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Morning Brief

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

Morning Quant Ride

Jun 18, 2018

US Stocks

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  • Global stocks are in the red this AM as investors continue to the weigh the potential for a trade war between the US and China
  • US equity index futures are selling off with the Dow Jones minis -0.70%, S&P500 minis -0.59% and Nasdaq 100 minis -0.69%
  • The VIX is currently at 13.25 after closing at  on 11.98 Friday
  • Ford (F) December 2018 OTM Calls, EWZ July 20 OTM Calls & Puts, EFA September 2018 OTM Calls and USO June 29 PTM Puts 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 2.902%
  • Global sovereign bond markets are relatively flat this AM with little movement among major sovereigns
  • The USD$ Index is little changed with weakness in the GBP£ -0.27% and ZAR -0.24% offset by a strengthening JPY¥ +0.18%
  • Global oil prices appear to be diverging with WTI -0.43%, at US$64.82, and Brent +0.84%, at US$74.16,  following disagreement among OPEC members about whether to boost crude oil production in 2H2018
  • Precious metals are relatively flat this morning with Gold +0.05% and Silver -0.06%

International Stocks

  • European stocks are down this morning with worries about escalating trade war between the US and China driving market sentiment
  • Auto and industrials stocks are the largest laggards this AM with the Euro Stoxx 600 -0.99%, FTSE 100 -0.38%, CAC 40 -1.25% and DAX -1.37%
  • Euro Stoxx 600 is now below both its 50-day and 200-day moving averages
  • VSTOXX, the European stocks equivalent of the VIX, is AT 14.3119 after closing at 12.1297 on Friday
  • Japanese stocks finished their trading sessions negative with the Nikkei 225 -0.97% amid concerns about a Sino-US trade war
  • China and Hong Kong stock markets were closed for the Tuen Ng Festival

Cryptos

  • Fundstrat’s co-founder Tom Lee recently has said that bitcoin futures contracts could be influencing the cryptocurrency’s recent decline. Lee noted that there has been significant volatility around the expiration date of CME Group and CBOE futures contracts. Also, he theorizes that the trading could be manipulated due to the low level of liquidity during auctions
  • The EOS mainnet experienced an unexpected bug yesterday which halted its blockchain. After about five hours of work, the EOS blockchain resumed and transactions started again. The EOS mainnet officially launched June 14 and many users that are a part of the EOS community state that the launch was not smooth. Just days before the launch, one developer found bugs within the pre-released code repository
  • Etoro, a trading platform which mainly caters to retail investors, is now expanding to institutional investors with a new cryptocurrency offering. The firm will be setting up an over-the-counter (OTC) desk in London for institutions. The platform will be connected to fifteen cryptocurrency exchanges. Additionally, Etoro has announced it will be launching its own cryptocurrency exchange to serve more institutional clients
  • Quantamize’s AI Machine Learning 3-Day trading signals were updated Sunday 6/17/18 and will be updated on Wednesday 6/20/2018. Quantamize's AI Machine Learning CryptoFolios were updated Sunday 6/17/18 and will be updated on Sunday 6/25/2018

*Data in Price Return, Source: Stockdio

S&P 500 Sector Performance

*Data in Total Return as of the Friday's EOD, Source: Capital IQ

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

Electro Scientific Industries, Inc. - 33.04% off its 52wkH on 11/27/2017, reports earnings on 07/30/2018

Louisiana-Pacific Corporation - 10.93% off its 52wkH on 04/17/2018, reports earnings on 08/01/2018

MCBC Holdings, Inc. - 3.55% off its 52wkH on 05/18/2018, reports earnings on 09/07/2018

Micron Technology, Inc. - 9.94% off its 52wkH on 05/30/2018, reports earnings on 06/20/2018

Westlake Chemical Corporation - 11.50% off its 52wkH on 05/22/2018, reports earnings on 08/01/2018

Stocks Trending in the News

Alphabet Inc’s (GOOGL) subsidiary Google announced that it will be investing $550 million into Chinese internet firm JD.com (JD), expanding Google’s influence in China.

China Biologic Products Holdings (CBPO) ADR is up 16.41% to $95.50 before the open, after reports that the company’s holder, CCRE Holdings, is considering taking the company private. CCRE Holdings has proposed repurchasing all outstanding stock for $110 per share.

Coca-Cola Co. (KO) is reportedly considering a £3 billion acquisition of Horlicks from GlaxoSmithKline (GSK).

GreenkSky (GSKY) has been given a buy rating at Citi, with price target of $28. GreenSky’s stock is up 2.85% to $24.93 pre-market.

French energy firm Nexans SA (NEX.FR) shares are down 16.74% to €30.34 today, after the company provided guidance that indicated profits will fall throughout FY2018, due to fewer high voltage projects.

CEO Rupert Stadler of Volkswagen’s (VOW.GR) Audi subsidiary has been arrested following an investigation by prosecutors into the company’s diesel-emissions fraud scandal. Volkswagen’s stock is down 2.33% to €154.90 today.

Regions Financial (RF) is up 0.43% pre-market to $18.67 after the company was upgraded from a market perform to an outperform rating at RBC Capital Markets.

South32 Limited (S32.AU) has agreed to acquire Arizona Mining Inc (WLDVF) for $1.3 billion. South32 shares closed 1.28% lower today, to AUD$3.85.

Stock Movers

Conviction Buy Winners and Losers
Winners  Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Sirius XM Holdings Inc. SIRI Consumer Discretionary Cable and Satellite 2.71% 4.70% 41.42%
Colgate-Palmolive Company CL Consumer Staples Household Products 2.24% 2.19% -14.21%
Sealed Air Corporation SEE Materials Paper Packaging 2.11% 2.74% -8.72%
The Hershey Company HSY Consumer Staples Packaged Foods and Meats 2.02% 2.43% -17.19%
The J. M. Smucker Company SJM Consumer Staples Packaged Foods and Meats 1.91% 3.13% -14.90%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Westlake Chemical Corporation WLK Materials Commodity Chemicals -2.04% -6.52% -4.95%
Hill-Rom Holdings, Inc. HRC Healthcare Healthcare Equipment -1.77% -3.46% -1.00%
A. O. Smith Corporation AOS Industrials Building Products -1.70% -3.02% -0.30%
WEX Inc. WEX Information Technology Data Processing and Outsourced Services -1.47% 0.07% 6.38%
Micron Technology, Inc. MU Information Technology Semiconductors -1.61% -5.15% 1.11%

Source: S&P Capital IQ

Conviction Short Winners and Losers
Winners Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Global Blood Therapeutics, Inc. GBT Healthcare Biotechnology -14.88% -13.22% -16.82%
Whiting Petroleum Corporation WLL Energy Oil and Gas Exploration and Production -8.88% -12.49% -10.15%
Blueprint Medicines Corporation BPMC Healthcare Biotechnology -7.29% 3.80% -17.45%
California Resources Corporation CRC Energy Oil and Gas Exploration and Production -6.78% -13.15% -4.57%
QEP Resources, Inc. QEP Energy Oil and Gas Exploration and Production -5.45% -3.09% -6.70%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Longfin Corp. LFIN Financials Financial Exchanges and Data 39.13% 70.67% -88.63%
Pivotal Software, Inc. PVTL Information Technology Application Software 8.20% 38.99% 0.00%
EVO Payments, Inc. EVOP Information Technology Data Processing and Outsourced Services 4.45% 12.30% 0.00%
Zscaler, Inc. ZS Information Technology Systems Software 4.09% 1.16% 0.00%
Formula One Group FWON.K Consumer Discretionary Movies and Entertainment 3.59% 8.03% 1.23%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
China Xinhua Education Group Limited SEHK:2779 6/18/2018 Estimated Earnings Release Date China All-Cap: F
NetDragon Websoft Holdings Limited SEHK:777 6/18/2018 Estimated Earnings Release Date China All-Cap: D
Carnival Corporation CCL 6/18/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Secoo Holding Limited SECO 6/18/2018 Earnings Release Date China All-Cap: C
FedEx Corporation FDX 6/19/2018 Earnings Release Date US Large-Cap: B, US Industrials: B
Oracle Corporation ORCL 6/19/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Link Motion Inc. LKM 6/19/2018 Estimated Earnings Release Date China All-Cap: F
Wang On Properties Limited SEHK:1243 6/19/2018 Earnings Release Date China All-Cap: D
Huabao International Holdings Limited SEHK:336 6/19/2018 Earnings Release Date China All-Cap: C
Razer Inc. SEHK:1337 6/19/2018 Estimated Earnings Release Date China All-Cap: F
Micron Technology, Inc. MU 6/19/2018 Earnings Release Date US Large-Cap: A, US Information Technology: A
Wynnstay Group plc WYN 6/19/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Stream Ideas Group Limited SEHK:8401 6/19/2018 Earnings Release Date China All-Cap: F
Winnebago Industries, Inc. WGO 6/20/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: D
The Kroger Co. KR 6/20/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Staples: D
Sa Sa International Holdings Limited SEHK:178 6/20/2018 Earnings Release Date China All-Cap: B
Pacific Textiles Holdings Limited SEHK:1382 6/20/2018 Earnings Release Date China All-Cap: B
iKang Healthcare Group, Inc. KANG 6/21/2018 Earnings Release Date China All-Cap: A
Darden Restaurants, Inc. DRI 6/21/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: A
Patterson Companies, Inc. PDCO 6/21/2018 Earnings Release Date US Large-Cap: C
Commercial Metals Company CMC 6/21/2018 Earnings Release Date US Large-Cap: D
Red Hat, Inc. RHT 6/21/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Café de Coral Holdings Limited SEHK:341 6/21/2018 Earnings Release Date China All-Cap: C
China Gas Holdings Limited SEHK:384 6/21/2018 Earnings Release Date China All-Cap: A
RYB Education, Inc. RYB 6/21/2018 Estimated Earnings Release Date China All-Cap: F
CarMax, Inc. KMX 6/21/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
China Soft Power Technology Holdings Limited SEHK:139 6/21/2018 Estimated Earnings Release Date China All-Cap: F
Nameson Holdings Limited SEHK:1982 6/21/2018 Earnings Release Date China All-Cap: C
Concha plc CHA 6/21/2018 Estimated Earnings Release Date China All-Cap: C
Hailiang Education Group Inc. HLG 6/21/2018 Estimated Earnings Release Date China All-Cap: C
LEAP Holdings Group Limited SEHK:1499 6/21/2018 Earnings Release Date China All-Cap: C
Twintek Investment Holdings Limited SEHK:6182 6/21/2018 Earnings Release Date China All-Cap: D
Sparkle Roll Group Limited SEHK:970 6/21/2018 Earnings Release Date China All-Cap: D

Source: S&P Capital IQ