Morning Quant Ride

May 23, 2018

US Stocks

  • Positive sentiment in equity markets is fading, as optimism wanes on successful Korea and China deals 
  • US equity index futures are declining this AM, following the trend set by Asia and Europe with Dow Jones minis -0.89%, S&P 500 minis -0.59%, and Nasdaq 100 minis -0.89%
  • US Dollar index is stronger this morning, +0.39%, with the dollar stronger against most of major currencies, only declining against the Japanese Yen and Swiss Franc
  • US government bond yields are falling this morning, with the US 10-year down 5.3 basis points to 3.011%
  • Gold spot is moving higher this morning, up 0.42% to USD$1296.58/oz
  • Oil is reversing its upward trend, with both WTI and Brent declining. WTI Crude is trading at $72.42/barrel, down 0.61%, and Brent is trading at $78.92/barrel, down 0.82%

International Stocks

  • European stocks are falling this morning, with the Euro Stoxx 600 -0.92%, FTSE 100 -0.64%, CAC40 -1.13%, and the DAX -1.44%
  • Asian markets finished significantly lower, with the Hang Seng -1.82%, China Enterprise Index -2.10%, and the Nikkei 225 -0.18%
  • The summit between President Trump and North Korean leader Kim Jong-un may be in doubt
  • UK Gilts are stronger today, with the UK 10-year yield falling 6.6 basis points to 1.460%

Cryptos 

  • Steemit, the platform of cryptocurrency of Steem (STEEM) has announced it has over 1,000,000 users. The blockchain processes over one million transactions daily. The Steemit.com website receives over 250,000 unique visitors every day
  • CheapAir.com adds Litecoin (LTC) and Dash (DASH) to its payment options for travelers. The firm first begin accepting cryptocurrency by agreeing to receive payments in Bitcoin (BTC) in 2013
  • The Monetary Authority of Singapore (MAS), is proposing changes to existing regulations that would ease market entry for blockchain-based and decentralized exchanges. The MAS states that the single tier “recognized market operators” regulatory framework cannot meet the demand for new business models based on such emerging technologies

*Data in Price Return

S&P 500 Sector Performance

*Data in Total Return as or Previous Day EOD

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

Altria Group, Inc. - 29.03% off its 52wkH on 06/20/2017, reports earnings on 07/26/2018

Covenant Transportation Group, Inc. - 8.21% off its 52wkH on 03/19/2018, reports earnings on 07/24/2018

DXC Technology Company - 7.84% off its 52wkH on 03/20/2018, reports earnings on 05/24/2018

Macy's, Inc. - 5.67% off its 52wkH on 05/21/2018, reports earnings on 08/10/2018

MSC Industrial Direct Co., Inc. - 7.09% off its 52wkH on 01/09/2018, reports earnings on 07/11/2018

The Chemours Company - 10.83% off its 52wkH on 10/24/2017, reports earnings on 08/02/2018

United Rentals, Inc. - 12.56% off its 52wkH on 03/13/2018, reports earnings on 07/20/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

AECOM (ACM) has been awarded a 15-year, $3.1 billion contract with the US Air Force, in which AECOM will provide infrastructure development services to the Air Force.

Google’s parent company Alphabet (GOOGL) is facing EU antitrust complaints from Yelp, in which Yelp claims that Google unfairly promotes its own services in search results.

According to a Financial Times report, Barclays (LSE:BARC) has engaged Standard Chartered (LSE:STAN) regarding a possible merger.

Deutsche Post (XTRA:DPW) has been upgraded to a buy rating, from neutral, at UBS.

Lowe’s Co (LOW) reported 1Q2018 EPS that was slightly below expectations ($1.19 vs $1.22 forecasted).

Qorvo’s (QRVO) board of directors has approved a $1 billion share repurchase program.

Target Corp’s (TGT) shares are trading 5.26% lower before the open after the company announced 1Q2018 EPS that was firmly below estimates ($1.32 vs $1.38tr anticipated).

Tiffany & Co (TIF) released 1Q2018 EPS that was firmly higher than projected ($1.14 vs $0.83 consensus). Tiffany’s board has also reportedly authorized a $1 billion share buyback. Tiffany & Co shares are advancing 10.72% pre-market.

Chinese telecommunications firm ZTE Corp (SZE:000063) is estimating that the US imposed technology ban placed on the company will create losses of $3 billion due to significant stoppages in operations, as well as clients pulling out of deals.

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 6.40% 7.92% 43.56%
KLA-Tencor Corporation KLAC Information Technology Semiconductor Equipment 1.96% 0.34% 8.14%
Express Scripts Holding Company ESRX Healthcare Healthcare Services 1.61% 1.83% 4.17%
Lam Research Corporation LRCX Information Technology Semiconductor Equipment 1.56% -0.17% 10.27%
Expeditors International of Washington, Inc. EXPD Industrials Air Freight and Logistics 1.55% 1.90% 13.33%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Nordson Corporation NDSN Industrials Industrial Machinery -7.43% -3.58% 0.51%
Ollie's Bargain Outlet Holdings, Inc. OLLI Consumer Discretionary General Merchandise Stores -2.89% -1.08% 10.77%
Pool Corporation POOL Consumer Discretionary Distributors -2.58% -1.70% 5.09%
Lamb Weston Holdings, Inc. LW Consumer Staples Packaged Foods and Meats -2.55% -2.93% -0.43%
The Boeing Company BA Industrials Aerospace and Defense -2.22% 2.87% 5.85%

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
Pure Storage, Inc. PSTG Information Technology Technology Hardware, Storage and Peripherals -5.64% -6.83% 9.99%
Carrizo Oil & Gas, Inc. CRZO Energy Oil and Gas Exploration and Production -4.46% -2.55% 30.65%
2U, Inc. TWOU Information Technology Internet Software and Services -4.07% -2.81% 13.85%
Okta, Inc. OKTA Information Technology Internet Software and Services -4.02% -1.46% 13.31%
Range Resources Corporation RRC Energy Oil and Gas Exploration and Production -3.92% -1.40% 11.55%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Esperion Therapeutics, Inc. ESPR Healthcare Biotechnology 4.88% -7.11% -39.64%
Aimmune Therapeutics, Inc. AIMT Healthcare Biotechnology 4.29% 10.16% -12.59%
nLIGHT, Inc. LASR Information Technology Electronic Equipment and Instruments 4.26% 6.04% 0.00%
Energous Corporation WATT Industrials Electrical Components and Equipment 4.10% 4.85% -3.34%
Axon Enterprise, Inc. AAXN Industrials Aerospace and Defense 3.47% 8.05% 132.91%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
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
Lenovo Group Limited SEHK:992 5/23/2018 Earnings Release Date China All-Cap: D
Tuniu Corporation TOUR 5/23/2018 Earnings Release Date China All-Cap: C
McKesson Corporation MCK 5/24/2018 Earnings Release Date US Large-Cap: D
58.com Inc. WUBA 5/24/2018 Earnings Release Date China All-Cap: B
Hormel Foods Corporation HRL 5/24/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: B
The Toro Company TTC 5/24/2018 Earnings Release Date US Large-Cap: B, US Industrials: C
Ross Stores, Inc. ROST 5/24/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: A
Splunk Inc. SPLK 5/24/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
Veeva Systems Inc. VEEV 5/24/2018 Earnings Release Date US Large-Cap: C
Nutanix, Inc. NTNX 5/24/2018 Earnings Release Date US Large-Cap: F, US Information Technology: D
The Gap, Inc. GPS 5/24/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: B
DXC Technology Company DXC 5/24/2018 Earnings Release Date US Large-Cap: B, US Information Technology: A