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Global stocks advancing this morning with US stocks set to make multi-month highs as Sino-US trade tensions appear to be cooling

Sep 14, 2018

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US Stocks

  • Global stocks are positive this morning, as US stocks are set to make multi-month highs today as a potential cooling of Sino-US trade tensions is fueling investor optimism  
  • US stocks index futures are little changes ahead of the open in NY with the Dow Jones minis +0.15%, S&P500 minis +0.16% and Nasdaq 100 minis +0.34% 
  • US Retail Sales for August 2018 will be released this morning at 8:30am 
  • Chinese officials have made comments stating that the world trade system is not perfect and that China supports reforms to make it fairer and more effective 
  • Yale Economist Robert Shiller, the Nobel Laureate known for his analysis of asset-bubbles and the US housing market, believes the US stock market can go a lot higher before it comes down -- though he warns his analysis suggests it is already “highly priced” 
  • The Russian Central Bank shocked the market this morning, raising its benchmark interest rate target to 7.5% from 7.25% 
  • The VIX is little changed this morning and is currently at 12.21 after closing at 12.37 yesterday
  • Bank of America (BAC) September 14 OTM Calls, Apple (AAPL) September 14 OTM Calls, FXI October 19 OTM Calls, and EEM September 21 and October 19 OTM Calls are the most heavily traded options contracts in the US pre-market 
  • US 10-Year Treasury Bonds are lower with yields up 1.48 basis points to 2.9848%
  • The US Treasury 2s-10s Spread has widened 0.19 basis points to 0.22%
  • WTI Crude is currently down -2.53% to USD$68.59/bbl with the Brent-WTI spread up USD$2.44 to USD$9.78/bbl
  • Gold is currently up 0.41% to USD$1206.42/oz
  • Oil prices are set to finish the week positive after yesterday’s decline, the biggest drop in a month, as investors continue to digest the upcoming November deadline for implementing sanctions on Iran and their impact on global oil supply 
  • Gold spot price is set for its first weekly gain over the past few weeks with the Dollar Index (DXY) currently at 1 ½ month low 

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • Bayer (BAYN GR) rose 1.4% to 71.13 euros on a buy reiteration by Baader.  The note highlights the new head of the pharmaceutical division is well suited to handle the present stressful situation there.  Bayer is rated ‘Neutral’ in our European Large-Cap Global Top Picks.
  • Casino’s (CO FP) CEO yesterday told investors that Casino will not merge with its parent Rallye (RAL FP).  He additionally said he is working on Rallye issues with the news sending Casino 4.2% to 32.08 euros while Rallye is trading up 1.3% to 9.14 euros.  Casino is rated ‘Unattrative’ in our European Large-Cap Global Top Picks and Rallye is rated ‘Neutral’ in our European Large-Cap Global Top Picks
  • Investec Plc (INVP LN) will spin off its asset management unit, an operation with USD$143bn AUM.  A strategic review found that there is little synergy with the rest of the firm, hence the spin off.   Investec rose 9%, the most in 9 years, to 528.60 pounds.   Investec is rated ‘Top Short’ in our United Kingdom All-Cap Global Top Picks.
  • Metro AG (B4B GY) said today it is exploring ways to accelerate China development.  It said it is considering a Chinese partner to take a stake which could include some type of M&A.  Metro is trading up 1.2% at 13.83 euros.  Metro is rated 'Neutral' in our European SMID-Cap Global Top Picks
  • Nintendo (TSE:7974) announced during a Nintendo Direct presentation earlier this morning it will be releasing a new game in the Animal Crossing series and Luigi’s Mansion 3 (working title) for the Nintendo Switch in CY2019.  Nintendo is not rated in our Japan Large-Cap Global Top Picks. 
  • NIO (NIO), the Chinese electric car maker that debuted 2 days ago on the NYSE, soared 76% on its second day of trading to close at $11.60.  NIO traded lower on its first day with negative research reports being published.  On day 2, though, buyers appeared in force.  NIO is not rated in our Global Top Picks
  • NiSource (NI) is indicated to open ~8% lower after authorities in Massachusetts confirmed there were explosion at 39 locations in the coverage area of Columbia Gas, one its units. There has been no comment from Columbia Gas.  NiSource is rated ‘Top Buy’ in our US Large-Cap Global Top Picks
  • Sony (6758 JP) traded up 3.7% to 6630 yen as its most recent Spiderman PS4 title is selling strongly.  The title was released Sept 7th and has seen strong sales in its first week.  Sony is rated ‘Neutral’ in our Japan All-Cap Global Top Picks
  • Tencent (700 HK) rose 1.9% to close at HKD$330, after NIO, the electric car maker it is backing, traded up 76% on it second day of trading.   Tencent is rated ‘Top Buy’ in our China All-Cap Global Top Picks

European Stocks

  • European stocks are advancing this morning, with export-sensitive leading the move upwards in sympathy with the rally in Asia stocks overnight with on optimism that global trade tensions are declining 
  • The Euro Stoxx 600 is currently up +0.22%, the FTSE 100 is higher by +0.26%, the DAX has advanced +0.26%, and the CAC 40 has risen +0.3%
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 2.02x
  • Automobiles & Parts (+0.89%), Basic Resources (+0.8%), and Travel & Leisure (+0.69%) stocks are the top performers in the Euro Stoxx 600 today
  • Retail (-0.24%), Health Care (-0.18%), and Banks (+0.02%) stocks are the worst performers in the Euro Stoxx 600 today
  • 39 stocks in the Euro Stoxx 600 are at 4-week highs while 78 stocks are at 4-week lows
  • 13 stocks in the Euro Stoxx 600 are overbought while 52 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 14.18 after closing at 14.59 yesterday
  • EUR€ is currently little changed against the USD$ at 1.1701
  • GBP£ is currently little changed against the USD$ at 1.3126
  • CHF is currently little changed against the USD$ at 1.0369
  • The GBP is nearing a 6-week high following comments by Bank of England (BOE) Governor Mark Carney that interest rates may rise if there is a no-deal BREXIT 
  • German 10-Year Bunds are lower with yields up 1.6 basis points to 0.439%
  • UK 10-Year GILTs are lower with yields up 2.8 basis points to 1.532%

Asian Stocks

  • Asian stocks continue their bounce back overnight, with the biggest 2 day gain since January 2017 
  • An apparent cooling of Sino-US trade tensions has helped put a bid back into Hong Kong Stocks 
  • August 2018 Industrial Production and Retail sales came in above expectations 
  • The Nikkei 225 finished up +1.2%, the Hang Seng ended up +1.01%, the Hang Seng China Enterprise up +0.69%, and the CSI 300 was +0.17%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 3.33x
  • 53 stocks in the Nikkei 225 hit 4-week highs while 24 stocks reached 4-week lows
  • 24 stocks in the Nikkei 225 closed overbought while 17 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 6.14x
  • 4 stocks in the Hang Seng hit 4-week highs while 2 stocks reached 4-week lows
  • 3 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 lower with yields up 0.6 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 111.78
     

*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 265 5.71 3 25 0.17% 6.22%
Goldman Sachs Group Inc/The 233 5.86 0 9 0.0% 7.06%
Ford Motor Co 232 6.86 -1 -7 0.53% -14.71%
Netflix Inc 173 4.86 -2 -25 -1.25% 1.53%
Visa Inc 167 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 75 9.29 -2 -16 0.0% 0.41%
Apple Inc 165 8.57 3 26 1.39% 3.72%
Exxon Mobil Corp 67 8 -1 -3 0.16% 1.3%
Halliburton Co 16 7.71 -6 -21 -9.35% -21.62%
FedEx Corp 16 7.43 0 -13 -1.78% -4.23%

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 8.54 35.32% 11.15 54.17% 1.31 89.29% 2.86 83.93% 3.33 75.0%
QQQ 13.52 42.46% 16.25 62.7% 1.2 91.27% 3.47 72.62% 3 72.42%
IWM 11.91 28.17% 13.18 21.63% 1.11 70.83% 5.16 94.05% 2.49 50.4%
FEZ 14.76 72.22% 15.25 74.4% 1.03 32.34% 0.03 38.49% 0.24 42.86%
EEM 19.23 78.57% 19.92 84.13% 1.04 46.63% 0.19 44.84% 1.08 49.21%

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
COMCAST CORP CMCSA Consumer Discretionary Media 2.6% 3.07% -9.2%
BROADCOM INC AVGO Information Technology Semiconductors & Semiconductor Equipment 2.38% 8.62% -11.22%
ABBOTT LABORATORIES ABT Health Care Health Care Equipment & Supplies 2.26% 3.98% 16.67%
MSCI INC MSCI Financials Capital Markets 2.25% 0.72% 35.48%
MARRIOTT VACATIONS WORLDWIDE VAC Consumer Discretionary Hotels, Restaurants & Leisure 2.01% -3.41% -18.96%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
SUNTRUST BANKS INC STI Financials Banks -4.81% -8.7% 6.61%
WESTERN UNION CO WU Information Technology IT Services -2.94% -1.17% 0.05%
M & T BANK CORP MTB Financials Banks -1.99% -4.37% 1.31%
STERLING BANCORP STL Financials Banks -1.57% -3.34% -8.99%
BB&T CORP BBT Financials Banks -1.41% -4.48% 2.27%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
PIVOTAL SOFTWARE INC PVTL Information Technology Software -22.42% -15.85% 37.99%
GLOBAL BLOOD THERAPEUTICS GBT Health Care Biotechnology -7.69% -6.26% 2.26%
IMMUNOMEDICS INC IMMU Health Care Biotechnology -6.42% -9.16% 35.08%
CARVANA CO CVNA Consumer Discretionary Specialty Retail -5.21% 8.22% 125.16%
DYCOM INDUSTRIES INC DY Industrials Construction & Engineering -5.19% -0.79% -32.79%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
TANDEM DIABETES CARE INC TNDM Health Care Health Care Equipment & Supplies 5.11% 14.6% 300.3%
GARDNER DENVER HOLDINGS INC GDI Industrials Machinery 4.59% 11.04% -19.13%
DISCOVERY INC DISCA Consumer Discretionary Media 3.65% 14.22% 32.05%
AVALARA INC AVLR Information Technology Software 3.27% 3.47% -4.26%
FLOWSERVE CORP FLS Industrials Machinery 2.5% 4.02% 26.42%

Source: S&P Capital IQ, StockDio

Cryptos

  • Austin, Texas is working on a blockchain-based identification system that is geared towards helping homeless individuals keep track of important documents like birth certificates, social security cards, and other identification documents. City officials cited that in the past, they have had difficulty providing aid to homeless people with lack of identification being one of the biggest deterrents. The city of Austin has been working closely with the University of Texas’ Dell Medical School and Austin-Travis County’s Emergency Medical Services on the project. 
  • Seasoned blockchain researcher, Vlad Zamfir, claims to have created code for a successful proof-of-concept idea at Ethereum’s hackathon, EthBerlin. Zamfir worked with several other developers, including Tim Beiko and John Marlin, in creating code demonstrating how Ethereum shards could one day circulate on the blockchain. Sharding is an experimental scaling solution that alleviates the strain of a grown network by breaking the blockchain into smaller units, known as shards.  
  • Sonny Singh, Chief Commercial Officer of crypto payments processor, BitPay, said in an interview with Bloomberg Wednesday that he believes altcoins will never come back while Bitcoin will see a rebound in 2019. Singh believes cryptocurrency markets are at a point where they need a ‘defining moment’ to breakout, and that defining moment will be when large institutions like Goldman Sachs and Morgan Stanley truly get involved with cryptocurrencies.   
  • Large Japanese financial company, SBI Holdings, is preparing to launch a payments application for both iOS and Android that would be powered by Ripple’s distributed ledger technology. The application would enable customers to execute transactions 24-hours a day by using either a phone number or QR code, with the main goal being to eliminate time constraints associated with traditional banking methods.  
  • Mike Novogratz, founder and CEO of crypto investment firm Galaxy Digital Capital Management, said in a tweet Thursday that he believes the crypto market has reached a bottom. In explaining his reasoning, Movogratz cited that yesterday, the market touched a low seen late in 2017 and immediately rallied. Novogratz believes the crypto market is retracing its breakout that caused the cryptocurrency boom in late 2017/early 2018.  
  • R3 hosted its annual gathering of the Corda platform community known as CordaCon 2018 in London over the past two days. The event saw a huge spike in demand from last year's registration numbers, seeing over 1,100 registrations in just two days. Corda runs Corda Marketplace, a ‘psuedo app store’ where users can discover new partners to help build decentralized applications on Corda’s blockchain.  

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
FedEx Corporation FDX 9/17/2018 Earnings Release Date US Large-Cap: A, A
Oracle Corporation ORCL 9/17/2018 Earnings Release Date US Large-Cap: C, B
Want Want China Holdings Limited SEHK:151 9/17/2018 Estimated Earnings Release Date China All-Cap: C
Cracker Barrel Old Country Store, Inc. CBRL 9/17/2018 Estimated Earnings Release Date US Large-Cap: A, B
Nine Dragons Paper (Holdings) Limited SEHK:2689 9/17/2018 Earnings Release Date China All-Cap: C
General Mills, Inc. GIS 9/18/2018 Earnings Release Date US Large-Cap: B, B
AutoZone, Inc. AZO 9/18/2018 Earnings Release Date US Large-Cap: C, B
NWS Holdings Limited SEHK:659 9/18/2018 Earnings Release Date China All-Cap: C
Copart, Inc. CPRT 9/19/2018 Earnings Release Date US Large-Cap: B, B
Red Hat, Inc. RHT 9/19/2018 Earnings Release Date US Large-Cap: C, C
Lennar Corporation LEN 9/19/2018 Estimated Earnings Release Date US Large-Cap: D, D
Micron Technology, Inc. MU 9/19/2018 Estimated Earnings Release Date US Large-Cap: A, A
New World Development Company Limited SEHK:17 9/19/2018 Earnings Release Date China All-Cap: C
Darden Restaurants, Inc. DRI 9/20/2018 Earnings Release Date US Large-Cap: B, A
Thor Industries, Inc. THO 9/20/2018 Earnings Release Date US Large-Cap: D, D
SIG plc SHI 9/20/2018 Earnings Release Date China All-Cap: B

Source: S&P Capital IQ