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Quantamize End of Day Market Update April 17

Apr 17, 2018

Key Highlights

-US equities closed higher, with the Dow +0.87%, S&P 500 +1.07%, and Nasdaq Composite +1.74%

-Technology was the best performer today, while financials were the biggest underperformer.

-FAANG stocks outperformed, highlighting renewing strength in large-cap tech

-European equities advanced broadly on above average volume

-US bond yield finished lower today, with the US 10-year at 2.822%

-Bitcoin finished 1.01% lower, after dropping in the mid-afternoon


US Market Recap

US markets closed broadly higher, holding earlier gains. Markets failed to find direction after midday, finishing relatively flat from the afternoon onward. Major US indices have risen in 8 of the previous 11 sessions. Volume was light, with US markets trading below their average (5.83bn shares vs 6.24bn 30-day average). The VIX closed at 15.25, down from an open of 16.56.

The S&P 500 rose 1.07%, with market breadth notably positive (403 of 500 stocks advanced).Large-cap technology increased by 2.11% and was the best performing sector. Consumer discretionary stocks advanced 1.87%; retail stocks (+3.04%) wee a catalyst for consumer discretionary outperformance. Energy (+0.40%) continued a trend of positive returns but was a relative underperformer today. Financials (-0.07%) were the only sector in the red, led by weak returns in bank stocks (-0.55%).

The Nasdaq Composite finished 1.74% higher, significantly outperforming both the S&P 500 and Russell 2000. Nasdaq 1000 stocks jumped 2.12%, with significant strength in large-cap technology. Market breadth for the Nasdaq 100 was decidedly positive with 90 stocks advancing (10 declining). FAANG stocks mostly outperformed as only Apple (+1.38%) underperformed the broader Nasdaq Composite. Facebook (+2.32%) Amazon (+4.32%), Netflix (+9.19%), and Alphabet (+3.18%) all outperformed the Nasdaq Composite.

Russell 2000 stocks advanced 1.07%, with small-cap stocks in-line with large-cap equities. Technology was the best performer, with communications (+2.96%) and computer technology (+2.91%) leading the outperformance. Small-cap consumer staples moved 1.32% higher, providing strong returns, and contrasting disappointing returns in S&P 500 consumer staples stocks. Energy (+1.10%) continued to show strength, modestly outperforming the broader Russell 2000. Financials finished up 0.11% but were the worst performers.


Companies Trending in the News

CSX Corp. (CSX) reported 1Q earnings per share of $0.78, beating estimates of $0.65. CSX reported 1Q revenue of $2.88 billion, beating estimates of $2.79 billion. CSX shares are up 3.94% post-market.

Toys “R” Us rejected a rescue offer bid by Isaac Larian, sending toy-maker stocks lower. Hasbro (HAS) shares fell 2.25%, while Mattel (MAT) shares fell 2.65%.

Lam Research (LRCX) reported 3Q earnings per share of $4.79, beating estimates of $4.39. Lam Research reported 3Q revenue of $2.89 billion, beating estimates of $2.86 billion. Lam Research shares are down 4.14% post-market.

Starbucks (SBUX) will be closing 8,000 of its domestic restaurants for bias training on May 29th. This is following the arrest of two black men in a Philadelphia restaurant. Shares of Starbucks closed up 0.67%.

Southwest Airlines (LUV) plane engine malfunctioned on a flight from New York to Dallas, causing an emergency landing in Philadelphia. One passenger died. Shares of Southwest fell 1.13%.

United Continental Holdings (UAL) reported 1Q earnings per share of $0.50, beating estimates of $0.38. United Continental reported 1Q revenue of $9.03 billion, beating estimates of $8.99 billion. United Continental shares are up 2.76% post-market.

Two of Xerox (XRX)’s largest investors, Carl Icahn and Darwin Deason, are fighting against Fujifilm Holdings (4901-JP)’s $6.1 billion takeover of Xerox. Icahn and Deason feel that the offer undervalues Xerox, and that CEO, Jeffery Jacobson, acted in his own interest instead of the interests of the company. Xerox shares are up 3.17%.


S&P 500 Gainers

  • NFLX +9.19%
  • AMZN +4.32%
  • LRCX +4.31%
  • PLD +4.31%


S&P 500 Laggards

  • CMA -3.51%
  • BMY -3.14%
  • RF -2.82%
  • MAT -2.65%


RTY 2000 Gainers

  • CLXT +20.86%
  • GTHX +12.10%
  • CVNA +11.36%
  • STAA +10.53%


RTY 2000 Laggards

  • APLS -16.60%
  • REVG -8.81%
  • HTZ -7.14%
  • ARMO -7.06%


Rates & FX

US bonds yields were down, despite the positive move in US equities. The US 10-Year Yield is at 2.822%, down from today’s open of 2.834% and the US 30-Year Yield is at 3.011%, down from today’s open of 3.035%. The USD$ was slightly stronger today, at 89.48, up 6bps. The USD$ held its strength against the RUB? throughout the day, up 60bps to 61.503. The USD continued to strengthen against the CHF, up 60bps to 0.9657.



Precious metals were stronger today, with gold up 11bps (USD$1347.46), silver up 63bps (USD$16.78), platinum up 80bps (USD$936.72), and palladium up 109bps (USD$1,014.92). WTI was stronger today, up 38bps to USD$66.47/barrel.



Fifteen of the largest twenty-five cryptocurrencies by market cap moved higher today. Bitcoin ($7,930.21) and Ethereum ($504.87) were two of the decliners, falling 1.01% and 0.13%, respectively. Notable gainers were Litecoin +5.14% (134.18), EOS +6.10% (8.58), Stellar +10.40% ($0.3081), and Populous +20.62% ($24.23). Crypto news was light this afternoon. New York Attorney General, Eric Schneiderman, has reached out to 13 cryptoexchanges to learn more about the trading platforms protect consumer assets. Gemini, GDAX, Poloniex, and Kraken were just a few of the major exchanges Schneiderman reached out to. Amazon won a patent to supply subscribers with real-time cryptocurrency transaction data. It is currently unclear what Amazon plans to do with the data.


EU Market Recap

European stocks finished the trading session positive, reversing from yesterday’s negative move, and ending at a 7-week high. The European Composite traded on above average volume (9.33bn shares vs 7.30bn 30-day average). Strong corporate earnings in the region lifted markets. Positive momentum from US markets rolled over, boosting European equities during later-session trading.

The Euro Stoxx 600 rose 0.80%, with 18 of 19 sectors in the black. Market breadth for the Euro Stoxx 600 was positive as 488 of 600 companies advanced. Technology (+1.99%) was the largest outperformer, with a rally in global technology. Strong returns in chemical stocks (+1.64%) drove the outperformance of the basic resources sector. Autos & parts (+1.61%) provided strong returns, following news that China will curtail ownership limits on foreign auto companies by 2022. Real estate and healthcare both outperformed, rising 1.34% and 0.98%, respectively. Banking stocks, which gained 0.68%, were the most heavily traded (112% of 30-day average).    

Regional markets finished higher across the board, with the DAX rising 1.57%, the FTSE 100 gaining 0.39%, and the CAC40 advancing 0.76%.


EU Gainers

  • VL.NA +3.00%
  • AIR.FR +2.99%
  • BAYN.GR +2.76%
  • DPW.GR +2.00%

EU Laggards

  • DPW3.GR -11.6%
  • RB.LN -2.8%
  • VIV.FR -1.42%
  • MC.FR -1.22%