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Morning Brief

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Morning Quant Ride

Jul 09, 2018

US Stocks

  • Globally, market sentiment is positive following last weeks better than expected US jobs report
  • Global stocks are positive as investor focus shifts away from Sino-American trade tensions and turns to 2Q2018 earnings season
  • US stocks index futures are advancing ahead of the open this morning, with the Dow Jones minis +0.49%, S&P 500 minis +0.43%, and Nasdaq 100 minis +0.41%
  • The VIX is currently at 13.21 after falling 16 basis points
  • T1 July 20 ITM Calls, EEM July 20, EEM September 21 OTM Calls, and BAC July 20 OTM Calls are the most heavily traded options contracts in the US pre-market
  • The yield on the US 10-year is up 2.9 basis points, to 2.851%
  • The USD$ index (DXY) is -0.19%, with a move in the AUD$ (+0.61%), the GBP£ (+0.49%), and the EUR€ (+0.32%) driving the downward move in the USD$
  • Global oil prices have resumed their rally, with WTI Crude +0.05% to USD$73.84/bbl, and Brent Crude +0.95% to USD$77.84/bbl

International Stocks

  • European stocks are broadly higher midday, with the Euro Stoxx 600 +0.48%, the FTSE 100 +0.37%, the DAX +0.13%, and the CAC 40 +0.41%. European stocks are buoyed by expectations for a “soft Brexit” and positive sentiment in the US
  • Global sovereign bonds are mixed, with the yield on the Aussie 10-year down 1.4 basis points to 2.608%, while the German Bund yield (+1.9 basis points) and Chinese 10-year yield (+1.9 basis points) have risen
  • Market breadth for the Euro Stoxx 600 is positive with 407 stocks advancing compared to 158 declines
  • The VSTOXX is up ~9 basis points, or 0.60%, to 14.83
  • Asian stocks continued to build on Friday’s momentum with the Nikkei 225 +1.21%, the Hang Seng +1.32%, and the CSI 300 +2.80%

Cryptos

  • Cloud computing startup Oasis labs raised USD$45mm in a private token pre-sale that will develop a blockchain platform aiming to rival Amazon Web Services. The sale was led by “a16z”, a new crypto fund sponsored by Andreesen Horowitz. Investors in the fund include: Accel, Binance, Pantera, Polychain, Metastable, Foundation Capital, Electric Capital, DCVC and Coinbase co-founder Fred Ehrsam
  • China’s Central Bank has called the country’s ban on cryptocurrency a huge success as the Chinese Yuan is currently used in less than 1% of crypto-trades. The Yuan used to be responsible for 90% of all crypto trades. China outlawed initial coin offerings (ICOs) and then began cracking down on crypto trading. The Chinese government has reportedly shut down 88 cryptocurrency exchanges and 85 ICOs. Despite the ban on crypto trading, China is heavily investing in blockchain technology projects. Additionally, China leads the world in crypto mining and in the future may offer a national cryptocurrency issued through the Peoples Bank of China
  • The Financial Industry Regulatory Authority (FINRA) is requesting that member firms submit details regarding their cryptocurrency activities. The request is supplementing its existing efforts to “ascertain the extent of its member firms’ involvement. FINRA is looking for whether member firms have been trading cryptocurrencies, accepting cryptos from customers, managing a crypto fund, participating in token sales, or offering crypto advice. This new regulatory notice is not mandatory but reflects FINRA’s oversight regarding “fraud and other securities law violations involving digital assets”
  • Quantamize’s AI Machine Learning 3-Day Crypto Trading Signals were updated yesterday morning. Six cryptocurrencies are rated as “Buy”. The next signal update will be 7/11/2018. Quantamize’s CryptoFolios were updated this morning and will next be updated 7/16/2018.

*Data in Price Return; Source: Stockdio

S&P 500 Sector Performance

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

Conviction Buy Laggards From Friday We Are Watching Today

Click name for Q-Factor rating and financial data.

Atkore International Group Inc. - 13.71% off its 52wkH on 01/26/2018, reports earnings on 08/07/2018

Diodes Incorporated - 5.37% off its 52wkH on 06/21/2018, reports earnings on 08/06/2018

DXC Technology Company - 22.53% off its 52wkH on 03/20/2018, reports earnings on 08/09/2018

Electro Scientific Industries, Inc. - 42.17% off its 52wkH on 11/27/2017, reports earnings on 07/30/2018

The Hackett Group, Inc. - 13.98% off its 52wkH on 02/21/2018, reports earnings on 08/07/2018

Tractor Supply Company - 7.21% off its 52wkH on 01/22/2018, reports earnings on 07/26/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Baidu Inc (BIDU) shares are trading 2.69% higher pre-market to $258.54 after the company has been upgraded to overweight from sector weight at KeyBanc
Boeing Co (BA)  is selling four P-8 Poseidon jets to the New Zealand government for USD$1.5 billion
Cummins (CMI) shares are 2.72% higher to $134.98, after the company announced that it has acquired powertrain provider Efficent Drivechains
Groupon Inc (GRPN) shares are up 10.55% pre-market to $4..82, following reports that the company is actively seeking a buyer
PayPal (PYPL) CEO Dan Schulman is seeking to invest up to USD$3 billion a year into acquisitions that allow the company to gain specific capabilities
Vishay Intertechnology (VSH) has advanced 2.97% to $26.00 after the company was upgraded to buy from a hold rating at Citigroup
Proctor & Gamble (PG) has been downgraded to hold from a buy rating at Jeffries, and Jeffries’ price target for Proctor & Gamble was cut to $79 from $83. Shares of Proctor & Gamble are down 0.77% to $78.70 before the open

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
Altaba Inc. AABA Information Technology Internet Software and Services 2.74% 2.94% 7.89%
AbbVie Inc. ABBV Healthcare Biotechnology 2.58% 4.61% 0.22%
Facebook, Inc. FB Information Technology Internet Software and Services 2.41% 4.59% 15.17%
Cable One, Inc. CABO Consumer Discretionary Cable and Satellite 2.40% 3.77% 8.19%
Ligand Pharmaceuticals Incorporated LGND Healthcare Biotechnology 2.28% 4.59% 58.23%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Tractor Supply Company TSCO Consumer Discretionary Specialty Stores -0.47% 0.30% 0.30%
Aflac Incorporated AFL Financials Life and Health Insurance -0.30% -0.26% -0.26%
The Western Union Company WU Information Technology Data Processing and Outsourced Services -0.25% -0.39% -0.39%
Republic Services, Inc. RSG Industrials Environmental and Facilities Services -0.17% 0.63% 0.63%
Chemed Corporation CHE Healthcare Healthcare Services -0.17% -0.03% -0.03%

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
Tricida, Inc. TCDA Healthcare Pharmaceuticals -8.35% 4.25% 4.25%
Avalara, Inc. AVLR Information Technology Application Software -3.29% -10.57% -10.57%
Domo, Inc. DOMO Information Technology Application Software -2.54% -19.82% -19.82%
Groupon, Inc. GRPN Consumer Discretionary Internet and Direct Marketing Retail -0.46% 1.40% 1.40%
Immunomedics, Inc. IMMU Healthcare Biotechnology -0.41% 2.24% 2.24%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
PTC Therapeutics, Inc. PTCT Healthcare Biotechnology 5.95% 8.81% 120.02%
Camping World Holdings, Inc. CWH Consumer Discretionary Automotive Retail 5.07% 5.36% -41.16%
Carvana Co. CVNA Consumer Discretionary Automotive Retail 4.87% 13.39% 146.71%
Ionis Pharmaceuticals, Inc. IONS Healthcare Biotechnology 4.81% 9.26% -9.48%
Intercept Pharmaceuticals, Inc. ICPT Healthcare Biotechnology 4.58% 12.02% 60.90%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
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
First Republic Bank FRC 7/13/2018 Earnings Release Date US Large-Cap: C
Celanese Corporation CE 7/15/2018 Estimated Earnings Release Date US Large-Cap: B
Mattel, Inc. MAT 7/15/2018 Estimated Earnings Release Date US Large-Cap: F, US Consumer Discretionary: F
PacWest Bancorp PACW 7/15/2018 Estimated Earnings Release Date US Large-Cap: B
The Charles Schwab Corporation SCHW 7/15/2018 Estimated Earnings Release Date US Large-Cap: C
HK Electric Investments and HK Electric Investments Limited SEHK:2638 7/15/2018 Estimated Earnings Release Date China All-Cap: B
Vinda International Holdings Limited SEHK:3331 7/15/2018 Estimated Earnings Release Date China All-Cap: C

Source: S&P Capital IQ