blog

Latest from the Quantamize Blog

European stocks close lower as growth concerns dampen sentiment

Feb 08, 2019

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
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
 

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

European Markets

  • European stocks close session lower and end the week with the Euro Stoxx 600 down 0.5%
  • The Euro Stoxx 600 closed down -0.56%, the FTSE 100 declined -0.32%, the DAX fell -1.05%, and the CAC 40 finished down -0.48%
  • BCA Research, an independent research firm, argues that global stocks should remain directionless in the near-term as there does not appear to be any clear direction to market at the moment.  BCA observes that the MSCI All-Country index hasn’t risen or fallen for more than three months at any time since 2H2017.  The independent research firm believes this trend will continue given the vulnerability of stocks valuations to interest rates.
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.27x
  • Health Care (+0.12%), Media (+0.01%), and Food & Beverage (-0.05%) stocks were the top performers in the Euro Stoxx 600 today
  • Automobiles & Parts (-2.26%), Construction & Materials (-1.47%), and Financial Services (-1.41%) stocks were the worst performers in the Euro Stoxx 600 today
  • 94 stocks in the Euro Stoxx 600 hit 4-week highs while 34 stocks closed at 4-week lows
  • 28 stocks in the Euro Stoxx 600 finished the trading session overbought while 11 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed little changed +0.49 points today to 16.66 after closing at 16.17 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • Arconic Inc. (ARNC) announced plans to break into two separate companies while also announcing that it will slash its dividend by two-thirds. Arconic will split into an Engineered Products & Forging company and a Global Rolled Products business company. Arconic cut its dividend from USD$0.06 to USD$0.02, citing a need to trim costs. Arconic Inc. is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • Avista Corp. (AVA) announced CY4Q2018 adjusted EPS of USD$0.70 while consensus was for USD$0.65. Avista Corp. sees FY2019 adjusted EPS between USD$2.78 and USD$2.98. Avista also said that it will issue USD$165mm of long-term debt and up to USD$50mm of equity to refinance its debt, fund capex, and maintain its capital structure in FY2019. Avista Corp. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • CBOE Global Markets Inc. (CBOE) announced CY4Q2018 adjusted EPS of USD$1.54 while consensus was for USD$1.37. CBOE Global Markets Inc. reported revenue of USD$334.4mm in CY4Q2018 while analysts expected USD$324.5mm. CBOE Global Markets Inc. told analysts that it sees FY2019 capital expenditures between USD$50mm and USD$55mm. CBOE Global Markets Inc. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Clevland-Cliffs Inc. (CLF) announced CY4Q2018 adjusted EPS from continuing operations of USD$2.03 while consensus was for USD$0.59. Clevland-Cliffs Inc. reported revenue of USD$693.3mm in CY4Q2018 while analysts expected USD$715.7mm. Clevland-Cliffs Inc. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Coty Inc. (COTY) announced FY2Q2019 adjusted EPS of USD$0.24 while consensus was for USD$0.22.  Coty Inc. reported revenue of USD$2.51 billion in FY2Q2019 while analysts expected USD$2.46 billion. Coty Inc. declared a quarterly dividend of ISD$0.125 per share. Coty Inc. is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Staples Global Top Stock Ideas. 
  • The potential merger of Duetsche Bank AG (DB: DBK) and Commerzbank AG (DB: CBK) appears to be supported by German Finance Minister Olaf Scholz after he said at a Bloomberg event in London on Friday that it is, “important to have a strong banking sector that is able to do what national champions are able to do.” Scholz also added, “We are happy to have a lot of international banks acting in Germany, but also to have a stable banking sector in Germany that is able to go with any company abroad.” Duetsche Bank is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. Commerzbank is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas. 
  • DXC Technology (DXC) reported adjusted third quarter 2019 EPS of USD$2 23 beating consensus of USD$2.05.  DXC Technology third quarter 2019 revenue came at USD$5.18 billion, in line with consensus of USD$5.16 billion.  DXC Technology is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Exelon Corp. (EXC) announced CY4Q2018 adjusted EPS of USD$0.58 while consensus was for USD$0.57. Exelon Corp. sees FY2019 adjusted EPS of between USD$3.00 and USD$3.30, the midpoint of which slightly misses analyst expectations of USD$3.17. Exelon Corp. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Fiserv (FISV) reported fourth quarter adjusted EPS of USD$0.84 in line with consensus of USD$0.86.  Fiserv fourth quarter revenue came at USD$1.55 billion matching consensus of USD$1.55 billion.  Fiserv saw internal revenue growth of 4.5% in the fourth quarter.  Fiserv is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • GrafTech International (EAF) announced CY4Q2018 adjusted EPS of USD$0.79 while consensus was for USD$0.71. GrafTech International reported revenue of USD$532.8mm in CY4Q2018 while analysts expected USD$476.8mm. GrafTech International’s CEO said on a call with analysts, “Looking ahead to 2019, demand for our products remains solid and we expect to have continued robust cash.” GrafTech International is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Goodyear Tire & Rubber (GT) announced CY4Q2018 adjusted EPS of USD$0.51 while consensus was for USD$0.60. Goodyear Tire & Rubber observed net sales of USD$3.88bn in CY4Q2018 while analysts expected USD$3.88bn -- the company cited, “unfavorable currency translation,” as reasoning for the revenue miss. Goodyear Tire & Rubber is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Hasbro Inc. (HAS) announced CY4Q2018 adjusted EPS of USD$1.33 widely missing consensus of USD$1.71. Hasbro Inc. reported revenue of USD$1.39 billion in CY4Q2018 while analysts expected USD$1.71. Hasbro Inc. Hiked its quarterly dividend to 68 cents per share, up from 63 cents, but below 69 cents expected.. Hasbro Inc. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Leoni (DB: LEO) shares tanked the most intraday since October 2015 after the company suspended a dividend payment due to falling earnings and issued a profit warning. Metzler cut its recommendation for Leoni from buy to hold on the news and told clients that the company’s announcement is, “is one warning too much -- and too hefty.” Leoni is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas.  
  • Mattel (MAT) reported fourth quarter adjusted EPS of USD$0.04, strongly beating consensus of 14 cents per share loss. Mattel fourth quarter revenue came at USD$1.52 billion beating consensus of USD$1.44 billion.  Mattel posted its first beat on quarterly earnings in 3 years, seeing better than expected sales in Barbie and Hot Wheels.  Mattel is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Motorola Solutions (MSI) reported fourth quarter adjusted EPS of USD$2.63 beating consensus of USD$2.54. Motorola Solutions fourth quarter revenue came at USD$2.25 billion in line with consensus of USD$2.22 billion.  Motorola Solutions is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Phillips 66 (PSX) announced CY4Q2018 adjusted ebitda of USD$309.00mm while analysts expected USD$282.7mm. Phillips 66 generated earnings per unit of USD$1.09 in CY4Q2018 while consensus was for USD$1.02.  Phillips 66 is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Univar Inc. (UNVR) announced CY4Q2018 adjusted EPS of USD$0.33 while consensus was for USD$0.32. Univar Inc. reported net sales of USD$1.97 billion in CY4Q2018 while analysts expected USD$2.01 billion. Univar Inc. sees FY1Q2019 adjusted EPS between USD$0.27 and USD$0.29. Univar Inc. is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas. 
  • Vale (VALE) has lost its license to operate the taillings dam that collapsed.  Additionally, emails have surfaced showing dam inspectors warning of potential problems with the 43-year-old earthen dam.  Vale announced the evacuation of 500 residents downstream of a different dam at another of Vale’s mines due to fears of a potential collapse.  Vale has a number of steps it must complete to bring the mine back online and that is not expected to be any time soon.  Vale is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas.
  • Wirecard AG (XTRA: WDI) shares continued to plunge despite the company fighting back against allegations of financial irregularities, money laundering, and forgery at its Asian unit. Wirecard CEO Markus Braun said on a phone call Friday, “This whole issue will be resolved quickly.” Wirecard is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.  

What is Going on with European Currencies?

  • EUR€ is currently little changed against the USD$ at 1.1325
  • GBP£ is currently little changed against the USD$ at 1.2934
  • CHF is currently up +0.221% against the USD$ to 0.9999

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -2.8 basis points to 0.087%
  • German 10-Year Bunds are higher with yields down -2.8 basis points to 0.087%
  • French 10-Year Government Bonds are higher with yields down -1 basis points to 0.541%
  • UK 10-Year GILTs are higher with yields down -2.6 basis points to 1.151%
  • Italian 10-Year Government Bonds are lower with yields up 0.7 basis points to 2.958%
  • Spanish 10-Year Government Bonds are higher with yields down -0.9 basis points to 1.233%

 

Our Comprehensive Analytics and Powerful Quantitative Products Analyze and Synthesize Trade Ideas for you.Our Comprehensive Analytics and Powerful Quantitative Products Analyze and Synthesize Trade Ideas for you.
Our Comprehensive Analytics and Powerful Quantitative Products Analyze and Synthesize Trade Ideas for you.Our Comprehensive Analytics and Powerful Quantitative Products Analyze and Synthesize Trade Ideas for you.

Euro Stoxx 50 Movers

In local currency.
On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
Nokia OYJ Financials 5.39 2.94%            25,179,174
L'Oreal SA Health Care 219 1.25%                  859,055
TOTAL SA Consumer Discretionary 48.4 0.80%               7,067,305
SAP SE Industrials 91.7 0.77%               2,943,430
Sanofi Consumer Discretionary 75.3 0.57%               2,480,430
 
Underperformers Sector Price 1D % Chg Volume
Societe Generale SA Energy 24 -2.77%               7,392,763
Daimler AG Consumer Staples 48 -2.47%               5,861,181
Bayerische Motoren Werke AG Utilities 70.1 -2.37%                  863,075
BNP Paribas SA Financials 39.9 -2.30%               5,490,179
EssilorLuxottica SA Consumer Staples 106 -2.30%                  929,052
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS