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Global Stocks Making New All-Time Highs As Investors Discount Legal Threats to US President Trump

Aug 22, 2018

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US Stocks

  • Global stocks are in the green this morning as investors discount concerns about the legal fallout for US President Trump following the guilty verdicts for his former campaign manager Paul Manafort and personal lawyer Michael Cohen 
  • US stocks index futures paring early AM losses are pointing to a flat open in NY with the Dow Jones minis –0.01%%, S&P500 minis –0.05% and Nasdaq 100 minis +0.06% 
  • The VIX is little changed this morning and is currently at 13 after closing at 12.86 yesterday
  • XLF September 21 OTM Calls, Electronic Arts (EA) January 19 OTM Calls, FXI September 21 OTM Calls, Morgan Stanley (MS) OTM Calls and SPY August 24 & November 18 OTM Calls are the most heavily traded options contracts in the US pre-market 
  • US 10-Year Treasury Bonds are higher with yields down -0.19 basis points to 2.8279%
  • The US Treasury 2s-10s Spread has narrowed 0.6 basis points to 0.23%
  • WTI Crude is currently up 1.38% to USD$67.35/bbl with the Brent-WTI spread up USD$0.6 to USD$6.13/bbl
  • Gold is currently up 0.28% to USD$1199.32/oz

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • AAC Technologies (SEHK: 2018) reported C1H2018 Net Income of CNY653mm vs Consensus of CNY1.09bn.  Gross Margin for the period came in at 35.2% vs. Expectations of 38.9%.  AAC Tech finished +1.31% in Hong Kong trading.  AAC Tech is rated ‘Neutral’ in our China All-Cap Global Top Picks. 
  • Atlantia SpA ‘s (BIT:ATL) board of directors approved USD$576mm in funding to assist those injured in a fatal bridge collapse near Genoa last week, and to finance the constructions of a new steel bridge which the company claims can be completed in 8 months. Atlantia’s stock has fallen 2.33% to €18.46 in today’s trading. Atlantia is rated as ‘Neutral’ in our European Large-Cap Global Top Picks. 
  • Continental AG (DB:CON) is down over 13% after the company cut sales guidance for CY2018 for the second time this year.   
  • Coty (COTY) has been downgraded to hold from a buy rating at Societe Generale, after the company posted weaker than expected F4Q2018 revenue (USD$2.30bn vs USD$2.32bn expected), and projected a range of FY2019 EPS that was lower than forecasted ($$0.74 to $0.78 vs $0.82 projected). Coty is rated as ‘Unattractive’ in our US Large-Cap Global Top Picks, and as ‘Neutral’ in our US Consumer Staples Global Top Picks. 
  • Geely Automobile Holdings (SEHK: 175) reported C1H2018 net income of CNY6.67bn vs Consensus of CNY3.39bn. Y/Y, net income grew 54%.  Geely Auto finished +0.97% in Hong Kong trading.  Geely Auto is rated ‘Neutral’ in our China All-Cap Global Top Picks. 
  • Hartford Group (HIG) has agreed to acquire the Navigators Group (NAVG) for USD$2.1bn in an all-cash deal, valuing Navigator’s shares at $70 each. Navigators Group shares are up 10.19% pre-market to $70.80. Hartford Group is rated as ‘Neutral’ in our US Large-Cap Global Top Picks while Navigators Group is rated as ‘Buy’ in our US Large-Cap Global Top Picks. 
  • Lowe’s (LOW) posted F2Q2018 EPS that was higher than estimated ($2.07 vs $2.02), and also released Y/Y comp sales growth that was more robust than forecasted (+5.2% vs +5.0% anticipated). Lowe’s is rated as ‘Neutral’ in our US Large-Cap Global Top Picks and as ‘Attractive’ in our US Consumer Discretionary Global Top Picks. 
  • Momo (MOMO, ADR) reported F2Q2018 earnings per ADR that were higher than expected ($0.66 vs $0.61) and also beat revenue projections for the quarter ($494.3mm vs $480.3mm). Momo also provided F3Q2018 rev guidance that was higher than forecasted ($525.0mm to $540.0mm vs $518.4mm anticipated). Shares of Momo are trading 8.17% higher to $3.80 before today’s open. Momo is rated as ‘Buy’ in our China All-Cap Global Top Picks. 
  • Ping An Insurance Group (SEHK: 2318) believes its share-price is worth more.  At the moment, Ping An is spending USD$1.6bn on R&D every year as the importance of technology to Ping An’s profitability continues to grow.  Ping An is rated as ‘Attractive” in our China All-Cap Global Top Picks. 
  • TAL Education (TAL, ADR) has declined 2.23% pre-market to $30.26, over concerns of potential increased regulations for Chinese tutorial companies, including regulations prohibiting companies from accepting payment for courses more than three months out or operating later than 8:30 a.m. TAL Education is ranked as ‘Attractive’ in our China All-Cap Global Top Picks. 
  • Target (TGT) reported F2Q2018 EPS that beat the consensus ($1.47 vs $1.40 projected). Shares of Target are trading 4.00% higher pre-market to $86.60. Target is rated ‘Buy’ in our US Consumer Discretionary Global Top Picks and ‘Neutral’ in our US Large Cap Global Top Picks. 
  • Tesla Inc' (TSLA) actions has been quietly been investigated by the SEC for months, but now the regulator is facing increased pressure to probe the company following tweets from CEO Elon Musk that have raised concerns regarding improper business practices at the firm. Tesla is rated as 'Unattractive' in our US Large-Cap and US Consumer Discretionary Global Top Picks. 
  • Xiaomi Corp (SEHK: 1810) , in its first ever public markets earning results, reports C1H2018 net income of CNY79.6bn.  2Q revenue grew 68% to CNY45.2bn.  Xiaomi finished +1.61% in Hong Kong trading. Xiaomi is not rated in our China All-Cap Global Top Picks. 

European Stocks

  • European stocks advancing for the third straight day after the Euro Stoxx 600 made 1-month highs yesterday  
  • According to updated date from the European Central Bank (ECB), wages in the Euro-area rose 2.2% in C2Q2018, the highest since 2012 and compares to +1.7% for C1Q2018 
  • Telecommunications (+0.75%), Oil & Gas (+0.72%), and Basic Resources (+0.62%) 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 2.06x
  • 76 stocks in the Euro Stoxx 600 are at 4-week highs while 16 stocks are at 4-week lows
  • 23 stocks in the Euro Stoxx 600 are overbought while 16 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 13.66 after closing at 13.87 last week
  • EUR€ is currently up +0.32% against the USD$ to 1.1608
  • GBP£ is currently little changed against the USD$ at 1.2905
  • CHF is currently up +0.276% against the USD$ to 1.018
  • German 10-Year Bunds are lower with yields up 0.7 basis points to 0.338%
  • UK 10-Year GILTs are lower with yields up 0.1 basis points to 1.268%

Asian Stocks

  • Asian stocks closed positive extending a rally in the region to 4 days as improving investor sentiment to regional auto and tech stocks 
  • The Nikkei 225 finished up +0.64%, the Hang Seng ended up +0.63%, the Hang Seng China Enterprise up +1.05%, and the CSI 300 was -0.56%
  • Oil & Coal Products (+2.37%), Glass & Ceramics Products (+2.08%), and Transportation Equipment (+2.08%) stocks were the top performers among Japanese stocks today
  • Pulp And Paper (-1.84%), Land Transportation (-0.37%), and Information & Communication (-0.26%) 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 3.69x
  • 11 stocks in the Nikkei 225 hit 4-week highs while 32 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 positive with the advance/decline ratio for the Hang Seng closing at 1.5x
  • 0 stocks in the Hang Seng hit 4-week highs while 5 stocks reached 4-week lows
  • 1 stock in the Hang Seng closed overbought while 2 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are lower with yields up 1.3 basis points to 0.099%
  • JGBs 2s-10s Spread has widened 0.8 basis points to 0.22%
  • JPY¥ is currently little changed against the USD$ at 110.27

*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 % CHG 3M Net EPS % CHG
Microsoft Corp 207 8.86 26 24 0.52% 6.20%
Walmart Inc 193 6.86 8 5 1.17% 0.81%
Bank of America Corp 186 1.43 1 -4 0.21% 0.27%
Wells Fargo & Co 173 6.43 -4 -9 -1.72% -0.79%
Goldman Sachs Group Inc 166 3.71 7 9 -0.30% 7.05%

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  % CHG 3M Net EPS  % CHG
International Business Machines Corp 125 9.14 3 0 -0.43% 1.27%
Starbucks Corp 52 9.00 -9 -23 1.68% -1.76%
Microsoft Corp 207 8.86 26 24 0.52% 6.20%
Medtronic PLC 12 8.57 1 -9 0.01% -0.14%
Alphabet Inc 87 8.00 -24 -24 4.69% 4.04%

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 8.51 35.71% 11.31 62.7% 1.33 88.1% 0.72 52.38% 2.57 64.29%
QQQ 14.04 50.4% 14.75 41.87% 1.05 40.67% 0.77 53.57% 1.8 52.78%
IWM 11.28 16.27% 12.88 11.9% 1.14 74.8% -0.8 18.65% 1.43 35.32%
FEZ 13.03 61.11% 14.24 66.27% 1.09 49.21% -3.48 12.7% -2.35 11.9%
EEM 17.2 67.06% 18 69.84% 1.05 46.43% -1.58 24.6% 0.02 36.51%

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
TJX COMPANIES INC TJX Consumer Discretionary Specialty Retail 4.62% 5.66% 34.06%
NEXSTAR MEDIA GROUP NXST Consumer Discretionary Media 2.8% 6.47% 7.14%
MARRIOTT VACATIONS WORLDWIDE VAC Consumer Discretionary Hotels, Restaurants & Leisure 2.45% 6.2% -6.98%
LIGAND PHARMACEUTICAL INC LGND Health Care Biotechnology 1.91% -1.99% 56.62%
BROADCOM INC AVGO Information Technology Semiconductors & Semiconductor Equipment 1.82% 1.54% -22.4%

 

LOSERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
MCCORMICK & CO INC MKC Consumer Staples Food Products -2.13% 1.46% 21.11%
KELLOGG CO K Consumer Staples Food Products -2.06% 0.99% 7.7%
CHURCH & DWIGHT INC CHD Consumer Staples Household Products -1.47% 2.39% 15.18%
PUBLIC SERVICE ENTRP GRP INC PEG Utilities Multi-Utilities -1.47% 1.43% 5.27%
CME GROUP INC CME Financials Capital Markets -1.38% 0.63% 15.3%

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
SNAP INC SNAP Information Technology Software -2.5% -7.57% -26.76%
DYCOM INDUSTRIES INC DY Industrials Construction & Engineering -2.37% 4.58% -37.08%
ALLAKOS INC ALLK Health Care Biotechnology -2.08% -1.31% 23.55%
L BRANDS INC LB Consumer Discretionary Specialty Retail -1.71% -0.64% -58.1%
CREE INC CREE Information Technology Semiconductors & Semiconductor Equipment -1.41% -9.14% 18.26%

 

LOSERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
BLOOM ENERGY CORP-REDH BE Industrials Electrical Equipment 11.97% -0.95% 1.07%
CALIFORNIA RESOURCES CORP CRC Energy Oil, Gas & Consumable Fuels 7.13% 1.91% 49.21%
GULFPORT ENERGY CORP GPOR Energy Oil, Gas & Consumable Fuels 6.72% 4.85% -11.33%
FOCUS FINANCL PRTNR LLC-REDH FOCS Financials Capital Markets 6.17% -2.64% 4.56%
DISCOVERY INC DISCA Consumer Discretionary Media 5.67% 11.2% 24.58%

Source: S&P Capital IQ, StockDio

Cryptos

  • According to cryptocurrency exchange Bitfinex, short orders are nearing all-time highs.  At the moment, there are 39,542 short orders outstanding on Bitfinex, the second highest level since April 12, 2018. 
  • Bitcoin jumped 4% overnight after Hong Kong-based cryptocurrency futures exchange BitMEXmex shut down trading for a few hours for a regular maintenance update.  In aggregate, the total market capitalization of all cryptocurrencies jumped USD$12bn in over a hour.  Bitcoin commentators attribute the jump in Bitcoin to the fact that BitMEX permits traders to short Bitcoin on margin.  Some other Bitcoin observers, like Alex Kruger, believe the price behavior of Bitcoin affirms concerns about price manipulation and should lead the SEC to reject the ProShares Bitcoin ETF proposal this week.  Unlike the other Bitcoin ETF proposals, the ProShares Bitcoin ETF propose to own CME and CBOE Bitcoin futures. 
  • Coinbase releases 5 core principles to help guide its release of a suite of institutional crypto products: "fair and orderly" markets, enforcing transparent market rules, offering "fair access to all market participants," disclosing listing practices and market rules publicly, and safeguarding clients "with institutional-grade infrastructure and processes." 
  • The National Research Council of Canada (NRC) announced the release of a blockchain explorer on the Ethereum network.  The Industrial Research Assistance Program (IRAP) is now hosting the explorer on the InterPlanetary File System (IPFS) with help from Bitaccess, a blockchain startup. 
  • The Central Bank of Thailand is exploring the possibility of launching its own digital currency and expects to release phase 1 of the proof of concept by March 2019. The Central Bank-backed digital currency will be on distributed ledger technology developed by R3.  In addition to R3 as a technology partner, the Thai Central Bank is also partnering with  Bangkok Bank Public, Krung Thai, Siam Commercial Bank, Standard Chartered Bank (Thailand) and HSBC to bring the digital monetary currency to market. 

Cryptocurrencies Today

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

Events Calendar

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Company Name Ticker Event Date Event Type Q-Factor Score
Analog Devices, Inc. ADI 8/22/2018 Earnings Release Date US Large-Cap: B, US Information Technology: A
Bitauto Holdings Limited BITA 8/22/2018 Earnings Release Date China All-Cap: F
Williams-Sonoma, Inc. WSM 8/22/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
Synopsys, Inc. SNPS 8/22/2018 Earnings Release Date US Large-Cap: B, US Information Technology: C
The Hain Celestial Group, Inc. HAIN 8/22/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Staples: D
Autodesk, Inc. ADSK 8/22/2018 Estimated Earnings Release Date US Large-Cap: D, US Information Technology: C
Sanderson Farms, Inc. SAFM 8/22/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Staples: C
The Children's Place, Inc. PLCE 8/23/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
Alibaba Group Holding Limited BABA 8/23/2018 Earnings Release Date China All-Cap: A
Hormel Foods Corporation HRL 8/23/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: B
The Toro Company TTC 8/23/2018 Earnings Release Date US Large-Cap: B, US Industrials: C
Intuit Inc. INTU 8/23/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Ross Stores, Inc. ROST 8/23/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: A
HP Inc. HPQ 8/23/2018 Earnings Release Date US Large-Cap: A, US Information Technology: A
The Gap, Inc. GPS 8/23/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Veeva Systems Inc. VEEV 8/23/2018 Earnings Release Date US Large-Cap: C
Splunk Inc. SPLK 8/23/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
VMware, Inc. VMW 8/23/2018 Earnings Release Date US Large-Cap: C, US Information Technology: D

Source: S&P Capital IQ