blog

Latest from the Quantamize Blog

International Stocks Markets Recap - March 12th, 2019

Mar 12, 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

 

scroll down for the Asian markets recap

International Stock Markets Indexes

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

European Markets Recap

  • UK Parliament will be voting on UK Prime Minister Theresa May’s new BREXIT plan later this evening 
  • UK PM Theresa May won concessions from the EU last night but today her Attorney General said the risk associated with the Irish backstop have not changed
  • Strategists at JP Morgan reiterate their bullish bias to Brazilian stocks on expectations that tighter fiscal policy and looser monetary policy will drive a “virtuous cycle” that will boost valuations.  The bank sees the Brazilian stocks benchmark Ibovespa closing CY2019 at 105,900, up from a closed of 98,026 as of yesterday’s close. 
  • Oil prices continue to edge upwards on tighter supplies from Venezuela and Saudi Arabia.  Remember, as highlighted in our AM note yesterday, Saudi Arabia continues to produce well below the level of 10.31 million bbls/day production rate that was set at the most recent OPEC meeting.  Venezuelan production continues to slump following news that electric problems are making it difficult for the country to operate state-owned wells. 
  • The Euro Stoxx 600 is currently down -0.06%, the FTSE 100 is higher by +0.29%, the DAX is down -0.17%, and the CAC 40 is up +0.08%
  • Banks (-0.22%), Basic Resources (-0.03%), and Chemicals (+0.29%) stocks are the top performers in the Euro Stoxx 600 today
  • Personal & Household Goods (+0.17%), Food & Beverage (-0.21%), and Utilities (+0.48%) stocks are the worst performers in the Euro Stoxx 600 today
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 1.41x
  • 49 stocks in the Euro Stoxx 600 are at 4-week highs while 38 stocks are at 4-week lows
  • 32 stocks in the Euro Stoxx 600 are overbought while 11 stocks are oversold according to the 16-day RSI Measure

Asian Stock Markets Indexes

Asian Markets Recap

  • The Nikkei 225 finished up +1.79%, the Hang Seng ended up +1.46%, the Hang Seng China Enterprise up +1.68%, and the CSI 300 was +0.68%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 27.13x
  • 36 stocks in the Nikkei 225 hit 4-week highs while 4 stocks reached 4-week lows
  • 10 stocks in the Nikkei 225 closed overbought while 1 stocks closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished positive with the advance/decline ratio for the Hang Seng closing at 49x
  • 6 stocks in the Hang Seng hit 4-week highs while 0 stocks reached 4-week lows
  • 2 stocks in the Hang Seng closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure

Stocks Trending in the News

Click name for Q-Factor score and financial data

Global Consumer Stocks Trending in the News

  • Coca-Cola (KO) was downgraded today at HSBC to hold from buy.  HSBC also cut Coca-Cola’s price target to USD$50 from USD$64.  HSBC comments that Coca-Cola has “both new and unresolved problems."  HSBC sees real challenges in its plans to become a total beverage model company.  Coca-Cola is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas
  • Dick’s Sporting Goods (DKS) fourth quarter revenue was USD$2.49 billion matching consensus of USD$2.48 billion.  Fourth quarter ESP of USD$1.07 beat USD$1.06 consensus.  Fourth quarter same stores sales fell 2.2%, coming better than the 3.3% drop expected.  Dick’s gave 2019 ESP guidance of USD$3.15-3.35.  Dick’s Sporting Goods is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Stitch Fix Inc. (SFIX) shares surged after the company reported better-than-expected earnings for its current quarter and sales forecast for its upcoming quarter. Stitch Fix has been a favorite of short sellers of late with short interest in the stock rising to 33% of floating shares compared to 31% a week ago. Stitch Fix shares rose as much as 18% on the earnings report. Stitch Fix is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Tesla (TSLA) has backtracked on its plans to close stores and sell only online.  Investors were left confused with the move that came shortly after announcing the closures of its stores and cuts to prices of 6%.  Prices will rise 3% with the announcement.  Tesla CEO Elon Musk is pushing back against the SEC and its claims saying the government is trying to muzzle him.  Telsa is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.

Global Information Technology & Communication Services Stocks Trending in the News

  • Apple (AAPL) announced a March 25th event at which it is expected to unveil an original video programming platform as well as a new premium magazine subscription service.   In announcing the event, Apple used the tagline “It’s show time.”  Apple is building its services business as iPhone sales lag, the video service is expected to be similar to other video service platforms like Netflix (NFLX).  Apple is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  Netflix is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Care.com (CRCM) announced a set of new policies to oversee its members and providers on its site on the wake of the WSJ article criticizing its practices.  Care.com had its buy rating reaffirmed at BTIG after a WSJ article critical of the company sent the shares lower.  The WSJ said Care.com’s lack of background checks and users misunderstandings about the lack of them has led to “tragic outcomes.”  BTIG reaffirmed both its buy rating and USD$26 price target.  BTIG said it understands reputational risk exists but does not see risks of criminal liability.  Care.com is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Top Short” in our US Information Technology Global Top Stock Ideas.
  • Coupa Software Inc. (COUP) shares edged lower despite reporting CY4Q2018 results that spurred a series of price target hikes from analysts. Ahead of its earnings release, Coupa Software has rallied 49% year-to-date as of Monday’s close. Coupa Software is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Top Short” in our US Information Technology Global Top Stock Ideas.
  • Hewlett Packard Enterprises (HPE) shares fell after being downgraded from neutral to sell at UBS. Hewlett Packard Enterprises also saw its price target slashed from USD$17/share to a Street-low USD$13/share at UBS, who cited that growth in the company’s cloud business, “will likely grow into a bigger headwind as it moves up from a 20% share.” Hewlett Packard is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Momo (MOMO) saw monthly active users in the fourth quarter of 113.3 million users.  Total paid users reached 13 million, up from 7.8 million a year ago.  Momo saw net revenue of 3.84 billion yuan (USD$559 million) in the fourth quarter.  Momo changed its reporting currency to yuan from US dollars to minimize volatility.  Momo gave first quarter revenue guidance of 3.55-3.65 billion yuan.  Momo is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.
  • Uniper SE (XTRA: UN01) shares traded higher after it announced that it is prepared to resume takeover talks with Fortum Oyj (XTRA: UN01) with, “no predetermined outcome.” The language used by Uniper signals a new approach to resolving the feud between the two utilities. Uniper is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas. Fortum Oyj is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.  

 

 

 

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.

Global Financials Stocks Trending in the News

  • Deutsche Bank AG (DB: DBK) shares slipped following reports of internal resistance to a potential merger with German rival Commerzbank AG (DB: CBK). Reports of resistance pertain to Jan Duscheck, a key labor representative of Deutsche Bank’s supervisory board, who believes that the merger would threaten thousands of jobs in Germany’s financial sector. Duetsche Bank is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas. Commerzbank is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.  
  • Ping An Insurance (SEHK:2318) reported a 21% hike in profit in 2018.  Ping An’s net income rose to 107.4 billion yuan (USD$16 billion) up from 89.1 billion yuan a year earlier.  Consensus was for 97.5 billion yuan profit in 2018.   Pin An said one of its key goals is to become a world-leading, technology-powered retail financial services group.  Ping An Insurance is rated “Attractive” in our China All-Cap Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Airbus SE (ENXTPA: AIR) shared edged higher after Lion Air announced that it would drop a USD$22bn order for Boeing Co. (TCK) 737 Max jetliners in favor of aircrafts from Airbus. Lion Air was already considering canceling the order after its own Boeing 737 Max jetliner crashed on October 29th, 2018, killing 189 people on board. Airbus is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. Boeing is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.  
  • Boeing’s (BA) problems with the 737-800 Max are growing.  Following China and India yesterday, today countries have grounded the planes in Singapore, Australia and Latin America.  The FAA in the US has declared the jet airworthy and no US airlines have stopped flying the planes.  The investigation into the latest crash has just begun so the groundings are being done out of an abundance of caution.  Boeing is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • JetBlue (JBLU) saw its rating cut at Barclays to equal weight from overweight.  Barclays also cut its price target for JetBlue to USD$20 from USD$27.  Barclays writes “there is a lot to like but not much traction” on a number of its initiatives.  JetBlue is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.

Global Health Care Stocks Trending in the News

  • Allergan’s (AGN) price target was cut to USD$190 from USD$219 at Guggenheim today.   Despite the target cut Guggenheim maintained its buy rating on Allergan.  Guggenheim generally likes Allergan’s open science platform but believes it will be some time before investors may see consistent delivery of pipeline successes.  Allergan is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Harvest Health & Recreation Inc. (CNSX: HARV) will acquire Verano Holdings LLC in the largest M&A deal the US marijuana industry has seen to date. Once combined, the company will have licenses to operate up to 200 facilities across 16 US states and territories, which include 123 retail dispensaries. The acquisition, “will give us a leadership position in one of the largest cannabis markets in the world,” Harvest Health & Recreation Chairman Jason Vedadi said in a public statement. Harvest Health & Recreation is not rated in our Global Top Stock Ideas.
  • UnitedHealth Group (UNH) announced it will require new employer clients to pass any rebates received from drugmakers back to the clients who use those medications.  The change will take effect starting January 1, 2020 and will involve all clients using OptumRx, its pharmacy benefits manager.  UnitedHealth Group is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
 
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