Stocks Higher into Final Hour on Diminished Global Bank Contagion Fears, Dollar Weakness, Technical Buying, Commodity/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Gaining
  

• Volume:  Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 20.9 -4.0%
• DJIA Intraday % Swing .82%
  
• Bloomberg Global Risk On/Risk Off Index 49.4 +5.7%

• Euro/Yen Carry Return Index 148.1 +.9%

• Emerging Markets Currency Volatility(VXY) 12.0 -.08%

• CBOE S&P 500 Implied Correlation Index 36.2 -3.1% 

• ISE Sentiment Index 84.0 +8.0 points
  

• Total Put/Call .88 -19.3%

• NYSE Arms .95 +20.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 83.3 -2.5%
  

• US Energy High-Yield OAS 438.7 -4.3%
• Bloomberg TRACE # Distressed Bonds Traded 459.0 +10
  

• European Financial Sector CDS Index 116.0 -.4% 
• Deutsche Bank Subordinated 5Y Credit Default Swap 422.8 -18.5%
  

• Italian/German 10Y Yld Spread 184.0 basis basis points -4.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 147.1 +1.4%
  

• Emerging Market CDS Index 249.4 -1.6%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 26.6 -.5%

• 2-Year Swap Spread 29.0 basis points -3.0 basis points
  

• TED Spread 49.0 basis points -4.5 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.0 +3.25 basis points
  
• MBS  5/10 Treasury Spread  154.0 -3.0 basis points
  
• Bloomberg CMBS Investment Grade Bbb Average OAS 661.0 +5.0 basis points
  
• Avg. Auto ABS OAS 91.0 +1.0 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 47.6 +.04%
• 3-Month T-Bill Yield 4.68% +8.0 basis points
  

• China Iron Ore Spot 119.6 USD/Metric Tonne +.3%
• Dutch TTF Nat Gas(European benchmark) 42.5 euros/megawatt-hour +3.5%

• Citi US Economic Surprise Index 59.5 -1.7 points

• Citi Eurozone Economic Surprise Index 59.5 +6.9 points
  

• Citi Emerging Markets Economic Surprise Index 23.6 +3.4 points
  
• S&P 500 Blended Forward 12 Months Mean EPS Estimate 226.31 +.08:  Growth Rate +1.8% +.1 percentage point, P/E 17.6 +.1
  
• S&P 500 Current Year Estimated Profit Margin 12.33% -1.0 basis point
  
• Bloomberg US Financial Conditions Index -.49 +26.0 basis points
  
• Yield Curve -49.0 basis points (2s/10s) -9.0 basis points
• US Atlanta Fed 1Q GDPNow Forecast +3.19% unch.
  

• Cleveland Fed Inflation Nowcast Core PCE YoY +4.73% unch.: CPI YoY +5.22% unch.
  
• 10-Year TIPS Spread 2.25 +2.0 basis points
  
• Highest target rate probability for June 14th FOMC meeting: 57.2%(-6.2 percentage points) chance of 4.75%-5.0%. Highest target rate probability for July 26th meeting: 48.6%(-10.1 percentage points) chance of 4.50%-4.75%.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -76 open in Japan 
• China A50 Futures: Indicating -16 open in China

• DAX Futures: Indicating +192 open in Germany

Portfolio:

• Higher:  On gains in my medical/industrial sector longs and emerging market shorts
  

• Disclosed Trades:  None
  

• Market Exposure: 50% Net Long