Stocks Slightly Lower into Final Hour on Less Economic Optimism, Oil Decline, Yen Strength, Retail/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 12.73 +2.91%

• Euro/Yen Carry Return Index 123.47 -.39%

• Emerging Markets Currency Volatility(VXY) 9.04 -.33%

• S&P 500 Implied Correlation 44.63 +.56%

• ISE Sentiment Index 54.0 +4.0%
  

• Total Put/Call .94 -20.3%

• NYSE Arms 1.79 +16.89%

Credit Investor Angst:

• North American Investment Grade CDS Index 66.67 +.13%
  

• America Energy Sector High-Yield CDS Index 334.0 -.48%

• European Financial Sector CDS Index 92.06 +3.86%

• Western Europe Sovereign Debt CDS Index 12.96 +3.97%

• Asia Pacific Sovereign Debt CDS Index 21.28 +.47%

• Emerging Market CDS Index 213.96 +.44%
  

• iBoxx Offshore RMB China Corporate High Yield Index 136.55 +.06%

• 2-Year Swap Spread 35.25 -.75 basis point

• TED Spread 38.75 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -25.0 +.5 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.01 -.18%
• 3-Month T-Bill Yield .76% unch.
  

• Yield Curve 111.0 -3.0 basis points
  

• China Import Iron Ore Spot $79.36/Metric Tonne -1.18%

• Citi US Economic Surprise Index 44.50 -3.5 points

• Citi Eurozone Economic Surprise Index 47.70 -6.4 points

• Citi Emerging Markets Economic Surprise Index 31.30 -3.1 points

• 10-Year TIPS Spread 1.97 unch.
  
• 56.7% chance of Fed rate hike at June 14 meeting, 61.3% chance at July 26 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +77 open in Japan 
• China A50 Futures: Indicating +54 open in China

• DAX Futures: Indicating +55 open in Germany

Portfolio: 

• Slightly Lower: On losses in my retail sector longs and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 75% Net Long