blog

Latest from the Quantamize Blog

US stocks rising ahead of President Trump's meeting this afternoon with Chinese special envoy Liu He

Feb 22, 2019

 

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

Market data as of 12 noon EST

US Market Snapshot

  • US stocks are higher midday ahead of President Trump's meeting with China's Liu He where trade progress is expected
  • President Trump is due to meet with Chinese vice premier Liu He later today, a signal to many that there is reason for optimism, as this meeting will wrap up this week’s trade talks 
  • The S&P 500 finished up 0.65%, Nasdaq Composite up 0.77%, and Russell 2000 up 0.8%
  • In both the Dow Jones and S&P 500 indexes, 90% of stocks are trading above their 50-day moving average, a bullish sign-in the past. There has been an average rise of 10% from this point when such a high percentage of stocks are above their 50-day moving averages 
  • Emerging Markets stocks are rising for a fifth straight day
  • Reports are that the US and China are working on a memorandum of understanding (MOU) that would outline the main points of a final deal
  • Tech (+1.16%), Telecom (+0.97%), and Healthcare (+0.85%) stocks were the top performers in the S&P 500 today
  • Energy (+0.23%), Financials (-0.17%), and Consumer Staples (-0.47%) 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 4.68x
  • 135 stocks in the S&P 500 hit 4-week highs while 12 stocks reached 4-week lows
  • 118 stocks in the S&P 500 closed overbought while 1 stocks closed oversold according to the 16-day RSI Measure
  • 431 stocks in the Nasdaq Composite hit 4-week highs while 27 stocks reached 4-week lows
  • 443 stocks in the Nasdaq Composite closed overbought while 131 stocks closed oversold according to the 16-day RSI Measure
  • The VIX finished flat at 14.09 after closing at 14.46 yesterday

Stocks Trending in the News

Click name for Q-Factor rating and financials data.
 

  • Alibaba (BABA) CEO Daniel Zhang said the company has no plans for any layoffs.  Alibaba intends to keep up its recruitment efforts.  There has been a wave of layoffs at Chinese fintech companies and Alibaba, with over 100,000 employees, wants to keep growing.  Alibaba is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.
  • Allscripts Healthcare Solutions (MDRX) shares slipped after the company announced weaker than expected FY2019 guidance that prompted Citi to cut its recommendation for the company from buy to neutral. Citi also slashed its price target for Allscripts from USD$14/share to USD$12/share. Allscripts is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas.
  • Altice USA (ATUS) reported fourth quarter EPS of USD$0.30.  Altice USA reported fourth quarter adjusted revenue of USD$2.45 billion in line with consensus of USD$2.46 billion.  Altice USA gave 2019 revenue growth guidance of 2.5-3%.  Altice USA is rated “Top Short” in our Large-Cap Global Top Stock Ideas.
  • Baidu Inc. (BIDU) expects to report 18% y/y revenue growth for the current quarter, the company told analysts. CEO Robin Li also double downed on the company's plan to increase spending to drive new user growth and ramp up its advertising business. Baidu issued revenue guidance of 23.5bn yuan for the 3-month period ending March. Baidu is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Caesars Entertainment (CZR) reported fourth quarter EPS of USD$0.25 well above consensus of 9 cents per share loss.  Caesars Entertainment reported fourth quarter adjusted revenue of USD$2.12 billion in line with consensus of USD$2.11 billion.  Caesars Entertainment is rated “Unattractive” in our Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Infrastrutture Wireless Italiane S.p.A. (BIT: INW) shares soared to record highs after Telecom Italia (BIT: TIT) and Vodafone (LSE: VOD) announced they will undertake building 5G wireless networks through a joint venture.  Morgan Stanley said that, as a result of the deal, “Inwit would become a more independent TowerCo.” Infrastrutture Wireless Italiane is rated “Top Buy” in our European SMID-Cap Global Top Stock Ideas. Telecom Italia is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas. Vodafone is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Kraft-Heinz (KHC) wrote down the value of its existing brands by USD$15.4 billion when it reported results yesterday, leading to a quarterly loss of USD$12.6 billion or USD$10.34 per share.  Kraft-Heinz also disclosed a probe from the Securities and Exchange Commission relating to its procurement practices.  Fourth quarter earnings also came below expectations, but it is the write-down that is the focus of investors’ attention.  Kraft-Heinz is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Nike (NKE) has been the subject of ridicule in the social media realm after a basketball player sprained his knee when his Nike sneakers split open in the middle of a game.  The player from Duke University limped off the court and immediately Nike became the butt of endless jokes about the poor quality of its products.  Nike is rated “Unattractive” in our Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.
  • Nintendo Co. (TSE: 7974) announced that it will buyback 33bn yen (USD$298mm) worth of stock to offset the effect of 84bn yen worth of stock sales by shareholders, most of which are financial institutions. The Bank of Yuoto Ltd., Nomura Trust & Banking Co., Mitsubishi UFJ Financial Group, and some other financial institutions will sell up to 2.79mm Nintendo shares. Nintendo is not rated in our Global Top Stock Ideas.
  • Provident Financial Plc (LSE: PFG) shares soared after Non-Standard Finance (LSE: NSF) offered to buy the company via an all-stock reverse takeover. The all-stock reverse takeover is priced at 511p/share equivalent as of Thursday’s close. Providential Financials shareholders will receive 8.88 shares of Non-Standard Finance shares for each share owned. Provident Financial is rated “Top Short” in our United Kingdom All-Cap Global Top Stock Ideas. Non-Standard Finance is not rated in our Global Top Stock Ideas.
  • Roku (ROKU) reported fourth quarter pro-forma EPS of USD$0.05 above consensus of USD$0.03.  Roku reported fourth quarter adjusted revenue of USD$275.7 million beating consensus of USD$262.4 million.  Roku gave first quarter 2019 revenue guidance of USD$185-190 million.  Roku is rated “Top Short” in our Large-Cap Global Top Stock Ideas.
  • Societe Generale SA (ENXTPA: GLE) is planning to cut thousands of jobs at its investment bank, according to a Bloomberg report citing people familiar with the matter. Societe Generale is seeking to cut 500mm euros (USD$567mm) in costs and review its less profitable investment banking activities following its abysmal CY4Q2018. Societe Generale is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Wayfair (W) shares are soaring after the company reported y/y retail sales growth of 41%. In the 5-day stretch that includes Block Friday and Cyber Monday, Wayfair sales grew 58% from the same period a year earlier. Wayfair’s net losses are still deep, however, despite the online retailer’s robust sales growth. Wayfair is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Zillow Group Inc. (ZG) shares popped by more than 21% after the US home-search website said Rich Barton would return to the company as a top executive. Barton co-founded Zillow in 2005 and initially served as CEO -- he will replace Spencer Rascoff. Zillow is not rated in our 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 higher with yields down -3.12 basis points to 2.4974%
  • US 5-Year Treasury Bonds are higher with yields down -3.73 basis points to 2.4761%
  • US 10-Year Treasury Bonds are higher with yields down -3.96 basis points to 2.6518%
  • The US Treasury 2s-5s Spread has narrowed 0.61 basis points to -0.02%
  • The US Treasury 2s-10s Spread has narrowed 0.84 basis points to 0.15%
  • US Treasury 5s-10s Spread has narrowed 0.23 basis points to 0.18%

Currencies

  • EUR€ is little changed 0.053% against the USD$ in after hours to 1.1342
  • GBP£ is up 0.153% against the USD$ in after hours to 1.3063
  • CHF is up 0.15% against the USD$ in after hours to 1.0003
  • JPY¥ is little changed 0.009% against the USD$ in after hours to 110.71

Commodities

  • WTI Crude is up 1.02% to USD$57.33/bbl with the Brent-WTI spread down USD$-0.82 to USD$9.37/bbl
  • Gold is up 0.57% to USD$1331.2/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
Intuit Inc Information Technology 210 5.95%                442,235
Newmont Mining Corp Materials 31 5.51%            2,868,652
Copart Inc Industrials 49.4 3.75%                375,331
Western Digital Corp Information Technology 37.7 3.37%                475,279
DISH Network Corp Communication Services 28.2 3.18%                325,818
 
Underperformers Sector Price 1D % Chg Volume
Kraft Heinz Co/The Consumer Staples 46.9 -27.82%          18,088,066
Campbell Soup Co Consumer Staples 35.5 -8.78%                604,803
Evergy Inc Utilities 56.3 -8.18%                305,336
JM Smucker Co/The Consumer Staples 103 -6.43%                190,598
General Mills Inc Consumer Staples 41.9 -4.29%                888,550
OptionsQuantitatively derived options trades TRANSPARENT AND EASILY EXECUTABLE
OptionsQuantitatively derived options trades TRANSPARENT AND EASILY EXECUTABLE