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Morning Brief

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Morning Quant Ride

Jun 22, 2018

US Stocks                                                                                                                                                                                                        Start Your Free Trial Today

  • Global stocks are rebounding this AM following rumors that the US and China are talking about how to avoid an escalation in trade tensions
  • US equity index futures are advancing with the Dow Jones minis +0.43%, S&P500 minis +0.42% and Nasdaq 100 minis +0.30%
  • The VIX is currently at 13.60 after reaching as high as 15.18 yesterday
  • EEM June 29 OTM Puts and SPY September 2018 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 at 2.913%, up 1 basis point
  • Global sovereign markets are relatively flat this AM with Italian sovereigns the outlier again today – the yield on the Italian government 10-year is -7.7 basis points to 2.640%
  • The USD$ Index is -0.26% with a stronger GBP£ (+0.36% to 1.3287), EUR€ (+0.40% to 1.1650) and AUDS$ (+0.71% to 0.7431) offsetting weakness in JPY¥ (-0.16% to 110.17)
  • Global crude oil prices are rallying this morning with expectations that OPEC is close to agreeing on a deal to boost global crude oil supply – WTI +1.53% to USD$66.53/bbl and Brent +1.93% t0 USD$74.41/bbl
  • Precious metals are rebounding after declining for most of the week with Gold +0.20% to 1,269.81/Oz, Silver +0.63% to 16.42/Oz, Platinum +0.49% to USD$867.86/Oz -- Platinum continues to trade near its 2016 low
  • Major cryptocurrencies are selling off this morning following the decision by Japanese regulator Financial Services Agency (FSA) to hit domestic cryptocurrency exchanges with business-improvement orders

International Stocks

  • European stocks are higher today, reversing from yesterday’s declines, with the Euro Stoxx 600 up 0.80%, the FTSE 100 rising 1.03%, the DAX climbing 0.48%, and the CAC 40 gaining 0.92%
  • VSTOXX, a measure of volatility for European stocks, has fallen 9.59% to 14.54 today, after rising nearly 30% over the previous four trading days
  • Italian sovereign debt is rallying, with the yield on Italy’s 10-year down 6.9 basis points to 2.648%. The German Bund is selling-off, as yield on the German 10-year has increased 1.1 basis points to 0.342%
  • The EU has imposed 25% tariffs on numerous US goods, representing a trade value of $3.2 billion, in retaliation to a lack of exemption from US steel and aluminum tariffs
  • Stocks across Asia were mixed to end the week with the Nikkei 225 falling 0.78% and the ASX 200 sliding 0.11%, while the Hang Seng rose 0.15%, CSI 300 gained 0.44%, and the Nifty 50 was up 0.75%

Cryptos

  • Japan’s financial regulator, the Financial Services Agency (FSA), has issued business improvement orders to six of the country’s cryptocurrency exchanges. The following exchanges received the improvement orders: Bitflyer, Tech Bureau, Bitpoint Japan, Btcbox, Bitbank and Quoine. Bitflyer is Japan’s largest cryptocurrency exchange by volume. Upon receiving this news, Bitflyer has stopped accepting new accounts
  • Reality Shares is launching China’s first blockchain ETF. Investors will have access to Chinese companies that participate or invest in the blockchain space. Businesses will have to qualify for Reality Share’s BCNA Index
  • Venture capital (VC) firms are exploring ways to restructure legally and financially to tap into cryptocurrency investments. The contemplated restructuring addresses VC firm's limitations on holding more than 20% of investments in liquid investments
  • VeChain has revealed new partnerships with DB Schenker and PwC ahead of its mainnet launch. The protocol has posted its official launch schedule to Twitter. The cryptocurrency community has been said to be confused on how to convert the outstanding VEN tokens to the new VET tokens that the protocol will use

*Data in Price Return, Soruce: 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.

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

Owens Corning - 32.47% off its 52wkH on 01/24/2018, reports earnings on 07/25/2018

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.

  • Airbus SE (AIR.FR) warned that it may pull its operations out of the UK after Brexit, and remarked that Brexit would have severe negative consequences for the UK aerospace industry and Airbus in particular”
  • Darden Restaurants Inc (DRI) shares are up 0.43% to $107.52, pre-market, after trading 14.77% higher yesterday, following an upgrade this morning at Bank of America to neutral from an underperform rating
  • Dollar General (DG) is up 1.34% to a $100 handle, following the company’s upgrade at Raymond James to strong buy from an outperform rating
  • The Federal Reserve announced that the 35 largest banks in the US, including JP Morgan Chase & Co (JPM), Bank of America Corp. (BAC), Wells Fargo & Co. (WFC) and Citigroup Inc. (C), all passed the Fed’s annual “stress test”. The “stress test” determines a bank’s ability to lend to household during turbulent global economic conditions
  • Micron Technology (MU) has been rated as a buy at Benchmark Company LLC, which set an $80 price target for Micron. Shares of Micron are up 0.61% to $59.80 before the open
  • Pinnacle Foods (PF) shares are up 1.50% to $67.00 pre-market, following yesterday’s report that Conagra Brands (CAG) had approached Pinnacle Foods about a potential merger deal
  • TechnipFMC Plc (FTI) shares are trading 3.28% higher to $31.77, despite the company being downgraded at BNP Paribas from neutral to an underperform rating
  • Tesla Inc (TLSA) will reportedly close nearly a dozen solar faculties, which the company took control of through its acquisition of Solar City. This development follows Tesla Inc’ recent decision to terminate 9% of its total workforce
  • United Rental Inc (URI) has been upgraded from neutral to a buy rating at UBS, with a price target set at $196. Shares of United Rentals are up 2.32% to $156.73 pre-market

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
Ollie's Bargain Outlet Holdings, Inc. OLLI Consumer Discretionary General Merchandise Stores 3.43% 2.40% 44.41%
Pinnacle Foods Inc. PF Consumer Staples Packaged Foods and Meats 2.25% 1.55% 11.00%
Chemed Corporation CHE Healthcare Healthcare Services 1.56% 0.83% 34.30%
Tractor Supply Company TSCO Consumer Discretionary Specialty Stores 0.95% 4.23% 3.75%
Motorola Solutions, Inc. MSI Information Technology Communications Equipment 0.93% 2.21% 29.57%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Sirius XM Holdings Inc. SIRI Consumer Discretionary Cable and Satellite -4.66% -5.54% 0.85%
Starbucks Corporation SBUX Consumer Discretionary Restaurants -3.06% -11.36% -10.68%
Owens Corning OC Industrials Building Products -2.98% -1.15% 3.10%
AbbVie Inc. ABBV Healthcare Biotechnology -2.50% -3.67% -3.11%
A. O. Smith Corporation AOS Industrials Building Products -2.34% -4.48% -4.77%

*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
Pluralsight, Inc. PS Information Technology Application Software 0.04% -12.22% 15.80%
Ceridian HCM Holding Inc. CDAY Information Technology Application Software -1.17% -4.66% 5.55%
AnaptysBio, Inc. ANAB Healthcare Biotechnology -6.56% -4.92% -8.03%
Snap Inc. SNAP Information Technology Application Software 3.44% -5.56% 16.24%
Acacia Communications, Inc. ACIA Information Technology Communications Equipment -4.18% -5.09% 2.66%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Sarepta Therapeutics, Inc. SRPT Healthcare Biotechnology -2.63% 46.30% 168.96%
Longfin Corp. LFIN Financials Financial Exchanges and Data -0.71% 118.75% -75.13%
Array BioPharma Inc. ARRY Healthcare Biotechnology -2.20% 9.04% 52.73%
Spark Therapeutics, Inc. ONCE Healthcare Biotechnology -2.32% 14.17% 72.09%
Diamondback Energy, Inc. FANG Energy Oil and Gas Exploration and Production -4.50% 7.05% -2.00%

*Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right

Company Name Ticker Event Date Event Type Q-Factor Score
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 6/25/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: B
Agritrade Resources Limited SEHK:1131 6/25/2018 Earnings Release Date China All-Cap: B
Get Nice Financial Group Limited SEHK:1469 6/25/2018 Earnings Release Date China All-Cap: F
B & S International Holdings Ltd. SEHK:1705 6/25/2018 Earnings Release Date China All-Cap: F
JinkoSolar Holding Co., Ltd. JKS 6/25/2018 Earnings Release Date China All-Cap: D
FactSet Research Systems Inc. FDS 6/26/2018 Earnings Release Date US Large-Cap: A
Lennar Corporation LEN 6/26/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: D
Link Motion Inc. LKM 6/26/2018 Estimated Earnings Release Date China All-Cap: F
Razer Inc. SEHK:1337 6/26/2018 Estimated Earnings Release Date China All-Cap: F
Global Brands Group Holding Limited SEHK:787 6/26/2018 Earnings Release Date China All-Cap: D
South Shore Holdings Limited SEHK:577 6/26/2018 Earnings Release Date China All-Cap: F
Shunten International (Holdings) Limited SEHK:932 6/26/2018 Earnings Release Date China All-Cap: D
Luk Fook Holdings (International) Limited SEHK:590 6/26/2018 Earnings Release Date China All-Cap: B
Bed Bath & Beyond Inc. BBBY 6/26/2018 Estimated Earnings Release Date US Large-Cap: D, US Consumer Discretionary: F
Paychex, Inc. PAYX 6/26/2018 Earnings Release Date US Large-Cap: A, US Information Technology: B
CT Environmental Group Limited SEHK:1363 6/26/2018 Estimated Earnings Release Date China All-Cap: C
Apex Ace Holding Limited SEHK:6036 6/26/2018 Estimated Earnings Release Date China All-Cap: F
Vicon Holdings Limited SEHK:3878 6/26/2018 Earnings Release Date China All-Cap: D
Kin Shing Holdings Limited SEHK:1630 6/26/2018 Earnings Release Date China All-Cap: C
Precision Tsugami (China) Corporation Limited SEHK:1651 6/26/2018 Earnings Release Date China All-Cap: C
General Mills, Inc. GIS 6/27/2018 Earnings Release Date US Large-Cap: B, US Consumer Staples: C
Rite Aid Corporation RAD 6/27/2018 Earnings Release Date US Large-Cap: F, US Consumer Staples: F
McCormick & Company, Incorporated MKC 6/27/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Staples: A
China Water Affairs Group Limited SEHK:855 6/27/2018 Earnings Release Date China All-Cap: A
OP Financial Limited SEHK:1140 6/27/2018 Earnings Release Date China All-Cap: D
Yuk Wing Group Holdings Limited SEHK:1536 6/27/2018 Earnings Release Date China All-Cap: D
China South City Holdings Limited SEHK:1668 6/27/2018 Earnings Release Date China All-Cap: C
Kingston Financial Group Limited SEHK:1031 6/27/2018 Earnings Release Date China All-Cap: F
Dingyi Group Investment Limited SEHK:508 6/27/2018 Earnings Release Date China All-Cap: F
FDG Electric Vehicles Limited SEHK:729 6/27/2018 Earnings Release Date China All-Cap: F
Walgreens Boots Alliance, Inc. WBA 6/28/2018 Earnings Release Date US Large-Cap: B, US Consumer Staples: C
Conagra Brands, Inc. CAG 6/28/2018 Earnings Release Date US Large-Cap: A, US Consumer Staples: A

*Source: S&P Capital IQ