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Morning Brief

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

Morning Quant Ride

Jun 27, 2018

US Stocks

  • Global stocks are mixed this AM with European stocks advancing following a sell-off in Asian stocks
  • US stocks index futures are declining with the Dow Jones minis -0.57%, S&P500 minis -0.50% and Nasdaq 100 minis -0.87%
  • The VIX is currently at 16.83 after closing at 15.92 yesterday
  • Bank of America (BAC) January 2019 OTM Calls, UUP August 2018 OTM Calls, XLF July 20 OTM Calls, and QQQ June 29 OTM Calls are the most heavily traded options contracts in the US pre-market
  • Conagra Brands (CAG) announces a cash and stock USD$10.9bn bid for Pinnacle Foods (PF)
  • The yield on the US 10-year government bond is little changed at 2.860%
  • The USD$ Index (DXY) is +0.26% with weakness in GBP£ (-0.31% to 1.3184), EUR€ (-0.20% to 1.1623), JPY¥ (-0.11% to 110.17) and ZAR (-1.30% to 13.71)
  • Global oil prices are advancing this morning as the US government continues to insist its allies end all imports of Iranian oil by a November 4, 2018 deadline: WTI is +0.84% to USD$71.12/bbl and Brent is +0.83% to USD$76.94/bbl
  • The Brent-WTI spread has mean reverted back down closer to its long-run average of USD$5.066: currently, sites at USD$5.7436 after reaching a high of USD$10.7885 on June 7, 2018
  • Major cryptocurrencies are declining with Bitcoin (BTC) -1.54%%to USD$6,122.78, Ethereum (ETH) -3.01% to USD$436.77 and Ripple (XRP) -3.19% to USD$0.46333

International Stocks

  • European stocks are trending up this AM following news that US President Trump is open to taking a less confrontational approach to curbing Chinese investment in US technology companies with the Euro Stoxx 600 +0.12%, FTSE 100 +0.10%, DAX +0.15%, and CAC 40 +0.25%
  • Spanish and Italian sovereign bonds are rallying: Spanish 10-year yields -5.6 basis points to 1.329% and Italian 10-year yields -5.1 basis points to 2.830%
  • Asian stocks sold off for the third straight day with the Nikkei 225 -0.31%, Hang Seng -1.82% and Hang Seng China Enterprise -2.16%
  • Worries about a devaluation of the CNY (down 0.45% against the USD$ to 6.6088 this AM) and the impact of escalating trade tensions between the US and China continue to weigh on Hong Kong and Chinese stocks

Cryptos

  • Facebook will be reversing prior actions and unban cryptocurrency advertisements on its platform. The original ban went into place in January. Advertisers will need to submit the type of content they will be displaying in advance. The company said it has been studying the best way to refine its advertisement policy so that the advertisements are safe to display for its users
  • Nobel Laurette Economist, Robert Shiller, had an interview with Bloomberg yesterday and noted that Bitcoin is a social movement and that its popularity is split across different lines. The economist called the Bitcoin phenomenon “generational and geographic”. Shiller discussed how Silicon Valley is more enthusiastic than the East Coast
  • Cryptocurrency exchange Huobi Pro will be ending its trading services to Japanese investors starting next month. The suspension will take place July 2nd. Huobi Pro is currently the third largest cryptocurrency exchange by trading volume. The cryptocurrency exchange does not have a license with Japan’s Financial Services Authority (FSA)
  • Quantamize updated its AI Machine Learning CryptoFolios Mondary Morning. The next update will be Monday 07/02/18. Quantamize’s AI Machine Learning 3-Day Crypto trading signals were updated yesterday AM. The next update will be 6/29/18. Currently 7 cryptocurrencies are rated as Buy

 

*Data in Price Return; Source: Stockdio

S&P 500 Sector Performance

*Data in Total Return; Source: S&P Capital IQ

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

AbbVie Inc. - 26.81% off its 52wkH on 01/26/2018, reports earnings on 07/27/2018

Allison Transmission Holdings, Inc. - 11.75% off its 52wkH on 10/31/2017, reports earnings on 07/27/2018

American Eagle Outfitters, Inc. - 8.59% off its 52wkH on 06/21/2018, reports earnings on 08/17/2018

Intel Corporation - 13.77% off its 52wkH on 06/04/2018, reports earnings on 07/26/2018

The TJX Companies, Inc. - 1.70% off its 52wkH on 06/20/2018, reports earnings on 08/21/2018

Xcerra Corporation - 4.14% 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.

  • Baidu Inc’s (BIDU) board of directors has reportedly approved a USD$1 billion share repurchase program, that will be carried out over the next 12 months
  • Coca-Cola (KO) has temporarily halted production in Europe, after several major producers of carbon dioxide will reportedly pause their operations to resolve maintenance issues, creating a shortage of the gas
  • Conagra Brands Inc (CAG) has agreed to acquire Pinnacle Foods Inc (PF) for nearly $10.9 billion in a cash and equity deal. The merger values Pinnacle Foods at $68 per share, which is nearly in-line with company’s price at the close yesterday ($67.86). Shares of Pinnacle Foods are down 4.51% to $64.80 pre-market, while Conagra Brands’ stock slid 6.49% to $35.75 before the open
  • Facebook Inc (FB) has reversed course and will allow cryptocurrency-related advertising on its platform, though ICO and binary options advertisements are still banned. Facebook originally prohibited cryptocurrency advertising in December 2017
  • The Alliance of Automobile Manufacturers, which represents General Motors Co (GM), Toyota Motors (7203 JP), Volkswagen AG (VOR.GR) and several other major auto manufacturers, will reportedly inform President Trump that a potential 25% tariff on US auto imports into China may cost US customers up to $45 billion annually, or $5,800 per vehicle
  • General Mills (GIS) reported 4Q2018 EPS that was higher than expected ($0.79 vs $0.72 forecasted). General Mills stock is up 0.96% to $46.50 pre-market
  • Intel’s (INTC) interim CEO Bob Swan, who replaced former CEO Brian Krzanich due to personal misconduct allegations, has reportedly informed employees that he does not wish to hold his position permanently

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
Micron Technology, Inc. MU Information Technology Semiconductors 2.69% -8.16% 32.76%
ICU Medical, Inc. ICUI Healthcare Healthcare Supplies 2.53% -0.50% 38.06%
Pinnacle Foods Inc. PF Consumer Staples Packaged Foods and Meats 2.40% 2.80% 14.11%
Curtiss-Wright Corporation CW Industrials Aerospace and Defense 2.00% 0.31% -2.47%
Monolithic Power Systems, Inc. MPWR Information Technology Semiconductors 1.98% -2.98% 21.86%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Copart, Inc. CPRT Industrials Diversified Support Services -3.46% -5.52% 2.64%
Fortive Corporation FTV Industrials Industrial Machinery -3.13% -3.71% 3.45%
Laboratory Corporation of America Holdings LH Healthcare Healthcare Services -2.28% -2.32% 1.46%
Sirius XM Holdings Inc. SIRI Consumer Discretionary Cable and Satellite -1.80% -3.05% -2.30%
Conagra Brands, Inc. CAG Consumer Staples Packaged Foods and Meats -1.82% -0.13% 3.16%

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
Incyte Corporation INCY Healthcare Biotechnology -6.97% -7.95% -2.26%
Agios Pharmaceuticals, Inc. AGIO Healthcare Biotechnology -5.00% -9.57% -5.93%
Tesaro, Inc. TSRO Healthcare Biotechnology -5.05% -5.16% -5.20%
GreenSky, Inc. GSKY Information Technology Data Processing and Outsourced Services -4.96% -6.96% -17.67%
Portola Pharmaceuticals, Inc. PTLA Healthcare Biotechnology -3.32% -3.00% 1.44%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Puma Biotechnology, Inc. PBYI Healthcare Biotechnology 24.36% 21.39% -35.71%
Longfin Corp. LFIN Financials Financial Exchanges and Data 16.77% -21.43% -80.46%
Applied Optoelectronics, Inc. AAOI Information Technology Communications Equipment 6.21% -0.88% 13.04%
Gulfport Energy Corporation GPOR Energy Oil and Gas Exploration and Production 5.61% 8.85% -2.66%
Sage Therapeutics, Inc. SAGE Healthcare Biotechnology 4.88% -4.48% -6.50%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
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