Morning Quant Ride

May 10, 2018

Your Key Morning Highlights

  • US equity index futures are mixed this morning with Dow Jones minis flat while S&P500 minis +0.8% and Nasdaq 100 minis +0.13%
  • 3 American citizens were released by North Korea ahead of the meeting between Supreme Leader of North Korea Kim Jong-Un and US President Donald Trump
  • Weekly Jobless Claims, Consumer Price Index, and Real Weekly and Hourly Earnings will be reported at 8:30 today
  • The VIX is currently at 13.59.  Last Thursday it closed at 15.78.
  • Oil prices continue their rally from yesterday with WTI up 0.50% to USD$71.48/barrel this AM
  • The spread between Brent and WTI is currently around USD$5.78/barrel, close to its 3-year high
  • European stocks are little changed with the Euro Stoxx 600 -0.23%
  • 2/3s of  European stocks have reported 1Q2018 earnings results and in aggregate, the earnings results have been positive according to JP Morgan. EPS growth has been north of 10%.
  • Asian stocks closed positive with the Nikkei 225 +0.39% and the Hang Seng +0.89%
  • The rally in Hong Stocks was the fourth day of positive gains which is the longest streak in over a month
  • US Treasury curve is relatively unchanged with the yield on the 10-year currently at 2.970%.
  • UK 10-year GILT yields are up 3.2 basis points to 1.423%
  • USD$ is weaker this AM with the AUD$, EUR€, CHF, and ZAR driving the move in the USD$.  GBP£ is the only Major down against the USD$.
  • Venture Capitalist Chamath Palihapitiya, a Buffett disciple, has said that Buffett is wrong about Bitcoin since Bitcoin is not correlated with the rest of the market, therefore Bitcoin can be a hedge to traditional finance
  • Canaan Creative, a giant in the Bitcoin mining industry is planning its USD$1bn IPO in Hong Kong instead of the US and if successful, the company will be the first blockchain company to be listed on the Hong Kong bourse
  • Dash will now be available for instantaneous merchant transactions via Paycent, a hybrid mobile wallet for fiat and digital assets. The app will be available via the Apple and Google Play Store
  • Major cryptocurrencies are slightly positive today with Bitcoin up 0.19% at USD$9321.70 from yesterday’s UTC close. Quantamize’s Machine Learning Crypto Signal has 7 out of 30 cryptocurrencies as Buys

S&P 500 Sector Performance

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

Allison Transmission Holdings, Inc. - 8.16% off its 52wkH on 10/31/2017, reports earnings on 07/27/2018

CSG Systems International, Inc. - 20.14% off its 52wkH on 02/21/2018, reports earnings on 07/31/2018

Dollar General Corporation - 11.62% off its 52wkH on 01/29/2018, reports earnings on 05/29/2018

Finjan Holdings, Inc. - 30.30% off its 52wkH on 06/23/2017, reports earnings on 05/16/2018

International Business Machines Corporation - 16.67% off its 52wkH on 01/18/2018, reports earnings on 07/18/2018

Jabil Inc. - 13.66% off its 52wkH on 03/19/2018, reports earnings on 06/12/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Amazon (AMZN) and Sears Holding Corp (SHLD) announced a partnership yesterday. Sears Auto will now offer Amazon customers a Ship-to-Store tire solution. Sears shares rallied 15.94% yesterday.

Ford (F) is halting production of its F-150 trucks after a fire took place at a parts supplier. The F-150 is one of Ford’s most popular vehicles. Ford is expecting this to hurt near-term profit, but the company did not lower full-year guidance.

The Royal Bank of Scotland Group (LSE:RBS) has agreed to pay $4.9 billion to the US Department of Justice for there role in selling faulty mortgage-backed securities. The fine was less than expected, and RBS is preparing to pay dividends for the first time in 10 years.

UniCredit (BIT:UCG)  reports 1Q2018 earnings results which beat analyst expectations.  UniCredit (UCG IM) management sees fee growth along with further cost reductions as important drivers of growth going forward.  UniCredit (UCG IM) is up 1.5% this morning.

Major companies reporting earnings over the next 24 hours:

Flowserve (FLS)

News Corp (NWSA)

NVIDIA (NVDA)

Symantec (SYMC)

Cryptocurrencies Today

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
Micron Technology, Inc. MU Information Technology Semiconductors 5.02% 7.21% 24.05%
Pool Corporation POOL Consumer Discretionary Distributors 3.12% 3.61% 14.48%
US Foods Holding Corp. USFD Consumer Staples Food Distributors 3.07% 2.21% 7.33%
HP Inc. HPQ Information Technology Technology Hardware, Storage and Peripherals 2.82% 4.15% 7.47%
Intercontinental Exchange, Inc. ICE Financials Financial Exchanges and Data 2.57% 2.31% 1.86%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Louisiana-Pacific Corporation LPX Materials Forest Products -2.29% -4.91% -4.94%
Reinsurance Group of America, Incorporated RGA Financials Reinsurance -2.04% -1.27% 0.80%
Motorola Solutions, Inc. MSI Information Technology Communications Equipment -1.91% -2.08% -3.69%
Black Knight, Inc. BKI Information Technology Data Processing and Outsourced Services -1.53% -0.27% 1.78%
Mohawk Industries, Inc. MHK Consumer Discretionary Home Furnishings -1.43% -2.76% 0.24%

Source: S&P Capital IQ

Conviction Short Winners and Losers

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Winners Ticker Sector Industry 1 Day Return 5 Day Return  YTD
American Airlines Group Inc. AAL Industrials Airlines -3.49% -3.17% -3.33%
Formula One Group FWON.K Consumer Discretionary Movies and Entertainment -2.82% -6.55% 3.93%
GrafTech International Ltd. EAF Industrials Electrical Components and Equipment -2.53% 5.61% 8.45%
Spirit Airlines, Inc. SAVE Industrials Airlines -2.37% -1.35% 0.50%
Camping World Holdings, Inc. CWH Consumer Discretionary Automotive Retail -1.95% -14.48% -21.17%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
TripAdvisor, Inc. TRIP Consumer Discretionary Internet and Direct Marketing Retail 22.80% 23.59% 38.19%
Axon Enterprise, Inc. AAXN Industrials Aerospace and Defense 22.33% 22.60% 106.11%
New Relic, Inc. NEWR Information Technology Internet Software and Services 14.08% 20.11% 52.29%
Spark Therapeutics, Inc. ONCE Healthcare Biotechnology 8.96% 7.57% 47.84%
Roku, Inc. ROKU Consumer Discretionary Consumer Electronics 8.94% 14.36% -30.32%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
GDS Holdings Limited GDS 5/10/2018 Earnings Release Date China All-Cap: B
Duke Energy Corporation DUK 5/10/2018 Earnings Release Date US Large-Cap: C
Worldpay, Inc. WP 5/10/2018 Earnings Release Date US Large-Cap: D, US Information Technology: C
AMC Networks Inc. AMCX 5/10/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
Charles River Laboratories International, Inc. CRL 5/10/2018 Earnings Release Date US Large-Cap: B
Meredith Corporation MDP 5/10/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Colony NorthStar, Inc. CLNS 5/10/2018 Earnings Release Date US Large-Cap: C
LaSalle Hotel Properties LHO 5/10/2018 Earnings Release Date US Large-Cap: F
Ubiquiti Networks, Inc. UBNT 5/10/2018 Earnings Release Date US Large-Cap: F, US Information Technology: D
News Corporation NWSA 5/10/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
HubSpot, Inc. HUBS 5/10/2018 Earnings Release Date US Large-Cap: D, US Information Technology: C
Uniti Group Inc. UNIT 5/10/2018 Earnings Release Date US Large-Cap: F
Nektar Therapeutics NKTR 5/10/2018 Earnings Release Date US Large-Cap: F
Symantec Corporation SYMC 5/10/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
The Trade Desk, Inc. TTD 5/10/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Yelp Inc. YELP 5/10/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
Global Blood Therapeutics, Inc. GBT 5/10/2018 Estimated Earnings Release Date US Large-Cap: D
Pilgrim's Pride Corporation PPC 5/10/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Staples: C
CK Hutchison Holdings Limited SEHK:1 5/10/2018 Estimated Earnings Release Date China All-Cap: C
Hang Lung Properties Limited SEHK:101 5/10/2018 Estimated Earnings Release Date China All-Cap: C
CK Asset Holdings Limited SEHK:1113 5/10/2018 Estimated Earnings Release Date China All-Cap: B
Haier Electronics Group Co., Ltd. SEHK:1169 5/10/2018 Estimated Earnings Release Date China All-Cap: A
SITC International Holdings Company Limited SEHK:1308 5/10/2018 Estimated Earnings Release Date China All-Cap: B
Hua Hong Semiconductor Limited SEHK:1347 5/10/2018 Estimated Earnings Release Date China All-Cap: B
Pacific Basin Shipping Limited SEHK:2343 5/10/2018 Estimated Earnings Release Date China All-Cap: B
China Everbright International Limited SEHK:257 5/10/2018 Estimated Earnings Release Date China All-Cap: B
Tracker Fund Of Hong Kong SEHK:2800 5/10/2018 Estimated Earnings Release Date China All-Cap: C
iShares Asia Trust - iShares MSCI China Index ETF SEHK:2801 5/10/2018 Estimated Earnings Release Date China All-Cap: B
Anton Oilfield Services Group SEHK:3337 5/10/2018 Estimated Earnings Release Date China All-Cap: B
Sinotrans Shipping Limited SEHK:368 5/10/2018 Estimated Earnings Release Date China All-Cap: C
Beijing Enterprises Holdings Limited SEHK:392 5/10/2018 Estimated Earnings Release Date China All-Cap: C
Shimao Property Holdings Limited SEHK:813 5/10/2018 Estimated Earnings Release Date China All-Cap: B
WT Group Holdings Limited SEHK:8422 5/10/2018 Earnings Release Date China All-Cap: D
We Solutions Limited SEHK:860 5/10/2018 Earnings Release Date China All-Cap: D
Branding China Group Limited SEHK:863 5/10/2018 Estimated Earnings Release Date China All-Cap: D
Chaowei Power Holdings Limited SEHK:951 5/10/2018 Estimated Earnings Release Date China All-Cap: D
Yirendai Ltd. YRD 5/10/2018 Estimated Earnings Release Date China All-Cap: C