yields down -1.8 basis points to 2.69%
  • The US Treasury 2s-5s Spread has widened 0.05 basis points to -0.01%
  • The US Treasury 2s-10s Spread has widened 1.46 basis points to 0.14%
  • US Treasury 5s-10s Spread has widened 1.4 basis points to 0.15%

Currencies

  • EUR€ is up 0.9% against the USD$ in after hours to 1.1544
  • GBP£ is up 0.59% against the USD$ in after hours to 1.2792
  • CHF is up 0.736% against the USD$ in after hours to 1.0266
  • JPY¥ is down 0.598% against the USD$ in after hours to 108.1

Commodities

  • WTI Crude is up 5.18% to USD$52.36/bbl with the Brent-WTI spread down USD$-0.38 to USD$8.17/bbl
  • Gold is up 0.6% to USD$1293.06/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

 

Get Unbiased Quantitative Investment Research from Advanced AI Machine Learning Technology and Maximize your ReturnsGet Unbiased Quantitative Investment Research from Advanced AI Machine Learning Technology and Maximize your Returns

S&P 500 Movers

On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
Lennar Corp Utilities 39.5 7.93%            1,843,923
Intuitive Surgical Inc Health Care 469 7.06%                483,921
DR Horton Inc Materials 34.6 6.26%            1,811,717
ABIOMED Inc Energy 316 5.65%                202,603
Lam Research Corp Energy 133 5.16%            1,344,311
 
Underformers Sector Price 1D % Chg Volume
Constellation Brands Inc Real Estate 164 -12.42%            1,917,941
Digital Realty Trust Inc Consumer Discretionary 105 -5.13%                827,503
Estee Lauder Cos Inc/The Real Estate 128 -3.69%                887,802
CVS Health Corp Consumer Staples 65.2 -3.63%            2,832,262
CenturyLink Inc Information Technology 15.3 -3.29%            4,160,238

Morning Brief
A quick GLOBAL RECAP TO START YOUR DAY