Stocks Slightly Lower into Final Hour on Eurozone Debt Angst, Earnings Outlook Concerns, Yen Strength, Retail/Insurance Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 10.39 +3.2%

• Euro/Yen Carry Return Index 128.85 -.67%

• Emerging Markets Currency Volatility(VXY) 8.12 +1.25%

• S&P 500 Implied Correlation 40.84 +5.44%

• ISE Sentiment Index 85.0 +28.8%
  

• Total Put/Call .74 +1.37%

• NYSE Arms .82 -3.41%

Credit Investor Angst:

• North American Investment Grade CDS Index 60.42 +.44%
  

• America Energy Sector High-Yield CDS Index 388.0 +1.49%

• European Financial Sector CDS Index 88.15 +24.15%

• Western Europe Sovereign Debt CDS Index 8.35 +.60%

• Asia Pacific Sovereign Debt CDS Index 18.67 -2.05%

• Emerging Market CDS Index 191.18 +.38%
  

• iBoxx Offshore RMB China Corporate High Yield Index 138.71 unch.

• 2-Year Swap Spread 20.75 -.75 basis point

• TED Spread 25.25 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -31.5 +.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.46 +.05%
• 3-Month T-Bill Yield .97% unch.
  

• Yield Curve 85.0 -3.0 basis points
  

• China Import Iron Ore Spot $56.03/Metric Tonne +.23%

• Citi US Economic Surprise Index -41.80 +3.9 points

• Citi Eurozone Economic Surprise Index 42.80 -.7 point

• Citi Emerging Markets Economic Surprise Index 10.10 -1.4 points

• 10-Year TIPS Spread 1.80 -2.0 basis points
  
• 94.8% chance of Fed rate hike at July 26 meeting, 96.1% chance at Sept. 20 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -19 open in Japan 
• China A50 Futures: Indicating -24 open in China

• DAX Futures: Indicating -6 open in Germany

Portfolio: 

• Slightly Lower: On losses in my retail sector longs 

• Disclosed Trades: None

• Market Exposure: 75% Net Long