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Global Stocks Rallying for Second Straight Day with US-China trade talks in focus

Aug 21, 2018

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US Stocks

  • Global stocks are advancing this morning as investors continue to view the restart of US-Chinana trade talks as a positive sign 
  • The USD$ is weakening this morning following news that US President Trump criticized hawkish Fed policy to Republican donors in the Hamptons last night 
  • BHP Biliton (ASX:BHP) CEO Andrew Mackenzie, during an interview with Bloomberg, says the US will lose from a global trade war as flows shift to other countries  
  • US stocks index futures are pointing to a positive open in NY with the Dow Jones minis +0.21%, S&P500 minis +0.18% and Nasdaq 100 minis +0.29% 
  • The VIX is little changed this morning and is currently at 12.4 after closing at 12.49 yesterday 
  • Flex (FLEX) September 21 OTM Puts, EEM September OTM Puts, SPY December 31 Calls, and HYG Septembe 21 OTM Calls & Puts are the most heavily traded options contracts in the US pre-market 
  • US 10-Year Treasury Bonds are lower with yields up 1.98 basis points to 2.8388%
  • The US Treasury 2s-10s Spread has widened 0.53 basis points to 0.24%
  • WTI Crude is currently up 0.79% to USD$66.43/bbl with the Brent-WTI spread down USD$-0.43 to USD$5.31/bbl
  • Gold is currently up 0.3% to USD$1194.04/oz

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • BHP Billiton Limited (ASX:BHP) reported FY2018 net income of AUD$8.9 bn, representing a 33% Y/Y increase driven largely by a rise in commodity prices, although profit fell short of analyst expectations (AUD$9.2bn projected). BHP Billiton has an “Attractive” rating in our Australia All-Cap model. 
  • China Telecom (SEHK:728) posted F1H2018 net profit to USD$1.99bn, which represents an 8.1% Y/Y increase. Shares of China Telecom rose 5.02% to HKD$3.76 today. China Telecom has an “Attractive” rating in our China All-Cap model.  
  • Medtronic Plc (MDT) reported F1Q2019 EPS that was stronger than forecasted ($1.17 vs $1.11 expected). Medtronic shares are up 3.85% to $93.50 before the open. Medtronic is unranked in our Global Top Picks models. 
  • Ping An (SEHK:2318) released F1H2018 net income of ¥58.1bn, representing a 34% Y/Y increase. The company also increased its quarterly dividend by 24% to ¥62 per share, up from ¥50. Ping An shares rose 1.44% in today’s trading to HKD$70.35. Ping An has an “Attractive” rating in our China All-Cap model.  
  • Toll Brothers (TOL) announced F3Q2018 EPS that beat the consensus ($1.26 vs $1.03 projected). Shares of Toll Brothers are up 7.40% to $37.30 pre-market. Toll Brothers has an “Attractive” rating in our US Large-Cap model, and an “Unattractive” rating in our US Consumer Discretionary model. 

European Stocks

  • European stocks are rallying for the second day in a row as the impact of a weaker USD$ and continued trade talks between China and the US are in focus 
  • The Euro Stoxx 600 is currently up +0.34%, the FTSE 100 has declined -0.19%, the DAX has advanced +0.71%, and the CAC 40 has risen +0.76%
  • Construction & Materials (+0.75%), Utilities (+0.7%), and Banks (+0.6%) stocks are the top performers in the Euro Stoxx 600 today
  • 67 stocks in the Euro Stoxx 600 are at 4-week highs while 18 stocks are at 4-week lows
  • 22 stocks in the Euro Stoxx 600 are overbought while 30 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 13.61 after closing at 14.5 last week
  • EUR€ is currently up +0.357% against the USD$ to 1.1523
  • GBP£ is currently up +0.273% against the USD$ to 1.2833
  • CHF is currently up +0.416% against the USD$ to 1.0128 
  • German 10-Year Bunds are lower with yields up 2.2 basis points to 0.324%
  • UK 10-Year GILTs are lower with yields up 2.7 basis points to 1.25%

Asian Stocks

  • Asian stocks continued their rebound for the second straight day following news that state-backed funds in China were buying stocks on the Shanghai Stock Exchange 
  • The Nikkei 225 finished up +0.09%, the Hang Seng ended up +0.56%, the Hang Seng China Enterprise up +0.99%, and the CSI 300 was +1.82%
  • Pharmaceutical (+0.7%), Pulp And Paper (+0.52%), and Securities & Commodity Futures (+0.34%) stocks were the top performers among Japanese stocks today
  • Information & Communication (-1.89%), Services (-0.92%), and Wholesale Trade (-0.91%) 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 0.72x
  • 7 stocks in the Nikkei 225 hit 4-week highs while 11 stocks reached 4-week lows
  • 4 stocks in the Nikkei 225 closed overbought while 11 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 1.17x
  • 3 stocks in the Hang Seng hit 4-week highs while 11 stocks reached 4-week lows
  • 2 stocks in the Hang Seng closed overbought while 4 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are higher with yields down -1.8 basis points to 0.086%
  • JGBs 2s-10s Spread has narrowed 2 basis points to 0.21%
  • JPY¥ is currently up 0.164% against the USD$ to 110.25

*Data in Price Return and Updated Real-Time (with a delay), 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 231 4.85 7 9 -0.30% 7.05%
Ford Motor Co 205 5.42 -7 -9 -9.92% -13.75%
Walmart Inc 189 7.71 8 5 1.28% 0.91%
Microsoft Corp 179 8.71 26 24 0.40% 6.07%
Netflix Inc 161 6.28 1 -23 -0.83% 2.98%
 

Note: Please see our General FAQs to learn how we define and measure News Volume

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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 56 9 -9 -23 1.68% -1.81%
International Business Machines Corp 105 8.71 3 0 -0.43% 1.27%
Microsoft Corp 179 8.71 26 24 0.40% 6.07%
Exxon Mobil Corp 37 8.28 -6 -4 1.00% 6.00%
Verizon Communications Inc 44 8.14 -16 -16 0.52% 0.36%

Note: Please see our General FAQs to learn how we define and measure News Buzz

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 8.43 34.13% 10.85 49.6% 1.29 82.14% 0.52 48.02% 2.08 53.37%
QQQ 13.37 40.67% 16.41 68.25% 1.23 92.66% 0.08 42.46% 3.47 79.76%
IWM 11.48 20.24% 12.82 9.72% 1.12 67.06% -0.65 20.24% 1.57 35.71%
FEZ 13.9 68.25% 15 75.4% 1.08 46.03% -1.78 20.24% -1.44 21.43%
EEM 17.81 74.6% 18.94 79.37% 1.06 50.2% -1.17 28.57% 1.15 45.44%

Note: Please see our Options FAQs to learn more about Implied Volatility and other advanced options volatility measures

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
CBOE GLOBAL MARKETS INC CBOE Financials Capital Markets 3.09% 6.27% -21.21%
MARRIOTT VACATIONS WORLDWIDE VAC Consumer Discretionary Hotels, Restaurants & Leisure 2.22% 6.11% -9.43%
ADOBE SYSTEMS INC ADBE Information Technology Software 1.64% -1.5% 34.04%
SEI INVESTMENTS CO SEIC Financials Capital Markets 1.63% 3.14% -15.29%
MOTOROLA SOLUTIONS INC MSI Information Technology Communications Equipment 1.61% 2.96% 33.17%

 

LOSERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
LIGAND PHARMACEUTICAL INC LGND Health Care Biotechnology -3.45% -3.29% 54.7%
BROADCOM INC AVGO Information Technology Semiconductors & Semiconductor Equipment -1.23% -2.09% -24.22%
CONSOLIDATED EDISON INC ED Utilities Multi-Utilities -1.08% 2.47% -1.23%
PG&E CORP PCG Utilities Electric Utilities -1.04% 4.55% 0.65%
VAIL RESORTS INC MTN Consumer Discretionary Hotels, Restaurants & Leisure -0.98% 1.61% 33.91%

Source: S&P Capital IQ, StockDio

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 -6.94% -38.73% -73.99%
ARRAY BIOPHARMA INC ARRY Health Care Biotechnology -5.24% -9.07% -1.26%
QORVO INC QRVO Information Technology Semiconductors & Semiconductor Equipment -4.16% -6.12% 12.66%
FOCUS FINANCL PRTNR LLC-REDH FOCS Financials Capital Markets -4.11% -10.21% -1.61%
SPARK THERAPEUTICS INC ONCE Health Care Biotechnology -3.04% 1.75% 11.04%

 

LOSERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
TANDEM DIABETES CARE INC TNDM Health Care Health Care Equipment & Supplies 5.96% 12.64% 265.02%
AMERICAN AIRLINES GROUP INC AAL Industrials Airlines 5.66% 8.34% -27.45%
CARVANA CO CVNA Consumer Discretionary Specialty Retail 5.46% 8.72% 116.21%
FITBIT INC FIT Information Technology Electronic Equipment, Instruments & Components 5.3% 10.7% 0.0%
DIAMOND OFFSHRE DRILLING INC DO Energy Energy Equipment & Services 4.42% -4.06% -13.45%

Source: S&P Capital IQ, StockDio

Cryptos

  • A report from blockchain analytics firm Chainanalysis finds the use of Bitcoin Cash in commerce is decreasing.  According to the research, Bitcoin Cash payments dropped to USD$3.7 million in May from USD $10.5 million in March, while the volume of Bitcoin (BTC) payments was estimated $60 million in May, down from a high of $412 million in September. 
  • Police in India have arrested the Asia Head of Bitconnect, a now defunct cryptocurrecny trading platgfirm.  Authorities accuse Bitconnect of being a multi-billion dollar ponzi scam where investors would put capital into a vehicle that would be managing by a trading bot promising yield on their cryptocurrencies.  
  • The Swiss Stock Exchange SIX Group formally says that there are no plans to include digital currencies on its digital assets platform. SIX Group is looking to bridge the gap between crowdfunding and ICOs rather than get involved in cryptocurrecny trading. 
  • Zhesang Bank, one of the largest privately-owned commercial banks in China, has issued securities worth USD$66mm using blockchain technology.  According to CoinDesk, the blockchain platform, called Lianrong, was designed in-house by the bank to allow registered companies to broadcast account receivable assets to potential investors and to further let them settle invoice transactions as securities peer-to-peer. 

Cryptocurrencies Today

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

Events Calendar

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Company Name Ticker Earnings Date Event Type
Nordson Corporation NDSN 8/20/2018 Earnings Release Date
The J. M. Smucker Company SJM 8/20/2018 Earnings Release Date
Jack Henry & Associates, Inc. JKHY 8/20/2018 Earnings Release Date
Keysight Technologies, Inc. KEYS 8/21/2018 Earnings Release Date
Lowe's Companies, Inc. LOW 8/21/2018 Earnings Release Date
HP Inc. HPQ 8/23/2018 Earnings Release Date
Ollie's Bargain Outlet Holdings, Inc. OLLI 8/28/2018 Estimated Earnings Release Date
PVH Corp. PVH 8/29/2018 Earnings Release Date
Dollar Tree, Inc. DLTR 8/29/2018 Estimated Earnings Release Date
Five Below, Inc. FIVE 8/29/2018 Estimated Earnings Release Date
Dollar General Corporation DG 8/30/2018 Earnings Release Date
Copart, Inc. CPRT 9/17/2018 Estimated Earnings Release Date
Micron Technology, Inc. MU 9/19/2018 Estimated Earnings Release Date
Darden Restaurants, Inc. DRI 9/24/2018 Estimated Earnings Release Date
FactSet Research Systems Inc. FDS 9/24/2018 Estimated Earnings Release Date
Cintas Corporation CTAS 9/24/2018 Estimated Earnings Release Date
Conagra Brands, Inc. CAG 9/25/2018 Estimated Earnings Release Date
Paychex, Inc. PAYX 9/27/2018 Estimated Earnings Release Date

Source: S&P Capital IQ