morning-quant-ride

Morning Brief

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

Morning Quant Ride

Jul 23, 2018

US Stocks

  • Global stocks are dropping this AM following comments by US President Trump about US Federal Reserve (US Fed) policy, raising questions about the continued independence of the US Fed, coupled with worries about growing trade tensions negatively impacting global growth
  • US stocks index futures are pointing to a negative open in NY with the Dow Jones minis -0.06%, S&P500 minis -0.08% and Nasdaq 100 minis -0.35%
  • This week is a busy week for US stocks as a 1/3 of stocks in the S&P 500 are expected to report 2Q earnings this week
  • The VIX is backing up this morning, currently at 13.36 after closing at last week at 12.86
  • SPY July 27 Calls, XLF August 17 OTM Calls, EEM August 17 OTM Puts, and EFA August 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 2.884%
  • The USD$ Index (DXY) is little changed, down 0.05%, with no notable movers
  • Global oil prices are advancing with WTI 1.14% to USD$69.04/bbl and Brent +1.51% to USD$74.17/bbl on rising US-Iranian tension following tweets by Iranian President Hassan Rouhani and US President Donald Trump

International Stocks

  • European stocks are declining as continued worries about the impact of protectionist policies on global growth is weighing on sentiment with Euro Stoxx 600 -0.32%, FTSE 100 -0.44%, DAX -0.43%, and CAC 40 -0.71%
  • Disappointing earnings from Ryanair (ICE:RY4C) is weighing on travel and leisure stocks
  • Fiat (BIT:FCA) down over 3% this AM following news that its current CEO is stepping down for health reasons 
  • VSTOXX, the European stocks equivalent of the VIX, is currently sitting at 14.7090 after reaching as low as 11.6436 last week
  • Asian stocks finished their trading sessions mixed with Nikkei 225 -1.33%, CSI 300 +0.94%, HSI +0.11% and Hang Seng China Enterprise +0.46%
  • Chinese stocks rallied overnight following news that Beijing regulators are easing their approach to regulating asset management products to balance leveraging against decelerating economic growth
  • Japanese stocks were down on speculation that the Bank of Japan (BOJ) may consider shifting it Quantitative Easing (QE) policy
  • Japanese 10-year yields are +4.9 basis points to 0.074% on BOJ QE speculation
  • Australia 10-year yields are +5.4 basis points to 2.667% in sympathy with Japanese government bonds (JGBs)
  • The Chinese Yuan continues its weakening trajectory, with the Yuan weakening 0.29% this AM to 6.7901, as officials from the Chinese Foreign Ministry continue to insist that Beijing will not use a weaker CNY to stimulate growth in exports

Cryptos

  • Chinese crypto investors are using Bitcoin to buy real estate outside of China. Through the use of real estate startup apps, Chinese investors can buy real estate in California, for example, through Hong Kong brokers that don’t require the same taxes and documentation as other financial assets held abroad
  • Decoin is disrupting the crypto credit card market with its DTEP Exchange & Trading Platform.  The Decoin credit card will operate directly the company’s coin wallet and will permit users to spend their digital currencies wherever and whenever they choose
  • Bgogo, a new digital assets exchange launched by former employees at Microsoft, Google, Facebook, Twitter, etc. will offer a decentralized approach to listing tokens on their exchange.  The platform will use supernodes as the listing authority which will give status holders the right to pick a cryptocurrency to list on the Bgogo trading platform

*Data in Price Return; Source: Stockdio

S&P 500 Sector Performance

*Data in Total Return as of Friday’s EOD, Source: Capital IQ.

Conviction Buy Laggards From Friday We Are Watching Today

Click name for Q-Factor rating and financial data.

KLA-Tencor Corporation - 13.75% off its 52wkH on 03/13/2018, reports earnings on 07/30/2018

Micron Technology, Inc. - 14.91% off its 52wkH on 05/30/2018, reports earnings on 09/28/2018

Patrick Industries, Inc. - 16.79% off its 52wkH on 01/23/2018, reports earnings on 07/26/2018

PulteGroup, Inc. - 11.64% off its 52wkH on 01/23/2018, reports earnings on 07/26/2018

SMART Global Holdings, Inc. - 43.64% off its 52wkH on 01/00/1900, reports earnings on 09/28/2018

Wabash National Corporation - 25.09% off its 52wkH on 01/31/2018, reports earnings on 07/31/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Atos SE (ENXTPA: ATO) has acquired Syntel Inc (SYNT) Inc for $3.4 billion in an all cash deal, in an effort to gain better access to US financial customers

Fiat Chrysler Automobiles (BIT:FCA) Alfredo Altavilla will reportedly step down as head of the company’s European operations, following the company’s decision to appoint Mike Manely as the new CEO

Halliburton (HAL) posted 2Q2018 EPS that was in-line with expectations ($0.58 vs $0.58 projected)

Hasbro Inc (HAS) share are trading higher 8.34% higher to $101.76, after the company significantly beat earnings projections ($0.48 vs $0.28 estimated)

ITC Ltd (NSEI:ITC) shares closed 3.70% higher in today’s trading, following a buy recommendation from independent analyst Kunal Bothra

NetGear International (NTGR) reported 2Q2018 EPS that beat the consensus ($0.57 vs $0.51 forecasted), but provided a 3Q2018 revenue projection that was lower than anticipated ($380 million - $395 million vs $396.81 million)

Philips NV (ENXTAM: PHIA) released 2Q2018 EBITDA that was above estimates (€482 million vs €481.0 million projected), but 2Q2018 comparable sales growth was weaker than forecasted (+4% vs +4.7% anticipated). Shares of Philips NV are down 1.66% to €36.07 in today’s trading

Ryanair Holdings Plc (ISE:RY4C) posted a 20% decline in 1Q2018 profit, with the company citing labor turmoil with trade unions and traffic-control strike cited as the cause of customer wariness

Tesla Inc (TSLA) has reportedly asked suppliers for a partial refund of what the company has spent, in an attempt to reduce costs and become more profitable

United Co Rusal (SEHK: 486) shares traded 14.76% higher today, following reports that the US is considering lifting sanctions against the firm

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
Cintas Corporation CTAS Industrials Diversified Support Services 5.11% 4.02% 30.64%
Kansas City Southern KSU Industrials Railroads 2.40% 4.16% 5.54%
IDEXX Laboratories, Inc. IDXX Healthcare Healthcare Equipment 2.19% 4.19% 58.68%
Moody's Corporation MCO Financials Financial Exchanges and Data 1.68% 1.90% 25.61%
First American Financial Corporation FAF Financials Property and Casualty Insurance 1.68% 5.11% -2.78%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Micron Technology, Inc. MU Information Technology Semiconductors -2.13% -2.36% 4.92%
Danaher Corporation DHR Healthcare Healthcare Equipment -1.85% 2.11% 2.64%
Jones Lang LaSalle Incorporated JLL Real Estate Real Estate Services -1.29% 1.40% 1.99%
AbbVie Inc. ABBV Healthcare Biotechnology -1.05% -7.26% -3.67%
BB&T Corporation BBT Financials Regional Banks -1.15% -1.94% -0.99%

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
Airborne Wireless Network ABWN Telecommunication Services Alternative Carriers -20.00% -33.33% -83.33%
Diamond Offshore Drilling, Inc. DO Energy Oil and Gas Drilling -4.53% -9.48% -10.94%
Teradata Corporation TDC Information Technology IT Consulting and Other Services -3.75% -3.84% 3.01%
Finisar Corporation FNSR Information Technology Communications Equipment -3.08% -6.70% -5.56%
Chesapeake Energy Corporation CHK Energy Oil and Gas Exploration and Production -2.57% -12.33% -13.17%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Tricida, Inc. TCDA Healthcare Pharmaceuticals 3.78% 2.71% 0.00%
AnaptysBio, Inc. ANAB Healthcare Biotechnology 3.73% 6.99% -24.04%
Heron Therapeutics, Inc. HRTX Healthcare Biotechnology 3.31% 0.65% 115.47%
Patterson Companies, Inc. PDCO Healthcare Healthcare Distributors 2.87% 3.14% -34.57%
ImmunoGen, Inc. IMGN Healthcare Biotechnology 2.81% 1.28% 59.91%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right

Company Name Ticker Event Date Event Type Q-Factor Score
Hexcel Corporation HXL 7/22/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
FirstEnergy Corp. FE 7/22/2018 Estimated Earnings Release Date US Large-Cap: C
Alphabet Inc. GOOGL 7/22/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: B
Owens-Illinois, Inc. OI 7/22/2018 Earnings Release Date US Large-Cap: C
Halliburton Company HAL 7/23/2018 Earnings Release Date US Large-Cap: B
Hasbro, Inc. HAS 7/23/2018 Earnings Release Date US Large-Cap: F, US Consumer Discretionary: D
Popular, Inc. BPOP 7/23/2018 Earnings Release Date US Large-Cap: B
Lincoln Electric Holdings, Inc. LECO 7/23/2018 Earnings Release Date US Large-Cap: B, US Industrials: A
Lennox International Inc. LII 7/23/2018 Earnings Release Date US Large-Cap: B, US Industrials: B
Illinois Tool Works Inc. ITW 7/23/2018 Earnings Release Date US Large-Cap: C, US Industrials: B
Whirlpool Corporation WHR 7/23/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Steel Dynamics, Inc. STLD 7/23/2018 Earnings Release Date US Large-Cap: C
Zions Bancorporation ZION 7/23/2018 Earnings Release Date US Large-Cap: B
Brown & Brown, Inc. BRO 7/23/2018 Earnings Release Date US Large-Cap: A
Werner Enterprises, Inc. WERN 7/23/2018 Earnings Release Date US Large-Cap: C, US Industrials: A
American Campus Communities, Inc. ACC 7/23/2018 Earnings Release Date US Large-Cap: C
Cadence Design Systems, Inc. CDNS 7/23/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
TD Ameritrade Holding Corporation AMTD 7/23/2018 Earnings Release Date US Large-Cap: D
Equity LifeStyle Properties, Inc. ELS 7/23/2018 Earnings Release Date US Large-Cap: C
HK Electric Investments and HK Electric Investments Limited SEHK:2638 7/23/2018 Earnings Release Date China All-Cap: B
F.N.B. Corporation FNB 7/23/2018 Earnings Release Date US Large-Cap: B
Biogen Inc. BIIB 7/23/2018 Earnings Release Date US Large-Cap: C
CA, Inc. CA 7/23/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: B
PACCAR Inc PCAR 7/23/2018 Estimated Earnings Release Date US Large-Cap: B, US Industrials: A
T. Rowe Price Group, Inc. TROW 7/23/2018 Estimated Earnings Release Date US Large-Cap: B
Waters Corporation WAT 7/23/2018 Estimated Earnings Release Date US Large-Cap: C
Highwoods Properties, Inc. HIW 7/23/2018 Earnings Release Date US Large-Cap: C
iRobot Corporation IRBT 7/23/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: F
Verizon Communications Inc. VZ 7/23/2018 Earnings Release Date US Large-Cap: A
CoStar Group, Inc. CSGP 7/23/2018 Earnings Release Date US Large-Cap: C, US Industrials: F
NagaCorp Ltd. SEHK:3918 7/23/2018 Earnings Release Date China All-Cap: A
New Oriental Education & Technology Group Inc. EDU 7/23/2018 Earnings Release Date China All-Cap: B
Bright Scholar Education Holdings Limited BEDU 7/24/2018 Earnings Release Date China All-Cap: C
Peabody Energy Corporation BTU 7/24/2018 Earnings Release Date US Large-Cap: C
CIT Group Inc. CIT 7/24/2018 Earnings Release Date US Large-Cap: C
Avery Dennison Corporation AVY 7/24/2018 Earnings Release Date US Large-Cap: C
TransUnion TRU 7/24/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
Medidata Solutions, Inc. MDSO 7/24/2018 Earnings Release Date US Large-Cap: D
Allegheny Technologies Incorporated ATI 7/24/2018 Earnings Release Date US Large-Cap: C
United Technologies Corporation UTX 7/24/2018 Earnings Release Date US Large-Cap: B, US Industrials: C
Quest Diagnostics Incorporated DGX 7/24/2018 Earnings Release Date US Large-Cap: B
Centene Corporation CNC 7/24/2018 Earnings Release Date US Large-Cap: C
Commvault Systems, Inc. CVLT 7/24/2018 Earnings Release Date US Large-Cap: D, US Information Technology: F
The Interpublic Group of Companies, Inc. IPG 7/24/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
Graphic Packaging Holding Company GPK 7/24/2018 Earnings Release Date US Large-Cap: C
BankUnited, Inc. BKU 7/24/2018 Earnings Release Date US Large-Cap: C
The Sherwin-Williams Company SHW 7/24/2018 Earnings Release Date US Large-Cap: C
Harley-Davidson, Inc. HOG 7/24/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: D
Eli Lilly and Company LLY 7/24/2018 Earnings Release Date US Large-Cap: A
Synovus Financial Corp. SNV 7/24/2018 Earnings Release Date US Large-Cap: A
IQVIA Holdings Inc. IQV 7/24/2018 Earnings Release Date US Large-Cap: B
Lockheed Martin Corporation LMT 7/24/2018 Earnings Release Date US Large-Cap: C, US Industrials: B
JetBlue Airways Corporation JBLU 7/24/2018 Earnings Release Date US Large-Cap: D, US Industrials: C
Westinghouse Air Brake Technologies Corporation WAB 7/24/2018 Earnings Release Date US Large-Cap: D, US Industrials: D
Hubbell Incorporated HUBB 7/24/2018 Earnings Release Date US Large-Cap: C, US Industrials: A
Kimberly-Clark Corporation KMB 7/24/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: C
Liberty Property Trust LPT 7/24/2018 Earnings Release Date US Large-Cap: D
Stryker Corporation SYK 7/24/2018 Earnings Release Date US Large-Cap: B
Robert Half International Inc. RHI 7/24/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
Hawaiian Holdings, Inc. HA 7/24/2018 Earnings Release Date US Large-Cap: D, US Industrials: C
Manhattan Associates, Inc. MANH 7/24/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Chipotle Mexican Grill, Inc. CMG 7/24/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
AT&T Inc. T 7/24/2018 Earnings Release Date US Large-Cap: A
Texas Instruments Incorporated TXN 7/24/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
SLM Corporation SLM 7/24/2018 Earnings Release Date US Large-Cap: C
Navient Corporation NAVI 7/24/2018 Earnings Release Date US Large-Cap: C
Equity Residential EQR 7/24/2018 Earnings Release Date US Large-Cap: C
Ameriprise Financial, Inc. AMP 7/24/2018 Earnings Release Date US Large-Cap: C
Carlisle Companies Incorporated CSL 7/24/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
Superior Energy Services, Inc. SPN 7/24/2018 Earnings Release Date US Large-Cap: D
Total System Services, Inc. TSS 7/24/2018 Earnings Release Date US Large-Cap: B, US Information Technology: A
Sterling Bancorp STL 7/24/2018 Earnings Release Date US Large-Cap: B
MKS Instruments, Inc. MKSI 7/24/2018 Earnings Release Date US Large-Cap: B, US Information Technology: A
Inphi Corporation IPHI 7/24/2018 Earnings Release Date US Large-Cap: D, US Information Technology: C
Teradyne, Inc. TER 7/24/2018 Earnings Release Date US Large-Cap: D, US Information Technology: B
Equifax Inc. EFX 7/24/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
PayPal Holdings, Inc. PYPL 7/24/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: B
Freeport-McMoRan Inc. FCX 7/24/2018 Estimated Earnings Release Date US Large-Cap: C
IDEX Corporation IEX 7/24/2018 Estimated Earnings Release Date US Large-Cap: A, US Industrials: B
General Dynamics Corporation GD 7/24/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: B
Hess Corporation HES 7/24/2018 Estimated Earnings Release Date US Large-Cap: F
The Medicines Company MDCO 7/24/2018 Estimated Earnings Release Date US Large-Cap: F
Anthem, Inc. ANTM 7/24/2018 Earnings Release Date US Large-Cap: B
Nasdaq, Inc. NDAQ 7/24/2018 Earnings Release Date US Large-Cap: C
Raymond James Financial, Inc. RJF 7/24/2018 Earnings Release Date US Large-Cap: A
Hutchison Telecommunications Hong Kong Holdings Limited SEHK:215 7/24/2018 Earnings Release Date China All-Cap: C
Xilinx, Inc. XLNX 7/24/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
HCA Healthcare, Inc. HCA 7/24/2018 Estimated Earnings Release Date US Large-Cap: C
ServiceNow, Inc. NOW 7/24/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
Allegiant Travel Company ALGT 7/24/2018 Estimated Earnings Release Date US Large-Cap: D, US Industrials: C
NextEra Energy, Inc. NEE 7/24/2018 Earnings Release Date US Large-Cap: C
ASM Pacific Technology Limited SEHK:522 7/24/2018 Earnings Release Date China All-Cap: B
AIA Group Limited SEHK:1299 7/24/2018 Estimated Earnings Release Date China All-Cap: B
IMAX China Holding, Inc. SEHK:1970 7/24/2018 Earnings Release Date China All-Cap: C
Sempra Energy SRE 7/24/2018 Estimated Earnings Release Date US Large-Cap: D
American Electric Power Company, Inc. AEP 7/24/2018 Estimated Earnings Release Date US Large-Cap: C
Las Vegas Sands Corp. LVS 7/24/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: A
Fang Holdings Limited SFUN 7/24/2018 Earnings Release Date China All-Cap: C