Morning Quant Ride Feb 14, 2018

Feb 14, 2018

Traders’ Corner

Investors should keep an eye out for CPI data which is expected to be released around 8:30 AM today.

Asians markets closed mixed with Japanese equities closing down and Chinese equities closing up. The Nikkei finished down 25 bps with weakness in Japanese equities being attributed to a strong JPY. Energy and consumer staples Japanese stocks were up well over 50 bps. Chinese equities, in comparison, were up both in Hong Kong and Mainland China: CSI 300 closed up 80 bps while the Hang Seng China Enterprise index finished up 2.14%. Materials and healthcare stocks led the rally in Chinese equities. In the land Down Under, the Australian equities were weak in sympathy with Japanese equities: ASX closed down 25 bps driven primarily by weakness in consumer discretionary and telecom stocks. Unlike weakness in Japanese equities, the behavior of the AUD$ can’t explain weakness in Aussie equities with the AUD$ relatively flat.

US equity futures are pointing to a positive open in NY this morning ahead of the 8:30am US January CPI release. Fixed swap rates are implying no real move in rates with 2-year swaps flat. CDS spreads point to no increase in country risk in the US with 2yr and 5yr spreads flat as well. US rates markets, as a result, seem to be pointing to a benign CPI result this morning. That perspective is slightly contradicted by a strengthening JPY this morning, up 57 bps, and a continued rally in Precious Metals spot prices. Weakness in oil prices appears to be further highlighting the structural concerns from the risk of rising benchmark interest rates in the US: a monetary tightening cycle in the US may lead to a contraction of the credit liquidity that has been fueling a global reinvestment cycle. The VIX has contracted 198 bps this morning to 22.99.

In yesterday’s trading session, US Equities were slightly higher with the S&P 500 up 0.26%, the Russell 2000 up 0.27%, and the Nasdaq up 0.45%. Most sectors of the S&P500 were higher, with Real Estate, Consumer Discretionary, and Financials leading the way, while Energy and Materials were the only sectors negative yesterday. Heading into market open today, we will be watching a few of our A-rated Tech Stocks very closely:

Cirrus Logic - 41.43% off its 52wkH, reports earnings on 05/03/2018

QuantShot: Euronet - 22.22% off its 52wkH, reports earnings on 04/24/2018

QuantShot: Facebook - 11.35% off its 52wkH, reports earnings on 05/03/2018

First Data- 19.40% off its 52wkH, reports earnings on 05/07/2018

YY - 17.03% off its 52wkH, reports earnings on 03/08/2018We will also be watching some of our A-rated Consumer stocks that lagged the market yesterday:

Lowe's - 11.86% off its 52wkH, reports earnings on 02/28/2018

Children Place- 8.38% off its 52wkH, reports earnings on 03/07/2018

Wingstop - 8.92% off its 52wkH, reports earnings on 02/23/2018

Our Top Picks in the News

Click headline for story

Lear Corporation (LEA)

Lear declares $0.70 dividend (Seeking Alpha)
Top Conviction Buy in February, please see Quantamize Global Top Picks US Consumer Discretionary report

Walmart (WMT)

Walmart goes to the cloud to close gap with Amazon (Reuters)

Top Conviction Buy in February, please see Quantamize Global Top Picks US Consumer Staples report

See more on our Walmart QuantShot company report from February 6th

Wyndham Worldwide Corporation (WYN)

Wyndham tops 4Q profit forecasts (CNBC)
Top Conviction Buy in February, please see Quantamize Global Top Picks US Consumer Discretionary report

NetApp (NTAP)

NetApp +2.6% on analyst upgrade (Seeking Alpha)

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

See more on our NetApp QuantShot company report from February 5th

Green Dot (GDOT)

Green Dot on the rise after Citi nod (Seeking Alpha)

Top Conviction Buy in February, please see Quantamize Global Top Picks US SMID Cap report

See more on our Green Dot QuantShot company report from February 9th

Walgreens Boots Alliance (WBA)

WBA takeout of AmerisourceBergen could boost non-GAAP EPS 10% - Mizuho (Seeking Alpha)

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

See more on our Walgreens QuantShot company report from February 9th

Apple (AAPL)

Will Apple’s New HomePod Soon Dominate Hi-fi Profits? (Barron's)

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

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

Brooks Automation (BRKS)

Brooks Automation (NASDAQ:BRKS) Given Buy Rating at Stephens (Dispatch Journal)

Top Conviction Buy in February, please see Quantamize Global Top Picks US SMID Cap report

See more on our Brooks QuantShot company report from December 18th

Global Indices

Index

Levels

1 Day Return

5 Day Return

MTD

YTD

S&P 500

2662.94

0.00%

-0.70%

-5.70%

-0.40%

Russell 2000

1494.95

0.00%

-0.86%

-5.08%

-2.64%

DJ Industrial Average

24640.45

0.00%

-1.02%

-5.77%

-0.32%

NASDAQ Composite Index

7013.51

0.00%

-0.55%

-5.37%

1.60%

CBOE Market Volatility Index

22.95

-

-

-

-

Germany DAX (TR)

12270.84

0.61%

-3.13%

-6.98%

-5.58%

France CAC 40

5149.46

0.79%

-2.79%

-6.07%

-3.83%

Japan Nikkei 225

21154.17

-0.43%

-1.85%

-8.02%

-6.68%

Hang Seng Index

30515.60

2.27%

-1.60%

-9.27%

-0.27%

Hang Seng China Enterprises

12260.99

2.14%

-3.45%

-11.48%

2.52%

S&P ASX 200

5841.20

-0.25%

-0.36%

-3.25%

-3.45%

Source: FactSet          

Large Cap Conviction Buy Movers

Large Cap A Winners Ticker Sector Industry 1 Day Return 5 Day Return YTD
LOUISIANA-PACIFIC CORP LPX Materials Paper & Forest Products

7.07%

2.16%

8.30%

ENTERCOM COMMUNICATIONS CORP ETM Consumer Discretionary Media

2.55%

-2.97%

-9.26%

RED HAT INC RHT Information Technology Software

2.10%

0.50%

7.68%

PRA HEALTH SCIENCES INC PRAH Health Care Life Sciences Tools & Services

2.06%

-2.51%

-5.49%

SIRIUS XM HOLDINGS INC SIRI Consumer Discretionary Media

1.88%

-3.31%

9.14%

Large Cap A Losers Ticker Sector Industry 1 Day Return 5 Day Return YTD
REGENERON PHARMACEUTICALS REGN Health Care Biotechnology

-5.28%

1.14%

-8.85%

FIRST DATA CORP FDC Information Technology IT Services

-5.02%

-0.97%

-2.33%

SEALED AIR CORP SEE Materials Containers & Packaging

-1.88%

-3.97%

-13.75%

FACEBOOK INC FB Information Technology Internet Software & Services

-1.68%

-4.37%

-0.03%

BLACK HILLS CORP BKH Utilities Multi-Utilities

-1.64%

2.74%

-11.55%

Source: FactSet            

Large Cap Conviction Short Movers

Large Cap F Winners Ticker Sector Industry 1 Day Return  5 Day Return YTD
RIOT BLOCKCHAIN INC RIOT Health Care Biotechnology

-8.44%

35.44%

-38.24%

MATTEL INC MAT Consumer Discretionary Leisure Products

-5.76%

3.03%

12.87%

ARRAY BIOPHARMA INC ARRY Health Care Biotechnology

-5.52%

7.86%

37.19%

LAREDO PETROLEUM INC LPI Energy Oil, Gas & Consumable Fuels

-5.37%

-10.51%

-24.60%

ADT INC -REDH ADT Industrials Commercial Services & Supplies

-4.18%

3.09%

-
Large Cap F Losers Ticker Sector Industry 1 Day Return  5 Day Return YTD
LONGFIN CORP -REDH LFIN Financials Capital Markets

9.10%

8.99%

-31.28%

LOXO ONCOLOGY INC LOXO Health Care Biotechnology

7.43%

-3.06%

11.59%

BLUEPRINT MEDICINES CORP BPMC Health Care Biotechnology

5.85%

-4.61%

-2.31%

TESARO INC TSRO Health Care Biotechnology

5.73%

-2.59%

-29.29%

SQUARE INC SQ Information Technology IT Services

5.49%

-4.06%

15.14%

Source: FactSet            

Upcoming Earnings

Company Name Ticker Earnings Date
Service Corporation International SCI 02/14/2018
Snyder's-Lance, Inc. LNCE 02/14/2018
DaVita Inc. DVA 02/14/2018
Zoetis, Inc. Class A ZTS 02/15/2018
Cisco Systems, Inc. CSCO 02/15/2018
Pilgrim's Pride Corporation PPC 02/15/2018
NetApp, Inc. NTAP 02/15/2018
Marriott International, Inc. Class A MAR 02/15/2018
V.F. Corporation VFC 02/16/2018
SS&C Technologies Holdings, Inc. SSNC 02/16/2018
Ligand Pharmaceuticals Incorporated LGND 02/21/2018
HP Inc. HPQ 02/21/2018
Zebra Technologies Corporation Class A ZBRA 02/22/2018
Toro Company TTC 02/22/2018
Pinnacle Foods, Inc. PF 02/22/2018
PRA Health Sciences, Inc. PRAH 02/22/2018
Leucadia National Corporation LUK 02/26/2018
NuVasive, Inc. NUVA 02/27/2018
Scripps Networks Interactive, Inc. Class A SNI 02/27/2018
United Therapeutics Corporation UTHR 02/27/2018
Priceline Group Inc PCLN 02/28/2018
Carter's, Inc. CRI 02/28/2018
TJX Companies Inc TJX 02/28/2018

Line for QuantShots

Quantalytics Research is the trade name of Quantalytics Research, LLC.

Disclaimer

Quantalytics Research, LLC is not an investment adviser, brokerage firm, or investment company. Any data, information, or opinions presented by Quantalytics Research are for general information purposes only. Such data, information, or opinions are not an offer to sell or to buy, or a solicitation to buy or sell any securities. All investments and investment recommendations entail risks. Any forward looking estimates presented by Quantalytics Research through Quantalytics Edge may prove to be incorrect and not be realized. Any data, information, or opinions expressed in Quantalytics Research in any form may change without notice. Any data, information, or opinions in Quantalytics Research in any form attributed to a third party represent Quantalytics Research's interpretation of the data, information, or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. The data, information and opinions presented have been obtained or derived from sources believed by Quantalytics Research in any form to be reliable. Quantalytics Research, doesn't make any representations as to their accuracy or completeness. Nothing discussed or presented in Quantalytics Research constitutes a representation that any investment, investment strategy, or recommendation is suitable or appropriate to an investor's individual circumstances or otherwise constitutes a personal recommendation. Data, information, or opinions contained in Quantalytics Research in any form give no consideration to any particular individuals' investment needs or objectives, nor do they consider any individuals' financial condition. Consequently, any such data, information, or opinions do not in any way represent a personal recommendation to any individual investor or any entities, whatever the type. Quantalytics Research does not accept any liability for any losses or damages arising from the use of the data, information, or opinions included in Quantalytics Research in any form. All investments involve risks of loss and potential permanent impairment of capital. Investors should diversify risks and exercise prudence and their own judgement in making their investment decisions. Quantalytics Research and any information contained therein is not intended for distribution to or use by any person, or entity, who is a citizen or resident of or located in any locality, state, country, or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or cause Quantalytics Research, LLC to be required to register or be licensed within any such venues. All data, information, and opinions expressed in Quantalytics Research in any form are as of the date of publication and are subject to change. Quantalytics Research partners and employees may own or have positions in any investment(s) mentioned respectively therein or related thereto and may, from time to time add to, or dispose of, any such investment(s).