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Global Stocks are advancing following Fed Chairman Jerome Powell’s Comments on Friday

Aug 27, 2018

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US Stocks

  • Global stocks are starting the last week of August positive after comments by US Fed Chairman Jerome Powell at the Jackson Hole Economic Summit that the Fed will pursue a slow and gradual path for interest rate increases 
  • US stocks index futures are pointing to a positive open in NY with the Dow Jones minis +0.31%, S&P500 minis +0.25% and Nasdaq 100 minis +0.39% 
  • The US S&P 500 and Nasdaq indices closed at all-time highs on Friday 
  • The VIX is little changed this morning and is currently at 12.36 after closing at 11.99 yesterday
  • EEM August 31 OTM Calls & Puts, HYG October 19 & November 2018 Puts, and SPY August 31 & October 19 OTM Puts are the most heavily traded options contracts in the US pre-market 
  • US 10-Year Treasury Bonds are lower with yields up 0.54 basis points to 2.8152%
  • The US Treasury 2s-10s Spread has widened 0.54 basis points to 0.2%
  • WTI Crude is currently up 1.44% to USD$69.82/bbl with the Brent-WTI spread down USD$-1.65 to USD$5.03/bbl
  • Gold is currently little changed -0.15% to USD$1203.59/oz

Stocks Trending in the News

Click name for Q-Factor score and financial data.

  • Amazon (AMZN) has begun to steal shoppers from Trader Joe’s though has yet to disrupt the rest of the sector as feared by many incumbents.  A report in Bloomberg today highlights the initial effects of Amazon’s acquisition of Whole Foods on the sector.  The stock is rated 'Top Buy' in our US Consumer Discretionary Global Top Picks and ‘Attractive’ in our US Large-Cap Global Top Picks
  • Apple (AAPL) will be releasing 3 new iPhone X models with a variety of colors, sizes and features to offer a wide range of pricing.  All phones will maintain the edge-to-edge screens.  Apple is rated ‘Attractive’ in both our US Large-Cap and US Information Technology models.
  • Bayer’s (BAYN GR) blood thinning drug Xarelto did not prevent clots in high-risk patients after leaving the hospital, bad news for a drug that saw US$3.7bn in sales last year.  The stock is rated 'Neutral' in our European Large-Cap Global Top Picks
  • Brilliance China Automotive (1114 HK) confirmed its JV with BMW will be extended until beyond 2028.  Management also said any proceeds from a change of ownership would be shared with shareholders, sending the stock up more than 15%, its biggest move in 8 years.  The stock is rated ‘Top Short’ in our China All-Cap Global Top Picks. 
  • Facebook (FB) and Google (GOOGL), together with other US tech companies, have been lobbying the Trump administration to create a federal digital privacy statute.  The idea is to have a federal law that would overrule California's existing law.  Facebook is rated 'Neutral' in our US Large-Cap model and 'Attractive' in our US Information Technology model. 
  • Guangzhou Auto (2238 HK) reported 1H18 revenue of 36.7bn yuan with EPS of 67 RMB.  2Q results beat estimates after a weal 1Q. Guangzhou is unrated in our Global Top Picks.
  • Metro AG (B4B GR) traded as much as 18% higher as 2 eastern European investors build a stake in the company. The pair is acquiring multiple stakes in the company hoping to trigger a full takeover.  Metro is rated ‘Neutral’ in our European SMID-Cap model.
  • Noble Group’s (NOBL SP) shareholders approved a US$3.5bn restructuring program today as the company seeks to save itself.  The debt for equity plan will see senior creditors gain control of the company. Noble Group is unrated in our Global Top Picks.
  • Novartis (NOVN SW) traded higher after trial results of Ernesto showed it can used on an additional patient group.  It will be usable for patients with acute heart failure in addition to those suffering chronic heart failure.  The stock is rated 'Top Buy' in our European Large-Cap Global Top Picks
  • Sinopec (386 HK) saw improving refining profits and raised its dividends to 0.16 yuan per share when it reported 1H18 results over the weekend.  Net income rose 52% to 42.4bn yuan, its best half year profit ever.   The stock is rated ‘Top Buy’ in our China All-Cap Global Top Picks. 
  • Tesla (TSLA) will remain a public company, CEO Elon Musk has confirmed.  He posted a blog to the company’s web site Friday evening outlining his reason which included significant shareholder discontent with his plans.  Tesla is rated 'Unattractive' in our US Large-Cap and US Consumer Discretionary models.
     

European Stocks

  • European stocks are advancing to start the week on thin volume with the UK market closed for the Summer Bank Holiday 
  • Materials (+1.22%), Tech (+1.1%), and Energy (+0.8%) stocks are the top performers in the S&P 500 today
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 1.21x
  • 76 stocks in the Euro Stoxx 600 are at 4-week highs while 30 stocks are at 4-week lows
  • 26 stocks in the Euro Stoxx 600 are overbought while 14 stocks are oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, is moving little changed this morning and is currently at 13.2 after closing at 13.19 last week
  • EUR€ is currently little changed against the USD$ at 1.1609
  • GBP£ is currently little changed against the USD$ at 1.2843
  • CHF is currently little changed against the USD$ at 1.0168
  • German 10-Year Bunds are lower with yields up 0.5 basis points to 0.35%
  • UK 10-Year GILTs are lower with yields up 0.8 basis points to 1.278%

Asian Stocks

  • Asian stocks started the first trading session of the week in the green following comments by Fed Chairman Jerome Powell that he expects a slow and gradual path for interest rate increases 
  • People’s Bank of China (PBOC) reinstituted a counter-cyclical factor, a daily pricing mechanism used to mitigate a structurally weak Reminibi  
  • The Nikkei 225 finished up +0.88%, the Hang Seng ended up +2.17%, the Hang Seng China Enterprise up +2.5%, and the CSI 300 was +2.44%
  • Nonferrous Metals (+2.08%), Oil & Coal Products (+2.05%), and Electric Appliances (+1.98%) stocks were the top performers among Japanese stocks today
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 4.63x
  • 21 stocks in the Nikkei 225 hit 4-week highs while 7 stocks reached 4-week lows
  • 9 stocks in the Nikkei 225 closed overbought while 5 stocks closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished positive with the advance/decline ratio for the Hang Seng closing at 24x
  • 3 stocks in the Hang Seng hit 4-week highs while 5 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 4 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are higher with yields down -0.4 basis points to 0.097%
  • JGBs 2s-10s Spread has narrowed 0.3 basis points to 0.21%
  • JPY¥ is currently little changed against the USD$ at 111.13

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

Stock Sentiment

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Top Stocks by 7-day News Volume
Name 7 Day News
Volume
7 Day Average
News Buzz
1M EPS Net
Revisions
3M EPS Net
Revisions
1M EPS
% Chg
3M EPS
% Chg
Alphabet Inc 2174 9.14 -24 -24 0.07% 3.94%
Netflix Inc 799 8.57 1 -23 -1.87% -1.95%
Microsoft Corp 753 7.57 26 24 0.13% 6.22%
Morgan Stanley 692 8.86 5 4 0.00% -0.14%
Bank of America Corp 636 6.29 1 -4 0.32% 0.29%

Note: Please see our General FAQs to learn how we define and measure News Volume

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Top Stocks by 7-Day Average News Buzz
Name 7 Day News
Volume
7 Day Average
News Buzz
1M EPS Net
Revisions
3M EPS Net
Revisions
1M EPS
% Chg
3M EPS
% Chg
Wells Fargo & Co 634 9.43 -4 -9 -1.73% -0.79%
Starbucks Corp 178 9.29 -9 -23 1.75% -1.69%
Alphabet Inc 2174 9.14 -24 -24 0.07% 3.94%
International Business Machines Corp 241 9.14 3 0 -0.77% 1.27%
Verizon Communications Inc 105 9.00 -16 -16 -0.41% 0.36%

Note: Please see our General FAQs to learn how we define and measure News Buzz

Implied Volatility Data For Liquid Macro Index ETFs

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ETF 30D IV 30D IV
Percentile
90D IV 90D IV
Percentile
90D/30D IV 90D/30D IV
Percentile
30D IV-
20D HV
30D IV-20D HV
Percentile
90D IV-
60D HV
90D IV-60D HV
Percentile
SPY 9.03 48.21% 10.84 48.81% 1.2 56.55% 2.05 75.4% 2.92 70.24%
QQQ 12.47 29.37% 15.17 48.81% 1.22 90.48% 2.08 64.29% 2.2 57.14%
IWM 10.93 7.94% 12.46 5.56% 1.14 74.21% 1.08 40.87% 1.52 36.51%
FEZ 13.11 61.71% 14.1 62.5% 1.08 45.44% -3.64 12.3% -0.38 34.52%
EEM 17.22 66.27% 18.22 71.83% 1.06 50.99% -2.46 17.06% 0.11 37.1%

Note: Please see our Options FAQs to learn more about Implied Volatility and other advanced options volatility measures

S&P 500 Sector Performance

*Data in Price Return as of Previous Day's EOD, Source: StockDio

Russell 1000 Factor Performance

*Data in Price Return as of Previous Day's EOD, Source: StockDio

Stock Movers From Our US Large-Cap Model

Top Buy Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
COMCAST CORP CMCSA Consumer Discretionary Media 3.31% 2.5% -10.67%
DOMINO'S PIZZA INC DPZ Consumer Discretionary Hotels, Restaurants & Leisure 2.91% 4.43% 47.06%
CBOE GLOBAL MARKETS INC CBOE Financials Capital Markets 2.5% 6.9% -17.41%
BLACKBAUD INC BLKB Information Technology Software 2.38% 4.71% 8.45%
FORTINET INC FTNT Information Technology Software 2.06% 4.96% 59.48%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
PG&E CORP PCG Utilities Electric Utilities -2.65% -5.54% -3.85%
FASTENAL CO FAST Industrials Trading Companies & Distributors -1.45% -0.05% 10.78%
INVESTORS BANCORP INC ISBC Financials Banks -0.85% -0.54% -5.39%
SYNOVUS FINANCIAL CORP SNV Financials Banks -0.61% -0.63% 5.08%
BB&T CORP BBT Financials Banks -0.58% -1.38% 5.71%

Source: S&P Capital IQ, StockDio

Top Short Winners and Losers

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Winners Ticker Sector Industry 1D Return 5D Return YTD
GAP INC GPS Consumer Discretionary Specialty Retail -8.99% -5.35% -11.73%
PTC THERAPEUTICS INC PTCT Health Care Biotechnology -7.85% -2.85% 85.76%
ACACIA COMMUNICATIONS INC ACIA Information Technology Communications Equipment -7.43% 2.08% 4.09%
COGNEX CORP CGNX Information Technology Electronic Equipment, Instruments & Components -2.41% -1.44% -16.94%
CHESAPEAKE ENERGY CORP CHK Energy Oil, Gas & Consumable Fuels -2.38% 5.86% 10.85%
 
Losers Ticker Sector Industry 1D Return 5D Return YTD
AUTODESK INC ADSK Information Technology Software 14.26% 17.21% 38.36%
PORTOLA PHARMACEUTICALS INC PTLA Health Care Biotechnology 8.67% 9.61% -54.87%
GREENSKY INC GSKY Information Technology IT Services 6.64% 6.31% -24.18%
BLOOM ENERGY CORP-REDH BE Industrials Electrical Equipment 5.42% 33.1% 21.22%
ROKU INC ROKU Consumer Discretionary Household Durables 5.14% 12.07% 19.47%

Source: S&P Capital IQ, StockDio

Cryptos

  • According to data released by the Commodity Futures Trading Commission (CTFC) on Friday, shorts in Bitcoin futures are at a record low – dropping to 1,266 contracts from 1,945 contracts almost 3-months ago. 
  • Fundstrat co-founder and lead strategist Tom Less believes the increasing correlation between Bitcoin and emerging markets suggests we could see a “explosive“ price breakout.  Lee’s analysis focuses on the MSCI Emerging Markets ETF (ticker: EEM) and suggests a rally in EEM will support a rally in Bitcoin. 
  • The Commodity Futures Trading Commission (CTFC) won a court order that permits the regulator to ban a crypto trading firm accused of commiting fraud.  The firm under question, NY-based Cabbage Tech Corp, is accused of fraud and misappropriation in connection with purchases and trading of Bitcoin(BTC) and Litecoin (LTC). 
  • Icon and WanChain have rallied over 23% each over the past 24 hours are the two best performing cryptos from the weekend. 
  • The World Bank – Common Wealth Bank of Australia blockchain-backed bond has attracted USD$110mm in funds which has exceeded initial expectations.  The transaction expects to close tomorrow, Tuesday August 28th.  

Cryptocurrencies Today

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

Events Calendar

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Company Name Ticker Event Date Event Type Q-Factor Score
Best Buy Co., Inc. BBY 8/27/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Hewlett Packard Enterprise Company HPE 8/27/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: A
DSW Inc. DSW 8/28/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
Tiffany & Co. TIF 8/28/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Box, Inc. BOX 8/28/2018 Earnings Release Date US Large-Cap: F, US Information Technology: F
H&R Block, Inc. HRB 8/28/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
MuleSoft, Inc. MULE 8/28/2018 Estimated Earnings Release Date US Large-Cap: F, US Information Technology: F
American Eagle Outfitters, Inc. AEO 8/28/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
KLX Inc. KLXI 8/28/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: D
Dycom Industries, Inc. DY 8/28/2018 Earnings Release Date US Large-Cap: D, US Industrials: D
Dick's Sporting Goods, Inc. DKS 8/28/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: D

Source: S&P Capital IQ