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Morning Brief

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Morning Quant Ride

Jun 21, 2018

US Stocks                                                                                                                                                                                                   Start Your Free Trial Today

  • Global stocks are in the red this AM with Daimler’s (XTRA: DAI) profit warning raising further concerns about the potential for a global trade war
  • US equity index futures are declining with the Dow Jones minis -0.32%, S&P500 minis -0.15% and Nasdaq 100 minis -0.07%
  • The VIX is currently at 13.28 after closing at  on 12.79 yesterday
  • EEM December 2018 ATM/ITM Puts and SPY July 02 OTM 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 2.926%, down 1 basis point
  • Global sovereign markets are relatively flat this AM with Italian sovereigns the outlier – the yield on the Italian government 10-year is +11 basis points to 2.646%
  • The USD$ Index is +0.18% at 95.274 with a stronger GBP£, at $1.3216, offsetting weakness in EUR€ -0.25% at $1.4510 and JPY¥ -0.14% at $110.55
  • Global oil prices are down following comment by the Saudi Energy Minister that OPEC should help global consumers ahead of the OPEC meeting in Vienna this week – WTI -1.40% at $64.76 and Brent -1.62% at $73.59
  • Major cryptocurrencies are rallying this morning on weaker trading volumes lead by Ethereum Classic (ETC) which is up double digits

International Stocks

  • European stocks are down this morning following Daimler’s Daimler’s (XTRA: DAI) negative profit outlook on escalating global trade tensions and the BOE decision to unanimously raise rates
  • Autos and banks stocks are the largest laggards this AM with the Euro Stoxx 600 -0.24%, FTSE 100 -0.51%, CAC 40 -0.37% and DAX -0.74%
  • VSTOXX, the European stocks equivalent of the VIX, continues to drift higher this week and is currently at 15.3655
  • Italian bonds are selling off following the appointments of Alberto Bagnai as head of the Finance Committee and Claudio Borghi as the head of the budget committee in the Lower House of the Italian Parliament – two well-known Euroskeptics
  • Continued investor anxiety towards rising tensions between the US and China over trade pressured Asian stocks with the Nikkei 225 +.61%, Hang Seng -1.35%, Hang Seng China Enterprise -1.23% and the CSI 300 -1.17%
  • In comparison to the large-cap focused Nikkei 225, the broader TOPIX finished -0.12% with more than half the stocks in the 1,000 stock Japanese index finishing negative

Cryptos

  • Litecoin futures will be launched tomorrow in the UK. The futures will be dollar denominated and allow investors to trade in futures contracts with Litecoin as the underpinning collateral. Maturities available for trading include weekly, monthly and quarterly
  • Robinhood is reported to be negotiating with US regulators on becoming a bank, complete with traditional services like savings accounts. This year, the firm released cryptocurrency mobile trading and the firm received a USD$5.6bn valuation
  • A South Korean bill has been submitted which imposes new obligations on the country’s cryptocurrency exchanges. The country’s top regulator, Choi Jon-Ku – Chairman of the Financial Services Commission (FSC), stated Wednesday that the country needs to make the cryptocurrency transaction system stable to better protect traders
  • Nasdaq CEO, Adena Friedman recently spoke and said that initial coin offerings (ICOs) pose “serious risks” for retail investors. The CEO spoke at the Future of Fintech conference. She stated that the ICOs can seriously defraud retail investors due to the lack of public information, transparency and accountability. She also agreed with the SEC’s position that ICOs should be considered security offerings
  • Quantamize’s AI Machine Learning 3-Day Crypto trading signals were updated Wednesday 6/20/18 and will be updated on Saturday 6/23/2018. 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 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.

Atkore International Group Inc. - 10.11% off its 52wkH on 01/26/2018, reports earnings on 08/07/2018

CA, Inc. - 2.57% off its 52wkH on 06/15/2018, reports earnings on 07/24/2018

Cummins Inc. - 28.63% off its 52wkH on 01/29/2018, reports earnings on 07/31/2018

Louisiana-Pacific Corporation - 12.22% off its 52wkH on 04/17/2018, reports earnings on 08/01/2018

Malibu Boats, Inc. - 4.28% off its 52wkH on 06/15/2018, reports earnings on 09/07/2018

Westlake Chemical Corporation - 15.53% off its 52wkH on 05/22/2018, reports earnings on 08/01/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

  • Micron Technology (MU) shares are up 4.77% pre-market to $61.76 per share, after the company reported stronger than expected 3Q2018 EPS, and forecasts 4Q2018 EPS to also be above projections ($3.30 vs $3.17 estimated). Shares of fellow semiconductor firms Applied Materials (AMAT) and Lam Research (LRCX) are up 1.79% and 1.70%, respectively, in sympathy with the rise in Micron Technology.
  • Beisdorf AG (BEI.GR) shares have declined 4.70% to €94.86, after the company announced that it would be parting ways with CEO Stefan Heidenreich by the end of 2019
  • Commercial Metals Co (CMC) is up 0.01% to $23.67 pre-market, despite releasing 3Q2018 EPS that was lower than forecasted ($1.20 vs $1.28 consensus) 
  • Darden Restaurants Inc (DRI) posted 4Q2018 EPS that was above expectations ($1.39 vs $1.35 consensus). Darden Restaurant’s stock is up 8.29% to $101.00 before the open.
  • Daimler AG (XTRA:DAI is trading 4.16% lower today to €58.10 per share, after the company issued a warning that FY2018 earnings may come in lower than previously estimated. Daimler AG cited rising trade tensions, and the company’s diesel emission scandal as drivers of the lower projected profitability
  • Lumentum Holdings Inc (LITE) stocks is 3.54% higher to $458.50, after the company was upgraded to buy from a neutral rating at Goldman Sachs
  • Method Electronic (MEI) reported 4Q 2018 EPS that was significantly higher than expected ($0.98 vs $0.73 projected) but forecasted FY2019 EPS that was lower than anticipated ($2.81-$2.96 vs $3.12 consensus). Shares of Method Electronic are down 1.22% to $44.70 per share pre-market
  • Shire PLC (SHP.LN) is up 1.76% to €40.78 today, after the company reported that it had received FDA approval for its CINRYZE branded drug, which is intended to prevent angioedema attacks
  • Syntel Inc (SYNT) has been downgraded to underperform from a market perform rating at Wells Fargo. Syntel stock has fallen 3.14% to $33.00 pre-market today

Cryptocurrencies Today

*Source: Stockdio

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
CDK Global, Inc. CDK Information Technology Application Software 3.01% -0.11% -7.29%
Comcast Corporation CMCS.A Consumer Discretionary Cable and Satellite 1.77% -1.45% -16.63%
The J. M. Smucker Company SJM Consumer Staples Packaged Foods and Meats 1.76% 0.60% -14.39%
RPM International Inc. RPM Materials Specialty Chemicals 1.68% 0.37% -1.96%
Monolithic Power Systems, Inc. MPWR Information Technology Semiconductors 1.60% -0.23% 25.76%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Starbucks Corporation SBUX Consumer Discretionary Restaurants -9.07% -8.56% -7.85%
FedEx Corporation FDX Industrials Air Freight and Logistics -2.69% -4.96% 0.93%
First American Financial Corporation FAF Financials Property and Casualty Insurance -2.44% -2.87% -3.26%
Ollie's Bargain Outlet Holdings, Inc. OLLI Consumer Discretionary General Merchandise Stores -2.21% -0.91% 4.69%
Church & Dwight Co., Inc. CHD Consumer Staples Household Products -1.34% 0.97% 8.09%

*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
Pivotal Software, Inc. PVTL Information Technology Application Software -6.61% -8.06% 47.75%
Pluralsight, Inc. PS Information Technology Application Software -4.88% -11.56% 14.86%
Snap Inc. SNAP Information Technology Application Software -3.83% -8.70% 12.38%
Arena Pharmaceuticals, Inc. ARNA Healthcare Biotechnology -3.57% -3.36% 4.57%
Amneal Pharmaceuticals, Inc. AMRX Healthcare Pharmaceuticals -3.29% -6.95% -7.70%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Longfin Corp. LFIN Financials Financial Exchanges and Data 41.0% 120.31% -74.96%
Tesaro, Inc. TSRO Healthcare Biotechnology 16.25% 16.90% -43.90%
Sangamo Therapeutics, Inc. SGMO Healthcare Biotechnology 9.73% 14.97% 10.06%
Spark Therapeutics, Inc. ONCE Healthcare Biotechnology 9.30% 16.88% 76.18%
California Resources Corporation CRC Energy Oil and Gas Exploration and Production 7.84% 14.15% 105.86%

*Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right

Company Name Ticker Event Date Event Type Q-Factor Score
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
The Kroger Co. KR 6/21/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: D
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
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
Dali Foods Group Company Limited SEHK:3799 6/22/2018 Estimated Earnings Release Date China All-Cap: C
Huarong Investment Stock Corporation Limited SEHK:2277 6/22/2018 Estimated Earnings Release Date China All-Cap: D
Bestway Global Holding Inc. SEHK:3358 6/23/2018 Estimated Earnings Release Date China All-Cap: C
Unisplendour Technology (Holdings) Limited SEHK:365 6/23/2018 Estimated Earnings Release Date China All-Cap: D
A & S Group (Holdings) Limited SEHK:1737 6/24/2018 Earnings Release Date China All-Cap: F
Carnival Corporation CCL 6/25/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
China Xinhua Education Group Limited SEHK:2779 6/25/2018 Estimated Earnings Release Date China All-Cap: F
NetDragon Websoft Holdings Limited SEHK:777 6/25/2018 Estimated Earnings Release Date China All-Cap: D
Concha plc CHA 6/25/2018 Estimated Earnings Release Date China All-Cap: C
Zinc One Resources Inc. Z 43276.83333 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: B
Agritrade Resources Limited SEHK:1131 43276.83333 Earnings Release Date China All-Cap: B
Get Nice Financial Group Limited SEHK:1469 43276.83333 Earnings Release Date China All-Cap: F
B & S International Holdings Ltd. SEHK:1705 43276.83333 Earnings Release Date China All-Cap: F
JinkoSolar Holding Co., Ltd. JKS 43276.875 Earnings Release Date China All-Cap: D
FactSet Research Systems Inc. FDS 43277.45833 Earnings Release Date US Large-Cap: A
Lennar Corporation LEN 43277.45833 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: D

*Source: S&P Capital IQ