blog

Latest from the Quantamize Blog

Who cares? Europe posts better than expected growth data and stocks.....do nothing

Apr 30, 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

  • European stocks close flat depsite a surprise to the upside on the EU growth reading
  • First quarter GDP in the EU grew 0.4%, above the 0.3% consensus and up from 0.2% last quarter
  • The Euro Stoxx 600 closed up +0.01%, the FTSE 100 declined -0.3%, the DAX rose +0.13%, and the CAC 40 finished up +0.1%
  • Warren's words: Warren said what? Warren Buffett has THIS Advice for Individual Investors
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.64x
  • Banks (-0.61%), Construction & Materials (-0.02%), and Health Care (-0.02%) stocks were the top performers in the Euro Stoxx 600 today
  • Oil & Gas (+1.07%), Retail (+0.54%), and Utilities (+0.93%) stocks were the worst performers in the Euro Stoxx 600 today
  • 102 stocks in the Euro Stoxx 600 hit 4-week highs while 45 stocks closed at 4-week lows
  • 106 stocks in the Euro Stoxx 600 finished the trading session overbought while 10 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed  down -1.12 points today to 11.91 after closing at 13.03 yesterday
  • EUR€ is currently up +0.268% against the USD$ to 1.1216

Asian Stock Markets Indexes

Asian Markets Recap

  • The US and China are resuming trade talks today in Beijing, read more: US warships in Taiwan Straight can only mean one thing: US-China Trade Negotiations Resume this Week
  • The Nikkei 225 finished down --0.22%, the Hang Seng ended down -0.65%, the Hang Seng China Enterprise declined -0.82%, and the CSI 300 was +0.33%
  • Japan is closed all week
  • Investor sentiment for Hong Kong stocks finished negative with the advance/decline ratio for the Hang Seng closing at 0.11x
  • 0 stocks in the Hang Seng hit 4-week highs while 10 stocks reached 4-week lows
  • 1 stock 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

  • AMS AG (SWX: AMS) shares surged by more than 20% after the sensor supplier announced second quarter guidance that beat analyst estimates. AMS AG expects revenue during the second quarter to come between $390 million and $430 million, beat analyst estimates that ranged between $320 million and $400 million. AMS AG attributed to the expected wider adoption of 3D sensing in 2019 as reasoning for the guidance. AMS AG is rated “Top Short” in our European SMID-Cap Global Top Stock Ideas.
  • Beiersdorf AG (XTRA: BEI) announced financials for the first quarter which contained sales that beat the highest analyst estimates. Beiersdorf generated sales of 1.95 billion euros in the first quarter, surpassing the highest analyst estimates that ranged between 1.82 billion euros and 1.88 billion euros. Beiersdorf maintained its guidance for FY2019 while reporting organic revenue growth of 6% in the first quarter. Beiersdorf is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • General Motors (GM) reported first quarter adjusted earnings that beat with revenue that trailed expectations.  General Motors first quarter EPS of $1.41 came ahead of $1.10 expected.  Revenue in the first quarter was $34.9 billion while $35.48 billion was expected.  GM’s Cruise unit, focused on self-driving cars, lost $169 million in the quarter and those losses will grow in 2019 as it gets ready to launch a robo-taxi service.  General Motors is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas
  • Lumber Liquidators (LL) reported a first quarter loss that was worse than expected.  Lumber Liquidators first quarter loss per share was 17 cents, worse than the 13 cents expected.  Net sales for the first quarter came in line at $266.2 million while consensus was for $268 million.  Lumber Liquidators reaffirmed it full year 2019 forecast.  Lumber Liquidators is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Short” in our US Consumer Discretionary Global Top Stock Ideas
  • MGM Resorts (MGM) reported first quarter revenue that beat consensus but earnings that trailed.  First quarter adjusted EPS of 5 cents trailed consensus of 21 cents.  MGM first quarter revenue of $3.18 billion came ahead of $3.13 billion consensus.  MGM saw revenue drop a touch in Las Vegas while growing 23% in China.  MGM 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 Stocks Trending in the News

  • Alphabet (GOOGL) reported first quarter 2019 results that trailed consensus.  Alphabet first quarter revenue ex-TAC of $29.48 billion trailed $30.04 billion consensus.  Adjusted EPS of $11.90 beat $10.65 consensus, the adjusted number does not contain the $1.7 billion EU fine.  The trends continue in the same direction for Alphabet’s Google-growing at a somewhat slower pace with earnings per clicking dropping, 19% in the most recent quarter.  Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Apple (AAPL) is due to report after the close today.  Investors are keen to see if there is a reason for Apple to continue the 44% run from its low in January.  Investors were spooked by the demand outlook for Apple’s flagship iPhone.  Its foray deeper into services was well received and now investors will get a better idea of what’s to be expected for the rest of 2019.  Revenue is expected to come at about $30.5 billion.  Only 22 of 46 analysts have a buy rating on Apple, the lowest number in over 2 years.  Apple is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Mastercard (MA) delivered first quarter revenue and earnings that beat expectations.  Mastercard first quarter revenue of $3.9 billion beat $3.85 billion consensus.  First quarter adjusted EPS of $1.78 beat $1.66 consensus.  Mastercard first quarter dollar volume and purchase volume both rose 12%.  Mastercard said it expects revenue to grow “in the low teens.”  Mastercard is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • McDonalds (MCD) reported first quarter same store sales well above consensus.  McDonald’s first quarter same store sales grew 4.5%, well above the 3% expected.  Total sales grew 5.4%, above 3.5% expected.  First quarter EPS of $1.72 trailed $1.75 expected by a touch.  First quarter revenue of $4.96 billion matched $4.95 billion consensus.  McDonald’s results were helped by strong breakfast sales and its delivery initiatives.  McDonald’s is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas
  • Samsung Electronics Co. (KOSE: A005930) joined chipmaking competitors in announcing an expected rebound in chip prices during the second half of 2019. Samsung made the announcement after the company reported profit in the first quarter that missed the average analyst estimate. Samsung is not rated in our Global Top Stock Ideas.
  • Western Digital (WDC) reported fiscal third quarter earnings that trailed consensus with revenue in line.  Western Digital’s first quarter EPS of 17 cents was well below the 45 cents consensus.  Revenue of $3.67 billion matched $3.68 billion consensus.  Western Digital said it expands a strong demand environment for the rest of 2019.  Western Digital is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.

Global Industrial Stocks Trending in the News

  • Boeing’s (BA) problem continue to worsen with the news that an additional sensor on 737 Max aircraft was not working as airlines anticipated because of mistakes from Boeing.  There exists a separate sensor that was not working to back up the MCAS system that is believed to be involved in the 2 737 Max crashes so far.  Boeing put out a statement yesterday that indicated it either missed or overlooked the sensor problem when the plane was certified.  Boeing has not commented on what exactly happened, given the investigation that is underway.  Boeing is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas
  • Epiroc (OM: EPI A) shares slipped after its order intake during the first quarter missed analyst estimates by roughly 5%. Despite the order intake miss, Epiroc maintained its guidance that orders can accelerate into the second half of 2019 and 2020. Morgan Stanley said that it interpreted Epiroc’s overall financials as broadly in line on an underlying basis. Epiroc is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas.
  • General Electric (GE) reported negative free cash flow from industrial operations that was better than expected.  General Electric reported adjusted negative free cash flow from industrial operations of $1.22 billion, much better than the $2.9 billion negative free cash flow expected.  First quarter adjusted EPS of 14 cents beat 9 cents consensus.  General Electric said, “Power’s better-than-expected performance was principally driven by timing.”  General Electric is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas
  • Ingersoll-Rand (IR) reported first quarter earnings and revenue well above consensus.  Ingersoll-Rand said Gardner Denver will combine with Ingersoll-Rand’s industrial division.  Ingersoll-Rand first quarter EPS of 89 cents beat 80 cents expectations.  First quarter revenue of $3.58 billion beat $3.50 billion consensus.  Ingersoll-Rand provided full-year EPS to about $6.35.  Ingersoll-Rand is not rated in our Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • Yes Bank Ltd. (NSEI: YESBANK) shares tanked by the most intraday on record after the lender reported an unexpected quarterly loss. Yes Bank announced that it incurred a loss of 15.07 billion rupees ($216 million) during the first quarter while analysts expected profit of 10.2 billion rupees. The unexpected quarterly loss comes shortly after the appointment of Ravneet Gill to CEO of the lender. Yes Bank is rated “Unattractive” in our India All-Cap Global Top Stock Ideas.

Global Power & Commodity Stocks Trending in the News

  • Baker Hughes (BHGE) shares slipped after the company’s first quarter revenue of $5.62 billion met the average analyst estimate of $5.62 billion. Cash flow from operations for Baker Hughs during the first quarter came in at $184 million, falling from $294 million a year prior. Baker Hughes is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • Clariant AG (SWX: CLN) will move forward with the sale of its pigments business only after the company separates the business into a separate entity. According to CFO Patrick Jany, the pigments business has several legal entities across the world that make the groundwork for a sale of the unit more complex. Clariant is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Elementis (LSE: ELM) shares slid by double-digits after the company announced that it expects FY2019 results to be, “slightly,” below analyst expectations. According to UBS analyst Andrew Stott, the company’s margins are struggling against a tough backdrop of the Chinese market. Still, Stott highlighted that Elementis trades at a 35% discount to its specialty chemicals peers, which should limit downside. Elementis is not rated in our Global Top Stock Ideas.
  • Transocean (RIG) reported first quarter results better than expected.  Transocean’s first quarter loss of 30 cents per share was better than the 32 cents loss expected.  Transocean reported a backlog of $12.1 billion, down from $12.5 billion a year ago.  Contract drilling revenue of $754 missed the $763 million consensus.  First quarter rig utilization of 56% was an improvement from 52% a year ago.  Transocean is not rated in our Global Top Stock Ideas

Global Healthcare Stocks Trending in the News

  • Eli Lilly (LLY) reported first quarter earnings and revenue that were largely in line with consensus.  Eli Lilly first quarter EPS of $1.33 came a touch above the $1.30 expectation.  First quarter revenue of $5.09 billion was in line with $5.13 billion consensus.  Eli Lilly gave full year revenue guidance of $22 billion to $22.5 billion.  Full year EPS guidance is $5.60 to $5.70 while present consensus is $5.63.  Eli Lilly is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • PetIQ (PETQ) shares fell notably lower after short-seller Spruce Point published a note warning that, “investors should proceed with extreme caution,” in the animal health company. Spruce Point highlights that PetIQ has historically missed nearly all prior financial projections. Spruce Point sees between 75% and 90% downside with PetIQ. PetIQ is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas.
  • Pfizer (PFE) reported first quarter earnings and revenue that beat consensus.  Pfizer first quarter EPS was 85 cents while consensus was 76 cents.  Pfizer reported revenue of $13.12 billion in the first quarter, ahead of $12.99 billion consensus.  Pfizer provided full year EPS guidance of $2.83 to $2.93, up from $2.82 to $2.92; consensus is $2.89.  Pfizer 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