Morning Quant Ride

May 15, 2018

Your Key Morning Highlights

US Markets 
  • US equity index futures are declining this morning with Dow Jones minis -0.33%, S&P500 minis -0.23% and Nasdaq 100 minis -0.31%
  • Brent-WTI differential has widened to USD$7.42/barrel, close to its 2-year high of USD7.64/barrel that was reached on 12/12/17
  • The VIX is at 13.15 in pre-market after closing at 12.93 yesterday
  • US$ Index is +0.21% on strength with the EUR€ -0.26% and GBP£ -0.20%, ZAR -1.37% and JPY¥ -0.23%
  • Yield on the US 10-year has broken above 3.0% and is currently at 3.017%
International Markets
  • European stocks are little changed this morning with the Euro Stoxx 600 +0.03%
  • Asian markets closed down with the Nikkei 225 -0.21%, Hang Seng -1.23%, Hang Seng China Enterprise -0.83% and the ASX 200 -0.61%
  • Chinese retail sales grew +9.4% in April below expectations of +10.0%
  • Yields on Aussie sovereigns are up with the Aussie 10-year yield +5.7 basis points to 2.825% -- a reversal on the trend the past two weeks
Cryptos 
  • NASDAQ (NDAQ) in partnership with DX.Exchange will be launching a cryptocurrency exchange platform in June. This platform intends to offer a robust ecosystem for OTC derivatives and crypto tokens
  • Sharps Pixley announced that they are now officially allowing customers to convert gold directly into bitcoin via blockchain payment processor BitPay. This new arrangement allows clients to trade either way between bitcoin and gold
  • The CME group (CME) has launched two new indices that will track Ether, the second largest cryptocurrency. The firm partnered with London based Crypto Facilities to create a CME CF Ether-Dollar Reference Rate and Real Time Index

*Data in Price Return

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 - 4.89% off its 52wkH on 03/20/2018, reports earnings on 05/24/2018

Global Brass and Copper Holdings, Inc. - 16.58% off its 52wkH on 11/02/2017, reports earnings on 08/02/2018

Reinsurance Group of America, Incorporated - 9.06% off its 52wkH on 11/29/2017, reports earnings on 07/25/2018

Ruth's Hospitality Group, Inc. - 5.91% off its 52wkH on 05/07/2018, reports earnings on 07/27/2018

SP Plus Corporation - 15.47% off its 52wkH on 01/22/2018, reports earnings on 08/01/2018

The Allstate Corporation - 9.40% off its 52wkH on 12/29/2017, reports earnings on 08/02/2018

The J. M. Smucker Company - 16.81% off its 52wkH on 06/08/2017, reports earnings on 06/07/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

According to the California Department of Motor Vehicles, Apple (AAPL) has 55 self-driving vehicles registered in the state, as well as 83 drivers permitted to conduct tests on the California roads.

French bank Credit Agricole SA (ENXTPA:ACA) reported 1Q2018 net income that was weaker than expected (€856 million vs €880 million), with revenue also below projections (€4.91 billion vs €5.02 billion forecasted).

Gap Inc (GPS) has offered an apology for an offensive t-shirt it advertised which displayed a map of China that left out several territories claimed by the country. Complaints came from customers reacting to pictures of the t-shirt that were posted on Chinese social media platform Weibo (WB).

International Business Machines (IBM) has entered into a manufacturing agreement with Thycotic, a provider of “privileged access management solutions”. Under the agreement, IBM Security will now offer a improved security focused product, called IBM Security Secret Server, which will be run using Thycotic’s technology.

Home Depot (HD) reports 1Q2018 earnings results which were ahead of Street expectations.  1Q2018 comparable store sales disappoint with Home Depot (HD) reporting +4.2% vs. Consensus of +5.6%.  Home Depot (HD) management blames the softer revenue print on a cooler weather in April and highlights strong sales in May.  In pre-market trading, Home Depot (HD) is down 2.8%.

German energy company RWE AG (DB:RWE) reported 1Q2018 EBIT that was slightly above expectations (€1.42 billion vs €1.38 billion estimate).

Societe Generale SA (ENXTPA:GLE) is reportedly close to acquiring Commerzbank’s (DB:CBK) EMC unit, which deals in exchange-traded products and market-making operations.

Symantec Corp (SYMC) has been upgraded to a hold rating at Jeffries, with a $22 price target set (up from $20).

Tesla Inc’s (TSLA) price target has been lowered significantly by Morgan Stanley (from $376 to $291), citing tightening margins as one of the key drivers.

Thyssenkrupp (XTRA:TKA) released 2Q2018 net sales that were softly above expectation (€10.75 billion vs 10.70 billion expected), but the company’s EBIT for 2Q fell short of consensus (€500 million vs €502.2 million).

Vodafone Group Plc (LSE:VOD) announced that CEO Vittorio Colao will be leaving his position after a decade in the CEO role. The announcement comes after Vodafone’s $22 billion deal last week to acquire cable assets of Liberty Group Plc.

Major companies reporting earnings over the next 24 hours:

Macy’s (M)

Take-Two Entertainment (TTWO)

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 2.28% 3.90% 28.89%
ICU Medical, Inc. ICUI Healthcare Healthcare Supplies 2.19% 6.84% 25.16%
UnitedHealth Group Incorporated UNH Healthcare Managed Healthcare 1.94% 5.97% 10.18%
Five Below, Inc. FIVE Consumer Discretionary Specialty Stores 1.80% 1.73% 9.00%
AbbVie Inc. ABBV Healthcare Biotechnology 1.64% 4.66% 9.49%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Darden Restaurants, Inc. DRI Consumer Discretionary Restaurants -3.72% -5.30% -6.34%
Belden Inc. BDC Information Technology Electronic Components -2.36% -6.53% -11.53%
Louisiana-Pacific Corporation LPX Materials Forest Products -2.16% 0.85% -4.13%
Arthur J. Gallagher & Co. AJG Financials Insurance Brokers -1.73% -1.62% -3.49%
Marriott Vacations Worldwide Corporation VAC Consumer Discretionary Hotels, Resorts and Cruise Lines -1.43% -1.41% -3.77%

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
2U, Inc. TWOU Information Technology Internet Software and Services -5.42% 0.09% 15.24%
Okta, Inc. OKTA Information Technology Internet Software and Services -4.39% -2.16% 11.77%
Mattel, Inc. MAT Consumer Discretionary Leisure Products -4.64% -2.07% -4.12%
Dropbox, Inc. DBX Information Technology Internet Software and Services -4.22% -4.59% -0.50%
Esperion Therapeutics, Inc. ESPR Healthcare Biotechnology -3.15% -2.06% -41.61%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Scientific Games Corporation SGMS Consumer Discretionary Casinos and Gaming 11.15% 17.31% 15.59%
Acacia Communications, Inc. ACIA Information Technology Communications Equipment 8.73% 9.88% -5.47%
Overstock.com, Inc. OSTK Consumer Discretionary Internet and Direct Marketing Retail 8.21% 10.94% -38.11%
Ceridian HCM Holding Inc. CDAY Information Technology Application Software 6.11% 8.99% 0.00%
Caesars Entertainment Corporation CZR Consumer Discretionary Casinos and Gaming 5.46% 5.02% -0.79%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
RYB Education, Inc. RYB 5/15/2018 Earnings Release Date China All-Cap: F
Seven Stars Cloud Group, Inc. SSC 5/15/2018 Earnings Release Date China All-Cap: D
Eagle Materials Inc. EXP 5/15/2018 Earnings Release Date US Large-Cap: A
The Home Depot, Inc. HD 5/15/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
Uni-President China Holdings Ltd SEHK:220 5/15/2018 Estimated Earnings Release Date China All-Cap: B
Yuexiu Real Estate Investment Trust SEHK:405 5/15/2018 Estimated Earnings Release Date China All-Cap: B
Sun Art Retail Group Limited SEHK:6808 5/15/2018 Estimated Earnings Release Date China All-Cap: C
The Progressive Corporation PGR 5/15/2018 Earnings Release Date US Large-Cap: A
Take-Two Interactive Software, Inc. TTWO 5/15/2018 Earnings Release Date US Large-Cap: D, US Information Technology: C
Towngas China Company Limited SEHK:1083 5/15/2018 Estimated Earnings Release Date China All-Cap: B
CSPC Pharmaceutical Group Limited SEHK:1093 5/15/2018 Estimated Earnings Release Date China All-Cap: A
Johnson Electric Holdings Limited SEHK:179 5/15/2018 Earnings Release Date China All-Cap: C
Alibaba Health Information Technology Limited SEHK:241 5/15/2018 Earnings Release Date China All-Cap: C
Cathay Pacific Airways Limited SEHK:293 5/15/2018 Estimated Earnings Release Date China All-Cap: B
Tencent Holdings Limited SEHK:700 5/15/2018 Earnings Release Date China All-Cap: A
Value Partners Group Limited SEHK:806 5/15/2018 Estimated Earnings Release Date China All-Cap: B
Tiangong International Company Limited SEHK:826 5/15/2018 Estimated Earnings Release Date China All-Cap: B
Longfor Properties Co. Ltd. SEHK:960 5/15/2018 Estimated Earnings Release Date China All-Cap: B
Noah Holdings Limited NOAH 5/15/2018 Estimated Earnings Release Date China All-Cap: C
China Dongxiang (Group) Co., Ltd. SEHK:3818 5/15/2018 Estimated Earnings Release Date China All-Cap: D
NetEase, Inc. NTES 5/16/2018 Earnings Release Date China All-Cap: C
Macy's, Inc. M 5/16/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: A
Cisco Systems, Inc. CSCO 5/16/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Jack in the Box Inc. JACK 5/16/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
Cowell e Holdings Inc. SEHK:1415 5/16/2018 Estimated Earnings Release Date China All-Cap: D
Q Technology (Group) Company Limited SEHK:1478 5/16/2018 Estimated Earnings Release Date China All-Cap: C
Melco International Development Limited SEHK:200 5/16/2018 Estimated Earnings Release Date China All-Cap: A
MTR Corporation Limited SEHK:66 5/16/2018 Estimated Earnings Release Date China All-Cap: B
Giordano International Limited SEHK:709 5/16/2018 Earnings Release Date China All-Cap: A
Applied Materials, Inc. AMAT 5/16/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: B
Nordstrom, Inc. JWN 5/16/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Canvest Environmental Protection Group Company Limited SEHK:1381 5/16/2018 Estimated Earnings Release Date China All-Cap: B
Youyuan International Holdings Limited SEHK:2268 5/16/2018 Estimated Earnings Release Date China All-Cap: B
Vtech Holdings Limited SEHK:303 5/16/2018 Estimated Earnings Release Date China All-Cap: C
China Aoyuan Property Group Limited SEHK:3883 5/16/2018 Estimated Earnings Release Date China All-Cap: B
China Grand Pharmaceutical and Healthcare Holdings Limited SEHK:512 5/16/2018 Estimated Earnings Release Date China All-Cap: B
Techtronic Industries Company Limited SEHK:669 5/16/2018 Estimated Earnings Release Date China All-Cap: B
Truly International Holdings Limited SEHK:732 5/16/2018 Estimated Earnings Release Date China All-Cap: D
Baozun Inc. BZUN 5/16/2018 Estimated Earnings Release Date China All-Cap: A
Yuexiu Transport Infrastructure Limited SEHK:1052 5/16/2018 Estimated Earnings Release Date China All-Cap: A