Morning Quant Ride

Jun 04, 2018

US Stocks                                                                                                                                                                   Click for Free Trial

  • Global stocks are advancing this AM with investor focus shifting away from trade tensions to the potential for accelerating growth in the US
  • US equity index futures are advancing this morning with Dow Jones minis +0.55%, S&P500 minis +0.38% and Nasdaq 100 minis +0.36%
  • The VIX is currently sitting at 13.67 after spiking to 18.78 last week on worries about early parliamentary elections in Italy destabilizing the European Union (EU)
  • Apple (AAPL) World Wide Developers Conference (WWDC) starts today in San Jose, California
  • The yield on the US 10-year government bond is little changed at 2.908%
  • The US Treasury 2s/10s spread is back down to 41 basis points - - a multi-year low!
  • The USD$ Index is declining this AM, currently, -0.40% with the AUD$ +1.13%, EUR€ +0.55%, and GBP£ +0.23%
  • China Large-Cap iShares ETF (FXI) July 20 OTM Calls are the most actively traded options contract in the US today pre-market

International Stocks

  • European stocks are advancing this morning with the Euro Stoxx 600 +0.43%, FTSE 100 +0.73%, CAC 40 +0.26 % and DAX +0.96%
  • Volume in auto stocks is 153% above their 30-day average following the sell-off last week on worries about rising trade tensions between the United States and Europe
  • More speculation about a UniCredit (BIT:UCG) and Societe Generale (ENXTPA:GLE) merger are dominating European stock headlines this morning
  • The yield on the Italian 10-year government bond continues to normalize downwards, down 11 basis points this AM to 2.528%
  • Spanish bonds continue their bounce back from Friday with the yield on the Spanish 10-Year -7 basis points to 1.342%   
  • Asian stock markets ended higher today, after a strong US Jobs report and easing tensions in Europe, despite the lack of progress in Sino-American trade discussions
  • Market sentiment was further buoyed by the planned Trump-Kim summit expected to be held on June 12 in Singapore
  • The Nikkei 225 +1.37%, Hang Seng +1.66%, the Hang Seng China Enterprise Index +1.91%, and ASX 200 +0.59% were all higher                             

Cryptos

  • ZenCash was recently exposed to a 51% attack yesterday morning. ZenCash’s team stated that they were ready for a situation like this to occur and as a result, the team contacted exchanges to increase confirmation times to disallow the chance of a double-spend. The team found that the hacker was able to double-spend their ZenCash and provide themselves with an extra USD$558,000
  • Japanese financial giant SBI holdings announced that it launched an in-house cryptocurrency exchange. The firm expects to roll out the exchange later to the public in July of this year. The exchange is called VCTRADE and the exchange will focus on trading Ripple (XRP)
  • Indonesia’s Futures Exchange Supervisory Board has made the decision that cryptocurrencies are commodities and can be traded on the country’s futures exchange. This issue was studied for four months, and the announcement came early today
  • Japan’s Financial Services Agency (FSA) has granted 16 cryptocurrency exchange licenses to operate, and 16 more applications are pending

*Data in Price Return

S&P 500 Sector Performance

*Data in Total Return as of Friday's EOD 

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

Click name for Q-Factor rating and financial data.

Conagra Brands, Inc. - 8.21% off its 52wkH on 06/02/2017, reports earnings on 06/22/2018

Exelon Corporation - 3.94% off its 52wkH on 11/15/2017, reports earnings on 08/03/2018

Humana Inc. - 3.39% off its 52wkH on 04/30/2018, reports earnings on 07/30/2018

Ollie's Bargain Outlet Holdings, Inc. - 1.60% off its 52wkH on 05/30/2018, reports earnings on 06/05/2018

Pinnacle Foods Inc. - 3.84% off its 52wkH on 06/02/2017, reports earnings on 08/02/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Bayer AG (DB:BAYN) announced that it will be closing its acquisition of Monsanto on Thursday. Bayer will be raising as much as $30 billion through the sale of equity and bonds to fund the deal.

Commonwealth Bank of Australia (CBA.AU), Australia’s largest lender, will pay a fine of $530 million to settle a suit accusing the firm of engaging in more than 53,000 counts of money-laundering. The penalty is the largest civil penalty in Australian corporate history.

Discovery Inc (DISC.A) will pay $2 billion for the international TV rights to the PGA Tour.

Disney’s (DIS) Solo: A Star Wars Story film may be the first ever Star Wars film to ever lose money. Revenues from the film declined to $29.3 million domestically in the US this past week, a 65% decline from the week prior. The film has generated $148.9 million in US-based revenue, compared to a production cost of $250 million.

DS Smith Plc (LE:SMDS) a UK-based packaging firm, has agreed to acquire Spanish rival Europac for $2.2 billion.

Facebook (FB) is drawing continued criticism over its improper use of data. It has now been revealed that Facebook was engaged in data sharing deals with nearly 60 companies in which Facebook provided users’ private information including education levels, relationship status, work history, religious ties, and political affiliations.

Microsoft (MSFT) reportedly may acquire web-based hosting service GitHub as soon as today. GitHub was valued at $2 billion in 2015.

Prudential Financial (PRU) has been upgraded at Goldman Sachs to a buy from a neutral rating. Goldman’s price target for Prudential has been set at $117 (currently trading with a $98 handle), and shares of Prudential are up 1.75% pre-market.

Whirlpool (WHR) shares are up 2.54% pre-market, to $149.00 per share, are the company was upgraded to outperform at Credit Suisse with a price target of $195.

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
Mettler-Toledo International Inc. MTD Healthcare Life Sciences Tools and Services 3.32% 2.55% -8.15%
Union Pacific Corporation UNP Industrials Railroads 2.91% 1.28% 9.56%
Mastercard Incorporated MA Information Technology Data Processing and Outsourced Services 2.76% 2.20% 29.08%
Baxter International Inc. BAX Healthcare Healthcare Equipment 2.63% 0.23% 12.47%
Texas Instruments Incorporated TXN Information Technology Semiconductors 2.58% 2.90% 9.92%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
American Electric Power Company, Inc. AEP Utilities Electric Utilities -1.87% -0.80% -1.87%
Owens Corning OC Industrials Building Products -1.60% -3.45% -1.60%
Dollar Tree, Inc. DLTR Consumer Discretionary General Merchandise Stores -1.44% -13.28% -1.44%
WEC Energy Group, Inc. WEC Utilities Multi-Utilities -1.31% -0.32% -1.31%
The J. M. Smucker Company SJM Consumer Staples Packaged Foods and Meats -1.21% -3.23% -1.21%

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
SM Energy Company SM Energy Oil and Gas Exploration and Production -11.49% -5.92% -11.49%
Longfin Corp. LFIN Financials Financial Exchanges and Data -8.58% -1.04% -8.58%
Laredo Petroleum, Inc. LPI Energy Oil and Gas Exploration and Production -8.41% -1.28% -8.41%
Apergy Corporation NYSE:APY Energy Oil and Gas Equipment and Services -4.49% -6.23% -4.49%
Diamondback Energy, Inc. FANG Energy Oil and Gas Exploration and Production -4.36% -4.03% -4.36%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Nektar Therapeutics NKTR Healthcare Pharmaceuticals 12.56% 12.99% 51.29%
Zscaler, Inc. ZS Information Technology Systems Software 7.31% 12.95% 0.00%
TripAdvisor, Inc. TRIP Consumer Discretionary Internet and Direct Marketing Retail 5.89% 11.58% 60.21%
Intercept Pharmaceuticals, Inc. ICPT Healthcare Biotechnology 5.83% 4.54% 27.18%
Twitter, Inc. TWTR Information Technology Internet Software and Services 5.62% 8.98% 52.64%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
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