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Global stocks rebounding as US China trade talks resume

Nov 13, 2018



 

US Stocks

  • Global stocks are gaining this AM following news that the US and China are resuming talks on addressing the trade dispute between the two countries 
  • US Treasury Secretary Steven Mnuchin and China Vice Premier Liu He have resumed their discussion on trade ahead of the meeting between US President Donald Trump and Chinese President Xi Jinping at the G20 summit in Argentina later this morning -- a few weeks ago, US President Trump directed US trade officials to begin drafting potential terms for a trade deal to be reviewed at the G20 summit 
  • US stocks index futures are advancing this morning with front-month Dow Jones minis +0.63%, S&P500 minis +0.69% and Nasdaq 100 minis +0.99% 
  • According to the trailing 10-day MACD technical indicator signal, half the stocks in the Nasadq 100 are buys – in comparison, 40% of the larger Nasdaq composite are buys according to the MACD technical signal 
  • JP Morgan stocks strategists are telling investors to buy the dip in the S&P500 as they see the benchmark US stocks index bouncing back with the US economy showing no signs of rolling over – current spread of 10-year to 2-year Treasury bond yield are historically associated with gains of 10% in the S&P500 over the next 12 months
  • USO November 30 & January 2019 OTM Puts, EEM November 16 OTM Calls & Puts, Bank of America (BAC) November 16 OTM calls and SPY November 16 & December 21 OTM Puts are the most actively traded options contracts in the US pre-market
  • The VIX is  moving down this morning and is currently at 19.59 after closing at 20.45 yesterday
  • US 10-Year Treasury Bonds are higher with yields down -1.65 basis points to 3.1654%
  • The US Treasury 2s-10s Spread has widened 0.82 basis points to 0.27%
  • WTI Crude is currently down -0.43% to USD$59.93/bbl with the Brent-WTI spread little changed USD$-0.22 to USD$7.63/bbl
  • Gold is currently little changed -0.17% to USD$1198.28/oz
  • Global oil prices are dropping following pushback from US President Trump to Saudia Arabia’s suggestion that OPEC cut production by 1 million barrels next year
     

Stocks Trending in the News

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

  • Advanced Auto Parts (AAP) reported 3Q results above expectations.  Advanced Auto Parts reported 4Q net sales of USD$2.3 billion, growing 4.3%; consensus was for USD$2.23 billion.  Advanced Auto Parts saw same store sales growth of 4.6%.  Advanced Auto Parts adjusted EPS of USD$1.89 grew 32.2%.  Advanced Auto Parts increased guidance for full year sales growth to 2-2.5%, up from 0-1.5%.  Advanced Auto Parts is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Amazon (AMZN) is set to announce it is choosing Long Island City in New York City and Crystal City in Virginia for its new HQ2.  The decision should be made public today and caps a 14 month selection process that saw cities compete with one another for the 50,000 jobs that are expected to be generated from the project.  In the end, Amazon is splitting between 2 cities due the fear of be able to hire enough people if located all in one new spot.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Aramark (ARMK) reported 4Q results that missed expectations.  Aramark reported 4Q adjusted EPS of 70 cents while the expectation was for 72 cents.  Aramark 4Q sales of USD$3.91 billion came below USD$3.95 billion expected.  Aramark hiked its quarterly dividend 5% to 11 cents from 10.5 cents.  Aramark is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Boeing (BA) withheld information about potential hazards related to a new flight control feature being implicated in the 737 Max Lion Air crash, according to a report in the Wall Street Journal today.  The system Boeing included in the newest 737 models is designed to help pilot avoid raising the nose of the airplane too high.  It is being reported that in the unusual situations the system can force the nose of the plane lower so strongly pilots are unable to recover.  Boeing informed airlines of the potential problem only last week in a safety bulletin but, according to the report, not before.  Boeing is rated “Attractive” in both our US Large-Cap and US Industrials Global Top Stock Ideas. 
  • Home Depot (HD) reported 3Q results that beat expectations handily.  Home Depot reported same stores sale growth of 4.8%, above 4.7% expected.  Home Depot delivered USD$26.3 billion in revenue also above expectations.  This is the 18th straight quarter that Home Depot has delivered earnings above estimates.  Home Depot increased sales growth expectations for the full year to 7.2%, up from 7%.  Home Depot is rated “Top Buy” in both our US Large-Cap and US Consumer Discretionary Global Top Stock Ideas.
  • Snap (SNAP) lost its executive in charge of its media division.  Nick Bell is the latest departure for the company, he was the VP of Content for the last 5 years, driving the production of original content on Snapchat.  He will leave Snap at the end of the year.  Snap is rated “Unattractive” in both our US Large-Cap and US Information Technology Global Top Stock Ideas. 
  • YY Inc (YY) provided guidance that met consensus.  YY sees 4Q revenue of 4.39-4.54 billion yuan while consensus is for 4.5 billion yuan.  YY reported 3Q results that were a bit above expectations.  YY 3Q EPS of USD$1.70 was above USD$1.76, 3Q net revenue of USD$597.4 billion came above USD$575mn estimates.  YY is rated “Unattractive” in our China All-Cap Global Top Stock Ideas.
     

 

 

European Stocks

  • European stocks are advancing this morning on hopes for progress in the trade dispute between the US and China 
  • The Euro Stoxx 600 closed up +0.44%, the FTSE 100 advanced +0.21%, the DAX rose +0.77%, and the CAC 40 finished up +0.4%
  • Better than expected earnings from mega-cap names like Vodafone (LSE:VOD) is bouying investor sentiment across the region
  • Investor sentiment for European stocks is trading positive with the advance/decline ratio for the Euro Stoxx 600 currently at 1.88x
  • Industrial Goods & Services (+1.06%), Real Estate (+0.37%), and Health Care (+0.29%) stocks were the top performers in the Euro Stoxx 600 today
  • Retail (+0.54%), Telecommunications (+2.12%), and Construction & Materials (+0.6%) stocks were the worst performers in the Euro Stoxx 600 today
  • 75 stocks in the Euro Stoxx 600 hit 4-week highs while 28 stocks closed at 4-week lows
  • 14 stocks in the Euro Stoxx 600 finished the trading session overbought while 29 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed  down -3.63 points today to 14.23 after closing at 17.86 yesterday
  • EUR€ is currently up +0.276% against the USD$ to 1.1249
  • GBP£ is currently up +0.537% against the USD$ to 1.2918
  • CHF is currently little changed against the USD$ at 0.9902
  • German 10-Year Bunds are lower with yields up 0.1 basis points to 0.399%
  • UK 10-Year GILTs are lower with yields up 2.3 basis points to 1.475%

Asian Stocks

  • Asia stocks finished their trading sessions mostly positive following news that US Treasury Secretary Steven Mnuchin and China Vice Premier Liu He have resumed their discussion on trade
  • Japanese stocks plunged in overnight trading follow a sell-off in tech stocks related to the Apple Supply chain – following negative guidance from Lumentum Holdings (LITE) after the outlook for one of its “largest customers” meaningfully reduced shipments for previously placed orders
  • The Nikkei 225 finished down --2.06%, the Hang Seng ended up +0.62%, the Hang Seng China Enterprise up +0.37%, and the CSI 300 was +1.01%
  • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.05x
  • 27 stocks in the Nikkei 225 hit 4-week highs while 13 stocks reached 4-week lows
  • 8 stocks in the Nikkei 225 closed overbought while 7 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 4x
  • 1 stock in the Hang Seng hit 4-week highs while 1 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 2-Year Government Bonds are higher with yields down -0.1 basis points to -0.138%
  • Japan 10-Year Government Bonds are higher with yields down -0.5 basis points to 0.114%
  • JGBs 2s-10s Spread has narrowed 0.4 basis points to 0.25%
  • China RMB 2-Year Government Bonds are higher with yields down -1.7 basis points to 2.916%
  • China RMB 10-Year Government Bonds are higher with yields down -0.6 basis points to 3.483%
  • China Government RMB 2s-10s Spread has widened 1.1 basis points to 0.57%
  • JPY¥ is currently little changed against the USD$ at 114.01

 

*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 1535 7.86 10 7 1.2% 2.25%
Microsoft Corp 949 6.43 30 30 4.56% 4.81%
Morgan Stanley 829 7.71 8 3 6.34% 3.6%
Netflix Inc 785 7 -10 -10 0.94% -1.44%
Goldman Sachs Group Inc/The 755 6.29 21 18 4.29% 2.94%

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 447 8.43 -11 -12 -1.35% 2.47%
BlackRock Inc 417 8.43 2 4 -2.6% -3.63%
PepsiCo Inc 119 8.14 0 -20 -0.06% 0.54%
Alphabet Inc 1535 7.86 10 7 1.2% 2.25%
Bank of New York Mellon Corp/The 119 7.71 8 3 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 16.76 89.29% 16.06 88.89% 0.96 9.33% -5.04 14.68% 0.22 37.3%
QQQ 25 94.84% 22.41 95.63% 0.9 10.71% -9.2 11.51% -2 26.59%
IWM 21.51 95.24% 19.92 95.24% 0.93 7.94% -4.81 11.51% 1.67 39.68%
FEZ 17.54 84.92% 16.78 83.73% 0.96 22.22% -2.48 19.84% 0.26 50.6%
EEM 24.11 94.05% 22.5 94.84% 0.93 7.54% -5.65 11.51% -1.1 31.75%

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
AMERICAN ELECTRIC POWER CO AEP Utilities Electric Utilities 1.16% 4.51% 8.77%
CMS ENERGY CORP CMS Utilities Multi-Utilities 1.11% 4.02% 10.73%
OGE ENERGY CORP OGE Utilities Electric Utilities 0.86% 5.27% 20.57%
SYSCO CORP SYY Consumer Staples Food & Staples Retailing 0.83% 4.26% 12.96%
DTE ENERGY CO DTE Utilities Multi-Utilities 0.77% 4.9% 11.87%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
PG&E CORP PCG Utilities Electric Utilities -19.1% -39.0% -29.94%
BROADCOM INC AVGO Information Technology Semiconductors & Semiconductor Equipment -6.64% 1.6% -14.9%
MARRIOTT VACATIONS WORLDWIDE VAC Consumer Discretionary Hotels, Restaurants & Leisure -6.03% -24.85% -57.71%
VERISIGN INC VRSN Information Technology Internet Software & Services -4.34% -4.78% 33.67%
HOME DEPOT INC HD Consumer Discretionary Specialty Retail -3.59% -1.53% -3.05%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
CIRRUS LOGIC INC CRUS Information Technology Semiconductors & Semiconductor Equipment -14.91% -11.67% -40.12%
TANDEM DIABETES CARE INC TNDM Health Care Health Care Equipment & Supplies -12.84% -14.67% 255.55%
PDC ENERGY INC PDCE Energy Oil, Gas & Consumable Fuels -11.06% -13.73% -27.16%
SANGAMO THERAPEUTICS INC SGMO Health Care Biotechnology -10.88% -32.61% -56.15%
CARVANA CO CVNA Consumer Discretionary Specialty Retail -10.54% -5.37% 87.7%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
ALLAKOS INC ALLK Health Care Biotechnology 4.88% 4.75% 58.03%
FOSSIL GROUP INC FOSL Consumer Discretionary Textiles, Apparel & Luxury Goods 4.53% -17.71% 82.1%
VISTRA ENERGY CORP VST Utilities Independent Power and Renewable Electricity Producers 2.18% -1.45% 28.97%
GREENSKY INC GSKY Information Technology IT Services 2.14% -39.06% -91.51%
PATTERSON COMPANIES INC PDCO Health Care Health Care Providers & Services 2.04% 4.11% -40.26%

Source: S&P Capital IQ, StockDio

Cryptos

  • Ahead of the upcoming Bitcoin Cash (BCH) hard fork on November 15th, it appears that Bitcoin SV maintains more hash power than Bitcoin ABC. As per data from Coin Dance, at least 63% of BCH miners are supporting Bitcoin SV while at least 18% of miners are supporting Bitcoin ABC. In public statements, CoinGeek, SVPool, BMG Pool, okminer, and mempool have all announced support of Bitcoin SV -- combined, these mining pools control at least 73% of the BCH network hashrate. Notable BCH developer Craig Wright has also suggested that he would support destroying a Bitcoin ABC implementation of BCH if the network splits, which could be done by mining empty blocks on the network if Bitcoin SV miners control more than 51% of the network hash power.  
  • Australia's Commonwealth Scientific and Industrial Research Organization’s (CSIRO Data61 division, along with the Commonwealth Bank of Australian (CommBank) announced the completion of a successful trial of a prototype blockchain application that makes money “smart”.  Dubbed Making Money Smart, the blockchain project trial saw participation from 10 members of Australia’s National Disability Insurance Scheme (NDIS) with reports of lower administration costs and less required paperwork. The application leverages smart contracts to allow participants to execute payments based on pre-defined conditions using a blockchain token. The two organizations reported that the application could improve the management of insurance payouts and budgeting.  
  • The International Monetary Fund (IMF) will use its ongoing research and experimentation with blockchain technology as an “anchor” for future blockchain and cryptocurrency policy, according to comments made on a panel. While participating in a panel at the Singapore Fintech Festival 2018, IMF Deputy General Counsel Ross Leckhow detailed three different areas that the IMF has been active in concerning blockchain technology and cryptocurrency -- these three areas include artificial intelligence (AI), distributed ledger technology (DLT), and cryptoassets. Ripple CEO Brad Garlinghouse also participated in the panel.  
  • Mitsubishi (MUFG), the large Japanese bank holding and financial services company, has signed a Memorandum of Understanding (MoU) that outlines the use of Ripple (XRP) in the creation of a new cross-border payments services to Brazil. MUFG will build this service in partnership with Brazil’s Banco Bradesco, who also signed the MoU. In March 2017, MUFG joined Ripple’s Global Payments Steering Group -- in the announcement detailing the new partnership, MUFG reiterated its faith in Ripple’s technology.  
     

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
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 11/25/2018 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
ZTO Express (Cayman) Inc. ZTO 11/14/2018 Earnings Release Date China All-Cap: C
Vipshop Holdings Limited VIPS 11/14/2018 Earnings Release Date China All-Cap: D
The Progressive Corporation PGR 11/14/2018 Earnings Release Date US Large-Cap: A
Macy's, Inc. M 11/14/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
NetApp, Inc. NTAP 11/14/2018 Earnings Release Date US Large-Cap: C, US Information Technology: A
Esterline Technologies Corporation ESL 11/14/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: D
IGG Inc SEHK:799 11/14/2018 Estimated Earnings Release Date China All-Cap: C
Zheng Li Holdings Limited SEHK:8283 11/14/2018 Estimated Earnings Release Date China All-Cap: D
Applied Materials, Inc. AMAT 11/14/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: B
Nordstrom, Inc. JWN 11/14/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
NVIDIA Corporation NVDA 11/14/2018 Earnings Release Date US Large-Cap: B, US Information Technology: A
Sonos, Inc. SONO 11/14/2018 Earnings Release Date US Large-Cap: F
Future Land Development Holdings Limited SEHK:1030 11/14/2018 Estimated Earnings Release Date China All-Cap: C
Jinchuan Group International Resources Co. Ltd SEHK:2362 11/14/2018 Estimated Earnings Release Date China All-Cap: C
China Grand Pharmaceutical and Healthcare Holdings Limited SEHK:512 11/14/2018 Estimated Earnings Release Date China All-Cap: B
China Investment Fund International Holdings Limited SEHK:612 11/14/2018 Estimated Earnings Release Date China All-Cap: C
CAR Inc. SEHK:699 11/14/2018 Estimated Earnings Release Date China All-Cap: C
Truly International Holdings Limited SEHK:732 11/14/2018 Estimated Earnings Release Date China All-Cap: D
Tiangong International Company Limited SEHK:826 11/14/2018 Estimated Earnings Release Date China All-Cap: C
Cathay Pacific Airways Limited SEHK:293 11/14/2018 Estimated Earnings Release Date China All-Cap: C
NetEase, Inc. NTES 11/14/2018 Earnings Release Date China All-Cap: C

Source: S&P Capital IQ