Morning Quant Ride

May 30, 2018

US Stocks

  • Global stocks are bouncing back following yesterday’s sell-off on the news that the Italians may hold snap elections after La Lega and the Five-Star Movement failed to create a coalition government
  • US equity index futures are advancing this AM with Dow Jones minis +0.67%, S&P500 minis +0.57% and Nasdaq 100 minis +0.44%
  • The VIX is down to 15.98 after closing at 17.02 yesterday (reached a high of 18.78)
  • OTM June 1 Calls on Bank of America (BAC) are the most heavily traded options this morning
  • July 20 OTM Calls on the S&P Financial Select iShare (XLF) are a heavily traded options contract this AM after US financials sold-off yesterday with the S&P Financial Select iShare (XLF) -3.34% and KBW Bank Index (BKX) -3.93%
  • US trade representatives are set to meet with Chinese officials ahead of Commerce Secretary Wilbur Ross’ visit to Beijing this weekend

International Stocks

  • European stocks are rebounding this morning with the Euro Stoxx 600 +0.23%, FTSE 100 +0.31%, CAC 40 -0.16 % and DAX +0.70%
  • German 10-year Bund yields are +9.9 basis points this AM to 0.353%
  • Italian 10-year sovereigns are rallying with the yield on the 10-year Italian government bond -30.3 basis points to 2.826%
  • Italian stocks are rallying with the FTSE MIB +2.19% on speculation that a second election can be avoided as leader of La Lega and the Five-Star Movement attempt to find a compromise candidate for Finance Minister
  • The Socialist Party in Spain continues to push for a no-confidence vote for Prime Minister Mariano Rajoy this Friday.  Spanish stocks are positive this morning with the rest of Europe with the IBEX 35 +0.94%
  • Yield on Spanish 10-year sovereign bond is -7 basis points to 1.507%
  • Yesterday’s sell-off in US stocks (and European stocks) amidst the Italian political crisis carried over to Asian stocks earlier this morning with the Nikkei 225 -1.52%%, Hang Seng -1.40%, Hang Seng China Enterprise -1.59%
  • It was the 8th straight day of negative returns for the Nikkei 225 – “longest losing streak since 2012”
  • Renewed fears about a trade war between Washington and Beijing weighed on Hong Kong stocks

Cryptos

  • China’s President Xi Jinping acknowledged the potential of blockchain in a speech this week, endorsing the technology for the first time. Xi said “artificial intelligence, internet of things and blockchain [are] constantly making application breakthroughs”. The State Council has introduced the concept of blockchain as part of an information technology reformation strategy in the country’s 13th five-year economic development plan
  • Bitbay, the largest cryptocurrency exchange in Poland, is suspending its trading activities in Poland and moving to Malta, as Polish banks will no longer cooperate with the exchange
  • Ethereum Classic (ETC) introduced a new fork. The fork upgrade creates a further distinction from the Ethereum blockchain. Ethereum Classic (ETC) is transitioning to a proof-of-work consensus system while Ethereum (ETH) uses a proof-of-stake consensus system

*Data in Price Return

S&P 500 Sector Performance

*Data in Total Return

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

Allison Transmission Holdings, Inc. - 7.81% off its 52wkH on 10/31/2017, reports earnings on 07/27/2018

Cracker Barrel Old Country Store, Inc. - 12.41% off its 52wkH on 01/29/2018, reports earnings on 09/11/2018

DXC Technology Company - 16.56% off its 52wkH on 03/20/2018, reports earnings on 08/09/2018

Eastman Chemical Company - 7.32% off its 52wkH on 03/13/2018, reports earnings on 07/26/2018

Gentex Corporation - 5.61% off its 52wkH on 04/17/2018, reports earnings on 07/20/2018

Lam Research Corporation - 14.73% off its 52wkH on 03/13/2018, reports earnings on 07/26/2018

MSC Industrial Direct Co., Inc. - 9.93% off its 52wkH on 01/09/2018, reports earnings on 07/11/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

ANGI HomeServices (ANGI) has been upgraded to a buy rating at Deutsche Bank. Shares of ANGI HomeServices are up 2.17% before the start of trading.

Dick’s Sporting Goods (DKS) announced 1Q2018 that beat forecasts ($0.54 vs $0.44 anticipated). Dick’s stock is up 15.12% pre-market.

DSW Inc (DSW) posted 1Q2018 EPS that was above estimates ($0.39 vs $0.37 consensus) but provided FY2018 EPS guidance with a midpoint that was below projections ($1.52-$1.67 vs $1.62 expected). DSW’s stock is down 4.10% prior to today’s trading.

International Business Machines (IBM) is facing a class action lawsuit which claims that the company’s hiring and recruiting practices, designed to transform the firm into a “hip, Millennial-centric tech company”, are discriminatory against older job-seekers.

Michael Kors Holdings (KORS) released 4Q2017 EPS that was modestly higher than forecasted ($0.63 vs $0.60 projected). Michael Kors is down 2.43% pre-market. 

Movado Group (MOV) shares are trading 5.69% higher pre-market after reporting 1Q2018 EPS that was significantly higher than expected ($0.37 vs $0.11 anticipated).

National Bank of Canada’s (TSX:NA) 2Q2018 EPS came in at C$1.45, which was higher than the consensus ($C$1.43 forecasted). National Bank of Canada's shares are down 0.82% pre-market.

Durability issues with Rolls-Royce’s (LSE:RR) Trent 1000 turbine will likely keep several Boeing Co (BA) 787 Dreamliner planes grounded over the next month while the problem is resolved.

Salesforce.com (CRM) stock is up 4.95% before the open, with the company reporting stronger than expected earnings results after the close yesterday.

Tesla Inc (TSLA) CEO Elon Musk remarked on Twitter that although Tesla is motivated to open operations in India, the restrictive policy environment creates a significant impediment to local production.

Vivendi SA (ENXTPA:VIV) has lost the right to broadcast French soccer, which it had possessed for more than 30 years, as foreign competition drove prices 60% higher.

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
ICU Medical, Inc. ICUI Healthcare Healthcare Supplies 4.97% 6.37% 34.49%
Copart, Inc. CPRT Industrials Diversified Support Services 2.16% 5.14% 28.32%
Micron Technology, Inc. MU Information Technology Semiconductors 2.07% 1.84% 52.29%
Marathon Petroleum Corporation MPC Energy Oil and Gas Refining and Marketing 0.79% -1.90% 17.63%
Ollie's Bargain Outlet Holdings, Inc. OLLI Consumer Discretionary General Merchandise Stores 0.64% 1.14% 32.96%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Principal Financial Group, Inc. PFG Financials Life and Health Insurance -5.13% -5.69% -6.72%
BB&T Corporation BBT Financials Regional Banks -4.27% -4.53% -0.63%
M&T Bank Corporation MTB Financials Regional Banks -4.10% -4.53% -5.78%
Comerica Incorporated CMA Financials Regional Banks -4.09% -5.29% -0.87%
Unum Group UNM Financials Life and Health Insurance -3.52% -3.18% -21.03%

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
Immunomedics, Inc. IMMU Healthcare Biotechnology -3.73% -2.88% 20.43%
GrafTech International Ltd. EAF Industrials Electrical Components and Equipment -3.39% -3.15% 15.11%
Esperion Therapeutics, Inc. ESPR Healthcare Biotechnology -3.57% -3.95% -48.29%
Zuora, Inc. ZUO Information Technology Systems Software -3.41% -1.62% 7.32%
Arena Pharmaceuticals, Inc. ARNA Healthcare Biotechnology -3.24% -4.61% 10.09%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
DocuSign, Inc. DOCU Information Technology Internet Software and Services 4.44% 3.48% 0.00%
Okta, Inc. OKTA Information Technology Internet Software and Services 3.43% 5.88% 109.53%
Zscaler, Inc. ZS Information Technology Systems Software 2.73% -3.47% 0.00%
SM Energy Company SM Energy Oil and Gas Exploration and Production 2.56% -2.36% 14.49%
Tenet Healthcare Corporation THC Healthcare Healthcare Facilities 2.52% 4.87% 133.11%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
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
Ciena Corporation CIEN 5/31/2018 Earnings Release Date US Large-Cap: C, US Information Technology: D
Burlington Stores, Inc. BURL 5/31/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: A
Tech Data Corporation TECD 5/31/2018 Earnings Release Date US Large-Cap: C, US Information Technology: A
Lululemon Athletica Inc. LULU 5/31/2018 Earnings Release Date US Large-Cap: B
Dollar General Corporation DG 5/31/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: A
Costco Wholesale Corporation COST 5/31/2018 Earnings Release Date US Large-Cap: C, US Consumer Staples: B
GameStop Corp. GME 5/31/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: C
VMware, Inc. VMW 5/31/2018 Earnings Release Date US Large-Cap: C, US Information Technology: D
Workday, Inc. WDAY 5/31/2018 Earnings Release Date US Large-Cap: D, US Information Technology: C
Ulta Beauty, Inc. ULTA 5/31/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
Road King Infrastructure Limited SEHK:1098 5/31/2018 Estimated Earnings Release Date China All-Cap: B
MMG Limited SEHK:1208 5/31/2018 Estimated Earnings Release Date China All-Cap: B
Yuexiu Property Company Limited SEHK:123 5/31/2018 Estimated Earnings Release Date China All-Cap: B
Swire Properties Limited SEHK:1972 5/31/2018 Estimated Earnings Release Date China All-Cap: C
Fang Holdings Limited SFUN 5/31/2018 Estimated Earnings Release Date China All-Cap: C
Brilliance China Automotive Holdings Limited SEHK:1114 5/31/2018 Estimated Earnings Release Date China All-Cap: D
Enterprise Development Holdings Limited SEHK:1808 5/31/2018 Estimated Earnings Release Date China All-Cap: F
AVIC International Holding (HK) Limited SEHK:232 5/31/2018 Estimated Earnings Release Date China All-Cap: F
China Power International Development Limited SEHK:2380 5/31/2018 Estimated Earnings Release Date China All-Cap: C
ENN Energy Holdings Limited SEHK:2688 5/31/2018 Estimated Earnings Release Date China All-Cap: B
IGG Inc SEHK:799 5/31/2018 Estimated Earnings Release Date China All-Cap: B
Sinopec Kantons Holdings Limited SEHK:934 5/31/2018 Estimated Earnings Release Date China All-Cap: D
LVGEM (China) Real Estate Investment Company Limited SEHK:95 5/31/2018 Estimated Earnings Release Date China All-Cap: B
China Taiping Insurance Holdings Company Limited SEHK:966 5/31/2018 Estimated Earnings Release Date China All-Cap: C
The Bank of East Asia, Limited SEHK:23 5/31/2018 Estimated Earnings Release Date China All-Cap: C
Leidos Holdings, Inc. LDOS 5/31/2018 Estimated Earnings Release Date US Large-Cap: B, US Information Technology: A
CMBC Capital Holdings Limited SEHK:1141 5/31/2018 Estimated Earnings Release Date China All-Cap: D
China Merchants Port Holdings Company Limited SEHK:144 5/31/2018 Estimated Earnings Release Date China All-Cap: C
Sunac China Holdings Limited SEHK:1918 5/31/2018 Estimated Earnings Release Date China All-Cap: B
Hopson Development Holdings Limited SEHK:754 5/31/2018 Estimated Earnings Release Date China All-Cap: C
L'Occitane International S.A. SEHK:973 5/31/2018 Estimated Earnings Release Date China All-Cap: C
Patterson Companies, Inc. PDCO 5/31/2018 Estimated Earnings Release Date US Large-Cap: C