morning-quant-ride

Morning Brief

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

Morning Quant Ride

Jun 13, 2018

US Stocks                                                                                                                                                                  Start your free trial today

  • The FED is expected to announce a 25-basis point rate hike following the FOMC meeting today. Market focus has shifted to Fed guidance on future interest rate policies, and the potential for future interest rate hikes
  • US equity index futures are higher this morning, with the Dow Jones minis +0.14%, S&P 500 minis +0.20%, and Nasdaq 100 minis +0.33%
  • The VIX is falling this morning, down 28 basis points, or 2.27% to 12.05
  • SPY June 15 OTM Puts, QQQ June 15 OTM Puts, SPY August 15 OTM Calls, and EEM June 15 ATM Calls are the most heavily traded options contracts in the US pre-market this AM
  • The yield on the US 10-year government bond is little changed at 2.951%
  • The USD$ index is slightly lower this morning, with gains in GBP£, JPY¥, and CHF offset by losses in EUR€, CAD$ and SEK

International Stocks

  • European stocks are slightly higher this morning, with the Euro Stoxx 600 +0.32%, FTSE 100 +0.47%, DAX +0.19%, and CAC40 +0.28%.   
  • The ECB will have a policy meeting tomorrow. No change in interest rates is expected, and market sentiment expects continued confirmation that the ECB will continue to reduce its quantitative easing policy through the end of the year
  • The VSTOXX, the European stock equivalent of the VIX, is down 63 basis points, or -4.62%, to 13.06
  • UK 10-Year Gilts are higher today, with yields falling 3.1 basis points to 1.370%
  • Italian 10-Year yields are falling today, down 11.5 basis points to 2.751%
  • The German 10-Year Bund is little changed today, with the yield at 0.485%
  • Asian stocks finished mixed overnight, with the Nikkei 225 +0.38%, Hang Seng -1.22%, and Hang Seng China Enterprise Index -1.40%
  • The BOJ is meeting on June 14-15 and is expected to leave policy rates unchanged

Cryptos

  • Coinbase has announced they will be launching their index fund which is composed of cryptocurrencies on their exchange services platform. The fund will only be open to US accredited investors and will be accepting investments of USD$250,000 to USD$20mm
  • JD Finance, the subsidiary of Chinese e-commerce player JD.com, announced it will be issuing asset-backed securities (ABS) on a blockchain. The Chinese Securities Regulatory Commission has reported that JD Finance has established a trial in partnership with Huatai Securities which will underwrite the issuance and Xingye Bank will act as a trust
  • Thomson Reuters is expanding its cryptocurrency sentiment data toolkit and will be covering 100 cryptocurrencies. . The platform gauges sentiment such as “excitement” or “hope” to provide insights for clients using its natural language processing and machine learning technology

*Data in Price Return; Source: Stockdio

S&P 500 Sector Performance

*Data in Total Return as of Previous Day's EOD, Source: Capital IQ

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

Broadridge Financial Solutions, Inc. - 3.13% off its 52wkH on 06/08/2018, reports earnings on 08/07/2018

Choice Hotels International, Inc. - 4.45% off its 52wkH on 03/15/2018, reports earnings on 08/09/2018

Hewlett Packard Enterprise Company - 18.92% off its 52wkH on 03/06/2018, reports earnings on 09/04/2018

HP Inc. - 4.57% off its 52wkH on 03/09/2018, reports earnings on 08/21/2018

Internap Corporation - 49.46% off its 52wkH on 10/10/2017, reports earnings on 08/02/2018

Legg Mason, Inc. - 23.38% off its 52wkH on 01/25/2018, reports earnings on 07/24/2018

Wabash National Corporation - 23.78% off its 52wkH on 01/31/2018, reports earnings on 07/25/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Hershey Inc (HSY) has been downgraded to underperform, from a neutral ranking at Credit Suisse (SWX:CSGN). Shares of Hershey are down 1.37% to $92.10 prior to today’s trading.

H&R Block (HRB) shares are down 21.32% to $23.29 pre-market, after the company’s 2019 forecast for 2019 came in at $3.1 billion, which is below expectations of $3.14 billion.

Ormat Technologies (ORA) has been downgraded to neutral from a buy recommendation at Guggenheim Securities. Ormat’s stock is down 1.12% to $51.31 before the open.

Oxford Industries (OXM) stock is down 5.59% to $87.34 before the open after the company reported 1Q2018 EPS that was above expectations ($1.28 vs $1.23 anticipated), but provided 2Q2018 guidance that was lower than forecasted ($1.80 projected vs $1.94 consensus).

Target Corp (TGT) has increased its quarterly dividend by 3.2%, to $0.64 per share from $0.62 per share. Target’s stock is up 0.42% to $79.40 pre-market today.

Toshiba Corp (TSE:6502) will be repurchasing up to $6.3 billion in shares, following the sale of its memory chip business two weeks ago. Shares of Toshiba Corp closed 6.96% higher to a ¥338 handle.

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 4.96% 4.80% 41.04%
Dollar Tree, Inc. DLTR Consumer Discretionary General Merchandise Stores 3.14% 5.65% -19.31%
Vail Resorts, Inc. MTN Consumer Discretionary Leisure Facilities 2.76% 3.24% 31.55%
Total System Services, Inc. TSS Information Technology Data Processing and Outsourced Services 2.23% 1.76% 11.82%
MSCI Inc. MSCI Financials Financial Exchanges and Data 1.95% 2.74% 34.14%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Legg Mason, Inc. LM Financials Asset Management and Custody Banks -3.03% -4.06% -3.11%
Micron Technology, Inc. MU Information Technology Semiconductors -1.37% 1.54% 5.14%
The Progressive Corporation PGR Financials Property and Casualty Insurance -1.31% -1.10% -0.27%
Harris Corporation HRS Industrials Aerospace and Defense -1.10% -0.37% 1.14%
Cigna Corporation CI Healthcare Managed Healthcare -1.18% 0.97% 5.58%

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
Rowan Companies plc RDC Energy Oil and Gas Drilling -5.74% -5.22% -1.03%
Zscaler, Inc. ZS Information Technology Systems Software -5.31% 2.85% 45.52%
Apache Corporation APA Energy Oil and Gas Exploration and Production -4.13% 2.42% 6.90%
Targa Resources Corp. TRGP Energy Oil and Gas Storage and Transportation -3.67% -1.89% 0.31%
Pluralsight, Inc. PS Information Technology Application Software -3.18% 4.42% 22.91%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Sage Therapeutics, Inc. SAGE Healthcare Biotechnology 19.62% 17.16% 6.71%
Overstock.com, Inc. OSTK Consumer Discretionary Internet and Direct Marketing Retail 8.09% 11.05% -39.87%
Intercept Pharmaceuticals, Inc. ICPT Healthcare Biotechnology 5.82% 12.31% 37.90%
Longfin Corp. LFIN Financials Financial Exchanges and Data 5.79% 0.50% -92.86%
Roku, Inc. ROKU Consumer Discretionary Consumer Electronics 5.66% 4.78% -19.93%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
Bitauto Holdings Limited BITA 6/13/2018 Earnings Release Date China All-Cap: F
China Shenghai Food Holdings Company Limited SEHK:1676 6/13/2018 Estimated Earnings Release Date China All-Cap: C
China Mengniu Dairy Company Limited SEHK:2319 6/13/2018 Estimated Earnings Release Date China All-Cap: B
China Agri-Industries Holdings Limited SEHK:606 6/13/2018 Estimated Earnings Release Date China All-Cap: D
China High Speed Transmission Equipment Group Co., Ltd. SEHK:658 6/13/2018 Estimated Earnings Release Date China All-Cap: D
China Education Group Holdings Limited SEHK:839 6/13/2018 Estimated Earnings Release Date China All-Cap: D
Summit Ascent Holdings Limited SEHK:102 6/13/2018 Estimated Earnings Release Date China All-Cap: D
iShares Asia Trust - iShares MSCI China Index ETF SEHK:2801 6/13/2018 Estimated Earnings Release Date China All-Cap: B
Adobe Systems Incorporated ADBE 6/13/2018 Estimated Earnings Release Date US Large-Cap: B, US Information Technology: C
Global Brands Group Holding Limited SEHK:787 6/13/2018 Estimated Earnings Release Date China All-Cap: D
Gold-Finance Holdings Limited SEHK:1462 6/13/2018 Earnings Release Date China All-Cap: C
The Michaels Companies, Inc. MIK 6/14/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: D
Jabil Inc. JBL 6/14/2018 Earnings Release Date US Large-Cap: C, US Information Technology: A
Finisar Corporation FNSR 6/14/2018 Earnings Release Date US Large-Cap: F, US Information Technology: D
CMBC Capital Holdings Limited SEHK:1141 6/14/2018 Estimated Earnings Release Date China All-Cap: D
China Merchants Port Holdings Company Limited SEHK:144 6/14/2018 Estimated Earnings Release Date China All-Cap: C
Sunac China Holdings Limited SEHK:1918 6/14/2018 Estimated Earnings Release Date China All-Cap: B
Hopson Development Holdings Limited SEHK:754 6/14/2018 Estimated Earnings Release Date China All-Cap: C
KB Home KBH 6/14/2018 Estimated Earnings Release Date US Large-Cap: D, US Consumer Discretionary: D
Lennar Corporation LEN 6/14/2018 Estimated Earnings Release Date US Large-Cap: D, US Consumer Discretionary: D
The 13 Holdings Limited SEHK:577 6/14/2018 Estimated Earnings Release Date China All-Cap: F
Vitasoy International Holdings Limited SEHK:345 6/14/2018 Earnings Release Date China All-Cap: A
Dali Foods Group Company Limited SEHK:3799 6/15/2018 Estimated Earnings Release Date China All-Cap: C

Source: S&P Capital IQ