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Morning Brief

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

Morning Quant Ride

Jun 06, 2018

US Stocks                                                                                                                                                                  Start your free trial today

  • Global stocks continue their rebound on expectations for a trade deal between the US and China
  • US equity index futures are advancing this morning with the Dow Jones minis +0.45%, S&P500 minis +0.21% and Nasdaq 100 minis +0.15%
  • Facebook (FB) is down 0.82% in pre-market trading after disclosing data-sharing partnerships with Chinese device makers like Huawei
  • The VIX is down to 12.03 this AM – it was only 2 weeks ago that the VIX was above 18!
  • Mylan (MYL) June 15 OTM Calls and Comcast (CMCS.A) OTM June 19 Calls are the most heavily traded options contracts this morning pre-market
  • The yield on the US 10-year government bond is +2.7 basis points to 2.955%
  • The USD$ Index is declining this morning on the back of a strengthening EUR€ +0.46% and GBP£ +0.19% following hawkish comments by European Central Bank (ECB) Chief Economist Peter Praet

International Stocks

  • European stocks are little changed this AM with the Euro Stoxx 600 +0.10% as speculation about whether the US and China can avoid a trade war is driving investor sentiment
  • Major regional European indices are positive with the FTSE 100 +0.57%, CAC 40 +0.07% and DAX +0.53%
  • Volume for European bank stocks is strong with total volume for the group 119% above their 30-day average
  • German and French sovereign bonds are selling off following comments by European Central Bank (ECB) Chief Economist Peter Praet that inflation is converging to the ECB’s medium-term target of 2%
  • French 10-year government bond yields are +9.6 basis points to 0.784% and German 10-year Bund yields are +8.7 basis points to 0.450%
  • ECB Chief Economist Peter Praet suggests the ECB will announce a target end date for its QE program at ECB June meeting
  • Asia stocks finished their training sessions positive with the Nikkei 225 +0.38%, Hang Seng +0.53%, Hang Seng China Enterprise +0.20%
  • Sentiment among Asia tech stocks was positive on rumors that the US is preparing to allow Chinese telecom equipment maker ZTE Corp. (SZSE:000063) back into the US market
  • Aussie stocks finished positive as mining stocks drove the ASX 200 +0.50% in sympathy with a rally in base metals on global supply constraints

Cryptos

  • Cryptocurrency firm Circle is in talks with the US regulators to become a licensed bank. The venture is partly backed by Goldman Sachs Inc. The firm is seeking a federal banking license to provide more services to its customers. Additionally, Circle stated that it intends to pursue registration as a brokerage and trading venue with the Securities and Exchange commission
  • Tron (TRX) has just made a deal with Shift Markets. The cryptocurrency is now available on nine brokerages in nine different countries. This new deal is providing TRX access to the global foreign exchange markets. Tron (TRX) additionally has also listed with Max/Maicoin, which is the largest trading platform in Taiwan, and Indodax, Indonesia’s dominant exchange
  • United States universities have been making small investments into digital assets. John Lore, a lawyer specializing in cryptocurrency hedge funds, has stated that some universities on the East Coast have been investing in cryptocurrencies on a modest basis. The firm that Lore works for has already advised 30 digital cryptocurrency hedge funds. Lore also noted that most of the capital that is funding cryptocurrency hedge funds comes from high net worth individuals and some family offices

*Data in Price Return

S&P 500 Sector Performance

*Data in Total Return as of Previous Day's EOD

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

Cable One, Inc. - 17.33% off its 52wkH on 08/08/2017, reports earnings on 08/03/2018

Colgate-Palmolive Company - 20.05% off its 52wkH on 01/19/2018, reports earnings on 07/27/2018

Kansas City Southern - 7.97% off its 52wkH on 04/23/2018, reports earnings on 07/19/2018

Kellogg Company - 14.82% off its 52wkH on 06/14/2017, reports earnings on 08/02/2018

McDonald's Corporation - 10.76% off its 52wkH on 01/29/2018, reports earnings on 07/23/2018

Mondelez International, Inc. - 16.81% off its 52wkH on 06/06/2017, reports earnings on 07/27/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Advanced Micro Devices (AMD) shares are up 1.68% to $15.10 pre-market after the company announced the release of 32-Core “Threadripper” Processors. This sharpens competition with competitors such as Intel Corp (INTC).

Devon Energy Corp. (DVN) will be repurchasing $4 billon in shares by the end of 2019, after the sale of its stake in EnLink Midstream Partners LP (ENLK) to Global Infrastructure Partners for $3.13 billion.

Facebook Inc (FB) has announced that several Chinese companies, including Huawei Technologies (currently being probed by US regulators), were given preferred access to user data. Shares of Facebook are down 0.82% to $192.94 before the open.

Northrop Grumman’s (NOC) $7.8 billion acquisition proposal for Orbital ATK (OA) has been approved by the FTC. Northrop Grumman’s stock is up 0.94% to $332.28 following this development.

Sunny Optical (SEHK:2382) and AAC Technologies (SEHK:2018) finished 4.87% and 9.28% higher today, respectively, on positive sentiment from rumors that the US may allow Chinese telecom firm ZTE Corp. (SZSE:000063) back into the US market. This was the biggest 1-day return for AAC Technologies on a YTD basis.

Tesla Inc (TSLA) shareholders voted to have Elon Musk maintain his role at the company, despite recent actions and comments that have been questioned by analysts. Tesla’s stock is up 2.26% pre-market, to a $297 handle.

YY Inc (YY) stock is up 1.04% to $122.26, after the company posted 1Q2018 EPS that was firmly above expectations ($1.72 vs $1.52 projected).

Cryptocurrencies Today

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
Dollar General Corporation DG Consumer Discretionary General Merchandise Stores 3.49% 7.66% 1.26%
Motorola Solutions, Inc. MSI Information Technology Communications Equipment 2.21% 4.66% 24.35%
Dollar Tree, Inc. DLTR Consumer Discretionary General Merchandise Stores 2.14% 0.44% -22.70%
PACCAR Inc PCAR Industrials Construction Machinery and Heavy Trucks 2.11% 3.50% -9.38%
Copart, Inc. CPRT Industrials Diversified Support Services 2.10% 4.49% 32.65%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Berry Global Group, Inc. BERY Materials Metal and Glass Containers -1.97% -2.03% -2.03%
UGI Corporation UGI Utilities Gas Utilities -1.68% -2.50% -2.50%
Lam Research Corporation LRCX Information Technology Semiconductor Equipment -1.22% 1.68% 1.68%
Mondelez International, Inc. MDLZ Consumer Staples Packaged Foods and Meats -1.31% -0.03% -0.03%
Legg Mason, Inc. LM Financials Asset Management and Custody Banks -1.19% -0.16% -0.16%

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
Chesapeake Energy Corporation CHK Energy Oil and Gas Exploration and Production -4.64% -3.36% -3.36%
Heron Therapeutics, Inc. HRTX Healthcare Biotechnology -4.04% 2.75% 2.75%
Pluralsight, Inc. PS Information Technology Application Software -2.65% 7.48% 7.48%
Apergy Corporation NYSE:APY Energy Oil and Gas Equipment and Services -2.49% -7.59% -7.59%
Marathon Oil Corporation MRO Energy Oil and Gas Exploration and Production -2.37% -3.97% -3.97%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Longfin Corp. LFIN Financials Financial Exchanges and Data 13.92% -9.09% -92.01%
Madrigal Pharmaceuticals, Inc. MDGL Healthcare Biotechnology 10.17% 13.34% 227.96%
ImmunoGen, Inc. IMGN Healthcare Biotechnology 7.40% 0.09% 78.94%
Nektar Therapeutics NKTR Healthcare Pharmaceuticals 6.45% -30.29% -6.30%
Roku, Inc. ROKU Consumer Discretionary Consumer Electronics 5.86% 7.47% -22.25%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
Brown-Forman Corporation BF.B 6/6/2018 Earnings Release Date US Large-Cap: D, US Consumer Staples: C
Five Below, Inc. FIVE 6/6/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: A
Thor Industries, Inc. THO 6/6/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Cloudera, Inc. CLDR 6/6/2018 Earnings Release Date US Large-Cap: F, US Information Technology: D
First Pacific Company Limited SEHK:142 6/6/2018 Estimated Earnings Release Date China All-Cap: C
China Shenghai Food Holdings Company Limited SEHK:1676 6/6/2018 Estimated Earnings Release Date China All-Cap: C
China Mengniu Dairy Company Limited SEHK:2319 6/6/2018 Estimated Earnings Release Date China All-Cap: B
China Agri-Industries Holdings Limited SEHK:606 6/6/2018 Estimated Earnings Release Date China All-Cap: D
China High Speed Transmission Equipment Group Co., Ltd. SEHK:658 6/6/2018 Estimated Earnings Release Date China All-Cap: D
China Education Group Holdings Limited SEHK:839 6/6/2018 Estimated Earnings Release Date China All-Cap: D
Summit Ascent Holdings Limited SEHK:102 6/6/2018 Estimated Earnings Release Date China All-Cap: D
Chow Tai Fook Jewellery Group Limited SEHK:1929 6/6/2018 Earnings Release Date China All-Cap: C
DocuSign, Inc. DOCU 6/6/2018 Earnings Release Date US Large-Cap: F
Fantasia Holdings Group Co., Limited SEHK:1777 6/6/2018 Estimated Earnings Release Date China All-Cap: C
Tongda Group Holdings Limited SEHK:698 6/6/2018 Estimated Earnings Release Date China All-Cap: C
Hengan International Group Company Limited SEHK:1044 6/6/2018 Estimated Earnings Release Date China All-Cap: B
Jiayuan International Group Limited SEHK:2768 6/6/2018 Estimated Earnings Release Date China All-Cap: B
Shougang Fushan Resources Group Limited SEHK:639 6/6/2018 Estimated Earnings Release Date China All-Cap: D
Xingda International Holdings Limited SEHK:1899 6/6/2018 Estimated Earnings Release Date China All-Cap: D
Meitu, Inc. SEHK:1357 6/6/2018 Estimated Earnings Release Date China All-Cap: F
Colour Life Services Group Co., Limited SEHK:1778 6/6/2018 Estimated Earnings Release Date China All-Cap: A
Dah Chong Hong Holdings Limited SEHK:1828 6/6/2018 Estimated Earnings Release Date China All-Cap: A
China Resources Pharmaceutical Group Limited SEHK:3320 6/6/2018 Estimated Earnings Release Date China All-Cap: B
The J. M. Smucker Company SJM 6/7/2018 Earnings Release Date US Large-Cap: A, US Consumer Staples: A
Vail Resorts, Inc. MTN 6/7/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: A
The Cooper Companies, Inc. COO 6/7/2018 Earnings Release Date US Large-Cap: C
Brilliance China Automotive Holdings Limited SEHK:1114 6/7/2018 Estimated Earnings Release Date China All-Cap: D
Enterprise Development Holdings Limited SEHK:1808 6/7/2018 Estimated Earnings Release Date China All-Cap: F
AVIC International Holding (HK) Limited SEHK:232 6/7/2018 Estimated Earnings Release Date China All-Cap: F
China Power International Development Limited SEHK:2380 6/7/2018 Estimated Earnings Release Date China All-Cap: C
ENN Energy Holdings Limited SEHK:2688 6/7/2018 Estimated Earnings Release Date China All-Cap: B
IGG Inc SEHK:799 6/7/2018 Estimated Earnings Release Date China All-Cap: B
Sinopec Kantons Holdings Limited SEHK:934 6/7/2018 Estimated Earnings Release Date China All-Cap: D
LVGEM (China) Real Estate Investment Company Limited SEHK:95 6/7/2018 Estimated Earnings Release Date China All-Cap: B
China Taiping Insurance Holdings Company Limited SEHK:966 6/7/2018 Estimated Earnings Release Date China All-Cap: C
The Bank of East Asia, Limited SEHK:23 6/7/2018 Estimated Earnings Release Date China All-Cap: C
Leidos Holdings, Inc. LDOS 6/7/2018 Estimated Earnings Release Date US Large-Cap: B, US Information Technology: A
CMBC Capital Holdings Limited SEHK:1141 6/7/2018 Estimated Earnings Release Date China All-Cap: D
China Merchants Port Holdings Company Limited SEHK:144 6/7/2018 Estimated Earnings Release Date China All-Cap: C
Sunac China Holdings Limited SEHK:1918 6/7/2018 Estimated Earnings Release Date China All-Cap: B