Morning Quant Ride

Jun 01, 2018

US Stocks                                                                                                                                                                                      Click for Free Trial

  • Global stocks are bouncing back this AM as trade tensions between the US and its key trading partners does not appear to be escalating and news that Italian populist parties La Lega and Five-Star Movement have agreed to form a coalition government
  • US equity index futures are advancing this morning with Dow Jones minis +0.55%, S&P500 minis +0.50% and Nasdaq 100 minis 0.43%
  • May Change in Non-farm Payrolls will be closely watched today – released at 8:30am
  • The VIX is down to 14.51 after spiking north of 18 earlier this week
  • VXX July 20 OTM Calls and EEM OTM June 15 Calls/Puts are the most actively traded options contract in the US this AM
  • The yield on the US 10-year government bond is +3.8 basis points to 2.897% as investor worries about trade tensions appear to be easing
  • The USD$ Index is flat ahead of the May Payrolls data release

International Stocks

  • European stocks are bouncing back this morning with the Euro Stoxx 600 +1.01%, FTSE 100 +0.68%, CAC 40 +1.28 % and DAX +0.96%
  • German 10-year bunds are a notable laggard among global sovereign bonds with the yield +6.3 basis points to 0.396%
  • Italian stocks are rallying with the FTSE MIB +2.45% after populist parties La Lega and the Five-Star Movement averted an early election by agreeing to form a coalition government
  • Italian 10-year sovereign yield is down 22.5 basis points to 2.532% -- below the yield on the US 10-year!
  • Spanish Stocks are advancing with the IBEX 35 +1.91% after Prime Minister Mariano Rajoy lost a vote of no confidence.  Socialist Party head Pedro Sanchez is set to become Prime Minister
  • Spanish bonds are rallying with the yield on the Spanish 10-year down 17 basis points to 1.300%
  • Worries about escalating trade tensions between the United States and its allies weighed on Asian stocks
  • The Nikkei 225 -0.14%, Hang Seng +0.08%, Hang Seng China Enterprise +0.35%
  • Aussie stocks finished trading -0.36% following news the United States implemented steel and aluminum tariffs on the European Union (EU), Canada and Mexico

Cryptos

  • Iota has partnered with Norway’s largest financial group, DNB ASA. The financial firm signed a Memorandum of Understanding with the IOTA foundation and the firm is looking to incorporate Iota’s tangle technology
  • ImToken Pte., a Chinese startup has developed a cryptocurrency wallet application that has more than 4mm users and has stored USD$35bn of crypto assets over the past year, more than Coinbase. ImToken announced Series A funding this week
  • Cryptocurrency exchange firm, Huobi, is launching a cryptocurrency exchange traded fund that will allow retail investors to diversify exposure across multiple cryptocurrencies. Quantamize CryptoFolios offer an optimized portfolio of cryptocurrencies with flexibility to adjust the composition of coins in the portfolio

*Data in Price Return

S&P 500 Sector Performance

*Date in Total Return as of Previous EOD

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

Lam Research Corporation - 15.63% off its 52wkH on 03/13/2018, reports earnings on 07/26/2018

Louisiana-Pacific Corporation - 6.44% off its 52wkH on 04/17/2018, reports earnings on 08/01/2018

Macy's, Inc. - 3.03% off its 52wkH on 05/30/2018, reports earnings on 08/10/2018

Micron Technology, Inc. - 10.93% off its 52wkH on 05/30/2018, reports earnings on 06/20/2018

MKS Instruments, Inc. - 12.53% off its 52wkH on 03/12/2018, reports earnings on 07/26/2018

SMART Global Holdings, Inc. - 21.45% off its 52wkH on 01/00/1900, reports earnings on 06/19/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

AbbVie Inc (ABBV) has been downgraded to neutral, from a buy rating at Piper Jaffray. AbbVie shares are down 0.70% pre-market with a price of $98.25.

Abercrombie & Fitch (ANF) reported losses per share that were lower than expected (-$0.56 vs -$0.77 projected). Shares of Abercrombie are 2.94% higher to a price of $24.55.

Apple Inc (AAPL) stock is up 0.43% pre-market after UBS raised its price target for Apple shares from $190 to $210. Apple stock is currently trading with a $186 handle.

Several hundred AT&T (T) workers have gone on strike, claiming that the company was illegally communicating with union employees during labor negotiations between the union and AT&T.

Big Lots (BIG) stocks is down 9.39% pre-market, to $37.07/share, after the firm announced 1Q2018 EPS that was softer than the consensus ($0.95 vs $1.19 estimated).

Deutsche Bank (DB:DBK) credit has been downgraded by S&P Global to a BBB+ rating, due to “deeper restructuring than [was] previously expected” and that Deutsche Bank “appears set for a period of sustained underperformance compared with peers”.

ExlService (EXLS) has been upgraded to a buy rating at SunTrust Robinson Humphry, with a price target set at $65 (currently trading at $56.69). Shares of ExlSerivce are up 1.87% to $57.75 before the open.

According to a Wall Street Journal report, Facebook (FB) is reportedly close to releasing news shows on its video platform, called Watch, which will feature content from sources such as Fox News and CNN.

LyondellBasell (LYB) shareholders have approved the repurchase of up to 10% of LyondellBassell’s shares.

Union Pacific (UNP) reportedly plans to repurchase up to $20 billion in stock between 2018 and 2020.

Walmart (WMT) is launching a same-day delivery service called Jetblack. The service will allow customer to place orders from Walmart.com, or other competitor websites, through text message.

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
Keysight Technologies, Inc. KEYS Information Technology Electronic Equipment and Instruments 10.85% 10.21% 41.20%
PVH Corp. PVH Consumer Discretionary Apparel, Accessories and Luxury Goods 2.89% 1.38% 16.61%
Facebook, Inc. FB Information Technology Internet Software and Services 2.19% 3.71% 8.68%
Unum Group UNM Financials Life and Health Insurance 1.73% 0.31% -29.29%
Eli Lilly and Company LLY Healthcare Pharmaceuticals 1.41% 2.74% 0.69%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Dollar Tree, Inc. DLTR Consumer Discretionary General Merchandise Stores -14.28% -13.23% -13.87%
Dollar General Corporation DG Consumer Discretionary General Merchandise Stores -9.37% -9.46% -9.38%
Micron Technology, Inc. MU Information Technology Semiconductors -7.96% -6.13% 25.25%
AbbVie Inc. ABBV Healthcare Biotechnology -3.95% -2.12% 2.48%
First American Financial Corporation FAF Financials Property and Casualty Insurance -2.97% -3.38% 1.73%

Source: S&P Capital IQ

Conviction Short Winners and Losers
Winners Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Box, Inc. BOX Information Technology Internet Software and Services -7.56% -6.31% 12.34%
L Brands, Inc. LB Consumer Discretionary Apparel Retail -5.92% -4.23% -2.70%
Centennial Resource Development, Inc. CDEV Energy Oil and Gas Exploration and Production -5.27% -1.90% -4.86%
Tupperware Brands Corporation TUP Consumer Discretionary Housewares and Specialties -5.00% -6.25% -5.39%
Tenet Healthcare Corporation THC Healthcare Healthcare Facilities -3.49% 2.79% 47.99%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
ImmunoGen, Inc. IMGN Healthcare Biotechnology 9.46% 9.88% 78.78%
Smartsheet Inc. SMAR Information Technology Application Software 8.96% 10.61% 0.00%
Seattle Genetics, Inc. SGEN Healthcare Biotechnology 6.53% 8.42% 13.07%
Esperion Therapeutics, Inc. ESPR Healthcare Biotechnology 4.96% 2.53% -41.54%
Pure Storage, Inc. PSTG Information Technology Technology Hardware, Storage and Peripherals 4.89% 3.47% 35.31%

On  Mobile/Tablet scroll to the right.

Source: S&P Capital IQ

Events Calendar

On  Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
Big Lots, Inc. BIG 6/1/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Abercrombie & Fitch Co. ANF 6/1/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: B
Ford Motor Company F 6/1/2018 Earnings Release Date US Large-Cap: B, US Consumer Discretionary: B
China Resources Gas Group Limited SEHK:1193 6/1/2018 Estimated Earnings Release Date China All-Cap: B
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. SEHK:1558 6/1/2018 Estimated Earnings Release Date China All-Cap: B
Kingboard Laminates Holdings Limited SEHK:1888 6/1/2018 Estimated Earnings Release Date China All-Cap: C
China Traditional Chinese Medicine Holdings Co. Limited SEHK:570 6/1/2018 Estimated Earnings Release Date China All-Cap: B
China Railway Signal & Communication Corporation Limited SEHK:3969 6/1/2018 Estimated Earnings Release Date China All-Cap: B
Grand Baoxin Auto Group Limited SEHK:1293 6/1/2018 Estimated Earnings Release Date China All-Cap: C
Dynagreen Environmental Protection Group Co., Ltd. SEHK:1330 6/1/2018 Estimated Earnings Release Date China All-Cap: C
Zhongyu Gas Holdings Limited SEHK:3633 6/1/2018 Estimated Earnings Release Date China All-Cap: C
Greentown China Holdings Limited SEHK:3900 6/1/2018 Estimated Earnings Release Date China All-Cap: C
Gemdale Properties and Investment Corporation Limited SEHK:535 6/1/2018 Estimated Earnings Release Date China All-Cap: C
Tarena International, Inc. TEDU 6/4/2018 Earnings Release Date China All-Cap: D
Palo Alto Networks, Inc. PANW 6/4/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
HealthEquity, Inc. HQY 6/4/2018 Earnings Release Date US Large-Cap: C
Coupa Software Incorporated COUP 6/4/2018 Earnings Release Date US Large-Cap: D, US Information Technology: C
Xin Point Holdings Limited SEHK:1571 6/4/2018 Estimated Earnings Release Date China All-Cap: C
KWG Property Holding Limited SEHK:1813 6/4/2018 Estimated Earnings Release Date China All-Cap: C
Shun Tak Holdings Limited SEHK:242 6/4/2018 Estimated Earnings Release Date China All-Cap: C
Greenland Hong Kong Holdings Limited SEHK:337 6/4/2018 Estimated Earnings Release Date China All-Cap: C
Legend Holdings Corporation SEHK:3396 6/4/2018 Estimated Earnings Release Date China All-Cap: C
China BlueChemical Ltd. SEHK:3983 6/4/2018 Estimated Earnings Release Date China All-Cap: D
China Foods Limited SEHK:506 6/4/2018 Estimated Earnings Release Date China All-Cap: D
Sino Land Company Limited SEHK:83 6/4/2018 Estimated Earnings Release Date China All-Cap: C
China Travel International Investment Hong Kong Limited SEHK:308 6/4/2018 Estimated Earnings Release Date China All-Cap: A
Honghua Group Limited SEHK:196 6/4/2018 Estimated Earnings Release Date China All-Cap: D
Esprit Holdings Limited SEHK:330 6/4/2018 Estimated Earnings Release Date China All-Cap: F
VeriFone Systems, Inc. PAY 6/4/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: C
Want Want China Holdings Limited SEHK:151 6/4/2018 Earnings Release Date China All-Cap: B
Country Garden Holdings Company Limited SEHK:2007 6/4/2018 Estimated Earnings Release Date China All-Cap: A
SOHO China Limited SEHK:410 6/4/2018 Estimated Earnings Release Date China All-Cap: C
CPMC Holdings Limited SEHK:906 6/4/2018 Estimated Earnings Release Date China All-Cap: C
CIMC Enric Holdings Limited SEHK:3899 6/4/2018 Estimated Earnings Release Date China All-Cap: B
Zhou Hei Ya International Holdings Company Limited SEHK:1458 6/4/2018 Estimated Earnings Release Date China All-Cap: C
Hengdeli Holdings Limited SEHK:3389 6/4/2018 Estimated Earnings Release Date China All-Cap: D
Lee and Man Paper Manufacturing Limited SEHK:2314 6/4/2018 Estimated Earnings Release Date China All-Cap: A
Kerry Properties Limited SEHK:683 6/4/2018 Estimated Earnings Release Date China All-Cap: B
YY Inc. YY 6/5/2018 Earnings Release Date China All-Cap: A
Navistar International Corporation NAV 6/5/2018 Earnings Release Date US Large-Cap: D, US Industrials: B
HD Supply Holdings, Inc. HDS 6/5/2018 Earnings Release Date US Large-Cap: C, US Industrials: C
Ambarella, Inc. AMBA 6/5/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
Ollie's Bargain Outlet Holdings, Inc. OLLI 6/5/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: B
Guidewire Software, Inc. GWRE 6/5/2018 Earnings Release Date US Large-Cap: D, US Information Technology: D
China Everbright Limited SEHK:165 6/5/2018 Estimated Earnings Release Date China All-Cap: B
AviChina Industry & Technology Company Limited SEHK:2357 6/5/2018 Estimated Earnings Release Date China All-Cap: C
Lonking Holdings Limited SEHK:3339 6/5/2018 Estimated Earnings Release Date China All-Cap: A
Shanghai Industrial Holdings Limited SEHK:363 6/5/2018 Estimated Earnings Release Date China All-Cap: C
GCL New Energy Holdings Limited SEHK:451 6/5/2018 Estimated Earnings Release Date China All-Cap: C
CSC Financial Co., Ltd. SEHK:6066 6/5/2018 Estimated Earnings Release Date China All-Cap: D
Fosun International Limited SEHK:656 6/5/2018 Estimated Earnings Release Date China All-Cap: C
Central China Real Estate Limited SEHK:832 6/5/2018 Estimated Earnings Release Date China All-Cap: C
Shandong Weigao Group Medical Polymer Company Limited SEHK:1066 6/5/2018 Estimated Earnings Release Date China All-Cap: C
China Internet Nationwide Financial Services Inc. CIFS 6/5/2018 Estimated Earnings Release Date China All-Cap: D
Casey's General Stores, Inc. CASY 6/5/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Staples: C
Okta, Inc. OKTA 6/5/2018 Earnings Release Date US Large-Cap: F, US Information Technology: F
Zscaler, Inc. ZS 6/5/2018 Earnings Release Date US Large-Cap: F, US Information Technology: F
Link Real Estate Investment Trust SEHK:823 6/5/2018 Earnings Release Date China All-Cap: C
Powerlong Real Estate Holdings Limited SEHK:1238 6/5/2018 Estimated Earnings Release Date China All-Cap: C
361 Degrees International Limited SEHK:1361 6/5/2018 Estimated Earnings Release Date China All-Cap: C
China Resources Land Limited SEHK:1109 6/5/2018 Estimated Earnings Release Date China All-Cap: B
Comba Telecom Systems Holdings Limited SEHK:2342 6/5/2018 Estimated Earnings Release Date China All-Cap: D
Minth Group Limited SEHK:425 6/5/2018 Estimated Earnings Release Date China All-Cap: C
Xtep International Holdings Limited SEHK:1368 6/5/2018 Estimated Earnings Release Date China All-Cap: B
Shui On Land Limited SEHK:272 6/5/2018 Estimated Earnings Release Date China All-Cap: D
The United Laboratories International Holdings Limited SEHK:3933 6/5/2018 Estimated Earnings Release Date China All-Cap: A
Dah Sing Banking Group Limited SEHK:2356 6/5/2018 Estimated Earnings Release Date China All-Cap: C
China Oriental Group Company Limited SEHK:581 6/5/2018 Estimated Earnings Release Date China All-Cap: B
Henderson Land Development Company Limited SEHK:12 6/5/2018 Estimated Earnings Release Date China All-Cap: C
Kunlun Energy Company Limited SEHK:135 6/5/2018 Estimated Earnings Release Date China All-Cap: C
Wanda Hotel Development Company Limited SEHK:169 6/5/2018 Estimated Earnings Release Date China All-Cap: D
China Huarong Asset Management Co., Ltd. SEHK:2799 6/5/2018 Estimated Earnings Release Date China All-Cap: F
Chinasoft International Limited SEHK:354 6/5/2018 Estimated Earnings Release Date China All-Cap: B
Dah Sing Financial Holdings Limited SEHK:440 6/5/2018 Estimated Earnings Release Date China All-Cap: D
Television Broadcasts Limited SEHK:511 6/5/2018 Estimated Earnings Release Date China All-Cap: D
Xiabuxiabu Catering Management (China) Holdings Co., Ltd. SEHK:520 6/5/2018 Estimated Earnings Release Date China All-Cap: B
China Medical System Holdings Limited SEHK:867 6/5/2018 Estimated Earnings Release Date China All-Cap: A
Zhong An Real Estate Limited SEHK:672 6/5/2018 Estimated Earnings Release Date China All-Cap: D