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Morning Brief

Wake up to the Morning Quant Ride, your global markets update every morning!

Morning Quant Ride

May 07, 2018

Your Key Morning Highlights

  • US equity index futures are extending Friday’s gains on limited news flow
  • Options trading is quiet pre-market with the VIX currently at 15.21
  • WTI is trading above USD$70/barrel as investors expect the US to leave the Iran Nuclear Deal this week
  • USD$ is strong this morning on the back of a weaker EUR€
  • US Bond Yields are unchanged this morning with the yield on the 10-year sitting at 2.957%
  • Bloomberg reports that net short positions on 30-year bond futures are the highest they have been since 2010
  • Aussie government bonds continue their recent rally with the yield on the 10-year Aussie down 1.5 basis points to 2.752%
  • European equities advancing with Euro Stoxx 600 +0.43%, led by strength in info tech and energy
  • Asian stocks mixed to start week after last week’s sell off, Hang Seng +0.23%, Nikkei 225 -0.03%, Sensex +0.86%
  • Australian equities finish higher with ASX +0.36%, boosted by materials and energy
  • Major cryptocurrencies have been in a downtrend since Thursday’s rally with Bitcoin notably unable to breach USD$10,000, hitting ~USD$9,940. Bitcoin is now at USD$9,340.20. Bitcoin Cash is up ~18.55% over the past 5-days
  • The World’s third largest cryptocurrency exchange, Huobi, is expanding its operations to Canada
  • Quantamize’s rolling 3-Day Machine Learning Crypto Signals were updated yesterday; 9 out of 30 cryptocurrencies are rated as Buy

S&P 500 Sector Performance

Conviction Buy Laggards From Friday We Are Watching To Begin The Week

Click name for Q-Factor rating and financial data.

DXC Technology Company - 5.41% off its 52wkH on 03/20/2018, reports earnings on 05/24/2018

Ennis, Inc. - 16.74% off its 52wkH on 11/29/2017, reports earnings on 06/20/2018

Finjan Holdings, Inc. - 27.09% off its 52wkH on 06/23/2017, reports earnings on 05/09/2018

Hilton Grand Vacations Inc. - 17.80% off its 52wkH on 03/14/2018, reports earnings on 08/01/2018

Marathon Petroleum Corporation - 7.60% off its 52wkH on 04/26/2018, reports earnings on 07/30/2018

The TJX Companies, Inc. - 5.06% off its 52wkH on 04/30/2018, reports earnings on 05/22/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Berkshire Hathaway (BRK.A) posted a 1Q2018 loss $1.14 billion, the first negative quarter for Berkshire in 9 years.

Blackstone Group (BX) has announced that it will be acquiring Grammercy Property Trust for $7.6 billion.

Cognizant Technology (CTSH) is reports 1Q2018 earnings results in-line with expectations but gives disappointing CY2018 guidance.  Cognizant Technology (CTSH) management sees future earnings results negatively impacted by the recent tax reform passed by the US Congress.  Cognizant Technology (CTSH) expects its effective tax rate to increase in future periods.  In pre-market trading, Cognizant Technology (CTSH) is down 1.4%.

Disney’s (DIS) Avengers: Infinity War title has reached $1 billion in sales globally in just 11 days. This is the fastest rate at which a film has reached the $1 billion mark.

International Flavors & Fragrances Inc (IFF) has agreed to acquire Frutarom Industries, an Israeli flavor maker, for $7.1 billion.

Nestle SA (NESN.SW) has agreed to a deal with Starbucks (SBUX) which grants Nestle the right to distribute Starbucks’ products globally. The deal has been valued at $7.15 billion.

Tyson Foods (TSN) reports disappointing F2Q2018 earnings results that were below Consensus.  Tyson Foods (TSN) management reiterates CY2018 guidance.  At the moment, Tyson Foods (TSN) is -1.5% in the pre-market.

Volkswagen AG (VOW.GR) is considering the option of seeking damages from former company CEO Martin Winterkorn. Winterkorn is accused of significant oversight in in Volkswagen’s emissions scandal.

Willis Towers Watson (WLTW) adjusted FY2018 EPS is higher than the consensus ($9.88-$10.12 vs $9.66 projected).

 

Major companies reporting earnings over the next 24 hours:

Discovery Inc (DISCA)

Gartner (IT)

Henry Schein (HSIC)

Microchip Technology (MCHP)

Mosaic (MOS)

Cryptocurrencies Today

 

Stock Movers

US Large Cap Conviction Buy Winners and Losers
Winners  Ticker Sector Industry 1 Day Return 5 Day Return  YTD
The Kraft Heinz Company KHC Consumer Staples Packaged Foods and Meats 5.57% 0.61% -25.40%
Teledyne Technologies Incorporated TDY Industrials Aerospace and Defense 5.21% 1.43% 6.62%
The Chemours Company CC Materials Diversified Chemicals 4.45% 0.90% 1.22%
KLA-Tencor Corporation KLAC Information Technology Semiconductor Equipment 3.56% 4.38% 1.51%
Altaba Inc. AABA Information Technology Internet Software and Services 3.31% 4.27% 4.09%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Express Scripts Holding Company ESRX Healthcare Healthcare Services -2.74% -9.05% -7.24%
Ingredion Incorporated INGR Consumer Staples Agricultural Products -2.07% -9.19% -6.45%
Dollar Tree, Inc. DLTR Consumer Discretionary General Merchandise Stores -2.04% -3.85% -2.38%
Marriott Vacations Worldwide Corporation VAC Consumer Discretionary Hotels, Resorts and Cruise Lines -1.25% -11.54% -3.89%
Becton, Dickinson and Company BDX Healthcare Healthcare Equipment -1.09% -4.10% -3.11%

Source: S&P Capital IQ

US Large Cap Conviction Short Winners and Losers
Winners Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Dropbox, Inc. DBX Information Technology Internet Software and Services -3.51% -1.62% -3.25%
Overstock.com, Inc. OSTK Consumer Discretionary Internet and Direct Marketing Retail -3.34% 1.35% -1.18%
Smartsheet Inc. SMAR Information Technology Application Software -2.88% -3.18% -2.18%
Blueprint Medicines Corporation BPMC Healthcare Biotechnology -2.76% -3.85% 2.23%
Seattle Genetics, Inc. SGEN Healthcare Biotechnology -2.33% 2.21% 2.99%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Portola Pharmaceuticals, Inc. PTLA Healthcare Biotechnology 25.64% 24.13% -12.82%
Pandora Media, Inc. P Information Technology Internet Software and Services 19.83% 25.96% 42.95%
Shake Shack Inc. SHAK Consumer Discretionary Restaurants 18.01% 18.39% 29.51%
Esperion Therapeutics, Inc. ESPR Healthcare Biotechnology 12.48% -42.06% -36.91%
Axon Enterprise, Inc. AAXN Industrials Aerospace and Defense 7.50% 7.07% 68.11%

Source: S&P Capital IQ

US Large Cap Conviction Buy Upcoming Events

Company Name Ticker Earnings Date Event Type
Sysco Corporation SYY 5/7/2018 Earnings Release Date
Louisiana-Pacific Corporation LPX 5/7/2018 Earnings Release Date
Black Knight, Inc. BKI 5/7/2018 Earnings Release Date
Expeditors International of Washington, Inc. EXPD 5/7/2018 Earnings Release Date
US Foods Holding Corp. USFD 5/8/2018 Earnings Release Date
KAR Auction Services, Inc. KAR 5/8/2018 Earnings Release Date
ICU Medical, Inc. ICUI 5/9/2018 Earnings Release Date