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Global Stocks are positive ahead of ECB rate decision after US proposes continued trade discussions with China

Sep 13, 2018

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US Stocks

  • Global stocks are advancing this morning, following news the US trade officials has proposed another round of trade talks with their counterparts in Beijing 
  • US stocks index futures are little changed ahead of the open in NY with the Dow Jones minis +0.21%, S&P500 minis +0.19% and Nasdaq 100 minis +0.32% 
  • Turkish President Recep Tayyip Erdogan attacked the Turkish Central Bank for failing to rein in inflation and continues to suggest higher interest rates cause higher inflation – the Turkish Lira is down 1.36% to 6.4323. 
  • The Turkish Central Bank decided to raise its benchmark interest rate to 24.00% from 17.75% -- Consensus was an increase to 21.00% 
  • The European Central Bank (ECB) will be releasing its decision on interest rates later this morning - the Deposit Facility Rate is expected is forecasted to stay unchanged at –0.40%. 
  • The VIX is little changed this morning and is currently at 12.8 after closing at 13.14 yesterday
  • EEM September 21 and October 19 OTM Calls, Bank of America (BAC) September 14 OTM Calls, Apple (AAPL) September 14 OTM Calls, EWZ November 2018 OTM Calls, and FXI September 21 OTTM Calls are the most heavily traded options contracts in the US pre-market 
  • US 10-Year Treasury Bonds are lower with yields up 1.11 basis points to 2.9737%
  • The US Treasury 2s-10s Spread has widened 0.27 basis points to 0.22%
  • WTI Crude is currently up 1.62% to USD$70.37/bbl with the Brent-WTI spread down USD$-2.38 to USD$8.83/bbl
  • Oil prices are declining this AM after making 2-month highs yesterday as US stockpiles data suggests global market supply remains at healthy levels 
  • Gold is currently little changed -0.04% to USD$1205.72/oz

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • Boeing (BA) forecast China will need 200 new air cargo freighters over the next 20 years given it has the fastest growing e-commerce sector on the planet.  Boeing sees an exponential growth rate for these planes in the coming years.  Boeing is rated ‘Top Buy’ in our US Large-Cap Global Top Picks and ‘Attractive’ in our US Industrials Global Top Picks
  • Debenhams (DEB LN) fell 10.7% to 11.97 pounds after Sport Direct said it does not intend to acquire Debenhams.  The statement would not permit an acquisition for the next 6 months, according to local securities regulations.  Debenhams is not rated in our Global Top Picks
  • GVC Holdings (GVC LN) shares are up 0.20% at 1064 pounds as the company reported an acceleration in revenue growth.  The company highlighted revenue was boosted by wagers on the soccer World Cup.  GVC is rated ‘Neutral’ in our United Kingdom Global Top Picks
  • Impala Platinum (IMP SJ) raised its average selling price even with platinum prices very weak.  The company managed to raise prices of other metals to compensate, with an average 5% hike in its basket price for metals.  Implats, as it is known, is not rated in our Global Top Picks
  • Legal & General Group (LGEN LN) completed a USD$5.7bn buy-in of British Airways pension scheme, a deal it says is the largest of its kind ever in Britain.   The deal covers 22,000 pensioners.  International Consolidated Airway Group (IAG LN) owns British Airways and closed up 0.40% at 676.80 pounds.  IAG is rated ‘Attractive’ in both our European Large-Cap and United Kingdom All-Cap Global Top Picks 
  • Meituan Dianping (3690 HK) raised USD$4.2bn in its IPO with pricing of its shares at HKD$69.   Pricing was at the upper end of the range and values the company at USD$48bn.  Meituan Dianping is a food delivery service web portal backed by Tencent (700 HK).  Meituan has not begun trading yet.  Tencent closed 5% up at HKD$323.80.  Tencent is rated ‘Top Buy’ in our China All-Cap Global Top Picks 
  • NIO (NIO), the new Chinese electric car maker that debuted yesterday on the NYSE, has its price target set at $4.20 by Bernstein.  That target implies a 36% downside from yesterday’s close.  NIO is not rated in our Global Top Picks
  • Qualcomm (QCOM) began an accelerated share repurchase program valued at USD$16bn.  Qualcomm’s CEO said the company is on track to complete the large majority of the program by the end of FY2019.   Qualcomm is rated ‘Neutral’ in both our US Large-Cap and US Information Technology Global Top Picks 
  • Takeda (4502 JP) is considering selling its Shire Plc eyecare unit to raise cash according to press reports.  Takeda is discussing other asset sales with banks according to the same report.  Takeda closed up 1.7% at 4652 yen.  Takeda is rated ‘Attractive’ in our Japan Large-Cap Global Top Picks
  • WM Morrison (LSE:MRW) reports 1H2018 results that were ahead of Consensus expectations.  Comp store sales, ex fuel, were +6.3% for the period.  WM Morrison is currently down 1.22% to GBP262.55.  The stock is rated “Neutral” in our United Kingdom All-Cap Global Top Picks. 
  • Yahoo Japan (4689 JP) was raised to buy from hold at Jefferies with its price target raised to 500 yen from 400 yen.  Yahoo Japan closed up 0.52% at 384 yen.  Yahoo Japan is rated ‘Neutral’ in our Japan Large-Cap Global Top Picks

European Stocks

  • European stocks are advancing this morning, off earlier highs with the drop in the Turkish Lira and ahead of the ECB rate decision later this AM 
  • The Euro Stoxx 600 is currently up +0.13%, the FTSE 100 is down -0.28%, the DAX has risen +0.52%, and the CAC 40 is up +0.22%
  • Automobiles & Parts (+1.67%), Basic Resources (+0.87%), and Technology (+0.77%) stocks are the top performers in the Euro Stoxx 600 today
  • Media (-1.1%), Retail (-0.66%), and Personal & Household Goods (-0.57%) 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 1.01x
  • 47 stocks in the Euro Stoxx 600 are at 4-week highs while 69 stocks are at 4-week lows
  • 20 stocks in the Euro Stoxx 600 are overbought while 54 stocks are oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed little changed -0.24 points today to 15.08 after closing at 15.32 yesterday
  • EUR€ is currently little changed against the USD$ at 1.1623
  • GBP£ is currently little changed against the USD$ at 1.3054
  • CHF is currently little changed against the USD$ at 1.0315
  • German 10-Year Bunds are lower with yields up 0.4 basis points to 0.415%
  • UK 10-Year GILTs are lower with yields up 1 basis points to 1.494%

Asian Stocks

  • Asian stocks finished positive overnight, ending a 10-day slide for most regional benchmarks after news that the US has proposed to hold another round of trade negotiations with officials from Beijing 
  • The recent skid for Hong Kong and Chinese stocks is the longest losing streak in 16 years 
  • The Nikkei 225 finished up +0.96%, the Hang Seng ended up +2.54%, the Hang Seng China Enterprise up +2.58%, and the CSI 300 was +1.08%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 4.77x
  • 35 stocks in the Nikkei 225 hit 4-week highs while 50 stocks reached 4-week lows
  • 15 stocks in the Nikkei 225 closed overbought while 27 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 24x
  • 3 stocks in the Hang Seng hit 4-week highs while 24 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 13 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are higher with yields down -0.1 basis points to 0.112%
  • JGBs 2s-10s Spread has narrowed 0.3 basis points to 0.22%
  • JPY¥ is currently up +0.216% against the USD$ to 111.5

*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
Microsoft Corp 275 5.43 3 25 0.14% 6.18%
Ford Motor Co 241 7.29 -1 -7 0.53% -14.71%
Goldman Sachs Group Inc/The 240 5.57 0 9 0.0% 7.06%
Netflix Inc 181 4.71 -2 -25 -1.25% 1.53%
Visa Inc 166 6.43 -1 7 0.1% 3.3%

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
Verizon Communications Inc 65 8.29 -2 -16 0.0% 0.41%
Halliburton Co 19 7.71 -6 -21 -7.85% -20.32%
Exxon Mobil Corp 68 7.57 -1 -3 0.16% 1.3%
FedEx Corp 16 7.43 0 -13 -1.78% -4.23%
Apple Inc 155 7.43 3 26 0.39% 2.7%

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 8.82 40.67% 11.16 54.96% 1.27 82.34% 2.57 77.98% 3.35 75.79%
QQQ 15.24 63.89% 16.55 66.27% 1.09 59.72% 4.71 85.71% 3.44 80.56%
IWM 11.85 26.59% 13.25 25.79% 1.12 75.79% 3.56 77.78% 2.56 51.59%
FEZ 15.52 78.37% 15.43 77.98% 0.99 22.02% -0.39 34.72% 0.52 46.23%
EEM 19.51 80.16% 19.54 81.75% 1 24.01% -1.46 30.16% 0.82 46.63%

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
WALGREENS BOOTS ALLIANCE INC WBA Consumer Staples Food & Staples Retailing 2.36% 3.09% -4.47%
WEX INC WEX Information Technology IT Services 1.94% 4.31% 33.91%
FLEETCOR TECHNOLOGIES INC FLT Information Technology IT Services 1.73% 2.84% 13.1%
FORTINET INC FTNT Information Technology Software 1.7% 6.05% 69.35%
HERSHEY CO HSY Consumer Staples Food Products 1.69% 3.02% -3.48%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
FIRST AMERICAN FINANCIAL CP FAF Financials Insurance -4.27% -4.82% -0.68%
SUNTRUST BANKS INC STI Financials Banks -3.89% -4.21% 11.41%
CULLEN/FROST BANKERS INC CFR Financials Banks -2.55% -4.18% 13.87%
M & T BANK CORP MTB Financials Banks -2.51% -2.98% 3.3%
NASDAQ INC NDAQ Financials Capital Markets -2.42% -3.2% 18.53%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
HERON THERAPEUTICS INC HRTX Health Care Biotechnology -8.24% -10.96% 63.61%
SNAP INC SNAP Information Technology Software -7.23% -9.43% -48.55%
FITBIT INC FIT Information Technology Electronic Equipment, Instruments & Components -7.15% -6.14% -8.32%
CARVANA CO CVNA Consumer Discretionary Specialty Retail -4.91% 8.15% 130.36%
PDC ENERGY INC PDCE Energy Oil, Gas & Consumable Fuels -4.0% -11.31% -11.73%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
LAREDO PETROLEUM INC LPI Energy Oil, Gas & Consumable Fuels 9.02% 3.12% -26.98%
BLOOM ENERGY CORP-REDH BE Industrials Electrical Equipment 8.67% 12.32% 24.4%
DISCOVERY INC DISCA Consumer Discretionary Media 7.4% 11.15% 28.4%
PUMA BIOTECHNOLOGY INC PBYI Health Care Biotechnology 5.16% 10.05% -62.28%
SUPERIOR ENERGY SERVICES INC SPN Energy Energy Equipment & Services 5.12% 8.84% -9.21%

Source: S&P Capital IQ, StockDio

Cryptos

  • All crypto exchanges and banks with cryptocurrency services in Mexico will be required to receive a permit from the Bank of Mexico, according to a letter published in the Mexican government’s Diario Oficial de la Federacion. The letter goes on to say that companies interested in receiving a permit must submit to the Bank of Mexico a detailed business plan with a full description of their operation, the fees they plan to charge, and they system they will use to verify customer’s identities.  
  • Cryptocurrency exchange OKCoin announced Wednesday of an expansion of token-to-token trading into twenty new US states. Vice President of Marketing at OKCoin, Jim Nguyen, said that OKCoin has worked closely with state regulators to abide by federal and state laws in solidifying this expansion.  
  • Japan’s Financial Services Agency (FSA) hosted scholars, lawyers, government officials, and trading platforms in the financial watchdog’s fifth study group meeting on cryptocurrencies. According to a Reuters report, Japan’s FSA is looking to add 12 more members to its team by 2019 to better respond to growth of the cryptocurrency exchange industry. According to a document released after Wednesday's meeting, the FSA is currently reviewing 16 cases for licensed crypto exchanges with 160 more public companies planning to submit applications. 
  • The Trustee for Mt. Gox announced corporate creditors can also enter claims to claw back trapped Bitcoin.  The online filing system was first opened to individual users on August 23rd.  The Trustee will be submitting a statement of approval or rejection to a Tokyo district court for a final decision by January 24, 2019. 
  • Joint research conducted by the World Economic Forum and Bain & Company indicates that by deploying a blockchain focused on trade financing, global businesses could generate an extra USD$1 trillion that would otherwise be missed out on. The research cites issues in trade finance that largely arise due to limited access to credit and loans for small and medium sized enterprises in emerging markets.  
  • US-based venture capital firm, Ribbit Capital, has a goal of raising USD$420 million for its fifth venture fund after the company attracted USD$300 million last year. Founded in 2012, Ribbit’s portfolio is comprised of cryptocurrency industry leaders like crypto exchange, Coinbase, crypto and stock trading platform, Robinhood, and finance company Credit Karma.  

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
The Kroger Co. KR 9/13/2018 Earnings Release Date US Large-Cap: D, US Consumer Staples: C
iShares Asia Trust - iShares FTSE A50 China Index ETF SEHK:2823 9/13/2018 Estimated Earnings Release Date China All-Cap: D
Dave & Buster's Entertainment, Inc. PLAY 9/14/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
FedEx Corporation FDX 9/17/2018 Earnings Release Date US Large-Cap: A, US Industrials: A
Oracle Corporation ORCL 9/17/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
Cracker Barrel Old Country Store, Inc. CBRL 9/17/2018 Estimated Earnings Release Date US Large-Cap: A, US Consumer Discretionary: B
Copart, Inc. CPRT 9/17/2018 Estimated Earnings Release Date US Large-Cap: B, US Industrials: B
Nine Dragons Paper (Holdings) Limited SEHK:2689 9/17/2018 Earnings Release Date China All-Cap: C
Want Want China Holdings Limited SEHK:151 9/17/2018 Estimated Earnings Release Date China All-Cap: C
General Mills, Inc. GIS 9/18/2018 Earnings Release Date US Large-Cap: B, US Consumer Staples: B
AutoZone, Inc. AZO 9/18/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
NWS Holdings Limited SEHK:659 9/18/2018 Earnings Release Date China All-Cap: C
Red Hat, Inc. RHT 9/19/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Lennar Corporation LEN 9/19/2018 Estimated Earnings Release Date US Large-Cap: D, US Consumer Discretionary: D
Micron Technology, Inc. MU 9/19/2018 Estimated Earnings Release Date US Large-Cap: A, US Information Technology: A

Source: S&P Capital IQ