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Global stocks rallying to start the week as focus shifts back to historically strong 3Q earnings season

Oct 29, 2018

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US Stocks

  • Global stocks are rallying to start the week as markets shift their focus back to a strong C3Q earnings season for US stocks 
  • US stocks index futures are pointing to be a bounce back in US markets to start the week with the Dow Jones minis +0.53%, S&P500 minis +0.88% and Nasdaq 100 minis +1.18%
  • The VIX is little changed this morning and is currently at 23.51 after closing at 24.16 last week
  • On Friday, the VXX ETN saw inflows of USD$117.59mm -- the VXX is an ETN that gives investors “long” exposure to the VIX through the use of VIX futures 
  • SPY November 16 OTM Puts, EEEM November 16 OTM Puitgs, and GE January 2019 OTM Puts are the most heavily traded options contracts in US pre-market trading
  • US 10-Year Treasury Bonds are lower with yields up 0.76 basis points to 3.0831%
  • The US Treasury 2s-10s Spread has widened 0.35 basis points to 0.27%
  • WTI Crude is currently up 0.39% to USD$67.59/bbl with the Brent-WTI spread down USD$-0.88 to USD$9.29/bbl
  • Gold is currently down -0.36% to USD$1229.1/oz

Stocks Trending in the News

Click name for Q-Factor breakdown, latest price details, more financial info and sentiment data.
 

  • Apple (AAPL) is reinitiated as “Buy” at Jefferies with a price target of USD$265, implying an additional 23% upside from current price levels.  At the moment, Apple has 30 buys, 16 holds and 2 sells across different Street analysts.  Apple is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Info Tech Global Top Stock Ideas. 
  • BASF SE (DB:BAS) has its price target cut to 95 Euros from 105 Euros at Credit Suisse.  The investment bank keeps its “Outperform” rating for BASF SE but after the recent 3Q earnings missing, Credit Suisse remains concerned aboutr the increasing challenges to the demand outlook for BASF SE.  BASF SE is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 
  • HSBC Holdings (LSE:HSBA) reports C3Q results which came in ahead of Street expectations.  Adjusted revenues grew 9% Y/Y in the quarter while costs only grew +2% Y/Y for HSBC in C3Q.  The improvement in top-line, combined with a continued focus on cost cutting is boost investor sentiment for the stock.  HSBC is rated “Unattractive” in our United Kingdom Global Top Stock Ideas.
  • Red Hat (RHT) is set to be acquired by IBM (IBM) in a USD$33 billion takeover, the second-largest technology deal ever.  The deal is an all cash deal.  IBM hopes the acquisition of Red Hat helps it catch up with cloud computing market leaders Amazon (AMZN) and Microsoft (MSFT).  Red Hat is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Info Tech Global Top Stock Ideas.  IBM is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Info Tech Global Top Stock Ideas.
  • Sony’s (TSE:6758, ADR:SNE) Playstation 4 (PS4) unit is enjoying an unusually strong product cycle, selling more than 4 times the number of consoles than Microsoft’s XBOX One.  Sony’s position in the console gaming industry should help the company weather the upcoming shift to cloud gaming, where games are delivered via a cloud console, rather than on a local piece of hardware.  Sony PS4 has sold 84 million unites vs. 39 million units for the Microsoft XBOX One as a point of reference.  Sony is rated “Neutral” in our Japan Large-Cap Global Top Stock Ideas.
  • Tencent (SEHK:700, ADR:TCEHY) subsidiary Futu Securities, an online brokerage focused on Chinese and Hong Kong investors which filed from an IPO last week, is seeing more competition in public markets after Tiger Brokers, a Chinese online brokerage backed by Jim Rogers, has announced a USD$200mm IPO.  Tencent is rated “Attractive” in our China All-Cap Global Top Stock Ideas.
  • European auto stocks Volkswagen (XTRA:VOW3), Daimler AG (XTRA:DAI) and BMW(DB:BMW) are up on news that the National Development and Reform Commission, the top economic planning committee in China, is considering cutting the sales tax on new car purchases in half.  Volkswagen is rated “Neutral”, Daimler is rated “Unattractive, and BMW is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.

 

 

European Stocks

  • European stocks appear to have found a “bid” to start the week following better than expected earnings from HSBC Holdings (HSBA LN) and a rally in European auto stocks following news that Chinese officials are considering cutting the sales tax applied to new car sales in half 
  • German political landscape further upset as CDU and SPD lose big in Hesse election.  Greens and AfD gain, but AfD less than expected.  Merkel, after 2 decades as chair of the CDU, will resign as chair in December
  • The Euro Stoxx 600 is currently up +0.96%, the FTSE 100 is higher by +1.32%, the DAX has advanced +1.21%, and the CAC 40 has risen +0.26%
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 4.61x
  • Banks (+1.81%), Health Care (+1.65%), and Automobiles & Parts (+1.37%) stocks are the top performers in the Euro Stoxx 600 today
  • Food & Beverage (-0.03%), Personal & Household Goods (+0.16%), and Retail (+0.19%) stocks are the worst performers in the Euro Stoxx 600 today
  • 8 stocks in the Euro Stoxx 600 are at 4-week highs while 161 stocks are at 4-week lows
  • 4 stocks in the Euro Stoxx 600 are overbought while 169 stocks are oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, is  moving down this morning and is currently at 21.83 after closing at 23.74 yesterday
  • EUR€ is currently little changed against the USD$ at 1.1388
  • GBP£ is currently little changed against the USD$ at 1.2821
  • CHF is currently down -0.299% against the USD$ to 0.9999
  • German 10-Year Bunds are lower with yields up 3.6 basis points to 0.388%
  • UK 10-Year GILTs are lower with yields up 2.1 basis points to 1.404%

Asian Stocks

  • Asian stocks finished little changed in overnight trading with traders unsure of directional bias 
  • The Nikkei 225 finished down --0.16%, the Hang Seng ended up +0.38%, the Hang Seng China Enterprise declined -0.46%, and the CSI 300 was -3.05%
  • Chinese stocks were the only notable major Asian market which found a directional bias, down, as traders continue to debate the impact of a decelerating outlook for domestic consumer demand
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 1.21x
  • 1 stocks in the Nikkei 225 hit 4-week highs while 146 stocks reached 4-week lows
  • 0 stocks in the Nikkei 225 closed overbought while 70 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 1.5x
  • 2 stocks in the Hang Seng hit 4-week highs while 16 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 higher with yields down -0.3 basis points to 0.11%
  • JGBs 2s-10s Spread has widened 0.1 basis points to 0.23%

 

*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 1808 7 -3 2 2.97% 3.09%
Microsoft Corp 1592 7.14 6 31 4.61% 5.01%
Netflix Inc 1096 6.71 -8 -9 -1.28% -2.09%
Morgan Stanley 814 6.14 6 5 4.74% 3.65%
Intel Corp 752 6.14 -2 28 8.9% 8.86%

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
Berkshire Hathaway Inc 111 8.43 -1 5 -99.93% -99.93%
Capital One Financial Corp 53 8.29 3 17 3.09% 3.24%
Visa Inc 452 7.71 2 21 4.65% 4.72%
Ford Motor Co 721 7.43 -10 -19 0.26% -2.6%
Walt Disney Co/The 321 7.43 -4 -18 -2.95% -0.66%

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 20.83 98.41% 19.36 99.21% 0.93 4.17% -0.77 28.77% 5.26 95.24%
QQQ 28.3 100.0% 23.69 99.01% 0.84 1.59% -4.27 14.29% 2.64 55.56%
IWM 26.48 99.6% 22.71 100.0% 0.86 1.98% 2.87 61.51% 6.54 98.81%
FEZ 21.69 97.22% 19.44 97.22% 0.9 7.94% 4.12 84.92% 2.59 69.44%
EEM 26.72 99.6% 24.37 99.6% 0.91 2.78% -0.01 47.62% 2.51 72.22%

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
FIRSTCASH INC FCFS Financials Consumer Finance 2.7% -1.44% 13.18%
REPUBLIC SERVICES INC RSG Industrials Commercial Services & Supplies 2.28% -3.04% 6.47%
VERISIGN INC VRSN Information Technology Internet Software & Services 2.06% -1.94% 23.64%
INVESTORS BANCORP INC ISBC Financials Banks 1.95% -3.25% -21.78%
SEI INVESTMENTS CO SEIC Financials Capital Markets 1.74% -1.14% -28.14%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
MOODY'S CORP MCO Financials Capital Markets -9.07% -12.05% -2.36%
DISCOVER FINANCIAL SVCS DFS Financials Consumer Finance -8.25% -12.02% -11.77%
MSCI INC MSCI Financials Capital Markets -4.51% -7.49% 12.0%
BROADCOM INC AVGO Information Technology Semiconductors & Semiconductor Equipment -4.18% -6.86% -19.7%
WEX INC WEX Information Technology IT Services -4.14% -7.54% 19.35%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
SEATTLE GENETICS INC SGEN Health Care Biotechnology -16.7% -26.11% -1.49%
SNAP INC SNAP Information Technology Software -10.71% -8.1% -86.73%
FIRST SOLAR INC FSLR Information Technology Semiconductors & Semiconductor Equipment -10.0% -16.81% -58.14%
ALTICE USA INC ATUS Consumer Discretionary Media -7.48% -17.35% -23.47%
GREENSKY INC GSKY Information Technology IT Services -5.82% -18.32% -66.96%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
ESPERION THERAPEUTICS INC ESPR Health Care Biotechnology 12.42% -7.14% -46.24%
GARDNER DENVER HOLDINGS INC GDI Industrials Machinery 6.12% 2.36% -25.55%
PATTERSON-UTI ENERGY INC PTEN Energy Energy Equipment & Services 5.72% 0.12% -35.33%
SUPERIOR ENERGY SERVICES INC SPN Energy Energy Equipment & Services 4.64% -10.46% -21.43%
SANGAMO THERAPEUTICS INC SGMO Health Care Biotechnology 3.32% -5.47% -28.86%

Source: S&P Capital IQ, StockDio

Cryptos

  • A joint report released by the British Business Federation Authority (BBFA), venture capital fund, Novum Insights, and cryptocurrency exchange, TodaQ, urges that UK regulators use caution in instituting far-reaching regulation. BBFA Chief Executive, Patrick Curry, said to Cointelegraph is regards to UK crypto regulation, “It is a very blunt instrument approach and I haven’t seen this in other countries.” This news comes after Members of Parliament that sit on the UK Treasury Committee called for increased cryptocurrency regulation to protect investors and urged the Financial Conduct Authority to supervise cryptocurrencies. 
  • Japanese cryptocurrency exchange, Coincheck, saw its revenue fall 66% in CY3Q2018. Acvquired by Monex Group, Inc. on April 16th, 2018, Coincheck is the notable Japanese cryptocurrency exchange that was hacked for USD$532 million of digital assets in January 2018. According to Monex CEO, Oki Matsumoto, Coincheck is still awaiting a license from Japanese regulators to operate as a cryptocurrency exchange in the country. Coincheck’s quarterly report discusses the revenue loss, saying, “Since service suspension in January 2018, Coincheck only allowed existing customers to sell their cryptocurrency. The limited revenue stream resulted in segment loss of 0.6bn yen (USD$5.3 million). Coincheck has improved governance, internal controls and internal audits, aiming for full service resumption.” 
  • Jason Hsu, known as Taiwan’s, “Crypto Congressmen,” is continuing to push forward-thinking regulation concerning tech in Taiwan as he is proposing new rules surrounding token sales. This past Friday, Hsu proposed a slew of policy recommendations geared towards assisting cryptocurrency startups -- notably, one of the recommendations would see the country’s Ministry of Economic Affairs (MOEA) establish a new business category for cryptocurrency firms while another recommendation would see new legal framework established for security tokens. Last week, the Taipei Times reported that Taiwan’s Financial Supervisory Commission would see standards established for initial coin offerings (ICOs) by June of next year.  
  • The Financial Action Task Force (FATF) is recommending that all of its members take action to control the exchange of cryptocurrencies, their storage, and other crypto-related activities. Founded in 1989, the FATF is an intergovernmental organization based in Paris with a directive of establishing standards to fight money laundering and other illegal financial activities. While speaking to Russian news outlet, Izvestia, Vice President of the Federal Financial Monitoring Service of the Russian Federation, Pavel Livadny, expressed a desire to institute controls on crypto transactions of more than 600,000 rubles (USD$9,120). Earlier in October, the FATF made changes to its standards relating to digital currencies and businesses dealing with cryptocurrencies.BASF SE (DB:BAS) has its price target cut to 95 Euros from 105 Euros at Credit Suisse.  The investment bank keeps its “Outperform” rating for BASF SE but after the recent 3Q earnings missing, Credit Suisse remains concerned aboutr the increasing challenges to 
     

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
Booz Allen Hamilton Holding Corporation BAH 10/29/2018 Earnings Release Date US Large-Cap: B, US Information Technology: A
Bloomin' Brands, Inc. BLMN 10/29/2018 Earnings Release Date US Large-Cap: --, US Consumer Discretionary: C
Affiliated Managers Group, Inc. AMG 10/29/2018 Earnings Release Date US Large-Cap: C
First Data Corporation FDC 10/29/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
Dana Incorporated DAN 10/29/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
ON Semiconductor Corporation ON 10/29/2018 Earnings Release Date US Large-Cap: B, US Information Technology: A
Allison Transmission Holdings, Inc. ALSN 10/29/2018 Earnings Release Date US Large-Cap: A, US Industrials: B
Essex Property Trust, Inc. ESS 10/29/2018 Earnings Release Date US Large-Cap: D
LiveRamp Holdings, Inc. ACXM 10/29/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
Integrated Device Technology, Inc. IDTI 10/29/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
EPR Properties EPR 10/29/2018 Earnings Release Date US Large-Cap: A
Akamai Technologies, Inc. AKAM 10/29/2018 Earnings Release Date US Large-Cap: B, US Information Technology: B
Wingstop Inc. WING 10/29/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Credit Acceptance Corporation CACC 10/29/2018 Earnings Release Date US Large-Cap: C
Mondelez International, Inc. MDLZ 10/29/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: C
Trex Company, Inc. TREX 10/29/2018 Earnings Release Date US Large-Cap: B, US Industrials: C
Varonis Systems, Inc. VRNS 10/29/2018 Earnings Release Date US Large-Cap: D, US Information Technology: C
UDR, Inc. UDR 10/29/2018 Earnings Release Date US Large-Cap: B
Alexandria Real Estate Equities, Inc. ARE 10/29/2018 Earnings Release Date US Large-Cap: D
AvalonBay Communities, Inc. AVB 10/29/2018 Earnings Release Date US Large-Cap: C
Brixmor Property Group Inc. BRX 10/29/2018 Earnings Release Date US Large-Cap: D
Cognex Corporation CGNX 10/29/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
Continental Resources, Inc. CLR 10/29/2018 Earnings Release Date US Large-Cap: C
Encompass Health Corporation EHC 10/29/2018 Earnings Release Date US Large-Cap: C
Olin Corporation OLN 10/29/2018 Earnings Release Date US Large-Cap: B
Waste Connections, Inc. WCN 10/29/2018 Earnings Release Date US Large-Cap: A, US Industrials: C
Chemed Corporation CHE 10/29/2018 Earnings Release Date US Large-Cap: B
Medpace Holdings, Inc. MEDP 10/29/2018 Earnings Release Date US Large-Cap: C
Texas Roadhouse, Inc. TXRH 10/29/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: A
Taubman Centers, Inc. TCO 10/29/2018 Earnings Release Date US Large-Cap: C
The Timken Company TKR 10/29/2018 Earnings Release Date US Large-Cap: C, US Industrials: A
Service Corporation International SCI 10/29/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: B
Amedisys, Inc. AMED 10/29/2018 Earnings Release Date US Large-Cap: C
Starbucks Corporation SBUX 10/29/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
Angang Steel Company Limited SEHK:347 10/29/2018 Earnings Release Date China All-Cap: C
China Shenhua Energy Company Limited SEHK:1088 10/29/2018 Earnings Release Date China All-Cap: B
Postal Savings Bank of China Co., Ltd. SEHK:1658 10/29/2018 Earnings Release Date China All-Cap: B
China Longyuan Power Group Corporation Limited SEHK:916 10/29/2018 Earnings Release Date China All-Cap: B
China Communications Construction Company Limited SEHK:1800 10/29/2018 Earnings Release Date China All-Cap: B
China Oilfield Services Limited SEHK:2883 10/29/2018 Earnings Release Date China All-Cap: A
China Petroleum & Chemical Corporation SEHK:386 10/29/2018 Earnings Release Date China All-Cap: A
COSCO SHIPPING Holdings Co., Ltd. SEHK:1919 10/29/2018 Earnings Release Date China All-Cap: C
COSCO SHIPPING Development Co., Ltd. SEHK:2866 10/29/2018 Earnings Release Date China All-Cap: D
COSCO SHIPPING Energy Transportation Co., Ltd. SEHK:1138 10/29/2018 Earnings Release Date China All-Cap: B
Ping An Insurance (Group) Company of China, Ltd. SEHK:2318 10/29/2018 Earnings Release Date China All-Cap: A
Air China Limited SEHK:753 10/29/2018 Earnings Release Date China All-Cap: B
PetroChina Company Limited SEHK:857 10/29/2018 Earnings Release Date China All-Cap: A
Edison International EIX 10/29/2018 Earnings Release Date US Large-Cap: C
Weichai Power Co., Ltd. SEHK:2338 10/29/2018 Earnings Release Date China All-Cap: B
HCA Healthcare, Inc. HCA 10/29/2018 Estimated Earnings Release Date US Large-Cap: B
Arconic Inc. ARNC 10/29/2018 Estimated Earnings Release Date US Large-Cap: D, US Industrials: D
Brookfield Property REIT Inc. BPR 10/29/2018 Estimated Earnings Release Date US Large-Cap: D
Boston Properties, Inc. BXP 10/29/2018 Earnings Release Date US Large-Cap: D
Cummins Inc. CMI 10/29/2018 Estimated Earnings Release Date US Large-Cap: B, US Industrials: A
MSC Industrial Direct Co., Inc. MSM 10/29/2018 Estimated Earnings Release Date US Large-Cap: A, US Industrials: B
Public Service Enterprise Group Incorporated PEG 10/29/2018 Estimated Earnings Release Date US Large-Cap: C
Pfizer Inc. PFE 10/29/2018 Earnings Release Date US Large-Cap: B
Bio-Techne Corporation TECH 10/29/2018 Estimated Earnings Release Date US Large-Cap: D
Hang Lung Group Limited SEHK:10 10/29/2018 Estimated Earnings Release Date China All-Cap: C
Hang Lung Properties Limited SEHK:101 10/29/2018 Estimated Earnings Release Date China All-Cap: C
G-Resources Group Limited SEHK:1051 10/29/2018 Estimated Earnings Release Date China All-Cap: D
Industrial and Commercial Bank of China Limited SEHK:1398 10/29/2018 Earnings Release Date China All-Cap: C
West China Cement Limited SEHK:2233 10/29/2018 Estimated Earnings Release Date China All-Cap: A
WH Group Limited SEHK:288 10/29/2018 Earnings Release Date China All-Cap: D
Zhuzhou CRRC Times Electric Co., Ltd. SEHK:3898 10/29/2018 Earnings Release Date China All-Cap: B
Xinyi Solar Holdings Limited SEHK:968 10/29/2018 Estimated Earnings Release Date China All-Cap: C
Genesee & Wyoming Inc. GWR 10/29/2018 Estimated Earnings Release Date US Large-Cap: A, US Industrials: C
Sabre Corporation SABR 10/29/2018 Estimated Earnings Release Date US Large-Cap: D, US Information Technology: C
CSC Financial Co., Ltd. SEHK:6066 10/29/2018 Earnings Release Date China All-Cap: D
McDermott International, Inc. MDR 10/29/2018 Estimated Earnings Release Date US Large-Cap: C
Beacon Roofing Supply, Inc. BECN 10/29/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: A
T-Mobile US, Inc. TMUS 10/29/2018 Estimated Earnings Release Date US Large-Cap: C
Cognizant Technology Solutions Corporation CTSH 10/29/2018 Earnings Release Date US Large-Cap: B, US Information Technology: C

Source: S&P Capital IQ