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Global stocks dropping again today with Treasury yields flat

Oct 09, 2018

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US Stocks

  • Global stocks are declining as traders await where US Treasury yields settle this AM after yesterday’s bond market holiday 
  • US stocks index futures are pointing to a drop in US stocks on the open in NY with the Dow Jones minis -0.39%, S&P500 minis -0.43% and Nasdaq 100 minis –0.41% 
  • The IMF has formally downgraded its growth assessment for the United States, citing trade tensions between Washington & Beijing, fading impact from the tax cut and higher interest rates – growth forecast was revised down to 2.7% from 2.9% for CY2019
  • The VIX is moving up this morning and is currently at 16.91 after closing at 15.69 yesterday
  • SPY October 10 & November 16 OTM Puts, EWZ November 16 OTM Puts, AT&T (T) October 19 OTM Puts, and QQQ October 26 OTM Puts are the most heavily traded options contracts in the US pre-market
  • US 10-Year Treasury Bonds are lower with yields up 1.52 basis points to 3.248%
  • The US Treasury 2s-5s Spread has widened 1.26 basis points to 0.2%
  • The US Treasury 2s-10s Spread has widened 1.92 basis points to 0.37%
  • WTI Crude is currently little changed -0.07% to USD$74.29/bbl with the Brent-WTI spread up USD$1.54 to USD$10.74/bbl
  • Gold is currently little changed -0.12% to USD$1186.64/oz

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • Alphabet’s Google (GOOGL) found a software glitch in its Google+ social network that allowed developers access to millions of users’ personal data.  Google decided to inform the public yesterday for the first time, worried about the negative press it may garner.  Google found the flaw in March.  Google is rated ‘Neutral’ in both our US Large-Cap and US Information Technology Global Top Picks
  • Baker Hughes (BHGE) was upgraded at Jefferies to buy from hold.  Baker Hughes’ recent announcement that it acquired a 5% stake in Abnoc Drilling was cited as a reason for the upgrade.  Baker Hughes is rated ‘Top Short’ in our US Large-cap Global Top Picks
  • Daimler Geely Automotive (175 HK) is working with Daimler (DAI GR) to start a ride-hailing and car-sharing service in China.  This was reported in Bloomberg but has not been confirmed by the companies.  Geely owns 10% of Daimler.  Geely closed 5.2% lower at HKD$13.40 while Daimler is trading 0.90% lower at 54.11 euros.  Geely is rated ‘Neutral’ in out China All-Cap Global Top Picks and Daimler is rated ‘Unattractive’ on our European Large-Cap Global Top Picks 
  • General Electric (GE) won a USD$700mn contract to supply turbines and generators for Egypt’s first nuclear reactor.  General Electric will deliver four turbines, one per year 2023-2026.  The project is for a total of 4800 megawatts.  General Electric is rated “top Short’ in our US Large-Cap Global Top Picks and ‘Neutral’ in our US Industrials Global Top Picks
  • Pinnacle Foods (PF) reported preliminary adjusted net earnings of 77-79 cents per share while consensus is for 67 cents.  Pinnacle Foods has been executing productivity and cost management programs continuously.  There are 5 cents per share related to an insurance payment.  Pinnacle Foods is rated “Top Buy’ in both our US Large-Cap and US Consumer Staples Global Top Picks
  • Royal Mail (RMG LN) fell below its IPO price in morning trading after being downgraded by RBC.  Royal Mail traded below 330 pence, its IPO price, before rebounding and is presently trading .022% higher at 341.20 pence.  Royal Mail is rated ‘Unattractive’ in our United Kingdom All-cap Global Top Picks
  • Taiwan Semiconductor (TSEC) posted September sales of USD$3.06bn, up 7.2% y/y.  Year-to-date Taiwan Semiconductor has posted 6% growth in sales.   Taiwan Semiconductor closed 0.21% higher at 244 Taiwan dollars.  Taiwan Semiconductor is not rated in our Global Top Picks
  • Tata Motors (TTMT IN) shares fell 13.2% to 184.20 rupees after announcing it would shutter its Jaguar Land Rover factory for 2 weeks in October.  Tata Motors will close the plant due to the weak demand in China.  Last month sales fell 46% in China because of uncertainty on import duties.  Tata Motors is trading at its lowest level in 6 years.  Tata Motors is not rated in our Global Top Picks
  • Tencent (700 HK) has lost USD$220bn in market cap in 2018.  Tencent has fallen 38% year-to-date and has lost more value than any other company, ever, according to a report in Bloomberg today.  Since its IPO it returned 67,000% until January of this year when it began to give it back.  Tencent is rated ‘Attractive’ in our China All-cap Global Top Picks
  • Wirecard (WDI GR) is trading 1.7% higher at 171.15 euros after releasing its “Vision 2025” guidance.   Wirecard sees ~27% compound annual growth in transactions and ~28% compound annual ebitda growth.  The general comment from analysts has been that it is a new trajectory for growth.  Wirecard is rated ‘Top Buy’ in our European Large-Cap Global Top Picks

European Stocks

  • European stocks are declining again this morning, after opening in the black as the spat between the EU and the Italian coalition government continues to blunt investor sentiment
  • The Euro Stoxx 600 is currently down -0.44%, the FTSE 100 has declined -0.37%, the DAX has fallen -0.59%, and the CAC 40 is lower by -0.35%
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.42x
  • Oil & Gas (+0.87%), Real Estate (+0.69%), and Basic Resources (+0.56%) stocks are the top performers in the Euro Stoxx 600 today
  • Chemicals (-0.99%), Telecommunications (-0.98%), and Health Care (-0.95%) stocks are the worst performers in the Euro Stoxx 600 today
  • 5 stocks in the Euro Stoxx 600 are at 4-week highs while 264 stocks are at 4-week lows
  • 4 stocks in the Euro Stoxx 600 are overbought while 128 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 17.76 after closing at 17.63 yesterday
  • EUR€ is currently down -0.409% against the USD$ to 1.1445
  • GBP£ is currently down -0.29% against the USD$ to 1.3052
  • CHF is currently down -0.169% against the USD$ to 1.0059
  • German 10-Year Bunds are lower with yields up 2.1 basis points to 0.55%
  • UK 10-Year GILTs are lower with yields up 3.5 basis points to 1.709%

Asian Stocks

  • Asian stocks finished down in overnight trading, the seventh straight day of losses as escalating trade tensions between China and the United States, combining with rising US treasury yields, is spooking Asian traders
  • The Nikkei 225 finished down -1.32%, the Hang Seng ended down -0.11%, the Hang Seng China Enterprise up +0.26%, and the CSI 300 was -0.07%
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.13x
  • 23 stocks in the Nikkei 225 hit 4-week highs while 8 stocks reached 4-week lows
  • 35 stocks in the Nikkei 225 closed overbought while 3 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 1.38x
  • 3 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 7 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 0.161%
  • JGBs 2s-10s Spread has widened 0.2 basis points to 0.27%
  • JPY¥ is currently little changed against the USD$ at 113.15

*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 1684 8.14 -2 2 0.37% 2.5%
Microsoft Corp 1084 9.14 4 30 -0.13% 7.22%
Goldman Sachs Group Inc/The 784 8.43 -5 24 -0.58% 6.42%
Netflix Inc 683 8.86 0 -19 -0.07% 0.9%
Ford Motor Co 659 5.14 -3 -18 -1.5% -10.8%

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
Costco Wholesale Corp 299 9.71 2 1 2.61% 3.15%
Colgate-Palmolive Co 31 9.29 -2 -18 -0.55% -3.59%
Microsoft Corp 1084 9.14 4 30 -0.13% 7.22%
International Business Machines Corp 582 8.86 1 -4 0.06% 0.31%
Netflix Inc 683 8.86 0 -19 -0.07% 0.9%

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 11.86 73.21% 12.5 69.84% 1.05 19.64% 5.38 99.6% 5.85 98.41%
QQQ 19.46 88.89% 17.97 81.75% 0.92 6.35% 6.91 98.02% 6.03 96.83%
IWM 16.22 87.3% 15.5 79.37% 0.96 6.94% 5.27 94.44% 4.99 89.68%
FEZ 17.42 90.87% 16.71 89.68% 0.96 15.48% 4.45 90.48% 2.45 64.68%
EEM 20.69 88.89% 20.11 85.52% 0.97 12.7% 5.61 96.43% 2.22 64.88%

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
TYSON FOODS INC  -CL A TSN Consumer Staples Food Products 2.77% 7.26% -22.89%
WALGREENS BOOTS ALLIANCE INC WBA Consumer Staples Food & Staples Retailing 2.24% 2.31% 0.74%
EAGLE MATERIALS INC EXP Materials Construction Materials 1.79% -2.7% -33.48%
COMCAST CORP CMCSA Consumer Discretionary Media 1.78% -0.43% -13.81%
ZIONS BANCORPORATION ZION Financials Banks 1.78% 4.96% 4.06%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
BLACKBAUD INC BLKB Information Technology Software -3.84% -10.42% -4.32%
ADOBE SYSTEMS INC ADBE Information Technology Software -3.29% -7.85% 36.0%
GLOBAL PAYMENTS INC GPN Information Technology IT Services -3.29% -7.09% 16.89%
LIGAND PHARMACEUTICAL INC LGND Health Care Biotechnology -2.85% -9.65% 57.8%
WEX INC WEX Information Technology IT Services -2.83% -5.87% 28.29%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
TANDEM DIABETES CARE INC TNDM Health Care Health Care Equipment & Supplies -5.95% -10.52% 261.52%
WHITING PETROLEUM CORP WLL Energy Oil, Gas & Consumable Fuels -5.21% -17.39% 51.51%
TENABLE HOLDINGS INC TENB Information Technology Software -4.47% -10.18% 13.98%
SANGAMO THERAPEUTICS INC SGMO Health Care Biotechnology -4.0% -15.48% -21.04%
AUTODESK INC ADSK Information Technology Software -3.88% -6.16% 31.11%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
SOUTHWESTERN ENERGY CO SWN Energy Oil, Gas & Consumable Fuels 6.42% 9.5% -4.85%
ROWAN COMPANIES PLC RDC Energy Energy Equipment & Services 4.53% 4.1% 19.37%
CHESAPEAKE ENERGY CORP CHK Energy Oil, Gas & Consumable Fuels 4.15% 1.95% 13.02%
HERTZ GLOBAL HOLDINGS INC HTZ Industrials Road & Rail 3.27% 0.3% -33.79%
GENERAL ELECTRIC CO GE Industrials Industrial Conglomerates 3.21% 11.84% -25.2%

Source: S&P Capital IQ, StockDio

Cryptos

  • Citizens in Dubai will be able to purchase goods, services, and utilities with digital currencies after the Dubai Department of Economic Development and blockchain payment providers, Pundi X and Ebooc Fintech & Loyalty Labs, LLC, agreed to a new partnership. The partnership entails the development of terminals to facilitate a point of sale payments system across the country. Ebooc and Pundi X plan to roll out 100,000 terminals over the next three years that would utilize Emcash, the cryptocurrency stablecoin pegged to the United Arab Emirate’s fiat currency, the Dirham.  
  • GMO, a Japanese IT giant, announced Tuesday that it has begun preparation in launching a stablecoin pegged to the Japanese Yen, called GMO Japanese Yen (GJY). GMO plans to issue its stablecoin across Asian markets via Z.com, a cryptocurrency exchange subsidiary launched by GMO, beginning in 2019.  
  • Host of CNBC show Cryptotrader, Ran Neuner, claimed in a tweet this weekend that Bitcoin’s price, “is about to explode”. Neuner believes that a surge in Bitcoin’s price is near, citing the US Security and Exchange Commission’s upcoming decision regarding nine Bitcoin Exchange Traded Fund (ETF) applications. Neuner went on to add that he believes Bitcoin’s rally in 2017 from USD$6,692 on November 11th to USD$20,000 on December 17th was driven by expectations of the launch of cash settlement Bitcoin futures contracts.  
  • IBM is officially moving its food-tracking blockchain platform into production while signing European supermarket giant, Carrefour, to become a user of the blockchain. IBM’s IBM Food Trust will allow large companies as well as small and medium-sized enterprises in the food supply chain industry to join the platform for a monthly subscription fee ranging from USD$100 to USD$10,000. Carrefour, the first user of IBM Food Trust, currently operates 12,000 stores across 33 countries.  
  • The Emirates Securities and Commodities Authority (ESCA) has approved and is planning to introduce initial coin offerings (ICOs) to capital markets in 2019. According to a Reuters report, initial public offerings in the United Arab Emirates have been negatively impacted by “weak” equity markets and low oil prices, and regulators see this as a way for companies to diversify funding. The Emirates Securities and Commodities Authority also announced that they are working with the Abu Dhabi and Dubai stock markets to develop ICO trading platforms. 

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
Fastenal Company FAST 10/9/2018 Estimated Earnings Release Date US Large-Cap: A, US Industrials: C
Delta Air Lines, Inc. DAL 10/10/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: C
Walgreens Boots Alliance, Inc. WBA 10/11/2018 Earnings Release Date US Large-Cap: B, US Consumer Staples: B
Marriott Vacations Worldwide Corporation VAC 10/11/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
JPMorgan Chase & Co. JPM 10/12/2018 Earnings Release Date US Large-Cap: C
Citigroup Inc. C 10/12/2018 Earnings Release Date US Large-Cap: C
Wells Fargo & Company WFC 10/12/2018 Earnings Release Date US Large-Cap: C
The PNC Financial Services Group, Inc. PNC 10/12/2018 Earnings Release Date US Large-Cap: B
First Republic Bank FRC 10/12/2018 Earnings Release Date US Large-Cap: B
Texhong Textile Group Limited SEHK:2678 10/14/2018 Estimated Earnings Release Date China All-Cap: C
The Charles Schwab Corporation SCHW 10/14/2018 Estimated Earnings Release Date US Large-Cap: C
CLP Holdings Limited SEHK:2 10/14/2018 Earnings Release Date China All-Cap: B
Bank of America Corporation BAC 10/15/2018 Earnings Release Date US Large-Cap: C
Altaba Inc. AABA 10/15/2018 Estimated Earnings Release Date US Large-Cap: A, US Information Technology: D
Beacon Roofing Supply, Inc. BECN 10/15/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: A
Cree, Inc. CREE 10/15/2018 Estimated Earnings Release Date US Large-Cap: D, US Information Technology: B
J.B. Hunt Transport Services, Inc. JBHT 10/15/2018 Earnings Release Date US Large-Cap: B, US Industrials: A
Lam Research Corporation LRCX 10/15/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: A
Netflix, Inc. NFLX 10/15/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Omnicom Group Inc. OMC 10/15/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
China National Building Material Company Limited SEHK:3323 10/15/2018 Estimated Earnings Release Date China All-Cap: C
China Agri-Industries Holdings Limited SEHK:606 10/15/2018 Estimated Earnings Release Date China All-Cap: C

Source: S&P Capital IQ