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Morning Brief

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Global Stocks in the red heading into Labor Day weekend holiday

Aug 31, 2018

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US Stocks

  • US stocks index futures are pointing to a negative open in NY with the Dow Jones minis -0.14%, S&P500 minis –0.11% and Nasdaq 100 minis –0.04% 
  • Bloomberg News is reporting that US President Trump is prepared to ratchet up pressure on China on trade – reportedly, he is prepared to institute tarrifs on an additional USD$200bn of goods imported from China as soon as the public comment period ends next week 
  • Emerging markets currencies are in a freefall with the ARS, BRL, INR and TRY falling this AM 
  • The VIX is little changed this morning and is currently at 13.33 after closing at 13.53 yesterday
  • Weatherford International (WFT) September 21 OTM Puts, Apple (AAPL) August 31 OTM Calls, SPY August 31 OTM Call, and Electronics Arts (EA) Janury 2019 OTM Calls & March 2017 OTM Puts are the most heavily traded options contracts in the US pre-market
  • US 10-Year Treasury Bonds are higher with yields down -1.1 basis points to 2.844%
  • The US Treasury 2s-10s Spread has narrowed 0.29 basis points to 0.2%
  • WTI Crude is currently up 1.06% to USD$70.25/bbl with the Brent-WTI spread down USD$-1.19 to USD$6.75/bbl
  • Gold is currently up 0.57% to USD$1206.86/oz
  • Global oil prices are trading with a negative bias as worries about a contraction in global trade is weighing on investor sentiment 

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • Amazon (AMZN), Facebook (FB) and Google (GOOGL) may be in a “very antitrust situation’ according to President Trump as he continues to criticize tech firms.  He said he can’t comment on whether they should be broken up but most know his opinions on that.  Amazon is rated ‘Attractive’ in our US Large-Cap Global Top Picks and ‘Top Buy’ in our US Consumer Discretionary Global Top Picks.  Facebook is rated ‘Neutral’ in our US Large-Cap Global Top Picks and ‘Attractive’ in our US Information Technology Global Top Picks.  Alphabet (Google) is rated ‘Neutral’ in our US Large-Cap Global Top Picks and ‘Neutral’ in our US Information Technology Global Top Picks.  
  • Coca-Cola (KO) announced the acquisition of UK-based coffee shop chain Costa for US$5.1bn in its first acquisition of a global coffee brand.  Costa has 3,800 stores in 32 countries and is part of an effort to diversity away from sugary drinks where demand is soft.  Coca-Cola is rated ‘Neutral’ in our US Large-Cap Global Top Picks and ‘Neutral’ in our US Consumer Staples Global Top Picks.
  • Lufthansa (LHA GR) saw its stock downgraded 2 notches by Citibank from Buy to Sell with its price target cut to EU19.90 from EU32.50.  The report highlights a squeeze by middle eastern airlines as well as low cost carriers.  Lufthansa is rated ‘Neutral’ in our European SMID-Cap Global Top Picks.
  • Lululemon Athletica (LULU) announced quarterly earnings post-market Thursday, reporting EPS of USD$0.71 per share compared to analyst expectations of $0.49. Lululemon also surpassed revenue expectations, reporting quarterly revenue of USD$723.5 million compared consensus forecasts of USD$668 million. Shares of Lululemon are up  10.36% in pre-market trading. Lululemon is rated as ‘neutral’ is our US Large-Cap Global Top Picks
  • PetroChina (857 HK) hiked its dividend to 0.0888 yuan per share yesterday on the strength of crude prices, with shares closing at USD$74.73 Thursday.  Analysts highlight that this increase will only use about one third of its free cash flow so there could be room for further hikes.  PetroChina (857 HK) is rated ‘Top Buy’ in our China All-Cap Global Top PIcks.
  • SAS (SAS OM) reported 3Q adjusted ebitda SEK2.11bn was 14% ahead of market consensus.  Management also raised FY2018 guidance with pretax profit expected to be SEK2bn, up from SEK1.5bn. SAS shares closed down -3.17% to USD$0.061/share.  SAS is rated ‘Neutral’ in our European SMID-Cap Global Top Picks
  • Sunac China Holdings (1918 HK) reported a surge in profit reporting 6.36bn yuan net profit, more than triple a year before.  This comes in the wake of 3 years of acquisitions and are now in the “harvest season” according to a Deutsche Bank report. Sunac shares ended Thursday flat, closing at $25.70/share. Sunac is rated ‘Neutral’ in our China All-Cap Global Top Picks.
  • Tencent (700 HK) suffered on China’s announcement of new edicts on health and behavior of children that included limits on playing video games.  These come after months of a freeze in new game approvals.  Tencent shares fell -6.97% and closed at USD$42.98 on Thursday.  Tencent is rated ‘Top Buy’ in our China All-Cap Global Top PIcks
  • Vonovia (VNA GR) saw 1H18 FFO rise 11.5% to EU530.1mn.  Guidance for FY2018 FFO was raised EU20mn and is now EU1.05-1.07bn, reflecting the addition of Victoria Park.  Vinovia is rated ‘Attarctive’ in our European SMID-Cap Global Top Picks

European Stocks

  • European stocks opened the last day of trading this week in the red after US President Trump cast doubt on the current trade negotiations between the US and EU
  • Travel & Leisure (+0.42%), Media (-0.22%), and Insurance (-0.28%) stocks are the top performers in the Euro Stoxx 600 today
  • Personal & Household Goods (-1.23%), Automobiles & Parts (-1.19%), and Industrial Goods & Services (-0.88%) stocks are the worst performers in the Euro Stoxx 600 today
  • Bank of America Merrill Lynch strategists report that European equity funds saw outflows of USD$200mm, the 25th straight week of net redemptions 
  • A Reuters poll of 30 brokers, fund managers and analysts finds that the majority of those polled don’t expect the Euro Stoxx 600 to reach the highs touched in January 2018
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.35x
  • 72 stocks in the Euro Stoxx 600 are at 4-week highs while 72 stocks are at 4-week lows
  • 39 stocks in the Euro Stoxx 600 are overbought while 22 stocks are oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, is moving up this morning and is currently at 15.35 after closing at 14.15 yesterday
  • German 10-Year Bunds are higher with yields down -0.1 basis points to 0.345%
  • UK 10-Year GILTs are higher with yields down -0.5 basis points to 1.45%

Asian Stocks

  • Asian stocks finished their trading sessions negative following comments by US President Trump that he is ready to increase pressure on China in their trade negotiations 
  • The Nikkei 225 finished down --0.02%, the Hang Seng ended down -0.98%, the Hang Seng China Enterprise declined -0.84%, and the CSI 300 was -0.5%
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.48x
  • 54 stocks in the Nikkei 225 hit 4-week highs while 6 stocks reached 4-week lows
  • 9 stocks in the Nikkei 225 closed overbought while 1 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 0.43x
  • 8 stocks in the Hang Seng hit 4-week highs while 0 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure

*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 2558 8.29 -3 -25 0.07% 3.81%
Morgan Stanley 989 9.00 1 4 0.00% -0.14%
Netflix Inc 911 7.29 -3 -25 -2.07% 1.53%
Microsoft Corp 838 6.86 2 25 0.13% 6.22%
Goldman Sachs Group Inc 800 9.00 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 336 9.71 4 22 -0.05% 4.40%
General Electric Co 71 9.71 1 2 -1.81% -24.94%
Wells Fargo & Co 682 9.57 -4 -10 -1.64% -0.79%
American Express Co 152 9.57 0 0 0.32% 3.34%
Comcast Corp 104 9.43 1 3 -0.03% 3.80%

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 9.87 60.32% 11.42 63.49% 1.16 50.2% 2.81 85.91% 3.64 83.53%
QQQ 14.68 59.92% 15.65 56.94% 1.07 47.82% 5.94 95.24% 2.85 69.44%
IWM 12.25 36.51% 12.9 14.29% 1.05 28.77% 3.53 78.17% 2.18 47.22%
FEZ 14.2 69.44% 14.75 72.62% 1.04 32.14% -3.37 15.08% 0.11 42.46%
EEM 19.05 82.54% 19.3 82.14% 1.01 23.61% -2.67 15.87% 0.88 44.84%

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
EPAM SYSTEMS INC EPAM Information Technology IT Services 0.86% 2.95% 28.4%
KLX INC KLXI Industrials Aerospace & Defense 0.83% 1.36% 6.15%
NEXSTAR MEDIA GROUP NXST Consumer Discretionary Media 0.8% 0.74% 7.02%
BROADCOM INC AVGO Information Technology Semiconductors & Semiconductor Equipment 0.77% 5.24% -19.52%
DUKE ENERGY CORP DUK Utilities Electric Utilities 0.73% 0.54% 1.16%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
BLACKROCK INC BLK Financials Capital Markets -2.07% 1.02% -5.81%
JEFFERIES FINANCIAL GRP INC JEF Financials Diversified Financial Services -1.53% 0.94% -12.59%
MARTIN MARIETTA MATERIALS MLM Materials Construction Materials -1.49% 0.25% -9.45%
RAYMOND JAMES FINANCIAL CORP RJF Financials Capital Markets -1.35% 2.26% 4.96%
WALGREENS BOOTS ALLIANCE INC WBA Consumer Staples Food & Staples Retailing -1.26% -2.16% -8.21%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
HERTZ GLOBAL HOLDINGS INC HTZ Industrials Road & Rail -10.60% -10.35% -26.08%
SUPERIOR ENERGY SERVICES INC SPN Energy Energy Equipment & Services -8.16% -2.9% -9.76%
PATTERSON COMPANIES INC PDCO Health Care Health Care Providers & Services -5.14% -4.17% -48.94%
ALLAKOS INC ALLK Health Care Biotechnology -4.15% -1.39% 20.76%
AVALARA INC AVLR Information Technology Software -4.14% -7.27% -16.45%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
REGENXBIO INC RGNX Health Care Biotechnology 9.69% 10.14% 75.05%
SANGAMO THERAPEUTICS INC SGMO Health Care Biotechnology 7.73% 15.78% 3.36%
TANDEM DIABETES CARE INC TNDM Health Care Health Care Equipment & Supplies 7.35% 13.18% 285.32%
PUMA BIOTECHNOLOGY INC PBYI Health Care Biotechnology 5.26% 5.02% -74.58%
FOSSIL GROUP INC FOSL Consumer Discretionary Textiles, Apparel & Luxury Goods 4.2% -12.82% 99.22%

Source: S&P Capital IQ, StockDio

Cryptos

  • BitPay merchants can now receive payments in Bitcoin Cash and hold it.  Previously, merchants could accept Bitcoin Cash but would need to convert it to Bitcoin or fiat.  Now, if merchants are so inclined, they can keep the sales proceeds in Bitcoin Cash. 
  • CBOE Global Markets will support Ethereum futures by year-end according to Business Insider.  According to the report, CBOE management is waiting on the CFTC to give it the OK before announcing the project. 
  • Apple has asked Coinbase to remove the decentralized app (dapp) War Riders from its it iOS wallet.  Apple objected to highlighting a dapp that facilitates purchases of digital goods. 
  • Rakuten, the Japanese e-Commerce leader, announces the acquisition of the cryptocurrency exchange Everybody’s Bitcoin for USD$2.4mm.  The company hopes the acquisition will help it develop a digital currencies payments platform to help support its growing international business. 
  • A Trend Micro report titled “Unseen Threats, Imminent Losses” suggests cryptojacking is up 1,000% in the first 6-months of CY2018.  Cryptojacking refers to the unauthorized control of computer resources to mine cryptocurrencies.  According to the report, reported instances of cryptojacking doubled in CY2017.  

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
Big Lots, Inc. BIG 8/31/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Country Garden Holdings Company Limited SEHK:2007 8/31/2018 Estimated Earnings Release Date China All-Cap: A
Flat Glass Group Co., Ltd. SEHK:6865 8/31/2018 Estimated Earnings Release Date China All-Cap: C
Prada S.p.A SEHK:1913 8/31/2018 Estimated Earnings Release Date China All-Cap: C
JA Solar Holdings Co., Ltd. JASO 9/1/2018 Estimated Earnings Release Date China All-Cap: C
PICC Property and Casualty Company Limited SEHK:2328 9/1/2018 Estimated Earnings Release Date China All-Cap: C
Dah Sing Banking Group Limited SEHK:2356 9/1/2018 Estimated Earnings Release Date China All-Cap: C
Huayi Tencent Entertainment Company Limited SEHK:419 9/1/2018 Estimated Earnings Release Date China All-Cap: D
SmarTone Telecommunications Holdings Limited SEHK:315 9/2/2018 Earnings Release Date China All-Cap: C
China Gas Holdings Limited SEHK:384 9/2/2018 Estimated Earnings Release Date China All-Cap: A
Nameson Holdings Limited SEHK:1982 9/2/2018 Estimated Earnings Release Date China All-Cap: C
Café de Coral Holdings Limited SEHK:341 9/2/2018 Estimated Earnings Release Date China All-Cap: C
Zhongsheng Group Holdings Limited SEHK:881 9/3/2018 Estimated Earnings Release Date China All-Cap: A
CITIC Telecom International Holdings Limited SEHK:1883 9/3/2018 Estimated Earnings Release Date China All-Cap: B
HKBN Ltd. SEHK:1310 9/3/2018 Estimated Earnings Release Date China All-Cap: B
Vitasoy International Holdings Limited SEHK:345 9/3/2018 Estimated Earnings Release Date China All-Cap: A
Emperor Capital Group Limited SEHK:717 9/3/2018 Estimated Earnings Release Date China All-Cap: D
Smartsheet Inc. SMAR 9/3/2018 Earnings Release Date US Large-Cap: F
Casey's General Stores, Inc. CASY 9/3/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Staples: C
Skyworth Digital Holdings Limited SEHK:751 9/3/2018 Estimated Earnings Release Date China All-Cap: D

Source: S&P Capital IQ