Morning Quant Ride Jan 22, 2018

Jan 22, 2018

Traders’ Corner

 

The week opens with most global markets focused on the US government shutdown absent significant local headlines.  Though focused on this negative news quite a few markets are managing modest gains.  Asian markets were mostly higher with Japan a notable exception ahead of BoJ decision announcement tomorrow.  European stocks were mixed to higher with positive political news coming out of Germany.  The Social Democrat Party agreed to return to negotiations to form a grand coalition and allow Merkel to return to governing.

All eyes in the US today will be on Washington, DC and the prospects for a budget deal.  The reality is that there is little practical effects on markets near term though the optics remain terrible.  If it lasts then there could be real impacts, for now the expectation is it does not drag on.

US Equity futures are pointing to a negative open in NY this morning with the US Government shutdown expected to extend to a third day.

On Friday we posted two Quantshots on two of our US Tech Conviction Buy stocks. Check them out here:

QuantShot: Western Digital

QuantShot: Euronet Worldwide

We are looking deeper into some of our A-rated laggards from Friday:

American Express - 4.25% off its 52 Week High

Boeing - is 4.12% off its 52 Week High

Cirrus Logic - 26.69% off its 52 Week High

QuantShot: Daqo New Energy Corp - 15.86% off its 52 Week High

Dolby Laboratories - 2.30% off its 52 Week High

QuantShot: Jabil - 13.60% off its 52 Week High

QuantShot: Micron Technology - is 14.31% off its 52 Week High

 

Our Top Picks in the News

 

Click headline for story

Honeywell (HON)

Four stock picks from a money manager focused on dividend growth for over two decades (Marketwatch)
Top Conviction Buys in January, please see Quantamize Global Top Picks US Industrials report

 

See more on our Honeywell QuantShot company report from January 17th

Lam Research (LRCX)

Scott Black: Making Chips and Crushing Sand (Barron’s)
Lam Research price target raised to $235 from $225 at DA Davidson (TheFly)
Top Conviction Buys in January, please see Quantamize Global Top Picks US Large Cap report

 

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

Alphabet (GOOGL)

Tencent Holdings (TCEHY)

Google Signs Global Patent Deal with China's Biggest Tech Company (Investopedia)
Top Conviction Buys in January, please see Quantamize Global Top Picks US Large Cap report and Investable China report

 

See more on our Alphabet QuantShot company report from January 11th

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

Facebook Inc (FB)

Facebook is planning to spend €10 million expanding its artificial intelligence centre in Paris (Business Insider)
Top Conviction Buys in January, please see Quantamize Global Top Picks US Info Tech report

 

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

Ulta Beauty Inc (ULTA)

Ulta Beauty price target raised to $230 from $206 at Piper Jaffray (TheFly)
Top Conviction Buys in January, please see Quantamize Global Top Picks US Consumer Discretionary report

 

See more on our Ulta QuantShot company report from September 22nd

Apple Inc (AAPL)

Homepod: New Details of Apple's Smart Speaker Revealed, Suggesting Release Date Could Be Near (Independent)
Top Conviction Buys in January, please see Quantamize Global Top Picks US Info Tech report

 

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

 

The Morning Recap

Index

Price

1 Day Return

5 Day Return

MTD

YTD

S&P 500

$ 2,810.30

0.00%

0.86%

5.11%

5.11%

Russell 2000

$ 1,597.63

0.00%

0.36%

4.05%

4.05%

DJ Industrial Average

$ 26,071.72

0.00%

1.04%

5.47%

5.47%

NASDAQ Composite Index

$ 7,336.38

0.00%

1.04%

6.27%

6.27%

CBOE Market Volatility Index

11.53

-

-

-

-

Germany DAX (TR)

€ 13,459.20

0.18%

1.43%

4.19%

4.00%

France CAC 40

€ 5,542.03

0.28%

0.17%

4.03%

4.03%

Japan Nikkei 225

¥ 23,816.33

0.03%

0.65%

4.62%

4.58%

Hang Seng Index

¥ 32,393.41

0.43%

2.68%

8.27%

7.81%

Hang Seng China Enterprises

¥ 13,204.58

0.19%

5.70%

12.77%

12.56%

S&P ASX 200

AUD 5,991.90

-0.23%

-1.06%

-1.21%

-0.98%

Source: FactSet          

Large Cap Conviction Buy Movers

Large Cap A Winners Ticker Sector Industry 1 Day Return 5 Day Return YTD
BIG LOTS INC BIG Consumer Discretionary Multiline Retail

3.41%

6.64%

8.96%

LAUDER (ESTEE) COS INC -CL A EL Consumer Staples Personal Products

2.65%

4.61%

5.67%

ADVANCED ENERGY INDS INC AEIS Information Technology Semiconductors & Semiconductor Equipment

2.58%

8.84%

14.89%

TRANSUNION TRU Industrials Professional Services

2.58%

4.03%

7.99%

NVR INC NVR Consumer Discretionary Household Durables

2.49%

3.98%

5.47%

Large Cap A Losers Ticker Sector Industry 1 Day Return 5 Day Return YTD
MCCORMICK & CO INC MKC Consumer Staples Food Products

-3.61%

-1.80%

-2.67%

EDGEWELL PERSONAL CARE CO EPC Consumer Staples Personal Products

-2.88%

-2.45%

-1.92%

MICRON TECHNOLOGY INC MU Information Technology Semiconductors & Semiconductor Equipment

-2.82%

-0.14%

3.96%

AMERICAN EXPRESS CO AXP Financials Consumer Finance

-1.83%

-2.91%

-1.29%

BOEING CO BA Industrials Aerospace & Defense

-0.71%

0.45%

14.52%

Source: FactSet            

Large Cap Conviction Short Movers

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

-4.79%

-10.25%

-12.30%

GULFPORT ENERGY CORP GPOR Financials Oil, Gas & Consumable Fuels

-3.58%

-7.34%

-2.98%

BLUEBIRD BIO INC BLUE Financials Biotechnology

-3.38%

3.08%

-1.21%

ACADIA PHARMACEUTICALS INC ACAD Health Care Biotechnology

-3.10%

-5.11%

-10.59%

ANTERO RESOURCES CORP AR Financials Oil, Gas & Consumable Fuels

-3.05%

-5.69%

-1.37%

Large Cap F Losers Ticker Sector Industry 1 Day Return 5 Day Return YTD
INTERCEPT PHARMA INC ICPT Health Care Biotechnology

8.52%

5.04%

-1.20%

LOXO ONCOLOGY INC LOXO Real Estate Biotechnology

7.03%

7.60%

15.03%

MATTEL INC MAT Consumer Discretionary Leisure Products

5.98%

5.56%

4.94%

SQUARE INC SQ Information Technology IT Services

5.69%

3.18%

22.76%

RADIUS HEALTH INC RDUS Real Estate Biotechnology

5.26%

9.57%

19.67%

Source: FactSet            

Upcoming Earnings

Company Name Ticker Date
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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