Quantamize End of Day Market Update
Apr 19, 2018
- US equities broadly lower with S&P 500 -0.57%, Nasdaq Composite -0.78%, RTY -0.62%
- Technology underperformed as semiconductors fall, financials continued to rally
- Consumer staples produced the worst performing stocks
- VIX closed at 15.96, down from 16.55 midday
- Cryptos higher on the day, but below midday levels
US Market Recap
US stocks broadly declined today. Corporate earnings remain the focus, with weaker results than expected in various consumer staples stocks this morning setting a negative tone for today’s trading. The VIX closed at 15.96, slightly up from a 15.92 open. Technology underperformed for the 2nd consecutive session, after providing robust returns in the first 2 sessions of the week.
The S&P 500 fell 0.57% today but rose 0.36% from midday. Financials (+1.52%) and energy (+0.14%) were the only two positive sectors. Robust returns in bank stocks (+2.11%) led the large-cap financial sector higher. Consumer staples (-3.14%), real estate (-1.67%), and information technology (-1.13%) were the biggest underperformers. Sharp declines in tobacco stocks (-11.52%) weighed down the consumer staples sector. Market breadth for the S&P 500 was notably negative with only 141 of 500 stocks advancing.
The Nasdaq Composite closed 0.78% lower, while the Nasdaq 100 declined 0.85%. Large and small-cap semiconductor stocks fell 3.76% and 3.14%, respectively. Market breadth for the Nasdaq Composite was decidedly negative with 939 stocks rising while 1444 equities retreated.
Russell 2000 stocks declined 0.62%, relatively in-line returns in the S&P 500. Technology (-1.36%), consumer staples (-1.34%) and consumer discretionary (-1.17%). Small-cap energy finished relatively flat, sharply contrasting yesterday’s 3.63% return. Financial (+0.43%) were the only sector in the Russell 2000 to finish in positive territory. Market breadth in the Russell 2000 was notably negative with only 705 stocks advancing (1295 declines).
Stocks Trending the News
Electronic Arts (EA)’s popular FIFA videogame is being studied by the Dutch Games Association to see if the videogame violates Dutch gambling laws. EA shares fell 1.46%.
Mattel (MAT) CEO may leave the company according the Wall Street Journal. Mattel shares are fell 3.17%.
Qualcom (QCOM) has sent in a second application to China’s Ministry of Commerce for its acquisition of NXP Semiconductors (NXPI). If China’s Ministry of Commerce has not approved the deal by July 25th, Qualcomm will have to pay $2 billion to NXP. Qualcomm shares fell 4.82%, while NXP shares fell 5.15%.
Shire PLC (SHP.LN) rejected Takeda Pharmaceutical (4502.JP) /42.4 billon bid this afternoon. Shire shares rose 5.89% in London.
S&P 500 Gainers
- AXP +7.59%
- SNA +6.23%
- BK +5.70%
- GWW +5.34%
S&P 500 Laggards
- PM -15.58%
- ALGN -8.76%
- LRCX -6.57%
- URI -6.54%
RTY 2000 Gainers
- ECOM +19.25%
- AAOI +11.84%
- SIEN +8.42%
- ARMO +7.87%
RTY 2000 Laggards
- PRTK -15.28%
- SNBR -14.04%
- TUSK -9.87%
- ICHR -9.55%
Cryptocurrencies have fallen slightly since our afternoon update, but still remain stronger for the day. All five major coins advanced today, with Bitcoin ($8,234.40) +1.14%, Ethereum ($554.35) +8.07%, Ripple ($0.7432) +5.87%, Bitcoin Cash ($958.36) +8.77%, and Litecoin ($144.77) +4.30%. Verge, the only negative coin in the top 25 by market cap in our earlier update, has reversed, and is now up 2.50%. Walmart has reportedly filed two patent applications that would help the company use blockchain to secure payment data. Walmart has not come out with official plans for how the company will use this technology.
Rates & FX
US bond yields finished mostly higher today, as a risk-off feel swept the market. The US 10-Year yield rose to 2.914% from 2.891% this morning. The US 30-Year yield rose to 3.102% from 3.049% this morning. The 2-10 Year spread widened to 48bps on Thursday, increasing 4bps. For the first time since April 5th, the markets had a steepening yield curve from 5 to 30 years. The USD$ was stronger today, with the US Dollar Index (DXY) rising to 89.86, up 28bps. Notably, the USD$ is posting gains against GBP$ (1.4808) and AUD$ (18.09) up 81bps and 69bps respectively.
Precious metals were mostly lower today, with the exception of Silver ($17.26) which rose 40bps. Gold ($1345.73) fell 11bps, platinum ($936.59) fell 50bps, and palladium ($1032.42) fell 40bps. Aluminum ($2537.00) and Copper ($7022.00) rallied sharply today, up 549bps and 211bps respectively. WTI Crude Oil ($68.22) fell 37bps today.
EU Market Recap
European equities finished mostly higher, though they fell below midday levels. In regional trading, only German blue chips declined (DAX -0.19%). Markets in the region traded on relatively average volume (European Composite +3.38% of 10-day average). No new sentiment drivers emerged, with market outlook centered around corporate earnings.
The Euro Stoxx 600 was flat (+0.02%), adding negligibly to yesterday’s +0.30% return. Of the 19 Euro Stoxx 600 sectors, 10 were positive. The Euro Stoxx 600 index is on pace for its 4th consecutive week of gains. Media stocks (+1.82%), oil & gas (+1.08%), and industrial goods & services (+0.72%) were the largest outperformers. Personal & household goods (-1.83%), technology (-1.21%), and healthcare (-0.49%) were the biggest laggards. Market breadth in the Euro Stoxx 600 was moderatley positive with 371 of 600 stocks advancing.
Regional markets, excluding the DAX, advanced with the CAC40 +0.21%, and the FTSE 100 +0.16%.
- WEIR.LN +6.23%
- SHP.LN +5.89%
- RTO.LN +4.51%
- BATS.LN -5.43%
- WAF.FR -5.11%
- SLA.LN -3.62%
- IMB.LN -2.89%