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Morning Brief

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

Global markets are mixed as US stocks decline with worries about a fallout from charges against Huawei

Jan 29, 2019

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Market data as of 7am EST

 

US Stocks

  • US prosecutors have formally filed criminal charges against Huawei Technologies, raising fears about the potential for a breakdown in talks between US and China trade officials 
  • Bloomberg suggests the rotation into defensive stocks which started in late CY2018 points to a market bottom and an end to the current correction in stocks valuations 
  • S&P 500 stocks buying back their stocks is back in vogue with the S&P 500 buyback index up 16% since the S&P 500 hit its 12-month low on December 24th 
  • Large-cap oil stocks will be under the microscope this earnings season following the margin crush in 4Q from falling oil prices in the quarter with a greater focus on capital allocation and dividends
  • While Bitcoin is viewed as an uncorrelated asset, historically, it has failed to properly serve as a hedge against a falling S&P 500 -- since July 2010, Bitcoin has only recorded positive returns in 3 of the 10 worst months for the S&P 500 (in terms of returns).
  • The VIX is little changed this morning and is currently at 19.05 after closing at 18.87 yesterday
  • SPY March 15 & June 21 OTM Puts, USO February 1 OTM Puts and EEM February 15 OTM Calls & Puts are some of the most actively traded options contracts in the US pre-market this morning
  • US 10-Year Treasury Bonds are higher with yields down -0.73 basis points to 2.7367%
  • The US Treasury 2s-10s Spread has widened 0.38 basis points to 0.16%
  • WTI Crude is currently down -2.8% to USD$51.99/bbl with the Brent-WTI spread up USD$3.69 to USD$8.01/bbl
  • NYMEX gasoline spreads, a measure of Refiner profitability, as dropped to an 8-year low following an unexpected build up in domestic motor fuel inventories
  • Gold is currently up 0.33% to USD$1307.6/oz

Stocks Trending in the News

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

  • 3M (MMM) reported fourth quarter adjusted EPS of USD$2.31 while consensus was for USD$2.28.  3M fourth quarter revenue came at USD$7.9 billion, missing consensus of USD$7.86 billion.  3M gave guidance for 2019 EPS of USD$10.45-10.90, down from USD$10.60-11.05.  3M is rated “Attractive” in our US Large-Cap Global Top Stock Ideas “Neutral” in our US Industrials Global Top Stock Ideas.
  • Biogen (BIIB) reported fourth quarter EPS of USD$6.33 while consensus was for USD$6.69.  Biogen fourth quarter revenue came at USD$3.53 billion, missing consensus of USD$3.39 billion.  Biogen gave guidance for 2019 EPS of USD$28-29.  Biogen is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Corning Inc. (GLW) announced core EPS of USD$0.59/share while consensus was for USD$0.57/share. Corning generated revenue of USD$3.08bn, beating analysts' consensus of USD$3.01bn. Corning is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Harris Corp. (HRS) reported fourth quarter EPS of USD$1.88 while consensus was for USD$1.90.  Harris Corp. fourth quarter revenue came at USD$1.666 billion, in line with consensus of USD$1.64 billion.  Harris Corp. is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials.
  • L3 Technologies (LLL) reported fourth quarter EPS of USD$3.10 beating consensus of USD$2.69.  L3 Technologies fourth quarter revenue came at USD$2.77 billion, above consensus of USD$2.66 billion.  L3 Technologies is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials.
  • Nucor (NUE) reported fourth quarter EPS of USD$2.07 beating consensus of USD$1.94.  Nucor fourth quarter revenue came at USD$6.3 billion, in line with consensus of USD$6.3 billion.  Nucor is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Pfizer Inc. (PFE) reported fourth quarter EPS of USD$0.64 while consensus was for USD$0.63.  Pfizer fourth quarter revenue came at USD$14.0bn, missing consensus of USD$13.9 billion.  Pfizer gave guidance for 2019 EPS of between USD$2.82/share and USD$2.92/share while analysts’ consensus called for USD$3.04/share.  Pfizer is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology.
  • PulteGroup (PHM) reported fourth quarter EPS of USD$1.11 while consensus was for USD$1.10.  PulteGroup fourth quarter revenue came at USD$2.99 billion, missing consensus of USD$2.91 billion.    PulteGroup is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Rockwell Automation (ROK) reported FY1Q2019 EPS of USD$2.21  while consensus was for USD$2.01  Rockwell Automation fourth quarter revenue came at USD$1.64bn, in-line with consensus of USD$1.64bn.  Rockwell Automation sees FY2019 EPS of between USD$8.85/share and USD$9.25/share, the midpoint of which beats consensus of USD$8.96/share.  Rockwell Automation is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Verizon (VZ) reported fourth quarter EPS of USD$1.12 while consensus was for USD$1.08.  Verizon fourth quarter revenue came at USD$34.28 billion, missing consensus of USD$34.44 billion.  Verizon gave guidance for 2019 EPS of ~USD$4.73.  Verizon is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Xerox (XRX) reported fourth quarter EPS of USD$1.14  while consensus was for USD$1.04.  Xerox fourth quarter revenue came at USD$2.53 billion, matching consensus of USD$2.56 billion.  Xerox gave guidance for 2019 EPS of USD$3.70-3.80.  Xerox is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology.
     

 

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European Stocks

  • European stocks are advancing, bouncing back from yesterday’s decline 
  • The UK Parliament is set to vote on the revised BREXIT proposal from UK Prime Minister Theresa May this evening 
  • The Euro Stoxx 600 is currently up +0.61%, the FTSE 100 is higher by +1.3%, the DAX has fallen -0.01%, and the CAC 40 has risen +0.51%
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 2.8x
  • Oil & Gas (+0.92%), Telecommunications (+0.27%), and Basic Resources (+0.77%) stocks are the top performers in the Euro Stoxx 600 today
  • Automobiles & Parts (-0.1%), Food & Beverage (+1.01%), and Utilities (+0.96%) stocks are the worst performers in the Euro Stoxx 600 today
  • European tech stocks are dropping following news that Taiwan Semiconductor Manufacturing Co (TSEC:2330, ADR: TSMC) suppliers have agreed to price cuts
  • 88 stocks in the Euro Stoxx 600 are at 4-week highs while 21 stocks are at 4-week lows
  • 21 stocks in the Euro Stoxx 600 are overbought while 4 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 15.65 after closing at 16.16 yesterday
  • EUR€ is currently little changed against the USD$ at 1.1433
  • GBP£ is currently little changed against the USD$ at 1.3148
  • CHF is currently little changed against the USD$ at 1.0069
  • German 10-Year Bunds are higher with yields down -0.1 basis points to 0.204%
  • UK 10-Year GILTs are lower with yields up 0.7 basis points to 1.272%

Asian Stocks

  • Asia stocks finished mixed again, off intraday highs as the formal criminal charges against Huawei Technologies and negative guidance from Caterpillar (CAT) and Nvidia (NVDA) for their Chinese businesses put a crimp into investor enthusiasm 
  • The Nikkei 225 finished up +0.08%, the Hang Seng ended down -0.16%, the Hang Seng China Enterprise declined -0.14%, and the CSI 300 was +0.32%
  • Since hitting their lows in December, Asian stocks have gained nearly USD$1.6 trillion in value, though that rally is looking fragile with increasing worries about slowing economic growth in China 
  • Hong Kong retailers lagged the recent rally in Hong Kong with weak, disappointing tourist spending from mainland China pressuring retailer valuations
  • Investor sentiment for Japanese stocks finished neutral with the advance/decline ratio for the Nikkei 225 closing at 1.1x
  • 65 stocks in the Nikkei 225 hit 4-week highs while 9 stocks reached 4-week lows
  • 0 stocks in the Nikkei 225 closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished positive with the advance/decline ratio for the Hang Seng closing at 1.27x
  • 29 stocks in the Hang Seng hit 4-week highs while 1 stock reached 4-week lows
  • 9 stocks in the Hang Seng closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure
  • Japan 2-Year Government Bonds are lower with yields up 0.7 basis points to -0.155%
  • Japan 10-Year Government Bonds are lower with yields up 0.7 basis points to 0.009%
  • JGBs 2s-10s Spread has little changed 0 basis points to 0.16%
  • JPY¥ is currently little changed against the USD$ at 109.45

 

*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
Amazon.com Inc 94 2.29 3 38 -0.49% -1.34%
Apple Inc 79 2.29 -35 -36 -9.39% -10.69%
Facebook Inc 56 3.43 -3 18 -0.12% 0.92%
Verizon Communications Inc 46 4.29 -3 -9 0.13% -0.01%
Netflix Inc 46 1.71 -3 -6 21.55% 19.16%

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
Caterpillar Inc 27 7.29 2 2 2.65% 3.23%
AbbVie Inc 32 4.71 1 0 3.49% 5.69%
Verizon Communications Inc 46 4.29 -3 -9 0.13% -0.01%
QUALCOMM Inc 14 4 -6 -11 -1.83% 7.76%
Accenture PLC 9 4 0 5 0.09% 0.84%

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 14.95 65.87% 16.85 79.76% 1.13 66.47% -2.75 33.33% -6.37 11.11%
QQQ 20.91 66.67% 20.43 68.25% 0.98 41.27% -2.74 40.48% -10.24 5.56%
IWM 19.25 73.02% 19.21 76.98% 1 40.48% 0.37 49.6% -6.06 4.56%
FEZ 14.35 36.51% 15.05 41.47% 1.05 69.05% -2.13 28.97% -3.47 9.13%
EEM 18.58 46.23% 19.42 49.6% 1.05 75.6% 0.05 59.33% -2.86 20.24%

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
COLGATE-PALMOLIVE CO CL Consumer Staples Household Products 1.44% 0.85% -14.94%
STORE CAPITAL CORP STOR Real Estate Equity Real Estate Investment Trusts (REITs) 1.43% 3.37% 23.08%
VORNADO REALTY TRUST VNO Real Estate Equity Real Estate Investment Trusts (REITs) 1.4% 2.11% -9.55%
VAIL RESORTS INC MTN Consumer Discretionary Hotels, Restaurants & Leisure 1.13% -0.4% -9.89%
TAPESTRY INC TPR Consumer Discretionary Textiles, Apparel & Luxury Goods 1.01% 2.13% -14.84%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
ABBVIE INC ABBV Health Care Biotechnology -4.31% -14.86% -19.3%
RESMED INC RMD Health Care Health Care Equipment & Supplies -3.22% -25.23% 8.24%
MELLANOX TECHNOLOGIES LTD MLNX Information Technology Semiconductors & Semiconductor Equipment -3.09% -0.36% 24.13%
ALIGN TECHNOLOGY INC ALGN Health Care Health Care Equipment & Supplies -2.55% 0.63% -1.4%
PARKER-HANNIFIN CORP PH Industrials Machinery -2.09% -3.02% -22.04%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
ANAPTYSBIO INC ANAB Health Care Biotechnology -6.85% -14.8% -46.78%
EXTRACTION OIL & GAS INC XOG Energy Oil, Gas & Consumable Fuels -5.68% -18.6% -126.9%
CALIFORNIA RESOURCES CORP CRC Energy Oil, Gas & Consumable Fuels -5.25% -12.92% -3.62%
SUPERIOR ENERGY SERVICES INC SPN Energy Energy Equipment & Services -5.2% -6.45% -99.18%
GLOBAL BLOOD THERAPEUTICS GBT Health Care Biotechnology -4.76% -8.96% 7.14%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
CYRUSONE INC CONE Real Estate Equity Real Estate Investment Trusts (REITs) 4.69% 0.42% -7.75%
SANDERSON FARMS INC SAFM Consumer Staples Food Products 3.74% 1.39% -7.7%
SHAKE SHACK INC SHAK Consumer Discretionary Hotels, Restaurants & Leisure 2.88% 0.55% 12.83%
HEWLETT PACKARD ENTERPRISE HPE Information Technology Technology Hardware, Storage & Peripherals 2.0% 6.46% 9.51%
PLANTRONICS INC PLT Information Technology Communications Equipment 1.97% 4.76% -31.05%

Source: S&P Capital IQ, StockDio

Cryptos

  • Cryptocurrencies continued to fall lower overnight as the price of Bitcoin (BTC) dipped below the USD$3,400 level but has since bounced off lows, down 1.24% in the last 24 hours to USD$3,423.90. Binance Coin (BNB) is down the most among major cryptocurrencies, depreciating 11.65% in the last 24 hours to USD$6.12. Stellar (XLM) also lags most major cryptocurrencies today, down 5.90% in the last 24 hours to USD$0.083654. Waves (WAVES) continues to move against the broader cryptocurrency market, soaring 9.73% in the last 24 hours to USD$2.93.  
  • The BitTorrent token (BTT) sale conducted on the Binance Launchpad platform on Monday concluded in less than 15 minutes and sold out of all 50 billion tokens, bringing in about USD$7.1mm. BTT will be used for BitTorrent, a peer-to-peer file sharing network, to, “transact in computing resources shared between BitTorrent clients and any other participating service requesters and service providers.” Each BTT was priced at USD$0.00012.  
  • The Central Bank of Iran may be set to ban, “unapproved,” cryptocurrencies from domestic use after publishing a report titled, “Obligations and Rules Regarding Cryptocurrencies.” A translation of the report reads, “any cryptocurrency wallets will be used only for holding and transferring cryptocurrencies and integrating any kinds of services in wallets using cryptocurrencies is forbidden.” The report does not detail which cryptocurrencies are/would be approved and disapproved.  
  • Ledger, a popular French-based cryptocurrency wallet hardware manufacturer, has launched a dedicated movie application, dubbed Ledger Live, for a suite of its products, as per an official company blog post on Monday. The blog post details that the mobile application will allow Ledger Nano X wallet holders to use their wallet without requiring a cable and/or Bluetooth connection. Additionally, Ledger wallet holders can use the mobile application for, “consultation mode,” which allows users to check their wallet balance information

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
Brinker International, Inc. EAT 1/29/2019 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
CIT Group Inc. CIT 1/29/2019 Earnings Release Date US Large-Cap: F
Verizon Communications Inc. VZ 1/29/2019 Earnings Release Date US Large-Cap: B
Xerox Corporation XRX 1/29/2019 Earnings Release Date US Large-Cap: C
Biogen Inc. BIIB 1/29/2019 Earnings Release Date US Large-Cap: C
Danaher Corporation DHR 1/29/2019 Earnings Release Date US Large-Cap: B
Whirlpool Corporation WHR 1/29/2019 Earnings Release Date US Large-Cap: F, US Consumer Discretionary: C
Rockwell Automation, Inc. ROK 1/29/2019 Earnings Release Date US Large-Cap: C, US Industrials: C
Allergan plc AGN 1/29/2019 Earnings Release Date US Large-Cap: C
Corning Incorporated GLW 1/29/2019 Earnings Release Date US Large-Cap: C, US Information Technology: A
PulteGroup, Inc. PHM 1/29/2019 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: A
Eagle Materials Inc. EXP 1/29/2019 Earnings Release Date US Large-Cap: C
Harris Corporation HRS 1/29/2019 Earnings Release Date US Large-Cap: A, US Industrials: C
L3 Technologies, Inc. LLL 1/29/2019 Earnings Release Date US Large-Cap: B, US Industrials: C
Graphic Packaging Holding Company GPK 1/29/2019 Earnings Release Date US Large-Cap: D
Knight-Swift Transportation Holdings Inc. KNX 1/29/2019 Earnings Release Date US Large-Cap: C, US Industrials: B
A. O. Smith Corporation AOS 1/29/2019 Earnings Release Date US Large-Cap: B, US Industrials: B
Harley-Davidson, Inc. HOG 1/29/2019 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: B
Lockheed Martin Corporation LMT 1/29/2019 Earnings Release Date US Large-Cap: B, US Industrials: C
Dover Corporation DOV 1/29/2019 Earnings Release Date US Large-Cap: D, US Industrials: C
Polaris Industries Inc. PII 1/29/2019 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
Nucor Corporation NUE 1/29/2019 Earnings Release Date US Large-Cap: A
Align Technology, Inc. ALGN 1/29/2019 Earnings Release Date US Large-Cap: A
Stryker Corporation SYK 1/29/2019 Earnings Release Date US Large-Cap: B
Robert Half International Inc. RHI 1/29/2019 Earnings Release Date US Large-Cap: A, US Industrials: C
Principal Financial Group, Inc. PFG 1/29/2019 Earnings Release Date US Large-Cap: D
Coherent, Inc. COHR 1/29/2019 Earnings Release Date US Large-Cap: D, US Information Technology: C
Equity Residential EQR 1/29/2019 Earnings Release Date US Large-Cap: C
Packaging Corporation of America PKG 1/29/2019 Earnings Release Date US Large-Cap: B
Maxim Integrated Products, Inc. MXIM 1/29/2019 Earnings Release Date US Large-Cap: C, US Information Technology: B
C.H. Robinson Worldwide, Inc. CHRW 1/29/2019 Earnings Release Date US Large-Cap: B, US Industrials: C
Juniper Networks, Inc. JNPR 1/29/2019 Earnings Release Date US Large-Cap: B, US Information Technology: B
National Instruments Corporation NATI 1/29/2019 Earnings Release Date US Large-Cap: C, US Information Technology: B
Total System Services, Inc. TSS 1/29/2019 Earnings Release Date US Large-Cap: B, US Information Technology: B
W. R. Berkley Corporation WRB 1/29/2019 Earnings Release Date US Large-Cap: D
Amgen Inc. AMGN 1/29/2019 Earnings Release Date US Large-Cap: C
Illumina, Inc. ILMN 1/29/2019 Earnings Release Date US Large-Cap: B
MKS Instruments, Inc. MKSI 1/29/2019 Earnings Release Date US Large-Cap: C, US Information Technology: B
Advanced Micro Devices, Inc. AMD 1/29/2019 Earnings Release Date US Large-Cap: C, US Information Technology: B
IDEX Corporation IEX 1/29/2019 Estimated Earnings Release Date US Large-Cap: A, US Industrials: B
The Charles Schwab Corporation SCHW 1/29/2019 Estimated Earnings Release Date US Large-Cap: C
Royal Caribbean Cruises Ltd. RCL 1/29/2019 Estimated Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
General Dynamics Corporation GD 1/29/2019 Estimated Earnings Release Date US Large-Cap: A, US Industrials: B
PayPal Holdings, Inc. PYPL 1/29/2019 Estimated Earnings Release Date US Large-Cap: B, US Information Technology: B
Affiliated Managers Group, Inc. AMG 1/29/2019 Estimated Earnings Release Date US Large-Cap: C
Anthem, Inc. ANTM 1/29/2019 Earnings Release Date US Large-Cap: C
Cree, Inc. CREE 1/29/2019 Estimated Earnings Release Date US Large-Cap: F, US Information Technology: D

Source: S&P Capital IQ

 

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