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Global Stocks grinding higher with the US and Canada pursuing NAFTA negotiations ahead of Friday deadline

Aug 29, 2018

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US Stocks

  • Global stocks are grinding higher as investors continue to digest news that the US and Mexico have agreed in principle to changes to NAFTA while the US and Canada continue to negotiate ahead of a Friday deadline for a deal
  • Canadian newspaper Globe & Mail is reporting that Canada is willing to make concessions to its position on the domestic dairy market in exchanges for concessions from the United States on other trade issues
  • US stocks index futures are pointing to a positive open in NY with the Dow Jones minis -0.02%%, S&P500 minis +0.02% and Nasdaq 100 minis +0.15%
  • The VIX is little changed this morning and is currently at 12.31 after closing at 12.5 yesterday
  • General Electric (GE) September 21 OTM Puts, QQQ September 28 & December 2017 OTM Puts, Advanced Micro Devices (AMD) August 31 Calls & Puts, and Apple (AAPL) August 31 OTM Calls are the most heavily traded options contracts in the US pre-market
  • US 10-Year Treasury Bonds are higher with yields down -0.91 basis points to 2.8713%
  • The US Treasury 2s-10s Spread has narrowed 0.5 basis points to 0.21%
  • Global oil prices are unchanged as sanctions against Iran have begun to materially impact global supply -- Iran's exports of crude oil and condensate products are expected to drop to 70mm/bbl in August, the lowest level since April 2017, ahead of the November 4th implementation date for a second round of U.S. economic sanctions
  • WTI Crude is currently down -0.49% to USD$68.53/bbl with the Brent-WTI spread up USD$0.78 to USD$7.25/bbl
  • Gold is currently little changed 0.1% to USD$1202.25/oz

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • Amazon (AMZN) and Google parent Alphabet (GOOGL) were both upgraded by Morgan Stanley yesterday.  Amazon's expanding margins were highlighted while Alphabet’s high margin business and ability to invest heavily were noted.  Amazon is rated ‘Attractive’ in our US Large-Cap model and ‘Top Buy’ in our US Consumer Discretionary model.
  • Amazon (AMZN) is reportedly holding talks with Sony and other studios about creating original content for its Prime streaming service.  
  • Ballard Power System (BLDP) announced a strategic collaboration with Weichai Power.  Weichai will invest US$163mn to acquire a 19.9% interest in the company paying a 15% premium.  
  • Facebook (FB) announced it will commit to cutting its greenhouse gas emissions by 75% and have its operation powered by 100% renewable energy by 2020.  Facebook is rated ‘Neutral in our US Large-Cap model and ‘Attractive’ in our US Information Technology model.
  • Pernod Richard (RI FP) announced FY2018 EPS of 5.69 euros with sales of 8.99bn euros.  Organic sales growth was 6% and company guidance calls for 5-7% organic growth in 2019.  Pernod Richard is rated ‘Neutral’ in our European Large-Cap model.
  • Tailored Brands (TLRD) announced both its CEO and COO are stepping down, with the CEO retiring and the COO moving on to other opportunities.  Guidance was also updated to EPS of US$1.05-1.07 for 2Q while consensus is US$1.02.  Tailored Brands is rated ‘Unattractive’ in both our US Large-Cap model and ‘Neutral’ in our US Consumer Discretionary model.
  • Tesla (TSLA) will share the electric car spotlight soon with Chinese electric vehicle manufacturer NIO.  NIO plans an IPO in the US on the NYSE seeking to sell as much as US$1.32bn in stock valuing the company at US$8.5bn.  Telsa is rated ‘Unattractive’ in both our US Large-Cap and US Consumer Discretionary models.

European Stocks

  • European stocks are flat, off their earlier AM highs as investor concerns shift from US-Mexico-Canda trade negotiations to US-EU trade discussions
  • There is growing worry among European investors that the US success renogiating NAFTA will give it leverage in negotiations with officials in Brussells  
  • Real Estate (+0.69%), Construction & Materials (+0.51%), and Media (+0.37%) stocks are the top performers in the Euro Stoxx 600 today
  • European retailers are negative following news Morgan Stanley cuts its outlook for Inditex (BME: ITX)
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.56x
  • 155 stocks in the Euro Stoxx 600 are at 4-week highs while 31 stocks are at 4-week lows
  • 37 stocks in the Euro Stoxx 600 are overbought while 9 stocks are oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, is little changed this morning and is currently at 13.27 after closing at 13.16 yesterday
  • EUR€ is currently down -0.342% against the USD$ to 1.1655
  • GBP£ is currently little changed against the USD$ at 1.2885
  • CHF is currently little changed against the USD$ at 1.0233
  • German 10-Year Bunds are lower with yields up 0.9 basis points to 0.389%
  • UK 10-Year GILTs are lower with yields up 0.8 basis points to 1.46%

Asian Stocks

  • Asian stocks finished their trading sessions mixed as investors in the region continue to react positively to news that the US, Mexico and Canada are close to reaching to a compromise on trade
  • The Nikkei 225 finished up +0.15%, the Hang Seng ended up +0.23%, the Hang Seng China Enterprise declined -0.13%, and the CSI 300 was -0.4%
  • Worries about a deceleration in GDP growth weighed on domestic Chinese stocks
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 2.75x
  • 47 stocks in the Nikkei 225 hit 4-week highs while 4 stocks reached 4-week lows
  • 8 stocks in the Nikkei 225 closed overbought while 3 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 2.33x
  • Japan 10-Year Government Bonds are lower with yields up 0.5 basis points to 0.103%
  • JGBs 2s-10s Spread has widened 0.5 basis points to 0.21%

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

Stock Sentiment

Top Stocks by 7-day News Volume

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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 2907 8.71 -3 -25 0.07% 3.83%
Netflix Inc 1066 8.57 -3 -25 -2.07% 1.70%
Microsoft Corp 942 6.86 2 25 0.13% 6.22%
Morgan Stanley 941 9.14 1 4 0.00% -0.14%
Goldman Sachs Group Inc 763 9.29 2 9 0.00% 7.05%

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

Top Stocks by 7-Day Average News Buzz

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Name 7 Day News
Volume
7 Day Average
News Buzz
1M EPS Net
Revisions
3M EPS Net
Revisions
1M EPS
% Chg
3M EPS
% Chg
Schlumberger Ltd 153 9.86 0 -15 0.00% -6.85%
General Electric Co 61 9.71 1 2 -24.04% -24.95%
Starbucks Corp 264 9.71 -11 -23 0.07% -1.76%
Wells Fargo & Co 696 9.57 -4 -10 -1.65% -0.79%
Gilead Sciences Inc 27 9.57 12 10 -0.24% 2.56%

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 8.99 47.22% 10.79 46.83% 1.2 56.55% 2.11 76.39% 2.98 71.83%
QQQ 12.73 34.13% 14.81 43.25% 1.16 79.17% 3.76 80.16% 2.16 56.75%
IWM 11.68 23.61% 12.87 13.1% 1.1 56.75% 2.75 65.48% 2.03 42.46%
FEZ 12.84 57.54% 13.45 45.44% 1.05 35.32% -4.62 10.32% -1.15 25.99%
EEM 17.42 68.25% 17.99 68.06% 1.03 36.11% -2.9 13.49% 0 36.9%

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 1D Return 5D Return YTD
PG&E CORP PCG Utilities Electric Utilities 4.62% 2.15% 2.62%
MSCI INC MSCI Financials Capital Markets 1.26% 2.06% 33.59%
BLACKBAUD INC BLKB Information Technology Software 1.25% 4.69% 9.09%
RAYMOND JAMES FINANCIAL CORP RJF Financials Capital Markets 1.08% 2.73% 6.15%
MARRIOTT VACATIONS WORLDWIDE VAC Consumer Discretionary Hotels, Restaurants & Leisure 1.08% -1.31% -8.28%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
NEXSTAR MEDIA GROUP NXST Consumer Discretionary Media -1.65% -0.55% 6.59%
FISERV INC FISV Information Technology IT Services -1.61% -1.27% 18.52%
FLEETCOR TECHNOLOGIES INC FLT Information Technology IT Services -1.29% 0.27% 11.09%
PUBLIC SERVICE ENTRP GRP INC PEG Utilities Multi-Utilities -1.27% -1.91% 3.36%
VULCAN MATERIALS CO VMC Materials Construction Materials -1.23% 0.38% -15.47%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
SNAP INC SNAP Information Technology Software -4.5% -1.32% -28.08%
CREE INC CREE Information Technology Semiconductors & Semiconductor Equipment -4.15% -0.92% 17.34%
LAREDO PETROLEUM INC LPI Energy Oil, Gas & Consumable Fuels -3.12% -1.69% -29.98%
CHESAPEAKE ENERGY CORP CHK Energy Oil, Gas & Consumable Fuels -2.89% -2.89% 7.74%
SOUTHWESTERN ENERGY CO SWN Energy Oil, Gas & Consumable Fuels -2.69% 0.18% -7.01%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
IMMUNOMEDICS INC IMMU Health Care Biotechnology 6.77% 15.36% 46.01%
EXACT SCIENCES CORP EXAS Health Care Biotechnology 3.98% 40.57% 37.15%
ARRAY BIOPHARMA INC ARRY Health Care Biotechnology 3.52% 8.24% 10.5%
BLOOM ENERGY CORP-REDH BE Industrials Electrical Equipment 2.95% 15.65% 16.72%
ALLAKOS INC ALLK Health Care Biotechnology 2.94% 1.31% 24.86%

Source: S&P Capital IQ, StockDio

Cryptos

  • Bitcoin’s hashrate, a measure of the computing power of the Bitcoin network, reached 62 quintillion hashes per second.  The increase in Bitcoin’s hashrate translates to a 40% gain for the month of August -- a 35% gain over the last two days alone.
  • A dispute among Bitcoin Cash stakeholders may lead to bitcoin cash to split into competing blockchain networks ahead of its scheduled hard fork in November.  Bitcoin ABC, the biggest Bitcoin Cash client, is clashing with nChain which announced a hard fork off the Bitcoin Cash network (called Bitcoin SV).  Bitcoin SV’s decision is opposition to Bitcoin ABC’s release of software changes to the existing Bitcoin Cash protocol.  Chain’s Bitcoin SV will increase block size from 32MB to 128MB and reinstate four “Satoshi opcodes” to bring Bitcoin Cash back closer to the original Bitcoin protocol.
  • A survey by Coinbase finds 18% of US college students own cryptocurrencies.  The survey was conducted nationwide and included 675 students.  Furthermore, the survey found that 42% of the top 50 universities have at least once class on either cryptocurrencies and/or blockchain technology.  Interest in cryptocurrencies isn’t limited to computer science students: 34% of computer science and engineering majors surveyed indicated interest while 47% of social science majors expressed interest digital currencies.
  • Lloyd’s of London, the UK insurance giant, has begun offering insurance against the theft of cryptocurrencies.  Lloyd’s is offering coverage to Kingdom Trust, a qualified custodian of some 30 cryptocurrencies and tokens.

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
Brown-Forman Corporation BF.B 8/29/2018 Earnings Release Date US Large-Cap: D, US Consumer Staples: C
Guess, Inc. GES 8/29/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: B
salesforce.com, inc. CRM 8/29/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
PVH Corp. PVH 8/29/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: B
Dollar Tree, Inc. DLTR 8/29/2018 Estimated Earnings Release Date US Large-Cap: A, US Consumer Discretionary: B
Tech Data Corporation TECD 8/29/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: A
Abercrombie & Fitch Co. ANF 8/30/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: B
Ciena Corporation CIEN 8/30/2018 Earnings Release Date US Large-Cap: C, US Information Technology: D
Burlington Stores, Inc. BURL 8/30/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: A
Campbell Soup Company CPB 8/30/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: B
Patterson Companies, Inc. PDCO 8/30/2018 Earnings Release Date US Large-Cap: C
The Michaels Companies, Inc. MIK 8/30/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: D
Dollar General Corporation DG 8/30/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: A
Lululemon Athletica Inc. LULU 8/30/2018 Earnings Release Date US Large-Cap: B
The Cooper Companies, Inc. COO 8/30/2018 Earnings Release Date US Large-Cap: C

Source: S&P Capital IQ