Morning Quant Ride

May 16, 2018

Your Key Morning Highlights

US Markets

  • US equity index futures are rallying this morning with Dow Jones minis +0.06%, S&P500 minis +0.08% and Nasdaq 100 minis 0.14%
  • North Korea is threatening to pull out of summit with the US following joint military exercises between South Korea and the US
  • The VIX is sitting 14.49 in pre-market after climbing to 14.63 yesterday
  • SPY OTM May 18 puts are the most heavily traded options in the US this AM
  • US$ Index is +0.32% on strength against the EUR€ -0.39% and GBP£ -0.11%
  • CLP -1.11% against the USD$ this morning on sell-off in Copper this morning - - Copper -1.12%
  • Yield on the US 10-year is sitting at 3.071%, off yesterday’s high of 3.09% -- Fed Funds Futures are implying 3 additional rate hikes in CY2018

International Markets

  • European stocks are trading up this morning with the Euro Stoxx +0.15%, FTSE 100 +0.22%, CAC 40 +0.06% and DAX +0.43%
  • Asian markets closed down with the Nikkei 225 -0.44%, Hang Seng -0.13%, Hang Seng China Enterprise -0.01% and the ASX 200 +0.15%
  • Yields on Italian sovereigns are moving up as the populist parties La Lega and the Five Star Movements are considering a write-down of government debt of USD$300bn
  • Yield on Italian 10-year yield is +10.8 basis points to 2.053%
  • Aussie 10-year yield is +5.8 basis points to 2.879%
  • German 10-year Bund yield is -2 basis points to 0.621%

Cryptos 

  • Coinbase said that it will be upgrading its services to cater to ultrafast traders. This upgrade will make Coinbase one of the first bitcoin exchanges to welcome high frequency trading. High frequency trading accounted for 55% of volume in the US stock market last year
  • HTC is selling a blockchain phone that will be dedicated to decentralized applications and security. The phone will support decentralized applications (Dapps), have a hardware element for cryptocurrency wallets and each phone will be a node
  • Cryptocurrency exchange Bithumb announced it will be adding five new cryptocurrencies to its trading lineup. The newly listed coins are: TenX (PAY), WAX (WAX), Power Ledger (POWR), Loopring (LRC), and Gifto (GTO)
  • Quantamize’s Machine Learning Crypto Signals are on day two of their rolling three day forecast and currently nine cryptocurrencies out of thirty are buys. Most notably, Bitcoin is a “Don’t Own” and has been for the past five days - Bitcoin’s rolling 5D% change is -7.11%.

*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.

Axcelis Technologies, Inc. - 40.76% off its 52wkH on 11/24/2017, reports earnings on 08/02/2018

Brooks Automation, Inc. - 16.59% off its 52wkH on 11/01/2017, reports earnings on 08/01/2018

Intel Corporation - 3.35% off its 52wkH on 04/27/2018, reports earnings on 07/26/2018

KLA-Tencor Corporation - 10.19% off its 52wkH on 03/13/2018, reports earnings on 07/27/2018

Lumentum Holdings Inc. - 14.58% off its 52wkH on 03/12/2018, reports earnings on 08/07/2018

TTM Technologies, Inc. - 18.88% off its 52wkH on 07/19/2017, reports earnings on 08/01/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Alstom SA (ENXTPA:ALO) shares advanced by 4.69% today after reporting stronger than expected FY2017-2018 EBIT (€514 million vs €473 million projected).

Amazon.com (AMZN) has begun to provide members of its Prime premium service with discounts on recently acquired subsidiary Whole Foods products.

Berkshire Hathaway (BRK.A) has doubled its holdings in struggling Israeli drug maker Teva Pharmaceutical (TEVA), brining Berkshire’s total stake in Teva to $822.2 million. Berkshire Hathaway is Teva’s third largest shareholder.

Micro Focus (LSE:MCRO) has provided 1H2018 guidance that was better than expected (-9% to -12% consensus).

Micron Technology’s (MU) stock was raised to an outperform rating at RBC Capital Markets, with a price target set at $80.

Saipem SpA (BIT:SPM) shares are 9.71% higher today after being upgraded to a buy rating at Bernstein.

Starbucks (SBUX) has reportedly revealed a plan to increase the company’s revenue in China by threefold over the next 5 years. Starbucks’ strategy is focused around opening a new store every 15 hour between now and 2022. Starbucks’ goal includes having 6,000 locations in China, above previous targets of 5,000 stores.

Tencent (SEHK:700) posted 1Q2018 profit that exceeded expectations. Net income in 1Q2018 rose to $3.7 billion, a 61% increase on a y/y basis.

Tesla (TSLA) plans to halt production at its factory in California for 6 days to fix issues with the assembly lines for its Model 3 vehicles.

Walmart (WMT) will be launching a “store within a store” as the company’s website will soon feature Lord & Taylor’s flagship online store, with more than 125 brands sold by Lord & Taylor accessible. A partnership between Walmart and Lord & Taylor was announced last November.

Whitehaven Coal Ltd (ASX:WHC) shares closed 4.6% higher, with a price of AUD$5.22, which was the company’s highest price level in 6 years.

Wirecard AG (XTRA:WDI) reported 1Q2018 revenue of €429.4 million, with net profit of €70.8 million

Zoetis Inc (ZTS) has reportedly agreed to acquire medical technology firm Abaxis for $2 billion in an all-cash deal. The transaction values Abaxis’ stock at $83 per share, a 15% premium over yesterday’s closing price.

Major companies reporting earnings over the next 24 hours:

Applied Materials (AMAT) 

Cisco Systems (CSCO)

Macy's (M)

NetEase (NTES)

Take-Two Interactive Software (TTWO)

Walmart (WMT)

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
Assurant, Inc. AIZ Financials Multi-line Insurance 2.80% 2.46% -11.04%
Ollie's Bargain Outlet Holdings, Inc. OLLI Consumer Discretionary General Merchandise Stores 2.63% 5.07% 28.36%
US Foods Holding Corp. USFD Consumer Staples Food Distributors 2.61% 2.31% 9.49%
Belden Inc. BDC Information Technology Electronic Components 2.48% -0.16% -27.63%
Eagle Materials Inc. EXP Materials Construction Materials 2.19% 3.51% -4.56%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Danaher Corporation DHR Healthcare Healthcare Equipment -2.37% -0.92% -0.08%
HP Inc. HPQ Information Technology Technology Hardware, Storage and Peripherals -2.35% -3.12% 2.56%
Berry Global Group, Inc. BERY Materials Metal and Glass Containers -2.21% -2.81% -13.27%
Hill-Rom Holdings, Inc. HRC Healthcare Healthcare Equipment -1.67% -0.45% 2.06%
First American Financial Corporation FAF Financials Property and Casualty Insurance -1.48% -0.76% 3.66%

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
ImmunoGen, Inc. IMGN Healthcare Biotechnology -4.70% 0.10% -6.01%
Axon Enterprise, Inc. AAXN Industrials Aerospace and Defense -4.06% -1.53% 28.23%
Sangamo Therapeutics, Inc. SGMO Healthcare Biotechnology -4.14% 3.08% -4.75%
Zscaler, Inc. ZS Information Technology Systems Software -3.72% -2.73% -8.30%
Roku, Inc. ROKU Consumer Discretionary Consumer Electronics -3.46% -3.89% 4.73%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Mattel, Inc. MAT Consumer Discretionary Leisure Products 6.13% 3.79% -2.08%
GrafTech International Ltd. EAF Industrials Electrical Components and Equipment 4.88% 9.95% 0.00%
The Medicines Company MDCO Healthcare Pharmaceuticals 4.52% 10.04% 17.48%
Nektar Therapeutics NKTR Healthcare Pharmaceuticals 3.05% 7.91% 39.65%
DocuSign, Inc. DOCU Information Technology Internet Software and Services 2.87% 3.29% 0.00%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
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
21Vianet Group, Inc. VNET 5/17/2018 Earnings Release Date China All-Cap: D
The Children's Place, Inc. PLCE 5/17/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
Walmart Inc. WMT 5/17/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: C
J. C. Penney Company, Inc. JCP 5/17/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: D
CK Asset Holdings Limited SEHK:1113 5/17/2018 Estimated Earnings Release Date China All-Cap: B
Anton Oilfield Services Group SEHK:3337 5/17/2018 Estimated Earnings Release Date China All-Cap: B
Sinotrans Shipping Limited SEHK:368 5/17/2018 Estimated Earnings Release Date China All-Cap: C
Branding China Group Limited SEHK:863 5/17/2018 Estimated Earnings Release Date China All-Cap: D
Yirendai Ltd. YRD 5/17/2018 Estimated Earnings Release Date China All-Cap: C
Sino Biopharmaceutical Limited SEHK:1177 5/17/2018 Earnings Release Date China All-Cap: A
KLX Inc. KLXI 5/17/2018 Estimated Earnings Release Date US Large-Cap: C, US Industrials: D
Road King Infrastructure Limited SEHK:1098 5/17/2018 Estimated Earnings Release Date China All-Cap: B
MMG Limited SEHK:1208 5/17/2018 Estimated Earnings Release Date China All-Cap: B
Yuexiu Property Company Limited SEHK:123 5/17/2018 Estimated Earnings Release Date China All-Cap: B
Swire Properties Limited SEHK:1972 5/17/2018 Estimated Earnings Release Date China All-Cap: C
Beijing Capital Land Ltd. SEHK:2868 5/17/2018 Estimated Earnings Release Date China All-Cap: D
ChinaCache International Holdings Ltd. CCIH 5/17/2018 Estimated Earnings Release Date China All-Cap: D
Jumei International Holding Limited JMEI 5/17/2018 Estimated Earnings Release Date China All-Cap: D
Fang Holdings Limited SFUN 5/17/2018 Estimated Earnings Release Date China All-Cap: C
Sany Heavy Equipment International Holdings Company Limited SEHK:631 5/17/2018 Earnings Release Date China All-Cap: C