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Morning Brief

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Morning Quant Ride

Jun 29, 2018

US Stocks                                                                                                                                                                                                        Start Your Free Trial Today

  • Global stocks are advancing this morning to close out the quarter on a positive note
  • Asia stocks posted returns for 1H2018 that are the worst since 2010 as Sino-US trade tensions have weighed on stock markets across the region
  • US stocks index futures are advancing with the Dow Jones minis +0.40%, S&P500 minis +0.35% and Nasdaq 100 minis +0.39%
  • The VIX is currently at 15.78 after closing at 16.85 yesterday
  • EEM June 29 OTM Puts, XLF June 29 OTM Calls and SPY June 29 OTM Calls 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 2.844%
  • The USD$ Index (DXY) is -0.56% with a rallying GBP£ (+0.57% to 1.3152) and EUR€ (+0.77% to 1.1657)
  • Options skew on WTI has turned positive for first time in 6 weeks with call volume is outpacing put volume – WTI is -0.15% to YUSD$72.65/bbl this AM
  • Major cryptocurrencies are selling off again with Bitcoin (BTC) -3.58% to USD$5,884.78, Ethereum (ETH) -5.38% to USD$411.67 and Ripple (XRP) –6.18% to USD$0.430677
  • BTC’s UTC close last night was the first time BTC closed below USD$6,000 since November 12, 2017 and its raising concerns about a technical breakdown in price with the next “support level” at USD$5,400 (November 12, 2017 low)

International Stocks

  • European stocks are advancing this week following news that European Union (EU) leaders agreed to measures to stem the flow of migrants into EU countries: Euro Stoxx 600 +0.80%, FTSE 100 +0.55%, DAX +0.97%, and CAC 40 +1.02%
  • Italian sovereign bonds are rallying with yields on the Italian 10-year -11 basis points to 2.662% on news of the EU migration deal which eases concerns over a potential impasse between Italy and rest of the EU
  • VSTOXX, the European stocks equivalent of the VIX, is at 17.0928 after closing at 18.4191 yesterday
  • Asian stocks bounced back overnight with the Nikkei 225 +0.15%, Hang Seng +1.61% and Hang Seng China Enterprise +1.88%

Cryptos

  • Cryptocurrency wallet Blockchain.com announced that it will be providing an institutional platform for trading and wallet storage called Blockchain Principal Strategies (BPS). The platform intends to provide to institutions, family offices, and individual investors. The new platform will provide over-the-counter (OTC) trading – facilitating larger trade orders

  • A cryptocurrency startup, Reserve, is attempting to establish itself as a “stable” cryptocurrency. The stable coin Reserve, is backed by Peter Thiel, Coinbase and 40 other investors. It will be pegged 1:1 to the USD. The key strategy of Reserve is to use cryptocurrency assets from outside its ecosystem to maintain a peg. Reserve has encountered significant criticism because crypto assets backing Reserve are inherently volatile

  • Over 500 Singaporean businesses have adopted technology from Electrify, which is a new blockchain-based energy platform. Electrify gives customers access to more than one energy provider on a single dashboard where prices can be compared. Electrify uses smart contracts which saves 30% in transaction costs. The annual energy use in Asia is expected to rise from USD$700bn currently to USD$1.6 trillion by 2035

  • Quantamize updated its AI Machine Learning CryptoFolios Monday Morning. The next update will be Monday 07/02/18. Quantamize’s AI Machine Learning 3-Day Crypto trading signals were updated this morning. The next update will be Monday 07/02/2018. Currently 2 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.

Allison Transmission Holdings, Inc. - 12.61% off its 52wkH on 10/31/2017, reports earnings on 07/27/2018

Broadcom Inc. - 9.90% off its 52wkH on 01/00/1900, reports earnings on 09/06/2018

FedEx Corporation - 17.47% off its 52wkH on 01/18/2018, reports earnings on 09/18/2018

Huntsman Corporation - 18.92% off its 52wkH on 01/25/2018, reports earnings on 07/31/2018

Norfolk Southern Corporation - 5.59% off its 52wkH on 06/12/2018, reports earnings on 07/26/2018

Photronics, Inc. - 26.89% off its 52wkH on 11/29/2017, reports earnings on 08/15/2018

Xcerra Corporation - 5.18% 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.

A data breach at Adidas AG (DB: ADS) may have compromised the personal information of millions of customers. Although client information such as contact data, usernames and encrypted passwords may have been accessed, the company does not believe any credit card information was obtained. Shares of Adidas are trading 1.82% higher to €187.35 today.

Deutsche Bank’s (DB:DBK) US based business unit has failed the US Federal Reserve’s stress test, which cited “critical deficiencies” in the company’s capital-planning operations as a cause for concern. Shares of Deutsche Bank are unchanged in today’s trading. Deutsche Bank was the only bank to fail the stress tests, while restrictions were placed on Goldman Sachs Group (GS), Morgan Stanley (MS), and State Street Corp (STT), preventing these firms from increasing capital distributions. Thirty-four other US banks received approval for their capital plans.

GlaxoSmithKline Plc (LSE: GSK) shares are trading 1.51% higher to €15.30 per share, after the company received a buy rating at Goldman Sachs.

Nike Inc (NKE) is up 9.32% to $78.38 pre-market, after the company posted stronger than expected 4Q2018 earnings yesterday and also announced significant revenue growth in the US market.

Novartis (SWX:NOVN) has announced a $5 billion share repurchase. Shares of Novartis are up 0.96% to $73.70 pre-market.

Twenty-First Century Fox (FOXA) shareholders will vote on Walt Disney’s (DIS) $71 billion acquisition bid for the company on July 27th. The DOJ has already approved Disney’s bid, on the condition that the company sells 22 of Fox’s regional sports networks.

Shares of Walgreens Boots Alliance (WBA) are down over 11% this week, which marks the worst performance for a new entrant into the Dow Jones Industrial Average in the past ten years.

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
RPM International Inc. RPM Materials Specialty Chemicals 8.95% 12.12% 10.82%
McCormick & Company, Incorporated MKC Consumer Staples Packaged Foods and Meats 8.40% 8.24% 12.68%
Sirius XM Holdings Inc. SIRI Consumer Discretionary Cable and Satellite 2.56% -4.48% 27.24%
Total System Services, Inc. TSS Information Technology Data Processing and Outsourced Services 2.10% -3.25% 6.55%
ServiceMaster Global Holdings, Inc. SERV Consumer Discretionary Specialized Consumer Services 2.06% 1.11% 16.87%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Starbucks Corporation SBUX Consumer Discretionary Restaurants -2.61% -5.27% -14.35%
Huntsman Corporation HUN Materials Diversified Chemicals -2.43% -4.81% -8.48%
Owens Corning OC Industrials Building Products -1.92% -4.10% -0.44%
Cigna Corporation CI Healthcare Managed Healthcare -1.60% -2.26% 0.21%
FedEx Corporation FDX Industrials Air Freight and Logistics -1.34% -6.25% -9.01%

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 -8.65% 0.85% 91.92%
ImmunoGen, Inc. IMGN Healthcare Biotechnology -5.36% -17.00% -12.35%
ACADIA Pharmaceuticals Inc. ACAD Healthcare Biotechnology -5.04% -7.72% -16.74%
Array BioPharma Inc. ARRY Healthcare Biotechnology -3.98% -12.75% 3.36%
Oil States International, Inc. OIS Energy Oil and Gas Equipment and Services -3.44% -3.44% -8.90%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Global Blood Therapeutics, Inc. GBT Healthcare Biotechnology 6.03% 12.84% 20.58%
Finisar Corporation FNSR Information Technology Communications Equipment 5.85% 2.25% -12.92%
GreenSky, Inc. GSKY Information Technology Data Processing and Outsourced Services 5.37% -12.29% 0.00%
SCANA Corporation SCG Utilities Multi-Utilities 4.65% 4.03% -3.22%
Snap Inc. SNAP Information Technology Application Software 4.52% 1.52% -8.28%

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 6/29/2018 Estimated Earnings Release Date China All-Cap: C
Bestway Global Holding Inc. SEHK:3358 6/30/2018 Estimated Earnings Release Date China All-Cap: C
Huarong Investment Stock Corporation Limited SEHK:2277 6/30/2018 Estimated Earnings Release Date China All-Cap: D
Zinc One Resources Inc. Z 7/2/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: B
Acuity Brands, Inc. AYI 7/2/2018 Earnings Release Date US Large-Cap: C, US Industrials: B
CT Environmental Group Limited SEHK:1363 7/3/2018 Estimated Earnings Release Date China All-Cap: C
Apex Ace Holding Limited SEHK:6036 7/3/2018 Estimated Earnings Release Date China All-Cap: F
Razer Inc. SEHK:1337 7/3/2018 Estimated Earnings Release Date China All-Cap: F
Nissin Foods Company Limited SEHK:1475 7/3/2018 Estimated Earnings Release Date China All-Cap: C
SIG plc SHI 7/4/2018 Estimated Earnings Release Date China All-Cap: A
Healthcare Services Group, Inc. HCSG 7/9/2018 Estimated Earnings Release Date US Large-Cap: D, US Industrials: C
PepsiCo, Inc. PEP 7/10/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: B
MSC Industrial Direct Co., Inc. MSM 7/10/2018 Estimated Earnings Release Date US Large-Cap: B, US Industrials: A
Fastenal Company FAST 7/11/2018 Earnings Release Date US Large-Cap: B, US Industrials: B
Delta Air Lines, Inc. DAL 7/11/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: B
Bank of the Ozarks OZRK 7/11/2018 Estimated Earnings Release Date US Large-Cap: C
Commerce Bancshares, Inc. CBSH 7/12/2018 Earnings Release Date US Large-Cap: B
Cintas Corporation CTAS 7/12/2018 Estimated Earnings Release Date US Large-Cap: A, US Industrials: B
First Horizon National Corporation FHN 7/12/2018 Estimated Earnings Release Date US Large-Cap: C
YUM! Brands, Inc. YUM 7/12/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
JPMorgan Chase & Co. JPM 7/13/2018 Earnings Release Date US Large-Cap: B
The PNC Financial Services Group, Inc. PNC 7/13/2018 Earnings Release Date US Large-Cap: C
Citigroup Inc. C 7/13/2018 Earnings Release Date US Large-Cap: B
Wells Fargo & Company WFC 7/13/2018 Earnings Release Date US Large-Cap: D
First Republic Bank FRC 7/13/2018 Earnings Release Date US Large-Cap: C
Brown & Brown, Inc. BRO 7/15/2018 Estimated Earnings Release Date US Large-Cap: A
Celanese Corporation CE 7/15/2018 Estimated Earnings Release Date US Large-Cap: B
Mattel, Inc. MAT 7/15/2018 Estimated Earnings Release Date US Large-Cap: F, US Consumer Discretionary: F

Source: S&P Capital IQ