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Global Stocks rallying ahead of US July Change in Non-Farm Payrolls

Aug 03, 2018

US Stocks                                                                                                                                                                           Start Your Free Trial Today

as of 7:45am

  • Global stocks are gaining this AM ahead of the release of US Change in Non-Farm Payrolls data (and hourly earnings data) for July at 8:30am
  • Non-Farm Payrolls are forecasted to have increased +193k in July compared with +213k in June
  • US stocks index futures are positive ahead of the July employment data release with the Dow Jones minis +0.02%, S&P500 minis +0.02% and Nasdaq 100 minis +0.07%
  • The VIX is little changed this morning and is currently at 12.11 after closing at 12.19 yesterday
  • Energy Transfer Partners (ETP) January 2019 OTM Calls, EEM September 2018 OTM Calls, Apple (AAPL) August 3 & August 10 OTM Calls, and Altaba (AABA) August 17 OTM Calls are the most heavily traded options contracts in the US pre-market
  • US 10-Year Treasury Bonds are higher with yields down -1.3 basis points to 2.9729%
  • The US Treasury 2s-10s Spread has narrowed 0.7 basis points to 0.32%
  • WTI Crude is currently up 1.92% to USD$68.96/bbl with the Brent-WTI spread down USD$-1.98 to USD$3.65/bbl
  • Gold is currently little changed 0.01% to USD$1207.99/oz

International Stocks

  • European stocks are advancing this morning in sympathy with US stocks index futures ahead of the US July employment data release at 8:30am
  • The Euro Stoxx 600 is currently up +0.53%, the FTSE 100 is higher by +0.68%, the DAX has risen +0.47%, and the CAC 40 is up +0.31%
  • EUR€ is currently little changed against the USD$ at 1.1576
  • GBP£ is currently down -0.169% against the USD$ to 1.2995
  • CHF is currently little changed against the USD$ at 1.0048
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 3.65x
  • VSTOXX, the European stocks equivalent of the VIX, closed  moving down -1.02 points today to 13.49 after closing at 14.51 last week
  • German 10-Year Bunds are higher with yields down -3.2 basis points to 0.428%
  • UK 10-Year GILTs are higher with yields down -1.9 basis points to 1.358%
  • Asian stocks closed the week with worst weekly performance since March 2018
  • The Nikkei 225 finished up +0.06%, the Hang Seng ended down -0.14%, the Hang Seng China Enterprise declined -0.37%, and the CSI 300 was -1.65%
  • Foods (-2.04%), Marine Transportation (-1.71%), and Iron And Steel (-1.64%) stocks were the worst performers among Japanese stocks today
  • Investor sentiment for Indian stocks finished positive with the advance/decline ratio for the Sensex closing at 3.43x
  • 5 stocks in the Sensex hit 4-week highs while 2 stocks reached 4-week lows
  • 1 stocks in the Sensex closed overbought while 0 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 0.47x
  • 0 stocks in the Hang Seng hit 4-week highs while 15 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 5 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are higher with yields down -1.6 basis points to 0.11%
  • JGBs 2s-10s Spread has narrowed 0.5 basis points to 0.22%
  • JPY¥ is currently little changed against the USD$ at 111.68

 

Cryptos

  • A study by CoinDesk finds that free online cryptocurrency exchange data overstates the importance of the JPY¥ as a trading pair with Bitcoin.  While some news sites imply 50% of Bitcoin is traded with JPY¥, CoinDesk suggests this data is flawed since the majority of the JPY¥ trades are using derivatives rather than spot.
  • Hong Kong cryptocurrency exchange OKEx says it will have to claw back millions in USD$ following a single user’s large bet on bitcoin futures (the user lost “the bet”).  Each futures contract has a notional value of $100, and OKEx estimate the total value of the position was over $400 million.  OKEx initiated a forced liquidation of the account but because of the size, the exchange has had to trigger “societal loss risk management” mechanisms because of the size of the order.  After insurance coverage is considered, the aggregate loss to investors is around BTC$1,200 (USD$8.8mm), which will "split proportionately by all profited traders' realized + unrealized gains".
  • A UBS report suggests the Bitcoin must hit USD$213,000 to replace US money supply.  UBS suggests it isn’t practical to consider Bitcoin a viable alternative to fiat money until the capacity constraints of the Bitcoin network are addressed.  
  • BitBay Partners, a cryptocurrency exchange, is partnering with blockchain-powered equity fundraising platform Neufund to enable investors to buy and sell equity tokens with fiat currencies.  Neufund hopes to become the first end-to-end primary issuance platform for security tokens, specializing in equity tokens. Neufund already has partnerships with Binance and the Malta Stock Exchange
  • South Korea Financial Supervisory Service is advising local regulators to work towards creating an integrated blockchain system for stocks transactions.  The group finds the use of a centralized ledger to be inefficient and vulnerable to hacks.
  • Wal-Mart files a patent application for a blockchain technology that will focus on delivery systems, medical record storage, and a digital marketplace.  The patent application discusses the use of the blockchain technology in the context of the Wal-Mart’s Internet of Things (IOT) initiatives.

*Data in Price Return, Source: Stockdio

S&P 500 Sector Performance

*Data in price return.

 

Russell 100 Factor Performance

*Data in price return.

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

  • AIG (AIG) 2Q results suffered on poor results from their investment portfolio with net investment income falling 12% to US$3.1bn.  The combined ratio printed at 101.3
  • Baidu (BIDU) fell on reports that Google (GOOGL) will reenter the Chinese markets with a censored product that meets government requirements.
  • Isuzu (7202 JP) will dissolve its capital relationship with Toyota (7203), Isuzu will buy back up to 6.34% of its shares off market.  Toyota owns 5.89% of Isuzu or 50mn shares.
  • RBS (RBS LN) reported operating profit plummeted to 613mn pounds down from 1.24bn the prior year, weighed down by litigation costs.  RBS laid out a plan to resume dividends potentially in 2019 pledging to pay 40% of attributable profit
  • Swiss Re (SREN SW) net income fell to US$1bn, below expectations and down from US$1.2bn a year earlier.  Pressures on pricing persist and are weighing on results.  Management reported it is studying an IPO of its UK unit ReAssure.
  • Sumitomo (8053) delivered 1Q net income well above expectations at 91.4bn yen while expectations were for 73bn.  Net sales of 1.23tn yen beat 1.14bn expected though full year net income guidance of 320bm is a touch below the present 330bn expectations.
  • Toyota (7203 JP) reported 1Q results that topped analyst estimate, delivering on cost cuts (US$540mn in the quarter).  Operating profit came at 684.7bn yen compared with 643bn consensus.  Strong sales were led by a 13% gain in sales in China.  
  • United Overseas Bank (UOB SP) saw net income jump 28% to S$1.08bn handily surpassing the S$975.8mn market expectation.  Net interest margin grew 8 basis point to 1.83%

Cryptocurrencies Today

Stock Movers

Top Buy Winners and Losers

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Winners Sector Ticker 1 day return
FORTINET INC Information Technology FTNT 13.26%
GLOBAL PAYMENTS INC Information Technology GPN 6.30%
EXPRESS SCRIPTS HOLDING CO Health Care ESRX 4.65%
MARRIOTT VACATIONS WORLDWIDE Consumer Discretionary VAC 4.52%
MSCI INC Financials MSCI 4.38%
Losers Sector Ticker 1 day return
TORCHMARK CORP Financials TMK -0.96%
WEX INC Information Technology WEX -0.98%
INTERCONTINENTAL EXCHANGE Financials ICE -1.06%
COMCAST CORP Consumer Discretionary CMCSA -2.17%
EPAM SYSTEMS INC Information Technology EPAM -2.63%

Top Short Winners and Losers

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Losers Sector Ticker 1 day return
TANDEM DIABETES CARE INC Health Care TNDM 9.41%
FOSSIL GROUP INC Consumer Discretionary FOSL 5.35%
WHITING PETROLEUM CORP Energy WLL 3.24%
SAREPTA THERAPEUTICS INC Health Care SRPT 3.21%
AUTODESK INC Information Technology ADSK 3.08%
Losers Sector Ticker 1 day return
AVALARA INC Information Technology AVLR -2.79%
ALTICE USA INC Consumer Discretionary ATUS -2.80%
ANTERO RESOURCES CORP Energy AR -5.39%
LAREDO PETROLEUM INC Energy LPI -6.78%
EXACT SCIENCES CORP Health Care EXAS -13.55%

Events Calendar

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Company Name Ticker Event Date Event Type Q-Factor Score
China Biologic Products Holdings, Inc. CBPO 8/3/2018 Earnings Release Date China All-Cap: C
Buckeye Partners, L.P. BPL 8/3/2018 Earnings Release Date US Large-Cap: D
Cboe Global Markets, Inc. CBOE 8/3/2018 Earnings Release Date US Large-Cap: B
Realogy Holdings Corp. RLGY 8/3/2018 Earnings Release Date US Large-Cap: C
The Kraft Heinz Company KHC 8/3/2018 Earnings Release Date US Large-Cap: A, US Consumer Staples: A
American Axle & Manufacturing Holdings, Inc. AXL 8/3/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
GrafTech International Ltd. EAF 8/3/2018 Earnings Release Date US Large-Cap: F, US Industrials: F
Pinnacle West Capital Corporation PNW 8/3/2018 Earnings Release Date US Large-Cap: D
Berry Global Group, Inc. BERY 8/3/2018 Earnings Release Date US Large-Cap: A
Noble Energy, Inc. NBL 8/3/2018 Earnings Release Date US Large-Cap: C
Ameren Corporation AEE 8/3/2018 Earnings Release Date US Large-Cap: C
DISH Network Corporation DISH 8/3/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
VEREIT, Inc. VER 8/3/2018 Earnings Release Date US Large-Cap: C
ILG, Inc. ILG 8/3/2018 Earnings Release Date US Large-Cap: F, US Consumer Discretionary: B
China YuHua Education Corporation Limited SEHK:6169 8/3/2018 Estimated Earnings Release Date China All-Cap: C
Lifestyle International Holdings Limited SEHK:1212 8/3/2018 Estimated Earnings Release Date China All-Cap: A
Bank of Gansu Co., Ltd. SEHK:2139 8/4/2018 Estimated Earnings Release Date China All-Cap: D
Future Land Development Holdings Limited SEHK:1030 8/4/2018 Estimated Earnings Release Date China All-Cap: A
China Resources Cement Holdings Limited SEHK:1313 8/4/2018 Estimated Earnings Release Date China All-Cap: A
Bank of Greece A.E. BGC 8/4/2018 Estimated Earnings Release Date US Large-Cap: D, US Industrials: F
Hang Seng Bank Limited SEHK:11 8/5/2018 Earnings Release Date China All-Cap: C
Newell Brands Inc. NWL 8/5/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
RingCentral, Inc. RNG 8/5/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
Omega Healthcare Investors, Inc. OHI 8/5/2018 Estimated Earnings Release Date US Large-Cap: F
Andeavor ANDV 8/5/2018 Earnings Release Date US Large-Cap: D
CLP Holdings Limited SEHK:2 8/5/2018 Earnings Release Date China All-Cap: B
Ubiquiti Networks, Inc. UBNT 8/5/2018 Estimated Earnings Release Date US Large-Cap: F, US Information Technology: D