blog

Latest from the Quantamize Blog

Chocolate bunnies for everyone! European stocks close holiday-shortened week with longest winning streak in 2 months

Apr 18, 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

  • Goldman Sachs is out arguing that the best way to play corporate earnings via options is to enter a trade 5 day before the announcement.  Interesting enough, the best time to exit the options trade is a few days AFTER the announcement.   
  • Global oil prices are stabilizing at the current price levels with worries about a slowdown in global growth offsetting large supply cuts by OPEC members and their allies.  Just as a point of reference, the IMF is forecasting that economic growth this year will be the weakest in a decade, read more: Rise like a gusher or just dribble lower? Mixed Economic Data Clouds Outlook for Oil prices  
  • The vote on Brazil's pension reform bill - central to President Jair Bolsonaro's reform agenda - was delayed from yesterday until next Tuesday, read more: Caramba! Brazil's Pension Reform Vote Delay Suffers Another Delay
  • Check out these Top Buy sin stocksNO CONFESSION NEEDED! These SIN STOCKS are what your portfolio needs NOW!
  • The Euro Stoxx 600 closed up +0.22%, the FTSE 100 declined -0.15%, the DAX rose +0.57%, and the CAC 40 finished up +0.31%
  • Investor sentiment for European stocks finished trading neutral with the advance/decline ratio for the Euro Stoxx 600 currently at 1.11x
  • Automobiles & Parts (+0.98%), Media (+0.82%), and Insurance (+0.22%) stocks were the top performers in the Euro Stoxx 600 today
  • Health Care (-0.93%), Real Estate (+0.27%), and Basic Resources (+0.38%) stocks were the worst performers in the Euro Stoxx 600 today
  • 242 stocks in the Euro Stoxx 600 hit 4-week highs while 69 stocks closed at 4-week lows
  • 164 stocks in the Euro Stoxx 600 finished the trading session overbought while 8 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed little changed +0.07 points today to 11.34 after closing at 11.27 yesterday
  • EUR€ is currently down -0.593% against the USD$ to 1.1229

Asian Stock Markets Indexes

Asian Markets Recap

  • China is experiencing an outbreak of African swine fever in its pork population, requiring higher imports and sending global pork prices higher
  • The Nikkei 225 finished down --0.84%, the Hang Seng ended down -0.54%, the Hang Seng China Enterprise declined -0.68%, and the CSI 300 was -0.37%
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.18x
  • 43 stocks in the Nikkei 225 hit 4-week highs while 43 stocks reached 4-week lows
  • 8 stocks in the Nikkei 225 closed overbought while 16 stocks closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished negative with the advance/decline ratio for the Hang Seng closing at 0.32x
  • 6 stocks in the Hang Seng hit 4-week highs while 7 stocks reached 4-week lows
  • 3 stocks in the Hang Seng closed overbought while 1 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

  • Kering (ENXTPA: KER) shares slid after reporting first quarter financials that contained just in-line numbers from its Gucci brand. Gucci grew its US regional sales by just 5% on a comparable basis, down from a 29% increase in the fourth quarter. Analysts are holding Kering and its Gucci brand to high standards after its red-hot performance in FY2018. Kering is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas.
  • Las Vegas Sands (LVS) reported first quarter adjusted EPS of 91 cents, beating consensus of 86 cents.  Revenue of $3.65 billion beat $3.5 billion consensus.  Macau revenue of $2.33 billion came ahead of $2.2 billion expected.  Las Vegas Sands confirmed work on the Four Seasons Suites Macau and Londoner Macau “is progressing.”  Las Vegas Sands is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Nestle (SWX:NESN) reported first quarter results that beat expectations.  Nestle saw strong sales growth in North America with higher prices and solid pet care sales.  Nestle posted organic sales growth of 3.4% in the Americas, above the 2.8% growth expected.  Total sales were 22.18 billion Swiss francs.  Nestle saw significant price gains in Brazil, its biggest market.  Nestle’s performance puts in a position to deliver sales growth in the mid to single digits.  Nestle is rated “Attractive” in our European Large-Cap Global Top Stock Ideas 
  • Philip Morris (PM) posted earnings that beat expectations.  Philip Morris first quarter EPS of $1.09 came better than $1.00 consensus.  Revenue ex-excise taxes of $6.75 billion came in line with $6.74 billion consensus.  Philip Morris EPS guidance for 2019 of $4.87-$5.23, a slight cut from $4.90-$5.25 previously.  Philip Morris is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas. 

Global Information Technology Stocks Trending in the News

  • Check Point Software (CHKP) shares slid after the company posted disappointing first quarter results. Despite the disappointing results, Oppenheimer sees the quarter as, “indicative of ongoing stability in what is typically a muted seasonal quarter.” Check Point is in the middle of transitioning towards a subscription-based services model. Check Point is not rated in our Global Top Stock Ideas.
  • Pinterest Inc. (PINS) share opened more than 27% higher in debut trading from an IPO price of USD$19/share. Pinterest marketed the shares for between USD$15/share and USD$17/share, and with a final IPO price of USD$19/share, the company is valued at roughly USD$10.1 billion. Pinterest is not yet rated in our Global Top Stock Ideas.
  • Zoom Video Communications Inc. (ZM) shares began trading Thursday and opened at USD$65/share after the company priced its IPO at USD$36/share. Zoom shares traded at a 74% premium to its IPO price in debut trading, valuing the company at more than USD$16 billion. Zoom reported net income of USD$7.6 million on revenue of USD$331mm in its fiscal year ending January. Zoom Video Communications is not yet rated in our Global Top Stock Ideas.

Global Financial Stocks Trending in the News

  • American Express (AXP) reported weaker than expected first quarter results.  American Express saw loan-loss provision grow 4% and expenses that grew 11% versus a year ago.  First quarter adjusted  EPS of $2.01 was a touch better than $1.98 consensus.  First quarter revenue at American Express was $10.36 billion, trailing $10.50 billion consensus.  American Express reported $809 million in loan-loss provisions, above $755 million from a year ago.  American Express reaffirmed full year 2019 EPS guidance of $7.55-$8.35.  American Express is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  
  • BBT&T (BBT) reported first quarter results ahead of consensus.  BB&T first quarter adjusted EPS if $1.05 beat $1.03 consensus.  BB&T first quarter net interest margin of 3.51% came a touch ahead of 3.49% consensus.  Credit loss provisions in the quarter totaled $155 million.  BB&T said it continues to prepare for its integration with SunTrust Bank (STI).  BB&T is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  SunTrust Bank is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  
  • Blackstone (BX) shares soared after the company posted strong first quarter results and announced plans to convert from a publicly traded partnership to a corporation. The switch to a corporation will make it possible for Blackstone to be included in indices, which could possibly boost its valuations by drawing in more ETF and mutual fund investors. Blackstone is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Citizens Financial Group (CFG) reported first quarter results ahead of consensus.  Citizens Financial Group first quarter adjusted EPS if $0.93 beat $0.89 consensus.  Citizens Financial Group first quarter net interest margin of 3.25% came a touch behind 3.27% consensus.  Credit loss provisions in the quarter totaled $85 million.  Citizens Financial Group posted net interest income growth of 6%.  Citizens Financial Group is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • E-Trade Financial (ETFC) reported first quarter results that beat consensus expectations.  First quarter EPS of $1.09 beat $0.93 consensus.  E-Trade Financial first quarter revenue was $755 million, ahead of $738 million consensus.  First quarter net interest income was $492 million.  Daily average trades were 279,405.  E-Trade Financial is rated “Neutral” in our US Large-Cap Global Top Stock Ideas 
  • SunTrust Bank (STI) reported first quarter results ahead of consensus.  SunTrust Bank first quarter adjusted EPS if $1.33 beat $1.30 consensus.  SunTrust Bank first quarter net interest margin of 3.27% matching consensus of 3.27%.  Credit loss provisions in the quarter totaled $155 million.  Sun Trust said it continues to prepare for its integration with BBT&T (BBT) and will not use its remaining $500 million authorization for share repurchases.  SunTrust Bank is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  SunTrust Bank is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  

Global Industrial Stocks Trending in the News

  • Honeywell (HON) posted earnings that beat expectations and increased guidance for 2019.  Honeywell first quarter EPS of $1.92 came better than $1.83 consensus.  Revenue of $8.88 billion came in line with $8.63 billion consensus with organic sales growing 8%.  Honeywell EPS guidance for 2019 of $4.87-$5.23, a slight cut from $4.90-$5.25 previously.  Honeywell is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Schlumberger (SLB) reported first quarter earnings that matched expectations.  Schlumberger reported first quarter EPS of 30 cents, matching consensus.  First quarter revenue of $7.88 billion came ahead of $7.80 billion.  Revenue in North America and Latin America grew while Europe and Middle East revenue was lower.  Schlumberger sees a good 2019 commenting “we expect oil market sentiment to steadily improve over the course of 2019.”  Schlumberger is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.  
  • Union Pacific (UNP) reported results for the first quarter that beat consensus.  Union Pacific reported first quarter EPS of $1.93 that beat $1.88 consensus.  Operating revenue for the first quarter was $5.38 billion, below $5.49 billion consensus.  Energy and agricultural freight revenues fell while Industrial and Premium freight revenues grew versus a year ago.  First quarter operating ratio was 63.6%.  Union Pacific is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas   
  • United Rentals (URI) reported first quarter results that beat expectations.  First quarter EPS of $3.31 beat $3.03 consensus.  United Rentals first quarter revenue was $2.12 billion, ahead of $2.06 billion consensus.  United Rentals reaffirmed revenue guidance for full year 2019 of $9.15-$9.55 billion.  United Rentals CEO said he expects a strong year saying “customer sentiment remains positive.”  United Rentals is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas

Global Commodity & Power Stocks Trending in the News

  • Alcoa (AA) reported first quarter results that were worse than expected.  Alcoa reported a 23 cents per share loss in the first quarter, worse than the 9 cents per share loss expected.  Adjusted ebitda of $467 million was better than the $403 million expected.  Revenue in the first quarter of $2.72 billion trailed the $2.81 billion expectation.  Alcoa cut its aluminum demand growth forecast to 2-3%, down from 3-4%.  Alcoa also cut its global aluminum deficit guidance to 1.5-1.7 million metric tons, down from 1.7-2.1 million metric tons.  Alcoa is rated “Top Short” 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