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Morning Brief

Wake up to the Morning Quant Ride, your global markets update every morning!

US stocks advancing in early trading on Boxing Day

Dec 26, 2018

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Market data as of 7am EST

 

US Stocks

  • US stocks index futures are rising,  as front-month Dow Jones minis +0.57%, S&P 500 minis +0.61% and Nasdaq 100 minis +0.56%
  • US holiday retails sales rose 5.1% compared with a year ago, the strongest growth in 6 years, according to a report in the Wall Street Journal today
  • The US government shutdown continues into its 5th day with no end in sight as Congress is away for the holidays.
  • Oil is catching a bid this morning with WTI up 1.7%
  • The VIX is  moving down this morning and is currently at 34.86 after closing at 36.07 Monday
  • Bank of America (BAC) December 28 OTM Calls, HYG February 15 & March 15 2019 OTM Puts, and SPY January 18 OTM Puts are some of the most actively traded options contracts in the US pre-market this morning
  • US 10-Year Treasury Bonds are lower with yields up 0.34 basis points to 2.7417%
  • The US Treasury 2s-5s Spread has narrowed 0.45 basis points to 0.02%
  • The US Treasury 2s-10s Spread has widened 0.42 basis points to 0.18%
  • WTI Crude is currently up 1.7% to USD$43.26/bbl with the Brent-WTI spread up USD$1.26 to USD$8.03/bbl
  • Gold is currently up 0.39% to USD$1273.53/oz

Stocks Trending in the News

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

  • Amazon (AMZN) reported “record-breaking” holiday season sales, saying it shipped more items worldwide than it ever has.  Amazon said tens of millions of people stated Prime memberships this holiday season.  Amazon shipped over 1 billion items for free for Prime members.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • ExxonMobil (XOM) is on track for its worst year since 1981, according to a Bloomberg report today.  ExxonMobil is in the midst of one of the biggest restructuring efforts ever, a USD$200 billion, 7-year plan.  ExxonMobil has no problem with funding the plan but the time it takes to see the fruit of these efforts could be some time in the future, the story goes on to note.  ExxonMobil is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Hitachi Construction Machinery Co. (TSE: 6305), the world’s largest maker of construction excavators, said it sees demand in 2019 flat or somewhat lower.  Hitachi Construction Machinery Co. said North America and India will not be able to make up for lagging demand in the rest of the world, as had been the recent trend.  Hitachi Construction Machinery Co. has seen 3 years of strong demand and lower commodity prices as well as trade uncertainly has tamped demand.  Hitachi Construction Machinery Co. is rated “Unattractive” in our Japan Large-Cap Global Top Stock Ideas.  
  • JD.com (JD) announced it approved a USD$1 billion share buyback program.  JD.com last approved a USD$1 billion buyback in September of 2015.  The buyback comes as the end of a year that has seen JD.com stock fall 52%.  JD.com is rated “Top Short” in our China All-Cap Global Top Stock Ideas.
  • Maruti Suzuki India Limited (NSEI: MARUTI), India’s largest automobile manufacturer, has issued an official recall of its Super Carry model. The recall pertains to a potential defect in the fuel filter of 5,900 Super Carry vehicles that were manufactured between April 26th, 2018 and August 1st, 2018. Maruti Suzuki is rated “Unattractive” in our India All-Cap Global Top Stock Ideas.
  • Mastercard (MA) said holiday sales in the US rose 5.1% from a year ago, according to a report in the Wall Street Journal.  That is the strongest growth in 6 years.  Mastercard considers the holiday season to be November 1st until December 24th.  Online sales grew 19.1% while department stores sales fell 1.3%.  Mastercard is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Mitsubishi UFJ Financial Group Inc. (TSE: 8306) has announced the promotion of Deputy Chairman Kanetsugu Mike to replace CEO Nobuyuki Hirano. Hirano will become the new Chairman of Mitsubishi UFJ’s Board of Directors while the company’s stock is down 37% YTD. Mitsubishi UFJ is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.
  • Sharp Corporation (TSE: 6753) will spin-off its electronic device business and laser business into wholly-owned units. The spin-offs will take effect on April 1st, 2019 and aim to revitalize the company’s business relating to 8K, artificial intelligence (AI), and Internet of Things (IoT). Sharp Japan is not rated in our Global Top Stock Ideas.
  • Tesla (TSLA) has been working overtime to deliver vehicles to owners before the end of the year in its usual end-of-year push.  Tesla is trying to maintain strong growth numbers while helping customers take advantage of a tax credit for 2018 that is in effect, which requires the delivery take place before 2018 comes to a close.  Tesla is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
     

 

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European Stocks

  • European stock markets are closed in observance of the Christmas holiday
  • EUR€ is currently little changed against the USD$ at 1.1385
  • GBP£ is currently little changed against the USD$ at 1.2688
  • CHF is currently down -0.316% against the USD$ to 1.0098
  • German 10-Year Bunds are flat with yields little changed 0 basis points to 0.25%
  • UK 10-Year GILTs are flat with yields little changed 0 basis points to 1.263%

Asian Stocks

  • Hong Kong is closed in observance of the Christmas holiday
  • The Nikkei 225 finished up +0.89% and the CSI 300 was -0.51%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 4.49x
  • 0 stocks in the Nikkei 225 hit 4-week highs while 220 stocks reached 4-week lows
  • 0 stocks in the Nikkei 225 closed overbought while 166 stocks closed oversold according to the 16-day RSI Measure
  • Japan 2-Year Government Bonds are lower with yields up 1.9 basis points to -0.127%
  • Japan 10-Year Government Bonds are lower with yields up 0.3 basis points to 0.022%
  • JGBs 2s-10s Spread has narrowed 1.6 basis points to 0.15%
  • China RMB 2-Year Government Bonds are lower with yields up 3.8 basis points to 2.762%
  • China RMB 10-Year Government Bonds are higher with yields down -1 basis points to 3.31%
  • China Government RMB 2s-10s Spread has narrowed 4.8 basis points to 0.55%
  • JPY¥ is currently up +0.254% against the USD$ to 110.59

 

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

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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
BlackRock Inc 159 4.86 -6 1 -2.09% -5.63%
Morgan Stanley 126 2.14 -2 3 -2.0% 2.07%
International Business Machines Corp 101 2 -1 -3 0.43% 0.85%
Goldman Sachs Group Inc/The 94 2 -9 12 -3.22% 0.1%
Microsoft Corp 87 0.57 -3 29 0.02% 4.67%

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 78 5.14 -1 2 -0.03% 4.61%
Occidental Petroleum Corp 3 5 -10 9 -11.97% -15.64%
BlackRock Inc 159 4.86 -6 1 -2.09% -5.63%
Ford Motor Co 77 4.71 1 -6 -0.12% 0.28%
Mastercard Inc 21 4.71 3 19 -0.05% 4.25%

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 31.13 100.0% 25.5 100.0% 0.82 1.98% 7.07 99.6% 4.05 85.71%
QQQ 36.56 100.0% 31.17 100.0% 0.85 2.98% 4.92 85.71% 0.63 50.4%
IWM 33.69 100.0% 28.82 100.0% 0.86 2.78% 8.72 100.0% 4.99 94.25%
FEZ 19.09 86.11% 21 98.81% 1.1 72.02% 0.3 50.4% 3.06 83.73%
EEM 27.03 98.41% 26.11 100.0% 0.97 28.57% 6.55 99.21% 1.1 69.05%

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

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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
PG&E CORP PCG Utilities Electric Utilities 1.74% -5.42% -65.33%
CBOE GLOBAL MARKETS INC CBOE Financials Capital Markets 0.12% -0.12% -15.56%
KLX INC KLXI Industrials Aerospace & Defense 0.03% 0.35% -9.68%
COSTAR GROUP INC CSGP Industrials Professional Services 0.02% -7.38% 7.68%
MASTERCARD INC MA Information Technology IT Services -0.31% -8.66% 14.5%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
CONSOLIDATED EDISON INC ED Utilities Multi-Utilities -5.98% -6.81% -6.73%
CMS ENERGY CORP CMS Utilities Multi-Utilities -5.88% -6.32% 5.78%
WASTE MANAGEMENT INC WM Industrials Commercial Services & Supplies -5.02% -6.2% -0.23%
PUBLIC SERVICE ENTRP GRP INC PEG Utilities Multi-Utilities -4.98% -6.82% 1.31%
BROADCOM INC AVGO Information Technology Semiconductors & Semiconductor Equipment -4.64% -7.28% -10.12%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
HESS CORP HES Energy Oil, Gas & Consumable Fuels -13.01% -31.18% -25.48%
FOSSIL GROUP INC FOSL Consumer Discretionary Textiles, Apparel & Luxury Goods -10.76% -14.75% 45.62%
CHESAPEAKE ENERGY CORP CHK Energy Oil, Gas & Consumable Fuels -9.37% -26.28% -86.29%
LAREDO PETROLEUM INC LPI Energy Oil, Gas & Consumable Fuels -8.51% -24.14% -129.33%
WHITING PETROLEUM CORP WLL Energy Oil, Gas & Consumable Fuels -7.15% -33.32% -37.08%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
EDITAS MEDICINE INC EDIT Health Care Biotechnology 7.11% -34.73% -56.38%
GREENSKY INC GSKY Information Technology IT Services 6.27% 9.2% -98.83%
GLOBAL BLOOD THERAPEUTICS GBT Health Care Biotechnology 4.63% -10.14% -10.22%
TENABLE HOLDINGS INC TENB Information Technology Software 4.27% -7.95% -34.05%
SNAP INC SNAP Information Technology Software 3.74% -7.44% -105.99%

Source: S&P Capital IQ, StockDio

Cryptos

  • Cryptocurrency prices corrected lower over the Christmas trading session as the price of Bitcoin (BTC) is down 10.18% since Monday’s open to USD$3,795.71. Major cryptocurrency Ripple (XRP) outperformed the broader market, falling just 4.58% since Monday’s open to USD$0.37449. Ethereum (ETH), meanwhile, fell 15.14% since Monday’s open to USD$129.66. Total cryptocurrency market capitalization currently sits at USD$128.1bn, down 10.23% from Monday’s open.  
  • GMO Internet Group, a Japanese Internet giant, is ceasing its Bitcoin mining hardware operations after an abysmal 4Q2018, according to a disclosure by the company. GMO recorded an, “extraordinary loss,” in 4Q2018 while explaining that it will, “no longer develop, manufacture, and sell,” crypto mining hardware. GMO added in its public statement that, “After taking into consideration changes in the current business environment, the Company expects that it is difficult to recover the carrying amounts of the in-house-mining-related business assets, and therefore, it has been decided to record an extraordinary loss.”  
  • The South China Morning Post (SCMP) is reporting that cryptocurrency mining giant Bitmain and notable cryptocurrency exchange Huobi have confirmed plans to lay off staff after the 2018 crypto bear market. The report quotes Bitmain saying that the company will undergo, “some adjustments to our staff this year,” adding that, “A part of building a sustainable business is having to really focus on things that are core to that mission and not things that are auxiliary. As we move into the new year, we will continue to double down on hiring the best talent from a diverse range of backgrounds.” Huobi also confirmed the plans to lay off staff while stressing that the company continues to onboard staff, “for its core business and emerging markets.”  
  • Bank of America has filed a patent application that outlines the use of blockchain technology in handling portions of the multinational investment bank’s cash handling devices. The patent, titled, “Banking Systems Controlled by Data Bearing Records,” mentions blockchain technology 58 times in discussing how it could improve traditional deposit and withdrawal systems. The patent specifically discusses the use of blockchain technology in ATM services, explaining that, “Blockchain technology may be used by automated teller machine to accelerate transaction speed and/or facilitate other types of transactions in addition to ATM transactions like cash withdrawals and deposits, such as gift registry transactions.” 

Cryptocurrencies Today

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

High Machine Learning Accuracy Rates for CryptocurrenciesHigh Machine Learning Accuracy Rates for Cryptocurrencies

Events Calendar

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Company Name Ticker Event Date Event Type Q-Factor Score
CLPS Incorporation CLPS 12/26/2018 Estimated Earnings Release Date China All-Cap: D
CT Environmental Group Limited SEHK:1363 12/27/2018 Estimated Earnings Release Date China All-Cap: D
Sanderson Farms, Inc. SAFM 12/27/2018 Estimated Earnings Release Date US Large-Cap: F, US Consumer Staples: C
Prada S.p.A SEHK:1913 12/27/2018 Estimated Earnings Release Date China All-Cap: C
SIG plc SHI 12/28/2018 Estimated Earnings Release Date China All-Cap: C
Lamb Weston Holdings, Inc. LW 1/4/2019 Earnings Release Date US Large-Cap: A, US Consumer Staples: C
RPM International Inc. RPM 1/4/2019 Earnings Release Date US Large-Cap: C
Bed Bath & Beyond Inc. BBBY 1/8/2019 Estimated Earnings Release Date US Large-Cap: D, US Consumer Discretionary: D
MSC Industrial Direct Co., Inc. MSM 1/8/2019 Estimated Earnings Release Date US Large-Cap: B, US Industrials: C
Farmmi, Inc. FAMI 1/8/2019 Estimated Earnings Release Date China All-Cap: D
Acuity Brands, Inc. AYI 1/9/2019 Earnings Release Date US Large-Cap: C, US Industrials: C
Constellation Brands, Inc. STZ 1/9/2019 Earnings Release Date US Large-Cap: B, US Consumer Staples: C
Lennar Corporation LEN 1/9/2019 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: C
KB Home KBH 1/9/2019 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: D
Delta Air Lines, Inc. DAL 1/9/2019 Estimated Earnings Release Date US Large-Cap: C, US Industrials: C
SYNNEX Corporation SNX 1/10/2019 Earnings Release Date US Large-Cap: D, US Information Technology: C
First Republic Bank FRC 1/10/2019 Estimated Earnings Release Date US Large-Cap: B

Source: S&P Capital IQ

 

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