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Global Stocks under pressure with the US and Canada pursuing NAFTA negotiations ahead of Friday deadline

Aug 30, 2018

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US Stocks

  • Global stocks are declining to start the morning as investors shift their focus back to the impact of US-China trade tensions and US-Canada trade negotiations ahead of Friday’s deadline 
  • US stocks index futures are pointing to a negative open in NY with the Dow Jones minis -0.26%, S&P500 minis –0.17% and Nasdaq 100 minis –0.19% 
  • Canadian Prime Minister Justin Trudeau is signaling that the US and Canada may reach an agreement on changes to NAFTA by Friday’s deadline if it is the “right deal” 
  • According to the 16-day RSI, the S&P500 has now entered overbought territory 
  • The VIX is little changed this morning and is currently at 12.36 after closing at 12.25 yesterday
  • US 10-Year Treasury Bonds are higher with yields down -0.91 basis points to 2.8749%
  • The US Treasury 2s-10s Spread has widened 0.1 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 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 up 1.43% to USD$69.51/bbl with the Brent-WTI spread down USD$-1.34 to USD$7.59/bbl
  • Gold is currently down -0.33% to USD$1202.57/oz

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • Cambell Soup (CPB) reported quarterly earnings post-market on Thursday, beating quarterly adjusted earnings per share expectations by 4.17%. Despite beating profit expectations, Cambell missed revenue expectations, reporting quarterly revenue of US$2.22 billion compared to expectations of US$2.24 billion. In pre-market trading, shares have fallen -3.73% to US$38.50/share. Cambell is rated ‘neutral’ in our US Large Cap Global Top Picks and ‘attractive’ in our US Consumer Staples Global Top Picks.
  • Hunting (HTN LN) reported 1H18 results well above expectations with revenue of US$442.8mn compared with US$423 expected.  An interim dividend of 4 cents per share has been reinstated.  Hunting Plc is rated ‘Unattractive’ in our United Kingdom All-Cap Global Top Picks
  • News Corp (NWSA) agreed to acquire Opcity for US$210mn.  Opcity is a technology platform that matches home buyers with real estate professionals and will be acquired by News Corp unit move.com. News Corp is rated ‘Attractive’ in our US SMID-Cap Global Top Picks and ‘Neutral’ in our US Consumer Discretionary Global Top Picks.
  • Salesforce.com (CRM) provided guidance that was below consensus.  Third quarter guidance on adjusted EPS were below expectations with a high of US$0.50, (US$0.53 expected) and expected sales as high as US$3.37bn, in line with consensus.  Salesforce.com is rated ‘Neutral’ in our US Large-Cap Global Top Picks and ‘Attarctive’ in our US Information Technology Global Top Picks
  • Taiwan Semiconductor (2330 TT) had its price target raised by Morgan Stanley to NT$260 from NT$229, a 14% hike.  Morgan sees a gain in market share from its 7-nanometer technology and raised its expectation for revenue by 5% for 2020.
  • Tencent (700 HK) and Square Enix (9684 JP) agreed to a strategic tie-up.  The deal will include a joint venture to develop new titles together as well as licensing of existing properties.  Tencent is rate ‘Top Buy’ in our China All-Cap Global Top Picks and Square Enix is not rated.
     

European Stocks

  • European stocks have opened negative this AM in sympathy with the sell-off in Asian markets and European analysts statements that Turkey may face a recession as the Lira falls further
  • EU Brexit Chief Negotiator Michel Barnier is still warning that there is still the possibility of a no-Brexit deal after his comments earlier in the week were interpreted to mean that a Brexit deal was imminent 
  • Politico.com has reported that the EU is willing to scrap car tariffs in a potential US-EU trade deal 
  • Construction & Materials (+0.36%), Financial Services (+0.03%), and Personal & Household Goods (-0.1%) stocks are the top performers in the Euro Stoxx 600 today
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.28x
  • 118 stocks in the Euro Stoxx 600 are at 4-week highs while 47 stocks are at 4-week lows
  • 50 stocks in the Euro Stoxx 600 are overbought while 14 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 13.82 after closing at 12.99 yesterday
  • German 10-Year Bunds are higher with yields down -1.3 basis points to 0.391%
  • UK 10-Year GILTs are higher with yields down -0.8 basis points to 1.481%

Asian Stocks

  • Asian stocks finished largely in the red following several days of gains as investors enthusiasm shifted to worries about the state of US-China trade tensions 
  • The Nikkei 225 finished up +0.09%, the Hang Seng ended down -0.89%, the Hang Seng China Enterprise declined -1.04%, and the CSI 300 was -1.05%
  • Stocks in China dropped for the 3rd straight day after the August Manufacturing PMI came in slightly weaker M/M, raising worries about the impact of continued US-China trade tensions on the Chinese economy 
  • Mining (+1.27%), Fishery Agriculture & Forestry (+1.16%), and Pulp And Paper (+1.05%) stocks were the top performers among Japanese stocks today
  • Investor sentiment for Hong Kong stocks finished negative with the advance/decline ratio for the Hang Seng closing at 0.16x
  • 6 stocks in the Hang Seng hit 4-week highs while 0 stocks reached 4-week lows
  • 1 stock in the Hang Seng closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure
  • Japan 2-Year Government Bonds are lower with yields up 0.2 basis points to -0.109%
  • Japan 10-Year Government Bonds are lower with yields up 0.8 basis points to 0.111%
  • JGBs 2s-10s Spread has widened 0.6 basis points to 0.22%
  • JPY¥ is currently down 0.17% against the USD$ to 111.49

*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 2677 8.142857 -3 -25 0.07% 3.81%
Netflix Inc 1056 8 -3 -25 2.07% 1.53%
Morgan Stanley 1016 9.428571 1 4 0.00% -0.14%
Microsoft Corp 957 7.285714 2 25 0.13% 6.22%
Goldman Sachs Group Inc 809 9.142857 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
Intel Corp 366 10 4 22 -0.05% 4.40%
Charter Communications Inc 17 10 15 15 9.46% 9.98%
Gilead Sciences Inc 32 10 12 10 -0.24% 2.57%
Merck & Co Inc 82 9.714286 4 2 0.47% 1.37%
General Electric Co 64 9.714286 1 2 -24.04% -24.95%

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 9.16 51.59% 10.6 42.26% 1.16 50.0% 2.26 78.17% 2.74 66.67%
QQQ 13.08 38.89% 15.44 53.17% 1.18 83.93% 3.57 78.57% 2.61 65.67%
IWM 11.56 22.22% 12.63 6.94% 1.09 52.18% 2.67 64.68% 1.84 40.87%
FEZ 13.14 62.3% 14.07 61.9% 1.07 40.48% -4.25 11.11% -0.54 33.73%
EEM 16.81 58.93% 17.71 63.1% 1.05 47.42% -3.44 10.71% -0.29 35.32%

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 2.66% 5.03% 5.28%
ADOBE SYSTEMS INC ADBE Information Technology Software 2.0% 4.9% 41.22%
FORTINET INC FTNT Information Technology Software 1.95% 5.98% 62.08%
BLACKBAUD INC BLKB Information Technology Software 1.92% 6.67% 11.0%
BROADRIDGE FINANCIAL SOLUTNS BR Information Technology IT Services 1.67% 1.96% 40.57%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
MARRIOTT VACATIONS WORLDWIDE VAC Consumer Discretionary Hotels, Restaurants & Leisure -2.39% -3.55% -10.67%
EAGLE MATERIALS INC EXP Materials Construction Materials -1.54% -2.83% -22.33%
INVESTORS BANCORP INC ISBC Financials Banks -1.41% -3.11% -6.8%
JEFFERIES FINANCIAL GRP INC JEF Financials Diversified Financial Services -1.3% 1.65% -11.06%
NORTHROP GRUMMAN CORP NOC Industrials Aerospace & Defense -1.1% 0.36% -1.62%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
FOSSIL GROUP INC FOSL Consumer Discretionary Textiles, Apparel & Luxury Goods -7.24% -15.5% 95.02%
ROKU INC ROKU Consumer Discretionary Household Durables -5.0% 0.38% 14.04%
GLOBAL BLOOD THERAPEUTICS GBT Health Care Biotechnology -3.04% -5.12% 15.45%
AVALARA INC AVLR Information Technology Software -2.31% -6.74% -12.31%
PENNEY (J C) CO JCP Consumer Discretionary Multiline Retail -2.29% -3.41% -70.46%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
CALIFORNIA RESOURCES CORP CRC Energy Oil, Gas & Consumable Fuels 6.32% 11.83% 66.83%
SANGAMO THERAPEUTICS INC SGMO Health Care Biotechnology 5.82% 5.51% -4.37%
DYCOM INDUSTRIES INC DY Industrials Construction & Engineering 4.56% 4.37% -31.84%
SYNAPTICS INC SYNA Information Technology Semiconductors & Semiconductor Equipment 4.41% 6.54% 15.46%
TENABLE HOLDINGS INC TENB Information Technology Software 3.87% 0.59% 10.95%

Source: S&P Capital IQ, StockDio

Cryptos

  • Ethereum co-founder Joe Lubin, during Yahoo FInance’s Final Round, stated that he questions accusations against Tether, the stable coin pegged to the USD$.  In Lubin’s opinion, market manipulation is less related to specific digital currencies and more a result of unregulated cryptocurrency exchanges. 
  • Spark, a new crypto wallet, is looking to facilitate the transfer of Bitcoin using a c-lightning overlay.  Users are permitted to us the Lightning Network to make transactions though the wallet completely off-chain. At the moment, Spark is compatible with the Electron app for Linux, Windows, and MacOs operating systems. Spark can also be used with the Android mobile devices and it expected to be rolled out to the Apple Apps store soon. 
  • Square, the payments processing company, has announced that has received approval from the US Patent & Trademark Office (USPTO) regarding a patent that will permit merchants to use a new payments system that will permit merchants to receive payments in digital currencies.  Square was an early adopter of Bitcoin and has permitted its users to make payments in the digital currency. 
  • Yahoo Finance has integrated Bitcoin, Ethereum and Litecoin trading on its online platform.  Bitcoin Cash, Ethereum Classic and EOS continue to offer statistics with no buying options.   

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
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
Ambarella, Inc. AMBA 8/30/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
Nutanix, Inc. NTNX 8/30/2018 Earnings Release Date US Large-Cap: F, US Information Technology: D
Zuora, Inc. ZUO 8/30/2018 Earnings Release Date US Large-Cap: F
Ulta Beauty, Inc. ULTA 8/30/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
Zayo Group Holdings, Inc. ZAYO 8/30/2018 Estimated Earnings Release Date US Large-Cap: D
The Hain Celestial Group, Inc. HAIN 8/30/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Staples: D

Source: S&P Capital IQ