Morning Quant Ride Jan 23, 2018

Jan 23, 2018

Traders’ Corner

 

Stocks in Asia were higher in overnight trading with particular strength in Japan and Hong Kong with news of the US shutdown fueling higher markets.  BoJ policy was unchanged as expected with 2% inflation target highlighted (again) and no exit strategy being considered.  European stocks were generally higher though off intraday highs at the midday check.

US investors have President Trump’s new import tariffs to consider after another day of record closes yesterday.  The earnings deluge continues today after Netflix’s strong beat on new subscribers and Wynn’s beating expectations yesterday have caught the attention of many investors.

US futures are pointing to a mixed open in NY this morning.

This morning, we would encourage our readers focus on company-specific trades as we enter the heart of earnings season. Here at Quantamize, we are focusing on some of our A-rated laggards from yesterday’s market action:

We are also revisiting our Lockheed Martin Q-Option trade now that the concerns about the shutdown of the US Government are abating: Yesterday, in the afternoon we initiated a Jan 26 straddle on Netflix, ahead of its earnings results. Netflix is a B rated stock in our Consumer Discretionary model with an A growth score. In the coming weeks, we will be expanding our Q-Options to include event related options trades, like the NFLX Jan 26 straddle.

 

Yesterday, we posted QuantShots on four of our A-Rated Stocks:

Our Top Picks in the News

 

Click headline for story

United Technologies (UTX)

What to Expect from United Technologies' (UTX) Q4 Earnings? (Zacks)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Industrials report

 

See more on our United Technologies QuantShot company report from January 18th

Waste Management (WM)

Waste Management: Tailwinds from China Ban on Foreign Waste (Seeking Alpha)
Conviction Buy in January, please see Quantamize Global Top Picks US Industrials report

 

See more on our Waste Management QuantShot company report from January 22nd

World Wrestling Entertainment (WWE)

Mexico's Masked Wrestling Superheroes Are Going Global (Bloomberg)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Consumer Discretionary report

 

See more on our WWE QuantShot company report from January 22nd

Petmed Express (PETS)

Petmed Bears Are Hurting (Barron's)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Consumer Discretionary report

Wynn Resorts (WYNN)

Wynn praises Trump tax reform, vows raises or bonuses for workers (Review Journal)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Consumer Discretionary report

 

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

NetApp (NTAP)

NetApp upgraded to Equal Weight from Underweight at Morgan Stanley (The Fly)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Tech report

 

See more on our NetApp QuantShot company report from January 8th

Stanley Black & Decker (SWK)

Stanley Black & Decker initiated a Buy at UBS (The Fly)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Industrials report

 

See more on our Stanley Black & Decker QuantShot company report from January 11th

Kimberly-Clark (KMB)

Kimberly-Clark Corp Q4 Earnigs Rise 7% (RTTNews)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Consumer Staples report

 

See more on our Kimberly-Clark QuantShot company report from December 21st

Adobe Systems (ADBE)

Adobe (ADBE) PT Raised to $225 at Credit Suisse 'Lower Tax Rate Drives Higher Guidance' (StreetInsider)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Tech report

 

 

The Morning Recap

Index

Price

1 Day Return

5 Day Return

MTD

YTD

S&P 500

$ 2,832.97

0.00%

1.40%

4.21%

4.21%

Russell 2000

$ 1,605.17

0.00%

1.93%

3.68%

3.68%

DJ Industrial Average

$ 26,214.60

0.00%

2.06%

4.39%

4.39%

NASDAQ Composite Index

$ 7,408.03

0.00%

1.45%

5.18%

5.18%

CBOE Market Volatility Index

11.16

-

-

-

-

Germany DAX (TR)

€ 13,564.41

0.75%

-0.92%

3.07%

2.53%

France CAC 40

€ 5,544.43

0.04%

0.54%

3.95%

3.85%

Japan Nikkei 225

¥ 24,124.15

1.29%

-0.26%

5.21%

3.90%

Hang Seng Index

¥ 32,930.70

1.66%

1.66%

6.64%

4.99%

Hang Seng China Enterprises

¥ 13,490.45

2.16%

1.91%

9.21%

6.49%

S&P ASX 200

AUD 6,037.00

0.75%

-0.98%

-0.27%

0.08%

Source: FactSet          

Large Cap Conviction Buy Movers

Large Cap A Winners Ticker Sector Industry

1 Day Return

5 Day Return

YTD

INGREDION INC INGR Consumer Staples Food Products

2.72%

0.86%

-1.91%

BIG LOTS INC BIG Consumer Discretionary Multiline Retail

2.30%

6.64%

8.96%

FACEBOOK INC FB Information Technology Internet Software & Services

2.25%

1.07%

2.74%

CITIZENS FINANCIAL GROUP INC CFG Financials Banks

2.11%

2.86%

11.53%

WATERS CORP WAT Health Care Life Sciences Tools & Services

1.92%

0.46%

9.07%

Large Cap A Losers Ticker Sector Industry

1 Day Return

5 Day Return

YTD

NATIONAL BEVERAGE CORP FIZZ Consumer Staples Beverages

-1.74%

6.04%

10.23%

AMPHENOL CORP APH Information Technology Electronic Equipment, Instruments & Components

-1.23%

1.42%

6.07%

NVR INC NVR Consumer Discretionary Household Durables

-1.22%

3.98%

5.47%

ADVANCED ENERGY INDS INC AEIS Information Technology Semiconductors & Semiconductor Equipment

-1.17%

8.84%

14.89%

FIVE BELOW INC FIVE Consumer Discretionary Specialty Retail

-1.13%

0.88%

1.81%

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

-4.64%

-10.25%

-12.30%

AK STEEL HOLDING CORP AKS Materials Metals & Mining

-3.42%

4.04%

13.78%

SPRINT CORP S Telecommunication Services Wireless Telecommunication Services

-2.74%

-3.87%

-7.13%

FINISAR CORP FNSR Information Technology Communications Equipment

-2.22%

-9.06%

1.62%

M/ACOM TECHNOLOGY SOLUTIONS MTSI Information Technology Semiconductors & Semiconductor Equipment

-1.88%

-8.33%

2.83%

Large Cap F Losers Ticker Sector Industry

1 Day Return

5 Day Return

YTD

ARRAY BIOPHARMA INC ARRY Health Care Biotechnology

18.42%

-4.16%

2.66%

MEDICINES CO MDCO Health Care Pharmaceuticals

16.03%

-9.74%

-9.18%

SPARK THERAPEUTICS INC ONCE Health Care Biotechnology

11.88%

-2.66%

-0.31%

BLUEBIRD BIO INC BLUE Health Care Biotechnology

10.63%

3.08%

-1.21%

DYNAVAX TECHNOLOGIES CORP DVAX Health Care Biotechnology

8.63%

-0.63%

-16.31%

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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