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Global stocks mixed to start the morning as US Index futures point to a bounce back for US stocks

Oct 30, 2018

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US Stocks

  • Global stocks are mixed to start the morning with European stocks inching down and US stocks rallying pre-market following disappointing earnings results from General Electric (GE) 
  • US stocks index futures are pointing to a positive open for US stocks with the Dow Jones minis +0.25%, S&P500 minis +0.34% and Nasdaq 100 minis +0.26% 
  • The VIX is little changed this morning and is currently at 24.29 after closing at 24.7 yesterday
  • Bank of America (BAC) November 02 OTM Calls, Ford (F) December 21 OTM Calls, SPY November 16 & January 2019 Calls & Puts, and QQQ January 2019 OTM Puts are the most heavily traded options contracts in US pre-market trading
  • US 2-Year Treasury Notes are lower with yields up 1.81 basis points to 2.8345%
  • US 10-Year Treasury Bonds are lower with yields up 2.65 basis points to 3.1114%
  • WTI Crude is currently down -0.81% to USD$67.04/bbl with the Brent-WTI spread up USD$0.71 to USD$9.19/bbl
  • Gold is currently down -0.73% to USD$1220.46/oz
  • Global oil prices continue to suffer from a recent downward trend as worries about decelerating global growth remains an overhang for positive price gains

Stocks Trending in the News

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

  • BP (BP LN) reported blow out results, well above expectations for 3Q, with net income of USD$3.84 billion, up from USD$1.87 billion a year ago.  Production at BP was flat while the reliability of its refineries was the highest in 15 years.  BP is rated “Neutral” in our UK All-Cap Global Top Stock Ideas.
  • General Electric (GE) is cutting its dividend to 1 cent per share from 12 cents per share while taking a USD$22 billion goodwill charge.  General Electric will reorganize its power unit into 2 units.  General Electric reported 3Q EPS of 14 cents while consensus was for 20 cents.  General Electric is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and ‘Neutral’ in our US Industrials Global Top Stock Ideas.   
  • Honda (7267 JP) increased its full year operating profit to 790 billion yen (USD$7 billion), still 2% below consensus.  Honda sees strength in Japan where its auto sales are expected to grow 4% this year.   Japan has mostly local production of its cars so trade tensions have a limited effect on its operations.  Honda is rated “Top Buy” in our Japan All-Cap Global Top Stock Ideas.
  • Industrial & Commercial Bank of China (1398 HK) reported a 5.6% increase in profit in 3Q results compared with a year ago.  Industrial & Commercial Bank of China reported net income of 79.2 billion yuan.  Industrial & Commercial Bank of China results broadly matched market estimates.  Industrial & Commercial Bank of China is rated ‘Neutral’ in our China-All Cap Global Top Stock Ideas.
  • Lufthansa (LHA) is cutting expansion plans after 3Q results came below estimates.   Lufthansa plans to slow growth next year after buying jets this year from a rival.  Lufthansa will focus on profitability next year after integration challenges from acquiring a rival’s jets.  Lufthansa pans to cut capacity by 3.8% next year after an expected 8% during the winter.  Lufthansa is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Pfizer (PFE) narrowed its full year guidance as its older drugs struggle.  Pfizer narrowed guidance even as beating 3Q estimates.  Pfizer now sees full year revenue of USD$53-53.7 billion, tighter than previous USD$53-55 billion.  Pfizer has returned USD$15 billion back to shareholders via dividends and share buybacks, with USD$3 billion more planned this year.  Pfizer is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Reckitt Benckiser Group (RB LN) saw USD$89.4mn cut from revenue in the 3Q due to a glitch in production at its infant formula facility in the Netherlands.  Reckitt Benckiser Group’s new CEO has been trying to turn around the company and the latest problem puts a huge kink in that effort.   Reckitt Benckiser Group is rated “Attractive” in our UK All-Cap Global Top Stock Ideas.
  • Volkswagen (VOW GR) reported 3Q results that beat expectations with results helped by its Porsche and Seat divisions.  Volkswagen 3Q operating profit of 3.51 billion euros came above consensus of 3.21 billon euros.  Volkswagen maintained full year guidance while many were expecting it to be cut, with Porsche strength powering those results.  Volkswagen
  • WH Smith (SMWH) agreed to buy InMotion, a seller of electronic accessories in US airports.  WH Smith is paying USD$198mn for the company as it sees to expand beyond its traditional UK retails business.  WH Smith is focusing on selling in transportation hubs where there is less competition from online sales.  WH Smith is rated “Attractive” in our UK All-Cap Global Top Stock Ideas.
     

 

European Stocks

  • European stocks are edging down in a directionless market this AM 
  • The Euro Stoxx 600 is currently up +0.1%, the FTSE 100 is higher by +0.28%, the DAX has fallen -0.01%, and the CAC 40 is lower by -0.1%
  • Disappointing earnings from General Electric (GE) is overshadowing positive results from BP PLC (LSE:BP)
  • French GDP was in-line with market expectations, growing +0.4% Q/Q and +1.5% Y/Y
  • Investor sentiment for European stocks is neutral with the advance/decline ratio for the Euro Stoxx 600 currently at 1.14x
  • Oil & Gas (+0.69%), Retail (+0.53%), and Basic Resources (+0.44%) stocks are the top performers in the Euro Stoxx 600 today
  • Travel & Leisure (-0.57%), Personal & Household Goods (-0.5%), and Banks (-0.33%) stocks are the worst performers in the Euro Stoxx 600 today
  • 17 stocks in the Euro Stoxx 600 are at 4-week highs while 26 stocks are at 4-week lows
  • 3 stocks in the Euro Stoxx 600 are overbought while 74 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 22.59 after closing at 22.29 yesterday
  • WTI Crude is currently down -0.81% to USD$67.04/bbl with the Brent-WTI spread up USD$0.71 to USD$9.19/bbl
  • Gold is currently down -0.73% to USD$1220.46/oz
  • EUR€ is currently little changed against the USD$ at 1.1362
  • GBP£ is currently down -0.305% against the USD$ to 1.2754
  • CHF is currently little changed against the USD$ at 0.9977
  • German 10-Year Bunds are lower with yields up 0.3 basis points to 0.38%
  • UK 10-Year GILTs are lower with yields up 0.9 basis points to 1.408%
     

Asian Stocks

  • Asian stocks finished, on the whole, positive in overnight trading following comments by US President Donald Trump that the US and China will “make a great deal with China”during an interview with Fox News 
  • China seeks to support its economy wth tax cuts, regulatory relief and investment spending incentives in place of direct government spending policy of 2008 and 2015
  • The Nikkei 225 finished up +1.45%, the Hang Seng ended down -0.91%, the Hang Seng China Enterprise declined -0.14%, and the CSI 300 was +1.08%
  • Hong Kong stocks were a notable outlier yesterday, as weak earning from the mega-cap bank stocks weighed on investor sentiment
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 3.69x
  • 2 stocks in the Nikkei 225 hit 4-week highs while 49 stocks reached 4-week lows
  • 0 stocks in the Nikkei 225 closed overbought while 75 stocks closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished negative with the advance/decline ratio for the Hang Seng closing at 0.43x
  • 0 stocks in the Hang Seng hit 4-week highs while 10 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 6 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are lower with yields up 1.2 basis points to 0.122%
  • JGBs 2s-10s Spread has widened 1.4 basis points to 0.25%
  • JPY¥ is currently up +0.383% against the USD$ to 112.8
     

 

*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 4 2.22% 2.34%
Microsoft Corp 1592 7.14 30 30 4.61% 5.01%
Netflix Inc 1096 6.71 -7 -11 -1.28% -2.09%
Morgan Stanley 814 6.14 6 5 4.74% 3.65%
Intel Corp 752 6.14 31 29 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 0 4 -99.94% -0.57%
Capital One Financial Corp 53 8.29 10 11 3.09% 3.24%
Visa Inc 452 7.71 4 7 4.62% 4.69%
Ford Motor Co 721 7.43 -10 -14 0.67% -2.2%
Walt Disney Co/The 321 7.43 -4 -20 -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 22.8 99.21% 19.65 99.21% 0.86 2.78% 1.39 55.95% 5.57 97.22%
QQQ 31.83 100.0% 25.53 100.0% 0.8 0.79% -1.05 30.56% 4.13 87.3%
IWM 28.7 100.0% 23.58 100.0% 0.82 0.99% 5.21 92.46% 7.4 99.6%
FEZ 21.89 98.41% 19.53 97.62% 0.89 7.34% 4.38 86.9% 2.68 69.84%
EEM 28.14 99.6% 24.66 99.6% 0.88 1.39% 1.16 57.94% 2.68 74.21%

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
HERSHEY CO HSY Consumer Staples Food Products 3.34% 0.21% -3.49%
STERLING BANCORP STL Financials Banks 2.85% -6.2% -30.52%
BB&T CORP BBT Financials Banks 2.74% 1.45% -2.22%
INVESTORS BANCORP INC ISBC Financials Banks 2.72% 2.99% -19.06%
CULLEN/FROST BANKERS INC CFR Financials Banks 2.48% 1.02% 2.02%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
BLACK KNIGHT INC BKI Information Technology IT Services -6.2% -9.57% -5.42%
NORTHROP GRUMMAN CORP NOC Industrials Aerospace & Defense -5.15% -17.97% -16.39%
VULCAN MATERIALS CO VMC Materials Construction Materials -4.83% -7.63% -44.17%
BLACKBAUD INC BLKB Information Technology Software -3.62% -7.14% -32.58%
MASTERCARD INC MA Information Technology IT Services -3.32% -6.81% 23.47%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
SUPERIOR ENERGY SERVICES INC SPN Energy Energy Equipment & Services -9.24% -15.76% -30.67%
CAESARS ENTERTAINMENT CORP CZR Consumer Discretionary Hotels, Restaurants & Leisure -6.94% -14.49% -41.64%
FIRST SOLAR INC FSLR Information Technology Semiconductors & Semiconductor Equipment -6.45% -20.57% -64.59%
SM ENERGY CO SM Energy Oil, Gas & Consumable Fuels -6.27% -18.98% 2.6%
CALIFORNIA RESOURCES CORP CRC Energy Oil, Gas & Consumable Fuels -5.94% -15.29% 38.61%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
PIVOTAL SOFTWARE INC PVTL Information Technology Software 5.61% 1.8% 19.25%
L BRANDS INC LB Consumer Discretionary Specialty Retail 2.95% 5.11% -59.71%
FOSSIL GROUP INC FOSL Consumer Discretionary Textiles, Apparel & Luxury Goods 2.93% 10.95% 92.39%
GAP INC GPS Consumer Discretionary Specialty Retail 2.05% 5.5% -17.88%
BOSTON PROPERTIES INC BXP Real Estate Equity Real Estate Investment Trusts (REITs) 1.81% 1.72% -7.9%

Source: S&P Capital IQ, StockDio

Cryptos

  • An article by the Financial Times details that big four auditor, PricewaterhouseCoopers (PwC), has hired as many as 400 blockchain experts in an effort to best serve clients’ blockchain needs. Ralph Weinberger, head of PWC’s global network assurance methodology group, told the Financial Times, “We are devoting significant resources to how we might provide audit services in not just cryptocurrency, but blockchain.” PwC has focused on helping companies understand compliance procedures involving cryptocurrencies while assuring firms properly meet tax obligations relating to crypto assets. The Financial Times’ article concludes that PwC has a strong desire to become a leader in blockchain compliance and technology, pointing out that the big four auditor already has a section of their website dedicated to blockchain.  
  • JPMorgan Chase Bank’s blockchain, Quorum, is going to be used to tokenize gold bars using smart contracts, according to an article by the Financial Review. Quorum was originally developed in partnership with the Ethereum Enterprise Alliance to be applied in the financial sector, however, employees at JPMorgan Chase have begun to test its applications in industries like healthcare, aviation, and banking. JPMorgan Chase’s head of blockchain initiatives, Umar Farooq, is quoted by the Financial Review, saying, “We are the only financial player that owns the entire stack, from the application to the protocol.”  
  • Monex Group, a Japanese internet broker who purchased Japanese cryptocurrency exchange, Coincheck, after it was hacked in January 2018, is reopening new account signups and offering limited trading services on Coincheck, as per a statement issued Tuesday morning. This news comes after Coincheck reported yesterday of a 66% revenue drop in CY3Q2018. According to the announcement, users are now able to deposit four cryptocurrencies into accounts, including Bitcoin (BTC), Ethereum Classic (ETC), Litecoin (LTC), and Bitcoin Cash (BCH). A strict know-your-customer process will be in place for new users registering with Coincheck, the announcement detailed.  
  • The UK’s Financial Conduct Authority (FCA) is considering a ban on the sale of cryptocurrency-based derivatives, according to a Monday report by the Financial Times. The UK’s FCA published a statement Monday detailing that it is set to launch a consultation in the first quarter of 2019 concerning whether or not to place a ban on the sale of cryptocurrency-based derivatives at some point in the future. The FCA is also reportedly launching a parallel consultation into whether or not to extend its regulatory jurisdiction onto cryptocurrency assets themselves and the exchanges and wallet services that work with cryptocurrency assets. The FCA detailed in its statement issued Monday that it has, “made clear that in its view crypto assets have no intrinsic value and investors should therefore be prepared to lose all the value they have put in.” 

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
AirXpanders, Inc. AXP 10/30/2018 Earnings Release Date US Large-Cap: C
Tapestry, Inc. TPR 10/30/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: A
Allergan plc AGN 10/30/2018 Earnings Release Date US Large-Cap: C
WellCare Health Plans, Inc. WCG 10/30/2018 Earnings Release Date US Large-Cap: C
Huntsman Corporation HUN 10/30/2018 Earnings Release Date US Large-Cap: B
Aetna Inc. AET 10/30/2018 Earnings Release Date US Large-Cap: C
Wyndham Hotels & Resorts, Inc. WH 10/30/2018 Earnings Release Date US Large-Cap: D
Baker Hughes, a GE company BHGE 10/30/2018 Earnings Release Date US Large-Cap: F
CNX Resources Corporation CNX 10/30/2018 Earnings Release Date US Large-Cap: C
Under Armour, Inc. UAA 10/30/2018 Earnings Release Date US Large-Cap: F, US Consumer Discretionary: D
Xylem Inc. XYL 10/30/2018 Earnings Release Date US Large-Cap: B
Masco Corporation MAS 10/30/2018 Earnings Release Date US Large-Cap: B, US Industrials: A
Incyte Corporation INCY 10/30/2018 Earnings Release Date US Large-Cap: D
FLIR Systems, Inc. FLIR 10/30/2018 Earnings Release Date US Large-Cap: B, US Information Technology: B
Global Payments Inc. GPN 10/30/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Blueprint Medicines Corporation BPMC 10/30/2018 Earnings Release Date US Large-Cap: --
Eagle Materials Inc. EXP 10/30/2018 Earnings Release Date US Large-Cap: B
American Tower Corporation (REIT) AMT 10/30/2018 Earnings Release Date US Large-Cap: C
Fidelity National Information Services, Inc. FIS 10/30/2018 Earnings Release Date US Large-Cap: A, US Information Technology: B
The Coca-Cola Company KO 10/30/2018 Earnings Release Date US Large-Cap: B, US Consumer Staples: C
Black Knight, Inc. BKI 10/30/2018 Earnings Release Date US Large-Cap: --, US Information Technology: B
Array BioPharma Inc. ARRY 10/30/2018 Earnings Release Date US Large-Cap: F
Westinghouse Air Brake Technologies Corporation WAB 10/30/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
Vishay Intertechnology, Inc. VSH 10/30/2018 Earnings Release Date US Large-Cap: B, US Information Technology: A
IPG Photonics Corporation IPGP 10/30/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
Mastercard Incorporated MA 10/30/2018 Earnings Release Date US Large-Cap: A, US Information Technology: C
Welltower Inc. WELL 10/30/2018 Earnings Release Date US Large-Cap: C
KEMET Corporation KEM 10/30/2018 Earnings Release Date US Large-Cap: C, US Information Technology: A
Brinker International, Inc. EAT 10/30/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
AGCO Corporation AGCO 10/30/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
A. O. Smith Corporation AOS 10/30/2018 Earnings Release Date US Large-Cap: B, US Industrials: B
Peabody Energy Corporation BTU 10/30/2018 Earnings Release Date US Large-Cap: C
AutoNation, Inc. AN 10/30/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Vulcan Materials Company VMC 10/30/2018 Earnings Release Date US Large-Cap: B
Ecolab Inc. ECL 10/30/2018 Earnings Release Date US Large-Cap: C
T-Mobile US, Inc. TMUS 10/30/2018 Earnings Release Date US Large-Cap: C
NCR Corporation NCR 10/30/2018 Earnings Release Date US Large-Cap: --, US Information Technology: C
3D Systems Corporation DDD 10/30/2018 Earnings Release Date US Large-Cap: F, US Information Technology: D
NuVasive, Inc. NUVA 10/30/2018 Earnings Release Date US Large-Cap: C
Clovis Oncology, Inc. CLVS 10/30/2018 Earnings Release Date US Large-Cap: D
Curtiss-Wright Corporation CW 10/30/2018 Earnings Release Date US Large-Cap: B, US Industrials: C
McDermott International, Inc. MDR 10/30/2018 Earnings Release Date US Large-Cap: C
Shutterfly, Inc. SFLY 10/30/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
Verisk Analytics, Inc. VRSK 10/30/2018 Earnings Release Date US Large-Cap: A, US Industrials: C
Exact Sciences Corporation EXAS 10/30/2018 Earnings Release Date US Large-Cap: F
Whiting Petroleum Corporation WLL 10/30/2018 Earnings Release Date US Large-Cap: F
C.H. Robinson Worldwide, Inc. CHRW 10/30/2018 Earnings Release Date US Large-Cap: B, US Industrials: C
Extra Space Storage Inc. EXR 10/30/2018 Earnings Release Date US Large-Cap: B
Amgen Inc. AMGN 10/30/2018 Earnings Release Date US Large-Cap: C
The Cheesecake Factory Incorporated CAKE 10/30/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
CyrusOne Inc. CONE 10/30/2018 Earnings Release Date US Large-Cap: D
Concho Resources Inc. CXO 10/30/2018 Earnings Release Date US Large-Cap: D
Electronic Arts Inc. EA 10/30/2018 Earnings Release Date US Large-Cap: D, US Information Technology: C
Facebook, Inc. FB 10/30/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
FireEye, Inc. FEYE 10/30/2018 Earnings Release Date US Large-Cap: D, US Information Technology: F
Hyatt Hotels Corporation H 10/30/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Herbalife Nutrition Ltd. HLF 10/30/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: C

Source: S&P Capital IQ