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Morning Brief

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Morning Quant Ride

Jul 24, 2018

US Stocks                                                                                                                                                                                                        Start Your Free Trial Today

  • Global stocks are advancing this AM following positive earnings results out of the US and Europe combined with the announcement of economic stimulative policies in China
  • US stocks index futures are pointing to a positive open in NY with the Dow Jones minis +0.33%, S&P500 minis +0.19% and Nasdaq 100 minis +0.13%
  • 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 declining up this morning, currently at 12.23 after reaching as high as 13.55 yesterday
  • General Electric (GE) September OTM Puts, XLF August 17 OTM Calls, Bank of America (BAC) January 2019 and 2020 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 2.950%
  • Italian 10-year yields are +5.8 basis points to 2.690% on limited news.  During a Monday interview with the Washington Post, Giovanni Tria stated that welfare spending will be made in the context of the planned deficit
  • Australia 10-year yields are +4.9 basis points to 2.716% as investors continue to worry about the impact of rising trade tensions on the Aussie economy
  • Canada 10-year yields are +4.8 basis points to 2.219% in sympathy with Aussie bonds
  • The USD$ Index (DXY) is little changed, down -0.13%, with no notable movers

International Stocks

  • European stocks are advancing this morning as positive earnings results are boosting investor sentiment with the Euro Stoxx 600 +0.83%, FTSE 100 +0.79%, DAX +1.24%, and CAC 40 +0.83%
  • Investor sentiment is overwhelming positive among European stocks with 487 of the 600 stocks in the Euro Stoxx 600 positive
  • VSTOXX, the European stocks equivalent of the VIX, is currently sitting at 12.9513  after closing at 14.1892 yesterday
  • Asian stocks finished their trading sessions positive after Beijing officials announced the need for proactive fiscal policy with the introduction of several stimulative initiatives including a tax cut of USD$9.6bn to companies with R&D expenditures: Nikkei 225 +0.51%, CSI 300 +1.59%, HSI +1.44% and Hang Seng China Enterprise +2.26%

Cryptos

  • Google announces plans to partner with Digital Asset and BlockApps to deploy a blockchain technology to help clients using their fintech and cloud service solutions. 
  • BitFunder operator Jon Montroll pleads guilty to federal charges of obstruction of justice and securities fraud.  BitFunder permitted users to sell virtual shares of companies for Bitcoins.
  • A study by the Bank of Canada finds that double spending is an “unrealistic outcome” of Proof of Work (PoW) protocol.  The Bank of Canada attempts to model the behavior of honest and dishonest miners in order to test the efficacy of the protocol.  The study concludes the digital ledger technology seeks to make users within the system responsible for maintaining/guarding the 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

Top Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

Louisiana-Pacific Corporation - 15.74% off its 52wkH on 04/17/2018, reports earnings on 08/07/2018

Micron Technology, Inc. - 16.04% off its 52wkH on 05/30/2018, reports earnings on 09/28/2018

MKS Instruments, Inc. - 21.69% off its 52wkH on 03/12/2018, reports earnings on 07/24/2018

ON Semiconductor Corporation - 12.25% off its 52wkH on 03/13/2018, reports earnings on 07/30/2018

United Rentals, Inc. - 21.72% off its 52wkH on 03/13/2018, reports earnings on 10/19/2018

Versum Materials, Inc. - 10.97% off its 52wkH on 11/08/2017, reports earnings on 08/07/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

  • AMS (AM SW), supplier if Apple components, surged after giving better than expected 3Q guidance that eased concerns despite reporting disappointing 2Q results.
  • Credit Agricole (ACA FP) may buy up tp 10% of Italian lender Credito Valtellinese as it seeks to expand its footprint is Italy where it already has extensive business.
  • Eli Lilly (LLY) reported 2Q revenue growth of 9% and announced an IPO of its animal health unit Elanco.  Eli will focus on solely human drugs once the spinoff is complete.
  • Google (GOOGL) reported 2Q results that very strong despite the clouds of European regulatory actions.  Revenue of US$26.24bn cam well above the US$25.55bn expected by the Street.  Google does not expect to alter its Android strategy despite the EU fines.
  • Mitsubishi Motors (7211 JP) reported 1Q results well above the most bullish estimates, with results jumping 27% y/y.
  • Norsk Hydro ASA (NHY NO) shares rose on tight aluminum supplies even after posting results that fell short of expectations.  Norsk CEO expects a deficit in supply to exist throughout 2018 supporting prices as it reported prices roses 15% for the quarter.
  • PayPal (PYPL) shares traded higher on news that the hedge fund Third Point took a stake in the company during 2Q citing multiple growth drivers it sees for PayPal in the coming years.
  • Peugot’s (UG FP) turnaround continues as it posted a 48% jump in recurring profit of US$3.5bn in the first half of the year on strong cost cutting at their acquired Opel and Vauxhall units
  • Sinopec (386 HK) post a 50% jumped in profit in the first half of the year to about US$6bn citing strong international oil prices and a significant improvement in upstream profitability.
  • UBS (UBSG SW) reported 2Q results that beat expectations for the second quarter in a row.  The wealth management unit delivered profits above market expectations as did the investment bank on the back of strong equities and F/X trading performance.
  • Walmart India, 100% owned by Walmart (WMT), intends to open 50 Best Price stores in India, adding to the 21 they already operate.  These stores will be joined by additional fulfilment centers as Walmart cites India as key to its growth plans.

Cryptocurrencies Today

*Source: Stockdio

Stock Movers

Top Buy Winners and Losers

On Mobile/Tablet scroll to the right

Winners  Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Broadcom Inc. AVGO Information Technology Semiconductors 3.04% 3.80% -15.64%
Union Pacific Corporation UNP Industrials Railroads 2.43% 2.55% 8.02%
Burlington Stores, Inc. BURL Consumer Discretionary Apparel Retail 2.17% 2.38% 28.43%
Total System Services, Inc. TSS Information Technology Data Processing and Outsourced Services 1.93% 1.92% 15.44%
Danaher Corporation DHR Healthcare Healthcare Equipment 1.83% 4.41% 11.12%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Louisiana-Pacific Corporation LPX Materials Forest Products -1.68% -4.19% -3.45%
Lam Research Corporation LRCX Information Technology Semiconductor Equipment -1.67% -3.57% 1.15%
Five Below, Inc. FIVE Consumer Discretionary Specialty Stores -1.65% -5.22% 3.61%
Zoetis Inc. ZTS Healthcare Pharmaceuticals -1.42% -2.10% -1.31%
Cable One, Inc. CABO Consumer Discretionary Cable and Satellite -1.53% -1.68% 0.14%

Source: S&P Capital IQ

Top 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% 0.00% -83.33%
Patterson-UTI Energy, Inc. PTEN Energy Oil and Gas Drilling -5.25% -6.24% -10.69%
Sangamo Therapeutics, Inc. SGMO Healthcare Biotechnology -4.64% -4.64% 1.41%
C&J Energy Services, Inc. CJ Energy Oil and Gas Equipment and Services -3.83% -4.13% -9.45%
Overstock.com, Inc. OSTK Consumer Discretionary Internet and Direct Marketing Retail -3.35% -6.02% 11.44%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Tenet Healthcare Corporation THC Healthcare Healthcare Facilities 7.78% 9.46% 149.60%
Pivotal Software, Inc. PVTL Information Technology Application Software 5.47% 2.88% 0.00%
Penumbra, Inc. PEN Healthcare Healthcare Equipment 4.23% 2.47% 52.02%
MB Financial, Inc. MBFI Financials Regional Banks 4.19% -0.31% 9.03%
Portola Pharmaceuticals, Inc. PTLA Healthcare Biotechnology 4.11% 3.69% -14.59%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right

Company Name Ticker Event Date Event Type Q-Factor Score
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

Source: S&P Capital IQ