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Global stocks are advancing following plunge in Asian stocks overnight as US midterm elections get closer

Nov 05, 2018

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US Stocks

  • Global stocks are advancing this morning following a sell-off in Asia overnight and ahead of the US midterm elections tomorrow 
  • Jack Ma, an iconic investor for Chinese markets, commented that US-China trade war is senseless and could last for an extended time while Larry Kudlow, White House Economic Adviser, tamped down optimisim on early solution to the trade conflict
  • Later this week, the US Federal Reserve holds their next FOMC rate decision meeting with an announcement about interests rates due on Thursday, November 8th  
  • US Index futures have reversed and are now pointing to a positive open in NY with Dow Jones minis +0.12%, S&P 500 minis +0.17%, and Nasdaq 100 minis +0.24%
  • Following last week’s rally in US stocks, the S&P500 has recovered “back” to its 200-day moving average and is raising questions whether the long-term technical indicator prove to be a ceiling for US stocks in the short-term – the S&P500 has been trading below its 200-day moving average for almost 2 weeks
  • The VIX is little changed this morning and is currently at 20.11 after closing at 19.51 yesterday
  • According to data from the CFTC, institutional funds have begun adding new long VIX futures positions for the first time since May -- for the month of October, the VIX traded at average level of 19.35, the highest levels since February 2018 
  • EEM November 16 OTM Puts & November 30 OTM Calls, General Electric (GE) December 07 OTM Puts, IWM November 16 OTM Puts, EWZ January 2020 OTM Puts, SPY November 16 OTM Calls and HYG November 16 & December 21 OTM Puts are the most actively traded options contracts in the US pre-market 
  • US 10-Year Treasury Bonds are higher with yields down -0.94 basis points to 3.2027%
  • The US Treasury 2s-10s Spread has narrowed 0.53 basis points to 0.3%
  • WTI Crude is currently down -0.86% to USD$63.14/bbl with the Brent-WTI spread up USD$0.73 to USD$8.74/bbl
  • Gold is currently little changed -0.06% to USD$1232.1/oz
  • US sanctions on Iran oil sales have formally restarted – global oil prices continue to trade near 6-month lows as the specter of a tighter oil market has eased following news the US is softening the restart of sanctions

Stocks Trending in the News

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

  • Alibaba (BABA) co-founder Jack Ma said the trade fight between the US and China is “senseless” as the conflict widens.  The Alibaba’s co-founder recently said he thought the conflict could last 2 decades and that it was pointless because the Asian nation is soon to become a major buyer of goods.  Alibaba is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Apple (AAPL) has cancelled plans for additional production lines for its budget iPhone XR model according to a report by Nikkei.  Apple now plans 20-25% less production of that model according to the report.  None of the Apple suppliers cited will be producing at full capacity and one will not produce any.  Apple increased its iPhone 8 and iPhone 8Plus models by 5mn units to 25mn total.  Apple is rated “Attractive” on both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Dufry (DUFN SW) cut its full year forecast after a disappointing 3Q in Spain and Latin America.  Dufry cut its organic growth forecast to 2-3% down from 5-7% previously.  Dufry saw a less favorable mix of tourists in Spain and currency turbulence in Brazil and Argentina.  Dufry is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Siemens Healthineers (SHL GR) reported 4Q adjusted net of 430n euros while the company guidance was for 435mn euros.  Siemens Healthineers reported 4Q adjusted profit of 674mn euros while company guidance was for 668mn euros.  Siemens Healthineers expects 2019 EPS to come 20-30% above previous year.  Siemens Healthineers is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Softbank (9984 JP) reported profit that well exceeded analysts’ expectations.  Softbank reported 2Q profit of 706 billion yen, far above any expectation of analysts as the results of its tech investments begin to bear fruit.  Softbank’s CEO said next year “I believe we will not only exceed these results but may deliver results on a level Japan has never seen before”.  Softbank is rated “Attractive” in our Japan Large-Cap Global Top Stock Ideas.
  • STMicroelectronics (SMT IM) announced a share buyback program of up to USD$750mn.  STMicroelectronics will have its program in place for up to 3 years.  STMicroelectronics will place any stock bought into its treasury.  STMicroelectronics will pay at least 1.04 euros for any shares bought back.  STMicroelectronics is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Subaru (7270 JP) cut is full year forecast for operating profit by 27% in the wake of expanding its car recall.  Subaru is recalling vehicles due to flaws in its inspection process.  Subaru now expects to report a profit of 220 billion yen compared to consensus of 347.4 billion yen.  Subaru is not rated on our Global Top Stock Ideas.
  • Tata Motors (TTMT IN) has been placed on “CreditWatch” by S&P.  Tata Motors could see its credit metrics worsen near term given recent results that were weaker than expected.  Tata Motors “is likely to miss our expectations for 2019” S&P said.  Tata Motors is not rated in our Global Top Stock Ideas.
     

 

European Stocks

  • European stocks are edging up to start the week following rumors that the UK and EU are moving closer to breaking the deadlock surrounding BREXIT talks
  • UK Prime Minister Theresa May is set to update her cabinet on recent updates regarding BREXIT negotiations with the EU 
  • The Euro Stoxx 600 is currently up +0.21%, the FTSE 100 is higher by +0.22%, the DAX has advanced +0.18%, and the CAC 40 has risen +0.18%
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.89x
  • UK car dealership stocks are dropping following a report by the Society of Motor Manufacturers and Traders (SMMT) that shows new car registrations for October falling 2.9%.
  • Telecommunications (+0.95%), Health Care (+0.85%), and Oil & Gas (+0.81%) stocks are the top performers in the Euro Stoxx 600 today
  • Financial Services (-0.57%), Industrial Goods & Services (-0.44%), and Banks (-0.4%) stocks are the worst performers in the Euro Stoxx 600 today
  • 117 stocks in the Euro Stoxx 600 are at 4-week highs while 6 stocks are at 4-week lows
  • 5 stocks in the Euro Stoxx 600 are overbought while 7 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 18.52 after closing at 18.85 yesterday
  • EUR€ is currently down -0.167% against the USD$ to 1.1369
  • GBP£ is currently up +0.285% against the USD$ to 1.3007
  • CHF is currently down -0.331% against the USD$ to 0.9934
  • German 10-Year Bunds are lower with yields up 0.6 basis points to 0.434%
  • UK 10-Year GILTs are lower with yields up 2.6 basis points to 1.52%

Asian Stocks

  • Asia stocks start the week in the red as the momentum from last week’s rally failed to hold after news that White House Economic Adviser Larry Kudlow downplayed the potential for a quick trade deal agreement between the US and China, and Jack Ma expressed a negative view on an early solution
  • The Nikkei 225 finished down --1.55%, the Hang Seng ended down -2.08%, the Hang Seng China Enterprise declined -1.34%, and the CSI 300 was -0.83%
  • The gains in Hong Kong stocks the previous week were the biggest 1-week rally for Hong Kong stocks since 2011 and was primarily driven short covering rather than outright buying 
  • MTD, Chinese investors have added ~CNY4,5333 million into Hong Kong Stocks via the Hong Kong Stock Connect
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.32x
  • 12 stocks in the Nikkei 225 hit 4-week highs while 20 stocks reached 4-week lows
  • 0 stocks in the Nikkei 225 closed overbought while 11 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 0.04x
  • 17 stocks in the Hang Seng hit 4-week highs while 1 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are higher with yields down -0.1 basis points to 0.128%
  • JGBs 2s-10s Spread has narrowed 0.1 basis points to 0.26%
  • JPY¥ is currently little changed against the USD$ at 113.28

 

*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 1556 6.29 3 4 2.53% 2.39%
Boeing Co/The 1219 5.57 17 20 10.12% 10.43%
Microsoft Corp 1210 6 30 30 4.61% 5.01%
International Business Machines Corp 1061 4.43 0 -2 0.47% 0.56%
Netflix Inc 903 6.71 -7 -11 -1.3% -2.07%

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
Visa Inc 374 9.14 4 7 4.59% 4.69%
JPMorgan Chase & Co 447 8.86 9 9 2.86% 3.74%
Bank of America Corp 422 8.71 13 8 2.6% 1.87%
Wells Fargo & Co 378 8.29 -9 -12 1.99% 2.55%
BlackRock Inc 306 8.29 4 4 -2.87% -3.65%

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 17.11 91.27% 17.51 96.03% 1.02 21.43% -6.33 10.71% 2.7 53.57%
QQQ 23.82 91.27% 21.83 94.05% 0.92 13.29% -11.57 4.37% -0.77 32.14%
IWM 20.93 94.44% 19.69 94.84% 0.94 9.92% -5.46 6.35% 2.17 43.65%
FEZ 17.56 85.32% 16.49 81.35% 0.94 16.67% -1.18 30.95% -0.65 34.52%
EEM 24.15 94.84% 22.92 96.83% 0.95 13.29% -6.45 8.73% -0.82 32.54%

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
VERISIGN INC VRSN Information Technology Internet Software & Services 15.87% 17.4% 41.04%
HILL-ROM HOLDINGS INC HRC Health Care Health Care Equipment & Supplies 4.81% 8.63% 7.99%
MOTOROLA SOLUTIONS INC MSI Information Technology Communications Equipment 4.01% 7.37% 36.61%
FIRSTCASH INC FCFS Financials Consumer Finance 1.93% 6.54% 19.72%
CHURCH & DWIGHT INC CHD Consumer Staples Household Products 1.82% 12.96% 30.3%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
FORTINET INC FTNT Information Technology Software -14.27% -7.47% 49.23%
BROADCOM INC AVGO Information Technology Semiconductors & Semiconductor Equipment -4.04% 3.51% -16.19%
LIGAND PHARMACEUTICAL INC LGND Health Care Biotechnology -3.3% -0.81% 17.85%
ADOBE SYSTEMS INC ADBE Information Technology Software -2.33% -2.54% 29.9%
MSCI INC MSCI Financials Capital Markets -2.18% 0.94% 12.94%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
PUMA BIOTECHNOLOGY INC PBYI Health Care Biotechnology -65.4% -69.94% -152.96%
SM ENERGY CO SM Energy Oil, Gas & Consumable Fuels -6.29% -8.49% 0.39%
QORVO INC QRVO Information Technology Semiconductors & Semiconductor Equipment -5.89% 5.93% 7.17%
PIVOTAL SOFTWARE INC PVTL Information Technology Software -5.59% 6.86% 20.51%
SNAP INC SNAP Information Technology Software -5.42% 8.25% -78.49%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
ACACIA COMMUNICATIONS INC ACIA Information Technology Communications Equipment 20.43% 25.29% 19.42%
ESPERION THERAPEUTICS INC ESPR Health Care Biotechnology 11.24% 28.84% -17.4%
CAESARS ENTERTAINMENT CORP CZR Consumer Discretionary Hotels, Restaurants & Leisure 7.4% 7.97% -26.73%
VISTRA ENERGY CORP VST Utilities Independent Power and Renewable Electricity Producers 5.43% 9.81% 28.07%
ILLUMINA INC ILMN Health Care Life Sciences Tools & Services 4.79% 10.6% 38.15%

Source: S&P Capital IQ, StockDio

Cryptos

  • Anatoly Aksakov, the Chairman of Russia’s State Duma Committee on Financial Markets, has claimed that the Russian entity is considering the launch of a state-backed cryptocurrency pegged to the Russian ruble. Aksakov detailed in a press conference that the Russian government would back a cryptocurrency, “but it will be a ruble-pegged cryptocurrency.” The state-backed ruble-pegged cryptocurrency will be backed 1:1 by Russian rubles held in reserves by a Russian banking institution, Aksakov detailed.  
  • Bitcoin Cash’s (BCH) value surged almost 21% on Sunday after Binance, now the world’s second largest cryptocurrency exchange by daily volume, announced that it would support BCH’s upcoming hardfork. Scheduled for November 15th, 2018, the upcoming BCH hardfork is part of a bi-annual scheduled hardfork of protocol upgrades that is also supported by US cryptocurrency exchange, Coinbase. On news of Binance’s and Coinbase’s support of the hardfork, BCH trading volume increased sevenfold to about USD$1.3bn. 
  • Taiwan’s Legislative Yuan, the country’s highest legislator, has approved amendments to existing laws that will enable the country’s regulator to combat anonymous cryptocurrency transactions. Taiwan’s Legislative Yuan announced changes to the country’s Money Laundering Control Act and Terrorism Financing Prevention Act on Friday that will ensure the country’s Financial Supervisory Commission ability to gather KYC information from investors participating on domestic cryptocurrency exchange platforms. Taiwan’s Legislative Yuan detailed further, saying that the country’s regulator will, “now demand that operators of virtual currency platforms implement real-name systems that require users to register their real names, according to new provisions.”
  • The People’s Bank of China, China’s central bank, is extending its regulatory scrutiny to cover token airdrops. According to the central bank’s 2018 Financial Stability report published on November 2nd, 2018, token airdrops are “disguised” initial coin offerings (ICOs) and a form of “illegal” fundraising that exposes investors to risks of fraud and pyramid schemes. The People’s Bank of China warns investors that a continued rise in airdrops and related initiatives may result in a negative societal impact. 
     

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
Sysco Corporation SYY 11/5/2018 Earnings Release Date US Large-Cap: A, US Consumer Staples: A
PG&E Corporation PCG 11/5/2018 Earnings Release Date US Large-Cap: C
WestRock Company WRK 11/5/2018 Earnings Release Date US Large-Cap: A
Laredo Petroleum, Inc. LPI 11/5/2018 Earnings Release Date US Large-Cap: D
Omega Healthcare Investors, Inc. OHI 11/5/2018 Earnings Release Date US Large-Cap: C
Spirit Realty Capital, Inc. SRC 11/5/2018 Earnings Release Date US Large-Cap: C
Brighthouse Financial, Inc. BHF 11/5/2018 Earnings Release Date US Large-Cap: D
SeaWorld Entertainment, Inc. SEAS 11/5/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
Invitation Homes Inc. INVH 11/5/2018 Earnings Release Date US Large-Cap: D
Loews Corporation L 11/5/2018 Earnings Release Date US Large-Cap: B
2U, Inc. TWOU 11/5/2018 Earnings Release Date US Large-Cap: F, US Information Technology: C
Altice USA, Inc. ATUS 11/5/2018 Earnings Release Date US Large-Cap: D
Booking Holdings Inc. BKNG 11/5/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
Nevro Corp. NVRO 11/5/2018 Earnings Release Date US Large-Cap: F
Neurocrine Biosciences, Inc. NBIX 11/5/2018 Earnings Release Date US Large-Cap: F
PTC Therapeutics, Inc. PTCT 11/5/2018 Earnings Release Date US Large-Cap: F
Rent-A-Center, Inc. RCII 11/5/2018 Earnings Release Date US Large-Cap: --, US Consumer Discretionary: C
Kennametal Inc. KMT 11/5/2018 Earnings Release Date US Large-Cap: C, US Industrials: B
RingCentral, Inc. RNG 11/5/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
Carrizo Oil & Gas, Inc. CRZO 11/5/2018 Earnings Release Date US Large-Cap: D
Penumbra, Inc. PEN 11/5/2018 Earnings Release Date US Large-Cap: D
SBA Communications Corporation SBAC 11/5/2018 Earnings Release Date US Large-Cap: C
Tenet Healthcare Corporation THC 11/5/2018 Earnings Release Date US Large-Cap: F
Avis Budget Group, Inc. CAR 11/5/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
Vectren Corporation VVC 11/5/2018 Earnings Release Date US Large-Cap: B
Marriott International, Inc. MAR 11/5/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
FMC Corporation FMC 11/5/2018 Earnings Release Date US Large-Cap: C
Occidental Petroleum Corporation OXY 11/5/2018 Earnings Release Date US Large-Cap: C
PDC Energy, Inc. PDCE 11/5/2018 Earnings Release Date US Large-Cap: F
International Flavors & Fragrances Inc. IFF 11/5/2018 Earnings Release Date US Large-Cap: C
Oasis Petroleum Inc. OAS 11/5/2018 Earnings Release Date US Large-Cap: D
Centennial Resource Development, Inc. CDEV 11/5/2018 Earnings Release Date US Large-Cap: C
Mylan N.V. MYL 11/5/2018 Earnings Release Date US Large-Cap: C
The Mosaic Company MOS 11/5/2018 Earnings Release Date US Large-Cap: D
Starbucks Corporation SBUX 11/5/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
Hang Lung Group Limited SEHK:10 11/5/2018 Estimated Earnings Release Date China All-Cap: C
Hang Lung Properties Limited SEHK:101 11/5/2018 Estimated Earnings Release Date China All-Cap: C
G-Resources Group Limited SEHK:1051 11/5/2018 Estimated Earnings Release Date China All-Cap: D
West China Cement Limited SEHK:2233 11/5/2018 Estimated Earnings Release Date China All-Cap: A
Xinyi Solar Holdings Limited SEHK:968 11/5/2018 Estimated Earnings Release Date China All-Cap: C
Spark Therapeutics, Inc. ONCE 11/5/2018 Estimated Earnings Release Date US Large-Cap: F
Acadia Healthcare Company, Inc. ACHC 11/5/2018 Estimated Earnings Release Date US Large-Cap: C
KAR Auction Services, Inc. KAR 11/5/2018 Earnings Release Date US Large-Cap: B, US Industrials: B
Coherent, Inc. COHR 11/5/2018 Earnings Release Date US Large-Cap: D, US Information Technology: C
Sheng Ye Capital Limited SEHK:8469 11/5/2018 Earnings Release Date China All-Cap: B
Syneos Health, Inc. SYNH 11/5/2018 Estimated Earnings Release Date US Large-Cap: C
The AES Corporation AES 11/5/2018 Estimated Earnings Release Date US Large-Cap: D
Eli Lilly and Company LLY 11/5/2018 Earnings Release Date US Large-Cap: C
Expeditors International of Washington, Inc. EXPD 11/5/2018 Earnings Release Date US Large-Cap: B, US Industrials: B
Heron Therapeutics, Inc. HRTX 11/5/2018 Estimated Earnings Release Date US Large-Cap: F
The Middleby Corporation MIDD 11/5/2018 Estimated Earnings Release Date US Large-Cap: B, US Industrials: D
Ubiquiti Networks, Inc. UBNT 11/5/2018 Estimated Earnings Release Date US Large-Cap: D, US Information Technology: C
Louisiana-Pacific Corporation LPX 11/5/2018 Earnings Release Date US Large-Cap: B
Ionis Pharmaceuticals, Inc. IONS 11/5/2018 Estimated Earnings Release Date US Large-Cap: F
Jack Henry & Associates, Inc. JKHY 11/5/2018 Earnings Release Date US Large-Cap: A, US Information Technology: B
Supernus Pharmaceuticals, Inc. SUPN 11/5/2018 Earnings Release Date US Large-Cap: C
Chong Sing Holdings FinTech Group Limited SEHK:8207 11/5/2018 Earnings Release Date China All-Cap: F
China Resources Power Holdings Company Limited SEHK:836 11/5/2018 Estimated Earnings Release Date China All-Cap: C

Source: S&P Capital IQ