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2015-06-03 04:32:15

Posted by
Elaine Chen
Sales Trader
International Business Division
Guosen Securities
Contributor
Macro

GUOSEN Closing Bell (June.03)

NEWS

*After 10 years of preparation and 14 rounds of negotiations, China and South Korea signed a bilateral free trade agreement (FTA) in Seoul on June 1, 2015. The signing of the FTA represents a milestone in the cooperation between the two countries. Under the accord, after a transitional period, South Korea will eliminate tariffs on 92 percent of all products from China, while China will abolish tariffs on 91 percent of all imported South Korean goods. At the signing ceremony, Chinese Commerce Minister Gao Hucheng said: "This China-South Korea FTA is a high level, comprehensive and balanced free trade agreement. It's the largest deal for China in terms of trade volume and it's a deal that covers the widest fields." Yoon Sang-jick, his South Korean counterpart, said that The FTA will make the economic ties between South Korea and China closer. It will provide enormous opportunities for future development of business from both countries and our respective economies. (People’s Daily)

*Gansu Dayu Water-saving Group Co Ltd (300021.SZ) won the bid for an irrigation project in Gansu province. The company intended to increase sales order by approximately 26% to RMB1.5 billion this year, as compared with same period last year. (AAstocks)

*The Ministry of Commerce's Xu Xiaofeng said at the press conference that according to incomplete survey, the investments in Central and Eastern Europe which were made by Chinese enterprises exceeded US$5 billion, including the investment in the machinery, chemicals, IT, telecommunications, household appliances, automobiles, auto parts, logistics and commerce, new energy, research and development, finance and agriculture segments. (People’s Daily)

MARKET

Chinese stocks closed mixed today, with the benchmark Shanghai Composite Index ended at 4909.98 points. The market rebounded in the afternoon after slump in noon. Media and building sectors led the gains; military and electricity sectors led the falls. Combined turnover for both markets was 2020.9 bn yuan, up 2.4% dod.

 

CLOSE

%CHG

VOL (bn yuan)

%YTD

SH Composite

4909.98

-0.01

1010.1

+51.81

SZ Component

17485.58

+3.36

1010.8

+58.75

CSI300

5161.87

+1.69

672.0

+46.08

ChiNext

3901.54

+4.92

220.9

+165.09

 

Sector

Top 1

Led by

Top 2

Led by

Upward-leading

Media

600880

Building

600477

Downward-leading

Military

600990

Electricity

000993

 

FUND FLOW

This article is from Guosen Securities Co., Ltd. and is being posted with Guosen Securities Co., Ltd.’s permission. The views expressed in this article are solely those of the author and/or Guosen Securities Co., Ltd. and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-06-03 04:18:42

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor
Technical Analysis

AUDUSD Spikes Higher on RBA\?\???\??[??[

The AUDUSD surged yesterday on the RBA decision to not cut rates and on less dovish comments than expected, completing its pullback from approximately .81-.76, and now nearing the same pullback's 38.2% retrace.  The AUDUSD is now consolidating on the 4hr timeframe, and appears to have more upside today based on the still upsloping 4hr MACD and daily MACD which is just about to positively crossover.  The weekly RSI, Stochastics and MACD are all now strongly rallying.  I will look to establish longs today on any notable pullbacks to the .773-.776 range.  

 

AUDUSD Weekly/Daily/4hr/Hourly

 

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

 

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 

2015-06-03 04:17:43

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor
Technical Analysis

Arabica Coffee (KC) Surge Continues Off Last Weej\? ? MH??

Arabica Coffee (KC) continued its rally yesterday, pushing to around 1.34 before seeing profittaking towards the close.  KC's new 2015 low last week appears to have been a false bear signal, with an island reversal in last week's candle.  Weekly and daily RSI, Stochastics and MACD are all bottomish or rallying, although the 4hr RSI and Stochastics suggest possibly a bit of consolidation today before a renewed push higher.  I took profit on my KC longs too early yesterday and will look to re-enter my longs today in the 1.29-1.3 range.

 

Arabica Coffee (ICE KC Jul15) Weekly/Daily/4hr/Hourly

 

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

 

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 

2015-06-03 04:16:52

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor
Technical Analysis

EURUSD Daily MACD Positive Crossover Soon

The EURUSD surged yesterday, completing its pullback from approximately 115-108, and now testing the same pullback's 50% retrace.  The EURUSD is now consolidating on the 4hr timeframe, and appears to have more upside today based on the still upsloping 4hr MACD and daily MACD which is just about to positively crossover.  The weekly RSI, Stochastics and MACD are all now strongly rallying.  I took profit too early yesterday and will look to re-enter my longs on any notable pullbacks to the 1.108-1.112 range.   

 

EURUSD Weekly/Daily/4hr/Hourly

 

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

 

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-06-02 13:28:32

Posted by
Neil Azous
Founder & Managing Member
Rareview Macro LLC
Contributor
Macro

Greece Risk Aside, European Repair Story Marches On

As much as professionals want to argue that the four sigma sell-off underway in the long-end of German fixed income and the violent short covering in euro currency crosses – EUR/JPY, EUR/ZAR, EUR/GBP, etc. – is the equivalent of a VaR shock, in fact the more realistic probability is that we will look back at this time later in the summer and argue that it was simply the lead in to a lower volatility profile.

The reason for this relates to something more fundamental, and cannot be explained away as just the result of a reduction in anxiety around Greece. Put another way, while volatility can see short-term spikes on one-off technical events in order for higher levels to be sustained there has to be a genuine deterioration in both economic growth and corporate operating performance.

Therefore the consensus observation this morning about the weakness in German Bunds and other European fixed income is due to the negotiations over Greece getting closer to a resolution is the technical reason, and if weightings were assigned to it would end up being ~25% of the move. We view this in the 2-year German Schatz. Last Friday, the Schatz traded at -24 bps in yield. Today, it reached -19 bps. This is all relative to the -20 bps deposit rate, where you can see the risk premium being priced into a Eurozone break up from a Greek default.

By contrast, we believe the higher yields are directly linked to the speed and degree of the upside acceleration in European consumer price indices. Suffice to say the European repair story just took another meaningful leap forward.

On top of an acceleration of headline and core consumer prices for May, the ECB’s bi-annual survey of small and medium-sized enterprises (SME’s) showed the first easing of access to bank financing since 2009 over the last six months.

 

Sight Beyond Sight® is a global macro trading newsletter written daily by Neil Azous. With close to two decades of institutional experience across asset classes, Neil interprets the day-to-day economic, policy and strategy developments and provides actionable trading ideas for investors. We invite clients of Interactive Brokers to sign up for a free trial in Account Management. If you are not a client of IB, you can sign up for a free trial by visiting our website.

 

This article is from Rareview Macro and is being posted with Rareview Macro’s permission. The views expressed in this article are solely those of the author and/or Rareview Macro and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-06-02 10:50:14

Posted by
Russ Koesterich, CFA
BlackRock
Contributor
Macro

Back to the Search for Yield

Weekly Commentary Overview

  • Stocks declined last week as economic data continued to come in mixed. But bond yields also fell, and prices rose, as inflation concerns lessened.
  • We expect that long-term yields will remain low (our year-end target for the 10-year Treasury yield is around 2.50%) even as the Fed starts to raise rates.
  • This leaves investors with the same challenge they've faced for the past five years: how to source yield in a low-yield environment.
  • We continue to see high yield bonds, which have outperformed year-to-date, as a good option within fixed income.
  • Investors should also look to broaden their search for income beyond bonds. This suggests a greater emphasis on dividend-paying stocks, with an important caveat: Focus on dividend growth rather than the absolute level of yield.

A Reminder of the “Low-for-Long” Environment

Stocks declined last week as economic data continued to come in mixed. The Dow Jones Industrial Average fell 1.21% to 18,011, the S&P 500 Index dropped 0.89% to 2,107, and the Nasdaq Composite Index slipped a more modest 0.37% to 5,070. But bond yields also fell, and prices rose, as inflation concerns lessened. The yield on the 10-year Treasury moved from 2.21% to 2.12%.

We still believe yields are likely to rise modestly by year’s end, but last week reminds us that we are in a “low-for-long” interest rate environment. And that means investors who are searching for income will continue to need to find alternative sources for that income.

Stocks Slip as Rates Reverse

Despite another surge of acquisition deals last week—Charter Communications plans to buy Time Warner, while Avago is set to buy Broadcom in the largest semi-conductor deal ever—U.S. stocks slipped as investors began to grudgingly accept the likelihood of an autumn increase in interest rates by the Federal Reserve (Fed).

European stocks also lost ground, but Japan bucked the trend, closing at a 15-year high. With U.S. equity markets struggling to break out of their range, investors are increasing their non-U.S. allocation. Last week, for example, investors withdrew $1.6 billion from U.S. large-cap exchange traded funds. The beneficiaries of this rotation were China and broad, non-U.S. funds, which received inflows of $4.2 billion and $1.5 billion, respectively. As discussed in previous commentaries, we agree with the investor penchant for higher international exposure.

As stocks slipped, so did bond yields. Ten-year U.S. Treasury yields hit a one-month low of 2.10%, but the trend was global: German Bund yields fell back below 0.50% and there were similar drops in U.K. and Australian yields.

Investors are reacting to several factors. First, U.S. economic numbers continue to be mixed—an index of economic surprises is still hovering just above a six-year low—although the trend is toward improvement, with durable goods and housing starts stronger than expected. Economic data in Europe, which got off to a stronger start to the year, is also decelerating. An index of European economic surprises dipped into negative territory for the first time since January.

Second, inflation expectations are moderating after their recent surge. In the U.S., investor expectations for inflation over the next decade fell from 1.95% in early May to barely 1.80% on Friday. The drop in inflation expectations has occurred at the same time as a resumption of the dollar’s rally and a stalling in the run-up in crude oil prices. The latter relationship is important. Inflation expectations followed oil higher for most of the spring. More recently, as oil prices have struggled with the prospect of U.S. shale production re-accelerating, inflation expectations have slid lower as well.

Looking for Yield in a Low-Yield World

Given these forces, along with more structural considerations––aging populations, institutional demand for bonds and a dearth of supply––we expect that long-term yields will remain low (our year-end target for the 10-year Treasury yield is around 2.50%) even as the Fed starts to raise rates. Short-term rates should rise, but long-term yields are likely to be more anchored over the next one to two years.

This leaves investors with the same challenge they’ve faced for the past five years: how to source yield in a low-yield environment. We continue to see high yield bonds, which have outperformed year-to-date, as a good option within fixed income.

However, investors should also look to broaden their search for income beyond bonds. This suggests a greater emphasis on dividend-paying stocks, with an important caveat: Focus on dividend growth rather than the absolute level of yield. Many sectors offering high yields (such as utilities) are expensive and the most vulnerable to a rise in rates. Instead, yield-hungry investors should look for technology, financials, health care and select energy companies offering rising dividends.

 

Russ Koesterich, CFA, is BlackRock's Chief Investment Strategist and Head of the Model Portfolio & Solutions business. He is a founding member of the BlackRock Investment Institute, delivering BlackRock's insights on global investment issues. For more of Russ’s weekly commentaries, visit the BlackRock site.

 

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of June 1, 2015, and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. Investment involves risks. International investing involves additional risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. The two main risks related to fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

©2015 BlackRock, Inc. All Rights Reserved. BLACKROCK, iSHARES and SO WHAT DO I DO WITH MY MONEY are registered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.

Prepared by BlackRock Investments, LLC, member FINRA.

Not FDIC Insured • May Lose Value • No Bank Guarantee

4471A-MC-0615 / USR-6377

 

This article is from BlackRock and is being posted with BlackRock’s permission. The views expressed in this article are solely those of the author and/or BlackRock and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-06-02 09:47:39

Posted by
John Carter
President
Simpler Stocks
Contributor
Stocks

Simpler Stocks: Monday Movers

Stocks were up Monday to start the week, posting modest gains on the day, with the broader S&P500 index up 20 bps. The big news came from the tech sector, as Intel and Altera struck a $17 billion deal, while in economic news consumer spending was flat in April. That was little news on inflation, which was unchanged for the month.

Stocks to Watch:

Citigroup Inc. (Ticker: C)

Citi got a favorable rating from Goldman Sachs and a $61.00 price target. In the meantime, the stock rose slightly on news it might close a struggling cross-border money services unit. Valuation is decent, though additional upside may come if the quarterly dividend is hiked.

Barrett Business Services Inc. (Ticker: BBSI)

Barrett EV/Sales is notably low at 0.4x, with an attendant PEG ratio that is also below 1x. Its business management solutions niche should support double-digit sales growth alongside earnings growth of as much as 30% over the near term.

Xilinx Inc. (Ticker: XLNX)

Following the announcement that INTC would buy XLNX’s chief chip rival Altera, Xilinx should benefit from ALTR’s “customer angst” said Raymond James in a Monday research note. The stock should benefit from an upgrade by the research firm to “strong buy” and customers may not like the idea of having to do business with INTC. The forward PE is slightly below market multiples on a cash-adjusted basis, and yield is above 2%.

O’Reilly Automotive Inc. (Ticker: ORLY)

ORLY said Friday it has authorized an additional $500 million share repurchase, with the total authorization now at $5.5 billion. That would represent 25% of the current market cap. The current free cash flow yield is 4%. The beta remains below 1x. 

Cracker Barrel Old Country Store, Inc. (Ticker: CBRL)

Investor’s Business Daily said Monday that the name is worth watching into Tuesday earnings as analysts look for EPS of $1.37, up 11% over the year ago period. Earnings are growing faster than revenues, to be up an estimated 6%. The company could be a relative outperformer among restaurant stocks, with a bit of resistance at the 50-day moving average. The forward PE is 19x, and dividend yield is 2.8%.

 

About the author: John Carter has been a full time trader for 15 years, serving over 100,000 subscribers in over 100 countries.  For more analysis on high growth stocks visit www.SimplerStocks.com.

 

This article is from Simpler Stocks and is being posted with Simpler Stocks’ permission. The views expressed in this article are solely those of the author and/or Simpler Stocks and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-06-02 09:34:49

Posted by
Jamie Lissette
Trading Analyst
Hammerstone Group
Contributor
Stocks

Sector News Breakdown

Consumer

  • PVH Corp. (PVH) Q1 EPS $1.50/$1.88B vs. est. $1.38/$1.86B; raises FY15 EPS view, authorizes $500M share repurchase plan; raises FY15 adjusted EPS view to $6.85-$6.95 from $6.75-$6.90 (est. $6.86)
  • Subsidiaries of British American Tobacco PLC (BATS.LN), Philip Morris International Inc. (PM) and Japan Tobacco Inc. have been ordered to pay around 15.6 billion Canadian dollars ($12.5 billion) in damages after losing a court case in Quebec.
  • Conn's (CONN) Q1 EPS 43c/$365.08M vs. est. 41c/$368.53M; 1Q comp sales down (-4.3%); Still sees year comp sales unchanged to up low single digits and reaffirms year retail gross margin view 40%-41%
  • American Woodmark (AMWD) Q4 EPS 68c/$206.9M vs. est. 56c/$209.7M
  • Big Lots (BIG) upgraded to Overweight from Equal Weight at Barclays

Energy

  • GasLog Partners (GLOP) files $600M mixed securities shelf
  • Ferrellgas Partners LP (FGP) files to sell 6.325M common units for limited partners
  • Chevron (CVX) to move Deepwater US Gulf of Mexico platform to sheltered waters following damage to installation tendons

Financials

  • HSBC Holdings Plc (HSBC), Europe’s largest bank, will announce a plan next week to cut thousands of jobs, Sky News reported, citing unidentified people close to the matter; said the reduction will probably affect 10,000 to 20,000 people, according to Sky
  • Zions Bancorporation (ZION) announced a corporate restructuring in conjunction with several expense and revenue initiatives
  • E*TRADE (ETFC) CFO Matthew Audette is leaving to accept a job with another company
  • QTS Realty Trust (QTS) files to sell 5.5M shares of Class A common stock
  • Zions Bancorp (ZION) upgraded to Buy from Hold at Evercore ISI
  • Blackstone Mortgage (BXMT) files to sell 10M shares of Class A common stock
  • Washington REIT (WRE) files automatic mixed securities shelf

Healthcare

  • Cerulean Pharma (CERU) full data from a Phase 1b/2 investigator-sponsored trial of CRLX101 in combination with Avastin in metastatic renal cell carcinoma, as primary endpoint (50% of patients achieving ≥ 4 months progression free survival, or PFS) met with 12/22 patients achieving ≥ 4 months PFS
  • Intersect ENT (XENT) files to sell 3M shares of common stock
  • Merrimack Pharmaceuticals, Inc. (MACK) said MM-398 results from study show a tolerable safety profile of MM-398 in patients with high-grade glioma when given intravenously
  • Nevro (NVRO) files to sell shares; 1.475M by company and 2.46M by holders

Industrials & Materials

  • AerCap Holdings NV (AER) said that insurer American International Group Inc. (AIG) plans to sell 50 million shares of the aircraft leasing company in a public offering
  • Old Dominion Freight (ODFL) sees 2Q growth in LTL tons/day 9.5%-10% vs. prior view 9%-10%, but lowers Q2 LTL revenue per hundredweight ex fuel surcharges up 5%-5.5% vs. prior range 5.5%-6.5%
  • Gold Fields (GFI) upgraded to Outperform at RBC Capital

Technology, Media & Telecom

  • Intel (INTC) downgraded to Market Perform from Outperform at BMO Capital
  • Frontier (FTR) announces $750M stock offering
  • Qunar (QUNR) said on May 8, it received an unsolicited offer from Ctrip.com (CTRP) to acquire all of the company's outstanding shares, but rejected the offer; QUNR also said that on June 1, Baidu (BIDU) and Qunar agreed to terminate the Zhixin cooperation agreement with immediate effect
  • TubeMogul (TUBE) files to sell $75M of common stock
  • ON Semiconductor (ON) files to sell $600M of convertible senior notes due 2020
  • Smartwatch display unit shipments are expected to grow 250% to 23M in 2015, reports DigiTimes

 

The content of this post was created by the Hammerstone Group. The Hammerstone Institutional Forum, a chat-based platform for traders, provides subscribers with up-to-the-minute breaking news headlines and instant analysis that drive the market. For more information please visit www.thehammerstone.com. For more information on the stocks mentioned in the Hammerstone Recap, please contact Brian Ducey at brian@thehammerstone.com.

 

This article is from the Hammerstone Group and is being posted with the Hammerstone Group's permission. The views expressed in this article are solely those of the author and/or the Hammerstone Group and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-06-02 09:30:01

Posted by
Jamie Lissette
Trading Analyst
Hammerstone Group
Contributor
Stocks

The Hammerstone Report

U.S. equity futures are flat across the board, while Europe is lower and Asia was mixed. The euro strengthened overnight by nearly 1%, the most in three weeks against the dollar, as talks intensify between Europe’s leaders and the IMF in an effort  to resolve an impasse with Greece and avert a default (Greece EU$302B IMF debt repayment due Friday). It feels like it is going to be a week of waiting, as the jobs data, OPEC meeting and the Greece talks all come to a head on Friday, with some earnings/economic data points sprinkled in between. On the agenda today, monthly auto sales for May will be released as well as May Factory Orders (fairly light in comparison to yesterday), but there are several conferences that will be taking place on Wall Street (see calendar below).

In Asian markets, The Nikkei Index dipped -26 points to 20,543, the Shanghai Index rose 81 points (1.69%) to settle at 4,910, and the Hang Seng Index fell -130 points to 27,466. Japanese stocks slipped overnight, as the Nikkei Stock Average 12-day winning streak snapped. Had it finished higher, it would have marked the longest streak since early 1988, helped by a softening yen, which fell to its lowest level since 2002 against the dollar.

World News

  • Greek Prime Minister Alexis Tsipras said his government submitted a new proposal aimed at breaking the stalemate just as creditors set about finalizing theirs. Tsipras is waiting for European leaders to show their hand after they held top-level talks in Berlin on Monday night aimed at hatching a plan to unlock funds and avoid the country defaulting – Bloomberg
  • Euro-area consumer prices rose on an annual basis for the first time in six months, as prices rose 0.3% in May exceeded the 0.2% forecast; core inflation accelerated to 0.9%, the fastest in nine months

 

The content of this post was created by the Hammerstone Group. The Hammerstone Institutional Forum, a chat-based platform for traders, provides subscribers with up-to-the-minute breaking news headlines and instant analysis that drive the market. For more information please visit www.thehammerstone.com. For more information on the stocks mentioned in the Hammerstone Recap, please contact Brian Ducey at brian@thehammerstone.com.

 

This article is from the Hammerstone Group and is being posted with the Hammerstone Group's permission. The views expressed in this article are solely those of the author and/or the Hammerstone Group and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-06-02 04:46:11

Posted by
Elaine Chen
Sales Trader
International Business Division
Guosen Securities
Contributor
Macro

GUOSEN Closing Bell (June.02)

NEWS

*China National Nuclear Power Co., Ltd (CNNP) started taking subscriptions from investors on Tuesday, aiming to raise 13.19 bln yuan (2.15 bln U.S. dollars) for what will be the largest initial public offering (IPO) in China's A share market in four years. Intending to issue 3.891 billion shares at 3.39 yuan a piece, the CNNP IPO could be the biggest in the A share market since Power Construction Corp. of China's offering in September 2011. CNNP's IPO price was 22.29 times the company's 2014 earnings, lower than an average earnings ratio of 22.32 for the industry, according to CNNP statements posted on the Shanghai Stock Exchange website on Tuesday. (Xinhua)

*China's dairy firm Modern Farming won the gold prize for a second consecutive year at the 54th edition of Monde Selection held in Portugal's capital Lisbon on Monday. Modern Farming's win demonstrated that its milk products have met the highest international food standards and obtained an internationally recognized quality passport, said Monde Selection Chairman Patrick de Halleux at the awarding ceremony. The jury members have spoken highly of the milk produced by Modern Farming as it contains no additives and retains freshness, he said. (Xinhua)

*China's further economic development is empowered by technological innovation, institutional innovation, and innovation on a scale from minor to massive. Statistics show that business R&D expenditure in 2014 made up 76 per cent of China's total R&D expenditure. Research personnel in the business sector account for 77 per cent of the national total. Business is becoming the main driver of technological innovation. Companies are entering mid- to high-end markets with the help of technological innovation. Technological innovation gives energy to traditional industry as well as to emerging industries. There are growing numbers of robots in factories. New technology including big data, cloud computing, mobile internet, and new energy cars give impetus to the development of advanced technology enterprises. (People’s Daily)

MARKET

Chinese stocks closed higher today, with the benchmark Shanghai Composite Index ended at 4910.53 points. The market rebounded in the afternoon despite frozen IPO subscription funds. Media and light industry sectors led the gains; non bank financial sector led the falls. Combined turnover for both markets was 1972.8 bn yuan, up 9.0% dod.

 

CLOSE

%CHG

VOL (bn yuan)

%YTD

SH Composite

4910.53

+1.69

998.7

+51.81

SZ Component

17485.58

+3.36

974.1

+58.75

CSI300

5161.87

+1.69

658.4

+46.08

ChiNext

3901.54

+4.92

213.0

+165.09

 

Sector

Top 1

Led by

Top 2

Led by

Upward-leading

Media

300079

Light industry

002067

Downward-leading

Non bank financial

601198

 

 

 

FUND FLOW

This article is from Guosen Securities Co., Ltd. and is being posted with Guosen Securities Co., Ltd.’s permission. The views expressed in this article are solely those of the author and/or Guosen Securities Co., Ltd. and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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