Morning Quant Ride

Jun 11, 2018

US Stocks                                                                                                                                                                              Start your free trial today

 

  • Markets have largely shrugged off controversies surrounding the G-7 meeting. Global stocks are mostly higher ahead of the Trump-Kim summit which is expected to take place today in Singapore
  • US equity index futures are mixed this morning with the Dow Jones minis +0.04%, S&P500 minis -0.05% and Nasdaq 100 minis -0.03%
  • The VIX is up 49 basis points or 4.04%, to 12.62
  • SPY August 17 OTM Calls, SPY June 15 ITM Puts, and EEM July 20 OTM Calls are the most heavily traded options contracts in the US pre-market this AM
  • The US 10-Year yield is up 3 basis points to 2.966%
  • The USD$ index is +0.09%, with weakness in EUR€ and AUD$ offset by strength in JPY¥, GBP£, and CAD$

International Stocks

  • European stocks are mostly higher today, despite political tensions between President Trump and the other G-7 leaders. European market sentiment is largely positive following Italian finance minister, Giovanni Tria, stating that Italy has no plans to leave the Eurozone
  • Euro Stoxx 600 is up +0.49%, off its earlier highs
  • Major regional indices are positive, with the FTSE 100 +0.77%, DAX +0.57%, and the CAC40 +0.24%
  • The VSTOXX, the European stocks equivalent of the VIX, is at 14.44 down 52 basis points or -3.50%
  • German 10-Year Bund yields moved 2.7 basis points higher, to 0.475%
  • The Italian 10-Year yield is down 20.9 basis points to 2.900%, reflecting positive market sentiment regarding Italy’s plan to stay in the Eurozone
  • Asian stocks were mostly higher overnight as focus of the region shifts to the Trump-Kim Summit, with the Nikkei 225 +0.48%, Hang Seng +0.34%, and the Hang Seng China Enterprise Index +0.05%
  • China’s May PPI was 4.1% Y/Y higher than consensus estimates of 3.9% Y/Y
  • Japan’s May M2 money supply of 3.2% Y/Y was lower than consensus estimates of 3.35% Y/Y

Cryptos 

  • Coinrail, a cryptocurrency exchange based in South Korea, was hacked yesterday and sources say that the exchange may have lost up to USD$40mm. Bitcoin (BTC) fell to as low as ~USD$6,700 (-7.4%) following this hack and the general market sold off as well. The exchange has suspended services after the “cyber intrusion” which resulted in a variety of ERC-20 tokens being stolen from the platform. Coinrail cited that NPXS, ATC, and the NPER token were targets of the hack. (See Quantamize Crypto QuantShot on wallet use to safeguard individual investors from exchange hacks)
  • Coinbase has unveiled intentions of entering the Japanese market. The firm now provides services to 32 nations and caters to 20mm clients. The platform permits USD, EUR, GBP, CAD to convert to BTC pairs for trading. Japan currently has 16 cryptocurrency exchanges with 15 pending applications and reportedly, 100 more organizations aiming to enter the space
  • The former Chair of the US Federal Deposit Insurance Corporation (FDIC), Sheila Bair, stated that the Federal Reserve needs to consider issuing a central bank digital currency. Ms. Bair stated that the “past 10 years are proof that current monetary tools are woefully inadequate to stimulate broad-based economic growth”
  • Quantamize has updated its AI Machine Learning 3-Day Crypto Signals last night, and 6 out of 30 cryptocurrencies have a 3-Day signal of Buy.

*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.

Allison Transmission Holdings, Inc. - 7.99% off its 52wkH on 10/31/2017, reports earnings on 07/27/2018

Broadcom Inc. - 3.19% off its 52wkH on 01/00/1900, reports earnings on 09/06/2018

Electro Scientific Industries, Inc. - 32.03% off its 52wkH on 11/27/2017, reports earnings on 07/30/2018

Intel Corporation - 4.43% off its 52wkH on 06/04/2018, reports earnings on 07/26/2018

Macy's, Inc. - 3.51% off its 52wkH on 06/07/2018, reports earnings on 08/10/2018

Xcerra Corporation - 2.63% off its 52wkH on 06/06/2018, reports earnings on 08/29/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

According to a Financial Times report, BlackRock (BLK) is in negotiations to buy a minority stake in Eurizon, Italy’s second-largest fund house with over €314 billion under management. BlackRock currently holds a 5% stake in Intesa Sanpaolo (BIT:ISP), which owns Eurizon.

China Oceanwide Holdings Group’s (SEHK:715) plan to acquire Genworth Financial (GNW), an insurance provider with a long-term care niche, has been approved by a US national security panel. Genworth’s stock is up 27.30% pre-market to $4.85 per share ($5 billion total value).

Daimler AG (XTRA:DAI) is down 1.94% to €60.76 following reports that auto regulator KBA discovered 5 unapproved software functions in the company’s Euro 6 diesel engines, and that as many as 1 million vehicles may be affected.

Envision Healthcare Corp (EVHC) is advancing 2.50% before the open to $44.73 after reports that the company will be acquired by KKR & Co (KKR) for $46.00 per share.

HSBC Holdings PLC (LSE:HSBA) CEO John Flint has outlined a plan to invest upwards of $17 billion by 2020 to develop key Asian markets and improve technological capabilities.

Incyte Corp (INCY) is up 1.49% pre-market to $71.05 after being upgraded to outperform at Evercore. Evercore’s price target for Incyte is $96.

Inmarsat PLC (LSE:ISAT) shares are up 13.95% to £5.40 per share after the company reportedly rejected an acquisition bid from EchoStar Corp (SATS).

Rent-A-Center (RCII) has determined that the company is no longer for sale, after the company failed to receive acquisition bids that met the firm’s objectives.

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
Micron Technology, Inc. MU Information Technology Semiconductors 2.95% 4.51% 49.29%
Owens Corning OC Industrials Building Products 2.90% 5.37% -28.70%
McCormick & Company, Incorporated MKC Consumer Staples Packaged Foods and Meats 2.40% 2.95% 1.54%
CSX Corporation CSX Industrials Railroads 2.01% 2.49% 21.92%
The Procter & Gamble Company PG Consumer Staples Household Products 1.87% 5.08% -16.00%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Texas Instruments Incorporated TXN Information Technology Semiconductors -1.28% 0.82% 3.42%
Allison Transmission Holdings, Inc. ALSN Industrials Construction Machinery and Heavy Trucks -1.15% 0.43% 1.77%
Service Corporation International SCI Consumer Discretionary Specialized Consumer Services -0.96% 0.25% -0.07%
Starbucks Corporation SBUX Consumer Discretionary Restaurants -0.95% -0.54% -0.12%
Apple Inc. AAPL Information Technology Technology Hardware, Storage and Peripherals -0.91% 0.77% 2.58%

Source: S&P Capital IQ

Conviction Short Winners and Losers

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Winners Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Longfin Corp. LFIN Financials Financial Exchanges and Data -6.25% -16.67% -24.24%
Immunomedics, Inc. IMMU Healthcare Biotechnology -4.75% 6.02% 8.98%
C&J Energy Services, Inc. CJ Energy Oil and Gas Equipment and Services -4.47% -3.41% -6.35%
Global Blood Therapeutics, Inc. GBT Healthcare Biotechnology -3.95% -7.24% -4.15%
Tesaro, Inc. TSRO Healthcare Biotechnology -3.85% -6.87% -4.59%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Zscaler, Inc. ZS Information Technology Systems Software 7.25% 43.83% 0.00%
Intercept Pharmaceuticals, Inc. ICPT Healthcare Biotechnology 6.23% 2.56% 30.43%
DexCom, Inc. DXCM Healthcare Healthcare Equipment 3.92% 0.87% 62.05%
Twitter, Inc. TWTR Information Technology Internet Software and Services 3.80% 12.44% 71.64%
Editas Medicine, Inc. EDIT Healthcare Biotechnology 3.70% 5.94% 27.60%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet Scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
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