Morning Quant Ride

May 22, 2018

US Markets

  • Positive sentiment around Sino-American trade has carried through to the markets today
  • US equity index futures are advancing this AM with Dow Jones minis +0.21%, S&P 500 minis +0.16%, and Nasdaq 100 minis +0.39%
  • US Dollar index is lower this morning, -0.33%, with the dollar weaker against most of the major currencies
  • US government bond yields are higher again this morning, with the US 10-Year trading at 3.075%
  • Gold spot is slightly higher this morning, +0.13%, to USD$1294.21/ounce
  • Oil remains in an upward trend, WTI Crude is trading at $72.42/barrel, up 0.25%, and Brent is trading at $79.47/barrel, up 0.32%

International Markets

  • European Stocks are stronger this morning with the Euro Stoxx 600 +0.14%, FTSE 100 +0.13%, CAC40 +0.10%, and the DAX +0.39%
  • Asian stocks closed mostly lower, with the Nikkei (-0.18%), and the Hong Kong indices closed for holiday
  • The Chinese Ministry of Finance reported that it will be cutting its import tariffs for passenger cars to 15% from 25%
  • UK Gilts are declining today, with the UK 10-year yield rising 4 basis points to 1.518%

Cryptos

  • Ohio soon may become the latest US state to legally recognize smart contracts and records stored on a blockchain. A Bill will be considered which will recognize smart contracts as legally enforceable contracts
  • The US Commodity Futures Trading Commission (CFTC) has issued an advisory statement for listing virtual currency derivative products. The Division of Market Oversight (DMO) has said that the CFTC staff will seek to provide additional guidance to help market participants keep pace with innovation while complying with CFTC regulations
  • Virtuse, a Singaporean cryptocurrency exchange, is connecting crypto markets with global financial assets, commodities, government emission allowances and stock indices to eliminate the middlemen and provide transparency to the financial sector. The core innovation of the Virtuse platform is Digital Asset Collateralized Tokens or DACTs which represents an ownership in an asset

*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.

Benchmark Electronics, Inc. - 23.46% off its 52wkH on 10/16/2017, reports earnings on 07/25/2018

Finjan Holdings, Inc. - 29.31% off its 52wkH on 06/23/2017, reports earnings on 05/23/2018

HP Inc. - 10.75% off its 52wkH on 03/09/2018, reports earnings on 05/29/2018

ManpowerGroup Inc. - 30.42% off its 52wkH on 01/29/2018, reports earnings on 07/20/2018

SS&C Technologies Holdings, Inc. - 7.43% off its 52wkH on 03/27/2018, reports earnings on 07/27/2018

Tech Data Corporation - 26.35% off its 52wkH on 08/30/2017, reports earnings on 05/31/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Anheuser-Busch InBev (ENXTBR:ABI) shares are trading 1.40% higher today after the company was upgraded by RBC to a sector perform rating

Adobe (ADBE) announced a plan to repurchase up to $8 billion in shares through FY2021.

Advance Auto Parts (AAP) reported 1Q2018 EPS that was firmly above expectations ($2.10 vs $1.97 projected).

AutoZone (AZO) announced 3Q2018 EPS that was well higher than anticipated ($13.42 vs $12.94 forecasted). 

Bloomsbury Publishing Plc (LSE:BMY) stock is up 7.25% in today’s trading after announcing expectations of a strong 2H2018 due to a strong list of books set to be published.

Dycom Industries (DY) released 2Q2018 EPS that was softer than estimated ($0.65 vs $0.70 projected).

Kohl’s Corporation (KSS) announced 1Q2018 EPS that was above projections ($0.64 vs $0.50 anticipated).

Macy’s (M) shares are trading 2.14% higher pre-market after the company was upgraded to a positive rating, from neutral, at Susquehanna. Susquehanna raised its price target for Macy’s to $43. Macy’s stock is currently trading with a $34 handle.

Photronics (PLAB) reported 2Q2018 EPS of $0.15, which was more than 2-fold higher than forecasted ($0.0.7 expected).

Sony (TSE:6758) has acquired a 60% stake in EMI Music Publishing for $2.3 billion, bringing Sony’s total equity in EMI Music to 90%. The deal makes Sony the world’s largest music publisher. Sony also reportedly plans to invest $9 billion into image sensors over the next 3 years.

Toll Brothers (TOL) shares are 6.03% lower before the open after posting 2Q2018 that was $0.04 below expectations ($0.72 vs $0.76 projected).

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 3.91% -1.81% 34.92%
The Boeing Company BA Industrials Aerospace and Defense 3.61% 6.73% 23.40%
Nordson Corporation NDSN Industrials Industrial Machinery 3.45% 4.05% -4.63%
Allison Transmission Holdings, Inc. ALSN Industrials Construction Machinery and Heavy Trucks 2.71% 3.04% 2.97%
Lam Research Corporation LRCX Information Technology Semiconductor Equipment 2.24% -3.40% 8.58%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Five Below, Inc. FIVE Consumer Discretionary Specialty Stores -2.15% -1.92% 3.70%
Conagra Brands, Inc. CAG Consumer Staples Packaged Foods and Meats -1.36% -2.30% -0.43%
WestRock Company WRK Materials Paper Packaging -1.13% -0.81% 3.77%
Tyler Technologies, Inc. TYL Information Technology Application Software -0.89% -0.53% 3.11%
CDK Global, Inc. CDK Information Technology Application Software -0.80% -1.63% -2.52%

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
Esperion Therapeutics, Inc. ESPR Healthcare Biotechnology -10.09% -8.83% -45.88%
Spark Therapeutics, Inc. ONCE Healthcare Biotechnology -4.45% -5.40% -3.99%
Ceridian HCM Holding Inc. CDAY Information Technology Application Software -4.51% -5.48% 11.34%
DocuSign, Inc. DOCU Information Technology Internet Software and Services -4.02% -4.97% 11.26%
United States Steel Corporation X Materials Steel -3.84% -6.53% 3.64%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Range Resources Corporation RRC Energy Oil and Gas Exploration and Production 6.00% 4.01% -5.74%
LaSalle Hotel Properties LHO Real Estate Hotel and Resort REITs 5.36% 7.07% 19.74%
Carrizo Oil & Gas, Inc. CRZO Energy Oil and Gas Exploration and Production 3.99% 7.22% 31.16%
Centennial Resource Development, Inc. CDEV Energy Oil and Gas Exploration and Production 3.35% 6.43% 2.78%
Finisar Corporation FNSR Information Technology Communications Equipment 3.14% 1.18% -16.07%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right. 

Company Name Ticker Event Date Event Type Q-Factor Score
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
Dycom Industries, Inc. DY 5/22/2018 Earnings Release Date US Large-Cap: D, US Industrials: D
Eaton Vance Corp. EV 5/22/2018 Earnings Release Date US Large-Cap: B
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
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
Tiffany & Co. TIF 5/23/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Ralph Lauren Corporation RL 5/23/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Williams-Sonoma, Inc. WSM 5/23/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
Synopsys, Inc. SNPS 5/23/2018 Earnings Release Date US Large-Cap: B, US Information Technology: C
L Brands, Inc. LB 5/23/2018 Earnings Release Date US Large-Cap: F, US Consumer Discretionary: C
Copart, Inc. CPRT 5/23/2018 Earnings Release Date US Large-Cap: A, US Industrials: C
Cowell e Holdings Inc. SEHK:1415 5/23/2018 Estimated Earnings Release Date China All-Cap: D
Q Technology (Group) Company Limited SEHK:1478 5/23/2018 Estimated Earnings Release Date China All-Cap: C
MTR Corporation Limited SEHK:66 5/23/2018 Estimated Earnings Release Date China All-Cap: B
Canvest Environmental Protection Group Company Limited SEHK:1381 5/23/2018 Estimated Earnings Release Date China All-Cap: B
Youyuan International Holdings Limited SEHK:2268 5/23/2018 Estimated Earnings Release Date China All-Cap: B
China Aoyuan Property Group Limited SEHK:3883 5/23/2018 Estimated Earnings Release Date China All-Cap: B
China Grand Pharmaceutical and Healthcare Holdings Limited SEHK:512 5/23/2018 Estimated Earnings Release Date China All-Cap: B
Techtronic Industries Company Limited SEHK:669 5/23/2018 Estimated Earnings Release Date China All-Cap: B
Yuexiu Transport Infrastructure Limited SEHK:1052 5/23/2018 Estimated Earnings Release Date China All-Cap: A
Yirendai Ltd. YRD 5/23/2018 Estimated Earnings Release Date China All-Cap: C
Autodesk, Inc. ADSK 5/23/2018 Estimated Earnings Release Date US Large-Cap: D, US Information Technology: C
Best Buy Co., Inc. BBY 5/23/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
Deckers Outdoor Corporation DECK 5/23/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Patterson Companies, Inc. PDCO 5/23/2018 Estimated Earnings Release Date US Large-Cap: C
Meitu, Inc. SEHK:1357 5/23/2018 Estimated Earnings Release Date China All-Cap: F
Fantasia Holdings Group Co., Limited SEHK:1777 5/23/2018 Estimated Earnings Release Date China All-Cap: C
Colour Life Services Group Co., Limited SEHK:1778 5/23/2018 Estimated Earnings Release Date China All-Cap: A
Dah Chong Hong Holdings Limited SEHK:1828 5/23/2018 Estimated Earnings Release Date China All-Cap: A
Xingda International Holdings Limited SEHK:1899 5/23/2018 Estimated Earnings Release Date China All-Cap: D
Jiayuan International Group Limited SEHK:2768 5/23/2018 Estimated Earnings Release Date China All-Cap: B
China Resources Pharmaceutical Group Limited SEHK:3320 5/23/2018 Estimated Earnings Release Date China All-Cap: B
Shougang Fushan Resources Group Limited SEHK:639 5/23/2018 Estimated Earnings Release Date China All-Cap: D
Tongda Group Holdings Limited SEHK:698 5/23/2018 Estimated Earnings Release Date China All-Cap: C
Sanderson Farms, Inc. SAFM 5/23/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Staples: C
Lee's Pharmaceutical Holdings Limited SEHK:950 5/23/2018 Earnings Release Date China All-Cap: C