morning-quant-ride

Morning Brief

Wake up to the Morning Quant Ride, your global markets update every morning!

Global Stocks advancing to start the week as investors shrug off the threat of further escalation in US-China Trade Spat

Sep 10, 2018

Start Your Free Trial Today

 

US Stocks

  • Global stocks are advancing this morning, shaking off weakness in Asia stock markets, as the effect from Friday’s positive payrolls data release continues to boost investor sentiment 
  • US stocks index futures are pointing to a positive open in NY with the Dow Jones minis +0.32%, S&P500 minis +0.35% and Nasdaq 100 minis +0.54% 
  • The VIX is little changed this morning and is currently at 14.61 after closing at 14.88 last week
  • Bank of America (BAC) September 154 OTM Calls, QQQ December 2018 Puts, and SPY September 21 OTM Puts are the most heavily traded options contracts in the US pre-market
  • US 10-Year Treasury Bonds are lower with yields up 0.18 basis points to 2.94%
  • The US Treasury 2s-10s Spread has widened 0.17 basis points to 0.24%
  • WTI Crude is currently little changed -0.03% to USD$67.75/bbl with the Brent-WTI spread little changed USD$0.16 to USD$9.04/bbl
  • Gold is currently little changed -0.22% to USD$1194.29/oz

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • Altaba (AABA) announced it is raising USD$2.5bn by selling part of its stake in Yahoo Japan (4689 46JP).  The company will offer the shares between 353-360 yen which is up to a 4.9% discount to market price.  The final price and number of shares to be sold will be determined Tuesday morning.  Yahoo Japan is up 0.37% at 371 yen.  Altaba is rated ‘Top Buy’ in our US Large-Cap Global Top Picks and ‘Neutral’ in our US Information Technology Global Top Picks.  Yahoo Japan is rated ‘Neutral’ in our Japan Large-Cap Global Top Picks.
  • Apple (AAPL) is expected to release new product refreshes for its flagship iPhone and iWatch this week.  Investors are expecting 5.8-inch and 6.5-inch versions of the iPhone X as well as a new low-cost version of the iPhone X.  Apple’s reboot of the iWatch will be the most significant product refresh since the release of the smartwatch.  Apple is +0.40% to USD$222.19 in pre-market trading.  Apple is a “Top Buy” in our US Large-Cap Global Top Picks and rated “Attractive” in our US Information Technology Global Top Picks.
  • Associated British Foods (ABF LN) saw its shares fall 0.90% to 2,249 euros after reporting it expects a fall in same store sales of 2% at its Primark clothing chain.  Associated is rated ‘Neutral’ in our United Kingdom All-Cap Global Top Picks 
  • Over the weekend, Denmark’s Minister in charge of financial legislation now believes that it is very likely that Danske Bank (CPSE:DANSKE) engaged in money laundering.  At the moment, Danske is down 2.55% to DKK172.35.  Danske Bank is a “Top Short” in our Europe Large-Cap Global Top Picks. 
  • RPC Group (RPC LN) announced it is in talks to sell itself to either Apollo Asset Management or Bain Capital.  The talks are preliminary and do not mean a sale will necessarily happen.  RPC is up 20.2% at 822 euros on the news.
  • Sunny Optical (2382 HK) shares are down 4.2% at HKD$89.50 after Citi reiterated its buy on the stock.  Citi highlighted Sunny’s growth in average selling price for handset lens of 10% as well as its 55% growth in shipments YTD, ahead of 45-50% guidance.  Sunny Optical is rated ‘Neutral’ in our China All-Cap Global Top Picks.
  • Tata Global Beverages (TGBL IN) announced in a filing it is restructuring operations.  It has exited its JV in China and streamlined operations in Russia.  The restructuring will help it focus on core markets with better opportunities for growth.  Tata Global Beverages is down 0.09% at 222.75 rupees and is rated ‘Neutral’ in our India All-Cap Global Top Picks
  • Volkswagen (VOW GR) could be a great candidate for a leveraged buyout according to a report published by Bernstein today.  The company is described as hugely undervalued with untapped value in its financing and truck units.  The stock is up 1.3% at 135.10 euros.  Volkswagen is rated ‘Unattractive’ in our European Large-Cap Global Top Picks.
  • Zheijiang Geely Holding Group (SEHK: 175 ) has decided to delay its IPO of Volvo Cars as escalating global trade tensions prompted the Chinese car manufacturer to delay the IPO.  Geely is now looking at way to streamline it production network to address the burden from higher export tariffs.  Geely closed down 2.76% to HKD14.48.  Geely is rated “Attractive” in our China All-Cap Global Top Picks.  

European Stocks

  • European stocks are advancing declining this AM, shaking off the losses in Asian stock markets this morning, up on news Italy’s budget will be within EU fiscal rules (bloomberg) 
  • The Euro Stoxx 600 is currently up +0.33%, the FTSE 100 is higher by +0.14%, the DAX has risen +0.19%, and the CAC 40 is up +0.23%
  • Utilities (+1.11%), Banks (+1.03%), and Telecommunications (+0.64%) stocks are the top performers in the Euro Stoxx 600 today
  • Chemicals (-0.15%), Real Estate (-0.02%), and Personal & Household Goods (-0.02%) stocks are the worst 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 2.21x
  • 13 stocks in the Euro Stoxx 600 are at 4-week highs while 228 stocks are at 4-week lows
  • 8 stocks in the Euro Stoxx 600 are overbought while 89 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 16.15 after closing at 16.45 last week
  • EUR€ is currently up +0.251% against the USD$ to 1.1578
  • GBP£ is currently little changed against the USD$ at 1.2934
  • CHF is currently down -0.388% against the USD$ to 1.0277
  • German 10-Year Bunds are lower with yields up 2 basis points to 0.407%
  • UK 10-Year GILTs are lower with yields up 1.4 basis points to 1.473%

Asian Stocks

  • Asian stocks were broadly lower, continuing last week’s sell-off finished in the red, the worst weekly performance in 6 months over worries about trade tensions between the US and China 
  • The Nikkei 225 finished up +0.3%, the Hang Seng ended down -1.33%, the Hang Seng China Enterprise declined -1.19%, and the CSI 300 was -1.45%
  • Japanese stocks were an outlier as Friday’s US payrolls data for August 2018 point to increasing wage inflation and suggest a weaker Yen if the US Fed were to raise benchmark interest rates 
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 1.85x
  • 8 stocks in the Nikkei 225 hit 4-week highs while 85 stocks reached 4-week lows
  • 6 stocks in the Nikkei 225 closed overbought while 25 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 0.14x
  • 2 stocks in the Hang Seng hit 4-week highs while 19 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 4 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are lower with yields up 0.5 basis points to 0.118%
  • JGBs 2s-10s Spread has widened 0.5 basis points to 0.22%
  • JPY¥ is currently little changed against the USD$ at 111.11

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

Stock Sentiment

Top Stocks by 7-day News Volume

On Mobile/Tablet scroll to the right.

Name 7 Day News
Volume
7 Day Average
News Buzz
1M EPS Net
Revisions
3M EPS Net
Revisions
1M EPS
% Chg
3M EPS
% Chg
Microsoft Corp 294 3.71 2 25 0.13% 6.22%
Alphabet Inc 284 1.57 -3 -25 0.07% 3.83%
Starbucks Corp 246 2.57 -11 -23 -0.69% -2.55%
Goldman Sachs Group Inc 241 4.86 2 9 0.00% 7.05%
Morgan Stanley 220 2.71 1 4 0.00% -0.14%

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

Top Stocks by 7-Day Average News Buzz

On Mobile/Tablet scroll to the right.

Name 7 Day News
Volume
7 Day Average
News Buzz
1M EPS Net
Revisions
3M EPS Net
Revisions
1M EPS
% Chg
3M EPS
% Chg
Lockheed Martin Corp 39 7.86 11 13 1.24% 4.97%
FedEx Corp 15 7.43 -2 -11 0.58% -2.55%
Verizon Communications Inc 47 6.00 -7 -16 0.00% 0.36%
Ford Motor Co 179 6.00 -7 -9 -0.59% -14.98%
Visa Inc 156 6.00 10 6 -0.04% 3.49%

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

Implied Volatility Data For Liquid Macro Index ETFs

On Mobile/Tablet scroll to the right.

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 9.33 51.59% 12.48 70.63% 1.34 89.88% 2.16 74.4% 4.66 95.04%
QQQ 16.62 73.41% 17.57 77.58% 1.06 44.64% 5.97 94.84% 4.4 91.27%
IWM 12.64 45.24% 13.75 44.44% 1.09 53.57% 3.42 74.4% 2.99 60.71%
FEZ 16.2 84.13% 15.96 83.73% 0.99 20.83% -2.19 21.43% 1.07 50.79%
EEM 20.19 84.92% 20.66 90.48% 1.02 30.36% -2.25 20.24% 1.87 55.36%

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

On Mobile/Tablet scroll to the right

Winners Ticker Sector Industry 1D Return 5D Return YTD
BROADCOM INC AVGO Information Technology Semiconductors & Semiconductor Equipment 7.41% 7.1% -12.43%
EPAM SYSTEMS INC EPAM Information Technology IT Services 1.49% -4.45% 23.95%
NORFOLK SOUTHERN CORP NSC Industrials Road & Rail 1.42% 1.66% 20.12%
CBOE GLOBAL MARKETS INC CBOE Financials Capital Markets 1.38% 3.6% -15.43%
DOMINO'S PIZZA INC DPZ Consumer Discretionary Hotels, Restaurants & Leisure 1.21% -2.22% 45.75%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
ROBERT HALF INTL INC RHI Industrials Professional Services -3.95% -7.23% 27.16%
FASTENAL CO FAST Industrials Trading Companies & Distributors -3.12% -1.68% 6.87%
PPL CORP PPL Utilities Electric Utilities -2.49% 1.39% 1.59%
CONSOLIDATED EDISON INC ED Utilities Multi-Utilities -1.57% 0.87% -1.5%
CENTERPOINT ENERGY INC CNP Utilities Multi-Utilities -1.36% 2.63% 4.85%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

On Mobile/Tablet scroll to the right

Winners Ticker Sector Industry 1D Return 5D Return YTD
AMBARELLA INC AMBA Information Technology Semiconductors & Semiconductor Equipment -4.45% -2.24% -47.22%
PORTOLA PHARMACEUTICALS INC PTLA Health Care Biotechnology -4.3% -2.8% -57.24%
AGIOS PHARMACEUTICALS AGIO Health Care Biotechnology -3.86% -3.92% 24.76%
NEUROCRINE BIOSCIENCES INC NBIX Health Care Biotechnology -3.67% -4.33% 38.83%
FIRST SOLAR INC FSLR Information Technology Semiconductors & Semiconductor Equipment -3.32% -7.25% -37.28%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
ALLAKOS INC ALLK Health Care Biotechnology 8.04% 19.2% 39.96%
FINISAR CORP FNSR Information Technology Communications Equipment 7.2% -0.4% -5.03%
BLOOM ENERGY CORP-REDH BE Industrials Electrical Equipment 6.34% 6.17% 20.15%
PTC THERAPEUTICS INC PTCT Health Care Biotechnology 6.07% 10.29% 98.06%
SANGAMO THERAPEUTICS INC SGMO Health Care Biotechnology 5.23% -27.76% -24.4%

Source: S&P Capital IQ, StockDio

Cryptos

  • Chinese traders are circumventing the Chinese government’s ban on cryptocurrency trading with the use of virtual private networks (VPNs).  According to the South China Morning Post, Chinese traders are using stablecoin Tether to enter and exit cryptocurrency markets.   
  • Citigroup is developing a structured product which will reduce investment risks for Hedge Funds and Asset Managers when they invest in cryptocurrencies.  Rather than owning the cryptocurrencies outright, investors will be able to acquire Digital Asset Receipts which will act very similar to American Deposit Receipts.   
  • Lightning Labs developer, Alex Bosworth, has been working with a technology known as ‘atomic swaps’ that allows for transactions between a native cryptocurrency and another cryptocurrency (on a different blockchain) that enables the transaction to occur with no middle man. Bosworth discovered that by leveraging this technology, he can perform transactions between on-lightning network and off-lightning network cryptos, a breakthrough now known as, ‘submarine swaps’. The technology is now being tested on live lightning networks. See Quantamize Crypto Quant Shot, "Atomic Swaps, Decentralized Exchanges, and The Future of Crypto Exchanges" from July 27, 2018. 
  • The SEC issued an order yesterday to suspend trading in Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF), two investment products that track cryptocurrencies.   
  • Short orders on ether (ETH) hit an all-time high during Friday’s trading session, according to cryptocurrency exchange, Bitfinex. Late Friday night, the number of shorts on ETH reached 208,680, surpassing the second largest cryptocurrency’s previous high of 202,854.  
  • WeChat, a popular messaging app, is furthering its efforts to block accounts related to cryptocurrencies. On Monday, WeChat blocked Bitmain’s account, which distributes content related to sales for the bitcoin mining giant. On top of that, over the weekend WeChat begun banning accounts related to crypto technical analysis and price prediction.   

Cryptocurrencies Today

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