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Global stocks declining to start week as BREXIT deal falls apart

Nov 12, 2018



 

US Stocks

  • Global stocks are declining to star the week as a crumbling BREXIT deal weighs on investor sentiment
  • US stocks index futures are declining off their early morning highs are currently pointing to a negative open in NY to begin the week with front month Dow Jones minis –0.17%, S&P500 minis -0.06% and Nasdaq 100 minis +0.08% 
  • Emerging Markets stocks and bonds ETFs saw inflows of USD$2.29 billion last week, the most since January 2018 and the 4-straight week of positive inflows 
  • Inflows into Smart Beta strategies declined 24% last week, week over week, with inflows of USD$1.99 billion – - Value strategies lead the week over week decline with inflows dropping to a positive USD$862 million vs. a positive USD$1.88 billion in the previous week 
  • Gaming stocks, led by earnings from Activision Blizzard (ATVI) and Take-Two Interactive Software (TTWO) has been the worst performing industry group in the S&P500 and have been the reason why the S&P 500 Communication Services Sector is the worst performing sector in the S&P500 
  • The VIX is little changed this morning and is currently at 17.87 after closing at 17.36 yesterday
  • SPY November 16 OTM Puts, VXX November 16 OTM Puts, FXI December 21 OTM Puts & Calls, General Electric (GE) January 2019 OTM Puts and XLU January 2019 OTM Puts are the most actively traded options contracts in the US pre-market
  • US 2-Year Treasury Notes are flat with yields little changed 0 basis points to 2.9241%
  • US 10-Year Treasury Bonds are flat with yields little changed 0 basis points to 3.1819%
  • WTI Crude is currently down -0.79% to USD$60.19/bbl with the Brent-WTI spread up USD$2.8 to USD$9.92/bbl
  • Gold is currently little changed -0.24% to USD$1206.69/oz
  • Global oil prices are rebounding to the start the week following news that Saudi Arabia believes OPEC should cut closed to 50% of the increase in oil production made this year to address worries about oversupply -- the suggestion by Saudi Arabia translates to approximately 1 million barrels a day.
     

Stocks Trending in the News

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

  • Alibaba (BABA) posted sales of USD$30.8 billion on singles day over this weekend.  Alibaba pulled in those sales in the 24-hour period that ended at 12am Sunday.  This was Alibaba’s 10th singles day and it saw sales grow 27% year on year.  Last year Alibaba saw a 37% hike in sales.  Alibaba’s CEO Jack Ma is set to step down shortly, having previously announced his pending retirement.  Alibaba is rated “Neutral” in our China All-Cap Global Top Stock Ideas
  • Alphabet’s (GOOGL) Google has said the new EU plan to deal with copyright problems, known as Article 13, may be unrealistic.  Google said that while it has agreements for most of the videos on its YouTube service there are some in which multiple parties claim copyright.  In these cases, Google may have to delete these videos.  While a small percentage it would be many, many videos and if passed Google would likely have to remove many users content from YouTube. Something Google is warning will cause tension with its users.  Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Cheesecake Factory Inc (CAKE) was downgraded at Barclay’s to underweight from equal weight.  Cheesecake Factory Inc saw its price target lowered to USD$47 from USD$51.  The downgrade of Cheesecake Factory Inc followed its full year EPS guidance cut to USD$2.42-2.46 from USD$2.62-2.74.  Cheesecake Factory Inc is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Intelsat (I) was upgraded by Morgan Stanley to equal weight from underweight.  Intelsat has its price target hiked to USD$28 from USD$8.  Intelsat recently affirmed full year sales guidance of USD$2.06-2.11 billion, below consensus of USD$2.15 billion.  Intelsat is not rated in our Global Top Stock Ideas. 
  • Microsoft (MSFT) has pledged to support the “Paris call for trust and security in cyberspace” together with many other tech companies.  The idea of the pledge is to unite tech companies to battle election tampering, compromised electronic components and software hacks.  Microsoft has pledged its help to avoid some of the problems seen over the last few years and this effort has been spearheaded by France’s President Macron.  Microsoft is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Netflix (NFLX) said it will test lower-priced offerings of its streaming service to boost its sales.  Netflix CEO said it does not have a firm plan yet but intends to try lower prices in some markets.  Netflix plans to inform about its plans soon once completed and its CEO said there will definitely be tests soon.  Netflix is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • SAP SE (DB: SAP) will acquire Qualtrics International Incorporated (XM) for USD$8bn in the software company’s largest acquisition to date. The acquisition comes just before Qualtrics’ planned IPO, which the company initially filed for on October 19th, 2018. Qualtrics uses their software to gather and analyze data on customers, brands, employees, and products collected from emails, social media posts, and in-application data -- SAP hopes to leverage the acquisition in order to better understand its customers. SAP is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas. Qualtrics is not rated in our Global Top Stock Ideas. 
  • Softbank (9984 JP) is seeking to raise USD$21.1 billion in the IPO of its mobile phone unit.   Softbank is looking to sell 1.6 billion shares at 1,500 yen per share.  Softbank said in its filing that is intends to pay out 85% of net income which would work out to about a 5% yield at present levels.  Many analysts question whether there is appetite for so much stock at this time.  Softbank is rated “Attractive” in our Japan All-Cap Global Top Stock Ideas.
     

 

 

European Stocks

  • European stocks are edging down to the start the week in a sideways trading session 
  • There is growing concerns that UK Prime Minister Theresa May’s plan for a imminent BREXIT deal is falling apart following limited parliamentary support 
  • The Euro Stoxx 600 is currently down -0.31%, the FTSE 100 has declined -0.01%, the DAX has fallen -0.71%, and the CAC 40 is lower by -0.15%
  • The Stoxx Europe 600 hit its 50%-Fibonacci retracement level today, with the technical indicator appearing to be a resistance levels for the European broad market index 
  • Of the 192 stocks in the MSCI Europe that reported 3Q earnings results, 50% beat expectations while 8% were in-line with market forecasts.  In comparison, of the 241 stocks in MSCI Europe that reported 3Q Sales results, only 22% beat market expectations while 55% were in-line with market forecasts. 
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.47x
  • Oil & Gas (+1.18%), Telecommunications (-0.07%), and Basic Resources (+1.09%) stocks are the top performers in the Euro Stoxx 600 today
  • Automobiles & Parts (-0.59%), Food & Beverage (-0.13%), and Utilities (-0.38%) stocks are the worst performers in the Euro Stoxx 600 today
  • 85 stocks in the Euro Stoxx 600 are at 4-week highs while 26 stocks are at 4-week lows
  • 29 stocks in the Euro Stoxx 600 are overbought while 13 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 16.92 after closing at 16.38 yesterday
  • Hedging costs for the FTSE 100 is at highest level (relative to the VSTOXX) since July 2018 as opposition to UK Prime Minister Theresa May builds
  • EUR€ is currently down -0.679% against the USD$ to 1.1259
  • GBP£ is currently down -0.732% against the USD$ to 1.2877
  • CHF is currently down -0.412% against the USD$ to 0.9903
  • German 10-Year Bunds are higher with yields down -2.2 basis points to 0.385%
  • UK 10-Year GILTs are higher with yields down -4.6 basis points to 1.445%

Asian Stocks

  • Asian stocks start the week positive on weak volume following a record USD$31 billion sales figure for Alibaba’s (BABA) Singles’ Day 
  • Investors will be closely following Tencent’s (SEHK:700, ADR:TCEHY) earnings on Wednesday 
  • The Nikkei 225 finished up +0.09%, the Hang Seng ended up +0.12%, the Hang Seng China Enterprise up +0.09%, and the CSI 300 was +1.19%
  • People’s Bank of China (PBOC) says it will continue to tweak its policy to address deteriorating conditions for global growth and downward pressures on the operations of domestic Chinese companies
  • Investor sentiment for Japanese stocks finished neutral with the advance/decline ratio for the Nikkei 225 closing at 1.18x
  • 49 stocks in the Nikkei 225 hit 4-week highs while 7 stocks reached 4-week lows
  • 8 stocks in the Nikkei 225 closed overbought while 6 stocks closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished positive with the advance/decline ratio for the Hang Seng closing at 1.38x
  • 0 stocks in the Hang Seng hit 4-week highs while 2 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 2 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are higher with yields down -0.4 basis points to 0.119%
  • JGBs 2s-10s Spread has narrowed 0.2 basis points to 0.26%
  • JPY¥ is currently little changed against the USD$ at 113.91
     

 

*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 1568 7.86 10 7 1.2% 2.39%
Microsoft Corp 943 6.43 30 30 4.56% 4.81%
Morgan Stanley 808 7.71 3 3 6.34% 3.6%
Netflix Inc 789 7 -8 -12 0.94% -2.07%
Boeing Co/The 734 6.14 17 18 9.87% 10.33%

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
Wells Fargo & Co 442 8.43 -9 -11 -1.32% 2.55%
BlackRock Inc 415 8.43 4 4 -2.71% -3.63%
PepsiCo Inc 110 7.86 -14 -20 -0.06% 0.54%
Alphabet Inc 1568 7.86 10 7 1.2% 2.39%
Bank of New York Mellon Corp/The 103 7.71 4 2 1.02% 0.53%

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 14.25 78.97% 14.55 80.16% 1.02 22.22% -6.6 11.9% -0.87 35.32%
QQQ 20.84 84.13% 20.38 86.9% 0.98 26.59% -11.99 4.56% -3.28 23.02%
IWM 19.12 90.08% 18.48 90.87% 0.97 16.87% -6.31 5.95% 0.58 31.75%
FEZ 15.16 64.68% 14.66 56.75% 0.97 25.4% -3.43 14.29% -1.36 23.41%
EEM 22.99 89.29% 21.9 90.67% 0.95 14.29% -6.6 9.13% -1.67 27.78%

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
CHURCH & DWIGHT INC CHD Consumer Staples Household Products 1.72% -0.78% 29.53%
DISNEY (WALT) CO DIS Consumer Discretionary Media 1.71% 2.42% 6.2%
KAR AUCTION SERVICES INC KAR Industrials Commercial Services & Supplies 1.57% -2.84% 12.23%
AMERICAN ELECTRIC POWER CO AEP Utilities Electric Utilities 1.54% 4.45% 7.61%
PUBLIC SERVICE ENTRP GRP INC PEG Utilities Multi-Utilities 1.54% 1.52% 8.01%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
PG&E CORP PCG Utilities Electric Utilities -18.01% -17.26% -10.84%
MARRIOTT VACATIONS WORLDWIDE VAC Consumer Discretionary Hotels, Restaurants & Leisure -8.17% -19.68% -51.68%
LIGAND PHARMACEUTICAL INC LGND Health Care Biotechnology -7.65% -4.4% 13.45%
FORTINET INC FTNT Information Technology Software -4.17% 2.95% 52.18%
ROBERT HALF INTL INC RHI Industrials Professional Services -3.36% 0.88% 12.98%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
SANGAMO THERAPEUTICS INC SGMO Health Care Biotechnology -19.92% -22.03% -45.27%
FOSSIL GROUP INC FOSL Consumer Discretionary Textiles, Apparel & Luxury Goods -15.09% -23.0% 77.58%
TENABLE HOLDINGS INC TENB Information Technology Software -8.43% 1.97% -3.5%
PENNEY (J C) CO JCP Consumer Discretionary Multiline Retail -7.89% -15.2% -96.01%
ALLAKOS INC ALLK Health Care Biotechnology -7.53% 2.51% 53.15%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
HERTZ GLOBAL HOLDINGS INC HTZ Industrials Road & Rail 17.52% 27.45% -17.36%
FINISAR CORP FNSR Information Technology Communications Equipment 14.33% 26.66% 2.79%
CREE INC CREE Information Technology Semiconductors & Semiconductor Equipment 7.5% 7.8% 13.08%
BLOOM ENERGY CORP-REDH BE Industrials Electrical Equipment 7.25% -16.59% -25.1%
SYNAPTICS INC SYNA Information Technology Semiconductors & Semiconductor Equipment 5.51% -3.25% -10.87%

Source: S&P Capital IQ, StockDio

Cryptos

  • TCC, a Hong Kong-based Bitcoin (BTC) exchange, has indefinitely closed its mining pool business, BTCC Pool Limited, after operating for four years in Hong Kong. BTCC Pool Limited will shut down all mining servers on November 15th, 2018 while ceasing operations indefinitely beginning on November 30th, 2018. BTCC Pool Limited did not provide any particular reason for the indefinite shutdown of operation apart from saying it was due to, “business adjustments.” 
  • EOS (EOS) faced mounting criticisms on Friday after evidence emerged on social media showing an EOS moderator reversing transactions after they had already been confirmed. Allegedly, a dispute involving a ‘phished’ EOS account was reported to a moderator, who then made the decision to reverse transactions that occurred through that account without the owner’s permission. The situation reignited past criticisms of EOS that the cryptocurrency lacks decentralization -- in an interview las month, EOS CTO Daniel Larimer confirmed, “Decentralization isn’t what were after,” adding, “what we’re after is anti-censorship and robustness against beings shut down.” 
  • The US Commodity Futures Trading Commission (CFTC) has fined a Bitcoin (BTC) trader for more roughly USD$1.1 million and sentenced him to jail for up to 15 months in jail after he was found guilty of running a fraudulent BTC and Litecoin (LTC) scheme. Arizona resident Joseph Kim, the man in question, admitted to defrauding investors of hundreds of thousands of dollars after he misappropriated over USD$600,000 from his previous employer’s funds. After being let go from his previous employer, Kim went on to fraudulently obtain about USD$545,000 from five different individual customers between December 2017 and March 2018.  
  • X8AG, a Switzerland-based fintech company, has been awarded a certification from the Shariyah Review Bureau (SRB), a consultancy and audit firm licensed by the central bank of Bahrain, to create an Ethereum-based stablecoin. The SRB maintains a presence in 12 different countries while holding market share of more than 13% of Saudi Investment Companies that are licensed by the country’s Capital Markets Authority (CMA). X8AG’s stablecoin would be backed by seven fiat currencies and gold in an attempt to subdue volatility. 
     

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
Yirendai Ltd. YRD 11/12/2018 Earnings Release Date China All-Cap: D
HUYA Inc. HUYA 11/12/2018 Earnings Release Date China All-Cap: F
YY Inc. YY 11/12/2018 Earnings Release Date China All-Cap: D
AXA Equitable Holdings, Inc. EQH 11/12/2018 Earnings Release Date US Large-Cap: D
UGI Corporation UGI 11/12/2018 Earnings Release Date US Large-Cap: C
Lifestyle International Holdings Limited SEHK:1212 11/12/2018 Estimated Earnings Release Date China All-Cap: A
Yuexiu Property Company Limited SEHK:123 11/12/2018 Estimated Earnings Release Date China All-Cap: C
China Lilang Limited SEHK:1234 11/12/2018 Estimated Earnings Release Date China All-Cap: B
China Cinda Asset Management Co., Ltd. SEHK:1359 11/12/2018 Estimated Earnings Release Date China All-Cap: D
Want Want China Holdings Limited SEHK:151 11/12/2018 Earnings Release Date China All-Cap: B
Sunny Optical Technology (Group) Company Limited SEHK:2382 11/12/2018 Estimated Earnings Release Date China All-Cap: D
China Everbright International Limited SEHK:257 11/12/2018 Estimated Earnings Release Date China All-Cap: C
SmarTone Telecommunications Holdings Limited SEHK:315 11/12/2018 Estimated Earnings Release Date China All-Cap: A
Yue Yuen Industrial (Holdings) Limited SEHK:551 11/12/2018 Earnings Release Date China All-Cap: C
Honma Golf Limited SEHK:6858 11/12/2018 Estimated Earnings Release Date China All-Cap: C
Xinyi Solar Holdings Limited SEHK:968 11/12/2018 Estimated Earnings Release Date China All-Cap: B
Hang Lung Group Limited SEHK:10 11/12/2018 Estimated Earnings Release Date China All-Cap: C
Hang Lung Properties Limited SEHK:101 11/12/2018 Estimated Earnings Release Date China All-Cap: C
West China Cement Limited SEHK:2233 11/12/2018 Estimated Earnings Release Date China All-Cap: A
China Resources Power Holdings Company Limited SEHK:836 11/12/2018 Estimated Earnings Release Date China All-Cap: B
Samsonite International S.A. SEHK:1910 11/12/2018 Estimated Earnings Release Date China All-Cap: C
Daqo New Energy Corp. DQ 11/12/2018 Earnings Release Date China All-Cap: D
GDS Holdings Limited GDS 11/12/2018 Earnings Release Date China All-Cap: C
Aramark ARMK 11/13/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Advance Auto Parts, Inc. AAP 11/13/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Edgewell Personal Care Company EPC 11/13/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: C
The Home Depot, Inc. HD 11/13/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: A
Tyson Foods, Inc. TSN 11/13/2018 Earnings Release Date US Large-Cap: A, US Consumer Staples: B
Hollysys Automation Technologies Ltd. HOLI 11/13/2018 Earnings Release Date China All-Cap: A
SuperRobotics Limited SEHK:8176 11/13/2018 Earnings Release Date China All-Cap: C
Madrigal Pharmaceuticals, Inc. MDGL 11/13/2018 Estimated Earnings Release Date US Large-Cap: F
Hysan Development Company Limited SEHK:14 11/13/2018 Estimated Earnings Release Date China All-Cap: B
Hong Kong Aircraft Engineering Company Limited SEHK:44 11/13/2018 Estimated Earnings Release Date China All-Cap: B
PCCW Limited SEHK:8 11/13/2018 Estimated Earnings Release Date China All-Cap: C
Weibo Corporation WB 11/13/2018 Estimated Earnings Release Date China All-Cap: C
Helios and Matheson Analytics Inc. HMNY 11/13/2018 Estimated Earnings Release Date US Large-Cap: B, US Information Technology: D
New Age Beverages Corporation NBEV 11/13/2018 Estimated Earnings Release Date US Large-Cap: F, US Consumer Staples: F
Ausnutria Dairy Corporation Ltd SEHK:1717 11/13/2018 Estimated Earnings Release Date China All-Cap: B
Wheelock and Company Limited SEHK:20 11/13/2018 Estimated Earnings Release Date China All-Cap: C
Tingyi (Cayman Islands) Holding Corp. SEHK:322 11/13/2018 Estimated Earnings Release Date China All-Cap: B
Tencent Holdings Limited SEHK:700 11/13/2018 Earnings Release Date China All-Cap: B
Value Partners Group Limited SEHK:806 11/13/2018 Estimated Earnings Release Date China All-Cap: C
Link Real Estate Investment Trust SEHK:823 11/13/2018 Earnings Release Date China All-Cap: B
Baozun Inc. BZUN 11/13/2018 Estimated Earnings Release Date China All-Cap: C
Jupai Holdings Limited JP 11/13/2018 Estimated Earnings Release Date China All-Cap: D
Chongqing Rural Commercial Bank Co., Ltd. SEHK:3618 11/13/2018 Estimated Earnings Release Date China All-Cap: D
(Invalid Identifier) QRTEA 11/15/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
Xunlei Limited XNET 11/13/2018 Earnings Release Date China All-Cap: F
LexinFintech Holdings Ltd. LX 11/13/2018 Earnings Release Date China All-Cap: D

Source: S&P Capital IQ