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Morning Brief

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Morning Quant Ride

Jun 25, 2018

US Stocks                                                                                                                                                                              Start Your Free Trial Today

  • Global stocks are trading lower this morning over escalating rhetoric on trade tensions and reciprocal trade retaliation
  • US equity index futures are declining with the Dow Jones minis -0.79%, S&P500 minis -0.63% and Nasdaq 100 minis -0.97%
  • The VIX is currently at 15.07 up 45 basis points, or 3.07%
  • SPY June 29 ATM Puts and BAC June 29 OTM Calls are the most heavily traded options contracts in the US pre-market this AM
  • The US 10-year yield is down 1.0 basis points to 2.887%
  • Crude oil prices are mixed this morning after last week’s rally, with WTI +0.31% to USD$68.79/bbl, and Brent -1.55% to USD$74.38/bbl
  • Precious metals are lower this morning, with Gold -0.13% to USD$1,690.00/oz, Silver -0.45% to USD$16.47/oz, Platinum -0.52% to USD$872.81/Oz, and Palladium -0.42% to USD$954.38/Oz

International Stocks

  • European stock markets are following Asian equities lower today, with the Euro Stoxx 600 -1.10%, the DAX -1.33%, the CAC40 -0.77%, and the FTSE 100 -1.37%
  • VSTOXX, a measure of volatility for European stocks, has risen 12.83% to 16.03 today
  • The Italian 10-year yield is higher this morning, up 8 basis points to 2.779%
  • The German 10-year Bund yield is falling today, down 1.1 basis points to 0.329%
  • Asian stock markets fell this morning, with concerns of a trade war still weighing on the market, with the Nikkei 225 -0.79%, the Hang Seng -1.29%, and the Hang Seng China Enterprise Index -1.15%
  • The PBoC is reducing the reserve requirement ratio by 50 basis points for most banks to inject liquidity into the Chinese economy to offset effects of trade tariffs

Cryptos

  • Ebang Communication, one of the largest bitcoin mining chip makers in China is looking to do an initial public offering (IPO) on the Hong Kong Stock Exchange. Ebang is looking to raise as much as USD$1bn, which would be the largest IPO in cryptocurrency history. Just last month, Ebang’s rival – Canaan Creative submitted an IPO application looking to raise USD$1bn
  • Diar, a cryptocurrency research firm, has published a study indicating that only a minority of total cryptocurrencies represent a clear majority of trading volume. Diar states that 0.36% of tradeable cryptocurrencies account for 69% of the total trade volume. The group reported that liquidity is very low on most traded tokens. The study argues that the price action of most altcoins is correlated to the peaks and valleys of bitcoin. Diar asserts that a third of all cryptocurrency markets generated less than USD$1,000 in 24-hour trade volume
  • An online news resource reported that AliPay has developed and piloted its first blockchain based electronic wallet cross border remittance. The transaction took place between Hong Kong and the Philippines
  • Quantamize has updated its AI Machine Learning CryptoFolios this morning. The next update will be Monday 07/02/18. Quantamize’s AI Machine Learning 3-Day Crypto trading signals will be updated tomorrow morning. Currently 12 cryptocurrencies are rated as Buy

*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 Friday We Are Watching Today

Click name for Q-Factor rating and financial data.

Applied Materials, Inc. - 23.14% off its 52wkH on 03/12/2018, reports earnings on 08/16/2018

Electro Scientific Industries, Inc. - 39.47% off its 52wkH on 11/27/2017, reports earnings on 07/30/2018

FedEx Corporation - 11.97% off its 52wkH on 01/18/2018, reports earnings on 09/18/2018

Kohl's Corporation - 7.61% off its 52wkH on 06/12/2018, reports earnings on 08/21/2018

Lam Research Corporation - 25.62% off its 52wkH on 03/13/2018, reports earnings on 07/26/2018

Lear Corporation - 5.17% off its 52wkH on 06/11/2018, reports earnings on 07/24/2018

Micron Technology, Inc. - 11.69% off its 52wkH on 05/30/2018, reports earnings on 09/28/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Campbell Soup (CPB) is up 6.22% to $41.00 pre-market, following post-market reports on Friday which indicated that Kraft Heinz (KHC) was weighing a possible acquisition of the struggling food manufacturer

Ciena Corp (CIEN) is 1.33% higher to $25.20 prior to today’s trading, after the company was upgraded to overweight at Morgan Stanley, with a price target set at $30

First Solar Inc (FSLR) is up 3.04% to $54.25 before the open, after the company was upgraded from neutral to a buy rating at Bank of America, with a price target set at $63

Gray Television Inc (GTN) has acquired Raycom in an equity and cash deal valued at $3.6 billion

General Electric (GE) is nearing a deal to sell a business unit that makes large industrial engines to private equity firm advent technology, in a deal that is expected to total $3 billion or more

Intel Corp (INTC) has been downgraded to neutral at Nomura Instinet, from neutral to a buy rating, with a price target set at $55. Shares of intel are down 2.63% to $51.12 pre-market

Kroger Co (KR) is down 2.80% to $28.86 before today’s trading, following a downgrade from buy to a hold rating at Pivotal

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
Comcast Corporation CMCS.A Consumer Discretionary Cable and Satellite 3.11% -0.21% -15.58%
Westlake Chemical Corporation WLK Materials Commodity Chemicals 1.88% -1.95% 1.25%
Colgate-Palmolive Company CL Consumer Staples Household Products 1.80% -0.15% -14.34%
WEX Inc. WEX Information Technology Data Processing and Outsourced Services 1.73% 2.20% 36.15%
Allison Transmission Holdings, Inc. ALSN Industrials Construction Machinery and Heavy Trucks 1.71% -0.34% -3.32%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Ollie's Bargain Outlet Holdings, Inc. OLLI Consumer Discretionary General Merchandise Stores -4.03% -1.73% 4.38%
Micron Technology, Inc. MU Information Technology Semiconductors -3.94% -1.94% -0.85%
Chemed Corporation CHE Healthcare Healthcare Services -2.53% -1.71% -2.41%
AbbVie Inc. ABBV Healthcare Biotechnology -1.96% -5.55% -5.01%
FedEx Corporation FDX Industrials Air Freight and Logistics -2.01% -8.61% -2.95%

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
Longfin Corp. LFIN Financials Financial Exchanges and Data -32.71% 47.19% 90.30%
Overstock.com, Inc. OSTK Consumer Discretionary Internet and Direct Marketing Retail -7.05% -13.22% 0.07%
Sarepta Therapeutics, Inc. SRPT Healthcare Biotechnology -6.23% 37.19% 49.53%
Pivotal Software, Inc. PVTL Information Technology Application Software -5.88% -13.01% 39.80%
Nektar Therapeutics NKTR Healthcare Pharmaceuticals -5.39% -8.66% -34.16%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
California Resources Corporation CRC Energy Oil and Gas Exploration and Production 9.91% 21.82% 119.70%
Whiting Petroleum Corporation WLL Energy Oil and Gas Exploration and Production 9.45% 18.55% 109.44%
Oasis Petroleum Inc. OAS Energy Oil and Gas Exploration and Production 9.11% 14.74% 63.85%
Tesaro, Inc. TSRO Healthcare Biotechnology 8.46% 24.77% -40.12%
Rowan Companies plc RDC Energy Oil and Gas Drilling 8.01% 4.03% -2.75%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right

Company Name Ticker Event Date Event Type Q-Factor Score
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
Nissin Foods Company Limited SEHK:1475 6/26/2018 Estimated 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
KB Home KBH 6/28/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: D
SYNNEX Corporation SNX 6/28/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
NIKE, Inc. NKE 6/28/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C

 

Source: S&P Capital IQ