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Morning Brief

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Global stocks advancing following positive comments by US President Trump on US-China trade discussion

Dec 12, 2018

 

 

Market data as of 7am EST

 

US Stocks

  • Global markets rallied overnight on reported progress in China-US trade negotiations with investor sentiment on trade improving; China appears to be making real moves resolve trade differences
  • US stocks index futures are jumping up this morning and point to a further rally in US stocks today with front-month Dow Jones minis +0.69%, S&P 500 minis +0.72% and NASDAQ 100 minis +0.90%
  • The CFO of Huawei was granted bail in Canada; President Trump said he would intervene in the case if it means completing a trade agreement with China
  • The VIX is little changed this morning and is currently at 21.27 after closing at 21.76 yesterday
  • Bank of America (BAC) December 14 & January 2020 OTM Calls, USO January 2019 OTM Puts, and EEM December 21 OTM Calls are some of the most actively traded options contracts in the US pre-market
  • US 10-Year Treasury Bonds are lower with yields up 0.35 basis points to 2.8825%
  • The US Treasury 2s-10s Spread has widened 0.76 basis points to 0.12%
  • WTI Crude is currently up 1.27% to USD$52.64/bbl with the Brent-WTI spread up USD$1.02 to USD$9.41/bbl
  • Gold is currently little changed 0.05% to USD$1243.92/oz

Stocks Trending in the News

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

  • Apple (AAPL) is considering moving iPhone production out of China is tariffs become onerous, according to a Bloomberg story today.  Apple, for now, will maintain its current setup but will reassess its situation if tariffs rise more than 10%.  Up until now, iPhones have not been targeted for tariffs, but Apple will continue monitoring developments.  Apple is rated “Top Buy” in our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Boeing (BA) will see its USD$22 billion order for jets canceled by Lion Air in the wake of its 737 Max crash.  Lion Air’s owner is angry at Boeing and said he feels betrayed in an interview with Bloomberg.  The order has not been formally canceled but he is preparing to do so. Boeing is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • British American Tobacco (LSE: BATS) released a trading update that maintains its financials guidance for the second half of its fiscal year. In the trading update, British American Tobacco said that it expects to surpass its, “high single-figure constant-currency adjusted diluted EPS growth target,” for the year. British American Tobacco also highlighted strong growth in its combustibles and tobacco heating products, vapor, and oral business segments in the trading update. British American Tobacco is rated “Attractive” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • Facebook Inc. (FB) evacuated its employees from buildings in its Silicon Valley headquarters following a bomb threat late yesterday afternoon. Genevieve Grinda, a Facebook spokesperson, said on the matter, “We are working closely with local authorities to investigate this threat and further monitor the situation.” Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. 
  • Inditex (BME: ITX) reported results that were below expectations as the company resisted price cuts to drive sales, as has been the case with many other players.  Inditex saw same store sales rise 3% which came below its target range for sales growth.  Inditex did not cut prices as it is confident in its coming collection, expecting it to sell well and rekindle sales growth.  Inditex is rated “Attractive” in our European Large-Cap Global Top Stock Ideas. 
  • John Woods Group (LSE: WG) is reporting that it expects to deliver at least 10% full-year revenue growth after observing above-average growth in the first half of its fiscal year. For the full-year, John Woods Group forecasted revenue between USD$10.9bn and USD$11.1bn while projecting ebitda to come between USD$620mm and USD$630mm. The company cited increased cost synergies, successful projects, and wider market recovery as reasons for its strong performance.  John Woods Group is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • Marshalls (LSE MSLH) recent acquisition of Edenhall makes both financial and strategic sense, according to a note from Canaccord Genuity.  The notes highlight an expectation that consensus estimates will rise in the wake of the acquisition as it exposes the company to the new housing market.  Marshalls is not rated in our Global Top Stock Ideas.
  • Pandora A/S (CPSE: PNDORA) shares are falling the most in a month after Carnegie slashed its price target for the global jewelry maker from DKK375/share to DKK350/share. Carnegie cited lower estimates and weak like-for-like momentum as reasons for the price target cut, although it did maintain its “Hold” recommendation for the stock. Pandora is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Pernod Ricard SA (ENXTPA:RI) now has activist hedge fund Elliot Management as a shareholder, with the fund having built a stake of more than 2.5% in Pernod Ricard thus far.   Elliot Management is known to boost returns and improve governance in the companies in which it takes a position.  The same is expected to occur with Pernod Ricard.  Pernod Ricard is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.
  • PG&E (PCG) confirmed its workers saw damage to one of its transmission towers on the day the Camp Fire began.  The tower it mentioned is at the same location regulators have identified as that of the fire’s origin.  PG&E has lost 47% of its market cap since the fire.  PG&E is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Tencent (TCEHY, HK 700) priced its Tencent Music (TME) IPO at USD$13, the bottom of the IPO price range.  Tencent sold 82 million shares in the IPO and the company will debut with a valuation of just over USD$23 billion.  Tencent raised USD$1.1 billion in the offering.  Tencent is rated “Attractive” in our China All-Cap Global Top Stock Ideas.  Tencent Music is not rated in our Global Top Picks.
     

 

 

European Stocks

  • European stocks are trading higher following a strong overnight session in Asia, with better trade sentiment on reported US-China trade progress
  • Conservatives call for a vote of confidence on Prime Minister  May's Brexit plan
  • The Euro Stoxx 600 is currently up +1.07%, the FTSE 100 is higher by +1.3%, the DAX has advanced +1.01%, and the CAC 40 has risen +1.71%
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 5.9x
  • Oil & Gas (+1.23%), Telecommunications (+1.07%), and Basic Resources (+1.42%) stocks are the top performers in the Euro Stoxx 600 today
  • Automobiles & Parts (+1.14%), Food & Beverage (+1.32%), and Utilities (+2.01%) stocks are the worst performers in the Euro Stoxx 600 today
  • 20 stocks in the Euro Stoxx 600 are at 4-week highs while 137 stocks are at 4-week lows
  • 4 stocks in the Euro Stoxx 600 are overbought while 68 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 20.04 after closing at 21.09 yesterday
  • EUR€ is currently little changed against the USD$ at 1.1333
  • GBP£ is currently up +0.416% against the USD$ to 1.2539
  • CHF is currently down -0.228% against the USD$ to 1.0045
  • German 10-Year Bunds are lower with yields up 0.2 basis points to 0.234%
  • UK 10-Year GILTs are lower with yields up 1.1 basis points to 1.199%

Asian Stocks

  • Asian stocks rally overnight as sentiment shifts on reported progress in China-US trade talks
  • The Nikkei 225 finished up +2.15%, the Hang Seng ended up +1.61%, the Hang Seng China Enterprise up +1.68%, and the CSI 300 was +0.34%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 10.25x
  • 1 stock in the Nikkei 225 hit 4-week highs while 121 stocks reached 4-week lows
  • 0 stocks in the Nikkei 225 closed overbought while 45 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 4.56x
  • 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 2 stocks closed oversold according to the 16-day RSI Measure
  • Japan 2-Year Government Bonds are lower with yields up 0.3 basis points to -0.137%
  • Japan 10-Year Government Bonds are lower with yields up 0.5 basis points to 0.055%
  • JGBs 2s-10s Spread has widened 0.2 basis points to 0.19%
  • JPY¥ is currently little changed against the USD$ at 113.42

 

*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 811 2.57 0 8 -0.47% 0.63%
JPMorgan Chase & Co 378 4.29 -2 11 0.28% 3.42%
Microsoft Corp 303 3.29 0 30 -0.08% 4.38%
BlackRock Inc 287 6.29 -5 1 -1.99% -5.48%
Citigroup Inc 285 4.71 0 9 -0.04% 5.44%

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 91 7.14 -1 3 -0.03% 4.59%
BlackRock Inc 287 6.29 -5 1 -1.99% -5.48%
International Business Machines Corp 227 5.29 0 -1 0.1% 0.64%
Berkshire Hathaway Inc 43 5 0 2 1.13% 1.25%
Citigroup Inc 285 4.71 0 9 -0.04% 5.44%

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 18.29 92.06% 18.85 97.22% 1.03 32.54% -3.3 21.03% -0.7 38.89%
QQQ 24.5 88.89% 23.51 94.84% 0.96 26.19% -5.96 20.63% -5.32 20.24%
IWM 23.15 96.23% 22.08 98.41% 0.95 18.85% -1.11 26.19% -0.21 31.75%
FEZ 20.6 94.05% 20.23 98.81% 0.98 34.72% 1.54 61.9% 2.78 80.95%
EEM 23.86 86.51% 23.49 96.43% 0.98 32.94% 0.57 61.51% -1.33 34.92%

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
NEXSTAR MEDIA GROUP NXST Consumer Discretionary Media 3.65% -0.89% 14.88%
BROADCOM INC AVGO Information Technology Semiconductors & Semiconductor Equipment 3.12% 1.95% -5.03%
CHURCH & DWIGHT INC CHD Consumer Staples Household Products 2.7% 2.95% 34.11%
VAIL RESORTS INC MTN Consumer Discretionary Hotels, Restaurants & Leisure 1.44% -15.56% 14.01%
ABBOTT LABORATORIES ABT Health Care Health Care Equipment & Supplies 1.29% -3.33% 21.85%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
DARDEN RESTAURANTS INC DRI Consumer Discretionary Hotels, Restaurants & Leisure -3.49% -7.84% 8.22%
MARRIOTT VACATIONS WORLDWIDE VAC Consumer Discretionary Hotels, Restaurants & Leisure -2.97% -17.0% -63.19%
BLACKBAUD INC BLKB Information Technology Software -2.86% -11.44% -35.28%
DUNKIN' BRANDS GROUP INC DNKN Consumer Discretionary Hotels, Restaurants & Leisure -2.67% -6.68% 8.59%
EAGLE MATERIALS INC EXP Materials Construction Materials -2.48% -12.05% -59.4%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
BLOOM ENERGY CORP-REDH BE Industrials Electrical Equipment -9.27% -5.29% -46.84%
PORTOLA PHARMACEUTICALS INC PTLA Health Care Biotechnology -6.89% -12.34% -91.65%
TENABLE HOLDINGS INC TENB Information Technology Software -6.15% -12.41% -13.88%
FLUOR CORP FLR Industrials Construction & Engineering -5.5% -20.19% -42.03%
CARVANA CO CVNA Consumer Discretionary Specialty Retail -4.76% -23.69% 61.36%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
TANDEM DIABETES CARE INC TNDM Health Care Health Care Equipment & Supplies 3.55% -4.9% 266.38%
AGIOS PHARMACEUTICALS AGIO Health Care Biotechnology 3.38% -4.1% -9.28%
WHITING PETROLEUM CORP WLL Energy Oil, Gas & Consumable Fuels 3.31% -7.65% 8.54%
GULFPORT ENERGY CORP GPOR Energy Oil, Gas & Consumable Fuels 2.39% 9.57% -30.75%
EDITAS MEDICINE INC EDIT Health Care Biotechnology 2.08% -7.14% -14.8%

Source: S&P Capital IQ, StockDio

Cryptos

  • Cryptocurrencies are in the green for the first time this week as the of Bitcoin (BTC) is up 1.89% in the last 24 hours to USD$3,481.29. Binance Coin (BNB) and EOS (EOS) are the best performers among top cryptocurrencies, up 9.38% and 5.31% in the last 24 hours to USD$5.05 and USD$1.95, respectively. IOTA (MIOTA) and Ethereum Classic (ETC), meanwhile, are the only major cryptocurrencies in the red, down 3.17% and 1.13% in the last 24 hours to USD$0.232201 and USD$3.87, respectively.  
  • A cryptocurrency exchange-traded product (ETP) that trades on Switzerland’s Six Exchange saw record trading volumes on Thursday and Friday last week, suggesting that institutional investors may be buying the dip in cryptocurrencies. Four major cryptocurrencies underlie the HODL ETP, including Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). While HODL ETP’s one-month average daily trading is 20,000 shares, on Thursday, December 6th, and Friday, December 7th, 53,233 shares and 62.986 shares were traded, respectively.  
  • Jay Clayton, the Chairman of the US Securities and Exchange Commission (SEC), expressed his optimism for distributed ledger technology’s potential impact on traditional financial markets in a testimony before the US Senate Committee on Banking, Housing, and Urban Affairs yesterday. According to a transcript published on the SEC’s website, Clayton said, “I am optimistic that developments in distributed ledger technology can help facilitate capital formation, providing promising investment opportunities for both institutional and Main Street Investors.” Additionally, Clayton highlighted that the SEC is, “Focusing a significant amount of attention and resources on digital assets and initial coin offerings (ICOs).” 
  • Kraken, a notable cryptocurrency exchange, is seeking to raise funding with a USD$4bn valuation for the company and a USD$100,000 investment minimum, according to CoinDesk. In an email to investors, Kraken CEO Jesse Powell wrote, “There is presently a limited time opportunity available to a very small select number of clients to purchase shares.” The email goes on to detail that the exchange will close its offer on December 16th. 

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
Tailored Brands, Inc. TLRD 12/12/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
China Mengniu Dairy Company Limited SEHK:2319 12/12/2018 Estimated Earnings Release Date China All-Cap: B
Beijing Enterprises Water Group Limited SEHK:371 12/12/2018 Estimated Earnings Release Date China All-Cap: B
Kasen International Holdings Limited SEHK:496 12/12/2018 Estimated Earnings Release Date China All-Cap: C
Zai Lab Limited ZLAB 12/12/2018 Estimated Earnings Release Date China All-Cap: D
Haier Electronics Group Co., Ltd. SEHK:1169 12/12/2018 Estimated Earnings Release Date China All-Cap: C
First Pacific Company Limited SEHK:142 12/12/2018 Estimated Earnings Release Date China All-Cap: D
Zhou Hei Ya International Holdings Company Limited SEHK:1458 12/12/2018 Estimated Earnings Release Date China All-Cap: C
Tianli Education International Holdings Limited SEHK:1773 12/12/2018 Estimated Earnings Release Date China All-Cap: F
Youyuan International Holdings Limited SEHK:2268 12/12/2018 Estimated Earnings Release Date China All-Cap: C
The Bank of East Asia, Limited SEHK:23 12/12/2018 Estimated Earnings Release Date China All-Cap: C
Agile Group Holdings Limited SEHK:3383 12/12/2018 Estimated Earnings Release Date China All-Cap: C
NewOcean Energy Holdings Limited SEHK:342 12/12/2018 Estimated Earnings Release Date China All-Cap: A
Shanghai Industrial Holdings Limited SEHK:363 12/12/2018 Estimated Earnings Release Date China All-Cap: B
China Oriental Group Company Limited SEHK:581 12/12/2018 Estimated Earnings Release Date China All-Cap: A
Skyfame Realty (Holdings) Limited SEHK:59 12/12/2018 Estimated Earnings Release Date China All-Cap: D
Beijing Gas Blue Sky Holdings Limited SEHK:6828 12/12/2018 Estimated Earnings Release Date China All-Cap: F
TravelSky Technology Limited SEHK:696 12/12/2018 Estimated Earnings Release Date China All-Cap: B
Ciena Corporation CIEN 12/13/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Costco Wholesale Corporation COST 12/13/2018 Earnings Release Date US Large-Cap: B, US Consumer Staples: C
Razer Inc. SEHK:1337 12/13/2018 Estimated Earnings Release Date China All-Cap: F
China Everbright Limited SEHK:165 12/13/2018 Estimated Earnings Release Date China All-Cap: B
Shuang Yun Holdings Limited SEHK:1706 12/13/2018 Estimated Earnings Release Date China All-Cap: F
Hope Education Group Co., Ltd. SEHK:1765 12/13/2018 Estimated Earnings Release Date China All-Cap: F
Sunac China Holdings Limited SEHK:1918 12/13/2018 Estimated Earnings Release Date China All-Cap: C
51 Credit Card Inc. SEHK:2051 12/13/2018 Estimated Earnings Release Date China All-Cap: D
China Huarong Asset Management Co., Ltd. SEHK:2799 12/13/2018 Estimated Earnings Release Date China All-Cap: F
Vobile Group Limited SEHK:3738 12/13/2018 Estimated Earnings Release Date China All-Cap: D
Beijing Enterprises Holdings Limited SEHK:392 12/13/2018 Estimated Earnings Release Date China All-Cap: B
China Communications Services Corporation Limited SEHK:552 12/13/2018 Estimated Earnings Release Date China All-Cap: B
Pan Asia Environmental Protection Group Limited SEHK:556 12/13/2018 Estimated Earnings Release Date China All-Cap: D
Beijing Capital International Airport Company Limited SEHK:694 12/13/2018 Estimated Earnings Release Date China All-Cap: B
Sinopec Kantons Holdings Limited SEHK:934 12/13/2018 Estimated Earnings Release Date China All-Cap: C
Adobe Inc. ADBE 12/13/2018 Estimated Earnings Release Date US Large-Cap: A, US Information Technology: C
Sanderson Farms, Inc. SAFM 12/13/2018 Estimated Earnings Release Date US Large-Cap: F, US Consumer Staples: C
Prada S.p.A SEHK:1913 12/13/2018 Estimated Earnings Release Date China All-Cap: C

Source: S&P Capital IQ