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Quantamize Midday Market Update April 19

Apr 19, 2018

Quantamize Afternoon Market Update April 19

Key Highlights

-US equities broadly lower with S&P 500 -0.93%, Nasdaq composite -0.79%, RTY -0.57%

-Consumer staples lower on earnings, technology continues to decline

-Financials reversed from recent underperformance

-VIX is up to 16.55 from 15.92, market volatility rising

-24 of top 25 cryptos by market cap are positive

 

US Markets Midday Review

US equities are down across the board, extending earlier declines. Stocks in the US are on pace for the first negative session this week, trading on 110.44% of 30-day average volume. The VIX rose to 16.55 from an open of 15.92, indicating rising market uncertainty. Weakness in technology rolled over from yesterday, with the tech sector strongly underperforming. Consumer staples are a laggard on disappointing earnings.

The S&P 500 has fallen 0.93%. All sectors in the red, except financials (+1.12%). Consumer staples(-3.51%) is the worst performer, producing 2 of the 3 biggest decliners in the S&P 500 (Philip Morris International and Altria Group). Real estate (-2.16%), and information technology (-1.42%) rounded out the largest underperformers. Energy moved 0.22% lower, bucking a recent trend of positive trading. Market breadth in the S&P 500 was notably negative with only 96 of 500 stocks in the black.

Nasdaq Composite stocks retreated 0.79%. The Nasdaq 100 moved 0.91% lower, signaling weakness in large-cap technology. Large-cap semiconductors continue to struggle, with S&P 500 semiconductor stocks down 3.93%, building on yesterday’s decline.

The Russell 2000 declined 0.57%, with small-cap stocks equities slightly outperforming large-cap stocks. Consumer stocks have fallen significantly, with consumer staples and consumer discretionary retreating 1.77% and 1.59%, respectively. Technology (-1.58%) is compounding on yesterday’s route, while materials and healthcare both receded by more than 1%. Small-cap energy is down 0.23%, sharply contrasting yesterday’s 3.63% gain. Financials (+0.13%) are the only sector in positive territory, rising 0.13%. Market breadth for the Russell 2000 is decidedly negative with 1421 of 2000 stocks declining.   

 

S&P 500 Gainers

  • SNA +6.72%
  • AXP +5.92%
  • GWW +4.73%
  • BK +4.32%

 

S&P 500 Laggards

  • PM -15.74%
  • ALGN -8.18%
  • MO -6.83%
  • URI -6.41%

 

Russell 2000 Gainers

  • ECOM +18.18%
  • ZYNE +11.65%
  • ARMO +7.32%
  • AAOI +6.40%

 

Russell 2000 Laggards

  • PRTK -16.04%
  • TUSK -15.25%
  • SNBR -14.82%
  • ICHR -10.11%

 

Cryptocurrencies

Cryptocurrencies continued to tick higher from this morning’s update, 24 of the top 25 cryptocurrencies by market cap are higher today. All five major coins are up, with Bitcoin ($8,251.31) +2.11%, Ethereum ($555.38) +8.07%, Ripple ($0.7400) +8.31%, Bitcoin Cash ($973.35) +12.46%, and Litecoin ($142.21) +3.78%. Other notable gainers were EOS ($9.34) +6.31%, IOTA ($1.76) +8.92%, TRON ($0.04988) +9.88%, and Bitcoin Gold ($58.74) +9.82%. The only negative coin in the top 25 by market cap was Verge ($0.06979) falling 0.62%. Gem, a blockchain startup, is nearing a launch of a cryptocurrency platform that would allow users to track, trade, and store cryptocurrencies in a single app. German insurance company, Allianz, has reportedly been testing an internal cryptocurrency to move money around the firm.

 

Stocks Trending in the News

Allergan (AGN) dismissed reports that it is considering bidding for British biotech company, Shire PLC (SHP.LN). Takeda Pharmaceutical (4502.JP) had finalized an offer for Shire earlier today.  Allergan shares are down 3.48%, Shire shares closed up 5.89% in London, while Takeda shares closed down 0.05% in Japan.

PPG Industries (PPG) is investigating into whether it made a $6.4 million error in its expense accounting. PPG shares are down 3.29%.

Semiconductor stocks are falling today after Taiwan Semiconductor Manufacturing Co. (2330.TT) provided a forecast of sales for its current quarter to be a billion dollars less than what analysts are expecting. The S&P 500 semiconductor index is down 3.67%.

Darwin Deason, a major shareholder of Xerox (XRX), filed an amended complaint against the company for its potential sale of Fujifilm Holdings (4901.JP). Xerox is down 0.20%, and Fujifilm closed up 0.39%.