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Global Stocks rising on China PMI data pointing to boost in Chinese domestic demand

Mar 01, 2019

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Market data as of 7am EST

 

US Stocks

  • US stocks index futures are edging down in pre-market trading with front-month Dow Jones minis +0.67%, S&P 500 minis +0.60%, and Nasdaq 100 minis +0.71% 
  • US officials are preparing a final trade agreement to present to China in the coming weeks with the potential for another summit in March, according to a report in Bloomberg today 
  • MSCI has confirmed it will increase the weight on Chinese stocks in its indexes, with China rising in the MSCI Emerging Markets index to 3.3% from today’s 0.72% 
  • The China Caixin China Manufacturing PMI came in at 49.9, ahead of market forecasts of 48.5 and January’s reading of 48.3.  Greater-than-expected domestic demand was boosted by an increase in infrastructure spending. 
  • According to equities strategist David Bianco at DWS Investment, the current cycle in earnings growth favors US large-cap stocks.  According to his analysis, growth rates for the S&P 500 surpasses that of the Russell 2000 if “unprofitable companies” are excluded.   
  • The SPDR S&P 500 ETF Trust (SPY) saw a net inflow of USD$1.03 billion in yesterday’s trading session, increasing its total assets to USD$2651.8 billion.  Just to keep in mind, the SPDR S&P500 ETF Trust (SPY) saw net outflows of USD$19.1 billion last year. 
  • The VIX is little changed this morning and is currently at 14.4 after closing at 14.78 yesterday
  • General Electric (GE) March 8 & 15 OTM Calls & Puts, Eli Lilly (LLY) Match 15 OTM Calls & Puts, and HYG March 15 Puts are some of the most heavily traded options in the US pre-market this morning. 
  • US 10-Year Treasury Bonds are lower with yields up 1.45 basis points to 2.7295%
  • The US Treasury 2s-10s Spread has widened 0.84 basis points to 0.21%
  • WTI Crude is currently up 0.47% to USD$57.22/bbl with the Brent-WTI spread down USD$-0.52 to USD$8.54/bbl
  • Gold is currently down -0.35% to USD$1308.76/oz
  • According to Bloomberg, the risk-on sentiment for copper prices could hit an obstacle in the form of future China PMI data.  At the moment, it appears that China PMI has limited downside given that it is hovering near the bottom of its post-financial crisis range, but this is definitely a data point to track for those investors trading the industrial metal. 

Stocks Trending in the News

 

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

Global Consumer Stocks Trending in the News

  • Amazon (AMZN) has launched Project Zero, its effort to limit counterfeit sellers on its platform.  Project Zero lets brand owner delete product it deems are fakes.  This marks a shift in the way Amazon functioned in the past and it cedes responsibility for fighting counterfeiters to a third party, the brand owners.  Amazon is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Foot Locker (FL) shares surged after the company delivered CY4Q2018 earnings that beat the highest analyst estimate. Foot Locker reported CY4Q2018 adjusted EPS of USD$1.56, beating the highest analyst estimates that ranged between USD$1.32 and USD$1.49. Foot Locker also reported robust comparable sales growth of 9.7% in CY4Q2018, more than double consensus of 4.6% Foot Locker is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Gap (GPS) announced it will split into 2 companies, with Old Navy being spun off as a standalone company.  Gap reported fourth quarter 2019 adjusted EPS of USD$0.72 matching consensus of USD$0.72.  Gap reported fourth quarter 2019 adjusted revenue of USD$4.62 billion missing consensus of USD$4.7 billion.  Gap gave fiscal 2019 EPS guidance of USD$2.11-2.26 with flat to slightly up sales.  Gap is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Nordstrom (JWN) reported fourth quarter EPS of USD$1.48 beating consensus of USD$1.42.  Nordstrom reported fourth quarter revenue of USD$4.48 billion trailing consensus of USD$4.6 billion.  Nordstrom saw 0.1% same store sales growth, well below the 1.2% consensus.  Nordstrom gave 2019 sales growth guidance of 1-2%, with EPS guidance of USD$3.65-3.90, above consensus of USD$3.67.  Nordstrom is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Moncler (BIT: MONC) shares jumped by double-digits after the Italian jacket maker reported FY2018 that broadly beat analyst expectations. Jefferies analyst Flavio Cereda wrote in a note to clients that Moncler is establishing itself as a, “go-to brand,” for the millennial demographic. Jefferies raised its price target for Moncler from 37 euros/share to 39 euros/share while maintaining its buy recommendation for the stock. Moncler is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Tesla (TSLA) CEO Elon Musk said the company probably won’t post a profit in the first quarter.  Musk said Tesla will have a number of one-time charges that will see it not post a profit.  He said Tesla is cutting costs by closing some stores and cutting its workforce, and it will focus on selling cars online going forward.  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.

Global Information Technology & Communication Services Stocks Trending in the News

  • Autodesk (ADSK) reported fourth quarter adjusted EPS of USD$0.46 beating consensus of USD$0.42.  Autodesk reported fourth quarter adjusted revenue of USD$737.3 million beating consensus of USD$706.5 million.  Autodesk gave first quarter EPS guidance of 44-48 cents per share.  Autodesk is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Dell (DELL) reported fourth quarter 2019 adjusted EPS of USD$0.52 matching consensus of USD$0.52.  Dell reported fourth quarter 2019 adjusted revenue of USD$14.7 billion missing consensus of USD$14.9 billion.  Dell gave second quarter EPS guidance of 50-53 cents per share.  Dell is rated “Top Short” in our US Large-Cap Global Top Stock Ideas
  • WPP Plc (LSE: WPP) shares soared after the company dodged another results shock and reported stronger than expected earnings following a year plagued by client losses. Low expectations for WPP Plc were driven by weak results at rival Publicis Groupe SA (ENXTPA: PUB), who blamed ad spending cuts by consumer goods manufacturers in North America for its downturn. WPP Plc is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas. Publicis Groupe SA is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 

Global Industrials Stocks Trending in the News

  • Rheinmetall (DB: RHM) shares popped after the company delivered better than expected CY4Q2018 financial results for both its defensive and automotive division. Bankhaus Lampe analyst Gordon Schoenell wrote in a note to clients that Rheinmetall’s CY4Q2018 financial indicate, “surprisingly strong margins,”. Rheinmetall’s adjusted Ebit in CY4Q2018 blew past consensus by ~20%. Rheinmetall is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • Jupiter Fund Management Plc (LSE: JUP) shares surged the most intraday in more than 5 years after it announced a higher than expected dividend following a, “tough year,” for asset managers. Jupiter Fund Management trimmed its FY2018 dividend to 28.5 pence/share, a 13% cut from the prior year. Jupiter Fund Management is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • London Stock Exchange Group Plc (LSE: LSE) CEO David Schwimmer announced plans to cut roughly 5% of its workforce to spur growth. London Stock Exchange Group Plc also told investors that it is well positioned to weather any fallout from the potential UK exit from the European Union. London Stock Exchange Group Plc is rated “Attractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Mitsubishi UFJ Financial Group Inc. (TSE: 8306) announced that it’s agreed to acquire DZ Bank’s (UNQ: 834310) aviation finance division, one of the largest acquisitions in the company's history. As part of the acquisition, Mitsubishi UFJ Financial Group will receive a loan portfolio worth 5.6bn euros (USD$6.4bn) and the unit’s employees. Mitsubishi UFJ Financial Group is rated “Attractive” in our Japan Large-Cap Global Top Stock Ideas. DZ Bank is not rated in our Global Top Stock Ideas. 

Global Commodities & Power Stocks Trending in the News

  • Linde (XTRA:LIN) unit Praxair will build a hydrogen plant in Louisiana.  Praxair will supply a major refinery will hydrogen under a long-term contract.  Praxair will build, own and operate the steam methane reformer, which will supply 170 million standard cubic feet of high-purity hydrogen each day.  Linde is not rated in our Global Top Stock Ideas.

 

 

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European Stocks

  • European markets are advancing following the overnight rally in Chinese stocks  
  • The Euro Stoxx 600 is currently up +0.56%, the FTSE 100 is higher by +0.61%, the DAX has advanced +1.15%, and the CAC 40 has risen +0.67%
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 4.22x
  • Utilities (+0.01%), Banks (+0.18%), and Basic Resources (+0.73%) stocks are the top performers in the Euro Stoxx 600 today
  • Retail (+1.16%), Health Care (+0.26%), and Construction & Materials (+0.73%) stocks are the worst performers in the Euro Stoxx 600 today
  • 108 stocks in the Euro Stoxx 600 are at 4-week highs while 53 stocks are at 4-week lows
  • 66 stocks in the Euro Stoxx 600 are overbought while 9 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 13.3 after closing at 13.59 yesterday
  • EUR€ is currently little changed against the USD$ at 1.1384
  • GBP£ is currently down -0.173% against the USD$ to 1.324
  • CHF is currently little changed against the USD$ at 1.0018
  • German 10-Year Bunds are lower with yields up 0.7 basis points to 0.19%
  • UK 10-Year GILTs are lower with yields up 0.1 basis points to 1.303%

Asian Stocks

  • The Nikkei 225 finished up +1.02%, the Hang Seng ended up +0.63%, the Hang Seng China Enterprise up +1.23%, and the CSI 300 was +2.19%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 1.78x
  • 25 stocks in the Nikkei 225 hit 4-week highs while 8 stocks reached 4-week lows
  • 5 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 2.57x
  • 6 stocks in the Hang Seng hit 4-week highs while 0 stocks reached 4-week lows
  • 6 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 -0.145%
  • Japan 10-Year Government Bonds are lower with yields up 1.5 basis points to -0.007%
  • JGBs 2s-10s Spread has widened 0.8 basis points to 0.14%
  • China RMB 2-Year Government Bonds are lower with yields up 1.3 basis points to 2.613%
  • China RMB 10-Year Government Bonds are lower with yields up 2.6 basis points to 3.204%
  • China Government RMB 2s-10s Spread has widened 1.3 basis points to 0.59%
  • JPY¥ is currently up +0.395% against the USD$ to 111.83

 

*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 159 1.71 6 6 15.95% 15.44%
Apple Inc 106 2.86 -30 -38 -1.42% -11.45%
Facebook Inc 89 4.71 11 11 5.1% 5.98%
Berkshire Hathaway Inc 69 3.43 -1 -2 -0.57% -99.93%
Netflix Inc 63 1.57 4 -3 0.25% 19.97%

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
Facebook Inc 89 4.71 11 11 5.1% 5.98%
Walt Disney Co/The 33 4.43 -1 -4 -0.42% -1.54%
Simon Property Group Inc 3 4.29 -4 -5 -0.57% -0.76%
Emerson Electric Co 6 4.29 11 10 1.87% 1.11%
Mastercard Inc 13 4.29 4 3 5.65% 5.2%

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 11.76 43.65% 12.5 39.09% 1.06 41.07% 2.52 83.33% -8.57 6.35%
QQQ 15.58 36.11% 16.16 29.76% 1.04 56.35% 2.41 77.78% -10.67 10.71%
IWM 14.77 50.99% 15.01 46.03% 1.02 46.83% 4.75 92.46% -7.52 7.54%
FEZ 13.15 24.6% 14.59 39.68% 1.11 82.34% 1.54 64.88% -2.29 23.61%
EEM 16.85 23.41% 16.86 11.51% 1 38.69% 2.47 82.14% -1.1 53.77%

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
MASIMO CORP MASI Health Care Health Care Equipment & Supplies 2.41% 1.74% 42.08%
URBAN OUTFITTERS INC URBN Consumer Discretionary Specialty Retail 2.2% 2.23% -14.96%
BOEING CO BA Industrials Aerospace & Defense 2.01% 3.24% 40.79%
THERMO FISHER SCIENTIFIC INC TMO Health Care Life Sciences Tools & Services 2.01% 2.71% 29.78%
COSTAR GROUP INC CSGP Industrials Professional Services 11.12% 10.36% 42.58%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
CIGNA CORP CI Health Care Health Care Providers & Services -4.03% -7.15% -11.41%
VEEVA SYSTEMS INC VEEV Health Care Health Care Technology -2.95% -1.5% 74.71%
O'REILLY AUTOMOTIVE INC ORLY Consumer Discretionary Specialty Retail -2.7% -4.16% 38.95%
AUTOZONE INC AZO Consumer Discretionary Specialty Retail -2.5% -1.0% 21.36%
HOME DEPOT INC HD Consumer Discretionary Specialty Retail -2.49% -4.36% -0.14%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
EXTRACTION OIL & GAS INC XOG Energy Oil, Gas & Consumable Fuels -8.26% 6.68% -125.21%
CARRIZO OIL & GAS INC CRZO Energy Oil, Gas & Consumable Fuels -5.59% -10.89% -71.16%
ANTERO RESOURCES CORP AR Energy Oil, Gas & Consumable Fuels -5.2% -9.03% -78.86%
DYCOM INDUSTRIES INC DY Industrials Construction & Engineering -35.83% -38.49% -94.6%
WHITING PETROLEUM CORP WLL Energy Oil, Gas & Consumable Fuels -11.76% -17.76% -9.02%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
PIVOTAL SOFTWARE INC PVTL Information Technology Software 6.42% 15.97% 40.78%
MATADOR RESOURCES CO MTDR Energy Oil, Gas & Consumable Fuels 5.86% 0.26% -50.89%
BLUEBIRD BIO INC BLUE Health Care Biotechnology 5.18% 18.61% -12.37%
SAGE THERAPEUTICS INC SAGE Health Care Biotechnology 3.93% 7.32% -4.78%
IONIS PHARMACEUTICALS INC IONS Health Care Biotechnology 14.08% 19.5% 36.49%

Source: S&P Capital IQ, StockDio

Cryptos

  • Cryptocurrencies traded broadly mixed overnight as the price of Bitcoin (BTC) is down 0.13% in the last 24 hours to USD$3,866.73. Binance Coin (BNB) is continuing to rally, posting gains for the third straight day as the coin is up 4.86% in the last 24 hours to USD$10.94. IOTA (MIOTA) is also posting notable gains, up 3.60% over the last 24 hours to USD$0.297692. Ethereum (ETH) is the worst performer among major coins this morning, falling 1.02% in the last 24 hours to USD$136.75 ahead of its Constantinople hard fork.  
  • Miguel Vias, Head of Markets at blockchain payment network Ripple, claimed on Twitter that Coinbase’s decision to list Ripple (XRP) on its trading platform was the exchange’s independent decision. The claims by Vias follow accusations by Alistair Milne, a UK-based entrepreneur and investor, that Ripple offered Coinbase incentive to list XRP on their exchange. Vias wrote on Twitter, “We’re happy to go on the record. Coinbase’s listing of XRP (also, not “our token”) was Coinbase’s independent decision – we did not give them anything to make it happen.”  
  •  A bill proposed by lawmakers in California seeks to enable cannabis-related businesses in the state to pay fees and taxes in stablecoins. Introduced by the California State Assembly on February 21st, Assembly Bill 953, “would authorize that city or country in determining that method to either accept stablecoins directly into a digital wallet controlled by that jurisdiction or to utilize a third-party digital asset payment processor that allows for the immediate conversion of any payments made by stablecoins into United States dollars and deposit into an account of that jurisdiction.”  
  • PricewaterhouseCoopers (PwC), a Big Four auditing and consulting firm, announced the trail of its blockchain-powered platform geared towards verifying the integrity of employee credentials. According to a press release published Thursday, PwC’s Smart Credentials platform leverages blockchain technology to issue, store, and securely share digital certificates that verify employee’s credentials.  

Cryptocurrencies Today

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

 

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