Morning Quant Ride

May 08, 2018

Your Key Morning Highlights

  • US equity index futures are pointing to a negative open in NY
  • WTI is trading down 1.36% to USD$69.77/barrel ahead of US President Trump’s announcement regarding the Iran Nuclear Deal later today
  • OTM May 11 Puts on USO are the most actively traded options contract in the US Composite this AM
  • USD$ is strong this morning on the back of a weaker EUR€, GBP£ and AUD$. 
  • US Bond Yields are unchanged this morning with the yield on the 10-year sitting at 2.948%
  • Bloomberg reports that net short positions on 30-year bond futures are the highest they have been since 2010
  • In an interview with Bloomberg, JP Morgan CEO Jamie Dimon warns of about the potential for 4% yields on the US 10-year
  • Italian 10-year government bond yields are up 9.6 basis points to 1.851% after efforts to form a coalition government failed
  • Aussie government bonds are inching upward against with the yield on the 10-year Aussie down another 1.6 basis points to 2.736%
  • European equites down across the board with Euro Stoxx 600 -0.27%, DAX -0.58%, CAC40 -0.59%, and the FTSE 100 -0.04% trading near session lows. The energy sector is weighing heavily on European markets
  • Asian equities broadly higher, led by sharp advances in the Hang Seng (+1.36%), while the Nikkei 225 rose 0.36% after yesterday’s decline. The information technology (+3.12%) sector is the most significant outperformer in the Hang Seng
  • Australian equities posted gains with the ASX 200 +0.12%, with strength in financials and healthcare overcoming weakness in energy to pull market higher
  • Reportedly the New York Stock Exchange (NYSE) is considering letting customers purchase Bitcoin via a one-day swap contract with the NYSE backing the transaction
  • The US Federal Reserve Bank of San Francisco released an economic letter suggesting Bitcoin’s collapse can be explained by the introduction of Bitcoin Futures, allowing skeptics to short Bitcoin (see source below*)
  • Cloud-based company, Oracle, is working with the Banco de Chile to log inter-bank transactions on a hyperledger and is also using blockchain technology to assist Nigeria with its custom and import duties
  • Bytecoin (BCN) has experienced an extremely sharp rally since our “Buy” signal was produced; the cryptocurrency is up ~142% during the 3-day period

*Source: US Federal Reserve Bank of San Francisco Bitcoin Futures Research


 

S&P 500 Sector Performance 

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

DXC Technology Company - 6.02% off its 52wkH on 03/20/2018, reports earnings on 05/24/2018

Express Scripts Holding Company - 18.08% off its 52wkH on 03/08/2018, reports earnings on 07/25/2018

Global Brass and Copper Holdings, Inc - 14.93% off its 52wkH on 11/02/2017, reports earnings on 08/02/2018

Kohl's Corporation - 13.10% off its 52wkH on 02/27/2018, reports earnings on 05/22/2018

Lam Research Corporation - 17.63% off its 52wkH on 03/13/2018, reports earnings on 07/26/2018

Louisiana-Pacific Corporation - 9.81% off its 52wkH on 04/17/2018, reports earnings on 05/07/2018

Macy's, Inc. - 7.40% off its 52wkH on 04/27/2018, reports earnings on 05/16/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Comcast (CMCS.A) is reportedly preparing a bid to challenge Disney’s (DIS) deal, worth $52.4 billion, to acquire 21st Century Fox (FOXA). Comcast’s rival offer is estimated to be worth nearly $60 billion.

Deutsche Post AG (XTRA:DPW) reports disappointing 1Q2018 results that missed Consensus estimate on both EBIT and Revenues.  Deutsche Post (DPW GR) is -6.0% this morning.

Discovery, Inc. (DISC.A) reports disappointing 1Q2018 earnings results which were below investor expectations driven by losses associated with the acquisition of Scripps Networks.  Discovery Communications (DISC.A) is not trading in pre-market at the moment.

Dish Network (DISH) reported 1Q2018 Eps that was in-line with estimates ($0.70 vs $0.70 projected).

Henry Schein (HSIC) is reports 1Q2018 results that beat Street estimates for both top-line and EPS.  Henry Schein (HSIC) is not trading in pre-market.

Intesa Sapaolo (BIT:ISP) reports 1Q2018 earnings results that are ahead of estimates.  Intesa Sapaolo (ISM IM) sees the dividend payout ratio at 85% for CY2018.  Intesa Sapaolo (ISM IM) is down 1.9% this AM.

Jacobs Engineering Group (JEC) reports positive 1Q2018 earnings results well ahead of Consensus expectations on a strong top-line growth.  Jacobs Engineering (JEC) management increased CY2018 guidance to USD$4.00 – USD$4.40; Consensus is currently at USD$4.01.  In pre-market trading, Jacobs Engineering (JEC) is +1.4%.

Lockheed Martin (LMT) F-35 jets are once again being accepted by the US Department of Defense. Previous disputes over which party was liable for covering the cost of fixing a production error had stalled the deal.

Royal Dutch Shell (ENXTAM:RDSA) has agreed to sell the entirety of its stake in subsidiary Canadian Natural Resources for $3.3 billion, as Royal Dutch Shell continues its plan to divest up to $30 billion worth of assets.

Takeda Pharmaceuticals (TSE:4502) has agreed to acquire UK based rival Shire PLC (LSE:SHP) for $62.4 billion.

 

Major companies reporting earnings over the next 24 hours:

CA, Inc. (CA)

Electronic Arts (EA)

Marriot International (MAR)

Occidental Petroleum (OXY)

Walt Disney (DIS)

Cryptocurrencies Today

Stock Movers

Conviction Buy Winners and Losers
Winners  Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Altaba Inc. AABA Information Technology Internet Software and Services 3.60% 7.29% 7.85%
ICU Medical, Inc. ICUI Healthcare Healthcare Supplies 2.11% 2.66% 22.38%
Allison Transmission Holdings, Inc. ALSN Industrials Construction Machinery and Heavy Trucks 2.00% 4.31% -2.83%
Sysco Corporation SYY Consumer Staples Food Distributors 1.91% 1.07% 4.53%
Micron Technology, Inc. MU Information Technology Semiconductors 1.89% 5.64% 17.90%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Dollar General Corporation DG Consumer Discretionary General Merchandise Stores -1.62% -2.49% -2.62%
Ingredion Incorporated INGR Consumer Staples Agricultural Products -1.56% -5.87% -7.91%
Colgate-Palmolive Company CL Consumer Staples Household Products -1.40% -0.51% -3.69%
Lam Research Corporation LRCX Information Technology Semiconductor Equipment -0.93% 1.90% 4.14%
Darden Restaurants, Inc. DRI Consumer Discretionary Restaurants -0.99% -0.09% -1.02%

Source: S&P Capital IQ

Conviction Short Winners and Losers
Winners Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Overstock.com, Inc. OSTK Consumer Discretionary Internet and Direct Marketing Retail -3.34% -3.34% -1.18%
Energous Corporation WATT Industrials Electrical Components and Equipment -3.03% -1.32% -0.33%
Formula One Group FWON.K Consumer Discretionary Movies and Entertainment -2.83% 7.05% 8.06%
KKR & Co. L.P. KKR Financials Asset Management and Custody Banks -1.78% 5.07% 7.88%
Bunge Limited BG Consumer Staples Agricultural Products -1.60% -5.36% -3.97%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
GrafTech International Ltd. EAF Industrials Electrical Components and Equipment 8.71% 10.12% 0.00%
Pure Storage, Inc. PSTG Information Technology Technology Hardware, Storage and Peripherals 7.73% 11.67% 42.37%
Acacia Communications, Inc. ACIA Information Technology Communications Equipment 5.70% 6.65% -14.52%
Alnylam Pharmaceuticals, Inc. ALNY Healthcare Biotechnology 5.49% 8.22% -23.32%
Roku, Inc. ROKU Consumer Discretionary Consumer Electronics 5.13% -0.57% -35.94%

Source: S&P Capital IQ

Events Calendar 

Company Name Ticker Event Date Event Type Q-Factor Score
AECOM ACM 5/8/2018 Earnings Release Date US Large-Cap: B, US Industrials: A
Energen Corporation EGN 5/8/2018 Earnings Release Date US Large-Cap: D
Haemonetics Corporation HAE 5/8/2018 Earnings Release Date US Large-Cap: B
Aramark ARMK 5/8/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Discovery, Inc. DISCA 5/8/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Jones Lang LaSalle Incorporated JLL 5/8/2018 Earnings Release Date US Large-Cap: C
Camping World Holdings, Inc. CWH 5/8/2018 Earnings Release Date US Large-Cap: F, US Consumer Discretionary: D
Gartner, Inc. IT 5/8/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Loxo Oncology, Inc. LOXO 5/8/2018 Earnings Release Date US Large-Cap: D
Broadridge Financial Solutions, Inc. BR 5/8/2018 Earnings Release Date US Large-Cap: B, US Information Technology: B
Envision Healthcare Corporation EVHC 5/8/2018 Earnings Release Date US Large-Cap: C
The Hain Celestial Group, Inc. HAIN 5/8/2018 Earnings Release Date US Large-Cap: B, US Consumer Staples: D
Microchip Technology Incorporated MCHP 5/8/2018 Earnings Release Date US Large-Cap: B, US Information Technology: B
Zebra Technologies Corporation ZBRA 5/8/2018 Earnings Release Date US Large-Cap: B, US Information Technology: B
Henry Schein, Inc. HSIC 5/8/2018 Earnings Release Date US Large-Cap: C
Martin Marietta Materials, Inc. MLM 5/8/2018 Earnings Release Date US Large-Cap: C
Summit Materials, Inc. SUM 5/8/2018 Earnings Release Date US Large-Cap: C
US Foods Holding Corp. USFD 5/8/2018 Earnings Release Date US Large-Cap: A, US Consumer Staples: B
DISH Network Corporation DISH 5/8/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
Sangamo Therapeutics, Inc. SGMO 5/8/2018 Earnings Release Date US Large-Cap: F
KAR Auction Services, Inc. KAR 5/8/2018 Earnings Release Date US Large-Cap: A, US Industrials: A
EPR Properties EPR 5/8/2018 Earnings Release Date US Large-Cap: C
Realty Income Corporation O 5/8/2018 Earnings Release Date US Large-Cap: C
Applied Optoelectronics, Inc. AAOI 5/8/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
Oclaro, Inc. OCLR 5/8/2018 Earnings Release Date US Large-Cap: D, US Information Technology: C
Ligand Pharmaceuticals Incorporated LGND 5/8/2018 Earnings Release Date US Large-Cap: D
Arena Pharmaceuticals, Inc. ARNA 5/8/2018 Earnings Release Date US Large-Cap: F
Clovis Oncology, Inc. CLVS 5/8/2018 Earnings Release Date US Large-Cap: D
The Walt Disney Company DIS 5/8/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
Ichor Holdings, Ltd. ICHR 5/8/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
Overstock.com, Inc. OSTK 5/8/2018 Earnings Release Date US Large-Cap: F, US Consumer Discretionary: F
Planet Fitness, Inc. PLNT 5/8/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
Axon Enterprise, Inc. AAXN 5/8/2018 Earnings Release Date US Large-Cap: F, US Industrials: F
Beacon Roofing Supply, Inc. BECN 5/8/2018 Earnings Release Date US Large-Cap: C, US Industrials: A
Bio-Rad Laboratories, Inc. BIO 5/8/2018 Earnings Release Date US Large-Cap: B
Centennial Resource Development, Inc. CDEV 5/8/2018 Earnings Release Date US Large-Cap: F
Electronic Arts Inc. EA 5/8/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Etsy, Inc. ETSY 5/8/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Fossil Group, Inc. FOSL 5/8/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: D
GoDaddy Inc. GDDY 5/8/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Gulfport Energy Corporation GPOR 5/8/2018 Earnings Release Date US Large-Cap: D
Marriott International, Inc. MAR 5/8/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Monster Beverage Corporation MNST 5/8/2018 Earnings Release Date US Large-Cap: B, US Consumer Staples: D
New Relic, Inc. NEWR 5/8/2018 Earnings Release Date US Large-Cap: F, US Information Technology: C
Plains All American Pipeline, L.P. PAA 5/8/2018 Earnings Release Date US Large-Cap: D
Plains GP Holdings, L.P. PAGP 5/8/2018 Earnings Release Date US Large-Cap: D
ProPetro Holding Corp. PUMP 5/8/2018 Earnings Release Date US Large-Cap: C
TripAdvisor, Inc. TRIP 5/8/2018 Earnings Release Date US Large-Cap: F, US Consumer Discretionary: D
Twilio Inc. TWLO 5/8/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
Two Harbors Investment Corp. TWO 5/8/2018 Earnings Release Date US Large-Cap: C
The Wendy's Company WEN 5/8/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: A
Westar Energy, Inc. WR 5/8/2018 Earnings Release Date US Large-Cap: C
Formula One Group FWON.K 5/8/2018 Estimated Earnings Release Date US Large-Cap: F
Cars.com Inc. CARS 5/8/2018 Estimated Earnings Release Date US Large-Cap: D, US Information Technology: C
CenturyLink, Inc. CTL 5/8/2018 Estimated Earnings Release Date US Large-Cap: D
Diamondback Energy, Inc. FANG 5/8/2018 Estimated Earnings Release Date US Large-Cap: D
Groupon, Inc. GRPN 5/8/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Heron Therapeutics, Inc. HRTX 5/8/2018 Estimated Earnings Release Date US Large-Cap: D
Immunomedics, Inc. IMMU 5/8/2018 Estimated Earnings Release Date US Large-Cap: F
The Middleby Corporation MIDD 5/8/2018 Estimated Earnings Release Date US Large-Cap: B, US Industrials: C
Roku, Inc. ROKU 5/8/2018 Earnings Release Date US Large-Cap: F
Synaptics Incorporated SYNA 5/8/2018 Earnings Release Date US Large-Cap: D, US Information Technology: C
IMAX China Holding, Inc. SEHK:1970 5/8/2018 Estimated Earnings Release Date China All-Cap: C
Uni-President China Holdings Ltd SEHK:220 5/8/2018 Estimated Earnings Release Date China All-Cap: B
Hong Kong Exchanges and Clearing Limited SEHK:388 5/8/2018 Earnings Release Date China All-Cap: A
Yuexiu Real Estate Investment Trust SEHK:405 5/8/2018 Estimated Earnings Release Date China All-Cap: B
Sun Art Retail Group Limited SEHK:6808 5/8/2018 Estimated Earnings Release Date China All-Cap: C
Beijing Capital International Airport Company Limited SEHK:694 5/8/2018 Estimated Earnings Release Date China All-Cap: B
PCCW Limited SEHK:8 5/8/2018 Estimated Earnings Release Date China All-Cap: B
Evershine Group Holdings Limited SEHK:8022 5/8/2018 Estimated Earnings Release Date China All-Cap: C
ChinaAMC ETF Series - ChinaAMC CSI 300 Index ETF SEHK:83188 5/8/2018 Estimated Earnings Release Date China All-Cap: D
Semiconductor Manufacturing International Corporation SEHK:981 5/8/2018 Earnings Release Date China All-Cap: D
Ctrip.com International, Ltd. CTRP 5/8/2018 Estimated Earnings Release Date China All-Cap: D
Weibo Corporation WB 5/8/2018 Earnings Release Date China All-Cap: A