Morning Quant Ride Jan 10, 2018

Jan 10, 2018

Traders’ Corner

 

S&P 500 futures are pointing to a 0.42% drop at the market open today. The VIX is also starting to rally, up to 10.42 from 10.08, as investors appear to be worried about a slowdown in purchases of US treasuries by the PBOC.

Yesterday after the close, we released our first QuantShot Conviction Short on comScore (SCOR). Take a look at our deeper dive into one of our F-rated Stocks on our US Tech Quant Model.

See our SCOR QuantShot company report

We are looking at some of our top semiconductor stocks that pulled back yesterday. Lam Research (LRCX), Applied Materials (AMAT), and Micron Technology (MU) are all expected to open negatively again today. We will keep our eyes open for spikes in implied volatility and potential options trades.

See our LRCX QuantShot company report

See our AMAT QuantShot company report

 

Our Top Picks in the News

 

Click headline for story

Baidu (BIDU)

China's Baidu Plugs `Apollo 2.0' Self-Driving Platform in Vegas (Bloomberg)
Conviction Buy in January, please see our Quantamize Global Top Picks China report

 

See more on our Baidu QuantShot company report from January 9th

Alibaba (BABA)

How to Play Alibaba Now (Barron’s)
Top Conviction Buy in January, please see our Quantamize Global Top Picks China report

 

See more on our Alibaba QuantShot company report from December 5th  

Domino’s Pizza (DPZ)

Will Domino's Continue to Gain Traction in 2018? (Zacks)
Top Conviction Buy in January, please see our Quantamize Global Top Picks US Consumer Discretionary report

 

See more on our Domino’s Pizza QuantShot company report from January 9th

Lockheed Martin (LMT)

SR-72 'Blackbird; hypersonic bomber 'has already been made' (Daily Mail)
Top Conviction Buy in January, please see our Quantamize Global Top Picks US Industrials report

Boeing (BA)

Boeing awarded $115.2M US Navy contract modification (The Fly)
Top Conviction Buy in January, please see our Quantamize Global Top Picks US Industrials report

Facebook (FB)

Facebook is reportedly moving forward with its video-chatting device (The Motley Fool)
Top Conviction Buy in January, please see our Quantamize Global Top Picks US Tech report

 

See more on our Facebook QuantShot company report from November 6th

Honeywell International (HON)

Why Honeywell International surged in 2017 and beat out its peers (The Motley Fool)
Top Conviction Buy in January, please see our Quantamize Global Top Picks US Industrials report

WD-40 Company (WDFC)

WD-40 Co. (WDFC) Tops Q1 EPS by 7C (Street Insider)
Top Conviction Buy in January, please see our Quantamize Global Top Picks US SMID Cap report

Deere & Co. (DE)

RBC Capital Upgrades Deere (DE) to Outperform (Street Insider)
Top Conviction Buy in January, please see our Quantamize Global Top Picks US Industrials report

 

 

The Morning Recap

 

The financial headlines are focused mostly on bond yields and their shifting dynamics. US yields spiked higher after China mentioned it may curb buying of US Treasuries.  Overnight saw Asian stock markets trade a bit lower as the surge in global stock prices took a pause from the new year rally.  European stocks traded lower as well.  Corporate results have overall come positive though a few notable exceptions have brought some selling.  While early futures trading indicates a higher open for US markets there are many reasons to take some profit if investors become so inclined.  Some healthy profit taking could set us up for another leg higher in what is generally a supportive near-term atmosphere for stocks.

 

Index

Price

1 Day Return

5 Day Return

MTD

YTD

S&P 500 $ 2,751.29 0.00% 1.41% 2.91% 2.91%
Russell 2000 $ 1,560.10 0.00% 0.48% 1.60% 1.60%
DJ Industrial Average $ 25,385.80 0.00% 1.86% 2.70% 2.70%
NASDAQ Composite Index $ 7,163.58 0.00% 1.39% 3.77% 3.77%
CBOE Market Volatility Index 10.43 - - - -
Germany DAX (TR) € 13,260.06 -0.94% 3.14% 2.66% 3.62%
France CAC 40 € 5,499.81 -0.44% 3.61% 3.52% 3.98%
Japan Nikkei 225 ¥ 23,788.20 -0.26% 4.77% 4.49% 4.77%
Hang Seng Index ¥ 31,073.72 0.20% 1.47% 3.86% 3.65%
Hang Seng China Enterprises ¥ 12,289.17 0.27% 1.38% 4.95% 4.67%
S&P ASX 200 AUD 6,096.70 -0.64% 1.08% 0.52% 1.17%
Source: FactSet          

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