blog

Latest from the Quantamize Blog

Relief Rally! US stocks post gains midday as investors see optimism with planned US-China meeting

May 14, 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 rallying midday as investors use weakness to pick up "bargains", seeing optimism with planned Trump-Xi meeting at G-20
  • The S&P 500 is currently up 1.29%, Nasdaq Composite is up 1.5%, and Russell 2000 is up 1.23%
  • President Trump said he plans to talk to China's President Xi when the 2 are at the G-20 Summit in Osaka, Japan in late June
  • Trump said he expects the talks will be "very successful" which animated European investors, sending markets there higher
  • Still, the US in preparing further tariffs on the $300 billion of Chinese imports that do not have tariffs yet
  • More on US-China: Sabers Rattle and Tariffs Fly - The latest in the US-China trade fight
  • What Fed Officials are saying: What are Fed Officials saying as the Trade War Heats Up?
  • Oil is higher this morning after Saudi Arabia said it suffered drone attacks at two of its pumping stations forcing it to suspend operations there as it assesses the damage
  • Multiple Federal Reserve officials have commented on potential fallout for the US economy from the trade war with China, 
  • Top Stocks by sentiment: Stock Sentiment Report
  • Looking at iron ore: The Ore Score: What in the World is going on with Iron Ore?
  • NFIB Small Business Optimism in April came at 103.5, above the 102 consensus
  • Tech (+1.93%), Energy (+1.79%), and Industrials (+1.49%) stocks are the top performers in the S&P 500 today
  • Consumer Staples (+0.84%), Real Estate (+0.57%), and Utilities (-0.32%) 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 9.42x
  • 26 stocks in the S&P500 are at 4-week highs while 220 stocks are at 4-week lows
  • 11 stocks in the S&P 500 are overbought while 81 stocks are oversold according to the 16-day RSI Measure
  • 66 stocks in the Nasdaq Composite are at 4-week highs while 279 stocks are at 4-week lows
  • 114 stocks in the Nasdaq Composite are overbought while 872 stocks are oversold according to the 16-day RSI Measure
  • The VIX is currently moving down at 17.80 from yesterday's close of 20.55

Stocks Trending in the News

 

Click name for Q-Factor rating and financials data.

Global Consumer Stocks Trending in the News

  • Coca-Cola (KO) has a “clearly superior” growth outlook when compared to other consumer packaged goods companies, according to Morgan Stanley.   Coca-Cola was upgraded to overweight from equal-weight while its price target was hiked to $55 from $52.  Coca-Cola has “morphed into a structurally higher growth company” compared with its peers, Morgan Stanley adds.  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
  • Ralph Lauren (RL) reported fiscal fourth quarter earnings that beat consensus.  Ralph Lauren reported fiscal fourth quarter adjusted EPS of $1.07, beating consensus of 90 cents.  Ralph Lauren boosted its quarterly dividend to 68.75 cents, up from 62.5 cents.  Total sales rose 1% in the quarter.  Ralph Lauren sees sales growth for fiscal 2020 of 2% to 3% in constant currency.  Ralph Lauren is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas
  • Tesla (TSLA) is suffering in the US-China trade spat.  While cars are not on the list if imports being slapped with tariffs by China, many fear the day that will happen is getting close.  Analysts fear the next move on tariffs by China will include cars.  China broke ground on a battery factory in China early in the year any disruption between the countries is already negative, tariffs on their imports of cars would be disastrous.  Tesla is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Walmart (WMT) announced it will offer 1-day delivery on many of its most popular items, matching Amazon’s (AMZN) new offering.  Walmart said going to a 1-day service will actually save it money by streamlining shipping.  Amazon, in contrast, said it will spend $800 million to completely roll out its 1-day delivery.  Walmart’s service starts in Phoenix and will be rolled out to the rest of the country.  Walmart is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas

Global Information Technology Stocks Trending in the News

  • Alphabet’s (GOOGL) Google is opening the Google Safety Engineering Center in Munich.  Google is creating a $10 million grant fund to hand out grants to groups focused on tackling hate and extremism.  Google will double the number of privacy engineers at the center to 200 making Munich a hub for privacy engineering.  Alphabet 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.  
  • Apple (AAPL) suffered a setback at the Supreme Court today.  The Supreme Court ruled that consumers can move ahead with their case against Apple alleging that it used its market dominance to artificially inflate prices at its App Store.  Apple will now be under further pressure to cut its 30% commission it charges sellers on its App Store.  Consumers are seeking hundreds of millions of dollars in damages in the case.  Apple is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Bilibili Inc. (BILI) saw its American depository receipts upgraded from outperform to buy at Daiwa Securities. Bilibili currently maintains 16 buy, 1 hold, and 0 sell recommendations across analyst forecasts. Over the last 3 months, analyst have raised their consensus price target for Bilibili shares by 16%. Bilibili is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Facebook’s (FB) WhatsApp is encouraging users to update their software to the most recent version after finding a vulnerability in the software.  Facebook said it found a vulnerability that could allow hacking into it using commercially available software from Israel.  Tracking software can be installed on a phone with the vulnerability.  Facebook is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Scout24 AG (XTRA: G24) shares traded lower after shareholders rejected the 4.9 billion euro ($5.5 billion) bid for the German classified company from private equity companies. Only 42.8% of Scout24 investors holding company shares approved the acquisition offer while the minimum threshold for the deal to be approved was 50%. The deal would have seen Scout24 AG be acquired by private equity firms Blackstone Group LP (BX) and Hellman & Friedman. Scout24 is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas. Blackstone is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 
  • STMicroelectronics (ENXTPA: STM) shares jumped higher after CEO Jean-Marc Chery said at the investor day conference that the company is targeting $12 billion in revenues and an operating margin, “in the high teens,”. Chery also noted that market conditions in the second half in 2019 will be stronger than those of the first half. STMicroelectronics is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Take-Two Interactive (TTWO) reported fiscal fourth quarter earnings that beat consensus.  Take-Two reported fiscal fourth quarter of 78 cents, beating consensus of 74 cents.  Take-Two gave full year EPS guidance of $3.75 to $4.00, well below consensus of $4.84 and full year adjusted revenue of $2.5 billion to $2.6 billion, below consensus of $2.76 billion.  Take-Two Interactive is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.  
  • Tencent Music Entertainment Group (TME) shares slid after the China-centric online music streaming business announced earnings in the first quarter that beat analyst expectations, although a member of senior management unexpectedly departed the company. Tencent generated a net profit of 987 million yuan in the first quarter, or about $0.09/share, while analyst had expected earnings of $0.08/share. Tencent Music’s Guomin Xie, a former board member and Co-President of the company, unexpectedly left the company. Tencent Music is rated “Neutral” in our China All-Cap Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Bayer (DB:BAYN) suffered a huge defeat in a Roundup case in California.  A jury in California awarded $2.055 billion when it ruled Bayer’s Roundup was responsible for the couple’s cancer.  This is the third defeat for Bayer in court and shareholders are revolting over its acquisition of Monsanto that brought with it 13,400 Roundup cases.  Bayer Interactive is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas
  • Deere & Co (DE) was downgraded to underweight from neutral at JP Morgan.  Deere also saw its price target dropped to $132 from $154 at the same time.  The new price target implies a 10% downside to the last price.  JP Morgan said the fundamentals of the US agro-business is rapidly deteriorating.  Deere & Co. is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.  
  • Navistar (NAV) shares traded notably higher following speculation from DealReporter in a morning flash that Volkswagen (XTRA: VOW3) could use the proceeds from the IPO of its trucking unit to acquire the remainder of Navistar. Prior to the report from DealReporter, Volkswagen acquired a 16.79% stake in Navistar back in April 2018. Navistar is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas. Volkswagen is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.

Global Commodities & Power Stocks Trending in the News

  • Fortescue Metals Group Ltd. (ASX: FMG) shares surged higher after the world’s fourth largest exporter of iron ore announced a surprise AUD$1.85 billion of dividends. The extra AUD$0.60/share dividend payout by the iron ore supplier was possible due to price spikes in iron ore due to supply outages in Brazil. Fortescue Metals Group is rated “Attractive” in our Australia Large-Cap Global Top Stock Ideas.
  • Gazprom PJSC (MISX: GAZP) shares surged by double digits and the most intraday in over a decade after the Russian gas giant announced a proposal to increase its dividend payment by 59%. Gazprom announced it would pay a total 16.61 billion rubles dividend to investors, up from 10.43 billion rubles a year prior. Gazprom is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.

Global Healthcare Stocks Trending in the News

  • Insys Therapeutics (INSY) saw its price target slashed to $1 from $11 at Janney Montgomery.  Insys said it may need to file for bankruptcy in the wake of so many settlements for its sale of opioids.  Insys said it may not be able to complete the $150 million settlement it agreed to with the US Justice Department.  Insys is rated “Unattractive” in our SMID-Cap Global Top Stock Ideas
  • Mylan NV (MYL) is poised to bounce back after it hit a 7-year low, according to a note from Bernstein.  Mylan should be able to hit its guidance for 2019.  Bernstein noted the first quarter is normally a seasonally weak time so the weakness seen in its results is not the main concern.  A lack of strategic direction for Mylan is the main concern.   Mylan is rated “Unattractive” in our 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 1.63 basis points to 2.20%
  • US 5-Year Treasury Bonds are lower with yields up 2 basis points to 2.20%
  • US 10-Year Treasury Bonds are lower with yields up 1.95 basis points to 2.42%
  • The US Treasury 2s-5s Spread has widened 0.37 basis points to 0%
  • The US Treasury 2s-10s Spread has widened 0.32 basis points to 0.22%
  • US Treasury 5s-10s Spread has narrowed 0.05 basis points to 0.22%

Currencies

  • EUR€ is currently little changed against the USD$ at 1.1208
  • GBP£ is currently down 0.27% against the USD$ to 1.2923
  • CHF is currently down 0.262% against the USD$ to 0.9911
  • JPY¥ is currently up 0.357% against the USD$ to 109.69

Commodities

  • WTI Crude is currently up 1.43% to USD$61.91/bbl with the Brent-WTI spread little changed USD$0.02 to USD$10.14/bbl
  • Gold is currently down -0.4% to USD$1294.7/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
Marathon Oil Corp Energy 15.8 4.27%            1,238,031
Western Digital Corp Information Technology 37.7 4.23%                969,649
CenturyLink Inc Communication Services 16.2 3.90%                748,820
Halliburton Co Energy 30.3 3.89%                923,113
Helmerich & Payne Inc Energy 53.4 3.82%                  50,387
 
Underperformers Sector Price 1D % Chg Volume
Ralph Lauren Corp Consumer Discretionary 106 -5.28%                262,838
NRG Energy Inc Utilities 40.4 -1.39%                174,445
Duke Energy Corp Utilities 85.1 -1.18%                408,214
Centene Corp Health Care 125 -1.17%                418,541
Xylem Inc/NY Industrials 68.8 -1.13%                  59,113
OptionsQuantitatively derived options trades TRANSPARENT AND EASILY EXECUTABLE