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Morning Brief

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

Morning Quant Ride

Jun 20, 2018

US Stocks                                                                                                                                                                                                     Start Your Free Trial Today                                                                                                                                                                                     

  • Global stocks are bouncing back this morning following three consecutive days of negative returns
  • US equity index futures are advancing with the Dow Jones minis +0.38%, S&P500 minis +0.23% and Nasdaq 100 minis + 0.28%
  • Walt Disney (DIS) announces it is boosting its bid for Twenty-First Century Fox (FOXA) to USD$38/share from an initial bid of USD$28/share
  • The VIX is currently at 12.98 after reading a high of 14.68 yesterday in intra-day trading
  • General Electric (GE) July 20 OTM Puts, XLF July 20 OTM Puts, SPY June 20 OTM Puts, and EEM June 20 OTM Puts are the most heavily traded options contracts in the US pre-market this AM
  • The yield on the US 10-year government bond is little changed this morning at 2.904% after trading below 2.900% yesterday
  • Global sovereigns are relatively unchanged this morning with major G7 stock markets rallying
  • The USD$ Index is + 0.06% on the back of declines in EUR€  -0.10%, CAD +.10%, and JPY -0.01%
  • Major cryptocurrencies are down across the board this AM with Bitcoin (BTC) -1.02%, Ethereum (ETH) -1.58% and Ripple (XRP) -2.10% following news that USD$32mm in different cryptocurrencies were stolen from South Korean cryptocurrency exchange Bithumb

Interntational Stocks

  • European stocks are bouncing back this AM with the Euro Stoxx 600 0.67 %, FTSE 100 0.90 %, CAC 40 0.28% and DAX 0.28%
  • All sectors in the Euro Stoxx 600 are positive with basic resource and materials stocks leading the European stock markets higher
  • VSTOXX, the European stocks equivalent of the VIX, is down to 13.7922 after closing at 14.8685
  • Asian stocks finished their trading sessions positive as investor sentiment shifted away from worries about escalating Sino-US trade tensions to a focus on bargain hunting
  • Japanese stocks closed positive with the Nikkei 225 +1.24% and TOPIX +0.51%% -- pharmaceutical and electronics manufacturers stocks lead the Japanese stocks
  • Chinese and Hong Kong stocks rebounded with the Hang Seng +0.77%, Hang Seng China Enterprise +0.11% and CSI 300 +0.40% following comments by PBOC Governor Yi Gang that investors should take a rational approach to stocks and that Beijing policy makers are prepared for outside shocks

Cryptos

  • Cryptocurrencies fell after the South Korean cryptocurrency exchange, Bithumb, was hacked last night. Approximately USD$32mm was stolen and Ripple was one of the cryptocurrencies that was targeted. The exchange proceeded to halt withdrawals and deposits
  • The stock exchange operator, Nasdaq, has successfully tested a blockchain-based Proof-of-Concept that provides an efficient 24/7 securities solution collateral maintenance. The blockchain platform was developed by a partnership including Nasdaq, ABN AMRO Clearing, EuroCCP and Euroclear. The development aims to solve the challenges that Central Counterparties (CCPs) face when it comes to making margin calls
  • Radar Relay, a peer-to-peer decentralized trading platform for Ethereum-based tokens has launched its first version. The system comes with automated trading tools through the development of an API and a software development kit (SDK)

*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.

Broadcom Inc. - 4.00% off its 52wkH on 11/17/2017, reports earnings on 09/06/2018

Electro Scientific Industries, Inc. - 37.19% off its 52wkH on 11/27/2017, reports earnings on 07/30/2018

Lear Corporation - 2.81% off its 52wkH on 06/11/2018, reports earnings on 07/24/2018

MCBC Holdings, Inc. - 4.64% off its 52wkH on 05/18/2018, reports earnings on 09/07/2018

Westlake Chemical Corporation - 15.03% off its 52wkH on 05/22/2018, reports earnings on 08/01/2018

Xcerra Corporation - 4.28% off its 52wkH on 06/12/2018, reports earnings on 08/29/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

  • AT&T Inc (T) is reportedly in negotiations regarding the acquisition of AppNexus, which is an advertising technology firm. Expectations are for AT&T to pay nearly $1.6 billion for AppNexus.
  • FedEx (FDX) has agreed to purchase 24 cargo aircraft from Boeing Co (BA), in a deal worth $6.6 billion. Shares of Boeing are up 1.01% to $344.58 before the open
  • Ford (F) and Volkswagen AG (VOW.GR) have announced that they are exploring a strategic partnership, with the goal of improving their global competitiveness
  • A historic moment in US markets: General Electric (GE), a continuous member of the Dow since 1897 and an industrial giant of the 20th century will be removed from the Dow Jones Industrial Average on June 26th and will be replaced by leading consumer goods company Walgreens Boots Alliance (WBA). Walgreens Boots Alliance shares are up 3.70% to $67.00, while General Electric stock is down 1.93% to $12.70 before the open
  • Oracle Corp (ORCL) is 3.50% lower to $44.65 before the open after the company beat earnings expectations yesterday, but provided guidance for the 1Q2019 EPS that was below expectations ($0.68 vs $0.72 projected)
  • Starbucks Corp (SBUX) shares are down 4.21% to $55.01 pre-market, after the company announced that it would be closing as many as 150 US locations in FY2019 due to increasing pressure from competitors. Morgan Stanley (MS) and Barclays Plc (BARC.LN) lowered their price forecasts for Starbucks following the company’s decision
  • Xcel Energy (XEL) is 0.81% lower to $43.83 pre-market, after the company was downgraded from buy to a neutral rating at Bank of America (BAC)
  • People’s United Financial Inc (PBCT) has been upgraded to outperform from market perform at Keefe, Bruyette & Woods. Shares of People’s United Financial Inc (PBCT) are up 1.19% to $18.75 pre-market

 

Cryptocurrencies Today

Source: Stockdio

*Source: Stockdio

Stock Movers

Conviction Buy Winners and Losers

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Winners  Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Church & Dwight Co., Inc. CHD Consumer Staples Household Products 2.31% 3.29% 2.53%
American Electric Power Company, Inc. AEP Utilities Electric Utilities 2.15% 3.48% -9.11%
Owens Corning OC Industrials Building Products 2.10% 2.82% -27.08%
Tractor Supply Company TSCO Consumer Discretionary Specialty Stores 1.63% 1.74% 1.15%
Cboe Global Markets, Inc. CBOE Financials Financial Exchanges and Data 1.60% 1.34% -1.56%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Curtiss-Wright Corporation CW Industrials Aerospace and Defense -4.55% -6.37% -4.85%
Huntsman Corporation HUN Materials Diversified Chemicals -4.30% -5.98% -2.56%
Westlake Chemical Corporation WLK Materials Commodity Chemicals -3.58% -5.95% -8.74%
BWX Technologies, Inc. BWXT Industrials Aerospace and Defense -2.98% -4.08% -5.16%
Expeditors International of Washington, Inc. EXPD Industrials Air Freight and Logistics -2.76% -2.79% 0.20%

Source: S&P Capital IQ

Conviction Short Winners and Losers

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Winners Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Pluralsight, Inc. PS Information Technology Application Software -7.07% -5.88% 22.07%
Ceridian HCM Holding Inc. CDAY Information Technology Application Software -6.12% -2.45% 7.32%
AnaptysBio, Inc. ANAB Healthcare Biotechnology -5.29% 2.10% -1.70%
Snap Inc. SNAP Information Technology Application Software -5.27% -4.04% 16.86%
Acacia Communications, Inc. ACIA Information Technology Communications Equipment -3.74% -3.91% 4.95%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Sarepta Therapeutics, Inc. SRPT Healthcare Biotechnology 36.76% 45.71% 158.68%
Longfin Corp. LFIN Financials Financial Exchanges and Data 17.65% 117.39% -82.24%
Array BioPharma Inc. ARRY Healthcare Biotechnology 8.57% 5.56% 48.44%
Spark Therapeutics, Inc. ONCE Healthcare Biotechnology 8.07% 7.71% 61.18%
Diamondback Energy, Inc. FANG Energy Oil and Gas Exploration and Production 4.08% 10.03% 1.05%

Source: S&P Capital IQ

Events Calendar

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Company Name Ticker Event Date Event Type Q-Factor Score
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

Source: S&P Capital IQ