Morning Quant Ride
May 11, 2018
Your Key Morning Highlights
- US equity index futures are edging up this morning with Dow Jones minis flat while S&P500 minis +0.8% and Nasdaq 100 minis +0.13%
- Yesterday’s CPI print for April is calming investor anxiety of an overly Hawkish US Fed. Investors are awaiting the U of Mich Sentiment preliminary result for May at 10am today.
- VIX is down to 13.17 ahead of NY Open after closing at 13.36 yesterday
- European stocks are flat ahead of the NY Open after 6 straight (trading) days of gains on limited news flow
- German DAX index is biggest laggard among European indices, down 0.30%
- Sentiment towards the potential for growth in European stocks earnings in 2H2018 is picking up amid a softening EUR€ and CHF
- Asian stocks closed up with the Nikkei 225 1.16%, Hang Seng +1.02% and Hang Seng China Enterprise +0.91%
- Down Under, Aussie stocks were relatively unchanged with the ASX 200 -0.04%
- US Treasury curve is relatively unchanged this morning with the yield on the US 10-year below 3.0% at 2.957%
- Yields on Italian sovereigns are shifting downwards this morning with the yield on the 10-year Italian bond down 5.7 basis points to 1.869%
- USD$ is weaker this AM with both the Majors and EM FX rallying against the Greenback. Notable movers include: EUR€ +0.41%, AUD$ +0.33% and BRL +1.21%.
- Major cryptocurrencies have been trading lower over the past 24-hours as there have been rumors that a MtGox custodian is selling again and Nvidia said on it expects its cryptocurrency-related revenue to fall 65% in the next quarter. Bitcoin is trading at USD$8,739.00 from USD$9,900 just last week
- Crypto Facillities announced it will have tradeable futures contracts for Ethereum (ETH) beginning today in the UK at 11AM EST
- Ripple (XRP) reported the cross-border payment platform xRapid took just a few seconds to successfully execute a cross-border transaction
S&P 500 Sector Performance
Conviction Buy Laggards From Yesterday We Are Watching Today
Click name for Q-Factor rating and financial data.
Axcelis Technologies, Inc. - 38.33% off its 52wkH on 11/24/2017, reports earnings on 08/02/2018
CVS Health Corporation - 25.67% off its 52wkH on 09/19/2017, reports earnings on 08/09/2018
Hewlett Packard Enterprise Company - 9.37% off its 52wkH on 03/06/2018, reports earnings on 05/22/2018
Kohl's Corporation - 12.88% off its 52wkH on 02/27/2018, reports earnings on 05/22/2018
Macy's, Inc. - 9.34% off its 52wkH on 04/27/2018, reports earnings on 05/16/2018
The Allstate Corporation - 8.79% off its 52wkH on 12/29/2017, reports earnings on 08/02/2018
The TJX Companies, Inc. - 4.55% off its 52wkH on 04/30/2018, reports earnings on 05/22/2018
Stocks Trending in the News
Click name for Q-Factor rating and financial data.
Amazon (AMZN) will reportedly stop buying Google shopping advertisements as competition continues to increase between the two firms.
Baidu’s (BIDU) ADR’s have been upgraded to market perform by Bernstein.
Banca Monte dei Pasche’s (BIT:BMPS), the troubled Italian bank, released 1Q2018 net interest income which came in higher than expected (€ 421.5 million vs €416.3 million projected), relying on cost cuts and lower bad-debt provisions to post an unexpected first quarter profit.
Burberry Group Plc (LSE:BRBY) is accusing Target (TGT) of imitating its trademark plaid pattern and is demanding $2 million in reparations for each infringement.
Cisco (CSCO) has stopped advertising on the YouTube platform over concerns about its ads being connected with sensitive content. Cisco’s ads were reportedly running on extremist YouTube channels, according to a CNN report in April.
JPMorgan (JPM) has named Chris Berthe as its head of global cash execution and Dennis Fitzgerald as the head of global cash risk as JPMorgan seeks to overhaul its stock trading business unit.
NFON (DB:NFN) is currently trading at €13.27 in its first day of treading on the Frankfurt Stock Exchange after its IPO at €12/share.
Panasonic (TSE:6752) is reportedly having hesitations about engaging in new investments with Tesla (TSLA). The companies had planned to establish a factory in China which would produce both autos and lithium ion battery cells.
Unione di Banche Italiane (BIT:UBI) reported 1Q2018 net income (€117.7 million) and revenue (€902.3) that both beat estimate. Expectations were for net income of €88.0 million and revenue of €901.9 million.
Major companies reporting earnings through next Monday:
Agilent Technology (A)
Stock Movers
Conviction Buy Winners and Losers
On Mobile/Tablet scroll to the right.
| Winners |
Ticker |
Sector |
Industry |
1 Day Return |
5 Day Return |
YTD |
| ICU Medical, Inc. |
ICUI |
Healthcare |
Healthcare Supplies |
3.89% |
1.55% |
21.71% |
| Express Scripts Holding Company |
ESRX |
Healthcare |
Healthcare Services |
3.40% |
1.05% |
-4.93% |
| Micron Technology, Inc. |
MU |
Information Technology |
Semiconductors |
3.23% |
10.68% |
28.06% |
| Motorola Solutions, Inc. |
MSI |
Information Technology |
Communications Equipment |
2.81% |
0.67% |
20.38% |
| Lam Research Corporation |
LRCX |
Information Technology |
Semiconductor Equipment |
2.15% |
4.37% |
10.83% |
| Losers |
Ticker |
Sector |
Industry |
1 Day Return |
5 Day Return |
YTD |
| Sysco Corporation |
SYY |
Consumer Staples |
Food Distributors |
-1.20% |
0.72% |
0.32% |
| Dollar Tree, Inc. |
DLTR |
Consumer Discretionary |
General Merchandise Stores |
-0.99% |
-1.06% |
-3.41% |
| CME Group Inc. |
CME |
Financials |
Financial Exchanges and Data |
-0.94% |
0.50% |
1.45% |
| Marriott Vacations Worldwide Corporation |
VAC |
Consumer Discretionary |
Hotels, Resorts and Cruise Lines |
-0.77% |
0.77% |
-3.14% |
| Intercontinental Exchange, Inc. |
ICE |
Financials |
Financial Exchanges and Data |
-0.68% |
1.61% |
-1.49% |
Source: S&P Capital IQ
Conviction Short Winners and Losers
On Mobile/Tablet scroll to the right.
| Winners |
Ticker |
Sector |
Industry |
1 Day Return |
5 Day Return |
YTD |
| Pandora Media, Inc. |
P |
Information Technology |
Internet Software and Services |
-4.53% |
3.92% |
27.63% |
| Coty Inc. |
COTY |
Consumer Staples |
Personal Products |
-3.40% |
-9.77% |
-16.43% |
| The Medicines Company |
MDCO |
Healthcare |
Pharmaceuticals |
-3.34% |
-2.01% |
-2.99% |
| Smartsheet Inc. |
SMAR |
Information Technology |
Application Software |
-2.81% |
9.90% |
7.51% |
| Esperion Therapeutics, Inc. |
ESPR |
Healthcare |
Biotechnology |
-2.73% |
-2.26% |
-42.01% |
| Losers |
Ticker |
Sector |
Industry |
1 Day Return |
5 Day Return |
YTD |
| Ubiquiti Networks, Inc. |
UBNT |
Information Technology |
Communications Equipment |
11.03% |
12.55% |
14.67% |
| Array BioPharma Inc. |
ARRY |
Healthcare |
Biotechnology |
5.48% |
5.71% |
12.81% |
| Scientific Games Corporation |
SGMS |
Consumer Discretionary |
Casinos and Gaming |
5.44% |
5.23% |
3.90% |
| Box, Inc. |
BOX |
Information Technology |
Internet Software and Services |
5.12% |
17.56% |
35.04% |
| Centennial Resource Development, Inc. |
CDEV |
Energy |
Oil and Gas Exploration and Production |
4.87% |
10.61% |
3.23% |
Source: S&P Capital IQ
Event Calendar
On Mobile/Tablet scroll to the right.
| Company Name |
Ticker |
Event Date |
Event Type |
Q-Factor Score |
| China Lodging Group, Limited |
HTHT |
5/14/2018 |
Earnings Release Date |
China All-Cap: A |
| Agilent Technologies, Inc. |
A |
5/14/2018 |
Earnings Release Date |
US Large-Cap: C |
| Invitation Homes Inc. |
INVH |
5/14/2018 |
Earnings Release Date |
US Large-Cap: D |
| Hollysys Automation Technologies Ltd. |
HOLI |
5/14/2018 |
Earnings Release Date |
China All-Cap: C |
| SIG plc |
SHI |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: A |
| Future Land Development Holdings Limited |
SEHK:1030 |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: A |
| China Lilang Limited |
SEHK:1234 |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: A |
| Man Wah Holdings Limited |
SEHK:1999 |
5/14/2018 |
Earnings Release Date |
China All-Cap: D |
| Huarong Investment Stock Corporation Limited |
SEHK:2277 |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: D |
| Champion Real Estate Investment Trust |
SEHK:2778 |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: C |
| CAR Inc. |
SEHK:699 |
5/14/2018 |
Earnings Release Date |
China All-Cap: C |
| ChinaNet Online Holdings, Inc. |
CNET |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: D |
| Recon Technology, Ltd. |
RCON |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: F |
| Vipshop Holdings Limited |
VIPS |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: B |
| 500.com Limited |
WBAI |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: C |
| YY Inc. |
YY |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: A |
| Zai Lab Limited |
ZLAB |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: F |
| Xunlei Limited |
XNET |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: C |
| PPDAI Group Inc. |
PPDF |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: C |
| GreenTree Hospitality Group Ltd. |
GHG |
5/14/2018 |
Earnings Release Date |
China All-Cap: F |
| Xinyi Solar Holdings Limited |
SEHK:968 |
5/14/2018 |
Estimated Earnings Release Date |
China All-Cap: B |
| Phoenix New Media Limited |
FENG |
5/14/2018 |
Earnings Release Date |
China All-Cap: C |
| SORL Auto Parts, Inc. |
SORL |
5/14/2018 |
Earnings Release Date |
China All-Cap: C |