Morning Quant Ride Jan 19, 2018

Jan 19, 2018

Traders’ Corner

 

International markets have a positive bias in the face of yesterday’s weakness in US equity markets and a potential shutdown of the US government.

Asian markets closed up on a lighter volume as investors appear to be focused on the US government shutdown debate.  The 4Q GDP print for the Chinese economy continues to be a point of debate with the focus on whether there is “real” momentum in growth vs “cyclical” momentum.  The market appears to be pricing in limited change to the BOJ’s QE policy.  In contrast to Chinese and Japanese equity markets, the Australian ASX closed down with the weakness in commodities impacting mining and energy stocks.

European equities are trading with a positive bias this morning with the Euro Stoxx 50 up ~70 bps.  German equity markets are outperforming their European peers with the DAX up over a 1% (MDAX is up ~80 bps).  European share volumes appear to point to a continued positive bias for European equities with total composite daily average 10-day share volume trending almost 30% above the daily average 100-day share volume.  French equities appear to be a major driver of this jump in total share volume traded.  YTD, the CAC40 is up 3.94% in EUR€ and 5.91% in USD$.

In sympathy with international equity markets, US equity futures are pointing to a positive open in NY.  The potential shutdown of the US government and earnings season continue to dominate headlines.

Yesterday, we posted three QuantShots for three of our A-Stocks. Learn more here:

QuantShot: Lam Research (LRCX)

QuantShot: Six Flags Entertainment (SIX)

QuantShot: United Technologies (UTX)

We are looking at some of our laggards that could be potential buying opportunities.

QuantShot: Boeing (BA)

QuantShot: Thor Industries (THO)

QuantShot: Hasbro (HAS)

QuantShot: Micron Technology (MU)

Two of our Consumer Discretionary A Stocks were upgraded to Buy this morning:

Wyndham Worldwide (WYN) at Goldman Sachs

QuantShot: Sirius XM Holdings (SIRI) at Deutsche Bank

 

Our Top Picks in the News

 

Click headline for story

Tencent (TCEHY), Facebook (FB)

Tencent Widens Its Lead Over Facebook (Bloomberg)
Conviction Buys in January, please see Quantamize Global Top Picks US Tech report and

 

Quantamize Global Top Picks China report

See more on our Tencent QuantShot company report from December 18th

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

 

Applied Materials (AMAT), Lam Research (LRCX), ASML (ASML)

Taiwan Semi Gives ASML, Applied Materials, Chips Another Lift (Barron’s)
Top Conviction Buys in January, please see Quantamize Global Top Picks US Tech report

 

See more on our Applied Materials QuantShot company report from January 10th

See more on our Lam Research QuantShot company report from January 17th

See more on our ASML QuantShot company report from November 14th

Micron Technology (MU)

Is Micron Technology the Cheapest Technology Stock? (Seeking Alpha)
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

Apple (AAPL)

Apple Still Wants to Teach the World to Code (Computerworld)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Tech report

 

See more on our Apple QuantShot company report from January 5th

Mastercard Inc (MA)

Mastercard Encourages People to 'Start Something Priceless' (PYMNTS)
Top Conviction Buy in January, please see Quantamize Global Top Picks Large Cap report

Cummins Inc. (CMI)

Cummins upgraded to Buy from Neutral at BofA/Merrill CMI (TheFly)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Industrials report

 

See more on our Cummins QuantShot company report from December 27th

 

The Morning Recap

Index

Price

1 Day Return

5 Day Return

MTD

YTD

S&P 500

$ 2,798.03

0.00%

1.10%

4.65%

4.65%

Russell 2000

$ 1,576.73

0.00%

-0.63%

2.68%

2.68%

DJ Industrial Average

$ 26,017.81

0.00%

1.73%

5.25%

5.25%

NASDAQ Composite Index

$ 7,296.05

0.00%

1.17%

5.69%

5.69%

CBOE Market Volatility Index

12.11

-

-

-

-

Germany DAX (TR)

€ 13,414.44

1.00%

0.59%

3.85%

2.82%

France CAC 40

€ 5,517.20

0.41%

0.11%

3.85%

3.43%

Japan Nikkei 225

¥ 23,808.06

0.19%

0.22%

4.58%

4.39%

Hang Seng Index

¥ 32,254.89

0.41%

3.22%

7.81%

7.36%

Hang Seng China Enterprises

¥ 13,179.52

0.65%

6.50%

12.56%

11.83%

S&P ASX 200

AUD 6,005.80

-0.15%

-0.87%

-0.98%

-0.83%

Source: FactSet          

Large Cap Conviction Buy Movers

Large Cap A Winners Ticker Sector Industry 1 Day Return 5 Day Return YTD
UNITEDHEALTH GROUP INC UNH Health Care Health Care Providers & Services

1.98%

7.88%

10.30%

AVERY DENNISON CORP AVY Materials Containers & Packaging

1.47%

0.89%

5.02%

DOMINO'S PIZZA INC DPZ Consumer Discretionary Hotels, Restaurants & Leisure

1.45%

0.51%

11.62%

LENNOX INTERNATIONAL INC LII Industrials Building Products

1.36%

2.41%

2.75%

MICROCHIP TECHNOLOGY INC MCHP Information Technology Semiconductors & Semiconductor Equipment

1.32%

5.62%

10.71%

Large Cap A Losers Ticker Sector Industry 1 Day Return 5 Day Return YTD
BOEING CO BA Industrials Aerospace & Defense

-3.09%

3.67%

15.34%

EDGEWELL PERSONAL CARE CO EPC Consumer Staples Personal Products

-1.61%

-0.53%

0.99%

MID-AMERICA APT CMNTYS INC MAA Real Estate Equity Real Estate Investment Trusts (REITs)

-1.43%

-0.58%

-8.97%

GRACE (W R) & CO GRA Materials Chemicals

-1.37%

-1.45%

3.79%

SPIRIT AEROSYSTEMS HOLDINGS SPR Industrials Aerospace & Defense

-1.10%

3.73%

11.93%

Source: FactSet            

Large Cap Conviction Short Movers

Large Cap F Winners Ticker Sector Industry 1 Day Return 5 Day Return YTD
M/ACOM TECHNOLOGY SOLUTIONS MTSI Information Technology Semiconductors & Semiconductor Equipment

-6.86%

-5.04%

5.93%

BAKER HUGHES A GE CO BHGE Information Technology Energy Equipment & Services

-4.27%

-4.82%

9.80%

SYNAPTICS INC SYNA Information Technology Semiconductors & Semiconductor Equipment

-4.12%

2.26%

12.39%

FLEXION THERAPEUTICS INC FLXN Information Technology Biotechnology

-4.06%

-12.74%

-9.46%

ROWAN COMPANIES PLC RDC Financials Energy Equipment & Services

-3.86%

-6.90%

1.66%

Large Cap F Losers Ticker Sector Industry 1 Day Return 5 Day Return YTD
BITCOIN INVESTMENT TRUST GBTC Undefined Undefined

13.51%

8.72%

-7.89%

RADIUS HEALTH INC RDUS Real Estate Biotechnology

6.67%

2.12%

13.69%

AVEXIS INC AVXS Consumer Discretionary Biotechnology

5.05%

-5.30%

-0.45%

CAESARS ENTERTAINMENT CORP CZR Consumer Discretionary Hotels, Restaurants & Leisure

4.10%

6.08%

10.28%

BLUEBIRD BIO INC BLUE Financials Biotechnology

3.91%

6.09%

2.25%

Source: FactSet            

Upcoming Earnings

Company Name Ticker Date
Citizens Financial Group, Inc. CFG 01/19/2018
American Express Company AXP 01/19/2018
Waters Corporation WAT 01/23/2018
Total System Services, Inc. TSS 01/24/2018
Stanley Black & Decker, Inc. SWK 01/24/2018
Amphenol Corporation Class A APH 01/24/2018
SEI Investments Company SEIC 01/24/2018
Texas Instruments Incorporated TXN 01/24/2018
Lam Research Corporation LRCX 01/25/2018
NVR, Inc. NVR 01/25/2018
McCormick & Company, Incorporated MKC 01/25/2018
Biogen Inc. BIIB 01/25/2018
Alliance Data Systems Corporation ADS 01/25/2018
Honeywell International Inc. HON 01/26/2018
Arthur J. Gallagher & Co. AJG 01/26/2018
KLA-Tencor Corporation KLAC 01/26/2018
Maxim Integrated Products, Inc. MXIM 01/26/2018
Lear Corporation LEA 01/26/2018
Intuitive Surgical, Inc. ISRG 01/26/2018
PerkinElmer, Inc. PKI 01/26/2018
AbbVie, Inc. ABBV 01/26/2018
Advanced Energy Industries, Inc. AEIS 01/29/2018
Dominion Energy Inc D 01/29/2018
IDEX Corporation IEX 01/30/2018
Principal Financial Group, Inc. PFG 01/30/2018
A. O. Smith Corporation AOS 01/30/2018
Amdocs Limited DOX 01/30/2018
Avery Dennison Corporation AVY 01/31/2018
Cadence Design Systems, Inc. CDNS 01/31/2018
Motorola Solutions, Inc. MSI 01/31/2018
Fortune Brands Home & Security, Inc. FBHS 01/31/2018
Edwards Lifesciences Corporation EW 01/31/2018
Nasdaq, Inc. NDAQ 01/31/2018
Boeing Company BA 01/31/2018
Align Technology, Inc. ALGN 01/31/2018

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