Morning Quant Ride

May 21, 2018

Your Key Morning Highlights

US Markets
  • Easing Sino-American trade tensions fuel positive sentiment in the global markets
  • Mnuchin states US trade war with China is “on hold”
  • US equity index futures are advancing this AM with Dow Jones minis +0.91%, S&P 500 minis +0.56%, and Nasdaq 100 minis +0.64%
  • US Dollar Index is slightly stronger, +0.13%, with the dollar stronger against EUR, GBP, and JPY
  • US government bond yields are higher this morning, with the US 10-year yield trading at 3.072%, +0.242%
  • Gold spot is slightly higher, +0.16% to USD$1,290.20/ounce
International Markets
  • European markets are stronger this morning with the Euro Stoxx 600 +0.38%, FTSE 100 +0.82%, CAC40 +0.70%, and the DAX is closed
  • Asian stocks closed mostly higher with the Nikkei +0.31%, Hang Seng +0.60%, and the Hang Seng Chinese Enterprise Index -0.04%
  • Japanese April trade surplus was ¥626.0B vs consensus ¥440.0B
  • The spread between Italian and Spanish 10-year bonds is at its widest in 6 years, with the Italian 10-year is trading at 2.275%, while the Spanish 10-year is trading at 1.45%
  • UK GILTs are trading higher today, with the UK 10-year yield falling 1.3 basis points to 1.480%
Cryptos
  • Nearly 40% of all Chinese blockchain startups emerged in 2017, according to China’s Ministry of Industry and Information Technology. The report highlighted that China currently has 456 startups focused on blockchain technology development as part of their core business
  • Japan Cryptocurrency exchange Coincheck will delist Monero and three other privacy coins from Coincheck, one of the country’s most popular exchanges. Japan’s Financial Services Agency (FSA) believes that users have too much anonymity with these cryptocurrencies
  • Quantamize Machine Learning Crypto Signals for the next three days have been released and Bitcoin is one of ten cryptocurrencies with a Buy rating from our algorithms out of thirty cryptocurrencies

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*Data in Price Return

S&P 500 Sector Performance

Conviction Buy Laggards From Friday We Are Watching To Begin the Week

Click name for Q-Factor rating and financial data.

Advanced Energy Industries, Inc. - 33.00% off its 52wkH on 10/30/2017, reports earnings on 08/01/2018

Allison Transmission Holdings, Inc. - 5.49% off its 52wkH on 10/31/2017, reports earnings on 07/27/2018

KEMET Corporation - 34.70% off its 52wkH on 10/18/2017, reports earnings on 07/27/2018

Lam Research Corporation - 16.77% off its 52wkH on 03/13/2018, reports earnings on 07/26/2018

Micron Technology, Inc. - 15.82% off its 52wkH on 03/13/2018, reports earnings on 06/22/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Alphabet (GOOGL) is facing a lawsuit from UK iPhone users which may seek up to $4.29 billion in damages. The group includes 4.4 million users, who claim that Google unlawfully collected user’s personal information.

Campbell Soup (CPB) interim CEO Keith McLoughlin remarked that although Campbell Soup was a public company, and is technically for sale everyday, he has no intention to sell the company.

Fifth Third (FITB) has agreed to acquire MB Financial Inc (MBFI) for $4.7 billion worth of cash and equity.

Fox’s (FOXA) “Deadpool 2” title pulled in $125 million during its opening weekend, marking the second highest opening ever for an R-Rated film.

General Electric (GE) is nearing a deal to merge its transportation business unit with Wabtec Corp (WAB). General Electric will receive $2.9 billion from the deal, and the combined business created by the merger would be valued at more than $20 billion.

Glencore Plc (LSE:GLEN) is closing in on a deal valued at $1 billion to acquire several southern African assets from Chevron (CVX).

IHS Markit Ltd (INFO) will reportedly be paying $1.9 billion for data provider and financial services firm Ipreo, which is held by private equity funds managed by Blackstone Group (BX) and Goldman Sachs (GS).

International Consolidated Airlines Group SA (LSE:IAG) is reportedly considering offering €1.52 billion to acquire Norwegian Air Shuttle ASA (OB:NAS).

Microsoft (MSFT) has acquired technology startup Semantic Machines, as the company looks to further develop its “conversational AI” capabilities.

Monro Muffler (MNRO) reported 1Q2018 EPS that was slightly above expectations ($0.52 vs $0.50 projections).

Ryanair Holdings Plc (ISE:RY4C) has warned shareholders that profit will likely decline in 1Q2018, due to rising labor and fuel costs.

Tesla Inc (TSLA) shares are trading 1.56% higher pre-market after CEO Elon Musk announced that the company was planning to launch upgrades to its Model 3 series of vehicles.

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
Eagle Materials Inc. EXP Materials Construction Materials 2.98% 1.53% -3.43%
Louisiana-Pacific Corporation LPX Materials Forest Products 2.45% 2.34% 8.34%
The Boeing Company BA Industrials Aerospace and Defense 2.06% 3.01% 19.10%
Mohawk Industries, Inc. MHK Consumer Discretionary Home Furnishings 2.03% 2.66% -21.66%
Zoetis Inc. ZTS Healthcare Pharmaceuticals 1.75% 1.87% 17.16%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Copart, Inc. CPRT Industrials Diversified Support Services -3.94% -3.65% 5.85%
Lam Research Corporation LRCX Information Technology Semiconductor Equipment -3.86% -5.52% 5.64%
KLA-Tencor Corporation KLAC Information Technology Semiconductor Equipment -3.40% -3.77% 7.52%
The J. M. Smucker Company SJM Consumer Staples Packaged Foods and Meats -3.04% -3.66% -5.38%
Micron Technology, Inc. MU Information Technology Semiconductors -2.18% -5.00% 14.65%

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
Ceridian HCM Holding Inc. CDAY Information Technology Application Software -3.94% -1.02% 16.59%
Arena Pharmaceuticals, Inc. ARNA Healthcare Biotechnology -3.51% -2.13% 13.47%
Laredo Petroleum, Inc. LPI Energy Oil and Gas Exploration and Production -3.51% -1.23% -12.45%
Range Resources Corporation RRC Energy Oil and Gas Exploration and Production -3.19% -1.88% 9.53%
United States Steel Corporation X Materials Steel -2.88% -2.80% 7.77%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Nektar Therapeutics NKTR Healthcare Pharmaceuticals 7.66% -0.58% 42.83%
New Relic, Inc. NEWR Information Technology Internet Software and Services 4.99% 7.85% 63.80%
Aimmune Therapeutics, Inc. AIMT Healthcare Biotechnology 4.30% 4.47% -17.24%
Formula One Group FWON.K Consumer Discretionary Movies and Entertainment 3.57% 5.98% -6.65%
Roku, Inc. ROKU Consumer Discretionary Consumer Electronics 3.33% 2.79% -31.63%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
Nordson Corporation NDSN 5/21/2018 Earnings Release Date US Large-Cap: A, US Industrials: B
Pure Storage, Inc. PSTG 5/21/2018 Earnings Release Date US Large-Cap: F, US Information Technology: D
ChinaNet Online Holdings, Inc. CNET 5/21/2018 Estimated Earnings Release Date China All-Cap: D
YY Inc. YY 5/21/2018 Estimated Earnings Release Date China All-Cap: A
Zai Lab Limited ZLAB 5/21/2018 Estimated Earnings Release Date China All-Cap: F
Dycom Industries, Inc. DY 5/21/2018 Estimated Earnings Release Date US Large-Cap: D, US Industrials: D
The TJX Companies, Inc. TJX 5/21/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: A
Urban Outfitters, Inc. URBN 5/21/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Hewlett Packard Enterprise Company HPE 5/21/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: A
Cracker Barrel Old Country Store, Inc. CBRL 5/21/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Discretionary: A
Pentamaster International Limited SEHK:1665 5/21/2018 Earnings Release Date China All-Cap: C
Ceridian HCM Holding Inc. CDAY 5/21/2018 Estimated Earnings Release Date US Large-Cap: F
Eaton Vance Corp. EV 5/21/2018 Estimated Earnings Release Date US Large-Cap: B
SIG plc SHI 5/21/2018 Estimated Earnings Release Date China All-Cap: A
Fanhua Inc. FANH 5/21/2018 Earnings Release Date China All-Cap: B
Intuit Inc. INTU 5/22/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Ctrip.com International, Ltd. CTRP 5/22/2018 Earnings Release Date China All-Cap: D
Advance Auto Parts, Inc. AAP 5/22/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Kohl's Corporation KSS 5/22/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: A
AutoZone, Inc. AZO 5/22/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
Toll Brothers, Inc. TOL 5/22/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
Towngas China Company Limited SEHK:1083 5/22/2018 Estimated Earnings Release Date China All-Cap: B
CSPC Pharmaceutical Group Limited SEHK:1093 5/22/2018 Estimated Earnings Release Date China All-Cap: A
Cathay Pacific Airways Limited SEHK:293 5/22/2018 Estimated Earnings Release Date China All-Cap: B
Value Partners Group Limited SEHK:806 5/22/2018 Estimated Earnings Release Date China All-Cap: B
Tiangong International Company Limited SEHK:826 5/22/2018 Estimated Earnings Release Date China All-Cap: B
Longfor Properties Co. Ltd. SEHK:960 5/22/2018 Estimated Earnings Release Date China All-Cap: B
China Dongxiang (Group) Co., Ltd. SEHK:3818 5/22/2018 Estimated Earnings Release Date China All-Cap: D
Kingsoft Corporation Limited SEHK:3888 5/22/2018 Estimated Earnings Release Date China All-Cap: C
Dollar Tree, Inc. DLTR 5/22/2018 Estimated Earnings Release Date US Large-Cap: A, US Consumer Discretionary: B
Target Corporation TGT 5/22/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Discretionary: A
Lowe's Companies, Inc. LOW 5/22/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: C
NetApp, Inc. NTAP 5/22/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Hengan International Group Company Limited SEHK:1044 5/22/2018 Estimated Earnings Release Date China All-Cap: B
Henderson Land Development Company Limited SEHK:12 5/22/2018 Estimated Earnings Release Date China All-Cap: C
Powerlong Real Estate Holdings Limited SEHK:1238 5/22/2018 Estimated Earnings Release Date China All-Cap: C
Kunlun Energy Company Limited SEHK:135 5/22/2018 Estimated Earnings Release Date China All-Cap: C
361 Degrees International Limited SEHK:1361 5/22/2018 Estimated Earnings Release Date China All-Cap: C
Wanda Hotel Development Company Limited SEHK:169 5/22/2018 Estimated Earnings Release Date China All-Cap: D
Comba Telecom Systems Holdings Limited SEHK:2342 5/22/2018 Estimated Earnings Release Date China All-Cap: D
Dah Sing Banking Group Limited SEHK:2356 5/22/2018 Estimated Earnings Release Date China All-Cap: C
Shui On Land Limited SEHK:272 5/22/2018 Estimated Earnings Release Date China All-Cap: D
China Huarong Asset Management Co., Ltd. SEHK:2799 5/22/2018 Estimated Earnings Release Date China All-Cap: F
Chinasoft International Limited SEHK:354 5/22/2018 Estimated Earnings Release Date China All-Cap: B
The United Laboratories International Holdings Limited SEHK:3933 5/22/2018 Estimated Earnings Release Date China All-Cap: A
Minth Group Limited SEHK:425 5/22/2018 Estimated Earnings Release Date China All-Cap: C
Dah Sing Financial Holdings Limited SEHK:440 5/22/2018 Estimated Earnings Release Date China All-Cap: D
Television Broadcasts Limited SEHK:511 5/22/2018 Estimated Earnings Release Date China All-Cap: D
Xiabuxiabu Catering Management (China) Holdings Co., Ltd. SEHK:520 5/22/2018 Estimated Earnings Release Date China All-Cap: B
China Oriental Group Company Limited SEHK:581 5/22/2018 Estimated Earnings Release Date China All-Cap: B
Shangri-La Asia Limited SEHK:69 5/22/2018 Estimated Earnings Release Date China All-Cap: C
China Medical System Holdings Limited SEHK:867 5/22/2018 Estimated Earnings Release Date China All-Cap: A
Bilibili Inc. BILI 5/22/2018 Earnings Release Date China All-Cap: F
Xtep International Holdings Limited SEHK:1368 5/22/2018 Estimated Earnings Release Date China All-Cap: B
nLIGHT, Inc. LASR 5/22/2018 Earnings Release Date US Large-Cap: F
Bright Smart Securities & Commodities Group Limited SEHK:1428 5/22/2018 Earnings Release Date China All-Cap: D