Morning Quant Ride Jan 26, 2018

Jan 26, 2018

Traders’ Corner

 

Markets in Asia were generally higher overnight with Japan and Australia the exception, though not down by much.  The see-saw comments on the dollar out of the US-President Trump showing support for a strong dollar shortly after Treasury Secretary Mnuchin’s support of a weak dollar-drew comments in Japan from both the Finance Minister and a Central Bank Governor.  The swings in the dollar have been the main headlines in Asia this week.  European stocks opened higher and generally have advanced gains through the morning session.  European Central Bank President Draghi commented on dollar weakness, saying a stronger Euro is justified by impressive economic performance in Europe.  Economic data continues to support that.

In the US investors are focused on Trump’s address in Davos and 4Q GDP data, expected to confirm stronger growth.  US markets set further records yesterday, likely in anticipation of that news.

This morning, two of our Large-Cap A-Stocks release earnings:

QuantShot: AbbVie EPS beat by $0.04, Revenue beat by $210M

QuantShot: Honeywell International EPS beat by $0.01, Revenue beat by $90M

Semiconductor stocks continued their sell-off yesterday, as the SOXX semiconductor ETF (ETF ticker) closed down -1.74% vs +0.06% for the S&P500.  The two-day sell-off was in spite of strong earnings from Lam Research. We encourage our readers to consider:

QuantShot: Applied Materials – 8.43% off its 52wkH

QuantShot: Lam Research – 9.31% off its 52wkH

QuantShot: Micron Technology – 13.7% off its 52wkH

MKS Instruments – 8.2% off its 52wkH

This morning, we will also be watching two recreational automobile stocks that are A-Rated in our models:

QuantShot: Winnebago Industries – 16.4% off its 52wkH

QuantShot: Thor Industries – 6.22% off its 52wkH

We released one QuantShot yesterday, see it below:

QuantShot: Procter & Gamble

 

Our Top Picks in the News

 

Click headline for story

Facebook (FB)

Sports May Be the Ticket for Facebook's New Mission (Bloomberg)
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

Cummins (CMI)

How Far Could Cummins Fall? (Seeking Alpha)
Conviction Buy in January, please see Quantamize Global Top Picks US Industrials report

 

See more on our Cummins QuantShot company report from January 23rd

Apple (AAPL)

The Holidays Aren’t Over for Smart Speaker Shoppers (Barron’s)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Info Tech report

 

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

Honeywell (HON)

Honeywell tops Q4 EPS by 1c, Raises FY EPS Guidance (Street Insider)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Industrials report

 

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

Biogen (BIIB)

Biogen Price Target raised to $392 from $354 at SunTrust (The Fly)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Large Cap report

Lear Corporation (LEA)

Lear reports Q4 adjusted EPS $4.38, consensus $4.28 (The Fly)
Top Conviction Buy in January, please see Quantamize Global Top Picks US Large Cap report

 

 

Global Indices

Index

Price

1 Day Return

5 Day Return

MTD

YTD

S&P 500

$ 2,839.25

0.00%

1.03%

6.20%

6.20%

Russell 2000

$ 1,601.67

0.00%

0.25%

4.31%

4.31%

DJ Industrial Average

$ 26,392.79

0.00%

1.23%

6.77%

6.77%

NASDAQ Composite Index

$ 7,411.16

0.00%

1.02%

7.36%

7.36%

CBOE Market Volatility Index

11.55

-

-

-

-

Germany DAX (TR)

€ 13,316.62

0.14%

-1.01%

3.10%

2.95%

France CAC 40

€ 5,534.42

0.97%

-0.82%

4.18%

3.17%

Japan Nikkei 225

¥ 23,631.88

-0.16%

-0.58%

3.81%

3.97%

Hang Seng Index

¥ 33,154.12

1.53%

1.24%

10.81%

9.14%

Hang Seng China Enterprises

¥ 13,723.96

2.51%

1.58%

17.21%

14.34%

S&P ASX 200

AUD 6,050.00

0.00%

0.74%

-0.25%

-0.25%

Source: FactSet          

Large Cap Conviction Buy Movers

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

5.00%

-2.74%

-1.79%

INTUITIVE SURGICAL INC ISRG Health Care Health Care Equipment & Supplies

2.82%

1.25%

19.88%

ABBVIE INC ABBV Health Care Biotechnology

2.64%

1.64%

9.10%

BOEING CO BA Industrials Aerospace & Defense

2.52%

-1.61%

13.49%

BIOGEN INC BIIB Health Care Biotechnology

2.09%

0.60%

8.77%

Large Cap A Losers Ticker Sector Industry 1 Day Return 5 Day Return YTD
NVR INC NVR Consumer Discretionary Household Durables

-6.61%

-0.64%

2.25%

LAM RESEARCH CORP LRCX Information Technology Semiconductors & Semiconductor Equipment

-5.00%

2.08%

13.94%

MKS INSTRUMENTS INC MKSI Information Technology Semiconductors & Semiconductor Equipment

-3.66%

0.67%

11.43%

ADVANCED ENERGY INDS INC AEIS Information Technology Semiconductors & Semiconductor Equipment

-3.58%

-1.07%

10.80%

MICROCHIP TECHNOLOGY INC MCHP Information Technology Semiconductors & Semiconductor Equipment

-3.02%

-1.98%

8.51%

Source: FactSet            

Large Cap Conviction Short Movers

Large Cap F Winners Ticker Sector Industry 1 Day Return 5 Day Return YTD
LAREDO PETROLEUM INC LPI Energy Oil, Gas & Consumable Fuels

-14.15%

8.17%

8.58%

RANGE RESOURCES CORP RRC Energy Oil, Gas & Consumable Fuels

-9.88%

3.22%

-0.35%

NUTANIX INC NTNX Information Technology Internet Software & Services

-8.76%

0.58%

3.17%

GULFPORT ENERGY CORP GPOR Energy Oil, Gas & Consumable Fuels

-5.65%

3.35%

4.00%

SOUTHWESTERN ENERGY CO SWN Energy Oil, Gas & Consumable Fuels

-4.91%

1.34%

-5.02%

Large Cap F Losers Ticker Sector Industry 1 Day Return 5 Day Return YTD
IMPAX LABORATORIES INC IPXL Health Care Pharmaceuticals

5.82%

-3.89%

18.62%

PUMA BIOTECHNOLOGY INC PBYI Health Care Biotechnology

5.26%

-26.69%

-34.55%

ROKU INC ROKU Consumer Discretionary Household Durables

4.38%

3.66%

-18.40%

DYNAVAX TECHNOLOGIES CORP DVAX Health Care Biotechnology

4.32%

12.48%

-7.22%

MEDICINES CO MDCO Health Care Pharmaceuticals

3.90%

29.09%

18.18%

Source: FactSet            

Upcoming Earnings

Company Name Ticker Date
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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