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Rout in Global stocks stretches into second day with little reaction from risk-haven assets

Oct 11, 2018

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US Stocks

  • The rout in global stocks continues into its second day with little movement in risk-haven assets like Gold and the Yen 
  • US stocks index futures are dropping ahead of the open in NY with the Dow Jones minis -0.81%, S&P500 minis -0.73% and Nasdaq 100 minis –0.67%
  • The VIX is little changed this morning and is currently at 23.92 after closing at 22.96 last week
  • SPY October 19 & November 16 OTM Puts and QQQ October 19 OTM Puts are the most heavily traded options contracts in the US pre-market 
  • While demand for puts are increasing, one-month skew on S&P 500 options has not jumped up, suggesting there hasn’t been a panic to put on downside hedging trades
  • US 10-Year Treasury Bonds are lower with yields up 0.2 basis points to 3.1649%
  • The US Treasury 2s-10s Spread has narrowed 0.43 basis points to 0.32%
  • The 2s-10s Spread has widened from a 3-year low of 18.96 bps reached in August 2018
  • WTI Crude is currently down -2.39% to USD$73.17/bbl with the Brent-WTI Spread up USD$0.75 to USD$8.29/bbl
  • Gold is currently up 0.87% to USD$1205.2/oz
  • The 2-day drop in global oil prices is it biggest fall since July 2018

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • Alibaba (BABA) has invested in lidar developer RoboSense, maker of the laser distance reading sensors.  Lidar is a critical component in driverless cars and the round of investors included SAIC Motor Corp.  Robosense is seeking to develop cheaper lidar to compete with existing players.  Alibaba is rated ‘Attractive’ in our China All-Cap Global Top Picks, SAIC Motor Corp is not rated in our Global Top Picks
  • Aston Martin (AML LN), fresh off its IPO, was initiated at Jefferies today with an underperform rating, Jefferies said Aston Martin missed a chance to start its public company life on the right foot, instead choosing a “secondary only” with only a 6-month lock-up.  However, Jefferies sees Aston Martin’s growing revenue at 22% CAGR.  Aston Martin is trading 6.9% lower at 1484.60 pence.  Aston Martin is not rated in our Global Top Picks
  • Apple (AAPL) signed a deal with Dialog Semiconductor Plc (DLG GY) to license its power management technology.  Dialog Semiconductor is trading 24% higher today at 20.66  euros.  Apple will also acquire about 300 members of its staff.  Apple also signed contracts with Dialog Semiconductor for audio subsystems, charging and mixed-signal integrated circuits for delivery over the coming years.  Apple is rated ‘Top Buy’ in our US Large-Cap Global Top Picks and ‘Attractive’ in our US Information Technology Global Top Picks.  Dialog Semiconductor is not rated in our Global Top Picks 
  • BMW (BMW GR) said it will be investing USD$4.1bn into its joint venture in China with Brilliance China Automotive Holding Ltd.  BMW is taking advantage of new regulations allowing foreign players to take control of JVs in China.  BMW intends to increase its stake to 75% in the JV.  BMW is 0.47% lower at 74.25 euros.  BMW is rated ‘Unattractive’ in our European Large-Cap Global Top Picks
  • Fast Retailing (9983 JP), owner of Uniqlo and GU, said its operating profit this year will grow 14% to 270 billion yen.  Fast Retailing is expanding aggressively beyond Japan and expects ex-Japan sales to grow much stronger than sales in its home market.   Fast Retailing expects its Uniqlo brand to focus expansion on China, Southeast Asia, and the US.   Fast Retailing closed 4.3% lower at 57260 yen.  Fast Retailing is rated ‘Top Buy’ in our Japan Large-Cap Global Top Picks 
  • Faurecia (EO FP) reported 3Q sales growth of 8.3% at constant F/X saying all three business groups posted solid growth.  Faurecia said it outperformed the broader market “despite some market headwinds in Europe and Asia,” according to the company.  Faurecia is 1.2% lower at 45.53 euros despite the good news.  Faurecia is rated ‘Unattractive’ in our European Large-Cap Global Top Picks
  • Fluor (FLR) delivered preliminary 3Q results well below consensus and the stock traded 6.5% lower in post-market trading at $52.54.  Fluor reported 3Q revenue of approximately USD$4.6bn while consensus was for USD$4.95bn.  Fluor will provide further details when complete results are published.  Fluor is rated ‘Neutral’ in our US Large-Cap Global Top Picks and ‘Top Short’ in our US Industrials
  • Hays Plc (HAS LN) shares are 12.1% lower at 154.80 pence in the wake of a downgrade of estimates from Jefferies.  Hays Pls will see 9% net fee growth in 1Q, down 2 percentage points.  Jefferies sees Hays suffering from slower momentum in the countries where it operates.  Hays Plc is rated ‘Unattractive’ in our United Kingdom All-Cap Global Top Picks
  • Square (SQ) share fell 10.2% in trading yesterday and then another 9.8% post-market on news its CFO is leaving.  CFO Sarah Friar is leaving to join Nextdoor as CEO.  Analysts comments have generally seen the move as amicable and with a deep bench, Credit Suisse is suggesting to use the weakness to accumulate Square.  Square is rated ‘Top Short’ in both our US Large-Cap and US Information Technology Global Top Picks 

European Stocks

  • European stocks are declining again this morning, slumping to their lowest levels since January 2017  
  • The Euro Stoxx 600 is currently down -1.88%, the FTSE 100 has declined -1.81%, the DAX has fallen -1.44%, and the CAC 40 is lower by -1.63%
  • Italian stocks are set to enter a bear market after dropping nearly 20% since hitting a 5-year high in May 2018
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.08x
  • Telecommunications (-0.61%), Real Estate (-1.09%), and Media (-1.21%) stocks are the top performers in the Euro Stoxx 600 today
  • Oil & Gas (-3.04%), Financial Services (-2.64%), and Insurance (-2.51%) stocks are the worst performers in the Euro Stoxx 600 today
  • 19 stocks in the Euro Stoxx 600 are at 4-week highs while 306 stocks are at 4-week lows
  • 4 stocks in the Euro Stoxx 600 are overbought while 225 stocks are oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, is moving up this morning and is currently at 21.66 after closing at 18.4 yesterday
  • The VSTOXX is now at the highest levels since March 2018
  • EUR€ is currently up +0.451% against the USD$ to 1.1572
  • GBP£ is currently little changed against the USD$ at 1.3211
  • CHF is currently up +0.287% against the USD$ to 1.0128
  • German 10-Year Bunds are higher with yields down -4 basis points to 0.512%
  • UK 10-Year GILTs are higher with yields down -4.7 basis points to 1.681%

Asian Stocks

  • Asian stocks plunged overnight, following the drop in US markets in yesterday’s trading session 
  • Chinese stocks dropped the most since February 2016 with over 1,000 stocks falling by the daily limit
  • The Nikkei 225 finished down 3.89%, the Hang Seng ended down -3.54%, the Hang Seng China Enterprise declined -3.35%, and the CSI 300 was -4.8%
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0x
  • 6 stocks in the Nikkei 225 hit 4-week highs while 19 stocks reached 4-week lows
  • 19 stocks in the Nikkei 225 closed overbought while 4 stocks closed oversold according to the 16-day RSI Measure
  • 3 stocks in the Hang Seng hit 4-week highs while 11 stocks reached 4-week lows
  • 1 stock in the Hang Seng closed overbought while 6 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are higher with yields down -1 basis points to 0.146%
  • JGBs 2s-10s Spread has narrowed 0.8 basis points to 0.26%
  • JPY¥ is currently little changed against the USD$ at 112.15

*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 1736 7.86 -2 3 2.87% 0.25%
Microsoft Corp 1244 8.71 4 30 -0.13% 7.15%
Goldman Sachs Group Inc/The 739 7.71 -5 24 -1.25% 5.5%
Netflix Inc 706 8.57 0 -19 -1.61% 0.24%
Ford Motor Co 660 5.57 -3 -18 -2.95% -12.11%

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
Colgate-Palmolive Co 36 9 -2 -18 -0.85% -3.88%
Microsoft Corp 1244 8.71 4 30 -0.13% 7.15%
Netflix Inc 706 8.57 0 -19 -1.61% 0.24%
International Business Machines Corp 659 8.43 1 -4 0.06% 0.65%
Starbucks Corp 224 8.43 -1 -9 0.06% 1.56%

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 17.33 94.84% 14.56 87.3% 0.84 1.98% 4.75 98.81% 5.27 96.43%
QQQ 24.91 96.83% 20.96 94.84% 0.84 0.99% 5.6 90.67% 6.09 96.83%
IWM 20.21 97.62% 17.54 94.84% 0.87 1.39% 6.18 97.62% 5.62 96.03%
FEZ 18.86 94.84% 18.1 96.83% 0.96 16.07% 4.24 88.1% 3.33 71.83%
EEM 24 97.22% 21.95 96.43% 0.91 1.98% 6.01 98.02% 3.24 77.38%

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
PUBLIC SERVICE ENTRP GRP INC PEG Utilities Multi-Utilities 0.85% 4.73% 9.38%
DOLLAR GENERAL CORP DG Consumer Discretionary Multiline Retail 0.46% 0.9% 12.71%
CBOE GLOBAL MARKETS INC CBOE Financials Capital Markets 0.12% -0.12% -15.56%
PPL CORP PPL Utilities Electric Utilities 0.1% 2.97% 3.92%
SERVICEMASTER GLOBAL HLDGS SERV Consumer Discretionary Diversified Consumer Services 0.07% 7.74% 66.16%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
LIGAND PHARMACEUTICAL INC LGND Health Care Biotechnology -9.44% -19.15% 43.42%
BLACKROCK INC BLK Financials Capital Markets -7.44% -10.58% -15.91%
FASTENAL CO FAST Industrials Trading Companies & Distributors -7.4% -11.69% -3.29%
ADOBE SYSTEMS INC ADBE Information Technology Software -6.61% -12.84% 29.18%
MASTERCARD INC MA Information Technology IT Services -6.43% -12.5% 26.38%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
ROKU INC ROKU Consumer Discretionary Household Durables -13.33% -25.12% 8.08%
TENABLE HOLDINGS INC TENB Information Technology Software -12.27% -23.51% -0.73%
SUPERIOR ENERGY SERVICES INC SPN Energy Energy Equipment & Services -10.01% -10.11% -3.32%
CALIFORNIA RESOURCES CORP CRC Energy Oil, Gas & Consumable Fuels -9.91% -21.76% 69.86%
ROWAN COMPANIES PLC RDC Energy Energy Equipment & Services -9.63% -1.48% 14.95%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
PENNEY (J C) CO JCP Consumer Discretionary Multiline Retail 6.38% 9.42% -67.61%
BLOOM ENERGY CORP-REDH BE Industrials Electrical Equipment 5.37% -9.39% 9.68%
PATTERSON COMPANIES INC PDCO Health Care Health Care Providers & Services 3.04% 2.83% -41.05%
AVALARA INC AVLR Information Technology Software 1.71% -7.67% -28.69%
HEALTHCARE REALTY TRUST INC HR Real Estate Equity Real Estate Investment Trusts (REITs) 0.03% 3.4% -7.84%

Source: S&P Capital IQ, StockDio

Cryptos

  • A report published by technology news site, The Information, reveals that multiple ivy league schools and other prestigious universities have invested in at least one cryptocurrency fund. While citing an unnamed source, the report detailed that Harvard University, Stanford University, Dartmouth College, Massachusetts Institute of Technology, and the University of North Carolina have all invested capital into the cryptocurrency space. Earlier this week, Yale was revealed to have invested funds from their endowment into cryptocurrencies.  
  • A study conducted by Chainalysis, a blockchain research firm, concludes that ‘whales’ are not the cause of volatility in Bitcoin. The study looked at the 32 largest Bitcoin wallets, which combined hold roughly 1 million Bitcoin (USD$6.3 billion). Chainalysis’ study revealed that only about 1/3 of Bitcoin ‘whales’ are active traders. The study reads, “Bitcoin whales are a diverse group, and only about 1/3 of them are active traders. And while these trading whales certainly have the capability of executing transactions large enough to move the market, they have, on net, traded against the herd, buying on price declines.  
  • Cryptocurrency exchange, eToro, announced a massive slash in transaction fees for trading digital assets on their platform. This is part of an ongoing effort by eToro to increase awareness of the potential of cryptocurrencies and to make investing in digital assets more accessible to retail investors. While speaking in regards to the transaction fee cut, eToro EO, Yoni Assia, expressed that he wants to make it, “as simple and accessible as possible”, for investors to trade cryptocurrencies. 

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
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
SUPERVALU INC. SVU 10/15/2018 Estimated Earnings Release Date US Large-Cap: D, US Consumer Staples: 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
The Progressive Corporation PGR 10/15/2018 Earnings Release Date US Large-Cap: A

Source: S&P Capital IQ