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Morning Brief

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Morning Quant Ride

Jul 10, 2018

US Stocks                                                                                                                                                                                                        Start Your Free Trial Today

 

  • Global stocks are positive again this morning as investor focus shifts to 2Q earnings which are expected to be the strongest in several quarters.  Click here to see Quantamize Blog from May 18 discussing S&P 500 valuations and earnings growth.
  • US stocks index futures are advancing ahead of the NY open with Dow Jones minis +0.28%, S&P500 minis +0.22% and Nasdaq 100 minis +0.29%
  • The VIX is currently at 12.36 after reaching as high as 15.45 last Thursday
  • IWM OTM August 17 Puts, Lending Club (LC) OTM January 2019 OTM Puts and EWZ August 17 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 2.867%
  • Global sovereign bonds selling off with the risk-on feel in global markets.  Notable movers included UK 10-year GILTyield +4.3 basis points to 1.294%, German 10-year bund yield +2.3 basis points to 0.320%, and Australia 10-year yield +2.3 basis points to 2.631%
  • Mixed economic data releases for the UK economy have traders now betting that the Bank of England (BOE) will raise rates and is contributing to the sell-off in UK Gilts
  • The USD$ Index (DXY) is +0.32% with a weakening EUR€ (-0.37% to 1.1708) and JPY¥ (-0.37% to 111.26) driving the positive move in the greenback
  • Global oil prices are rallying again this morning with WTI +0.54% to USD$74.23/bbl and Brent +1.28% to USD$79.06/bbl on expectations that US crude stockpiles will have contracted for the week ending July 6 (data released tomorrow)

International Stocks

  • European stocks are advancing on light volume with the Euro Stoxx 600 +0.51%, FTSE 100 +0.16%, DAX +0.65%, and CAC 40 +0.67%
  • Market breadth in Europe is slightly positive with the advance/decline ratio for the Euro Stoxx 600 currently at 2.07
  • VSTOXX, the European stocks equivalent of the VIX, is at 13.3061 after closing at 14.0711 yesterday; it traded as high as 19.5604 last week
  • Asian stocks closed up for the third day in a row with the Nikkei 225 +0.66%,  CSI 300 +0.24%, HSI -0.02% and Hang Seng China Enterprise +0.53%
  • Chinese and Hong Kong stocks fluctuated through most of their training session with tech and materials stocks leading the advance

Cryptos

  • MyEtherWallet (MEW), has suffered a serious security issue for the second time this year after a VPN service was compromised for five hours. MyEtherWallet is used for storing and sending cryptocurrencies. The service warned users that those who utilize Hola, a free VPN plug-in, may have been caught in a malicious attack to steal cryptos. This intrusion underlines the risks associated with free wallet plug-ins (see Quantamize Crypto QuantShot on Securing & Storing Cryptocurrencies from 5/24/18 & 6/3/18).
  • Israeli cryptocurrency trading startup, Bancor, said that criminals have stolen USD$13.5mm, most of which is Ether. The company was able to successfully freeze an additional USD$10mm of its own Bancor token, limiting the damange. The Tel Aviv-based firm raised USD$153mm in an ICO last year and the network automatically prices and trades any cryptocurrency that wants to be listed
  • The London School of Economics (LSE) will be offering a course called “Cryptocurrency Investment and Disruption”. The six-week course will begin in August and will provide students with practical knowledge on cryptos as well as the theoretical thought leadership for which LSE is known for. Students will learn about exchanges, ICO analytics and the use of cryptocurrency wallets
  • Fan Wenzhong, head of the international department of the China Banking and Insurance Regulatory Commission, said that “we all think blockchain is an innovation with significant meaning – correct. But we shouldn’t mythologize blockchain”. Beijing is taking the lead on blockchain technologies but is negative on cryptocurrencies and has shut down 88 crypto exchanges due to the potential risk they pose to the financial system.

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

S&P 500 Sector Performance

Data in Total Return as of Previous Day's EOD, Source: S&P Capital IQ

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

Broadcom Inc. - 8.97% off its 52wkH on 01/00/1900, reports earnings on 09/06/2018

Darden Restaurants, Inc. - 0.90% off its 52wkH on 07/06/2018, reports earnings on 09/25/2018

Dollar General Corporation - 7.02% off its 52wkH on 01/29/2018, reports earnings on 08/24/2018

Generac Holdings Inc. - 0.20% off its 52wkH on 11/01/2017, reports earnings on 08/02/2018

Kohl's Corporation - 11.09% off its 52wkH on 06/12/2018, reports earnings on 08/21/2018

Tyson Foods, Inc. - 21.29% off its 52wkH on 12/04/2017, reports earnings on 08/06/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

  • Biogen (BIIB) has been downgraded from buy to a neutral rating at Baird, with a price target set at $323. Shares of Biogen are trading with a $349 handle, down 1.41% before the open
  • Carnival Cruise Lines (CCL) shares are trading 2.02% lower to $56.77 pre-market, after Goldman Sachs warned the company could be facing headwinds in 2018 from rising fuel and FX costs
  • Chipotle Mexican Grill (CMG) has been downgraded to underperform from a neutral rating at Mizuho. Chipotle’s stock is down 1.55% to $456.72 before the open
  • eBay (EBAY) is down 1.27% to $37.43 pre-market, after being downgraded to hold from a buy rating at SunTrust Robinson Humphrey
  • Pepsi Co (PEP) shares are trading 2.26% higher to $110.20 pre-market, after the company reported 2Q2018 EPS that was higher than expected ($1.61 vs $1.52 projected)
  • Twenty-First Century Fox Inc. (FOXA) is preparing a $33.1 billion bid for Sky PLC, which would rival the bid from Comcast Corp (CMCSA)
  • United Rental Inc (URI) is up 1.55% to $157.51 before the open, after the company announced that it will be acquiring BakerCorp International Holdings for $715 million

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
Raymond James Financial, Inc. RJF Financials Investment Banking and Brokerage 3.02% 3.87% 3.46%
FedEx Corporation FDX Industrials Air Freight and Logistics 2.92% 3.22% -5.85%
KAR Auction Services, Inc. KAR Industrials Diversified Support Services 2.83% 5.54% 14.23%
Anthem, Inc. ANTM Healthcare Managed Healthcare 2.70% 4.17% 10.52%
BB&T Corporation BBT Financials Regional Banks 2.68% 4.16% 5.75%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
American Electric Power Company, Inc. AEP Utilities Electric Utilities -3.76% -2.31% -0.55%
WEC Energy Group, Inc. WEC Utilities Multi-Utilities -3.58% -1.76% -0.96%
UGI Corporation UGI Utilities Gas Utilities -2.89% -0.81% 0.58%
Exelon Corporation EXC Utilities Electric Utilities -2.62% -2.04% -1.60%
Church & Dwight Co., Inc. CHD Consumer Staples Household Products -2.21% 0.32% 0.55%

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 -11.18% -11.04% -6.05%
ACADIA Pharmaceuticals Inc. ACAD Healthcare Biotechnology -6.40% 1.32% 8.40%
Heron Therapeutics, Inc. HRTX Healthcare Biotechnology -5.63% -2.53% -0.77%
Twitter, Inc. TWTR Information Technology Internet Software and Services -5.38% 0.57% 1.08%
Puma Biotechnology, Inc. PBYI Healthcare Biotechnology -3.26% 0.96% -2.11%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Longfin Corp. LFIN Financials Financial Exchanges and Data 7.59% 33.83% -84.90%
California Resources Corporation CRC Energy Oil and Gas Exploration and Production 5.66% 6.00% 142.80%
Carrizo Oil & Gas, Inc. CRZO Energy Oil and Gas Exploration and Production 5.14% 7.49% 40.23%
Rowan Companies plc RDC Energy Oil and Gas Drilling 4.91% 5.53% 3.64%
Zscaler, Inc. ZS Information Technology Systems Software 4.89% 9.44% 0.00%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right

Source: S&P Capital IQ

Company Name Ticker Event Date Event Type Q-Factor Score
PepsiCo, Inc. PEP 7/10/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: B
Zinc One Resources Inc. Z 7/10/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: B
CT Environmental Group Limited SEHK:1363 7/10/2018 Estimated Earnings Release Date China All-Cap: C
Apex Ace Holding Limited SEHK:6036 7/10/2018 Estimated Earnings Release Date China All-Cap: F
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
Bank of the Ozarks OZRK 7/11/2018 Earnings Release Date US Large-Cap: C
Delta Air Lines, Inc. DAL 7/11/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: B
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
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
PacWest Bancorp PACW 7/15/2018 Estimated Earnings Release Date US Large-Cap: B
The Charles Schwab Corporation SCHW 7/15/2018 Estimated Earnings Release Date US Large-Cap: C
HK Electric Investments and HK Electric Investments Limited SEHK:2638 7/15/2018 Estimated Earnings Release Date China All-Cap: B
Bank of America Corporation BAC 7/16/2018 Earnings Release Date US Large-Cap: C
BlackRock, Inc. BLK 7/16/2018 Earnings Release Date US Large-Cap: A
Netflix, Inc. NFLX 7/16/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
The Progressive Corporation PGR 7/16/2018 Estimated Earnings Release Date US Large-Cap: A
J.B. Hunt Transport Services, Inc. JBHT 7/16/2018 Estimated Earnings Release Date US Large-Cap: B, US Industrials: A
Johnson & Johnson JNJ 7/16/2018 Estimated Earnings Release Date US Large-Cap: C
Omnicom Group Inc. OMC 7/16/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
Altaba Inc. AABA 7/16/2018 Estimated Earnings Release Date US Large-Cap: A, US Information Technology: B
Prologis, Inc. PLD 7/16/2018 Estimated Earnings Release Date US Large-Cap: C
Comerica Incorporated CMA 7/17/2018 Earnings Release Date US Large-Cap: A
UnitedHealth Group Incorporated UNH 7/17/2018 Earnings Release Date US Large-Cap: A
First Horizon National Corporation FHN 7/17/2018 Earnings Release Date US Large-Cap: C
The Goldman Sachs Group, Inc. GS 7/17/2018 Earnings Release Date US Large-Cap: C
Interactive Brokers Group, Inc. IBKR 7/17/2018 Earnings Release Date US Large-Cap: C
CSX Corporation CSX 7/17/2018 Earnings Release Date US Large-Cap: B, US Industrials: C
Hancock Whitney Corporation HBHC 7/17/2018 Earnings Release Date US Large-Cap: A
Fidelity National Financial, Inc. FNF 7/17/2018 Earnings Release Date US Large-Cap: C
Pinnacle Financial Partners, Inc. PNFP 7/17/2018 Earnings Release Date US Large-Cap: C
Mellanox Technologies, Ltd. MLNX 7/17/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Vinda International Holdings Limited SEHK:3331 7/17/2018 Earnings Release Date China All-Cap: C
United Continental Holdings, Inc. UAL 7/17/2018 Estimated Earnings Release Date US Large-Cap: D, US Industrials: C
Dover Corporation DOV 7/17/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: C
eBay Inc. EBAY 7/17/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: B
Kinder Morgan, Inc. KMI 7/17/2018 Estimated Earnings Release Date US Large-Cap: B
Medidata Solutions, Inc. MDSO 7/17/2018 Estimated Earnings Release Date US Large-Cap: D
MGIC Investment Corporation MTG 7/17/2018 Estimated Earnings Release Date US Large-Cap: B
Skechers U.S.A., Inc. SKX 7/17/2018 Estimated Earnings Release Date US Large-Cap: D, US Consumer Discretionary: F
Tyler Technologies, Inc. TYL 7/17/2018 Estimated Earnings Release Date US Large-Cap: A, US Information Technology: B
Umpqua Holdings Corporation UMPQ 7/17/2018 Earnings Release Date US Large-Cap: C
SL Green Realty Corp. SLG 7/17/2018 Earnings Release Date US Large-Cap: C
Morgan Stanley MS 7/18/2018 Earnings Release Date US Large-Cap: C
W.W. Grainger, Inc. GWW 7/18/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
Textron Inc. TXT 7/18/2018 Earnings Release Date US Large-Cap: B, US Industrials: C
Abbott Laboratories ABT 7/18/2018 Earnings Release Date US Large-Cap: C
U.S. Bancorp USB 7/18/2018 Earnings Release Date US Large-Cap: B
M&T Bank Corporation MTB 7/18/2018 Earnings Release Date US Large-Cap: A
Northern Trust Corporation NTRS 7/18/2018 Earnings Release Date US Large-Cap: B
Texas Capital Bancshares, Inc. TCBI 7/18/2018 Earnings Release Date US Large-Cap: D
International Business Machines Corporation IBM 7/18/2018 Earnings Release Date US Large-Cap: C, US Information Technology: A
PTC Inc. PTC 7/18/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Alcoa Corporation AA 7/18/2018 Earnings Release Date US Large-Cap: C
Crown Castle International Corp. (REIT) CCI 7/18/2018 Earnings Release Date US Large-Cap: D
United Rentals, Inc. URI 7/18/2018 Earnings Release Date US Large-Cap: B, US Industrials: A
Crown Holdings, Inc. CCK 7/18/2018 Earnings Release Date US Large-Cap: C
Alliance Data Systems Corporation ADS 7/18/2018 Estimated Earnings Release Date US Large-Cap: B, US Information Technology: A
Black Knight, Inc. BKI 7/18/2018 Estimated Earnings Release Date US Large-Cap: A, US Information Technology: B
Discover Financial Services DFS 7/18/2018 Estimated Earnings Release Date US Large-Cap: B
Intuitive Surgical, Inc. ISRG 7/18/2018 Estimated Earnings Release Date US Large-Cap: B
Pool Corporation POOL 7/18/2018 Estimated Earnings Release Date US Large-Cap: A, US Consumer Discretionary: B
Signature Bank SBNY 7/18/2018 Estimated Earnings Release Date US Large-Cap: C
SLM Corporation SLM 7/18/2018 Estimated Earnings Release Date US Large-Cap: C
Sarepta Therapeutics, Inc. SRPT 7/18/2018 Estimated Earnings Release Date US Large-Cap: D
T-Mobile US, Inc. TMUS 7/18/2018 Estimated Earnings Release Date US Large-Cap: B
Philip Morris International Inc. PM 7/18/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: C
Union Pacific Corporation UNP 7/18/2018 Earnings Release Date US Large-Cap: B, US Industrials: C
CK Infrastructure Holdings Limited SEHK:1038 7/18/2018 Estimated Earnings Release Date China All-Cap: C
Wintrust Financial Corporation WTFC 7/18/2018 Earnings Release Date US Large-Cap: B
The Travelers Companies, Inc. TRV 7/19/2018 Earnings Release Date US Large-Cap: C
Fifth Third Bancorp FITB 7/19/2018 Earnings Release Date US Large-Cap: C
Webster Financial Corporation WBS 7/19/2018 Earnings Release Date US Large-Cap: C
The Bank of New York Mellon Corporation BK 7/19/2018 Earnings Release Date US Large-Cap: C
Danaher Corporation DHR 7/19/2018 Earnings Release Date US Large-Cap: A
BB&T Corporation BBT 7/19/2018 Earnings Release Date US Large-Cap: A
East West Bancorp, Inc. EWBC 7/19/2018 Earnings Release Date US Large-Cap: C
KeyCorp KEY 7/19/2018 Earnings Release Date US Large-Cap: B
The Blackstone Group L.P. BX 7/19/2018 Earnings Release Date US Large-Cap: D
Snap-on Incorporated SNA 7/19/2018 Earnings Release Date US Large-Cap: B, US Industrials: B
RPM International Inc. RPM 7/19/2018 Earnings Release Date US Large-Cap: A
Domino's Pizza, Inc. DPZ 7/19/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: A
Genuine Parts Company GPC 7/19/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
Nucor Corporation NUE 7/19/2018 Earnings Release Date US Large-Cap: C
PPG Industries, Inc. PPG 7/19/2018 Earnings Release Date US Large-Cap: C
People's United Financial, Inc. PBCT 7/19/2018 Earnings Release Date US Large-Cap: B
Capital One Financial Corporation COF 7/19/2018 Earnings Release Date US Large-Cap: C
Celanese Corporation CE 7/19/2018 Earnings Release Date US Large-Cap: B
Skyworks Solutions, Inc. SWKS 7/19/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
Associated Banc-Corp ASB 7/19/2018 Earnings Release Date US Large-Cap: C
E*TRADE Financial Corporation ETFC 7/19/2018 Earnings Release Date US Large-Cap: B
Western Alliance Bancorporation WAL 7/19/2018 Earnings Release Date US Large-Cap: B
Microsoft Corporation MSFT 7/19/2018 Earnings Release Date US Large-Cap: A, US Information Technology: B
Equifax Inc. EFX 7/19/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: C
Illumina, Inc. ILMN 7/19/2018 Estimated Earnings Release Date US Large-Cap: C
Lithia Motors, Inc. LAD 7/19/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
Lamb Weston Holdings, Inc. LW 7/19/2018 Estimated Earnings Release Date US Large-Cap: A, US Consumer Staples: B
Moody's Corporation MCO 7/19/2018 Estimated Earnings Release Date US Large-Cap: B
NVR, Inc. NVR 7/19/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
PayPal Holdings, Inc. PYPL 7/19/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: B
Synchrony Financial SYF 7/19/2018 Estimated Earnings Release Date US Large-Cap: D
TCF Financial Corporation TCF 7/19/2018 Estimated Earnings Release Date US Large-Cap: C
Marriott Vacations Worldwide Corporation VAC 7/19/2018 Estimated Earnings Release Date US Large-Cap: A, US Consumer Discretionary: B
Watsco, Inc. WSO 7/19/2018 Estimated Earnings Release Date US Large-Cap: B, US Industrials: B
Woodward, Inc. WWD 7/19/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: D
Bright Scholar Education Holdings Limited BEDU 7/19/2018 Estimated Earnings Release Date China All-Cap: C
LaSalle Hotel Properties LHO 7/19/2018 Estimated Earnings Release Date US Large-Cap: F
State Street Corporation STT 7/20/2018 Earnings Release Date US Large-Cap: C
Baker Hughes, a GE company BHGE 7/20/2018 Earnings Release Date US Large-Cap: D
Schlumberger Limited SLB 7/20/2018 Earnings Release Date US Large-Cap: C
Citizens Financial Group, Inc. CFG 7/20/2018 Earnings Release Date US Large-Cap: B
General Electric Company GE 7/20/2018 Earnings Release Date US Large-Cap: D, US Industrials: C
SunTrust Banks, Inc. STI 7/20/2018 Earnings Release Date US Large-Cap: B
Stanley Black & Decker, Inc. SWK 7/20/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
ManpowerGroup Inc. MAN 7/20/2018 Earnings Release Date US Large-Cap: B, US Industrials: A
V.F. Corporation VFC 7/20/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
Kansas City Southern KSU 7/20/2018 Earnings Release Date US Large-Cap: B, US Industrials: C
IBERIABANK Corporation IBKC 7/20/2018 Earnings Release Date US Large-Cap: C
Honeywell International Inc. HON 7/20/2018 Earnings Release Date US Large-Cap: B, US Industrials: C
Cleveland-Cliffs Inc. CLF 7/20/2018 Earnings Release Date US Large-Cap: D
Gentex Corporation GNTX 7/20/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: A
Regions Financial Corporation RF 7/20/2018 Earnings Release Date US Large-Cap: B
Hexcel Corporation HXL 7/22/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
Exact Sciences Corporation EXAS 7/22/2018 Estimated Earnings Release Date US Large-Cap: F
FirstEnergy Corp. FE 7/22/2018 Estimated Earnings Release Date US Large-Cap: C
Macerich Company MAC 7/22/2018 Estimated Earnings Release Date US Large-Cap: F
McDonald's Corporation MCD 7/22/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B