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Global Stocks Are Flat This Morning As Investors Process Fed Meeting Minutes

Aug 23, 2018

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US Stocks

  • Global stocks are flat this AM ahead of the Jackson Hole Economic Summit, and yesterday's Fed minutes expecting above trend line economic growth with a bias to gradually increasing the Fed Funds rate.
  • US stocks index futures are pointing to a neutral open in NY with the Dow Jones minis +0.3%, S&P500 minis +0.04% and Nasdaq 100 minis –0.03% 
  • The released minutes of the most recent Fed policy meeting points to a bias on the committee to raise rates if the economy stays healthy 
  • The US and China have formally implemented 25% tariffs on USD$16bn worth of goods imported from each other.  The tariffs are kicking in as the US and China restart trade talks in Washington this week. 
  • The VIX is little changed this morning and is currently at 12.13 after closing at 12.25 yesterday 
  • Qualcom (QCOM) OTM August 31 Calls & Puts, XpresSpa Group (XSP) August 24 & October 2018 OTM Puts, SPY August 24 OTM Calls, HYG October 2018 OTM Puts, and SPY March 2019 OTM Puts are the most heavily traded options contracts in the US pre-market 
  • US 10-Year Treasury Bonds are lower with yields up 0.36 basis points to 2.8225%
  • The US Treasury 2s-10s Spread has narrowed 0.47 basis points to 0.22%
  • WTI Crude is currently up 2.54% to USD$69.06/bbl with the Brent-WTI spread down USD$-2.63 to USD$5.15/bbl
  • Gold is currently down -0.47% to USD$1190.21/oz

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • Alibaba (BABA) posted F1Q2019 EPS that came in softly above expectations ($1.22 vs $1.22 consensus). Net profit in F1Q2019 was also more robust than estimated (USD$1.26bn vs USD$1.18bn projected). Alibaba's revenues also grew 61% an a Y/Y basis. Alibaba stock is down 0.20% to $177.50 before the open today. Alibaba is rated as ‘Attractive’ in our China All-Cap Global Top Picks. 
  • China Life Insurance (SEHK: 2628) reported C1H2018 net income of CNY16.42bn.  China Life closed down 0.64% in Hong Kong trading.  The stock is rated as ‘Neutral’ in our China All-Cap Global Top Picks. 
  • Goldman Sachs (GS) has agreed to a deal with Korea’s national Pension service, under which Goldman will sell and lease back its London headquarters. The deal is valued at USD$1.5bn. Shares of Goldman Sachs are down 0.38% to $238.43 pre-market. Goldman Sachs is rated as ‘Attractive’ in our US Large-Cap Global Top Picks. 
  • Huazhu Group (HTHT,ADR) reported F2Q2018 earnings per ADR of $0.28, beating estimates of $0.22 in earnings per ADR. Revenue for F2Q2018 also came in stronger than anticipated (USD$381mm vs USD$363.0mm projected). Shares of Huazhu Group are up 2.33% to $33.85 pre-market. Huazhu Group is rated as a ‘Top Buy’ in our China All-Cap Global Top Picks.
  • L Brands (LB) announced F2Q2019 EPS that was higher than forecasted ($0.36 vs $0.35 consensus), and same store sales growth that was stronger than anticipated (+3.0% Y/Y vs +2.6% Y/Y estimated). However, L Brands provided F3Q2019 EPS guidance that was below the consensus. Shares of L Brands are down 5.66% to $30.65 pre-market. L Brands is rated as a ‘Top-Short’ in our US Large-Cap model and as ‘Unattractive’ in our US Consumer Discretionary Global Top Picks. 
  • Saudi Aramco’s prospective IPO is still on track, after Saudi Arabia’s energy minister Khalid Al Falih denied reports that the government planned to halt the public listing of the company. Khalid reamkred that the timing of the company’s IPO will “depend on multiple factors, including favorable market conditions.” 
  • Stage Stores (SSI) reported C2Q2018 adjusted EPS of -$0.60 but boosted FY2018 sales outlook to USD$1.61bn to USD$1.64bn.  The stock is not trading in pre-market this AM.  Stage Stores is rated as ‘Attractive’ in our US SMID-Cap Global Top Picks. 

European Stocks

  • European stocks are edging up for the fourth day in a row with stocks sectors insulated from a US-China trade war boosting European indices 
  • Technology (+0.84%), Oil & Gas (+0.5%), and Food & Beverage (+0.32%) 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 1.34x
  • 66 stocks in the Euro Stoxx 600 are at 4-week highs while 39 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 13.66 after closing at 13.85 last week
  • EUR€ is currently down -0.164% against the USD$ to 1.1578
  • GBP£ is currently down -0.155% against the USD$ to 1.2891
  • CHF is currently little changed against the USD$ at 1.0175
  • German 10-Year Bunds are lower with yields up 0.1 basis points to 0.345%
  • UK 10-Year GILTs are lower with yields up 0.3 basis points to 1.275%

Asian Stocks

  • Asian stocks finished their trading sessions down, snapping  a 4-day winning streak following signs that the US Fed is ready to raise rates again 
  • The Nikkei 225 finished up +0.22%, the Hang Seng ended down -0.49%, the Hang Seng China Enterprise declined -0.33%, and the CSI 300 was +0.36%
  • Oil & Coal Products (+1.59%), Retail Trade (+1.1%), and Services (+1.09%) stocks were the top performers among Japanese stocks today
  • Rubber Products (-1.95%), Transportation Equipment (-1.8%), and Marine Transportation (-1.38%) 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 0.8x
  • 17 stocks in the Nikkei 225 hit 4-week highs while 14 stocks reached 4-week lows
  • 6 stocks in the Nikkei 225 closed overbought while 4 stocks closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished negative with the advance/decline ratio for the Hang Seng closing at 0.28x
  • 1 stock in the Hang Seng hit 4-week highs while 5 stocks reached 4-week lows
  • 0 stocks 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 0.1 basis points to 0.1%
  • JGBs 2s-10s Spread has widened 0.1 basis points to 0.22%
  • JPY¥ is currently up 0.19% against the USD$ to 110.77

*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 EPS % CHG 3M EPS % CHG
Alphabet Inc 634 8.43 -24 -24 4.69% 4.04%
Microsoft Corp 293 8.29 26 24 0.52% 6.20%
Bank of America Corp 284 2.29 1 -4 0.21% 0.27%
Walmart Inc 258 7.29 8 5 0.89% 0.53%
Wells Fargo & Co 251 6.57 -4 -9 -1.73% -0.79%

Note: Please see our General FAQs to learn how we define and measure News Volume
Source: S&P Capital IQ, Quandl

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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 EPS % CHG 3M EPS % CHG
Medtronic PLC 50 9.29 1 -9 1.08% 0.93%
Starbucks Corp 60 8.71 -9 -23 1.75% -1.69%
International Business Machines Corp 124 8.57 3 0 -0.43% 1.27%
Alphabet Inc 634 8.43 -24 -24 4.69% 4.04%
Microsoft Corp 293 8.29 26 24 0.52% 6.20%

Note: Please see our General FAQs to learn how we define and measure News Buzz
Source: S&P Capital IQ, Quandl

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 8.7 39.68% 10.64 42.46% 1.22 61.71% 1.42 63.1% 2.27 56.75%
QQQ 13.34 40.08% 15.86 61.9% 1.19 86.71% 0.98 54.76% 2.95 71.23%
IWM 10.49 4.96% 12.92 12.3% 1.23 93.65% -1.57 16.27% 1.48 36.11%
FEZ 13.11 62.3% 14.53 71.03% 1.11 54.37% -3.18 13.89% -0.41 33.93%
EEM 17.31 68.65% 18.46 73.41% 1.07 53.57% -0.68 32.34% 0.98 44.44%

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

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
HENRY (JACK) & ASSOCIATES JKHY Information Technology IT Services 7.48% 8.32% 29.63%
ADOBE SYSTEMS INC ADBE Information Technology Software 1.59% 1.98% 36.33%
DOMINO'S PIZZA INC DPZ Consumer Discretionary Hotels, Restaurants & Leisure 1.44% 2.55% 44.88%
FORTINET INC FTNT Information Technology Software 1.44% 1.95% 56.1%
ABBOTT LABORATORIES ABT Health Care Health Care Equipment & Supplies 1.41% 3.41% 12.45%

 

LOSERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
BROADCOM INC AVGO Information Technology Semiconductors & Semiconductor Equipment -1.42% 0.46% -23.82%
VERIZON COMMUNICATIONS INC VZ Telecommunication Services Diversified Telecommunication Services -1.41% 1.68% 4.67%
DTE ENERGY CO DTE Utilities Multi-Utilities -1.33% -0.93% 4.3%
SHERWIN-WILLIAMS CO SHW Materials Chemicals -1.29% 0.3% 6.59%
AMERICAN ELECTRIC POWER CO AEP Utilities Electric Utilities -1.28% -1.45% 0.44%

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
FINISAR CORP FNSR Information Technology Communications Equipment -4.97% 0.97% -12.77%
AMERICAN AIRLINES GROUP INC AAL Industrials Airlines -2.87% 4.57% -29.47%
ALTICE USA INC ATUS Consumer Discretionary Media -2.72% 4.51% -5.73%
ESPERION THERAPEUTICS INC ESPR Health Care Biotechnology -1.7% 5.23% -31.71%
DISCOVERY INC DISCA Consumer Discretionary Media -1.64% 10.93% 22.94%

 

LOSERS TICKER SECTOR INDUSTRY 1 DAY RETURN 5 DAY RETURN YTD
EXACT SCIENCES CORP EXAS Health Care Biotechnology 26.63% 30.21% 23.21%
BLOOM ENERGY CORP-REDH BE Industrials Electrical Equipment 6.62% 16.43% 7.7%
CALIFORNIA RESOURCES CORP CRC Energy Oil, Gas & Consumable Fuels 5.79% 18.87% 55.01%
TANDEM DIABETES CARE INC TNDM Health Care Health Care Equipment & Supplies 5.71% 14.12% 270.65%
IMMUNOMEDICS INC IMMU Health Care Biotechnology 5.4% 5.08% 36.05%

Source: S&P Capital IQ, StockDio

Cryptos

  • An article on CoinDesk.com this AM discusses the trend where ICOs promise to destroy redeemed tokens, to help boost the value of new cryptocurrencies.  The thinking is pretty simple: after raising capital using token, entrepreneurs may eventually buy back the tokens from investors in the future.  If the tokens are destroyed after being redeemed, the contraction in supply will boost the value of the existing tokens.  This demand/supply dynamic is exciting potential investors in ICOs. 
  • Dash is seeing wider adoption in emerging markets with its reputation for being regulatory-friendly and privacy features.  In addition to providing startup capital to emerging markets, the Dash project is offering support for entrepreneurs, starting with their first transaction and wallet all the way to launching a dash-oriented business.  
  • The commissioner of the Financial Services Agency (FSA) in Japan, the financial regulator in the country, would like to see the cryptocurrency industry to continue to grow but under “appropriate regulation”.  The FSA needs to find a balance between consumer protection and innovation according Toshihide Endo, the commissioner of the FSA. 
  • The SEC has rejected 9 applications for Bitcoin ETFs, including the proposal from ProShares.  The agency cited concerns about price manipulation as a reason for the rejection.   

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
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
Ubiquiti Networks, Inc. UBNT 8/24/2018 Earnings Release Date US Large-Cap: F, US Information Technology: D
Foot Locker, Inc. FL 8/24/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: D
Country Garden Holdings Company Limited SEHK:2007 8/24/2018 Estimated Earnings Release Date China All-Cap: A

Source: S&P Capital IQ