morning-quant-ride

Morning Brief

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

Soy Ploy: China halts US soy bean purchases as tensions rise; hopes for strong US data today sending futures higher

May 30, 2019

Great Trades. Great Data. Always FreeGreat Trades. Great Data. Always Free
Great Trades. Great Data. Always FreeGreat Trades. Great Data. Always Free

 

 

 

Market data as of 7am EST

 

US Stocks Preview Ahead of the Open

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

  • Canada Goose (TSX:GOOS) shares plunged 31% on Wednesday after reporting its first miss as a public company.  Canada Goose reported revenue of $156.2 million, missing consensus of $158.9 million.  Canada Goose has been growing at 40% but  has slowed to ~20%, still impressive but giving some investors reason to bail out.  Canada Goose is rated “Neutral” in our Canada All-Cap Global Top Stock Ideas.
  • Dollar General (DG) reported first quarter net sales and earnings that beat consensus.  Dollar General reported first quarter EPS of $1.48 beating consensus of $1.39.  Net sales of $6.62 billion beat consensus of $6.57 billion.  Dollar General posted same store sales growth of 3.8% beating 2.8% expected.  Dollar General reaffirmed full year EPS guidance of $6.30 to $6.50.  Dollar General is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Dollar Tree (DLTR) reported first quarter EPD that matched consensus and provided guidance that trailed.  Dollar Tree reported first quarter adjusted EPS of $1.14, matching consensus.  Dollar Tree cut full year EPS guidance to $4.77 to $5.07 from $4.85 from $5.25.  Dollar Tree sees second quarter EPS coming at 64 to 73 cents.  Dollar Tree is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Tesla (TSLA) was called a “niche carmaker” by Barclays, relegating the company to that minor status in another piece of bad news for the company.  Tesla has lost a fifth of its value over the last month.  Barclays cut its price target to $150 from $192, saying demand for the Model 3 has stagnated.  The robotaxi idea also failed to spark excitement, the report adds.  Tesla is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  

Global Information Technology Stocks Trending in the News

  • Apple (AAPL) has a near-term floor of $160, according to a report from Morgan Stanley.  The report highlights Apple losing 7% since the US limited Huawei from US technology.  Apple’s biggest near-term risk is the Chinese consumer, the report adds.  Morgan says Apple could see a 23% hit to 2020 earnings in a worst case scenario.  Apple is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Cypress Semiconductor (CY) said it considering strategic options, including a sale of itself, after receiving takeover interest, Bloomberg reports.  Cypress soared on the news.  Cypress manufactures and designs flash memory chips and is trying to expand into automobiles where it sees 8-10% growth in revenue.  It is also expanding into the Internet-of-things chips.  Cypress Semiconductor is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas     
  • Momo (MOMO) was upgraded to buy from hold at Haitong International.  Momo saw its price target lowered to $33.70 from $38.30.  Haitong does not see any negative regulatory actions affecting Momo and expects growth to remain robust.  Momo is rated “Attractive” in our China All-Cap Global Top Stock Ideas.
  • NXP Semiconductors (NXP) has agreed to buy the Wi-Fi connectivity unit of Marvell Technology Group (NRVL).  NXP is paying $1.76 billion for the Marvell unit in an all-cash deal.  NXP is the largest supplier of chips to automobiles and the acquisition will expand its offerings to auto manufacturers.  After the sale, Marvell expects to see an improvement in margins.  Neither NXP Semiconductor nor Marvell is rated in our Global Top Stock Ideas
  • Palo Alto Networks (PANW) reported fiscal third quarter earnings that beat consensus but guidance that trailed.  Palo Alto Networks posted fiscal third quarter EPS of $1.31 beating consensus of $1.25.  Revenue grew 28% to $726.6 million.  Palo Alto Networks provided EPS guidance for fiscal fourth quarter of $1.41 to $1.42, trailing consensus of $1.44m sending the stock lower.  Palo Alto Networks is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas     
  • Tech Data Corp (TECD) reported first quarter adjusted EPS that beat expectations.  Tech Data reported first quarter adjusted EPS of $2.04 beating consensus of $1.96.  Revenue of $8.41 billion came in line with $8.45 billion consensus.  Tech Data sees second quarter adjusted EPS of $2.15 to $2.45.  Tech Data Corp is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  

Global Financial Stocks Trending in the News

  • Citigroup (C) said it is seeing lower trading revenue this quarter amid the market uncertainties.  Citigroup CEO Michael Corbat said, “In periods of uncertainty, things tend to become pretty muted.”  Corbat said the trade war, Brexit and Middle East tension are all reasons they are seeing less trading from clients.  Citigroup is rated “Neutral” in our US Large-Cap Global Top Stock Ideas

Global Power & Commodities Stocks Trending in the News

  • International Paper (IP) said it is exiting its Indian-based paper business.  International Paper will sell its controlling stake to West Coast Paper Mills of India for 275 rupeees per share.   International Paper said this is a strategic decision as it focuses on its packaging and cellulose businesses.  International Paper is rated “Neutral” in our US Large-Cap Global Top Stock Ideas

 

 

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions

International Stock Markets Recaps

  • The Euro Stoxx 600 is currently up +0.43%, the FTSE 100 is higher by +0.5%, the DAX has risen +0.5%, and the CAC 40 is up +0.44%
  • Telecommunications (+0.62%), Utilities (-0.16%), and Real Estate (-0.27%) stocks are the top performers in the Euro Stoxx 600 today
  • Basic Resources (+0.54%), Technology (+0.4%), and Oil & Gas (+0.57%) stocks are the worst performers in the Euro Stoxx 600 today
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 1.43x
  • 11 stocks in the Euro Stoxx 600 are at 4-week highs while 223 stocks are at 4-week lows
  • 5 stocks in the Euro Stoxx 600 are overbought while 62 stocks are oversold according to the 16-day RSI Measure
  • The Nikkei 225 finished down --0.29%, the Hang Seng ended down -0.44%, the Hang Seng China Enterprise up +0.57%, and the CSI 300 was -0.62%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 1.62x
  • 4 stocks in the Nikkei 225 hit 4-week highs while 53 stocks reached 4-week lows
  • 4 stocks in the Nikkei 225 closed overbought while 46 stocks closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished negative with the advance/decline ratio for the Hang Seng closing at 0.47x
  • 0 stocks in the Hang Seng hit 4-week highs while 13 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 11 stocks closed oversold according to the 16-day RSI Measure

 

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

 

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