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Morning Brief

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Morning Quant Ride

Jun 28, 2018

US Stocks                                                                                                                                                                                                       Start Your Free Trial Today

  • Global stocks are mixed this AM with European stocks declining and US stocks index futures positive
  • US stocks index futures are advancing with the Dow Jones minis +0.08%%, S&P500 minis +0.13% and Nasdaq 100 minis +0.11%
  • The VIX is currently at 17.49 after closing at 17.91 yesterday
  • Netflix (NFLX) announces that will look to India for its next 100 million subscribers
  • SPY June 29 OTM Calls, VXX July 20 OTM Calls, and QQQ June 29 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 2.829%
  • The USD$ Index (DXY) is -0.14% with weakness in GBP£ (-0.24% to 1.3082) offset by strength in EUR€ (+0.21% to 1.1578) and ZAR (+0.18% to 13.83)
  • Emerging markets currencies are down across the board this AM with BRL -1.53% to 3.8610, MYR -0.31% to 4.0425, INR -0.23% to 68.7925, IDR -1.49% to 14.394  on expectations for a strong USD$ for the rest of CY2018 – UUP is +4.62% YTD
  • Options skew on WTI has turned positive for first time in 6 weeks with call volume is outpacing put volume – WTI is -0.15% to YUSD$72.65/bbl this AM
  • Major cryptocurrencies are declining with Bitcoin (BTC) -0.19% to USD$6,108.52, Ethereum (ETH) -0.60% to USD$434.50 and Ripple (XRP) –0.88% to USD$0.459509

International Stocks

  • European stocks are declining this morning with the Euro Stoxx -0.66%, FTSE 100 -0.23%, DAX -0.98% and CAC 40 -0.52% as investors try to make sense of conflicting signals about how the White House plans to approach Sino-US trade negoatiations
  • Industrials and services stocks are the biggest laggards in European stock markets
  • VSTOXX, the European stocks equivalent of the VIX, is up to 18.2614 after finishing last week at 14.2065
  • US-China trade tensions continues to impact investor sentiment in Asian markets as Asian stocks finished their trading session mixed with the Nikkei 225 -0.01%, Hang Seng +0.50% and Hang Seng China Enterprise -0.10%

Cryptos 

  • Japan’s social messaging app LINE plans to launch a cryptocurrency exchange offering trading for up to 30 cryptocurrencies. The exchange is planned to open next month. The company currently has 200mm monthly users and will offer a crypto-to-crypto trading platform
  • Coinbase will be adding GBP£ support to provide withdrawals and deposit capabilities or UK users. Before this addition, UK users have had to withdraw euros from Coinbase and use mobile banking solutions such as Revolut
  • The China Banking Regulatory Commission (CBRC) is advocating that domestic regulators should issue licenses for cryptocurrency activities. The CBRC write a paper titled "The Study of Development and Regulations on Distributed Ledger Accounts, Blockchain and Digital Currency". The paper claimed that "Currently, any capital transaction that relates to distributed ledger accounts, blockchain, cryptocurrency and its derivatives, ICOs and exchange operations should all be regarded as financial services. Therefore, they must be put under relevant financial regulatory frameworks so that they can operate legally with a license."
  • A research study in the United Kingdom claims that 21% of the population aged between 21 and 35 would rather invest in Bitcoin instead of real estate. The study was conducted by UK-based build-to-rent developer – Get Living. The study, which polled 3,000 adults, found that 57% of millennials consider property investment over the next 5 years as risky
  • Quantamize updated its AI Machine Learning CryptoFolios Monday Morning. The next update will be Monday 07/02/18. Quantamize’s AI Machine Learning 3-Day Crypto trading signals were updated Tuesday. The next update will be tomorrow morning. Currently 7 cryptocurrencies are rated as Buy

*Data in Price Return; Source: Stockdio

S&P 500 Sector Performance

*Data in Total Return; Source: S&P Capital IQ

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

AbbVie Inc. - 26.81% off its 52wkH on 01/26/2018, reports earnings on 07/27/2018

Allison Transmission Holdings, Inc. - 11.75% off its 52wkH on 10/31/2017, reports earnings on 07/27/2018

American Eagle Outfitters, Inc. - 8.59% off its 52wkH on 06/21/2018, reports earnings on 08/17/2018

Comcast Corporation - 25.50% off its 52wkH on 01/24/2018, reports earnings on 07/26/2018

Dollar General Corporation - 5.76% off its 52wkH on 01/29/2018, reports earnings on 08/24/2018

Intel Corporation - 13.77% off its 52wkH on 06/04/2018, reports earnings on 07/26/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Accenture Plc (ACN) posted 3Q2018 EPS that was stronger than expected ($1.79 vs $1.72 forecasted). Accenture Plc stock is up 1.07% to a $157 handle pre-market

Chipotle Mexican Grill (CMG) shares are down 3.11% to $443.00 before the open, after the company announced that it will be closing 65 stores, and will also be incurring between $115 million and $135 million in restructuring costs

Lindsay Corp (LNN) reported 3Q2018 EPS that was higher than projected ($1.66 vs $1.41 anticipated). Shares of Lindsay Corp are unchanged pre-market

Marvell Technology Group (MRVL) is up 11.33% to $22.40, after the company received approval from China’s State Administration for Market Regulation for its merger proposal with Cavium Inc

McCormick & Co Inc (MKC) released 2Q2018 EPS that was above consensus ($1.02 vs $0.93). McCormick & Co’s stock is up 1.77% to $107.80 before today’s trading

NetFlix Inc's (NFLX) price target has been upgraded at Bank of America, from $352 to $460. Shares of Netflix are up 1.16% to $394.90 before the open

Pinnacle Foods (PF) is up 1.45% to $65.89 pre-market, despite the company’s downgrade from buy to a neutral rating at UBS

Sanofi (ENXTPA:SAN) has reached an agreement to sell its European drug making unit to Advent International Corp () for $2.2 billion

Walgreens Boots Alliance Inc (WBA) reported 3Q2018 EPS that was higher than expected ($1.53 vs $1.48). Walgreens also announced a $10 billion share repurchase program. Shares of Walgreens Boots Alliance are up 1.87% to $67.50 pre-market

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
Micron Technology, Inc. MU Information Technology Semiconductors -4.27% -8.48% 27.09%
ICU Medical, Inc. ICUI Healthcare Healthcare Supplies -3.22% -2.05% 33.61%
Pinnacle Foods Inc. PF Consumer Staples Packaged Foods and Meats -4.29% -3.06% 9.21%
Curtiss-Wright Corporation CW Industrials Aerospace and Defense -0.50% 0.99% -2.95%
Monolithic Power Systems, Inc. MPWR Information Technology Semiconductors -2.59% -3.72% 18.71%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Copart, Inc. CPRT Industrials Diversified Support Services -1.97% -7.91% 0.62%
Fortive Corporation FTV Industrials Industrial Machinery -0.55% -3.92% 2.89%
Laboratory Corporation of America Holdings LH Healthcare Healthcare Services -2.10% -5.15% -0.66%
Sirius XM Holdings Inc. SIRI Consumer Discretionary Cable and Satellite -3.55% -6.24% -5.76%
Conagra Brands, Inc. CAG Consumer Staples Packaged Foods and Meats -7.27% -8.04% -4.34%

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
Incyte Corporation INCY Healthcare Biotechnology -1.90% -11.58% -4.12%
Agios Pharmaceuticals, Inc. AGIO Healthcare Biotechnology -4.12% -13.17% -9.80%
Tesaro, Inc. TSRO Healthcare Biotechnology 0.44% -12.17% -4.78%
GreenSky, Inc. GSKY Information Technology Data Processing and Outsourced Services -8.76% -16.76% -24.88%
Portola Pharmaceuticals, Inc. PTLA Healthcare Biotechnology -5.11% -11.62% -3.74%
Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Puma Biotechnology, Inc. PBYI Healthcare Biotechnology -10.62% 7.37% -42.54%
Longfin Corp. LFIN Financials Financial Exchanges and Data -5.45% 10.40% -81.53%
Applied Optoelectronics, Inc. AAOI Information Technology Communications Equipment -3.49% -5.69% 9.10%
Gulfport Energy Corporation GPOR Energy Oil and Gas Exploration and Production -2.01% 4.73% -4.62%
Sage Therapeutics, Inc. SAGE Healthcare Biotechnology -1.56% -1.21% -7.95%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right

Company Name Ticker Event Date Event Type Q-Factor Score
Walgreens Boots Alliance, Inc. WBA 6/28/2018 Earnings Release Date US Large-Cap: B, US Consumer Staples: C
Conagra Brands, Inc. CAG 6/28/2018 Earnings Release Date US Large-Cap: A, US Consumer Staples: A
KB Home KBH 6/28/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: D
SYNNEX Corporation SNX 6/28/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
NIKE, Inc. NKE 6/28/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
RYB Education, Inc. RYB 6/28/2018 Estimated Earnings Release Date China All-Cap: F
China Soft Power Technology Holdings Limited SEHK:139 6/28/2018 Estimated Earnings Release Date China All-Cap: F
Zhaobangji Properties Holdings Limited SEHK:1660 6/28/2018 Earnings Release Date China All-Cap: C
eprint Group Limited SEHK:1884 6/28/2018 Earnings Release Date China All-Cap: D
Affluent Partners Holdings Limited SEHK:1466 6/28/2018 Earnings Release Date China All-Cap: D
Coastal Greenland Limited SEHK:1124 6/28/2018 Earnings Release Date China All-Cap: C
Constellation Brands, Inc. STZ 6/28/2018 Earnings Release Date US Large-Cap: B, US Consumer Staples: B
Freeman FinTech Corporation Limited SEHK:279 6/28/2018 Earnings Release Date China All-Cap: C
Dali Foods Group Company Limited SEHK:3799 6/29/2018 Estimated Earnings Release Date China All-Cap: C
Bestway Global Holding Inc. SEHK:3358 6/30/2018 Estimated Earnings Release Date China All-Cap: C
Huarong Investment Stock Corporation Limited SEHK:2277 6/30/2018 Estimated Earnings Release Date China All-Cap: D
Zinc One Resources Inc. Z 7/2/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: B
Acuity Brands, Inc. AYI 7/2/2018 Earnings Release Date US Large-Cap: C, US Industrials: B
CT Environmental Group Limited SEHK:1363 7/3/2018 Estimated Earnings Release Date China All-Cap: C
Apex Ace Holding Limited SEHK:6036 7/3/2018 Estimated Earnings Release Date China All-Cap: F
SIG plc SHI 7/4/2018 Estimated Earnings Release Date China All-Cap: A
Healthcare Services Group, Inc. HCSG 7/9/2018 Estimated Earnings Release Date US Large-Cap: D, US Industrials: C
PepsiCo, Inc. PEP 7/10/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: B
MSC Industrial Direct Co., Inc. MSM 7/10/2018 Estimated Earnings Release Date US Large-Cap: B, US Industrials: A
Fastenal Company FAST 7/11/2018 Earnings Release Date US Large-Cap: B, US Industrials: B
Delta Air Lines, Inc. DAL 7/11/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: B
Bank of the Ozarks OZRK 7/11/2018 Estimated Earnings Release Date US Large-Cap: C
Commerce Bancshares, Inc. CBSH 7/12/2018 Earnings Release Date US Large-Cap: B
Cintas Corporation CTAS 7/12/2018 Estimated Earnings Release Date US Large-Cap: A, US Industrials: B
First Horizon National Corporation FHN 7/12/2018 Estimated Earnings Release Date US Large-Cap: C
YUM! Brands, Inc. YUM 7/12/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
JPMorgan Chase & Co. JPM 7/13/2018 Earnings Release Date US Large-Cap: B
The PNC Financial Services Group, Inc. PNC 7/13/2018 Earnings Release Date US Large-Cap: C
Citigroup Inc. C 7/13/2018 Earnings Release Date US Large-Cap: B
Wells Fargo & Company WFC 7/13/2018 Earnings Release Date US Large-Cap: D

Source: S&P Capital IQ