Morning Quant Ride

May 17, 2018

Your Key Morning Highlights

US Markets
  • US equity index futures are selling off this morning with Dow Jones minis -0.07%, S&P500 minis -0.16% and Nasdaq 100 minis -0.36%
  • US$ Index is flat at +0.07% with weakness in the EUR€ offset by strength in the JPY¥
  • Yield on the US 10-year is sitting at 3.095% this AM
  • The gap between the S&P 500 forward 12-month dividend yield and the yield on the US 10-year is at a 5-year high at 114 basis points
  • Oil prices resume their rally today with Brent now above USD$80/barrel; WTI is north of USD$72/barrel
International Markets
  • European stocks are trading up this morning with the Euro Stoxx +0.13%, FTSE 100 +0.13%, CAC 40 +0.30% and DAX +0.18%
  • Asian stocks finished their trading sessions mixed with the Nikkei 225 +0.53%, Hang Seng -0.54%, Hang Seng China Enterprise -1.30% and the ASX 200 -0.21%
  • Italian sovereign yields are continuing yesterday’s move with the yield on the Italian 10-year up 5.7 basis points to 2.164%
  • The sell-off Aussie sovereign bonds this week continues with the Aussie 10-year yield +4.0 basis points to 2.919%
  • Improving employment data, coupled with expectations for rising inflation, are boosting investor confidence that the RBA will be forced to raise rates in the near future
  • AUD$ is +0.12% against the USD$ this AM
Cryptos 
  • Spanish bank Santander has allegedly become the first company to use blockchain technology for investor voting. The bank partnered with Broadridge Financial Solutions for investor voting at its annual general meeting
  • PayPal (PYPL) CFO John Rainey said that the company is not seeing much interest in cryptocurrencies from their merchants because price volatility threatens the viability of their merchant’s businesses. PayPal was one of the first payment services to accept cryptocurrencies back in 2014
  • After the CME group (CME) announced that it is unveiling real-time pricing data for Ethereum (ETH) and that it may develop Ethereum futures, the firm is now weighing investor demand. The group has noted that Bitcoin futures volume has been lower than some expected

*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 - 6.57% off its 52wkH on 03/20/2018, reports earnings on 05/24/2018

EchoStar Corporation - 18.58% off its 52wkH on 06/19/2017, reports earnings on 08/06/2018

International Business Machines Corporation - 15.49% off its 52wkH on 01/18/2018, reports earnings on 07/18/2018

Lumentum Holdings Inc. - 14.45% off its 52wkH on 03/12/2018, reports earnings on 08/07/2018

The Progressive Corporation - 2.19% off its 52wkH on 05/11/2018, reports earnings on 07/17/2018

The Wendy's Company - 7.94% off its 52wkH on 04/18/2018, reports earnings on 08/08/2018

Vishay Precision Group, Inc. - 3.71% off its 52wkH on 05/14/2018, reports earnings on 08/08/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

CBS Corp (CBS) has been downgraded to a neutral rating by Bank of America, with a price target lowered to $58 from $78.

Shares of Cisco Inc (CSCO) are down 0.70% before that start of trading, CSCO posted 3Q2018 EPS yesterday that was marginally above expectations ($0.66 vs $0.65 projected).

Daimler AG (XTRA:DAI) and Deutsche Telekom AG (DB:DTE) have agreed to a $3.8 billion deal with the German government, ending disputes over the inability of Daimler and Deustche Telekom to effectively collect road tolls from their vehicles using GPS tracking.

Ford (F) has resumed manufacturing its F-150 and Super Duty truck models, following a fire at a parts supplier that stalled production.

NXP Semiconductors (NXPI) shares are 1.98% higher pre-market after reports that Chinese antitrust regulators have approved the sales of Toshiba’s (TSE:6502) memory business unit.

According to Goldman Sachs Analyst David Tamberrino, Tesla (TSLA) may require more than $10 billion in external funding by 2020 to continue current operations due to rising production and capacity costs.

Vodafone Group PLC (LSE:VOD) has been downgraded to neutral at Citi Group.

Walmart’s (WMT) stock is trading 1.24% higher pre-market after poster stronger than expected 1Q2018 EPS ($1.14 vs $1.12 projections), with surging US ecommerce sales being a driving force for profit increase (+33% in 1Q2018 vs +23% in 4Q2017). 

William Companies Inc (WMB) shares are advancing 2.85% before the open, on news that the company will be acquiring William Partners (WPZ) for $10.5 billion in an ell equity deal.

Major companies reporting earnings over the next 24 hours:

Applied Materials (AMAT)

Campbell Soup (CPB)

Deere & Co (DE)

Nordstrom (JWN)

Cryptocurrencies Today

Stock Movers

Conviction Buy Winners and Losers

On Mobile/Tablet scroll to right.

Winners  Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Assurant, Inc. AIZ Financials Multi-line Insurance 4.72% 7.27% -6.84%
Micron Technology, Inc. MU Information Technology Semiconductors 4.61% 9.03% 37.40%
Raymond James Financial, Inc. RJF Financials Investment Banking and Brokerage 2.62% 2.83% 7.96%
Hill-Rom Holdings, Inc. HRC Healthcare Healthcare Equipment 2.53% 1.55% 6.56%
Dollar General Corporation DG Consumer Discretionary General Merchandise Stores 2.34% 2.76% 3.43%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Berry Global Group, Inc. BERY Materials Metal and Glass Containers -2.21% -2.79% -13.27%
Eli Lilly and Company LLY Healthcare Pharmaceuticals -1.25% -1.54% 0.14%
Roper Technologies, Inc. ROP Industrials Industrial Conglomerates -0.98% -1.32% 4.38%
Republic Services, Inc. RSG Industrials Environmental and Facilities Services -0.86% -1.49% 3.43%
Dollar Tree, Inc. DLTR Consumer Discretionary General Merchandise Stores -0.76% 0.58% -1.33%

Source: S&P Capital IQ

Conviction Short Winners and Losers

On Mobile/Tablet scroll to right.

Winners Ticker Sector Industry 1 Day Return 5 Day Return  YTD
GrafTech International Ltd. EAF Industrials Electrical Components and Equipment -4.80% 0.64% 17.83%
Overstock.com, Inc. OSTK Consumer Discretionary Internet and Direct Marketing Retail -4.50% 3.48% -0.50%
Centennial Resource Development, Inc. CDEV Energy Oil and Gas Exploration and Production -3.04% -2.15% 3.35%
Pivotal Software, Inc. PVTL Information Technology Application Software -3.01% -1.69% 3.44%
Smartsheet Inc. SMAR Information Technology Application Software -2.91% -2.49% 3.63%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Under Armour, Inc. UAA Consumer Discretionary Apparel, Accessories and Luxury Goods 8.69% 9.38% 42.20%
Sangamo Therapeutics, Inc. SGMO Healthcare Biotechnology 6.98% 4.89% -1.83%
Blueprint Medicines Corporation BPMC Healthcare Biotechnology 6.77% 5.97% 14.55%
Rite Aid Corporation RAD Consumer Staples Drug Retail 6.59% 10.56% -9.64%
Pandora Media, Inc. P Information Technology Internet Software and Services 5.10% 4.96% 58.09%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to right.

Company Name Ticker Event Date Event Type Q-Factor Score
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
Campbell Soup Company CPB 5/18/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: B
Deere & Company DE 5/18/2018 Earnings Release Date US Large-Cap: C, US Industrials: B
Kingboard Chemical Holdings Limited SEHK:148 5/18/2018 Estimated Earnings Release Date China All-Cap: D
China Resources Gas Group Limited SEHK:1193 5/18/2018 Estimated Earnings Release Date China All-Cap: B
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. SEHK:1558 5/18/2018 Estimated Earnings Release Date China All-Cap: B
Kingboard Laminates Holdings Limited SEHK:1888 5/18/2018 Estimated Earnings Release Date China All-Cap: C
China Traditional Chinese Medicine Holdings Co. Limited SEHK:570 5/18/2018 Estimated Earnings Release Date China All-Cap: B