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Morning Brief

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Global Stocks Bouncing Back as Turkey Economic Fears Wane

Aug 14, 2018

US Stocks                                                                                                                                                                           Start Your Free Trial Today

  • Global stocks are rallying on relief from worries about whether there will be spreading contagion effect from the Turkey economic crisis
  • The Turkish Lira is +4.44% against the USD$ to TRY6.5911 this AM after closing down 6.56% yesterday
  • US stocks index futures are pointing to a positive open to start the week with the Dow Jones minis +0.38%, S&P500 minis +0.39% and Nasdaq 100 minis +0.50%
  • The VIX is little changed this morning and is currently at 13.79 after closing at 14.78 yesterday
  • SPY August 24 OTM Calls & August 17 OTM Puts, Apple (AAPL) August 17 OTM Calls, QQQ August 31 OTM Puts, and EEM September 21 OTM Puts are the most heavily traded options contracts in the US pre-market
  • US 10-Year Treasury Bonds are lower with yields up 1.45 basis points to 2.8931%
  • The US Treasury 2s-10s Spread has narrowed 0.19 basis points to 0.26%
  • WTI Crude is currently down -0.64% to USD$67.2/bbl with the Brent-WTI spread up USD$1.42 to USD$5.28/bbl
  • Gold is currently little changed 0.12% to USD$1194.93/oz

International Stocks

  • European stocks are bouncing back this morning as investors take a break from worrying about the potential fallout from the Turkey Economic Crisis
  • Food & Beverage (+1.21%), Utilities (+0.89%), and Personal & Household Goods (+0.82%) stocks are the top performers in the Euro Stoxx 600 today
  • Investor sentiment for European stocks is neutral with the advance/decline ratio for the Euro Stoxx 600 currently at 1.13x
  • 30 stocks in the Euro Stoxx 600 are at 4-week highs while 110 stocks are at 4-week lows
  • 26 stocks in the Euro Stoxx 600 are overbought while 20 stocks are oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, is moving little changed this morning and is currently at 15.63 after closing at 15.94 last week
  • EUR€ is currently little changed against the USD$ at 1.1404
  • GBP£ is currently little changed against the USD$ at 1.2776
  • CHF is currently up +0.248% against the USD$ to 1.0094                                                                                                                                                          German 10-Year Bunds are lower with yields up 1.9 basis points to 0.33%
  • UK 10-Year GILTs are lower with yields up 1.4 basis points to 1.266%
  • Asian stocks closed positive with the relief rally capped by disappointing earnings results from Hong Kong tech stocks and a weaker than expected Industrial Production print for China in July 2018
  • Chinese Industrial was 6.3% in July 2018 vs Consensus 6.6% and +6.7% in June
  • The Nikkei 225 finished up +2.28%, the Hang Seng ended down -0.66%, the Hang Seng China Enterprise declined -0.21%, and the CSI 300 was -0.51%
  • Banks (+0.47%), Iron And Steel (+0.67%), and Securities & Commodity Futures (+0.68%) stocks were the worst performers among Japanese stocks today
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 10.84x
  • 4 stocks in the Nikkei 225 hit 4-week highs while 105 stocks reached 4-week lows
  • 0 stocks in the Nikkei 225 closed overbought while 29 stocks closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished neutral with the advance/decline ratio for the Hang Seng closing at 1x
  • 0 stocks in the Hang Seng hit 4-week highs while 10 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 3 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are lower with yields up 1.1 basis points to 0.112%
  • JGBs 2s-10s Spread has widened 1.1 basis points to 0.22%
  • JPY¥ is currently up 0.208% against the USD$ to 110.93

Cryptos

  • A group of researchers/hackers have claimed to have hacked John Mcafee-backed hardware wallet Bitfi.  According to its advertising, Bitfi claims to be unhackable.  The researchers/hackers claim to have had complete access to a Bitfi wallet for the past two weeks, tracking data being sent out of the wallet while still being connected to the Bitfi servers.
  • According to report from the government committee studying the regulatory roadmap for cryptocurrencies in India, the Indian government is considering the potential of crypto tokens in the public sector.  Specifically, the committee reports mentioned the potential for crypto token to replace smart cards like metro cards.
  • The Jamaica Stock Exchange (JSE) will soon permit clients to trade cryptocurrencies on its platform through a partnership with Blockstation, a blockchain startup.
  • Square announces that customers will be able to buy/sell Bitcoin via is Cash App across all 50 states in the United States.

*Data in Total Return; Source: S&P Capital IQ

S&P 500 Sector Performance

Data in Price Return as of Previous Day's EOD, Source: S&P Capital IQ

Russell 1000 Factor Performance

Data in Price Return as of Previous Day's EOD, Source: S&P Capital IQ

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

  • Antofagasta (ANTO LN) saw higher operating costs in 1H18 cause its pretax profit to drop 32% to US$465.6mn.  Cash cost guidance for copper production will remain at US$1.35/pound in 2018; 1H18 copper production fell to 317,000 metric tons.
  • Esure Plc (ESUR LN) is being acquired by Bain Capital, the private equity firm, in a proposed US$1.5bn deal.  PE firms have been acquiring insurance firms to gain access to their flow of premium income.
  • Home Depot (HD) reported same store sales growth of 8%, well above the aggressive 6.5% expected. 1Q EPS of U$3.05 topped US$2.84 expected.  Full year guidance was upped to 7% growth (was 6.7%) to EPS of US$9.42 (was 9.31).
  • McDonald’s (MCD) and its franchisees will invest US$6bn in upgrades with restaurants to have modern dining rooms and digital self-ordering kiosks.  McDelivery will also be introduced utilizing Uber Eats at 5,000 locations.
  • Nvidia (NVDA) has unvieled a new professional GPU, called the Quadro RTX. The Quadro RTX is the world's first ray-tracing GPU. Shares of Nvidia are up 1.71% to $260.49 pre-market
  • Sunny Optical (2382 HK) missed 1H18 net income estimates on foreign-exchange losses and weaker margins on its camera modules. It suffered a 200mm yuan f/x loss on recently issued bonds. Shares are down 25%, losing ~US$4.3bn in market value.
  • Tencent (700 HKH) has lost US$150bn in market value since January.  While consensus is for revenue to grow 37% in its next earnings report that projected growth is the slowest in 3 years.
  • Tesla (TSLA) CEO Elon Musk tweeted that he is speaking to Goldman Sachs for advice and has also tapped private-equity firm Silver Lake for advice on his plans to take Tesla private.
  • Unicredit (UCG IM) has suffered recently on Turkish crisis concerns though a number of analysts have pointed out that the most imminent threat to the bank are the growing concerns over Italy. 
  • YY Inc (YY) posted 2Q2018 earning per ADR that was well above expectations ($2.03 vs $1.78 forcasted), but provided 3Q2018 revenue guidance that missed the consensus. YY Inc stock has fallen 9.26% to $79.55 before the open

Cryptocurrencies Today

*Source: Stockdio

Stock Movers

Top Buy Winners and Losers

On Mobile/Tablet scroll to the right

WINNERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
SYSCO CORP SYY Consumer Staples Food & Staples Retailing 6.05% 4.25% 20.14%
LIGAND PHARMACEUTICAL INC LGND Health Care Biotechnology 2.12% 8.8% 58.0%
ANTHEM INC ANTM Health Care Health Care Providers & Services 1.11% 1.85% 15.79%
FACTSET RESEARCH SYSTEMS INC FDS Financials Capital Markets 1.0% 1.0% 11.92%
BLACKBAUD INC BLKB Information Technology Software 0.86% -2.83% 2.5%
LOSERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
ROBERT HALF INTL INC RHI Industrials Professional Services -2.84% -2.23% 33.07%
BERRY GLOBAL GROUP INC BERY Materials Containers & Packaging -1.97% -5.87% -25.93%
SHERWIN-WILLIAMS CO SHW Materials Chemicals -1.79% -2.11% 5.5%
JEFFERIES FINANCIAL GRP INC JEF Financials Diversified Financial Services -1.7% -4.86% -13.19%
COPART INC CPRT Industrials Commercial Services & Supplies -1.56% 1.34% 30.76%

Source: S&P Capital IQ

Top Short Winners and Losers

On Mobile/Tablet scroll to the right

WINNERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
DYCOM INDUSTRIES INC DY Industrials Construction & Engineering -27.58% -26.83% -49.4%
BLOOM ENERGY CORP-REDH BE Industrials Electrical Equipment -11.04% -12.08% -0.96%
CALIFORNIA RESOURCES CORP CRC Energy Oil, Gas & Consumable Fuels -10.03% -13.27% 45.95%
AVALARA INC AVLR Information Technology Software -9.65% -5.65% -13.58%
GREENSKY INC GSKY Information Technology IT Services -7.25% -38.13% -53.55%
LOSERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
FOSSIL GROUP INC FOSL Consumer Discretionary Textiles, Apparel & Luxury Goods 5.02% -15.64% 104.15%
SYNAPTICS INC SYNA Information Technology Semiconductors & Semiconductor Equipment 3.86% -8.73% 7.53%
TANDEM DIABETES CARE INC TNDM Health Care Health Care Equipment & Supplies 2.52% -2.0% 252.38%
SNAP INC SNAP Information Technology Software 2.09% -3.75% -17.34%
PATTERSON COMPANIES INC PDCO Health Care Health Care Providers & Services 1.98% -8.73% -47.35%

Source: S&P Capital IQ

Events Calendar

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Company Name Ticker Event Date Event Type Q-Factor Score
SORL Auto Parts, Inc. SORL 8/14/2018 Earnings Release Date China All-Cap: C
Phoenix New Media Limited FENG 8/14/2018 Earnings Release Date China All-Cap: C
Advance Auto Parts, Inc. AAP 8/14/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Tapestry, Inc. TPR 8/14/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
CDK Global, Inc. CDK 8/14/2018 Earnings Release Date US Large-Cap: A, US Information Technology: A
The Home Depot, Inc. HD 8/14/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: A
Array BioPharma Inc. ARRY 8/14/2018 Earnings Release Date US Large-Cap: F
Brinker International, Inc. EAT 8/14/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: A
Agilent Technologies, Inc. A 8/14/2018 Earnings Release Date US Large-Cap: C
Hollysys Automation Technologies Ltd. HOLI 8/14/2018 Earnings Release Date China All-Cap: B
Madrigal Pharmaceuticals, Inc. MDGL 8/14/2018 Estimated Earnings Release Date US Large-Cap: F
Yirendai Ltd. YRD 8/14/2018 Estimated Earnings Release Date China All-Cap: C
Zai Lab Limited ZLAB 8/14/2018 Estimated Earnings Release Date China All-Cap: F
Xunlei Limited XNET 8/14/2018 Earnings Release Date China All-Cap: C
China Rapid Finance Limited XRF 8/14/2018 Earnings Release Date China All-Cap: F
Xinyuan Real Estate Co., Ltd. XIN 8/15/2018 Earnings Release Date China All-Cap: F
Macy's, Inc. M 8/15/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
NetApp, Inc. NTAP 8/15/2018 Earnings Release Date US Large-Cap: B, US Information Technology: B
Dillard's, Inc. DDS 8/15/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Nordstrom, Inc. JWN 8/15/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
The Children's Place, Inc. PLCE 8/15/2018 Estimated Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
Applied Materials, Inc. AMAT 8/15/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: C

Source: S&P Capital IQ