morning-quant-ride

Morning Brief

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

Global stocks rising on US-China trade optimism as talks wrap up in Beijing

Jan 08, 2019

Actionable and Transparent Quantitative ResearchActionable and Transparent Quantitative Research

 

 

Market data as of 7am EST

 

US Stocks

  • Global stock markets are rising on the likelihood of US-China trade progress amid the first face-to-face negotiations in Beijing fuels risk-on sentiment
  • US-China trade talks are wrapping up today with both sides signaling progress and China expected to make a closing statement 
  • US Commerce Secretary Wilbur Ross said yesterday, “there’s a very good chance we’ll get a reasonable settlement”
  • President Trump will give a prime-time national address this evening focused on his plan to end the US government shutdown
  • The VIX is  moving down this morning and is currently at 20.75 after closing at 21.4 yesterday
  • US 10-Year Treasury Bonds are lower with yields up 0.52 basis points to 2.68%
  • The US Treasury 2s-10s Spread has narrowed 0.71 basis points to 0.16%
  • WTI Crude is currently up 1.17% to USD$48.52/bbl with the Brent-WTI spread down USD$-0.61 to USD$8.73/bbl
  • Gold is currently down -0.42% to USD$1283.74/oz

Stocks Trending in the News

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

  • Danaher Corp. (DHR) Chief Executive Officer Thomas Joyce, Jr. is set to comment on the company’s performance at the J.P. Morgan Healthcare Conference in San Francisco today. Ahead of the conference, Danaher sees its FY4Q core revenue growth above its prior forecasts with its adjusted EPS expected to be, “at or near the high-end,” of previously announced guidance. Danaher is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Frontier Communications (FTR) was downgraded by Wells Fargo Securities to underperform from market perform.  Frontier Communications also saw its price target cut to USD$1.75 from USD$5.  Frontier Communications is working on a plan to deal with its upcoming debt maturities.  Frontier Communications is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas.
  • Geely Automotive (SEHK: 175) provided guidance that implies its challenges will continue.  Geely sees sales growth in 2019 of just 1% while many analysts are expecting double-digit sales growth.  Merrill Lynch cut its price target to HK$10 from HK$19.  Credit Suisse cut its target to HK$11 from HK$29.  Geely Automotive is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • General Dynamics (GD) had its shares downgraded at Jefferies to hold from buy.  Jefferies cut the price target of General Dynamics to USD$164 from USD$197.  General Dynamics won a USD$898 million cyber engineering contract for the US Navy, it also announced.  General Dynamics is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Maxar Technologies (MAXR) reported the failure of its Worldview-4 global imaging satellite.  It appears its gyroscopes have failed at making it remain stable on an axis.  Maxar was downgraded by Credit Suisse to underperform from neutral on the news.  Maxar Technologies is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • Nissan (TSE: 7201) CEO Hiroto Saikawa said on Monday that he wants to, “discuss whether there need to be some sorts of initiatives or changes,” as the company continues its partnership with Renault (ENXTPA: RNO). Saikawa also stressed that the alliance itself is, “not in danger.” Nissan is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas. Renault is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • PG&E (PCG) shares fell sharply yesterday on new it is exploring bankruptcy.  PG&E is considering bankruptcy because liabilities from wildfires has reached a potential USD$30 billion for the company with USD$10 billion in market cap.  The company is seeking help from the state of California for a potential bailout, though no specifics have been mentioned.  PG&E is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Samsung (KOSE: 005930) reported revenue and operating income for fiscal 4Q that missed estimates.  Samsung revenue came at 59 trillion won, below 63.6 trillion expected, a drop of 11%.  Operating income of 10.8 trillion won came below the 13.8 trillion consensus expectation.  Samsung is feeling the pinch of softer demand in its 2 key export markets of US and China.  Samsung is not rated in our Global Top Stock Ideas.
  • Sika AG (SWX: SIKA) will acquire private equity-owned Parex Group for 2.5bn Swiss francs (USD$2.6bn). The acquisition will enable Sika to expand its building materials operations into construction markets from France to China. Sika AG is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Union Pacific Corp (UNP) was upgraded at Seaport Securities to buy from neutral.  Seaport Securities raised the Union Pacific Corp price target to USD$165, implying a 19 upside to yesterday’s close.  Union Pacific is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Billions of Xiaomi Corp. (SEHK: 1810) shares will be free of their six-month lock lockup period on Wednesday, causing investors to question if it will exacerbate the stock’s drop from a listing price of HK$17/share to HK$11.10/share as of its last close. More than 3bn shares accounting for about 19% of shares outstanding will be unlocked Wednesday. JPMorgan Chase & Co. also cut its buy recommendation for Xiamoi today. Xiaomi is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions

 

European Stocks

  • European stocks are rising with expected US-China trade progress attracting buyers to the market today
  • German industrial activity’s fall yesterday was the third month in a row activity has fallen, with analyst starting to raise the specter of recession
  • The EU and UK have discussed the possibility of extending the exit day deadline, according to a report in the Telegraph today
  • The Euro Stoxx 600 is currently up +1.07%, the FTSE 100 is higher by +1.09%, the DAX has advanced +0.77%, and the CAC 40 has risen +1.41%
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 4.22x
  • Retail (+2.29%), Real Estate (+1.8%), and Industrial Goods & Services (+1.78%) stocks are the top performers in the Euro Stoxx 600 today
  • Telecommunications (-0.11%), Automobiles & Parts (+0.32%), and Basic Resources (+0.38%) stocks are the worst performers in the Euro Stoxx 600 today
  • 152 stocks in the Euro Stoxx 600 are at 4-week highs while 5 stocks are at 4-week lows
  • 4 stocks in the Euro Stoxx 600 are overbought while 0 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 19.26 after closing at 20.15 yesterday
  • EUR€ is currently little changed against the USD$ at 1.1463
  • GBP£ is currently little changed against the USD$ at 1.2773
  • CHF is currently little changed against the USD$ at 1.0211
  • German 10-Year Bunds are lower with yields up 1.2 basis points to 0.221%
  • UK 10-Year GILTs are lower with yields up 0.5 basis points to 1.254%

Asian Stocks

  • Asian stocks generally rose overnight on trade optimism though a stronger dollar limited the stock gains
  • The Nikkei 225 finished up +0.82%, the Hang Seng ended up +0.15%, the Hang Seng China Enterprise up +0.1%, and the CSI 300 was -0.22%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 2.04x
  • 11 stocks in the Nikkei 225 hit 4-week highs while 1 stock reached 4-week lows
  • 0 stocks in the Nikkei 225 closed overbought while 1 stock 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 2.57x
  • 14 stocks in the Hang Seng hit 4-week highs while 1 stock reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 3 stocks closed oversold according to the 16-day RSI Measure
  • Japan 2-Year Government Bonds are lower with yields up 2.9 basis points to -0.136%
  • Japan 10-Year Government Bonds are lower with yields up 2.2 basis points to 0.012%
  • JGBs 2s-10s Spread has narrowed 0.7 basis points to 0.15%
  • JPY¥ is currently little changed against the USD$ at 108.72

 

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

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

Stock Sentiment

Top Stocks by 7-day News Volume

On Mobile/Tablet scroll to the right.

Name 7 Day News
Volume
7 Day Average
News Buzz
1M EPS Net
Revisions
3M EPS Net
Revisions
1M EPS
% Chg
3M EPS
% Chg
Apple Inc 167 2 -30 -31 -9.09% -9.59%
BlackRock Inc 155 4.86 -5 -3 -1.52% -6.2%
Netflix Inc 144 4 -3 -10 -2.04% -4.4%
Microsoft Corp 143 3.43 -2 29 0.11% 4.63%
Morgan Stanley 128 3.29 -6 8 -2.8% 2.28%

Note: Please see our General FAQs to learn how we define and measure News Volume

Top Stocks by 7-Day Average News Buzz

On Mobile/Tablet scroll to the right.

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 155 4.86 -5 -3 -1.52% -6.2%
Netflix Inc 144 4 -3 -10 -2.04% -4.4%
PepsiCo Inc 14 3.86 -1 -4 -0.45% -0.51%
Goldman Sachs Group Inc/The 87 3.71 -10 10 -4.45% -1.68%
Microsoft Corp 143 3.43 -2 29 0.11% 4.63%

Note: Please see our General FAQs to learn how we define and measure News Buzz

Implied Volatility Data For Liquid Macro Index ETFs

On Mobile/Tablet scroll to the right.

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 17.9 84.92% 19.44 93.65% 1.09 53.77% -12.76 1.59% -6.32 6.35%
QQQ 26.29 90.87% 24.79 94.05% 0.94 24.8% -12.42 3.37% -10.39 0.4%
IWM 22.38 87.7% 22.09 92.86% 0.99 34.72% -8.84 1.98% -5.64 2.38%
FEZ 18.63 78.97% 18.81 88.49% 1.01 50.2% -2.78 19.25% -1.3 24.6%
EEM 21.67 69.05% 22.54 84.92% 1.04 68.06% 0.73 59.13% -3.45 9.13%

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

Quantitatively-Derived Options Trades: Transparent and Easily ExecutableQuantitatively-Derived Options Trades: Transparent and Easily Executable

Stock Movers From Our US Large-Cap Model

Top Buy Winners and Losers

On Mobile/Tablet scroll to the right

Winners Ticker Sector Industry 1D Return 5D Return YTD        
SPY 17.9 84.92% 19.44 93.65% 1.09 53.77% -12.76 1.59% -6.32 6.35%
QQQ 26.29 90.87% 24.79 94.05% 0.94 24.8% -12.42 3.37% -10.39 0.4%
IWM 22.38 87.7% 22.09 92.86% 0.99 34.72% -8.84 1.98% -5.64 2.38%
FEZ 18.63 78.97% 18.81 88.49% 1.01 50.2% -2.78 19.25% -1.3 24.6%
EEM 21.67 69.05% 22.54 84.92% 1.04 68.06% 0.73 59.13% -3.45 9.13%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
LAMB WESTON HOLDINGS INC LW Consumer Staples Food Products -6.89% -4.25% 25.37%
INSPERITY INC NSP Industrials Professional Services -2.38% -1.35% 47.4%
MASIMO CORP MASI Health Care Health Care Equipment & Supplies -1.7% -1.39% 19.05%
AUTOZONE INC AZO Consumer Discretionary Specialty Retail -1.61% -2.01% 11.02%
CIGNA CORP CI Health Care Health Care Providers & Services -1.17% -2.2% -8.26%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

On Mobile/Tablet scroll to the right

Winners Ticker Sector Industry 1D Return 5D Return YTD
MYRIAD GENETICS INC MYGN Health Care Biotechnology -11.28% -2.19% -22.13%
EQT MIDSTREAM PARTNERS LP EQM Energy Oil, Gas & Consumable Fuels -1.74% 4.38% -44.07%
EXTRACTION OIL & GAS INC XOG Energy Oil, Gas & Consumable Fuels -1.34% 1.13% -119.17%
GOODYEAR TIRE & RUBBER CO GT Consumer Discretionary Auto Components -0.85% 3.19% -40.83%
EQUITRANS MID CORP ETRN Energy Oil, Gas & Consumable Fuels -0.68% 5.54% -7.48%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
LOXO ONCOLOGY INC LOXO Health Care Biotechnology 50.88% 54.98% 98.94%
SAGE THERAPEUTICS INC SAGE Health Care Biotechnology 35.55% 44.69% -18.05%
QEP RESOURCES INC QEP Energy Oil, Gas & Consumable Fuels 33.86% 42.08% -16.5%
ROKU INC ROKU Consumer Discretionary Household Durables 22.36% 33.54% -21.06%
PORTOLA PHARMACEUTICALS INC PTLA Health Care Biotechnology 10.71% 23.28% -81.56%

Source: S&P Capital IQ, StockDio

Cryptos

  • Cryptocurrencies were broadly mixed overnight with Bitcoin (BTC) trading slightly higher, up 0.63% in the last 24 hours to USD$4,055.29. Tron (TRX) is outperforming major coins and is the third-best performing coin among the 100 largest cryptocurrencies, up 11.63% in the last 24 hours to USD$0.02807. Waves (WAVES) and Ethereum Classic (ETC) lagged major coins in overnight trading, down 4.00% and 2.84% in the last 24 hours to USD$2.96 and USD$5.04, respectively. 
  • Japan’s Financial Services Agency (FSA) may be seeking to regulate domestic unregistered cryptocurrency investment firms, according to a report by Cointelegraph Japan. Unregistered cryptocurrency investment firms in Japan do not fall under the jurisdiction of Japan’s Financial Instruments and Exchange Act, but the FSA is reportedly considering closing this loophole.  
  • The Ethereum Foundation has awarded a USD$5mm grant to Parity Technologies, a blockchain development firm based in the United Kingdom. As per an official post on the Ethereum (ETH) blog, the grant was awarded to Parity Technologies for scalability, usability, and security work as a part of, “Parity’s work on Casper, sharding, light clients, developer tools, QA, audits, and infrastructure improvements.” Casper is the Ethereum Network’s prospective proof of stake/proof of work verification protocol hybrid.  
  • Cameron Winklevoss, one of the Founders of Gemini, a regulated digital assets platform, discussed in an Ask Me Anything session on Reddit Monday that the company is, “committed as ever to making an ETF a reality!” Cameron Winklevoss added that, “we believe bitcoin is better at being gold than gold. If we’re right, then over time the market cap of Bitcoin will surpass the ~7trillion dollar market cap of gold.” 
     

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

On Mobile/Tablet scroll to the right

 
Company Name Ticker Event Date Event Type Q-Factor Score
Acuity Brands, Inc. AYI 1/9/2019 Earnings Release Date US Large-Cap: D, US Industrials: C
Lennar Corporation LEN 1/9/2019 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
Constellation Brands, Inc. STZ 1/9/2019 Earnings Release Date US Large-Cap: B, US Consumer Staples: C
KB Home KBH 1/9/2019 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Delta Air Lines, Inc. DAL 1/9/2019 Estimated Earnings Release Date US Large-Cap: A, US Industrials: A
SYNNEX Corporation SNX 1/10/2019 Earnings Release Date US Large-Cap: C, US Information Technology: C
Johnson Electric Holdings Limited SEHK:179 1/13/2019 Estimated Earnings Release Date #N/A
Citigroup Inc. C 1/14/2019 Earnings Release Date US Large-Cap: D
India Globalization Capital, Inc. IGCC 1/14/2019 Estimated Earnings Release Date US Large-Cap: --
JPMorgan Chase & Co. JPM 1/15/2019 Earnings Release Date US Large-Cap: D
Synovus Financial Corp. SNV 1/15/2019 Earnings Release Date US Large-Cap: C
UnitedHealth Group Incorporated UNH 1/15/2019 Earnings Release Date US Large-Cap: B
First Republic Bank FRC 1/15/2019 Earnings Release Date US Large-Cap: A
Wells Fargo & Company WFC 1/15/2019 Earnings Release Date US Large-Cap: D
Morgan Stanley MS 1/15/2019 Estimated Earnings Release Date US Large-Cap: D
Pinnacle Financial Partners, Inc. PNFP 1/15/2019 Estimated Earnings Release Date US Large-Cap: C
The Charles Schwab Corporation SCHW 1/15/2019 Estimated Earnings Release Date US Large-Cap: C
SLM Corporation SLM 1/15/2019 Estimated Earnings Release Date US Large-Cap: C

Source: S&P Capital IQ

 

Stock Model Portfolios
Multi-factor quantitatively optimized portfolios risk-adjusted to provide investors an ATTRACTIVERISK/RETURN TRADE-OFF