Morning Quant Ride

May 29, 2018

US Stocks

  • US stocks are poised to open negative this morning in sympathy with European stocks following the failure of the 5-Star and La Lega parties to create a coalition government in Italy
  • US equity index futures are declining this AM with Dow Jones minis -0.85%, S&P 500 minis -0.87%, and Nasdaq 100 minis -0.73%
  • The US$ Index is +0.85% with the dollar stronger against all of the G10 currencies besides the Japanese Yen
  • Oil is mixed today, with WTI -1.36% (USD$66.96/bbl) and Brent +0.61% (USD$75.76)
  • US government bonds are trading higher this morning, with the US 10-Year yield falling 7.4 basis points to 2.854%

International Stocks 

  • European stocks are declining this morning with the Euro Stoxx 600 -1.40%, FTSE 100 -1.37%, CAC40 -1.48%, and DAX -1.38%
  • Italian stocks are weighing on the rest of Europe, with the MIB -3.08%, on news that the 5-Star and La Lega parties have ditched plans to form a coaltion government
  • The Italian 10-Year note is falling today, with the 10-Year yield rising 40bps to 3.082%
  • The German 10-Year note is rising today, with the 10-year yield falling 6bps to 0.291%, its lowest level in 11 months
  • UK Gilts are trading higher this morning, with the British 10-Year yield falling 10.9bps to 1.215%
  • Asia’s regional focus is on US-North Korean developments
  • Asian stocks closed lower overnight with the Nikkei 225 -0.55%, Hang Seng -1.00%, and Hang Seng China Enterprise Index -1.29%
  • Japanese April unemployment rate was 2.5%, in-line with consensus

Cryptos

  • Cryptocurrency App, Taylor, has suffered an attack which has completely drained the startup of its cryptocurrency store. The attack equated to USD$1.5mm and an investigation into the attack has begun
  • Bank of England Head, Mark Carney has suggested the prospect of a central bank digital currency. He stated that he does not believe adopting a central bank digital currency would negatively impact the UK economy, specifically private credit or liquidity provisions
  • In China, the Hangzhou Blockchain Industrial Park (BIP) has issued six types of funding to attract new businesses as it seeks to expand its reputation. The industrial park subsidizes high quality projects in the blockchain industry
  • Just 15 months after hitting 1,000 global Bitcoin (BTC) ATMs, the total outstanding BTC ATMs stands at 3,000 as of 5/28/18

*Data in Price Return 

S&P 500 Sector Performance

*Data in Total Return

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

Click name for Q-Factor rating and financial data.

Axcelis Technologies, Inc. - 42.65% off its 52wkH on 11/24/2017, reports earnings on 08/02/2018

Gentex Corporation - 4.51% off its 52wkH on 04/17/2018, reports earnings on 07/20/2018

Global Brass and Copper Holdings, Inc. - 13.97% off its 52wkH on 11/02/2017, reports earnings on 08/02/2018

Lam Research Corporation - 13.99% off its 52wkH on 03/13/2018, reports earnings on 07/26/2018

MKS Instruments, Inc. - 12.22% off its 52wkH on 03/12/2018, reports earnings on 07/26/2018

Ross Stores, Inc. - 9.71% off its 52wkH on 01/29/2018, reports earnings on 08/23/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Alibaba (BABA) subsidiary Ant Financial raised $10 billion at the close of its latest round of funding, bringing the company’s total valuation to $150 billion.

American Woodmark Co (AMWD) announced 4Q2018 EPS that was significantly higher than anticipated ($1.64 vs $1.15).

Cyber attacks at the Bank of Montreal (TSX:BMO) and Canadian Imperial Bank of Commerce (TSX:CM) may have exposed the financial data of more than 90,000 customers.

Canadian Pacific Railway (TSX:CP) conductors and locomotive engineers have notified that company that they will be going on strike at early as tomorrow, seeking higher compensation in proportion to increased demand for the company’s services.

Coca-Cola (KO) has begun offering its first alcoholic beverage in company history. The product, called Lemon-Do, will be offered in Japan.

Deutsche Bank (DB:DBK) shares are currently trading below €10 (€9.88). The company will reportedly be closing its equity research department in Dubai, as the struggling German bank continues its retreat from global markets.

Disney’s (DIS) “Solo: A Star Wars Story” title unexpectedly struggled during its opening weekend. Over the holiday weekend (including Monday), the film brought in $103 million, compared to projections of $130-$150 million.

Momo Inc (MOMO) shares are trading 9.24% higher pre-market after reporting 1Q2018 EPS that was firmly above estimates ($0.69 vs $0.50 projected).

Novartis AG (SWX:NOVN) has been downgraded to a Hold at HSBC.

Qualcomm (QCOM) is expected to meet with Chinese regulators this week, seeking to acquire final approval for the $44 billion acquisition proposal for NXP Semiconductors (NXPI).

The UK government plans to sell a significant, multi-billion-pound stake in Royal Bank of Scotland (LSE:RBS), continuing a privatization effort that has been delayed for nearly 3 years.

More than 8,000 Starbucks (SBUX) locations will be closed for 4 hours today as the company conducts racial bias training, following backlash for a prior incident in which two black men were mistreated.

Verint Systems Inc. (VRNT) is in negotiations to acquire NSO Group, an Israeli cyber security firm, with a deal reportedly valued at $1 billion. 

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
Laboratory Corporation of America Holdings LH Healthcare Healthcare Services 3.84% 3.37% 14.19%
ON Semiconductor Corporation ON Information Technology Semiconductors 3.32% 9.07% 23.45%
Copart, Inc. CPRT Industrials Diversified Support Services 2.92% 0.33% 25.61%
Colgate-Palmolive Company CL Consumer Staples Household Products 2.02% 2.46% -15.51%
Church & Dwight Co., Inc. CHD Consumer Staples Household Products 1.48% 2.82% -5.48%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Belden Inc. BDC Information Technology Electronic Components -2.91% -3.33% -9.94%
Marathon Petroleum Corporation MPC Energy Oil and Gas Refining and Marketing -2.67% -3.18% 2.79%
Five Below, Inc. FIVE Consumer Discretionary Specialty Stores -2.43% -4.57% 1.13%
AbbVie Inc. ABBV Healthcare Biotechnology -2.00% -4.62% 4.69%
The Chemours Company CC Materials Diversified Chemicals -1.17% -2.63% 4.23%

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
Laredo Petroleum, Inc. LPI Energy Oil and Gas Exploration and Production -7.91% -10.59% -21.73%
QEP Resources, Inc. QEP Energy Oil and Gas Exploration and Production -6.37% -7.17% -0.15%
Overstock.com, Inc. OSTK Consumer Discretionary Internet and Direct Marketing Retail -6.20% -12.14% -12.60%
Zscaler, Inc. ZS Information Technology Systems Software -6.03% -8.54% -16.53%
AnaptysBio, Inc. ANAB Healthcare Biotechnology -5.77% -11.04% -16.93%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Roku, Inc. ROKU Consumer Discretionary Consumer Electronics 7.09% 8.87% -25.57%
Acacia Communications, Inc. ACIA Information Technology Communications Equipment 4.44% 1.88% -7.20%
Spirit Airlines, Inc. SAVE Industrials Airlines 3.68% 2.37% -15.21%
The Medicines Company MDCO Healthcare Pharmaceuticals 3.26% 2.94% 20.37%
American Airlines Group Inc. AAL Industrials Airlines 3.10% 3.53% -13.68%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
Emperor Capital Group Limited SEHK:717 5/28/2018 Earnings Release Date China All-Cap: D
Jianpu Technology Inc. JT 5/28/2018 Earnings Release Date China All-Cap: D
Momo Inc. MOMO 5/28/2018 Earnings Release Date China All-Cap: A
Noah Holdings Limited NOAH 5/29/2018 Earnings Release Date China All-Cap: C
Booz Allen Hamilton Holding Corporation BAH 5/29/2018 Earnings Release Date US Large-Cap: C, US Information Technology: B
salesforce.com, inc. CRM 5/29/2018 Earnings Release Date US Large-Cap: C, US Information Technology: C
Towngas China Company Limited SEHK:1083 5/29/2018 Estimated Earnings Release Date China All-Cap: B
Cathay Pacific Airways Limited SEHK:293 5/29/2018 Estimated Earnings Release Date China All-Cap: B
Value Partners Group Limited SEHK:806 5/29/2018 Estimated Earnings Release Date China All-Cap: B
Tiangong International Company Limited SEHK:826 5/29/2018 Estimated Earnings Release Date China All-Cap: B
Longfor Properties Co. Ltd. SEHK:960 5/29/2018 Estimated Earnings Release Date China All-Cap: B
China Dongxiang (Group) Co., Ltd. SEHK:3818 5/29/2018 Estimated Earnings Release Date China All-Cap: D
Henderson Land Development Company Limited SEHK:12 5/29/2018 Estimated Earnings Release Date China All-Cap: C
Powerlong Real Estate Holdings Limited SEHK:1238 5/29/2018 Estimated Earnings Release Date China All-Cap: C
Kunlun Energy Company Limited SEHK:135 5/29/2018 Estimated Earnings Release Date China All-Cap: C
361 Degrees International Limited SEHK:1361 5/29/2018 Estimated Earnings Release Date China All-Cap: C
Wanda Hotel Development Company Limited SEHK:169 5/29/2018 Estimated Earnings Release Date China All-Cap: D
Comba Telecom Systems Holdings Limited SEHK:2342 5/29/2018 Estimated Earnings Release Date China All-Cap: D
Dah Sing Banking Group Limited SEHK:2356 5/29/2018 Estimated Earnings Release Date China All-Cap: C
Shui On Land Limited SEHK:272 5/29/2018 Estimated Earnings Release Date China All-Cap: D
China Huarong Asset Management Co., Ltd. SEHK:2799 5/29/2018 Estimated Earnings Release Date China All-Cap: F
Chinasoft International Limited SEHK:354 5/29/2018 Estimated Earnings Release Date China All-Cap: B
The United Laboratories International Holdings Limited SEHK:3933 5/29/2018 Estimated Earnings Release Date China All-Cap: A
Minth Group Limited SEHK:425 5/29/2018 Estimated Earnings Release Date China All-Cap: C
Dah Sing Financial Holdings Limited SEHK:440 5/29/2018 Estimated Earnings Release Date China All-Cap: D
Television Broadcasts Limited SEHK:511 5/29/2018 Estimated Earnings Release Date China All-Cap: D
Xiabuxiabu Catering Management (China) Holdings Co., Ltd. SEHK:520 5/29/2018 Estimated Earnings Release Date China All-Cap: B
China Oriental Group Company Limited SEHK:581 5/29/2018 Estimated Earnings Release Date China All-Cap: B
China Medical System Holdings Limited SEHK:867 5/29/2018 Estimated Earnings Release Date China All-Cap: A
Xtep International Holdings Limited SEHK:1368 5/29/2018 Estimated Earnings Release Date China All-Cap: B
Zhong An Real Estate Limited SEHK:672 5/29/2018 Estimated Earnings Release Date China All-Cap: D
China Resources Land Limited SEHK:1109 5/29/2018 Estimated Earnings Release Date China All-Cap: B
Truly International Holdings Limited SEHK:732 5/29/2018 Earnings Release Date China All-Cap: D
Keysight Technologies, Inc. KEYS 5/29/2018 Earnings Release Date US Large-Cap: A, US Information Technology: B
China Everbright Limited SEHK:165 5/29/2018 Estimated Earnings Release Date China All-Cap: B
AviChina Industry & Technology Company Limited SEHK:2357 5/29/2018 Estimated Earnings Release Date China All-Cap: C
Lonking Holdings Limited SEHK:3339 5/29/2018 Estimated Earnings Release Date China All-Cap: A
Shanghai Industrial Holdings Limited SEHK:363 5/29/2018 Estimated Earnings Release Date China All-Cap: C
GCL New Energy Holdings Limited SEHK:451 5/29/2018 Estimated Earnings Release Date China All-Cap: C
CSC Financial Co., Ltd. SEHK:6066 5/29/2018 Estimated Earnings Release Date China All-Cap: D
Fosun International Limited SEHK:656 5/29/2018 Estimated Earnings Release Date China All-Cap: C
Central China Real Estate Limited SEHK:832 5/29/2018 Estimated Earnings Release Date China All-Cap: C
Shandong Weigao Group Medical Polymer Company Limited SEHK:1066 5/29/2018 Estimated Earnings Release Date China All-Cap: C
China Internet Nationwide Financial Services Inc. CIFS 5/29/2018 Estimated Earnings Release Date China All-Cap: D
PVH Corp. PVH 5/29/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: B
Lukardi S.A. LUK 5/29/2018 Earnings Release Date US Large-Cap: C
Analog Devices, Inc. ADI 5/30/2018 Earnings Release Date US Large-Cap: B, US Information Technology: A
Xinyuan Real Estate Co., Ltd. XIN 5/30/2018 Earnings Release Date China All-Cap: D
DSW Inc. DSW 5/30/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: C
Dick's Sporting Goods, Inc. DKS 5/30/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: D
Guess?, Inc. GES 5/30/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: B
Box, Inc. BOX 5/30/2018 Earnings Release Date US Large-Cap: F, US Information Technology: F
Hengan International Group Company Limited SEHK:1044 5/30/2018 Estimated Earnings Release Date China All-Cap: B
Meitu, Inc. SEHK:1357 5/30/2018 Estimated Earnings Release Date China All-Cap: F
Fantasia Holdings Group Co., Limited SEHK:1777 5/30/2018 Estimated Earnings Release Date China All-Cap: C
Colour Life Services Group Co., Limited SEHK:1778 5/30/2018 Estimated Earnings Release Date China All-Cap: A
Dah Chong Hong Holdings Limited SEHK:1828 5/30/2018 Estimated Earnings Release Date China All-Cap: A
Xingda International Holdings Limited SEHK:1899 5/30/2018 Estimated Earnings Release Date China All-Cap: D
Jiayuan International Group Limited SEHK:2768 5/30/2018 Estimated Earnings Release Date China All-Cap: B
China Resources Pharmaceutical Group Limited SEHK:3320 5/30/2018 Estimated Earnings Release Date China All-Cap: B
Shougang Fushan Resources Group Limited SEHK:639 5/30/2018 Estimated Earnings Release Date China All-Cap: D
Tongda Group Holdings Limited SEHK:698 5/30/2018 Estimated Earnings Release Date China All-Cap: C
Dollar Tree, Inc. DLTR 5/30/2018 Estimated Earnings Release Date US Large-Cap: A, US Consumer Discretionary: B
Tian Ge Interactive Holdings Limited SEHK:1980 5/30/2018 Earnings Release Date China All-Cap: B
American Eagle Outfitters, Inc. AEO 5/30/2018 Estimated Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
Zuora, Inc. ZUO 5/30/2018 Earnings Release Date US Large-Cap: F
First Pacific Company Limited SEHK:142 5/30/2018 Estimated Earnings Release Date China All-Cap: C
China Shenghai Food Holdings Company Limited SEHK:1676 5/30/2018 Estimated Earnings Release Date China All-Cap: C
China Mengniu Dairy Company Limited SEHK:2319 5/30/2018 Estimated Earnings Release Date China All-Cap: B
China Agri-Industries Holdings Limited SEHK:606 5/30/2018 Estimated Earnings Release Date China All-Cap: D
China High Speed Transmission Equipment Group Co., Ltd. SEHK:658 5/30/2018 Estimated Earnings Release Date China All-Cap: D
China Education Group Holdings Limited SEHK:839 5/30/2018 Estimated Earnings Release Date China All-Cap: D
Summit Ascent Holdings Limited SEHK:102 5/30/2018 Estimated Earnings Release Date China All-Cap: D
Youyuan International Holdings Limited SEHK:2268 5/30/2018 Estimated Earnings Release Date China All-Cap: B
Canvest Environmental Protection Group Company Limited SEHK:1381 5/30/2018 Estimated Earnings Release Date China All-Cap: B
China Aoyuan Property Group Limited SEHK:3883 5/30/2018 Estimated Earnings Release Date China All-Cap: B
China Grand Pharmaceutical and Healthcare Holdings Limited SEHK:512 5/30/2018 Estimated Earnings Release Date China All-Cap: B
Techtronic Industries Company Limited SEHK:669 5/30/2018 Estimated Earnings Release Date China All-Cap: B