Stocks Reversing Slightly Higher into Afternoon on US Economic "Soft-Landing" Hopes, Earnings Outlook Optimism, Short-Covering, Healthcare/Gambling Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 16.9 -1.3%
• DJIA Intraday % Swing .50%
  
• Bloomberg Global Risk On/Risk Off Index 57.2 +.3%

• Euro/Yen Carry Return Index 153.9 -.02%

• Emerging Markets Currency Volatility(VXY) 10.0 +.1%

• CBOE S&P 500 Implied Correlation Index 33.3 +3.3% 

• ISE Sentiment Index 119.0 +48.0 points
  

• Total Put/Call .87 -11.2%

• NYSE Arms 1.34 -17.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 76.3 -.46%
  

• US Energy High-Yield OAS 376.51 -1.0%
• Bloomberg TRACE # Distressed Bonds Traded 423.0 +11
  

• European Financial Sector CDS Index 96.4 +.55% 
• Deutsche Bank Subordinated 5Y Credit Default Swap 352.12 +.8%
  

• Italian/German 10Y Yld Spread 187.0 basis basis points unch.
  

• Asia Ex-Japan Investment Grade CDS Index 127.8 +1.8%
  

• Emerging Market CDS Index 241.25 -.9%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 26.83 -.06%

• 2-Year Swap Spread 27.75 basis points -.75 basis point
  

• TED Spread 20.75 basis points +.75 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -17.5 -2.75 basis points
  
• MBS  5/10 Treasury Spread 164.0 -1.0 basis point
  
• Bloomberg CMBS Investment Grade Bbb Average OAS 693.0 -1.0 basis point
  
• Avg. Auto ABS OAS 94.0 -1.0 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 47.6 -.07%
• 3-Month T-Bill Yield 5.05% -2.0 basis points
  

• China Iron Ore Spot 105.4 USD/Metric Tonne -2.5%
• Dutch TTF Nat Gas(European benchmark) 40.2 euros/megawatt-hour -1.0%

• Citi US Economic Surprise Index 32.1 +5.7 points

• Citi Eurozone Economic Surprise Index 32.8 -4.2 points
  

• Citi Emerging Markets Economic Surprise Index 31.8 unch.
  
• S&P 500 Blended Forward 12 Months Mean EPS Estimate 225.93 -.15:  Growth Rate +1.6% unch., P/E 18.3 -.1
  
• S&P 500 Current Year Estimated Profit Margin 12.27% +1.0 basis point
  
• Bloomberg US Financial Conditions Index .08 +1.0 basis point
• Bloomberg Euro-Zone Financial Conditions Index -4.28 -10.0 basis points
  
• US Yield Curve -62.0 basis points (2s/10s) -1.75 basis points
• US Atlanta Fed 1Q GDPNow Forecast +2.48% unch.
  

• Cleveland Fed Inflation Nowcast Core PCE YoY +4.58% unch.: CPI YoY +5.17% unch.
  
• 10-Year TIPS Spread 2.28 -1.0 basis point
  
• Highest target rate probability for June 14th FOMC meeting: 68.4%(+2.7 percentage points) chance of 5.0%-5.25%. Highest target rate probability for July 26th meeting: 60.5%(+3.3 percentage points) chance of 5.0%-5.25%.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +146 open in Japan 
• China A50 Futures: Indicating -22 open in China

• DAX Futures: Indicating +149 open in Germany

Portfolio:

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

• Disclosed Trades:  Covered some of my (IWM)/(QQQ) hedges
  

• Market Exposure: Moved to 75% Net Long