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Morning Brief

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Morning Quant Ride

Jun 26, 2018

US Stocks                                                                                                                                                                          Start Your Free Trial Today

  • Global stocks are stabilizing this AM following yesterday’s sell-off
  • US equity index futures are mixed with the Dow Jones minis -0.14%, S&P500 minis -0.14% and Nasdaq 100 minis +0.02%
  • The VIX is currently at 17.39 after reaching as high as 19.61 yesterday
  • Bank of America (BAC) January 2019 OTM Puts, SPY July 20 & June 29 OTM Puts, and EEM July 20 OTM Puts are the most heavily traded options contracts in the US pre-market
  • The yield on the US 10-year government bond is little changed at 2.875%
  • The USD$ Index (DXY) is +0.20% with a weaker GBP£ (-0.28% to 1.3243), EUR€ (-0.30% to 1.1669) offsetting strength in JPY¥ (+0.15% to 109.61)
  • Precious metals are declining this morning with Gold -0.76% to 1,256.03/Oz, Silver -0.96% to 16.17/Oz, and Platinum -0.92% to USD$860.10/Oz
  • Major cryptocurrencies are mixed with Bitcoin (BTC) +0.33%to USD$6,213.50 while Ethereum (ETH) -2.14% to SUD$450.96 ad Ripple (XRP) -1.17% to USD$0.478546

International Stocks.

  • European stocks are higher today, despite continuing trade tensions and declines in Chinese equities, with the Euro Stoxx 600 +0.16%, the DAX +0.06%, the CAC40 +0.33%, and the FTSE 100 +0.57%
  • VSTOXX, a measure of volatility for European stocks, has fallen 60 basis points today to 17.19 from, 17.87
  • The Italian 10-year yield is up 9.3 basis points to 2.906%
  • The German 10-year Bund yield is little changed, down 0.8 basis points to 0.318%
  • S&P upgraded Greece’s debt to B+ from B, sending its 10-year yield down 21.4 basis points to 4.095%
  • Asian stocks were mostly lower today, as trade tensions continue to weigh on the Asian markets, with the Nikkei 225 +0.02%, Hang Seng -0.28%, and the Hang Seng China Enterprise Index -0.80%

Cryptos

  • Robinhood is looking to expand its cryptocurrency services and more effectively compete with cryptocurrency trading platforms, particularly Coinbase. The company rolled out cryptocurrency trading on its platform earlier this year but did not include a wallet storage system. Users have reported that the services are limited
  • Dutch multinational banking and financial services giant ING, has conducted a survey covering 15,000 individuals over 13 different countries in Europe as well as the US and Australia.  Of the European individuals surveyed, it is noted that 35% believe that cryptocurrencies will be the future of online spending
  • Cordite, an open source community that is building upon the code from the R3 consortium, is being unveiled soon. Cordite will allow enterprise blockchains to create different tokens on the same network for different types of assets, similar to what the ERC20 standard did for Ethereum. The difference is Cordite is designed for banking institutions
  • The Bank for International Settlements’ (BIS) economic adviser and head of research, Hyun Song Shin recently stated that cryptocurrencies should be treated like other securities such as stocks and bonds. Quantamize updated its AI Machine Learning CryptoFolios yesterday AM. The next update will be Monday 07/02/18. Quantamize’s AI Machine Learning 3-Day Crypto trading signals were updated this morning. Currently 7 cryptocurrencies are rated as Buy

*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.

Allison Transmission Holdings, Inc. - 11.58% off its 52wkH on 10/31/2017, reports earnings on 07/27/2018

American Eagle Outfitters, Inc. - 7.82% off its 52wkH on 06/21/2018, reports earnings on 08/17/2018

Comcast Corporation - 24.73% off its 52wkH on 01/24/2018, reports earnings on 07/26/2018

Gentex Corporation - 7.79% off its 52wkH on 06/13/2018, reports earnings on 07/20/2018

Intel Corporation - 11.96% off its 52wkH on 06/04/2018, reports earnings on 07/26/2018

Lam Research Corporation - 27.19% off its 52wkH on 03/13/2018, reports earnings on 07/26/2018

Micron Technology, Inc. - 17.79% 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.

AMC Entertainment Holdings (AMC) debuts A-List movie-ticket plan in shot at MoviePass.

American Express (AXP) won a US Supreme Court ruling, which determined that the company did not violate federal antitrust laws through its practice of  including anti-steering provisions in its merchant contracts which prevent merchants from steering patrons to other credit cards

Bayerische Motoren Werke AG (DB:BMW) is trading 1.58% lower to €77.65 in today’s trading, after the company warned it would significantly reduce its investment in the UK if a Brexit deal isn’t reached which would allow goods to flow freely to the EU.

FactSet Research Systems (FDS) posted 3Q2018 EPS that beat the consensus ($2.18 vs $2.13) and provided FY2018 EPS guidance that was higher than forecasted ($8.37-$8.62 vs $8.48 anticipated). Shares of FactSet are up 0.54% to $209.00 pre-market.

General Electric (GE), the fallen industrial icon, confirmed that it will be spinning off its healthcare business, as well as divesting its ownership stake in Baker Hughes (BHGE).

IHS Markit Limited (INFO) announced 2Q2018 EPS that was stronger the projected ($0.61 vs $0.57 consensus). IHS Markit stock is unchanged before today’s trading.

Intel Corp (INTC) was downgraded from market perform to underperform at Bernstein. Intel Corp’s stock is down 1.79% to $49.80 before the open.

Lam Research (LRCX) has been upgraded to a buy from a neutral ranking at UBS. Lam Research shares are up 2.63% to $175.50 pre-market.

Lennar Corp (LEN) shares are up 8.49% to $53.40 pre-market after the company reported 2Q2018 EPS that was significantly higher than expected ($0.94 vs $0.45).

Micron Technology (MU) shares are 2.14% higher before the open to $54.30 after the company was upgraded to neutral from a sell rating at UBS.

Netflix Inc (NFLX) shares traded 6.47% lower to $384.48 yesterday, which was the first trading day for Netflix since the company removed its CCO Jonathan Friedland over the repeated use of racial slurs.

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
American Electric Power Company, Inc. AEP Utilities Electric Utilities 2.49% 3.18% -6.17%
The J. M. Smucker Company SJM Consumer Staples Packaged Foods and Meats 2.38% 1.76% -12.89%
Church & Dwight Co., Inc. CHD Consumer Staples Household Products 1.86% 1.62% 2.79%
WEC Energy Group, Inc. WEC Utilities Multi-Utilities 1.85% 2.55% -4.50%
The Hershey Company HSY Consumer Staples Packaged Foods and Meats 1.65% 2.55% -17.01%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Micron Technology, Inc. MU Information Technology Semiconductors -6.90% -9.82% -7.69%
Visa Inc. V Information Technology Data Processing and Outsourced Services -3.25% -3.37% 0.16%
Mastercard Incorporated MA Information Technology Data Processing and Outsourced Services -3.23% -3.25% 2.56%
Monolithic Power Systems, Inc. MPWR Information Technology Semiconductors -2.81% -4.53% 1.69%
FedEx Corporation FDX Industrials Air Freight and Logistics -2.99% -6.72% -5.86%

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
Overstock.com, Inc. OSTK Consumer Discretionary Internet and Direct Marketing Retail -8.67% -21.57% -8.60%
Applied Optoelectronics, Inc. AAOI Information Technology Communications Equipment -7.55% -4.25% -13.15%
Tesaro, Inc. TSRO Healthcare Biotechnology -7.90% -1.70% -0.15%
Global Blood Therapeutics, Inc. GBT Healthcare Biotechnology -7.02% -7.46% -18.80%
United States Steel Corporation X Materials Steel -6.48% -3.39% -6.37%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Longfin Corp. LFIN Financials Financial Exchanges and Data 16.77% -21.99% -80.46%
SCANA Corporation SCG Utilities Multi-Utilities 3.76% 2.76% -3.47%
Cousins Properties Incorporated CUZ Real Estate Office REITs 1.79% 0.63% 4.32%
Formula One Group FWON.K Consumer Discretionary Movies and Entertainment 1.76% 5.43% 5.21%
Gulfport Energy Corporation GPOR Energy Oil and Gas Exploration and Production 1.20% 4.26% -7.84%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
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
RYB Education, Inc. RYB 6/28/2018 Estimated Earnings Release Date China All-Cap: F
China Soft Power Technology Holdings Limited SEHK:139 6/28/2018 Estimated Earnings Release Date China All-Cap: F
Zhaobangji Properties Holdings Limited SEHK:1660 6/28/2018 Earnings Release Date China All-Cap: C
eprint Group Limited SEHK:1884 6/28/2018 Earnings Release Date China All-Cap: D
Affluent Partners Holdings Limited SEHK:1466 6/28/2018 Earnings Release Date China All-Cap: D
Coastal Greenland Limited SEHK:1124 6/28/2018 Earnings Release Date China All-Cap: C
Constellation Brands, Inc. STZ 6/28/2018 Earnings Release Date US Large-Cap: B, US Consumer Staples: B
Freeman FinTech Corporation Limited SEHK:279 6/28/2018 Earnings Release Date China All-Cap: C

Source: S&P Capital IQ