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Global stocks advancing as the trade relief rally is buoying investor sentiment

Sep 21, 2018

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US Stocks

  • Global stocks are positive this morning, the risk-on mood in global markets continuing into the weekend 
  • US stocks index futures are moving higher, pointing to a positive open in NY with the Dow Jones minis +0.12% S&P500 minis +0.01% and Nasdaq 100 minis +0.05% 
  • Bloomberg is reporting that the SPDR S&P 500 ETF (SPY) experienced inflows of USD$2.52bn yesterday, an increased in fund assets of +0.9% -- the largest increase since February 2nd
  • The VIX is little changed this morning and is currently at 11.91 after closing at 11.8 yesterday
  • XLF September 21 & October 19 OTM Calls, SPY September 21 & December 2018 Calls and QQQ October 5 OTM Puts are the most heavily traded options contracts in the US pre-market
  • US 10-Year Treasury Bonds are lower with yields up 1.51 basis points to 3.0777%
  • The US Treasury 2s-10s Spread has widened 0.18 basis points to 0.26%
  • WTI Crude is currently down -0.45% to USD$70.8/bbl with the Brent-WTI spread up USD$1.1 to USD$8.16/bbl
  • Gold is currently little changed -0.16% to USD$1205.2/oz
  • Global oil prices are gaining ahead of an OPEC meeting over the weekend to discuss production increases 
  • The US Dollar index set to close the week 0.92%, the biggest drop in 7 months

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • Adobe (ADBE) announced it will acquire software firm Marketo Inc in a USD$4.75bn deal.  The deal is part of Adobe’s effort to expand further into advertising software and analytics.  This will be Adobe’s biggest deal ever.  Adobe is rated ‘Top Buy’ in both our US Large-Cap and US Information Technology Global Top Picks. 
  • Apple’s (AAPL) iPhone XS goes on sale today with expectations for another strong refresh cycle regardless of the fact that technological improvement in the XS over the X is one of the smallest advancements in the product’s history.   Apple is little changed in premarket trading, current at USD$220.35.  Apple is rated “Top Buy” in our US Large-Cap Global Top Picks and “Attractive” in our US Info Tech Global Top Picks.
  • CaixaBank of Spain announced it will sell its remaining 9.4% stake in Repsol (REP SM) in a 2-stage sale.  The sale is a continuation of its asset sales freeing up the amount of cash tied up in its equity investments.  Caixa will take a USD530mn charge with the sale.  The stake is valued at 2.5bn euros.  Repsol is falling 2.5% at 16.45 euros on the news.  Repsol is rated ‘Top Buy’ in our European Large-Cap Global Top Picks
  • Just Eat (JE LN) is down 6.52% to £665.00 following news of a possible acquisition of Deliveroo by Uber.  The combination of Uber and Deliveroo has the potential of ramping up competition in the European food delivery business and pressuring Just Eat margins.  Just Eat is rated “Attractive” in our UK Global Top Picks.
  • Micron (MU) provided guidance for revenue for the coming quarter that was below consensus.  Revenue will come at USD$7.9-8.3bn according to the company while the Street has been expecting USD$8.45bn.  Profit of USD$2.95 per share is below USD$307 consensus.  Micron is rated ‘Top Buy’ in both our US Large-Cap and US Information Technology Global Top Picks. 
  • New World Development (17 HK) rose 5.8% to close at HKD$29.33 after an upgrade from JP Morgan.  The stock was raised to overweight from neutral with the bank citing an attractive valuation and the expectation of strong results in 2019.  The stock is rated ‘Neutral’ in our China All-cap Global Top Picks
  • The UK National Crime office is opening an investigation after Danske Bank (DANSKE DC) cited the UK as the second-biggest source of foreign clients of its Estonian branch where the money laundering investigation is centered.  This came out in Danske’ own report and the UK is acting on this finding.  Danske is trading 1.3% lower at 174.65 kronos.  Danske is rated “Top Short’ in our European Large-Cap Global Top Picks
  • Bloomberg Intelligence is reporting that Samsung (005930 KS) is curtailing chip production next year in an effort to keep prices high.  The preference is for continued high prices as opposed to a gain in market share, according to the report.  Korean chip stocks were strong on the news with Samsung closing 0.32% higher at 47400 won.  Samsung is not rated in our Global Top Picks.
  • Smiths Group (SMIN LN) is trading 5.7% lower at 15.01 pounds after JP Morgan downgraded the stock in the wake of weak results.  The company outlook for 2019 was more cautious than expected and was cited in the downgrade to neutral from overweight.  Smiths Group is rated ‘Unattractive’ in our United Kingdom Large-Cap Global Top Picks
  • Yes Bank (YES IN) fell 28% to 227 rupees after the Royal Bank of India, its regulator, said it will not allow its founder and CEO to remain in the top spot past January.  Selling followed the announcement on fear the bank will not be able to raise fresh capital.   Yes Bank is rated ‘Attractive’ in our India All-Cap Global Top Picks

European Stocks

  • European stocks are advancing again this AM, as the trade relief rally has put the benchmark Euro Stoxx 50 on pace for a 2.50% weekly gain
  • The Euro Stoxx 600 is currently up +0.51%, the FTSE 100 is higher by +1.07%, the DAX has advanced +0.72%, and the CAC 40 has risen +0.76%
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 2.66x
  • Basic Resources (+1.6%), Insurance (+1.14%), and Automobiles & Parts (+1.14%) stocks are the top performers in the Euro Stoxx 600 today
  • Real Estate (-0.21%), Media (+0.04%), and Health Care (+0.12%) stocks are the worst performers in the Euro Stoxx 600 today
  • 114 stocks in the Euro Stoxx 600 are at 4-week highs while 68 stocks are at 4-week lows
  • 31 stocks in the Euro Stoxx 600 are overbought while 27 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 12.63 after closing at 13.18 yesterday
  • EUR€ is currently little changed against the USD$ at 1.1768
  • GBP£ is currently down -0.588% against the USD$ to 1.3187
  • CHF is currently up +0.269% against the USD$ to 1.0456
  • German 10-Year Bunds are higher with yields down -0.7 basis points to 0.464%
  • UK 10-Year GILTs are higher with yields down -0.4 basis points to 1.581%

Asian Stocks

  • Asian stocks closed positive overnight, with Chinese stocks positing their best weekly gain since 2016 
  • According to state documents, the Chinese government is ordering policies and resources to be directed towards the tourism and sports industries to help boost domestic consumption
  • The Nikkei 225 finished up +0.82%, the Hang Seng ended up +1.73%, the Hang Seng China Enterprise up +2.17%, and the CSI 300 was +3.03%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 4.49x
  • 94 stocks in the Nikkei 225 hit 4-week highs while 0 stocks reached 4-week lows
  • 54 stocks in the Nikkei 225 closed overbought while 2 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 3.55x
  • 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 1 stock closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are lower with yields up 1 basis points to 0.133%
  • JGBs 2s-10s Spread has widened 1.3 basis points to 0.24%
  • JPY¥ is currently up +0.204% against the USD$ to 112.72

*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
Ford Motor Co 360 8.71 0 -7 0.53% -14.71%
Microsoft Corp 321 9.57 1 24 0.22% 6.41%
Netflix Inc 268 7.86 -3 -26 -1.25% 1.66%
Visa Inc 266 9.57 0 7 0.02% 3.32%
Goldman Sachs Group Inc/The 197 7.43 -2 8 0.0% 7.08%

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
General Motors Co 67 10 -1 -6 -0.22% -6.9%
Procter & Gamble Co/The 25 10 0 -14 -0.09% -0.64%
Accenture PLC 34 9.71 -1 15 -0.0% 2.25%
Walmart Inc 134 9.71 7 5 -1.14% -0.27%
Starbucks Corp 67 9.57 -9 -9 -1.0% -0.22%

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 8.31 28.57% 10.73 40.48% 1.29 87.1% 2.07 66.27% 3.37 74.8%
QQQ 13.96 47.02% 16 59.52% 1.15 78.37% 1.71 56.35% 3.23 75.4%
IWM 11.15 7.14% 12.7 11.31% 1.14 84.33% 4.09 86.31% 2.48 49.6%
FEZ 13.23 58.73% 14 57.14% 1.06 42.26% -2.08 21.43% -1.06 25.4%
EEM 17.44 63.1% 18.94 73.81% 1.09 71.23% -1.93 23.02% 0.11 39.68%

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
STERLING BANCORP STL Financials Banks 2.86% 4.21% -4.79%
NEXSTAR MEDIA GROUP NXST Consumer Discretionary Media 2.83% 1.65% 8.54%
FIRSTCASH INC FCFS Financials Consumer Finance 2.78% 0.55% 19.49%
WALGREENS BOOTS ALLIANCE INC WBA Consumer Staples Food & Staples Retailing 2.23% 3.36% -0.97%
BLACKBAUD INC BLKB Information Technology Software 2.05% -1.06% 8.17%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
NORTHROP GRUMMAN CORP NOC Industrials Aerospace & Defense -3.54% -0.66% -0.18%
LIGAND PHARMACEUTICAL INC LGND Health Care Biotechnology -2.45% 0.76% 62.03%
DARDEN RESTAURANTS INC DRI Consumer Discretionary Hotels, Restaurants & Leisure -1.23% -2.04% 21.02%
NORFOLK SOUTHERN CORP NSC Industrials Road & Rail -0.76% 3.77% 24.09%
CDK GLOBAL INC CDK Information Technology Software -0.49% 0.03% -11.02%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
AVALARA INC AVLR Information Technology Software -4.88% -2.03% -6.29%
CALIFORNIA RESOURCES CORP CRC Energy Oil, Gas & Consumable Fuels -4.66% 1.57% 65.78%
HERTZ GLOBAL HOLDINGS INC HTZ Industrials Road & Rail -4.14% -2.2% -22.49%
NATIONAL OILWELL VARCO INC NOV Energy Energy Equipment & Services -3.55% -3.12% 15.72%
GENERAL ELECTRIC CO GE Industrials Industrial Conglomerates -3.16% -1.04% -34.02%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
ACADIA PHARMACEUTICALS INC ACAD Health Care Biotechnology 23.55% 32.84% -46.52%
TANDEM DIABETES CARE INC TNDM Health Care Health Care Equipment & Supplies 7.77% -16.98% 283.32%
TENABLE HOLDINGS INC TENB Information Technology Software 7.2% 4.86% 18.18%
CIRRUS LOGIC INC CRUS Information Technology Semiconductors & Semiconductor Equipment 4.42% 2.36% -27.93%
ROWAN COMPANIES PLC RDC Energy Energy Equipment & Services 4.33% 8.66% 7.67%

Source: S&P Capital IQ, StockDio

Cryptos

  • A candidate for a local government position in Taiwan has made history, becoming the first politician ever to receive a campaign donation in Bitcoin. Hsiao Hsin-chen, who is running for a seat on Taipei’s City Council with the New Power Party ticket, received a donation in Bitcoin worth about USD$325 a month after the party announced it would accept cryptocurrency donations.  
  • California’s Fair Political Practices Commission, the state’s political watchdog, has ruled that political candidates will not be allowed to accept donations in cryptocurrencies like Bitcoin. The vote on the issue occurred Thursday and favored the ban 3-1 with one individual abstaining.  
  • The Co-Director of Enforcement for the US Securities and Exchange Commission (SEC), Stephanie Avakian, vowed in a speech Thursday that the regulatory agency is going to practice more substantial enforcement of illegal ICOs. Avakian went on to mention that ICO’s are often high-risk investments masked by unrealistic assurances. 
  • The US Securities and Exchange Commission (SEC) requested further comments regarding its decision on the listing and trading of a Bitcoin exchange traded fund (ETF) in a release Thursday. The Bitcoin ETF is backed by investment firm VanEck and financial company SolidX, with the initial request filed on June 6th of this year. In the SEC’s release, the regulating authority notes that it has not reached any conclusions on the Bitcoin ETF and asks for interested parties to send comments to the SEC in regards to the sufficiency and viability of a Bitcoin ETF.  
  • Two of the largest cryptocurrency exchanges in the world, Coinbase and Binance, have been on hiring sprees of late despite a heavy bear market in cryptos. In an interview with Bloomberg, Binance’s Chief Financial Officer, Wei Ahou, said the company is in the process of hiring 50 new employees for its new headquarters in Malta while it is also recruiting for its fiat-to-crypto exchange in Singapore. Last week, Coinbase announced it would be hiring about 80 employees for its new headquarters in NYC. 

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
Santana Minerals Limited SMI 9/21/2018 Estimated Earnings Release Date China All-Cap: C
Florin Mining Investment Company Limited FMI 9/22/2018 Estimated Earnings Release Date US Large-Cap
Carnival Corporation CCL 9/23/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
Top Education Group Ltd SEHK:1752 9/23/2018 Earnings Release Date China All-Cap: F
China Internet Nationwide Financial Services Inc. CIFS 9/24/2018 Estimated Earnings Release Date China All-Cap: C
FactSet Research Systems Inc. FDS 9/25/2018 Earnings Release Date US Large-Cap: A
Jabil Inc. JBL 9/25/2018 Earnings Release Date US Large-Cap: B, US Information Technology: A
NIKE, Inc. NKE 9/25/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: B
Cintas Corporation CTAS 9/25/2018 Earnings Release Date US Large-Cap: B, US Industrials: C
KB Home KBH 9/25/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: D
CarMax, Inc. KMX 9/25/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Cantel Medical Corp. CMD 9/27/2018 Earnings Release Date US Large-Cap: B
McCormick & Company, Incorporated MKC 9/26/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Staples: A
Solartech International Holdings Limited SEHK:1166 9/26/2018 Earnings Release Date China All-Cap: D
iKang Healthcare Group, Inc. KANG 9/27/2018 Earnings Release Date China All-Cap: C
Conagra Brands, Inc. CAG 9/27/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: B

Source: S&P Capital IQ