blog

Latest from the Quantamize Blog

US stocks rally with risk-on fueled by positive budget, trade sentiment

Feb 12, 2019

 

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

Market data as of 12:30pm EST

US Market Snapshot

  • US stocks are rallying today with risk-on being fueled by news of a budget deal and positive sentiment on US-China trade negotiations
  • Congress has reached "an agreement in principle" though it is not clear President Trump will accept its terms
  • Investors are also optimistic on chances for a US-China trade deal as President Trump indicated today he would let the March 1st deadline slide forward if the 2 sides are close to a deal by then
  • The S&P 500 is currently up 1.16%, Nasdaq Composite is up 1.34%, and Russell 2000 is up 1.02%
  • White House officials have indicated President Trump wants to meet with Chinese President Xi “soon” to avert prolonging the trade war, this as senior negotiators from both countries are set to meet Thursday and Friday in Beijing; all signs are for an extension of the existing March 1st deadline 
  • NYU Professor Aswath Damodaran argues that S&P 500 companies in the lowest quintile for projected sales growth are typically those announcing the largest buybacks
  • Oil is surging almost 2% this morning, firmly above $53 with Algeria floating the potential for more production cuts from OPEC at its next meeting
  • Materials (+1.93%), Financials (+1.74%), and Industrials (+1.49%) stocks are the top performers in the S&P 500 today
  • Consumer Staples (+0.68%), Utilities (+0.48%), and Real Estate (-0.72%) stocks are the worst performers in the S&P 500 today
  • Investor sentiment for US stocks is positive with the advance/decline ratio for the S&P 500 currently at 6.04x
  • 126 stocks in the S&P500 are at 4-week highs while 14 stocks are at 4-week lows
  • 78 stocks in the S&P 500 are overbought while 1 stock is oversold according to the 16-day RSI Measure
  • 242 stocks in the Nasdaq Composite are at 4-week highs while 32 stocks are at 4-week lows
  • 421 stocks in the Nasdaq Composite are overbought while 169 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently little changed at 15.6 from yesterday's close of 15.9

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Ares Capital (ARCC) reported fourth quarter core EPS of USD$0.45 beating consensus of USD$0.41.  Ares Capital reported fourth quarter revenue of USD$345 million beating consensus of USD$322.7 million.  Ares Capital is rated “Neutral” in our US Large-Cap 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.
  • Dominion Energy (D) announced a plan to reduce methane emissions from its natural gas infrastructure by 50% over the next decade.  Dominion Energy will achieve this primarily by reducing or eliminating gas venting from maintenance operations.  Dominion Energy will prevent more than 430,000 metric tons of methane from entering the atmosphere.  Dominion Energy is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Fidelity National Information (FIS) reported CY4Q2018 adjusted EPS from continuing operations of USD$1.60 while analysts expected USD$1.58. Fidelity National Information expects FY2019 adjusted EPS between USD$7.35 and USD$7.55, blowing past analyst estimates that range between USD$5.61 and USD$5.86. Fidelity National Information 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.
  • 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.
  • Kering (ENXTPA:KER) reported fourth quarter sales growth of 28.1% at Gucci beating consensus of 27%.  Kering reported fourth quarter total sales of 3.83 billion euros.  Kering CEO said 10% growth for Gucci is realistic and he does not see a need for M&A and does not see a need to get into a bidding war.  Kering is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Huntsman Corp (HUN) reported fourth quarter EPS of USD$0.52 missing consensus of USD$0.54.  Huntsman Corp reported fourth quarter revenue of USD$2.24 billion in line with consensus of USD$2.13 billion.  Huntsman Corp is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Molson Coors Brewing Co. (TAP) announced today that it is restating its financial statements from 2016 and 2017.   Molson Coors Brewing Co. found errors in accounting when preparing 2018 statements.  The errors were related to deferred tax liabilities for partnerships in Miller Coors.  Molson Coors Brewing is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples 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.
  • New Residential Investment Corporation (NRZ) announced CY4Q2018 core EPS of USD$0.58, edging past consensus of USD$0.55. New Residential Investment Corporation also acquired USD$1.5bn of re-performing loans from Fannie Mae in CY4Q2018. New Residential Investment Corporation is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Omnicom Group Inc. (OMC) announced CY4Q2018 adjusted EPS of USD$1.77 while consensus was for USD$1.66. Omnicom Group Inc. reported net sales of USD$4.09 in CY4Q2018 while analysts expected USD$4.10.  Omnicom Group Inc. is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Toshiba Corp. (TSE: 6502) shares plunged after the company slashed its FY2019 profit forecast by at least 50%, citing mounting expenses in its energy business. Toshiba told analysts that it sees FY2019 operating profit between 20bn yen and 30bn yen (USD$180mm and USD$270mm) when the company had issued prior guidance for 60bn yen. Toshiba is not rated in our Global Top Stock Ideas.
  • Under Armour (UAA) reported fourth quarter adjusted EPS of USD$0.09 beating consensus of USD$0.04.  Under Armour reported fourth quarter revenue of USD$1.39 billion in line with consensus of USD$1.38 billion.  Under Armour reported a 12% drop in inventory and indicated first quarter sales will be flat, below 2% consensus.  Under Armour is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • US Foods Holding Corp. (USFD) announced CY4Q2018 adjusted EPS of USD$0.56 while consensus was for USD$0.58. US Foods Holding Corp. reported net sales of USD$6.04bn in CY4Q2018 beating analyst expectations of USD$5.98bn. US Foods Holding Corp. sees FY2019 adjusted EPS between USD$2.15 and USD$2.25. US Foods Holding Corp. is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
  • Walmart (WMT) and Deliv have severed their online partnership to deliver groceries in New York City.  Walmart works with 7 delivery services and Deliv complained there were not sufficient volumes to make sense for the partnership to continue.  Walmart is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas. 
  • Welltower Inc. (WELL) announced CY4Q2018 normalized funds from operations per share of USD$1.01 in line with consensus of USD$1.03. Welltower Inc. reported net sales of USD$1.24 in CY4Q2018 while analysts expected USD$1.23bn. Welltower Inc. sees FY2019 normalized funds from operations between USD$4.10/share and USD$4.25/share. Welltower Inc. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.

 

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions

US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 1.64 basis points to 2.50%
  • US 5-Year Treasury Bonds are lower with yields up 2.69 basis points to 2.49%
  • US 10-Year Treasury Bonds are lower with yields up 3.23 basis points to 2.68%
  • The US Treasury 2s-5s Spread has widened 1.05 basis points to -0.01%
  • The US Treasury 2s-10s Spread has widened 1.59 basis points to 0.18%
  • US Treasury 5s-10s Spread has widened 0.54 basis points to 0.19%

Currencies

  • EUR€ is currently up 0.381% against the USD$ to 1.1319
  • GBP£ is currently up 0.241% against the USD$ to 1.2886
  • CHF is currently down 0.281% against the USD$ to 0.9933
  • JPY¥ is currently little changed against the USD$ at 110.52

Commodities

  • WTI Crude is currently up 2.21% to USD$53.57/bbl with the Brent-WTI spread down USD$-0.58 to USD$8.89/bbl
  • Gold is currently little changed 0.11% to USD$1309.58/oz
     

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

S&P 500 Sector ETFs - Intraday

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

Russell 1000 Factor ETFs - Intraday

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

 

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

S&P 500 Movers

On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
Coty Inc Consumer Staples 7.31 14.60%            3,171,119
Brighthouse Financial Inc Financials 34.2 12.82%                469,251
IPG Photonics Corp Information Technology 126 8.31%                284,339
Under Armour Inc Consumer Discretionary 19.8 7.70%            2,320,095
Under Armour Inc Consumer Discretionary 17.9 6.11%                817,087
 
Underperformers Sector Price 1D % Chg Volume
Nektar Therapeutics Health Care 44.5 -10.12%                658,342
Molson Coors Brewing Co Consumer Staples 62.4 -9.12%                534,577
Gilead Sciences Inc Health Care 68.4 -4.55%            2,261,443
Take-Two Interactive Software Inc Communication Services 106 -4.26%            1,687,837
Everest Re Group Ltd Financials 216 -3.12%                  58,204
OptionsQuantitatively derived options trades TRANSPARENT AND EASILY EXECUTABLE
OptionsQuantitatively derived options trades TRANSPARENT AND EASILY EXECUTABLE