Morning Quant Ride Jan 12, 2018

Jan 12, 2018

Traders’ Corner

 

US futures are pointing to another positive open in NY this morning, up 0.15%.

We suggest investors focus on our A-Rated stocks that should be beneficiaries of the US tax reform bills.

Choice Hotels (CHH) – see our CHH QuantShot from December 14th

Darden Restaurants (DRI) – see our DRI QuantShot from November 13th

Domino’s Pizza (DPZ) – see our DPZ QuantShot from January 9th

Stanley Black and Decker (SWK) – see our SWK QuantShot from January 11th

Wingstop (WING) – see our WING QuantShot from November 7th

BlackRock (BLK), one of our A-rated stocks on our US Large Cap Quant Model beat on both revenue and EPS this morning. The stock is up 2.06% this morning.

In the crypto markets, we are beginning to see Ripple (XRP) and Stellar (XLM) stabilize after recent price weakness. We will be releasing our flagship machine learning buy/sell signals for these cryptocurrencies in the coming weeks.

Yesterday we published the following QuantShots and Q-Options:

Alphabet Inc. (GOOGL)

FirstCash Inc. (FCFS)

Home Depot (HD)

Stanley Black & Decker (SWK)

Lockheed Martin Jan 26 Bull Put Spread

 

Our Top Picks in the News

 

Click headline for story

Home Depot (HD)

Home Depot & Lowe's Touch 52-Week High: More Room to Run? (Zacks)
Conviction Buy in January, please see Quantamize Global Top Picks US Consumer Discretionary report

 

See more on our Home Depot QuantShot company report from January 11th

 

Facebook (FB)

Facebook Creeps Closer to a Home Video Chat Device (Barron’s) 
Facebook testing new local-news product on Mobile (Seeking Alpha)
Facebook unveils sweeping changes, says engagement may fall (Bloomberg)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Info Tech report

 

See more on our Facebook QuantShot company report from January 10th

 

Micron Technology (MU)

Micron CFO Sees ‘Incredibly Healthy Setup’ for NAND Flash in 2018 (Barron’s)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Info Tech report

 

See more on our Micron QuantShot company report from January 10th

 

Delta Air Lines, Inc. (DAL)

Why Delta Air Lines Jumped Today (Yahoo Finance)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Industrials report

 

 

Momo, Inc. (MOMO)

Why Momo, Inc. stock gained 33% in 2017 (Yahoo Finance)
Top Conviction Buy in January, please see Quantamize Global Top Picks Investable China report

 

 

Costco (COST)

Costco stock surges as Walmart confirms Sam's Club closings (The Street)

Top Conviction Buy in January, please see Quantamize Global Top Picks Large Cap report

 

 

BlackRock (BLK) 

BlackRock beats by $0.22, beats on revenue (Seeking Alpha)

Top Conviction Buy in January, please see Quantamize Global Top Picks Large Cap report

 

 

The Morning Recap

 

Asian markets traded higher overnight following the previous day’s momentum from the US.  Little news as the trading week closed there.  European stocks were mixed in midday trading with little in the way of drivers in today’s trading.  Germany edging closer to actually forming a government was met by investors with a yawn.

In the US the day begins with JP Morgan reporting a drop in their effective tax rate from 32% to 19%, a massive change that will be echoed as earnings season gets underway.  This news flow will continue to support higher stock prices in the near term and bodes well for medium term economic strength.  Look for a higher close in the US today.

 

Index

Price

1 Day Return

5 Day Return

MTD

YTD

S&P 500 $ 2,767.56 0.00% 0.89% 3.51% 3.51%
Russell 2000 $ 1,586.79 0.00% 1.72% 3.34% 3.34%
DJ Industrial Average $ 25,574.73 0.00% 1.10% 3.46% 3.46%
NASDAQ Composite Index $ 7,211.78 0.00% 1.05% 4.47% 4.47%
CBOE Market Volatility Index 10.09 - - - -
Germany DAX (TR) € 13,178.59 -0.18% -0.88% 2.00% 2.21%
France CAC 40 € 5,501.28 0.23% 0.33% 3.52% 3.31%
Japan Nikkei 225 ¥ 23,653.82 -0.24% -0.02% 3.90% 4.15%
Hang Seng Index ¥ 31,412.54 0.94% 0.99% 4.99% 4.01%
Hang Seng China Enterprises ¥ 12,468.93 1.41% 0.69% 6.49% 5.01%
S&P ASX 200 AUD 6,070.10 0.04% -0.89% 0.08% 0.04%
Source: FactSet          

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