Morning Quant Ride Jan 30, 2018

Jan 30, 2018

Traders’ Corner

Both Asian and European markets are trading down this morning as investors focus on profit-taking. Many investment banks are calling for a pause in the current market rally, following a 6.8% gain in the S&P 500 YTD. Investors continue to assume there will be a boost to economic growth from tax cuts in the US. This reinforces the idea that some investor selling at this point would likely be healthy for US equities.

Today, US equity markets will be focused on anticipating what President Trump may say this evening in his State of the Union address. Some talk on infrastructure is expected though surprises are likely to be few. Tomorrow will see the start of Janet Yellen’s last meeting as head of the Fed, again no surprise expected there.

US equity futures are pointing to a negative open in NY this morning with the VIX currently back above 14.

A few of our top semiconductor stocks sold off yesterday on the news that Apple is reducing its iPhone X production for 1Q18. We remain bullish on our A-rated semiconductiors:

QuantShot: Applied Materials – 9.13% off its 52wkH, reports earnings on February 14th

QuantShot: Lam Research – 10.80% off its 52wkH

QuantShot: Micron Technology – 13.23% off its 52wkH, reports earnings on March 22nd

MKS Instruments – 7.32% off its 52wkH, reports earnings on January 31stIn addition to the our A-rated semiconductor stocks, we are following some of other A-rated laggards going into the end of the month:

QuantShot: Baidu – 7.72% off its 52wkH, reports earnings on February 15th

QuantShot: Cable One – 10.33% off its 52wkH, reports earnings on February 28th

Century Casino – 6.50% off its 52wkH, reports earnings on

Comcast – 4.59% off its 52wkH

Deere & Co. – 1.62% off its 52wkH, reports earnings on February 16th

QuantShot: Domino's Pizza – 2.97% off its 52wkH, reports earnings on February 27th

First Data Corp. – 6.08% off its 52wkH, reports earnings on February 12th

QuantShot: Home Depot – 1.29% off its 52wkH, reports earnings on February 20th

Pepsico – 2.32% off its 52wkH, reports earnings on February 13th

Oshkosh – 7.56% off its 52wkH, reports earnings on January 25th

QuantShot: Six Flags Entertainment – 2.97% off its 52wkH, reports earnings on February 20th

QuantShot: Western Digital – 8.69% off its 52wkH

QuantShot: Wynn Resorts – 19.72% off its 52wkH

YY Inc. – 4.38% off its 52wkH, reports earnings on March 8th 

Our Top Picks in the News

Click headline for story

Home Depot (HD)

Home Depot, Lowe’s Thrive in Amazon’s Shadow (Barron’s)

Top Conviction Buy in January, please see Quantamize Global Top Picks US Consumer Discretionary report

See more on our Home Depot QuantShot company report from January 11th

Boeing (BA)

Can Commercial Jet Deliveries Aid Boeing's (BA) Q4 Earnings? (Zacks)

Top Conviction Buy in January, please see Quantamize Global Top Picks US Industrials report

See more on our Boeing QuantShot company report from January 22nd

Lockheed Martin (LMT)

Lockheed Sees 2018 Profit Gain on Tax Cut, F-35 Fighter Jet (Bloomberg)
Lockheed Martin (LMT) PT Raised to $400 at Stifel; $20/shr in FCF in 2019/2020 (Street Insider)

Top Conviction Buy in January, please see Quantamize Global Top Picks US Industrials report

See more on our Lockheed Martin Q-Options Bull Put Spread trade idea from January 11th

Lam Research (LRCX)

Lam Research Is Slowing Down But The Shares Are Still Attractive (Seeking Alpha)

Top Conviction Buy in January, please see Quantamize Global Top Pick s US Large Cap report

See more on our LRCX QuantShot company report from January 17th

KLA-Tencor (KLAC)

KLA-Tencor (KLAC) PT Raised to $112 at Citi (Street Insider)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Large Cap Tech report

Domino's (DPZ)

Domino's expects bigger slice of annual profits as sales grow (Yahoo Finance)

Top Conviction Buy in January, please see Quantamize Global Top Picks Large Cap report

See more on our Domino's QuantShot company report from January 9th

Apple (AAPL)

Apple Pay now accepted at 50% of U.S. stores, AI reports (The Fly)

Top Conviction Buy in January, please see Quantamize Global Top Picks US Info Tech report

See more on our Apple QuantShot company report from January 5th

Global Indices

Index

Price

1 Day Return

5 Day Return

MTD

YTD

S&P 500

$ 2,853.53

0.00%

0.51%

6.73%

6.73%

Russell 2000

$ 1,598.11

0.00%

-0.78%

4.08%

4.08%

DJ Industrial Average

$ 26,439.48

0.00%

0.87%

6.96%

6.96%

NASDAQ Composite Index

$ 7,466.51

0.00%

0.08%

8.16%

8.16%

CBOE Market Volatility Index

14.15

-

-

-

-

Germany DAX (TR)

€ 13,260.97

-0.48%

-1.73%

2.65%

3.15%

France CAC 40

€ 5,501.67

-0.36%

-0.25%

3.55%

3.93%

Japan Nikkei 225

¥ 23,291.97

-1.43%

-2.05%

2.32%

3.80%

Hang Seng Index

¥ 32,607.29

-1.09%

0.11%

8.98%

10.19%

Hang Seng China Enterprises

¥ 13,389.38

-1.98%

1.25%

14.35%

16.66%

S&P ASX 200

AUD 6,022.80

-0.87%

0.64%

-0.70%

0.17%

Source: FactSet          

Large Cap Conviction Buy Movers

Large Cap A Winners Ticker Sector Industry

1 Day Return

5 Day Return

YTD

MAXIM INTEGRATED PRODUCTS MXIM Information Technology Semiconductors & Semiconductor Equipment

12.30%

2.82%

12.87%

BIG LOTS INC BIG Consumer Discretionary Multiline Retail

1.50%

1.09%

12.68%

WALGREENS BOOTS ALLIANCE INC WBA Consumer Staples Food & Staples Retailing

1.42%

2.26%

8.99%

LABORATORY CP OF AMER HLDGS LH Health Care Health Care Providers & Services

0.96%

0.09%

10.59%

ZEBRA TECHNOLOGIES CP -CL A ZBRA Information Technology Electronic Equipment, Instruments & Components

0.92%

-0.65%

18.96%

Large Cap A Losers Ticker Sector Industry

1 Day Return

5 Day Return

YTD

TRANSUNION TRU Industrials Professional Services

-4.11%

2.78%

11.63%

NVR INC NVR Consumer Discretionary Household Durables

-3.26%

-10.12%

-6.36%

LAM RESEARCH CORP LRCX Information Technology Semiconductors & Semiconductor Equipment

-3.26%

-3.16%

10.05%

APPLIED MATERIALS INC AMAT Information Technology Semiconductors & Semiconductor Equipment

-3.13%

-0.59%

11.74%

FACTSET RESEARCH SYSTEMS INC FDS Financials Capital Markets

-2.85%

4.61%

8.26%

Source: FactSet            

Large Cap Conviction Short Movers

Large Cap F Winners Ticker Sector Industry

1 Day Return

5 Day Return

YTD

DELL TECHNOLOGIES INC DVMT Information Technology Software

-9.60%

-6.96%

1.80%

GOPRO INC GPRO Consumer Discretionary Household Durables

-5.84%

-10.32%

-25.36%

SOUTHWESTERN ENERGY CO SWN Energy Oil, Gas & Consumable Fuels

-5.00%

-5.84%

-10.39%

LUMBER LIQUIDATORS HLDGS INC LL Consumer Discretionary Specialty Retail

-4.45%

-1.25%

-2.01%

BAKER HUGHES A GE CO BHGE Energy Energy Equipment & Services

-4.09%

-7.90%

3.48%

Large Cap F Losers Ticker Sector Industry

1 Day Return

5 Day Return

YTD

AVEXIS INC AVXS Health Care Biotechnology

8.17%

4.56%

2.75%

BITCOIN INVESTMENT TRUST GBTC Undefined Undefined

5.88%

-2.43%

-18.40%

ARRAY BIOPHARMA INC ARRY Health Care Biotechnology

4.73%

-7.52%

12.42%

NEKTAR THERAPEUTICS NKTR Health Care Pharmaceuticals

4.25%

2.93%

32.33%

INTERCEPT PHARMA INC ICPT Health Care Biotechnology

3.51%

4.14%

11.13%

Source: FactSet            

Upcoming Earnings

Company Name Ticker Date
Amdocs Limited DOX 01/30/2018
IDEX Corporation IEX 01/30/2018
Principal Financial Group, Inc. PFG 01/30/2018
Advanced Energy Industries, Inc. AEIS 01/31/2018
Avery Dennison Corporation AVY 01/31/2018
Boeing Company BA 01/31/2018
Cadence Design Systems, Inc. CDNS 01/31/2018
Nasdaq, Inc. NDAQ 01/31/2018
Align Technology, Inc. ALGN 01/31/2018
SEI Investments Company SEIC 02/01/2018
Facebook, Inc. Class A FB 02/01/2018
Boston Scientific Corporation BSX 02/01/2018
IDEXX Laboratories, Inc. IDXX 02/01/2018
Ingredion Incorporated INGR 02/01/2018
Mastercard Incorporated Class A MA 02/01/2018
MKS Instruments, Inc. MKSI 02/01/2018
MSCI Inc. Class A MSCI 02/01/2018
Parker-Hannifin Corporation PH 02/01/2018
AMETEK, Inc. AME 02/01/2018
Xylem Inc. XYL 02/01/2018
Mid-America Apartment Communities, Inc. MAA 02/01/2018
Marsh & McLennan Companies, Inc. MMC 02/01/2018
Time Warner Inc. TWX 02/01/2018
Cigna Corporation CI 02/01/2018
C. R. Bard, Inc. BCR 02/01/2018
Edwards Lifesciences Corporation EW 02/02/2018
Roper Technologies, Inc. ROP 02/02/2018
Motorola Solutions, Inc. MSI 02/02/2018
Fortune Brands Home & Security, Inc. FBHS 02/02/2018
Spirit AeroSystems Holdings, Inc. Class A SPR 02/02/2018
Alphabet Inc. Class A GOOGL 02/02/2018
Estee Lauder Companies Inc. Class A EL 02/02/2018
Church & Dwight Co., Inc. CHD 02/05/2018

Line for QuantShots

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