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Global Stocks Selling off as US-Sino Trade Tensions Escalate

Aug 02, 2018

US Stocks                                                                                                                                                                           Start Your Free Trial Today

  • Global stocks are declining this AM after Beijing officials said China will retaliate in response to the US government’s threat to put a 25% tariff rate on USD$200bn in goods from China
  • US stocks index futures are pointing to a negative open in NY with the Dow Jones minis -0.75%, S&P500 minis -0.66% and Nasdaq 100 minis -0.75%
  • The VIX is moving up this morning and is currently at 14.33 after closing at 13.15 yesterday
  • Apple (AAPL) August 3 OTM Calls, SPY August 17 OTM Calls & Puts, EEM August 17 OTM Calls are the most heavily traded options contracts in the US pre-market
  • US 10-Year Treasury Bonds are higher with yields down -2.42 basis points to 2.9822%
  • The US Treasury 2s-10s Spread has narrowed 1.61 basis points to 0.31%
  • WTI Crude is currently down -1.6% to USD$67.66/bbl with the Brent-WTI spread up USD$0.97 to USD$3.69/bbl
  • Gold is currently flat at USD$1215.98/oz

International Stocks

  • European stocks are selling off this morning amidst escalating tensions between US and China over trade
  • Euro Stoxx 600 is currently down -0.89%, FTSE 100 -1.03%, DAX -1.81%, and the CAC 40 -0.92%
  • Basic Resources(-2.98%), Automobiles & Parts(-1.96%), and Banks(-1.78%) stocks are the worst performers in the Euro Stoxx 600 today
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.32x
  • German 10-Year Bunds are higher with yields down -2.4 basis points to 0.454%
  • Asian stocks closed their trading sessions mixed following rumors that the US government is planning to increase tariffs from 10% to 25% on USD$200bn in imports from China
  • Nikkei 225 finished down -1.03%, Hang Seng -2.21%, Hang Seng China Enterprise -2.19%, and the CSI 300 -2.22%
  • Rubber Products(-1.82%), Banks(-0.59%), and Mining(-1.9%) stocks were the top performers among Japanese stocks today
  • 70 stocks in the Nikkei 225 hit 4-week highs while 13 stocks reached 4-week lows
  • 12 stocks in the Hang Seng hit 4-week highs while 6 stocks reached 4-week lows
  • Japan 10-Year Government Bonds are higher with yields down -5 basis points to 0.126%
  • JGBs 2s-10s Spread has widened 1 basis points to 0.23%
  • JPY¥ is currently down -0.188% against the USD$ to 111.52

Cryptos

  • Logos Network, a decentralized payments platform, successfully raised USD$3mm in seed funding.  Logos is hoping to build a quick and scalable P2P payments network on a new blockchain.
  • Japan financials conglomerate SBI Holdings is buying a 12% stake in electronic trading platform developer Clear Markets.  The stake in Clear Markets is part of a strategy by SBI Holdings to build out a crypto derivatives trading business.  
  • The government of Queensland, Australia is giving USD$8.3mm to a crypto start-up as part of the state’s innovation funding initiative.  The start-up’s goal is to increase the number of tourists to Central Queensland through selling travel offers based in different cryptocurrencies.
  • The EU Blockchain Observatory and Forum is warning that the General Data Protection Regulation law that went into effect a little over two months ago could hinder development in blockchain technology.  There is legal ambiguity between blockchain technology and the GDPR law, which seeks to protect individual data rights as well as facilitate the free movement of personal data in the single market.

*Data in Price Return, Source: Stockdio

S&P 500 Sector Performance

Russel 100 Factor Performance

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Alibaba (BABA) and Starbucks (SBUX) are touting their delivery deal in China as a winner for both.  Ele.me, Alibaba’s food delivery unit, needs the boost as it faces still local competition from a number of upstarts including Tencent backed Meituan Dianping.

Apple’s (AAPL) closing price yesterday gave it a market cap just US#27bn shy of US$1 trillion.

AXA (CS FP) is in talks to sell its retirement products division to Ciniven Ltd.  AXA has been seeking to raise funds to help finance its US$15.3bn purchase of XL Group (XL).

Barclays (BARC LN) saw 2Q results that beat estimates with revenue from the securities unit growing 11%.  Their CEO stated they are on track to get their return on equity back above 10% by 2020 while reiterating the intention to pay a 6.5 pence dividend in 2018.

Becton Dickinson (BDX) reported 2Q reported adjusted EPS of US$2.91 versus US$2.86 expected, revenue of US$4.28bn was also above US$4.25bn expected.  management upped full year guidance as well.

BMW AG (BMW GY) affirmed guidance for 2018, bucking the trend of other European car makers, saying results should come equal to the prior year.  2Q results included EU2.75bn ebit, a fall of 6.3% though above consensus of EU2.68b.

Cigna Corp (CI) reiterated its expectations that its takeover of Express Scripts will fuel growth as activist investor Carl Icahn is reported to have taken a stake in the insurer to oppose the deal.  Cigna raised full year guidance after delivering 2Q results above expectations.

Continental AG announced 2Q results that underwhelmed the market with adjusted ebit missing estimates by 2%, revenue missed by 1% while the auto division weakness saw a 5% miss.  New emission rules coming in force in September are fueling 3Q risks according to management.

DowDuPont (DOW) 2Q beat was fueled by a 25% jump in seed sales, revenue grew 17% to US$24.2bn, beating analyst expectations.

Mitsubishi (7211 JP) saw 1Q net income grow 73.5% y/y to 204.4bn yen, a record for them, beating market expectations.  Non-resource sectors are growing with Asian auto business a highlight while energy deliver 28.9bn in profits compared with a 2.8bn loss a year earlier . 

Siemens (SIE GY) announced its biggest overhaul in a long time as they delivered 3Q results with poor results from their industrial unit and a worsening outlook for the power division.  The reorg will see the number of operating divisions drops from 5 to 3 and comes with a pledge to increase revenue growth and a return on sales by 2% in its industrial unit.

Tesla (TSLA) 2Q cash burn of US$739mn was much better than the US$900mn expected while stating Model 3 production will almost double in 3Q compared with 2Q.  The positive results caused a number of analysts to up their rating on the stock.

Trip Advisor (TRIP) beat expectations with 2Q EPS of 41 cents coming above 40 cents estimate.  2Q revenue of US$433mn was in line with 435mn consensus.

Wynn Resorts Macau (1128 HK) 2Q results came short of expectations wiht total revenue of US$1.61bn trailing US$1.67bn expected.  EPS of US$1.53 was well below consensus of US$1.92.

Cryptocurrencies Today

 

Events Calendar

On Mobile/Tablet scroll to the right

Company Name Ticker Event Date Event Type Q-Factor Score
OMV Petrom S.A. SNP 8/2/2018 Earnings Release Date China All-Cap: A
51job, Inc. JOBS 8/2/2018 Earnings Release Date China All-Cap: A
NRG Energy, Inc. NRG 8/2/2018 Earnings Release Date US Large-Cap: D
Aetna Inc. AET 8/2/2018 Earnings Release Date US Large-Cap: C
MSCI Inc. MSCI 8/2/2018 Earnings Release Date US Large-Cap: B
PBF Energy Inc. PBF 8/2/2018 Earnings Release Date US Large-Cap: F
Cigna Corporation CI 8/2/2018 Earnings Release Date US Large-Cap: B
CNX Resources Corporation CNX 8/2/2018 Earnings Release Date US Large-Cap: F
CBRE Group, Inc. CBRE 8/2/2018 Earnings Release Date US Large-Cap: C
Sealed Air Corporation SEE 8/2/2018 Earnings Release Date US Large-Cap: C
Duke Energy Corporation DUK 8/2/2018 Earnings Release Date US Large-Cap: C
Wayfair Inc. W 8/2/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: D
DowDuPont Inc. DWDP 8/2/2018 Earnings Release Date US Large-Cap: B
Becton, Dickinson and Company BDX 8/2/2018 Earnings Release Date US Large-Cap: A
Global Payments Inc. GPN 8/2/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Teleflex Incorporated TFX 8/2/2018 Earnings Release Date US Large-Cap: B
Syneos Health, Inc. SYNH 8/2/2018 Earnings Release Date US Large-Cap: C
EPAM Systems, Inc. EPAM 8/2/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
CDW Corporation CDW 8/2/2018 Earnings Release Date US Large-Cap: A, US Information Technology: B
HollyFrontier Corporation HFC 8/2/2018 Earnings Release Date US Large-Cap: D
Regeneron Pharmaceuticals, Inc. REGN 8/2/2018 Earnings Release Date US Large-Cap: B
Intercontinental Exchange, Inc. ICE 8/2/2018 Earnings Release Date US Large-Cap: A
TreeHouse Foods, Inc. THS 8/2/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: C
Zoetis Inc. ZTS 8/2/2018 Earnings Release Date US Large-Cap: A
WestRock Company WRK 8/2/2018 Earnings Release Date US Large-Cap: A