Morning Quant Ride

Jun 08, 2018

US Stocks                                                                                                                                                                            Start your free trial today

  • Global stocks are under pressure ahead of the G7 summit in Quebec, Canada today following comments by US President Donald Trump that suggest the US is prepared escalate its fight over trade with its G7 allies
  • US equity index futures are declining this morning with the Dow Jones minis -0.49%, S&P500 minis -0.45% and Nasdaq 100 minis -0.91% -- trading near their pre-market low today
  • The VIX is remains relatively muted at 13.24 up from yesterday’s close of 12.13
  • MiMedx Group (MDXG) January 19 OTM Puts, SPY June 8 OTM Calls and Puts and QQQ June 15 OTM Calls are the most heavily traded options contracts in the US pre-market this AM
  • The yield on the US 10-year government bond is little changed at 2.917%
  • The USD$ Index is +0.34% with G7 currencies selling off (outside of JPY¥ +0.33%) in sympathy with global stocks ahead of today’s G7 Summit

International Stocks

  • European stocks are selling off ahead of the start of the G7 Summit in Quebec, Canada
  • Euro Stoxx 600  is down 0.31%, off its lows earlier in the morning
  • Major regional European indices are negative with the FTSE 100 -0.39%, CAC 40 -0.22% and DAX -0.66%
  • The VSTOXX, the European stocks equivalent of the VIX, is at 15.4847 up from yesterday’s closed of 14.4204
  • German 10-Year Bund yields moved 5.4 basis points lower, to 0.424%
  • Asia stocks finished their trading session negative with rising trade tensions between G7 countries pressuring the Nikkei 225 -0.56%, Hang Seng -1.76%, Hang Seng China Enterprise -1.95%
  • The drop in the Hang Seng and Hang Seng China Enterprise indices were the biggest drops in the index in more than 2 weeks as investors took profits following the six day rally in Hong Kong listed stocks
  • ZAR is down 1.23% vs the greenback as disappointing economic data out of South Africa more or less points to zero change of a rate increase
  • BRL is down 1.44% vs. the USD$ this AM (after closing down 1.09% yesterday and 1.70% on Tuesday) as worsening political turmoil pressures Brazilian assets (Bovespa closed down 2.98% yesterday)
  • Moody’s downgraded Turkish banks to negative watch – Turkish banks closed down 2.6% today

Cryptos

  • Waves, an open source blockchain which allows users to launch their own cryptocurrency, now allows users to upload arbitrary data to its blockchain. While this concept is not novel in the cryptocurrency space, it is an application that will preserve records of patents, photos, smart contract data etc.
  • Fortune has reported that Blockchain consortium R3 may be insolvent by next year. R3 is a consortium providing blockchain based services to major banks such as J.P. Morgan and Goldman Sachs
  • The South African Reserve Bank (SARB) has released a report on a simulation of a real-world trial of a distributed ledger technology (DLT) wholesale payment and settlement system. The simulation showed that the daily volume of the South African payments system can be processed in less than 2 hours with complete confidentiality of transactions and settlement finality
  • Binance Labs, the venture arm of the cryptocurrency exchange Binance, and NEO Global Capital, have invested USD$12mm into a crowdequity platform, Republic – a spinoff from AngelList.  The startup aims to help ICO issuers manage token sales
  • Quantamize.com has updated its 3-Day Buy/Don’t Own trading signals on 30 cryptocurrencies – 5 are rated as Buy. Quantamize’s CryptoFolios will be updated Monday Morning

*Data in Price Return

S&P 500 Sector Performance

*Data in Total Return as of Previous Day's EOD

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

Applied Materials, Inc. - 17.87% off its 52wkH on 03/12/2018, reports earnings on 08/16/2018

Electro Scientific Industries, Inc. - 30.12% off its 52wkH on 11/27/2017, reports earnings on 07/30/2018

Lam Research Corporation - 19.61% off its 52wkH on 03/13/2018, reports earnings on 07/26/2018

Malibu Boats, Inc. - 2.44% off its 52wkH on 06/06/2018, reports earnings on 09/07/2018

Photronics, Inc. - 19.91% off its 52wkH on 06/09/2017, reports earnings on 08/15/2018

Westlake Chemical Corporation - 5.36% off its 52wkH on 05/22/2018, reports earnings on 08/01/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Alibaba (BABA) subsidiary Ant Financial raised $14 billion through its latest round of funding. Forbes now values Ant Financial at $150 billion, which would make it the highest valued private tech startup in the world.

Apple Inc (AAPL) shares are down 1.37% to $190.80 pre-market after the company reportedly warned its suppliers to expect a significant decline in orders for iPhone components in 2H2018

Concho Resources (CXO) was downgraded to market perform at Bernstein, with a price target of $130. Shares of Concho Resources are down 6.02% to $122.50 pre-market.

Consumer Portfolio Services Inc (CPSS) has been upgraded to outperform from market perform at JP Morgan. Shares of Consumer Portfolio Services are up 2.24% to $4.11 before the open.

According to a Bloomberg report, Deutsche Bank AG (DB:DBK) Chairman Paul Achleitner has spoken with several of the company’s top shareholders, as well as key government officials, about a potential merger with Commerzbank AG (DB:CBK). No official negotiations have been held yet, and no deal appears imminent. Handelsblatt reported this morning that major shareholders of Deutsche Bank are skeptical of a Deutsche Bank-Commerzbank merger.

Deutsche Post AG (XTRA:DPW) shares are down 8.66% to €29.86 after the company lowered its FY2018 EBIT guidance, and now expects FY2018 EBIT to be €3.2 billion (down from €4.15 billion previously).

Dexcom (DXCM) stock is up 19.3% pre-market to $91.22 after the company was upgraded to overweight at JP Morgan. JP Morgan’s price target for Dexcom has been set at $115.

DocuSign (DOCU) shares are up 7.66% to $60.28 pre-market, after the company reported stronger than expected 1Q2018 EPS ($0.01 vs -$0.06 projected). DocuSign went public earlier this year.

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
Vail Resorts, Inc. MTN Consumer Discretionary Leisure Facilities 4.48% 10.29% 27.42%
Fortive Corporation FTV Industrials Industrial Machinery 4.03% 5.65% 7.78%
Cboe Global Markets, Inc. CBOE Financials Financial Exchanges and Data 2.58% 4.56% -17.40%
Owens Corning OC Industrials Building Products 2.36% 2.40% -30.72%
Tyson Foods, Inc. TSN Consumer Staples Packaged Foods and Meats 2.21% 2.38% -14.01%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
The J. M. Smucker Company SJM Consumer Staples Packaged Foods and Meats -5.37% -5.08% -6.23%
FleetCor Technologies, Inc. FLT Information Technology Data Processing and Outsourced Services -3.55% -0.26% 0.40%
WEX Inc. WEX Information Technology Data Processing and Outsourced Services -2.86% 4.52% 5.52%
Monolithic Power Systems, Inc. MPWR Information Technology Semiconductors -2.78% 0.05% 1.18%
Total System Services, Inc. TSS Information Technology Data Processing and Outsourced Services -1.84% 0.78% 2.02%

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
Nektar Therapeutics NKTR Healthcare Pharmaceuticals -11.69% -41.37% -34.01%
Madrigal Pharmaceuticals, Inc. MDGL Healthcare Biotechnology -9.87% 2.28% 5.49%
ImmunoGen, Inc. IMGN Healthcare Biotechnology -9.22% -10.32% -9.77%
GreenSky, Inc. GSKY Information Technology Data Processing and Outsourced Services -6.36% -13.92% -14.27%
Longfin Corp. LFIN Financials Financial Exchanges and Data -6.32% -11.11% -19.19%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Zscaler, Inc. ZS Information Technology Systems Software 23.30% 34.10% 0.00%
Carrizo Oil & Gas, Inc. CRZO Energy Oil and Gas Exploration and Production 7.63% 7.19% 25.33%
Chesapeake Energy Corporation CHK Energy Oil and Gas Exploration and Production 7.55% 3.75% 18.69%
SM Energy Company SM Energy Oil and Gas Exploration and Production 6.73% 2.59% 7.74%
California Resources Corporation CRC Energy Oil and Gas Exploration and Production 6.56% 9.97% 107.10%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
China Railway Signal & Communication Corporation Limited SEHK:3969 6/8/2018 Estimated Earnings Release Date China All-Cap: B
Grand Baoxin Auto Group Limited SEHK:1293 6/8/2018 Estimated Earnings Release Date China All-Cap: C
Dynagreen Environmental Protection Group Co., Ltd. SEHK:1330 6/8/2018 Estimated Earnings Release Date China All-Cap: C
Zhongyu Gas Holdings Limited SEHK:3633 6/8/2018 Estimated Earnings Release Date China All-Cap: C
Greentown China Holdings Limited SEHK:3900 6/8/2018 Estimated Earnings Release Date China All-Cap: C
Gemdale Properties and Investment Corporation Limited SEHK:535 6/8/2018 Estimated Earnings Release Date China All-Cap: C
RH RH 6/11/2018 Earnings Release Date US Large-Cap: D, US Consumer Discretionary: B
Dave & Buster's Entertainment, Inc. PLAY 6/11/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
The Kroger Co. KR 6/11/2018 Estimated Earnings Release Date US Large-Cap: C, US Consumer Staples: D
China Xinhua Education Group Limited SEHK:2779 6/11/2018 Estimated Earnings Release Date China All-Cap: F
NetDragon Websoft Holdings Limited SEHK:777 6/11/2018 Estimated Earnings Release Date China All-Cap: D
Secoo Holding Limited SECO 6/11/2018 Estimated Earnings Release Date China All-Cap: C
Pivotal Software, Inc. PVTL 6/11/2018 Earnings Release Date US Large-Cap: F
Skyworth Digital Holdings Limited SEHK:751 6/11/2018 Earnings Release Date China All-Cap: D
H&R Block, Inc. HRB 6/12/2018 Earnings Release Date US Large-Cap: C, US Consumer Discretionary: C
Oracle Corporation ORCL 6/12/2018 Estimated Earnings Release Date US Large-Cap: C, US Information Technology: C
Link Motion Inc. LKM 6/12/2018 Estimated Earnings Release Date China All-Cap: F
The Progressive Corporation PGR 6/12/2018 Earnings Release Date US Large-Cap: A
Yixin Group Limited SEHK:2858 6/12/2018 Earnings Release Date China All-Cap: F