Stocks dropping to start the morning following rout in Asia stocks markets overnight edit

US Stocks

• Global stocks are dropping this morning following a rout in Asian stock markets overnight and disappointing earnings results from major European tech stocks 
• US stocks index futures are pointing to a sharply negative open in NY with the Dow Jones minis –1.06%, S&P500 minis –1.22% and Nasdaq 100 minis –1.50% 
• Today’s move in stocks is matched with a flight to safe-haven assets with a rally in the Yen, gold and US treasuries 
• The VIX is moving up this morning and is currently at 23.36 after closing at 19.64 yesterday
• Bank of America October 26 & January 2020 OTM Calls, GDX January 2020 OTM Calls, SPY October 16 & November 16 OTM Puts, and VXX November 16 OTM Puts are the most heavily traded options contracts in US pre-market trading
• US 10-Year Treasury Bonds are higher with yields down -4.54 basis points to 3.1524%
• The US Treasury 2s-10s Spread has narrowed 2.04 basis points to 0.27%
• WTI Crude is currently little changed 0.07% to USD$69.17/bbl with the Brent-WTI spread down USD$-2.2 to USD$8.66/bbl
• Gold is currently up 0.98% to USD$1234.08/oz
• Global oil prices are trading at the lowest level in over a month after Saudi Arabia reiterates its commitment to increase oil production to offset the loss in supply related to US sanctions on Iran 
• The jump in gold prices puts the safe haven asset on tracks for its highest close in 3-months

Stocks Trending in the News

Click name for Q-Factor score and financial data.

• AMS (AMS SW) has crumbled over 27% today to 36.29 francs after issuing a profit warning.  AMS is a large supplier to Apple (AAPL) and its profit warning worries those who are uncertain how long AMS’ technology will be ahead of other players.  AMS will stop its foray into environmental sensors and focus on photonic elements.  AMS is rated ‘Unattractive’ in our US Large-Cap Global Top Stock Ideas.
• Anglo American (AAL LN) shares are 3.2% lower at 1609.80 pence after its trading update showed a build-up of inventories.  Goldman Sachs published a note highlighting the build-up and the potential for up to USD$500 million negative impact on cash generation.  Anglo American is not likely to clear the inventory in the coming quarter, Goldman Sachs highlights.  Anglo American is rated ‘Neutral’ in our United Kingdom All-Cap Global top Stock Ideas.
• Asian Paints Ltd (APNT IN) closed 5% lower at 1141.3 rupees after reporting 2Q net income and revenue that missed estimates.  Asian Paints delivered net income of 4.93 billion rupees while consensus was for 5.76 billion rupees.  Asian Paints’ revenue of 46.4 billion rupees was below the 47.8 billion rupees expected.  Asian Paints is declining for the fourth day in a row.  Asian Paints is rated ‘Neutral’ in our India All-Cap Global Top Stock Ideas.
• Bayer (BAYN GR) is falling 8.2% to 70.17 euros after failing to get the Roundup case thrown out of court.  Bayer had the award lowered to USD$78.6 million from USD$289 million.  Bayer is liable for cancer caused by its product, that did not change.  Bayer has indicated it will appeal the ruling.  Bayer is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas.
• Fifth Third Bancorp (FITB) reported 3Q results with adjusted EPS of 64 cents coming in line with the 64 cents expected.  Fifth Third Bancorp saw total loans grow by 1% with core deposits remaining flat.  Fifth Third Bancorp saw growth in consumer and C&I loans.  Fifth Third Bancorp is rated ‘Unattractive’ in our US Large-Cap Global Top Stock Ideas. 
• GAM Holdings (GAM SW) lost USD$18 billion in assets, cutting its asset under management by 20% in the third quarter.  GAM is falling 19% to 5.93 francs.  GAM has lost more than half of its market value this year after firing a star portfolio manager earlier in the year for weak risk management procedures.  GAM is rated ‘Neutral’ in our European Large-Cap Global Top Stock Ideas.
• Honeywell (HON) was upgraded to buy from hold at DZ Bank AG today.  Honeywell saw its price target lowered to $174 from $175.  The upgrade comes in the wake of Honeywell cutting its guidance for full-year EPS to $7.95-8 down from $8.10-8.20.  Honeywell is rated ‘Neutral’ in both our US Large-Cap and US Industrials Global Top Stock Ideas 
• Regions Financial (RF) reported 3Q loan growth of 1%.  Regions Financial sees “broad growth across the business and consumer lending portfolios” as business leading grew 2%.  Regions Financial reported 3Q EPS of 37 cents, in line with the 36 cents expected.  Regions Financial is rated ‘Neutral’ in our US SMID-Cap Global Top Stock Ideas. 
• Renault (RNO FP) reported weak 3Q results with revenue coming at 11.5 billion euros versus 12.2 billion expected.  Renault now sees growth in China of 2%, down from 5% expected.  Renault confirmed full-year guidance as its emerging markets business continues to suffer weakness.  Renault is trading 1.6% lower at 64.72.  Renault is rated ‘Neutral’ in our European Large-Cap Global Top Stock Ideas.
• Swedbank (SWEDA SS) does not expect to get pulled into the scandal involving Estonia transfers that Danske (DANSKE SS) is dealing with now, according to Swedbank’s CEO.  Swedbank’s focus on domestic customers over the years has protected it from this type of exposure, she went on to add.   Swedbank delivered 3Q results above expectations with its asset management unit contributing more results than expected on greater inflows.  Swedbank is trading 1.2% higher at 194.80 krona, Danske Bank is trading 1.9% lower at 127.95 krona.  Swedbank is rated ‘Attractive’ in our European Large-Cap Global Top Stock Ideas, Danske Bank is rated ‘Top Short’ in our European Large-Cap Global Top Stock Ideas.
• Tencent (700 HK) backed online broker Futu Securities has filed for an IPO in the US, according to a report in Bloomberg.    The report says the Tencent backed broker is looking to raise USD$300 million, though that is a preliminary number.  Tencent has not finalized the IPO plans and details could change, the report notes.  Tencent closed 4.6% lower at HKD$277.80.  Tencent is rated ‘Attractive’ in our China All-Cap Global Top Stock Ideas.  
• Whitbread (WTB LN) reported 1H18 revenue of 1.08 billion pounds.  Whitbread 1H18 adjusted profit came at 269.6 million pounds while adjusted operating profit came at 344 million pounds.  Whitbread expects to open Premier In to open 4,00-4,500 rooms in the UK and Germany.  Whitbread is rated ‘Attractive’ in United Kingdom All-cap Global Top Stock Ideas.
  

European Stocks

• European stocks are sliding this morning, down to levels not seen since December 2016 as stocks in the region track the sell-off in Asia stocks
• The Euro Stoxx 600 is currently down -1.27%, the FTSE 100 has declined -0.83%, the DAX has fallen -1.82%, and the CAC 40 is lower by -1.26%
• The EU is set to deliver its judgment on the Italian CY2019 budget deficit this afternoon (London time) 
• Weak earnings results from Renault (RNO FP), Ingenico Group (ING FP), AMG AG (AMG FR), and Atos SW (ATO FP) are weighing on investor sentiment in the region
• Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.14x
• Utilities (+0.29%), Personal & Household Goods (-0.02%), and Media (-0.35%) stocks are the top performers in the Euro Stoxx 600 today
• Technology (-3.79%), Basic Resources (-2.63%), and Construction & Materials (-1.93%) stocks are the worst performers in the Euro Stoxx 600 today
• 23 stocks in the Euro Stoxx 600 are at 4-week highs while 86 stocks are at 4-week lows
• 3 stocks in the Euro Stoxx 600 are overbought while 157 stocks are oversold according to the 16-day RSI Measure
• VSTOXX, the European stocks equivalent of the VIX, is moving up this morning and is currently at 21.19 after closing at 19.36 yesterday
• EUR€ is currently little changed against the USD$ at 1.1471
• GBP£ is currently up +0.177% against the USD$ to 1.2986
• CHF is currently little changed against the USD$ at 1.0048
• German 10-Year Bunds are higher with yields down -0.9 basis points to 0.438%
• UK 10-Year GILTs are higher with yields down -2.3 basis points to 1.504%

Asian Stocks

• Asian stocks returned to their negative trend, finishing negative in overnight trading after a 2-day rally in Chinese stocks stalled 
• The Nikkei 225 finished down --2.67%, the Hang Seng ended down -3.08%, the Hang Seng China Enterprise declined -2.44%, and the CSI 300 was -2.66%
• Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.01x
• 3 stocks in the Nikkei 225 hit 4-week highs while 53 stocks reached 4-week lows
• 0 stocks in the Nikkei 225 closed overbought while 9 stocks closed oversold according to the 16-day RSI Measure
• Investor sentiment for Hong Kong stocks finished negative with the advance/decline ratio for the Hang Seng closing at 0.02x
• 3 stocks in the Hang Seng hit 4-week highs while 2 stocks reached 4-week lows
• 0 stocks in the Hang Seng closed overbought while 1 stock closed oversold according to the 16-day RSI Measure
• Japan 10-Year Government Bonds are higher with yields down -0.2 basis points to 0.152%
• JGBs 2s-10s Spread has narrowed 0.5 basis points to 0.26%
• JPY¥ is currently down -0.434% against the USD$ to 112.33

Submitted October 23, 2018 at 08:00AM by QuantalyticsResearch https://ift.tt/2Ao1P3i