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Global Stocks Starting the Week Negative Ahead of US Federal Reserve and Bank of Japan Decisions This Week

Jul 30, 2018

US Stocks                                                                                                                                                                           Start Your Free Trial Today

  • Global stocks are slipping this AM ahead of decisions about interest rates this week from the US Federal Reserve, Bank of Japan, Bank of England and Reserve Bank of India
  • US stocks index futures are pointing to a mixed open in NY with the Dow Jones minis +0.03%, S&P500 minis -0.08% and Nasdaq 100 minis -0.19%
  • The VIX is moving up this morning and is currently at 13.43 after closing at 12.31 last week.
  • Weatherford International (WFT) OTM September 21 Puts, EEM September 2018 OTM Calls, SPY August 3 OTM Calls, and QQQ August 3 OTM Puts are the most heavily traded options contracts in the US pre-market
  • US 10-Year Treasury Bonds are lower with yields up 2.3 basis points to 2.9765%
  • The US Treasury 2s-10s Spread has widened 1.8 basis points to 0.3%
  • WTI Crude is currently down -1.32% to USD$68.69/bbl with the Brent-WTI spread up USD$2.16 to USD$5.7/bbl
  • Gold is currently little changed -0.13% to USD$1222.62/oz

International Markets

  • European stocks are declining following earnings releases that aren’t matching investor high expectations and ahead of major monetary policy decisions from central banks in the US, Japan, UK and India this week
  • Euro Stoxx 600 +0.36%, FTSE 100 +0.54%, DAX +0.56%, and CAC 40 +0.24%
  • Insurance(+0.61%), Travel & Leisure(+0.48%), Automobiles & Parts(+0.23%) stocks are the top performers in the Euro Stoxx 600 today
  • Utilities(-0.92%), Food & Beverage(-0.90%), Real Estate(-0.74%) stocks are the worst performers in the Euro Stoxx 600 today
  • The VSTOXX is up midday and is currently at 12.28
  • German 10-Year Bunds are lower with yields up 3.5 basis points to 0.438%
  • UK 10-Year GILTs are lower with yields up 4.8 basis points to 1.328%
  • Asian stocks closed their trading sessions mixed with Nikkei 225 -0.74%, CSI 300 -0.17%, HSI -0.25% and Hang Seng China Enterprise -0.01%
  • Utilities (-2.15%), health care (-1.83%), and consumer staples stocks (-1.09%) were the worst performers in the Nikkei 225
  • Health care (-2.58%), consumer discretionary (-1.62%), and information technology stocks (-1.52%) were the worst performers in the Hang Seng
  • Japan 10-Year Government Bonds are higher with yields down -2 basis points to 0.102%
  • JGBs 2s-10s Spread has widened 2 basis points to 0.21%

Cryptos

  • LedgerConnect, a financial blockchain app store, is trying to make it easier for financial institutions to use distributed ledger technology.  Using LedgerConnect, financial institutions will have the ability to apply distributed ledger technology to areas like know-your-customer processes, sanctions screening, collateral management, derivatives post-trade processing and reconciliation and market data.
  • Michael Casey, Chairman of the CoinDesk advisory board, published “A Blueprint for Reforming the Crypto Token Market”.  Casey argues for a self-regulating system which will set accepted behavioral norms and business practices.  He believes this will help address perceptions that the token market is riddled with scammers and Wild West cowboys.
  • Misthos is launching its multi-signature cryptocurrency wallet on top of Blockstack’s decentralized application platform to help disrupt the way people are paid.  The wallet is meant to help small teams breakdown the share of income received in Bitcoin (BTC).  Rather than be paid by a salary or contract, persons will be compensated based on social consensus among the team. Misthos collects a 1.49% cut of the payouts.
  • CLS, a globl multi-Forex cash settlement platform, claims to be in the final stages of testing out blockchain payments service for banks.  CLS has been working with IBM on the initiative improve the level of standardization in the global FX markets, as well as reduce costs of the process in banks back-office IT systems.

*Data in Price Return; Source: Stockdio

S&P 500 Sector Performance

*Data in Price Return; Source: Stockdio

Russell 1000 Factor Performance

*Data in Price Return; Source: Stockdio

Top Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

B&G Foods, Inc. - 21.51% off its 52wkH on 12/04/2017, reports earnings on 08/02/2018

Malibu Boats, Inc. - 19.85% off its 52wkH on 06/15/2018, reports earnings on 09/07/2018

PulteGroup, Inc. - 20.11% off its 52wkH on 01/23/2018, reports earnings on 10/24/2018

United Rentals, Inc. - 22.77% off its 52wkH on 03/13/2018, reports earnings on 10/19/2018

Vectrus, Inc. - 24.13% off its 52wkH on 03/12/2018, reports earnings on 08/07/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Alibaba (BABA) is having conversations with China Tower about potential cooperation in cloud computing and the Internet of Things

Apple (AAPL) reports tomorrow with the market expecting US$53.2bn of revenue driven by higher phone prices and increased service revenue.

Daiwa Securities Group (DSEEY) saw 1Q profit fall a touch with retail suffering while the wholesale business delivered gains.  Revenue was higher though net income fell 4.4% to US$167m for the quarter.

Deutsche Bank (DBK DB) is shifting half of its euro clearing volume to Frankfurt from London in a worrying sign for the City of London post-Brexit.  

Diamond Offshore Drilling (DO) delivered 2Q EPS of US$(0.33), 5 cents better than expected though revenue of US$268.9mn missed by US$10.8mn.

GEA (G1A GR) beat 2Q consensus with strong order intake, management sees sales reaching the upper end of guidance though margin will only reach lower end of guidance range.

Heineken (HEIA NA) shares fell 4.61% after reporting results below expectations saying expansion in Brazil ramped up faster than expected, weighing on results.  With double digit volume growth, management expects full year margin will shrink 20 basis points.

IBM (IBM) has launched a new blockchain platform called LedgerConnect with nine banks including Barclays (BCS) and Citi (C).  IBM seeks to be a one stop shop for firms seeking to create blockchain applications.

Lowe’s (LOW) reported 2Q EPS of US$0.72 missing expectations by US$0.01

New India Assurance Co. (NIACL IN) surged after reporting results above expectations with net revenue of 6.35bn rupees up from 4.99bn a year earlier; premiums collected rose 9%.

PetroChina (857 HK) projected first half profit more than doubled with net income up 107-122%, both were in a Shanghai Stock Exchange filing.  The strength in oil prices is driving profits which could b among the company’s highest ever.

Sohu.com (SOHU) reported 2Q EPS of US$(1.27) beating by 22 cents per share.  Revenue came below at US$486mn, US$16.2mn lower than expected. Shares of Sohu.com are trading 9.07% lower, to $27.76 pre-market.

Tencent (700 HK) may team up with BOC Hong Kong and JD Finance to bid on a virtual bank license in Hong Kong.  Ant Financial will apply and seek partners in the future if needed.

WM Morrison (MRW LN) rose as much as 2.3% after UBS upgraded them to BUY citing improvements in earnings and margins.

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
Jefferies Financial Group Inc. JEF Financials Multi-Sector Holdings 7.33% 8.41% -6.53%
Lam Research Corporation LRCX Information Technology Semiconductor Equipment 7.20% 9.97% 3.23%
Aflac Incorporated AFL Financials Life and Health Insurance 4.28% 5.78% 5.51%
Republic Services, Inc. RSG Industrials Environmental and Facilities Services 1.95% 2.69% 7.22%
Waste Management, Inc. WM Industrials Environmental and Facilities Services 1.28% 2.06% 3.88%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Mettler-Toledo International Inc. MTD Healthcare Life Sciences Tools and Services -4.53% -3.70% 1.95%
Ligand Pharmaceuticals Incorporated LGND Healthcare Biotechnology -4.07% -3.20% 7.68%
Fortinet, Inc. FTNT Information Technology Systems Software -4.03% -3.83% 5.41%
S&P Global Inc. SPGI Financials Financial Exchanges and Data -3.49% -4.62% -0.01%
AbbVie Inc. ABBV Healthcare Biotechnology -3.60% -2.75% -2.26%

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
Range Resources Corporation RRC Energy Oil and Gas Exploration and Production -8.94% -8.99% -13.51%
Domo, Inc. DOMO Information Technology Application Software -8.42% -14.62% -36.87%
Groupon, Inc. GRPN Consumer Discretionary Internet and Direct Marketing Retail -7.81% -8.16% 12.56%
CNX Resources Corporation CNX Energy Oil and Gas Exploration and Production -6.76% -6.15% -10.80%
Pandora Media, Inc. P Information Technology Internet Software and Services -6.55% -7.01% -4.06%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Patterson-UTI Energy, Inc. PTEN Energy Oil and Gas Drilling 5.80% 4.82% -26.25%
C&J Energy Services, Inc. CJ Energy Oil and Gas Equipment and Services 4.67% 7.54% -29.70%
EverQuote, Inc. EVER Information Technology Internet Software and Services 3.21% -1.08% 0.00%
Seattle Genetics, Inc. SGEN Healthcare Biotechnology 2.43% 2.88% 36.41%
Agios Pharmaceuticals, Inc. AGIO Healthcare Biotechnology 2.19% 2.55% 52.48%

Source: S&P Capital IQ

Events Calendar

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Company Name Ticker Event Date Event Type Q-Factor Score
Nam Tai Property Inc. NTP 7/30/2018 Earnings Release Date China All-Cap: C
KBR, Inc. KBR 7/30/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
Caterpillar Inc. CAT 7/30/2018 Earnings Release Date US Large-Cap: B, US Industrials: B
Booz Allen Hamilton Holding Corporation BAH 7/30/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
First Data Corporation FDC 7/30/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Eagle Materials Inc. EXP 7/30/2018 Earnings Release Date US Large-Cap: A
Diamond Offshore Drilling, Inc. DO 7/30/2018 Earnings Release Date US Large-Cap: D
Simon Property Group, Inc. SPG 7/30/2018 Earnings Release Date US Large-Cap: C
Affiliated Managers Group, Inc. AMG 7/30/2018 Earnings Release Date US Large-Cap: A
ON Semiconductor Corporation ON 7/30/2018 Earnings Release Date US Large-Cap: A, US Information Technology: A
Loews Corporation L 7/30/2018 Earnings Release Date US Large-Cap: C
Woodward, Inc. WWD 7/30/2018 Earnings Release Date US Large-Cap: C, US Industrials: D
EPR Properties EPR 7/30/2018 Earnings Release Date US Large-Cap: C
Unum Group UNM 7/30/2018 Earnings Release Date US Large-Cap: A
Integrated Device Technology, Inc. IDTI 7/30/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
Taubman Centers, Inc. TCO 7/30/2018 Earnings Release Date US Large-Cap: D
Black Knight, Inc. BKI 7/30/2018 Earnings Release Date US Large-Cap: A, US Information Technology: B
Illumina, Inc. ILMN 7/30/2018 Earnings Release Date US Large-Cap: C
SBA Communications Corporation SBAC 7/30/2018 Earnings Release Date US Large-Cap: F
Nutrisystem, Inc. NTRI 7/30/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
UDR, Inc. UDR 7/30/2018 Earnings Release Date US Large-Cap: C
Range Resources Corporation RRC 7/30/2018 Earnings Release Date US Large-Cap: F
AvalonBay Communities, Inc. AVB 7/30/2018 Earnings Release Date US Large-Cap: C
Brixmor Property Group Inc. BRX 7/30/2018 Earnings Release Date US Large-Cap: F
PotlatchDeltic Corporation PCH 7/30/2018 Earnings Release Date US Large-Cap: C
Texas Roadhouse, Inc. TXRH 7/30/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Sunstone Hotel Investors, Inc. SHO 7/30/2018 Earnings Release Date US Large-Cap: F
Advanced Energy Industries, Inc. AEIS 7/30/2018 Earnings Release Date US Large-Cap: B, US Information Technology: A
CA, Inc. CA 7/30/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: B
McDermott International, Inc. MDR 7/30/2018 Earnings Release Date US Large-Cap: C
Service Corporation International SCI 7/30/2018 Estimated Earnings Release Date US Large-Cap: A, US Consumer Discretionary: C
Oshkosh Corporation OSK 7/30/2018 Earnings Release Date US Large-Cap: C, US Industrials: B
Alexandria Real Estate Equities, Inc. ARE 7/30/2018 Estimated Earnings Release Date US Large-Cap: C
Arconic Inc. ARNC 7/30/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
Boston Properties, Inc. BXP 7/30/2018 Earnings Release Date US Large-Cap: C
Apple Inc. AAPL 7/30/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: A
Akorn, Inc. AKRX 7/30/2018 Estimated Earnings Release Date US Large-Cap: D
Cummins Inc. CMI 7/30/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: B
GGP Inc. GGP 7/30/2018 Estimated Earnings Release Date US Large-Cap: D
Pfizer Inc. PFE 7/30/2018 Estimated Earnings Release Date US Large-Cap: A
Papa John's International, Inc. PZZA 7/30/2018 Estimated Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C

Source: S&P Capital IQ