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Global Stocks mixed as investor fears of contagion from emerging markets uneven

Sep 06, 2018

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US Stocks

  • Global stocks are mixed this AM, with US and European investors taking a break from worrying about contagion spreading across emerging markets 
  • US stocks index futures are pointing to a neutral open in NY with the Dow Jones minis +0.09%, S&P500 minis –0.01% and Nasdaq 100 minis –0.05% 
  • Emerging markets stocks, in aggregate, are nearing bear market territory after falling close to 20% since January 2018 
  • US President Trump’s comments yesterday about continuing trade tensions between the US and China sounded more conciliatory and is increasing sentiment that the two countries will be able to reach an agreement on trade 
  • The VIX is little changed this morning and is currently at 13.91 after closing at 13.91 yesterday
  • Apple (AAPL) September 07 OTM Calls, Advanced Micro Devices (AMD) September 07 OTM Calls, and EEM November 2018 OTM Puts are the most heavily traded options contracts in the US pre-market
  • US 10-Year Treasury Bonds are higher with yields down -0.37 basis points to 2.8985%
  • The US Treasury 2s-10s Spread has widened 0.04 basis points to 0.25%
  • The US Treasury 2s-10s Spread has widened 0.04 basis points to 0.25%
     

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • Apple (AAPL) will receive the first findings in Qualcomm’s (QCOM) case against them at the US International Trade Commission on September 28 and not the 14th as originally expected.  This is due to the retirement of the judge.  Apple is rated ‘Top Buy’ in our US Large-Cap Global Top Picks and ‘Attractive’ in our US Information Technology.  Qualcomm is rated ‘Neutral’ in our US Large-Cap Global Top Picks and ‘Neutral’ in our US Information Technology.
  • Citigroup (C) has announced new heads of its investment banking unit.  Tyler Dickson and Monolo Falco are to be promoted to run the revamped unit which will now include Capital Markets Origination as well.  The stock is not trading in pre-market this AM.  Citigroup is rated “Neutral” in our US Large-Cap Global Top Picks.
  • Centrica (CNA LN) rose on the price cap announcement by the government.  The announcement has been anticipated for some time.  The stock rose 5.1% to 150.80. Centrica is rated ‘Unattractive’ in our United Kingdom All-Cap Global Top Picks
  • Commerzbank AG (CBK: DB) is being replaced by Wirecard AG (WDI: DB) in the DAX.  Commerzbank has been part of the benchmark German stocks index since the inception of the DAX in 1988.  Commerzbank is down 1.221% to €9.74296 while Wirecard is +0.71% to €218.62345 this morning.  Commerzbank is rated “Unattractive” and Wirecard is rated “Top Buy” in our European Large-Cap Global Top Picks.  
  • Facebook (FB) co-founder Eduardo Saverin said he sees the government getting into the regulation of social media networks as political pressures mount.  Facebook is rated ‘Neutral’ in our US Large-Cap Global Top Picks and ‘Attractive’ in our US Information Technology.
  • Navistar  International (NAV) reports F3Q2018 results in-line with Consensus.  FY2018 guidance is well ahead of expectations with current estimates at the low-end of guidance that management just issued.  The stock is not trading in pre-market this morning.  Navistar is rated “Unattractive” in our US SMID-Cap Global Top Picks and “Neutral” in our US Industrials Global Top Picks. 
  • Nintendo (7974 JP) will delay its Nintendo Direct broadcast due to the Hokkaido earthquake.  The company said it will provide a new timeline soon.  Nintendo closed 3.6% lower at JPY 38,220. Nintendo is not rated in our Global Top Picks.
  • Novartis G (NOVN SW) will sell parts of its generic drug business to Aurobindo Pharma (ARBP IN) for US$900mn.  This will allow Aurobindo, a low-cost manufacturer, to gain access to the generic market in the US.  Novartis is up 0.08% at 79.50 euros, Aurobindo is up 9.3% at 761.95
  • Safran SA (SAF FP) jumped 6.1% to 115.75 euros after saying its business is booming.  The company is seeing strong demand for civil aircraft. Safran is rated ‘Neutral’ in our European Large-Cap Global Top Picks
  • Weir (WEIR LN) said it is seeing “considerable softening in demand for original equipment” in a meeting with investors.  The company is seeing initial signs of price pressures.  Weir is down 6.2% at GBP 1675.50.  Weir is rated ‘Neutral’ in our United Kingdom All-Cap Global Top Picks

European Stocks

  • European stocks are little  changed, off early morning lows in sympathy with US index futures 
  • The Euro Stoxx 600 is currently down -0.01%, the FTSE 100 is down -0.14%, the DAX has risen +0.06%, and the CAC 40 is up +0.2%
  • Construction & Materials (+0.82%), Utilities (+0.63%), and Industrial Goods & Services (+0.49%) stocks are the top performers in the Euro Stoxx 600 today
  • Travel & Leisure (-0.72%), Basic Resources (-0.67%), and Health Care (-0.35%) stocks are the worst performers in the Euro Stoxx 600 today
  • Investor sentiment for European stocks is neutral with the advance/decline ratio for the Euro Stoxx 600 currently at 1.11x
  • 16 stocks in the Euro Stoxx 600 are at 4-week highs while 195 stocks are at 4-week lows
  • 7 stocks in the Euro Stoxx 600 are overbought while 55 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 16.62 after closing at 17.29 last week
  • EUR€ is currently little changed against the USD$ at 1.1621
  • GBP£ is currently up +0.225% against the USD$ to 1.2934
  • CHF is currently up +0.243% against the USD$ to 1.0315
  • German 10-Year Bunds are higher with yields down -0.3 basis points to 0.377%
  • UK 10-Year GILTs are lower with yields up 0.5 basis points to 1.447%

Asian Stocks

  • Asian stocks declined again, the sixth straight day of losses, in Asia, concerns about trade tensions and contagion spreading from economic crises in Argentina and Turkey to other emerging markets is still a focus
  • The Nikkei 225 finished down -0.41%, the Hang Seng ended down -0.99%, the Hang Seng China Enterprise declined -0.63%, and the CSI 300 was -1.07%
  • Hong Kong stocks are trading at their lowest levels since August 2017  
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.28x
  • 16 stocks in the Nikkei 225 hit 4-week highs while 44 stocks reached 4-week lows
  • 4 stocks in the Nikkei 225 closed overbought while 9 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 0.32x
  • 2 stocks in the Hang Seng hit 4-week highs while 13 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 3 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are higher with yields down -0.4 basis points to 0.111%
  • JGBs 2s-10s Spread has narrowed 0.5 basis points to 0.22%

*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 1308 6.43 -3 -25 0.07% 3.83%
Morgan Stanley 620 6.14 1 4 0.00% -0.14%
Microsoft Corp 539 6.86 2 25 0.13% 6.22%
Coca-Cola Co 467 6.43 2 -10 0.00% -1.14%
Wells Fargo & Co 442 6.86 -4 -10 -1.65% -0.79%

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
Visa Inc 187 7.57 10 6 -0.04% 3.49%
FedEx Corp 13 7.14 -2 -11 0.58% -2.55%
Exxon Mobil Corp 130 7.14 -7 -4 2.88% 6.00%
NIKE Inc 120 7.14 1 17 0.19% 7.33%
Berkshire Hathaway Inc 136 7.00 1 1 5.41% 6.35%

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 9.61 57.94% 11.29 62.3% 1.17 52.18% 2.56 80.36% 3.48 81.35%
QQQ 16.08 69.84% 17.02 73.02% 1.06 44.05% 6.02 95.63% 4 89.29%
IWM 12.52 42.46% 13.24 28.37% 1.06 35.91% 3.69 81.75% 2.52 51.98%
FEZ 17.28 90.87% 16.61 89.68% 0.96 14.48% -0.9 31.15% 1.8 53.17%
EEM 20.7 89.29% 20.72 90.87% 1 21.03% -1.69 26.98% 1.92 55.56%

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
CENTERPOINT ENERGY INC CNP Utilities Multi-Utilities 3.52% 4.85% 6.28%
EXPRESS SCRIPTS HOLDING CO ESRX Health Care Health Care Providers & Services 3.26% 1.96% 17.74%
PPL CORP PPL Utilities Electric Utilities 2.25% 3.42% 3.12%
DUKE ENERGY CORP DUK Utilities Electric Utilities 2.15% 3.47% 3.44%
CHURCH & DWIGHT INC CHD Consumer Staples Household Products 2.14% 2.19% 16.77%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
ROBERT HALF INTL INC RHI Industrials Professional Services -6.15% -4.98% 29.44%
ADOBE SYSTEMS INC ADBE Information Technology Software -4.03% -2.66% 36.56%
EPAM SYSTEMS INC EPAM Information Technology IT Services -4.02% -3.9% 23.54%
VAIL RESORTS INC MTN Consumer Discretionary Hotels, Restaurants & Leisure -3.96% -2.4% 33.15%
BLACKBAUD INC BLKB Information Technology Software -3.73% -2.81% 6.28%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
SANGAMO THERAPEUTICS INC SGMO Health Care Biotechnology -26.95% -8.56% -18.75%
CARVANA CO CVNA Consumer Discretionary Specialty Retail -8.02% -1.39% 122.21%
PIVOTAL SOFTWARE INC PVTL Information Technology Software -4.76% 0.29% 55.9%
PATTERSON-UTI ENERGY INC PTEN Energy Energy Equipment & Services -4.69% -6.13% -33.93%
SNAP INC SNAP Information Technology Software -4.64% -11.04% -39.12%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
ALLAKOS INC ALLK Health Care Biotechnology 5.6% 5.25% 30.11%
FOCUS FINANCL PRTNR LLC-REDH FOCS Financials Capital Markets 4.22% 15.16% 23.95%
AGIOS PHARMACEUTICALS AGIO Health Care Biotechnology 3.25% 6.6% 33.72%
HERTZ GLOBAL HOLDINGS INC HTZ Industrials Road & Rail 3.21% -6.59% -22.92%
SM ENERGY CO SM Energy Oil, Gas & Consumable Fuels 2.61% 2.87% 28.0%

Source: S&P Capital IQ, StockDio

Cryptos

  • Belgium’s top financial regulator, The Financial Services and Market Authority (FSMA) released an official warning of crypto fraud, saying “cryptocurrencies are the hype of the year” while warning investors of the risks associated with cryptos. The regulator specifically warned investors of fraud associated with cryptocurrencies. 
  • Coinbase announced Thursday of plans to roll out new crypto trading pairs for the British pound. David Farmer, general manager of Coinbase Pro, said in a blog that Coinbase Pro will begin offering trading services for the pound against ethereum, bitcoin cash, ethereum classic, and litecoin. Coinbase Pro already offers trading services for the pound against bitcoin.  
  • Business Insider is reporting that Goldman Sachs is pausing its push to launch a cryptocurrency trading desk.  Instead, the investment bank plans to focus on the custody framework which will help it hold and track cryptocurrencies for clients. 
  • Cryptocurrency exchange, Kraken, has denied a popular rumor suggesting that the firm will be shutting down operations amid security issues. The exchange said on twitter Wednesday that they could confirm that they are not shutting down operations in any specific place, and there has been no breach of security.  
  • Zhongshan, a southern Chinese city, has begun utilizing a blockchain system that monitors the movements of ex-prisoners to improve the quality of ‘community correction’.  The southern Chinese city applied this blockchain system to community centers, where parolees are required to check in regularly.  

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
Navistar International Corporation NAV 9/6/2018 Earnings Release Date US Large-Cap: D, US Industrials: B
Okta, Inc. OKTA 9/6/2018 Earnings Release Date US Large-Cap: F, US Information Technology: F
Five Below, Inc. FIVE 9/6/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: A
Palo Alto Networks, Inc. PANW 9/6/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
GameStop Corp. GME 9/6/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
Finisar Corporation FNSR 9/6/2018 Earnings Release Date US Large-Cap: F, US Information Technology: D
Zayo Group Holdings, Inc. ZAYO 9/6/2018 Estimated Earnings Release Date US Large-Cap: D
The Hain Celestial Group, Inc. HAIN 9/6/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Staples: D
Casey's General Stores, Inc. CASY 9/10/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Staples: C
Pivotal Software, Inc. PVTL 9/12/2018 Earnings Release Date US Large-Cap: F
Adobe Systems Incorporated ADBE 9/12/2018 Estimated Earnings Release Date US Large-Cap: B, US Information Technology: C
The Kroger Co. KR 9/13/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: D
Oracle Corporation ORCL 9/13/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: C
Dave & Buster's Entertainment, Inc. PLAY 9/14/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C

Source: S&P Capital IQ