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Morning Brief

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Global Stocks Starting The Week Positive Ahead of Jackson Hole Economic Symposium on Friday

Aug 20, 2018

US Stocks                                                                                                                                                                           Start Your Free Trial Today

  • Global stocks are in the green to begin the week ahead of the annual Jackson Hole Economic Policy Symposium on Friday and positive investor sentiment towards the continuation of US-Sino trade talks 
  • US stocks index futures are pointing to a positive open in NY with the Dow Jones minis +0.19%, S&P500 minis +0.15% and Nasdaq 100 minis +0.29% 
  • The VIX is little changed this morning and is currently at 12.42 after closing at 12.64 last week
  • SPY December 2018 OTM Calls, AngloGold Ashanti September 21 Puts, an EEM September 21 OTM Calls are the most heavily traded options contracts in the US pre-market 
  • US 10-Year Treasury Bonds are higher with yields down -0.54 basis points to 2.8551%
  • The US Treasury 2s-10s Spread has narrowed 0.74 basis points to 0.25%
  • WTI Crude is currently up 0.69% to USD$65.91/bbl with the Brent-WTI spread little changed USD$-0.03 to USD$5.53/bbl
  • Gold is currently little changed 0.23% to USD$1186.93/oz

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • AngloGold Ahanist (JSE:ANG) reports C1H2018 Net Income of USD$33mm and negative free cash flow of USD$51mm.  Shares of AngloGold Ashani finished +1.88$ to ZAr10,768.00. AngloGold Ashanti is not rated in our Global Top Picks Models.  
  • Apple Inc (AAPL) has agreed to remove 25,000 illegal gambling apps from its China App Store, after facing criticism from China’s state media. Shares of Apple are 0.46% higher to $218.57 pre-market. Apple is rated as “Attractive” in both our US Large-Cap and US Information Technology Models. 
  • China Telecom (SEHK: 728) reports C1H2018 Net Income of CNY13.57bn, growing +8.1% Y/Y.  The stock closed up +0.84% at HKD3.58.  China Telecom is rated as “Attractive” in our China All-Cap Global Top Picks Model. 
  • CSPC Pharmaceutical (SEHK:1093) posted C1H2018 net income of HKD$1.85bn, which represents a 41% Y/Y increase for the company. CSPC’s stocks rose 1.14% to HKD$17.42 in today's trading 
  • Estee Lauder (EL) reported F4Q2018 that beat the consensus ($0.61 vs $0.56 projected) but provided a range of FY2018 EPS guidance that was softer than anticipated ($4.62 to $4.71 vs $5.00 expected). Estee Lauder is down 2.16% to $133 before today’s trading 
  • Hong Kong investor's shorts on Warren Buffet-backed auto manufacturer  BYD Co (BYD) are at the highest level in 12 years according to Bloomberg. According to Bloomberg’s analysis, BYD is the second-most shorted stock on the Hong Kong Stock Exchange. The stock closed up 6.22% to HKD46.10.  BYD is rated is rated as “Unattractive” in our China All-Cap Global Top Picks Model. 
  • PepsiCo Inc (PEP) has agreed to acquire drink-dispenser company SodaStream International Ltd (SODA) for $3.2 billion. The deal values SodaStream’s stock at $144 per share, representing an 11% premium to SodaStream International’s closing price on Friday. PepsiCo is rated as “Attractive” in our US Consumer Staples Model, and as “Neutral” in our US Large-Cap Model. 
  • Wynn Macau (SEHK: 1128) traded up 8.92% to HKD20.15, the biggest one day move in 6-months) after the company announced a special dividend.  Wynn Macau is rated as is rated as “Attractive” in our China All-Cap Global Top Picks Model. 

European Stocks

  • European stocks are starting the week positive as investors await the the next meeting between US and Chine trade officials 
  • Basic Resources (+2.05%), Chemicals (+1.23%), and Oil & Gas (+1.14%) stocks are the top performers in the Euro Stoxx 600 today 
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 4.17x
  • 36 stocks in the Euro Stoxx 600 are at 4-week highs while 98 stocks are at 4-week lows
  • 14 stocks in the Euro Stoxx 600 are overbought while 41 stocks are oversold according to the 16-day RSI Measure
  • EUR€ is currently down -0.192% against the USD$ to 1.1416
  • GBP£ is currently little changed against the USD$ at 1.2764
  • CHF is currently little changed against the USD$ at 1.0045
  • German 10-Year Bunds are lower with yields up 0.4 basis points to 0.309%
  • UK 10-Year GILTs are lower with yields up 0.5 basis points to 1.241%

Asian Stocks

  • Asian stocks started the week mixed as Sino-American trade talks restart and ahead of the release of Fed minutes from past Wednesday meeting and the annual Jackson Hole Economic Policy Symposium on Friday 
  • The Nikkei 225 finished down -0.32%, the Hang Seng ended up +1.41%, the Hang Seng China Enterprise up +1.13%, and the CSI 300 was +1.17%
  • Real Estate (+0.95%), Pulp And Paper (+0.76%), and Oil & Coal Products (+0.44%) stocks were the top performers among Japanese stocks today
  • Nonferrous Metals (-1.32%), Warehousing & Harbor Transportation Services (-1.31%), and Metal Products (-1.06%) stocks were the worst performers among Japanese stocks today
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.57x
  • 10 stocks in the Nikkei 225 hit 4-week highs while 4 stocks reached 4-week lows
  • 2 stocks in the Nikkei 225 closed overbought while 12 stocks closed oversold according to the 16-day RSI Measure
  • 1 stock in the Hang Seng hit 4-week highs while 5 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 lower with yields up 0.6 basis points to 0.104%
  • JGBs 2s-10s Spread is unchanged at 0.23%
  • JPY¥ is currently little changed against the USD$ at 110.61

Data in Price Return, Source: Stockdio

Stock Sentiment

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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 241 5.29 9 9 7.73% 11.83%
Microsoft Corp 213 8.71 24 25 6.40% 6.06%
Ford Motor Co 207 5.57 -7 -7 -10.71% -13.74%
Walmart Inc 205 8.14 0 -11 -0.48% -1.42%
Netflix Inc 202 6.29 -27 -24 -0.82% 3.13%

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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
Starbucks Corp 69 9.00 -8 -23 1.74% -1.80%
International Business Machines Corp 134 8.71 4 1 1.23% 1.40%
Microsoft Corp 213 8.71 24 25 6.40% 6.06%
Verizon Communications Inc 51 8.14 -17 -16 0.56% 0.36%
Walmart Inc 205 8.14 0 -11 -0.48% -1.42%

Implied Volatility Data For Liquid Macro Index ETFs

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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 8.56 36.11% 10.89 51.79% 1.27 78.17% 0.65 49.4% 2.11 53.57%
QQQ 12.99 36.51% 15.36 50.79% 1.18 85.52% -0.33 38.1% 2.42 62.1%
IWM 11.25 15.28% 14.41 53.57% 1.28 97.82% -0.85 17.86% 3.17 60.52%
FEZ 14.26 69.84% 15.46 81.75% 1.08 46.23% -1.1 25.6% -0.91 26.98%

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

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WINNERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
LIGAND PHARMACEUTICAL INC LGND Health Care Biotechnology 3.41% 2.28% 58.15%
TYSON FOODS INC  -CL A TSN Consumer Staples Food Products 2.33% 3.62% -24.77%
QUEST DIAGNOSTICS INC DGX Health Care Health Care Providers & Services 1.72% 2.65% 13.34%
EPAM SYSTEMS INC EPAM Information Technology IT Services 1.66% 3.56% 21.94%
DOLLAR GENERAL CORP DG Consumer Discretionary Multiline Retail 1.42% 3.88% 13.18%
LOSERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
HUMANA INC HUM Health Care Health Care Providers & Services -1.67% -0.13% 25.82%
JEFFERIES FINANCIAL GRP INC JEF Financials Diversified Financial Services -1.48% -0.93% -12.42%
ROBERT HALF INTL INC RHI Industrials Professional Services -1.46% -3.02% 32.89%
ADOBE SYSTEMS INC ADBE Information Technology Software -1.29% -3.2% 32.4%
VERISIGN INC VRSN Information Technology Internet Software & Services -1.29% -1.43% 32.0%

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
BLOOM ENERGY CORP-REDH BE Industrials Electrical Equipment -4.1% -21.95% -11.88%
GILEAD SCIENCES INC GILD Health Care Biotechnology -3.6% -5.09% -0.1%
IMMUNOMEDICS INC IMMU Health Care Biotechnology -2.54% -11.71% 27.69%
SNAP INC SNAP Information Technology Software -2.33% -3.47% -22.9%
ACADIA PHARMACEUTICALS INC ACAD Health Care Biotechnology -2.05% -13.54% -84.82%
LOSERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
PIVOTAL SOFTWARE INC PVTL Information Technology Software 6.04% 5.96% 45.89%
FITBIT INC FIT Information Technology Electronic Equipment, Instruments & Components 4.3% 3.21% -5.3%
CAESARS ENTERTAINMENT CORP CZR Consumer Discretionary Hotels, Restaurants & Leisure 4.08% 2.02% -21.91%
GREENSKY INC GSKY Information Technology IT Services 3.62% 15.81% -30.49%
FOSSIL GROUP INC FOSL Consumer Discretionary Textiles, Apparel & Luxury Goods 3.24% 6.08% 105.21%

Source: S&P Capital IQ

Cryptos

  • Jacob Burrell Campos, a 21-year old Bitcoin trader/dealer, is being prosecuted for illegal money transmission and money laundering according to the Department of Justice in Southern District of California.  Prosecuters are alleging that Burrell , from January 2015 to April 2016, sold ~USD$750,000 BTC to 900 individuals in the U.S. via his bitcoin exchange service.  However, Burrell had not registered the exchange as a licensed money transmitter and intentionally failed to implement anti-money laundering measures 
  • SoftBank is formally denying any involvement in a financing deal with Bitmain, the Bitcoin mining giant, as was reported last week. 
  • Tube8, an adult video service and a subisidary of Pornhub, announces it is partnering with Vice Industry Token (VIT) to pay viewers for interacting with content using VIT tokens.  The goal would be to fully tokenize Tube8’s online platform. 

Cryptocurrencies Today

Events Calendar

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Company Name Ticker Event Date Event Type Q-Factor Score
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: B, US Consumer Staples: C
Nordson Corporation NDSN 8/20/2018 Earnings Release Date US Large-Cap: A, US Industrials: B
Haitong International Securities Group Limited SEHK:665 8/20/2018 Estimated Earnings Release Date China All-Cap: C
Dah Chong Hong Holdings Limited SEHK:1828 8/20/2018 Estimated Earnings Release Date China All-Cap: A
Jack Henry & Associates, Inc. JKHY 8/20/2018 Earnings Release Date US Large-Cap: A, US Information Technology: A
CGN Power Co., Ltd. SEHK:1816 8/20/2018 Earnings Release Date China All-Cap: C
China Longyuan Power Group Corporation Limited SEHK:916 8/20/2018 Earnings Release Date China All-Cap: B
China State Construction International Holdings Limited SEHK:3311 8/20/2018 Earnings Release Date China All-Cap: C
Tongda Group Holdings Limited SEHK:698 8/20/2018 Earnings Release Date China All-Cap: C
Urban Outfitters, Inc. URBN 8/20/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Honghua Group Limited SEHK:196 8/20/2018 Estimated Earnings Release Date China All-Cap: D
China Resources Land Limited SEHK:1109 8/20/2018 Earnings Release Date China All-Cap: B
The J. M. Smucker Company SJM 8/20/2018 Earnings Release Date US Large-Cap: A, US Consumer Staples: A
Zhongsheng Group Holdings Limited SEHK:881 8/20/2018 Estimated Earnings Release Date China All-Cap: A
Zayo Group Holdings, Inc. ZAYO 8/20/2018 Estimated Earnings Release Date US Large-Cap: D
CITIC Telecom International Holdings Limited SEHK:1883 8/20/2018 Estimated Earnings Release Date China All-Cap: B
Green Leader Holdings Group Limited SEHK:61 8/20/2018 Estimated Earnings Release Date China All-Cap: F
Toll Brothers, Inc. TOL 8/21/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
The TJX Companies, Inc. TJX 8/21/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: A
Coty Inc. COTY 8/21/2018 Earnings Release Date US Large-Cap: F, US Consumer Staples: C
Kohl's Corporation KSS 8/21/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: A
Keysight Technologies, Inc. KEYS 8/21/2018 Earnings Release Date US Large-Cap: A, US Information Technology: B
Pure Storage, Inc. PSTG 8/21/2018 Earnings Release Date US Large-Cap: F, US Information Technology: D
L Brands, Inc. LB 8/21/2018 Earnings Release Date US Large-Cap: F, US Consumer Discretionary: C

Source: S&P Capital IQ