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Global Stocks Are In the Red This Morning Following Disappointing Earnings Out of NVIDIA and Applied Materials

Aug 17, 2018

US Stocks                                                                                                                                                                           Start Your Free Trial Today

  • Global stocks are in the red this morning with weak earnings from US chipmakers in focus 
  • US stocks index futures are pointing to a negative open in NY with the Dow Jones minis –0.10%, S&P500 minis –0.11% and Nasdaq 100 minis –0.17% 
  • SPY August 17 & December 2018 OTM Calls & 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 higher with yields down 1.44 basis points to 2.8515%
  • The US Treasury 2s-10s Spread has narrowed 0.18 basis points to 0.25%
  • WTI Crude is currently up 0.69% to USD$65.46/bbl with the Brent-WTI spread up USD$0.8 to USD$5.88/bbl
  • Gold is currently up 0.28% to USD$1177.41/oz

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

  • Air Canda (AC TSX) annouced its long time COO Ben Smith will be leaving the company. He has been tapped to lead Air France-KLM as the first non-French to lead the carrier.
  • Applied Materials (AMAT) provided 4Q guidance that was weaker than market consensus, expecting US$3.85-4.15bn in sales while the market is looking for US$4.45bn. The weak guidance came with comments from management that they are concerned about slowing demand from smartphone makers where growth is lower.
  • ATT&T (T) unit DirecTv saw the FTC lawsuit against it thrown out by a federal judge. The FTC is trying to charge DirecTV with deceptive practices related to its promotional campaigns. The deals included 1 year of free TV and the FTC is alleging that was not made sufficiently clear.
  • John Deere & CO (DE) reported 2Q EPS of US$2.78 versus US$ 2.75, revenue of US$9.29bn was up 36% compared with a year ago 
  • Google (GOOGL) CEO Sundar Pichai told employees this week that the company is not close to launching its search product in China, in contrast to the growing media speculation that it was. The CEO held the town hall style meeting to address criticisms inside the company around the potential for a censored version of its search product. 
  • Nordstrom (JWN) reported 2Q results yesterday aftermarket closed with 4% same store sales growth, well above 0.8% consensus. FY2019 sales guidance was raised to US$15.4-15.5bn (was $15.2-15.4bn), EPS of US$3.50-3.65 (was $3.35-3.55) and same store sales +1.5-2% (was 0.5-1.5%). The stock rallied 11.9% after hours.
  • Novo Nordisk (NVO) has acquired Ziylo Ltd in s deal worth up to US$800mn. Ziylo is focused on developing glucose responsive insulin and has worked with Novo Nordisk in the past.  The final value of the deal will depend on the number of earn-outs that are achieved.
  • Nvidia (NVDA) reported 40% growth in sales in 2Q but the highlights we negative with lower 3Q guidance of US$3.25bn in sale versus US$3.35bn consensus. CFO Colette Kress gave a negative outlook for crypto mining sales, saying the US$100mn they expected was only US$18mn in 2Q and going forward those sales should be negligible.
  • Tesla (TSLA) will lose money on every $35,000 Model 3 it sells, about US$2,300 per car, according to a UBS report just released. The lack of this model being available initially will help results in 3Q when CEO Elon Musk  is predicting a profit for Tesla.
  • Walmart (WMT) rose 9% yesterday after reporting the best sales growth in over 10 years. CEO Doug McMillon said Walmart customers are very optimistic about the current state of the economy.

European Stocks

  • European stocks are dropping this AM following disappointing earnings from US chipmakers after the close yesterday, and further concerns over US-Turkish tensions as the US announces additional sanctions
  • The Turkish Lira is down 5.15% against the USD$ to 6.1511 following a 15%+ rally over the previous trading days  
  • European stocks are on pace for their worst week in almost two weeks 
  • Health Care (+0.21%), Industrial Goods & Services (+0.1%), and Personal & Household Goods (+0.09%) stocks are the top performers in the Euro Stoxx 600 today
  • The worst performers in the Euro Stoxx 600 today are Automobiles & Parts (-0.93%), Banks (-0.85%), and Basic Resources (-0.58%) stocks 
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.63x
  • 25 stocks in the Euro Stoxx 600 are at 4-week highs while 79 stocks are at 4-week lows
  • 11 stocks in the Euro Stoxx 600 are overbought while 37 stocks are oversold according to the 16-day RSI Measure
  • EUR€ is currently little changed against the USD$ at 1.1387
  • GBP£ is currently little changed against the USD$ at 1.2708
  • CHF is currently little changed against the USD$ at 1.0038
  • German 10-Year Bunds are higher with yields down 2.1 basis points to 0.299%
  • UK 10-Year GILTs are higher with yields down 2.8 basis points to 1.212%

Asian Stocks

  • Asian stocks, as a whole, finished their trading sessions in the green following news that Vice Chairman Wang Shouwen will visit the US to begin a new round of trade talks 
  • The Nikkei 225 finished up 0.35%, the Hang Seng ended up 0.42%, the Hang Seng China Enterprise up 0.33%, and the CSI 300 was +1.44%
  • Marine Transportation (+2.44%), Precision Instruments (+1.7%), and Mining (+1.6%) stocks were the top performers among Japanese stocks today
  • Electronic Power & Gas (-0.35%), Fishery Agriculture & Forestry (-0.16%), and Rubber Products (-0.1%) 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 2.52x
  • 5 stocks in the Nikkei 225 hit 4-week highs while 108 stocks reached 4-week lows
  • 2 stocks in the Nikkei 225 closed overbought while 19 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
  • 3 stocks in the Hang Seng hit 4-week highs while 26 stocks reached 4-week lows
  • 1 stock in the Hang Seng closed overbought while 7 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are higher with yields down 0.4 basis points to 0.098%
  • JGBs 2s-10s Spread has widened 0.7 basis points to 0.23%

*Data in Price Return, Source: Stockdio

Stock Sentiment

Top Stocks by 7-day News Volume

Name 7 Day News Volume 7 Day Average News Buzz 1M EPS Net Revisions 3M EPS Net Revisions 1M Net EPS Revisions % CHG 3M Net EPS Revisions % CHG
Goldman Sachs Group Inc 240 7.29 9 9 7.73% 11.83%
Microsoft Corp 218 8.43 24 25 5.99% 15.47%
Ford Motor Co 204 7.14 -7 -7 -13.81% 5.96%
Netflix Inc 189 6.43 -27 -24 2.30% 25.58%
Visa Inc 177 8.00 6 8 3.33% 7.16%


Top Stocks by 7-Day Average News Buzz

Name 7 Day News Volume 7 Day Average News Buzz 1M EPS Net Revisions 3M EPS Net Revisions 1M Net EPS Revisions % CHG 3M Net EPS Revisions % CHG
International Business Machines Corp 150 8.71 4 1 1.26% 2.78%
Kinder Morgan Inc/DE 14 8.57 -3 -3 -3.72% -1.87%
Microsoft Corp 218 8.43 24 25 5.99% 15.47%
Starbucks Corp 76 8.29 -8 -23 0.51% -4.07%
Lowe's Cos Inc 19 8.14 3 -3 0.07% 1.65%

Implied Volatility Data For Liquid Macro Index ETFs

 
ETF 30D IV 30D IV Percentile 90D IV 90D IV Percentile 90D/30D IV 90D/30D IV Percentile 30D IV-20D HV 30D IV-20D HV Percentile 90D IV-60D HV 90D IV-60D HV Percentile
SPY 9.44 53.17% 11.35 61.9% 1.2 58.33% 1.56 65.87% 2.58 63.49%
QQQ 13.79 44.84% 15.76 58.73% 1.14 77.58% 0.46 48.41% 2.74 68.25%
IWM 11.2 14.29% 12.83 10.32% 1.15 78.77% -0.87 17.06% 1.61 36.11%
FEZ 15 75.99% 15.94 84.52% 1.06 38.49% -0.14 30.16% -0.58 31.15%
EEM 18.94 81.75% 19.54 83.73% 1.03 35.32% -0.34 36.9% 1.94 50.79%

S&P 500 Sector Performance

*Data in Price Return as of Previous Day's EOD, Source: Stockdio

Russell 1000 Factor Performance

*Data in Price Return as of Previous Day's EOD, Source: Stockdio

Stock Movers From Our US Large-Cap Model

Top Buy Winners and Losers

On Mobile/Tablet scroll to the right

WINNERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
PG&E CORP PCG Utilities Electric Utilities 2.99% 2.01% 0.67%
DISCOVER FINANCIAL SVCS DFS Financials Consumer Finance 2.49% 2.13% 1.41%
STERLING BANCORP STL Financials Banks 2.24% 1.79% -6.98%
MARRIOTT VACATIONS WORLDWIDE VAC Consumer Discretionary Hotels, Restaurants & Leisure 2.22% 1.83% -12.19%
SERVICEMASTER GLOBAL HLDGS SERV Consumer Discretionary Diversified Consumer Services 1.96% 3.55% 19.0%
LOSERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
LIGAND PHARMACEUTICAL INC LGND Health Care Biotechnology -3.17% -0.27% 54.74%
SYSCO CORP SYY Consumer Staples Food & Staples Retailing -1.36% 5.35% 21.68%
BERRY GLOBAL GROUP INC BERY Materials Containers & Packaging -1.0% -5.01% -26.19%
ADOBE SYSTEMS INC ADBE Information Technology Software -0.65% -1.95% 33.69%
VERISIGN INC VRSN Information Technology Internet Software & Services -0.5% -0.42% 33.28%

Source: S&P Capital IQ

Top Short Winners and Losers

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WINNERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
PENNEY (J C) CO JCP Consumer Discretionary Multiline Retail -31.43% -32.26% -68.74%
ACADIA PHARMACEUTICALS INC ACAD Health Care Biotechnology -3.62% -4.48% -82.77%
CHESAPEAKE ENERGY CORP CHK Energy Oil, Gas & Consumable Fuels -3.47% -8.56% 3.59%
FOCUS FINANCL PRTNR LLC-REDH FOCS Financials Capital Markets -3.17% -5.36% 2.45%
CREE INC CREE Information Technology Semiconductors & Semiconductor Equipment -2.52% -12.76% 16.78%
LOSERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
GREENSKY INC GSKY Information Technology IT Services 10.15% 4.35% -34.12%
HERTZ GLOBAL HOLDINGS INC HTZ Industrials Road & Rail 4.85% 4.95% -11.95%
ROKU INC ROKU Consumer Discretionary Household Durables 4.55% -0.47% 9.13%
GLOBAL BLOOD THERAPEUTICS GBT Health Care Biotechnology 4.09% 7.16% 18.29%
AVALARA INC AVLR Information Technology Software 13.7% -14.51% -10.38%

Source: S&P Capital IQ

Cryptos

  • Binance is launching a JV with Liechtenstein Cryptoassets Exchange (LCX) launch a fiat to cryptocurrency exchange, Binnace LCX.  The exchange/platforming will be based in Liechtenstein and offer trading between Swiss Francs (CHF) and euros (EUR) against major digital currencies pairs with the potential for new trading pairs in the future. 
  • Crypto Facilities, the UK-based crypto futures exchange and a CME partner, is adding Bitcoin Cash to its platform. The cryptocurrency will beg trading today at 4PM BST. 
  • The Ethereum community continues to struggle with DApps topping the number of downloads on the blockchain network that are promising investments with high returns that turn out to be fraudulent.  As an example, Team JUST, the anonymous development team behind the gambling DApp FOMO 3D is warning that an indentical version of its game is eating up 1/3 of the Ethereum network’s total computational power and raising USD$7mm over the past week.   
  • Ripple Labs has endorsed three cryptocurrency exchanges, Bittrex, Bitso, and Coins.ph as its preferred partners for transactions with Ripple’s xRapid payments system. Management at Ripple Labs is encouraging users in the US, Mexico and the Philippines to use these exchanges while transacting with xRapid. XRapid is a solution for Ripple’s blockchain-based real-time gross settlement system and is meant to facilitate international fiat transfers between financial institutions. 

Cryptocurrencies Today

*Source: Stockdio

Events Calendar

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Company Name Ticker Event Date Event Type Q-Factor Score
Jupai Holdings Limited JP 8/19/2018 Estimated Earnings Release Date China All-Cap: C
Renren Inc. RENN 8/19/2018 Estimated Earnings Release Date China All-Cap: F
Cheetah Mobile Inc. CMCM 8/19/2018 Earnings Release Date China All-Cap: C
Huami Corporation HMI 8/19/2018 Earnings Release Date China All-Cap: F
Fanhua Inc. FANH 8/20/2018 Earnings Release Date China All-Cap: B
Tarena International, Inc. TEDU 8/20/2018 Earnings Release Date China All-Cap: D
The Estée Lauder Companies Inc. EL 8/20/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: D
Nordson Corporation NDSN 8/20/2018 Earnings Release Date US Large-Cap: --, US Industrials: C
Jack Henry & Associates, Inc. JKHY 8/20/2018 Earnings Release Date US Large-Cap: A, US Information Technology: B
Urban Outfitters, Inc. URBN 8/20/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
The J. M. Smucker Company SJM 8/20/2018 Earnings Release Date US Large-Cap: B, US Consumer Staples: B
Toll Brothers, Inc. TOL 8/21/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: D
The TJX Companies, Inc. TJX 8/21/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: A
Coty Inc. COTY 8/21/2018 Earnings Release Date US Large-Cap: D, US Consumer Staples: C
Kohl's Corporation KSS 8/21/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Keysight Technologies, Inc. KEYS 8/21/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Pure Storage, Inc. PSTG 8/21/2018 Earnings Release Date US Large-Cap: D, US Information Technology: C
Madrigal Pharmaceuticals, Inc. MDGL 8/21/2018 Estimated Earnings Release Date US Large-Cap: F

Source: S&P Capital IQ