blog

Latest from the Quantamize Blog

Small Caps rise, broader market stagnates with lighter volume today as investors wait for budget and trade news

Feb 11, 2019

 

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

US Markets End of Day Snapshot

  • Small caps rise while the broader market stagnates as US stocks look for direction from budget or trade negotiations news
  • US markets traded with noticeably less volume, averaging 15-25% less volume than the recent sessions
  • The S&P 500 finished up 0.07%, Nasdaq Composite up 0.13%, and Russell 2000 up 0.84%
  • Trade features prominently this week as Chinese Vice Premier Liu He and US Treasury Secretary Steve Mnuchin are set to resume trade talks. 
  • US and Chinese officials are working against a March 1st deadline set by the US to reach a deal or hike tariffs on over USD$200 billion in imports 
  • Goldman Sachs has stopped recommending clients to purchase stocks of companies with strong balance sheets given the change in stance from the Federal Reserve, saying the pause in hikes should help companies with weak balance sheets 
  • Congressional negotiators made progress over the weekend on an agreement to fund the US government but are reported to have hit a snag yesterday and are presently stalled. 
  • EU officials are considering a joint statement in response to Chinese sponsored hacking attacks after the UK presented evidence to the EU
  • Opposition leader Jeremy Corbyn has set February 26th as a deadline for a new plan from PM Theresa May
  • PM Theresa May will address Parliament on Tuesaday, February 12th and her government said it is "not considering" a customs union with the EU 
  • Industrials (+0.55%), Energy (+0.46%), and Financials (+0.25%) stocks were the top performers in the S&P 500 today
  • Utilities (-0.08%), Healthcare (-0.13%), and Telecom (-0.63%) 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 1.7x
  • 92 stocks in the S&P 500 hit 4-week highs while 45 stocks reached 4-week lows
  • 70 stocks in the S&P 500 closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure
  • 203 stocks in the Nasdaq Composite hit 4-week highs while 36 stocks reached 4-week lows
  • 294 stocks in the Nasdaq Composite closed overbought while 237 stocks closed oversold according to the 16-day RSI Measure
  • The VIX finished flat at 15.97 after closing at 15.72 last week
     

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Apple (AAPL) saw a 20% plummet in iPhone shipments in the fourth quarter of 2018, according to a report from research firm IDC.  IDC estimates the market as a whole or phones contracted 9.7% in China in the fourth quarter.  IDC highlights that Apple has not been able to adjust its offerings in China fast enough for the pace of change of customers.  Apple is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Avaya Holdings (AVYA) announced FY2019 financial guidance that is mostly in line with analyst expectations. Avaya Holdings expects adjusted revenue between USD$3.05bn and USD$3.15bn in FY2019 while consensus was for USD$3.09bn. Avaya also said that it sees adjusted ebitda of between USD$178.0mm and USD$191.0mm in FY2Q2019, the midpoint of which misses consensus of USD$192.7mm. Avaya Holdings is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Brighthouse Financial (BHF) reported fourth quarter adjusted EPS of USD$1.56 matching consensus of USD$1.56.  Brighthouse Financial reported fourth quarter revenue of USD$4.03 billion beating consensus of USD$2.03 billion.  Brighthouse Financial is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • Colony Capital Inc. (CLNY) announced that it reached an agreement to add directors to its board and to conduct a strategic review of the company. Colony Capital will add Raymond Mikulich and Craig Hatkoff to its board of directors, effective immediately, as part of its pact with Blackwells Capital. Colony Capital and Blackwells Capital will also jointly agree on a third new director for the company at a later date. Colony Capital is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas
  • Deutsche Post (DB: DPW) may get a hike in postage rated more than expected, according to a report in Frankfurter Allgemeine Zeitung today.  Deutsche Post may get a hike to 0.90 euro, up from 0.70 presently.  The hike will take effect in early summer and not in April as originally thought.  Deutsche Post is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Electronic Arts (EA) was upgraded by Bank of America Merrill Lynch to buy from neutral.  Electronic Arts had its price target hiked to USD$110 from USD$95 while the average price target is USD$93.66.  The hike comes in the wake of weak earnings in February 5th.  Electronic Arts is rated "Unattractive" in our US Large-Cap Global Top Stock Ideas and "Neutral" in our US Information Technology Global Top Stock Ideas. 
  • FMC Corp. (FMC) reported fourth quarter adjusted EPS of USD$1.69 beating consensus of USD$1.48.  FMC Corp. reported fourth quarter revenue of USD$1.2 billion matching consensus of USD$1.18 billion.  FMC is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Geely Automotive (SEHK: 175) announced a total sales increase of 2% y/y in January to a record 158,393 units. The January sales number represents a 70% increase in unit sales from December and includes sales of its Lynk & Co. premium brand, sold by a 50% joint venture. Geely Automotive is rated “Unattractive” in our China All-Cap Global Top Stock Ideas.
  • KKR (KKR) is acquiring 60% of Indian waste-collection company Ramky Enviro Engineers Ltd in its impact fund.    The deal is valued at USD$510 million.  This is KKR’s biggest deal in the impact fund.  KKR is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Euronext (ENXTPA:ENX) has hiked its offer for the Oslo Stock Exchange to 158 kronor per share, topping by 4% Nasdaq’s (NDAQ) offer for the Oslo exchange.  Nasdaq’s offer was already accepted by the Oslo Exchange and today Nasdaq said it is moving ahead with the deal, giving no hint if it plans to up its offer.  Euronext is rated “Top Buy” in our European SMID-Cap Global Top Stock Ideas.  Nasdaq is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • MoneyGram (MGI) reported fourth quarter EPS of USD$0.01 missing consensus of USD$0.13.  MoneyGram reported fourth quarter revenue of USD$345.8 million in line with consensus of USD$348.5 million.  MoneyGram is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Morgan Stanley (MS) announced the acquisition of Solium Capital (TSX: SUM) for about USD$900mm. Morgan Stanley will pay about CAD$19.15/share for Solium Capital, a provider of stock-plan administration services, which represents a 43% premium on the company’s closing price. Morgan Stanley is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. Solium Capital is not rated in our Global Top Stock Ideas.
  • Norfolk Southern (NSC) shares traded higher after the company announced it is targeting 5% annual revenue growth through 2021. Norfolk also told investors that it expects to improve its FY2019 operating ratio by at least 100 basis points from FY2018 levels. Norfolk will target a dividend payout ratio of 33% in FY2019 while continuing to use free cash flow and borrowing capacity to buyback shares. Norfolk Southern is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.  
  • Playtech (LSE: PTEC) was downgraded by Bank of America Merrill Lynch to underperform from neutral.  Bank of America Merrill Lynch sees a lack of visibility in Asia in the near term and was cited as a primary reason for the downgrade.  Playtech is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas 
  • Restaurant Brands International Inc. (QSR) and other US restaurant stocks rose on Monday after January data showed, “continued positive comp. growth." Comparable sales for the US restaurant industry rose 2% y/y in January 2019 while average check increased 2.7%, Raymond James wrote in a note to clients. Restaurant traffic, meanwhile, fell 0.7% y/y in January. Restaurant Brands is not rated in our Global Top Stock Ideas.  
  • Smith & Nephew Plc (LSE: SN) shares fell on news of deal talks with NuVasive Inc. (NUVA). A deal would reportedly be worth more than USD$3bn, according to the Financial Times. Last week, Smith & Nephew CEO Namal Nawana said that the company is ready to pursue a large deal to expand the company’s operations to more medical devices. Smith & Nephew is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas. NuVasive is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Sprint (S) is suing AT&T (T) for the use of a “5G E” symbol on the screens of phones on its networks that are near an enhanced 4G cell tower.  AT&T calls this “5G Evolution”  hence the 5G E symbol on screens while Sprint is suing call this deceptive.  Sprint is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.  AT&T is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Tesla (TSLA) has successfully ramped up the production of Model 3s but is still have challenges servicing them.  The Wall Street Journal highlight today that owners are having to wait weeks or months to get their vehicles serviced due to the limited number of locations. Tesla is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Vale (VALE) has lost its license to operate the tailings dam that collapsed.  The Brazilian Mines and Energy Minister has opened an administrative proceeding to collect information related to the rupture of Vale's tailings 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 is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas.

 

Actionable and Transparent Quantitative ResearchActionable and Transparent Quantitative Research
Actionable and Transparent Quantitative ResearchActionable and Transparent Quantitative Research

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 2.04 basis points to 2.48%
  • US 5-Year Treasury Bonds are lower with yields up 2.35 basis points to 2.46%
  • US 10-Year Treasury Bonds are lower with yields up 1.79 basis points to 2.65%
  • The US Treasury 2s-5s Spread has widened 0.31 basis points to -0.02%
  • The US Treasury 2s-10s Spread has narrowed 0.25 basis points to 0.17%
  • US Treasury 5s-10s Spread has narrowed 0.56 basis points to 0.18%

Currencies

  • EUR€ is down 0.415% against the USD$ in after hours to 1.1276
  • GBP£ is down 0.649% against the USD$ in after hours to 1.286
  • CHF is down 0.34% against the USD$ in after hours to 0.9959
  • JPY¥ is up 0.583% against the USD$ in after hours to 110.37

Commodities

  • WTI Crude is down -0.59% to USD$52.41/bbl with the Brent-WTI spread little changed USD$-0.15 to USD$8.99/bbl
  • Gold is down -0.46% to USD$1308.31/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
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
ABIOMED Inc Health Care 325 4.02%                152,130
Newell Brands Inc Consumer Discretionary 20.8 3.74%            1,118,060
Coty Inc Consumer Staples 7.31 3.54%            3,669,415
Chipotle Mexican Grill Inc Consumer Discretionary 515 3.53%                239,508
Mattel Inc Consumer Discretionary 12.6 3.35%            4,524,057
 
Underformers Sector Price 1D % Chg Volume
Activision Blizzard Inc Communication Services 46.8 -7.60%          10,572,648
Loews Corp Financials 46.6 -6.13%                812,096
WellCare Health Plans Inc Health Care 256 -4.09%                169,251
Take-Two Interactive Software Inc Communication Services 106 -3.81%            1,266,623
Expedia Group Inc Consumer Discretionary 117 -3.19%                773,815
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY
Morning BriefA quick GLOBAL RECAP TO START YOUR DAY