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Stocks advancing with rally in global tech boosting investor sentiment

Jan 24, 2019

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Market data as of 6:45am EST

 

US Stocks

  • US stocks index futures are bouncing back this morning with front-month Dow Jones minis +0.20%, S&P 500 minis +0.25% and Nasdaq 100 minis +0.55% 
  • US investors will be closely following the release of US initial jobless claims for the week ending January 19th at 8:30am.  Economists forecast 218k vs. 213k in the previous period.   
  • The Nasdaq Composite is testing its 50-day moving average: a breakdown below the short-term moving average signal or a bounce off of it will drive near-term sentiment for tech stocks 
  • Research by Bank of America suggests institutional investors are showing a preference for individual stock picking at the expense of buying ETFs.  Will CY2019 be the year that Active Investing finally bounces back?
  • Bloomberg publishes a fascinating analysis of “passive” funds to find that many are really “passive-aggressive” with a focus on the creation of unique indices to help these supposed funds help beat the market.  At the moment, there are over 3.7 million unique indices.  This isn’t what Jack Bogle envisioned when he launched his first index fund!
  • The VIX is little changed this morning and is currently at 19.58 after closing at 19.52 yesterday
  • SPY January 25 OTM Puts and S&P 500 index minis (XSP) March 29 OTM Puts are some of the most actively traded US options contracts in the US pre-market today 
  • Credit Suisse is making the argument that a “renormalization” of the VIX will boost US stocks valuations over the next few months -- the VIX has begun its mean reversion down to its long-run average of 16.0 after touching a recent peak of 36.07 on December 24
  • US 10-Year Treasury Bonds are higher with yields down -1.09 basis points to 2.73%
  • The US Treasury 2s-10s Spread has narrowed 0.26 basis points to 0.16%
  • WTI Crude is currently down -0.29% to USD$52.42/bbl with the Brent-WTI spread little changed USD$-0.21 to USD$7.85/bbl
  • Gold is currently little changed -0.23% to USD$1279.73/oz

Stocks Trending in the News

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

  • American Airlines (AAL) announced CY4Q2018 financials that mostly surpassed analyst expectations. American Airlines reported adjusted EPS of USD$1.04/share in CY4Q2018 while analysts expected USD$1.02/share. American Airlines generated operating revenue of USD$10.94bn in the quarter, slightly missing analysts’ consensus of USD$10.95bn. American Airlines is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • American Electric Power (AEP) reported fourth quarter EPS from continuing operations of 72 cents while consensus was for 70 cents.  American Electric Power fourth quarter revenue came at USD$3.8 billion while USD$ 3.6 billion was consensus.  American Electric Power is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Bristol-Myers Squibb (BMY) reported fourth quarter adjusted EPS of 94 cents while consensus was for 85 cents.  Bristol-Myers Squibb fourth quarter revenue came at USD$5.97 billion, USD$ 5.99 billion was consensus.  Bristol-Myers Squibb affirmed 2019 EPS guidance of USD$4.10-4.20.   Bristol-Myers Squibb is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Freeport-McMoRan Inc. (FCX) reported fourth quarter EPS of USD$0.11/share while consensus was for USD$0.18/share.  Freeport fourth quarter revenue came at USD$3.68bn while analysts expected USD$3.77bn.   Freeport is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Jet Blue (JBLU) reported fourth quarter adjusted EPS of 50 cents while consensus was for 42 cents.  Jet Blue fourth quarter operating revenue came at USD$1.97 billion versus USD$1.96 billion consensus.  Jet Blue is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • McCormick (MKC) reported fourth quarter EPS of USD$1.67 while consensus was for USD$1.70.  McCormick fourth quarter revenue came at USD$1.5 billion versus USD$1.55 billion expeceted.  McCormick is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Microsoft Corporation’s (MSFT) Bing search engine has officially been banned in China. While other search engines like Alphabet’s (GOOGL) Google were previously banned in China, Bing was allowed to operate because it sensors search results. Microsoft is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas. Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Southwest Airlines (LUV) reported fourth quarter EPS of USD$1.17, above the highest estimate, while consensus was for USD$1.07.  Southwest Airline's fourth quarter operating revenue came at USD$5.7 billion.  Revenue per seat mile grew 1.8% in the quarter.  Southwest Airlines is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • STMicroelectronics (ENXTPA: STM) reported strong CY4Q2018 financials while providing CY1Q2019 guidance that indicates a q/q revenue decrease of about 20.7%, or a y/y decrease of about 5.7%. STMicroelectronics generated USD$418mm of net income in CY4Q2018 while analysts expected just USD$376mm. STM Microelectronics is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Tencent Holdings Ltd. (SEHK: 700), along with private equity firms Hillhouse Capital and KKR & Co., are reportedly considering bids to acquire a major stake in gaming company Nexon Co. (TSE: 3659). Other buyout firms are also reportedly considering the acquisition. As per people familiar with the matter, NXC is currently working with Deutsche Bank and Morgan Stanley to weigh its sale options. Tencent is rated “Attractive” in our China All-Cap Global Top Stock Ideas. Nexon is not rated in our Global Top Stock Ideas.
  • Textron (TXT) reported fourth quarter EPS from continuing operations of USD$1.02 while consensus was for 98 cents.  Textron fourth quarter revenue came at below expectations at USD$3.75 billion while USD$4 billion was consensus.  Textron is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Union Pacific Corporation (UNP) reported CY4Q2018 earnings that beat analysts’ consensus. Union Pacific recorded USD$2.12 EPS in CY4Q2018 while analysts expected USD$2.06/share. Union Pacific’s operating revenue of USD$5.76bn in CY4Q2018 also beat analyst expectations of SUD$5.73bn. Union Pacific is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • W.W. Grainger (GWW) announced CY4Q2018 adjusted EPS that beat analyst estimates while reporting CY2019 EPS guidance, the midpoint of which misses analyst estimates. Grainger observed CY4Q2018 adjusted EPS of USD$3.96/share, beating analysts’ consensus of USD$3.59/share. Grainger sees CY2019 EPS of between USD$17.10/share and USD$18.70/share while the analyst consensus was for USD$18.04/share. Grainger is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas. 

 

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European Stocks

  • European stocks are advancing with the rally in global tech, shrugging off weaker Euro area PMIs
  • The Euro Stoxx 600 is currently up +0.43%, the FTSE 100 has declined -0.11%, the DAX has advanced +0.6%, and the CAC 40 has risen +0.79%
  • January German PMI surprised by coming in at 52.1 vs. market forecasts of 51.9 
  • French January PMI really disappointed with a reading of 47.9 vs. market forecasts of 51.0 
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 2.14x
  • Oil & Gas (+0.3%), Telecommunications (-0.33%), and Basic Resources (+0.44%) stocks are the top performers in the Euro Stoxx 600 today
  • Automobiles & Parts (+1.54%), Food & Beverage (+0.4%), and Utilities (+0.25%) stocks are the worst performers in the Euro Stoxx 600 today
  • 124 stocks in the Euro Stoxx 600 are at 4-week highs while 11 stocks are at 4-week lows
  • 28 stocks in the Euro Stoxx 600 are overbought while 6 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 16.03 after closing at 16.48 yesterday
  • EUR€ is currently down -0.343% against the USD$ to 1.1342
  • GBP£ is currently down -0.329% against the USD$ to 1.3026
  • CHF is currently little changed against the USD$ at 1.0043
  • German 10-Year Bunds are higher with yields down -2.5 basis points to 0.2%
  • UK 10-Year GILTs are higher with yields down -4.1 basis points to 1.285%

Asian Stocks

  • Asia stocks finish their trading session broadly higher following a region-wide rally in tech stocks
  • The Nikkei 225 finished down --0.09%, the Hang Seng ended up +0.42%, the Hang Seng China Enterprise up +0.56%, and the CSI 300 was +0.56%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 1.68x
  • 13 stocks in the Nikkei 225 hit 4-week highs while 1 stock reached 4-week lows
  • 1 stock in the Nikkei 225 closed overbought while 0 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 2.57x
  • 12 stocks in the Hang Seng hit 4-week highs while 0 stocks reached 4-week lows
  • 2 stocks in the Hang Seng closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure
  • Japan 2-Year Government Bonds are lower with yields up 0.4 basis points to -0.16%
  • Japan 10-Year Government Bonds are lower with yields up 0.6 basis points to 0.011%
  • JGBs 2s-10s Spread has widened 0.2 basis points to 0.17%
  • JPY¥ is currently little changed against the USD$ at 109.75

 

*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
Goldman Sachs Group Inc/The 38 0.57 -14 -19 -0.81% -4.25%
JPMorgan Chase & Co 20 0.29 -11 -8 -0.9% -0.87%
Wells Fargo & Co 18 0.43 -16 -18 0.5% 0.31%
Lockheed Martin Corp 13 1.43 2 14 -0.63% 1.17%
Berkshire Hathaway Inc 8 1.14 -2 4 1.00% 1.29%

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
Lockheed Martin Corp 13 1.43 2 14 -0.63% 1.17%
Mastercard Inc 3 1.43 -1 25 -0.09% 4.53%
Berkshire Hathaway Inc 8 1.14 -2 4 1.00% 1.29%
Goldman Sachs Group Inc/The 38 0.57 -14 -19 -0.81% -4.25%
Wells Fargo & Co 18 0.43 -16 -18 0.5% 0.31%

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 16.3 71.43% 16.92 81.15% 1.04 41.27% -9.85 11.9% -6.78 8.33%
QQQ 21.89 69.05% 21.52 77.38% 0.98 41.47% -10.85 12.3% -10.46 3.17%
IWM 20.42 77.78% 19.53 78.77% 0.96 27.38% -4.89 16.27% -6.06 3.57%
FEZ 15.25 48.61% 15.35 48.41% 1.01 53.17% -4.18 13.1% -3.19 9.52%
EEM 18.72 47.62% 19.37 49.6% 1.03 61.71% -0.25 53.97% -3.37 14.29%

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
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

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Winners Ticker Sector Industry 1D Return 5D Return YTD
INTL BUSINESS MACHINES CORP IBM Information Technology IT Services 8.12% 8.77% -10.46%
FISERV INC FISV Information Technology IT Services 3.02% 7.14% 21.22%
AMPHENOL CORP APH Information Technology Electronic Equipment, Instruments & Components 2.77% 2.84% -4.11%
LAMB WESTON HOLDINGS INC LW Consumer Staples Food Products 2.76% 5.41% 28.42%
INSPERITY INC NSP Industrials Professional Services 2.47% 7.35% 60.22%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
JONES LANG LASALLE INC JLL Real Estate Real Estate Management & Development -1.89% 1.33% -10.9%
CBRE GROUP INC CBRE Real Estate Real Estate Management & Development -1.67% 1.54% -7.78%
ASGN INC ASGN Industrials Professional Services -1.6% 1.3% -4.98%
ANSYS INC ANSS Information Technology Software -1.5% 1.57% 6.57%
OLD DOMINION FREIGHT ODFL Industrials Road & Rail -1.49% 3.96% -2.18%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
PTC THERAPEUTICS INC PTCT Health Care Biotechnology -10.8% -16.48% 52.92%
CARRIZO OIL & GAS INC CRZO Energy Oil, Gas & Consumable Fuels -5.98% -9.97% -70.71%
PATTERSON-UTI ENERGY INC PTEN Energy Energy Equipment & Services -5.85% -10.75% -69.27%
SUPERIOR ENERGY SERVICES INC SPN Energy Energy Equipment & Services -5.54% -8.99% -105.79%
EXTRACTION OIL & GAS INC XOG Energy Oil, Gas & Consumable Fuels -5.33% -9.36% -120.53%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
PAPA JOHNS INTERNATIONAL INC PZZA Consumer Discretionary Hotels, Restaurants & Leisure 7.38% 5.34% -22.34%
ARCONIC INC ARNC Industrials Aerospace & Defense 5.47% -10.61% -41.92%
CARVANA CO CVNA Consumer Discretionary Specialty Retail 3.82% 4.08% 70.46%
SPRINT CORP S Communication Services Wireless Telecommunication Services 2.13% 0.98% 3.97%
STERICYCLE INC SRCL Industrials Commercial Services & Supplies 1.74% 6.34% -47.16%

Source: S&P Capital IQ, StockDio

Cryptos

  • Cryptocurrencies fell broadly lower in overnight trading with the price of Bitcoin (BTC) down 0.52% in the last 24 hours to USD$3,590.55. Nearly all major coins are in the red this morning with the exception of TRON (TRX), up 0.50% in the last 24 hours to USD$0.027011. IOTA (MIOTA) is leading the declines among major cryptocurrencies today, down 3.31% in the last 24 hours to USD$0.294555.  
  • BZX Equity Exchange, owned by the Chicago Board Options Exchange (CBOE), has officially withdrawn its request for a US Securities and Exchange Commission (SEC) rule change that would allow the listing of a Bitcoin (BTC) exchange-traded fund (ETF). The CBOE’s BTC ETF application being considered by the SEC was also backed by prominent investment firm VanEck and financial services company SolidX. As per a CBOE spokesperson, the decision to withdraw was driven by broken down talks with regulators as a result of the US government shutdown.  
  • New Hampshire lawmakers are beginning to consider legislation that would effectively legalize state payments, including payment of fees and taxes, in Bitcoin (BTC), as per documents that were originally published January 3rd. “This bill requires the State Treasurer to develop an implementation plan for the state to accept cryptocurrencies as payment for taxes and fees beginning July 1, 2020,” bill NH HB470 reads, adding that, “The plan shall address any accounting, valuation, and management issues and also identify an appropriate third party payment processor that will process cryptocurrency transactions at no cost to the state.”  
  • The British Standards Institution (BSI), the United Kingdom’s national standards body, is partnering with blockchain firm OriginTrail with an aim to revamp supply chain technology, according to a press release on Thursday. Specifically, the BSI hopes to enable more options for businesses to prove the compliance of their supply chain to various regulators. BSI CEO Howard Kerr commented in the press release, “In today's increasingly interconnected world, transparency and traceability throughout the supply chain is vital,” while adding that, “This strategic partnership aims to provide our clients with the ability to demonstrate the authenticity of their compliance through the digital records of the assessments and certifications they have achieved from BSI.”

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
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
Webster Financial Corporation WBS 1/24/2019 Earnings Release Date US Large-Cap: C
W.W. Grainger, Inc. GWW 1/24/2019 Earnings Release Date US Large-Cap: C, US Industrials: C
Textron Inc. TXT 1/24/2019 Earnings Release Date US Large-Cap: C, US Industrials: B
Union Pacific Corporation UNP 1/24/2019 Earnings Release Date US Large-Cap: B, US Industrials: B
East West Bancorp, Inc. EWBC 1/24/2019 Earnings Release Date US Large-Cap: C
Huntington Bancshares Incorporated HBAN 1/24/2019 Earnings Release Date US Large-Cap: D
JetBlue Airways Corporation JBLU 1/24/2019 Earnings Release Date US Large-Cap: C, US Industrials: C
Bristol-Myers Squibb Company BMY 1/24/2019 Earnings Release Date US Large-Cap: C
Southwest Airlines Co. LUV 1/24/2019 Earnings Release Date US Large-Cap: B, US Industrials: A
Intuitive Surgical, Inc. ISRG 1/24/2019 Earnings Release Date US Large-Cap: C
Alaska Air Group, Inc. ALK 1/24/2019 Earnings Release Date US Large-Cap: F, US Industrials: C
ResMed Inc. RMD 1/24/2019 Earnings Release Date US Large-Cap: A
Avnet, Inc. AVT 1/24/2019 Earnings Release Date US Large-Cap: C, US Information Technology: A
Norfolk Southern Corporation NSC 1/24/2019 Earnings Release Date US Large-Cap: B, US Industrials: B
E*TRADE Financial Corporation ETFC 1/24/2019 Earnings Release Date US Large-Cap: C
First Hawaiian, Inc. FHB 1/24/2019 Earnings Release Date US Large-Cap: B
Western Alliance Bancorporation WAL 1/24/2019 Earnings Release Date US Large-Cap: C
SVB Financial Group SIVB 1/24/2019 Earnings Release Date US Large-Cap: C
Associated Banc-Corp ASB 1/24/2019 Earnings Release Date US Large-Cap: C
Discover Financial Services DFS 1/24/2019 Earnings Release Date US Large-Cap: B
Intel Corporation INTC 1/24/2019 Earnings Release Date US Large-Cap: B, US Information Technology: A
Starbucks Corporation SBUX 1/24/2019 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: A
Western Digital Corporation WDC 1/24/2019 Earnings Release Date US Large-Cap: D, US Information Technology: B
PacWest Bancorp PACW 1/24/2019 Estimated Earnings Release Date US Large-Cap: C

Source: S&P Capital IQ

 

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