morning-quant-ride

Morning Brief

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

Morning Quant Ride

May 11, 2018

Your Key Morning Highlights

  • US equity index futures are edging up this morning with Dow Jones minis flat while S&P500 minis +0.8% and Nasdaq 100 minis +0.13%
  • Yesterday’s CPI print for April is calming investor anxiety of an overly Hawkish US Fed.  Investors are awaiting the U of Mich Sentiment preliminary result for May at 10am today.
  • VIX is down to 13.17 ahead of NY Open after closing at 13.36 yesterday
  • European stocks are flat ahead of the NY Open after 6 straight (trading) days of gains on limited news flow
  • German DAX index is biggest laggard among European indices, down 0.30%
  • Sentiment towards the potential for growth in European stocks earnings in 2H2018 is picking up amid a softening EUR€ and CHF
  • Asian stocks closed up with the Nikkei 225 1.16%, Hang Seng +1.02% and Hang Seng China Enterprise +0.91%
  • Down Under, Aussie stocks were relatively unchanged with the ASX 200 -0.04%
  • US Treasury curve is relatively unchanged this morning with the yield on the US 10-year below 3.0% at 2.957%
  • Yields on Italian sovereigns are shifting downwards this morning with the yield on the 10-year Italian bond down 5.7 basis points to 1.869%
  • USD$ is weaker this AM with both the Majors and EM FX rallying against the Greenback. Notable movers include: EUR€ +0.41%, AUD$ +0.33% and BRL +1.21%.
  • Major cryptocurrencies have been trading lower over the past 24-hours as there have been rumors that a MtGox custodian is selling again and Nvidia said on it expects its cryptocurrency-related revenue to fall 65% in the next quarter. Bitcoin is trading at USD$8,739.00 from USD$9,900 just last week
  • Crypto Facillities announced it will have tradeable futures contracts for Ethereum (ETH) beginning today in the UK at 11AM EST
  • Ripple (XRP) reported the cross-border payment platform xRapid took just a few seconds to successfully execute a cross-border transaction

S&P 500 Sector Performance

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

Axcelis Technologies, Inc. - 38.33% off its 52wkH on 11/24/2017, reports earnings on 08/02/2018

CVS Health Corporation - 25.67% off its 52wkH on 09/19/2017, reports earnings on 08/09/2018

Hewlett Packard Enterprise Company - 9.37% off its 52wkH on 03/06/2018, reports earnings on 05/22/2018

Kohl's Corporation - 12.88% off its 52wkH on 02/27/2018, reports earnings on 05/22/2018

Macy's, Inc. - 9.34% off its 52wkH on 04/27/2018, reports earnings on 05/16/2018

The Allstate Corporation - 8.79% off its 52wkH on 12/29/2017, reports earnings on 08/02/2018

The TJX Companies, Inc. - 4.55% 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.

Amazon (AMZN) will reportedly stop buying Google shopping advertisements as competition continues to increase between the two firms.

Baidu’s (BIDU) ADR’s have been upgraded to market perform by Bernstein.

Banca Monte dei Pasche’s (BIT:BMPS), the troubled Italian bank, released 1Q2018 net interest income which came in higher than expected (€ 421.5 million vs €416.3 million projected), relying on cost cuts and lower bad-debt provisions to post an unexpected first quarter profit.

Burberry Group Plc (LSE:BRBY) is accusing Target (TGT) of imitating its trademark plaid pattern and is demanding $2 million in reparations for each infringement.

Cisco (CSCO) has stopped advertising on the YouTube platform over concerns about its ads being connected with sensitive content. Cisco’s ads were reportedly running on extremist YouTube channels, according to a CNN report in April.

JPMorgan (JPM) has named Chris Berthe as its head of global cash execution and Dennis Fitzgerald as the head of global cash risk as JPMorgan seeks to overhaul its stock trading business unit.

NFON (DB:NFN) is currently trading at €13.27 in its first day of treading on the Frankfurt Stock Exchange after its IPO at €12/share.

Panasonic (TSE:6752) is reportedly having hesitations about engaging in new investments with Tesla (TSLA). The companies had planned to establish a factory in China which would produce both autos and lithium ion battery cells.

Unione di Banche Italiane (BIT:UBI) reported 1Q2018 net income (€117.7 million) and revenue (€902.3) that both beat estimate. Expectations were for net income of €88.0 million and revenue of €901.9 million.

 

Major companies reporting earnings through next Monday:

Agilent Technology (A)

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
ICU Medical, Inc. ICUI Healthcare Healthcare Supplies 3.89% 1.55% 21.71%
Express Scripts Holding Company ESRX Healthcare Healthcare Services 3.40% 1.05% -4.93%
Micron Technology, Inc. MU Information Technology Semiconductors 3.23% 10.68% 28.06%
Motorola Solutions, Inc. MSI Information Technology Communications Equipment 2.81% 0.67% 20.38%
Lam Research Corporation LRCX Information Technology Semiconductor Equipment 2.15% 4.37% 10.83%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Sysco Corporation SYY Consumer Staples Food Distributors -1.20% 0.72% 0.32%
Dollar Tree, Inc. DLTR Consumer Discretionary General Merchandise Stores -0.99% -1.06% -3.41%
CME Group Inc. CME Financials Financial Exchanges and Data -0.94% 0.50% 1.45%
Marriott Vacations Worldwide Corporation VAC Consumer Discretionary Hotels, Resorts and Cruise Lines -0.77% 0.77% -3.14%
Intercontinental Exchange, Inc. ICE Financials Financial Exchanges and Data -0.68% 1.61% -1.49%

Source: S&P Capital IQ

Conviction Short Winners and Losers

On Mobile/Tablet scroll to the right.

Winners Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Pandora Media, Inc. P Information Technology Internet Software and Services -4.53% 3.92% 27.63%
Coty Inc. COTY Consumer Staples Personal Products -3.40% -9.77% -16.43%
The Medicines Company MDCO Healthcare Pharmaceuticals -3.34% -2.01% -2.99%
Smartsheet Inc. SMAR Information Technology Application Software -2.81% 9.90% 7.51%
Esperion Therapeutics, Inc. ESPR Healthcare Biotechnology -2.73% -2.26% -42.01%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Ubiquiti Networks, Inc. UBNT Information Technology Communications Equipment 11.03% 12.55% 14.67%
Array BioPharma Inc. ARRY Healthcare Biotechnology 5.48% 5.71% 12.81%
Scientific Games Corporation SGMS Consumer Discretionary Casinos and Gaming 5.44% 5.23% 3.90%
Box, Inc. BOX Information Technology Internet Software and Services 5.12% 17.56% 35.04%
Centennial Resource Development, Inc. CDEV Energy Oil and Gas Exploration and Production 4.87% 10.61% 3.23%

Source: S&P Capital IQ

Event Calendar 

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
China Lodging Group, Limited HTHT 5/14/2018 Earnings Release Date China All-Cap: A
Agilent Technologies, Inc. A 5/14/2018 Earnings Release Date US Large-Cap: C
Invitation Homes Inc. INVH 5/14/2018 Earnings Release Date US Large-Cap: D
Hollysys Automation Technologies Ltd. HOLI 5/14/2018 Earnings Release Date China All-Cap: C
SIG plc SHI 5/14/2018 Estimated Earnings Release Date China All-Cap: A
Future Land Development Holdings Limited SEHK:1030 5/14/2018 Estimated Earnings Release Date China All-Cap: A
China Lilang Limited SEHK:1234 5/14/2018 Estimated Earnings Release Date China All-Cap: A
Man Wah Holdings Limited SEHK:1999 5/14/2018 Earnings Release Date China All-Cap: D
Huarong Investment Stock Corporation Limited SEHK:2277 5/14/2018 Estimated Earnings Release Date China All-Cap: D
Champion Real Estate Investment Trust SEHK:2778 5/14/2018 Estimated Earnings Release Date China All-Cap: C
CAR Inc. SEHK:699 5/14/2018 Earnings Release Date China All-Cap: C
ChinaNet Online Holdings, Inc. CNET 5/14/2018 Estimated Earnings Release Date China All-Cap: D
Recon Technology, Ltd. RCON 5/14/2018 Estimated Earnings Release Date China All-Cap: F
Vipshop Holdings Limited VIPS 5/14/2018 Estimated Earnings Release Date China All-Cap: B
500.com Limited WBAI 5/14/2018 Estimated Earnings Release Date China All-Cap: C
YY Inc. YY 5/14/2018 Estimated Earnings Release Date China All-Cap: A
Zai Lab Limited ZLAB 5/14/2018 Estimated Earnings Release Date China All-Cap: F
Xunlei Limited XNET 5/14/2018 Estimated Earnings Release Date China All-Cap: C
PPDAI Group Inc. PPDF 5/14/2018 Estimated Earnings Release Date China All-Cap: C
GreenTree Hospitality Group Ltd. GHG 5/14/2018 Earnings Release Date China All-Cap: F
Xinyi Solar Holdings Limited SEHK:968 5/14/2018 Estimated Earnings Release Date China All-Cap: B
Phoenix New Media Limited FENG 5/14/2018 Earnings Release Date China All-Cap: C
SORL Auto Parts, Inc. SORL 5/14/2018 Earnings Release Date China All-Cap: C