Thursday, June 05, 2025

Friday Watch

Around X:
  • @ZeroHedge
  • @MarioNawful  
  • @LauraLoomer 
  • @TheTranscript 
  • Broadcom double beat. CEO: "Broadcom's record first quarter revenue and adjusted EBITDA were driven by both AI semiconductor solutions and infrastructure software." $AVGO: -1.3% AH. 
  • $AVGO CEO: "Q1 AI revenue grew 77% Y/Y to $4.1B & infrastructure software revenue grew 47% Y/Y to $6.7B. We expect continued strength in AI semiconductor revenue of $4.4B in Q2, as hyperscale partners continue to invest in AI XPUs & connectivity solutions for AI data centers."
  • DocuSign double beat. $DOCU: -14% AH.
  • @WallStreetApes
  • @glennbeck
  • @WarClandestine
  • My understanding of the OBBB situation: The bill has lots of things that advance Trump’s agenda, like tax cuts, finishing the wall, etc., but there is a lot of pork added in by Congress. However, it’s a budget reconciliation bill, so we only need 50 votes as opposed to 60 in the Senate, so Trump and his team are willing to let Congress get their pork, so long as Trump is able to pass what is needed to advance his agenda. Elon doesn’t like the extra pork and wants to slim it down, and Trump just wants to get his bill passed so he can fix pressing problems. I can see both sides of the argument.
Quot
  • @rawsalerts
  • @bennyjohnson 
  • @C_3C_3
  • Elon is 100% about America’s debt. Trump is 100% about DC being a Swamp. The Swamp won’t cut debt because they get rich making debt. Trump has to run America through the Swamp. If Congress was full of Elons it would be easy but it’s full of Swamp Creatures. DC sucks. Facts.
  • Bill Clinton right now with the Democrats calling for the Epstein Client List to be released. (pic)
  • I know everything about Mohamed Soliman in 3 days. I know nothing about Thomas Crooks in 326 days. How can that be?
  • @realannapaulina
Night Trading 
  • Asian equity indices are -.25% to +.5% on average. 
  • Asia Ex-Japan Investment Grade CDS Index 76.0 -1.0 basis point. 
  • China Sovereign CDS 49.5 -.5 basis point.
  • China Iron Ore Spot 95.6 USD/Metric Tonne +.8%.
  • Swiss Franc/Offshore Chinese Renminbi Cross 8.75 -.01%.
  • Bloomberg Emerging Markets Currency Index 37.2 -.01%.
  • Bloomberg Global Risk-On/Risk Off Index 69.1 +.7%.
  • US 10-Year Yield 4.39% +2.0 basis points.
  • Volatility Index(VIX) futures 21.0 +.3%.
  • Euro Stoxx 50 futures -.26%. 
  • S&P 500 futures +.18%. 
  • NASDAQ 100 futures -.02%.
Morning Preview Links

BOTTOM LINE: Asian indices are mostly higher, boosted by consumer discretionary and technology shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 50% net long heading into the day.

Stocks Close Lower on Trump/Musk Feud, Rising "Big Beautiful Bill" Passage Uncertainty, Technical Selling, Gambling/Shipping Sector Weakness

Economic Gauges:

  • Bloomberg Emerging Markets Currency Index 37.15 +.15% 
  • US 10-Year T-Note Yield 4.40% +4.0 basis points
  • 3-Month T-Bill Yield 4.33% -1.0 basis points
  • China Iron Ore Spot 95.7 USD/Metric Tonne +.84%
  • Dutch TTF Nat Gas(European benchmark) 36.4 euros/megawatt-hour +2.1%
  • Citi US Economic Surprise Index -6.7 -3.6 points
  • Citi Eurozone Economic Surprise Index 27.3 +2.7 points
  • Citi Emerging Markets Economic Surprise Index 34.6 +.9 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(496 of 500 reporting) +12.4% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 276.98 +.12:  Growth Rate +9.0% unch., P/E 21.7 +.1
  • S&P 500 Current Year Estimated Profit Margin 13.25% unch.
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(9 of 10 reporting) +32.4% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 429.0 +.25: Growth Rate +14.9% +.1 percentage point, P/E 33.2 +.5
  • Bloomberg US Financial Conditions Index .37 -4.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.47 +8.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 7.1 -.3
  • US Yield Curve 46.75 basis points (2s/10s) -2.0 basis points
  • US Atlanta Fed GDPNow Q2 Forecast +3.8% -8.0 basis points
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 42.8% +2.8 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.65% unch.: CPI YoY +2.40% unch.
  • 1-Year TIPS Spread 2.77 -3.0 basis points
  • 10-Year TIPS Spread 2.30 -1.0 basis point
  • Highest target rate probability for July 30th FOMC meeting: 69.2% (-1.3 percentage points) chance of 4.25%-4.5%. Highest target rate probability for Sept. 17th meeting: 55.4%(-1.8 percentage points) chance of 4.0%-4.25%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating -141 open in Japan 
  • China A50 Futures: Indicating -69 open in China
  • DAX Futures: Indicating +33 open in Germany
Portfolio:
  • Slightly Higher: On gains in my tech/industrial/financial sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 50% Net Long

Bear Radar

Style Underperformer:

  • Large-Cap Growth -.1%
Sector Underperformers:
  • 1) Shipping -1.2% 2) Gambling -1.2% 3) Restaurants -.7%
Stocks Falling on Unusual Volume: 
  • KNTK, LTH, CNTA, MLTX, BULL, LEU, DOCN, PAY, ACIC, DSGX, LZMH, TSLA, CIEN, DXYZ, PVH, BF/B and CRWV
Stocks With Unusual Put Option Activity:
  • 1) BYON 2) DOCU 3) LULU 4) IOT 5) AG
Stocks With Most Negative News Mentions:
  • 1) TSLA 2) CHPT 3) BF/B 4) CIEN 5) PC
Sector ETFs With Most Negative Money Flow:
  • 1) FTEC 2) SOXX 3) PNQI 4) XLK 5) IAI

Bull Radar

Style Outperformer:

  • Small-Cap Growth +.4%
Sector Outperformers:
  • 1) Gold & Silver +1.7% 2) Software +1.3% 3) I-Banks +1.1%
Stocks Rising on Unusual Volume:
  • NBIS, MDB, SMG, OSCR, ARLO, SATS, CYD, MP, KC, AGX, CAPR, SRRK, DLTR, PAAS, OSK, NCLH, LASR, PRCT, DOMO, CRMD, RDY, CC, COO, MGNI, GDS, MGNI, BWLP, RKT, MAG, TSCO, NET, STAA, FIVE, TIC, COOP, BLD, LQDA, MU, BLD, RDFN, STAA, JEF, VRNT, INOD, RDW, GTLB, SOFI, JHX, BROS, TIC, BV, CRSP, GAP, LITE, SA, SSRM, XYF, CFLT and PAX
Stocks With Unusual Call Option Activity:
  • 1) PL 2) CIVI 3) ASTL 4) MDB 5) VEEV
Stocks With Most Positive News Mentions:
  • 1) PL 2) NBIS 3) ARLO 4) JYNT 5) MDB
Sector ETFs With Most Positive Money Flow:
  • 1) XLF 2) XLI 3) XLB 4) SMH 5) XLY
Charts:

Tomorrow's Earnings/Economic Releases of Note; Market Movers

Earnings of Note 
Company/Estimate 

Before the Open:
  • (ABM)/.86
  • (GIII)/.13 
After the Close: 
  • None of note
Economic Releases

8:30 am EST

  • The Change in Non-Farm Payrolls for May is estimated to fall to 125K versus 177K in April.
  • The Unemployment Rate for May is estimated at 4.2% versus 4.2% in April.
  • Average Hourly Earnings MoM for May is estimated to rise +.3% versus a +.2% gain in April. 

3:00 pm EST

  • Consumer Credit for April is estimated to fall to $10.0B versus $10.172B in March. 

Upcoming Splits

  • None of note
Other Potential Market Movers
  • The US Baker Hughes weekly oil rig count, CFTC weekly speculative net positioning reports, FBN Virtual Tech Conference, (JOBY) annual meeting, (GOOG) annual meeting and the (GRMN) annual meeting could also impact global trading tomorrow.
US Equity Market Hours
  • 9:30 am - 4:00 pm EST

Mid-Day Market Internals

NYSE Composite Index:

  • Volume Running +8.6% Above 100-Day Average 
  • Nasdaq/NYSE Volume Ratio 13.2 -1.6
  • 2 Sectors Declining, 9 Sectors Rising
  • 63.5% of Issues Advancing, 34.8% Declining 
  • TRIN/Arms .97 -41.2%
  • Non-Block Money Flow +$118.1M
  • 71 New 52-Week Highs, 11 New Lows
  • 41.8% (+2.5%) of Issues Above 200-day Moving Average
  • Average 14-Day RSI 61.3 +.1
Other:
  • Bloomberg Global Risk-On/Risk-Off Index 68.9 -.44%
  • Bloomberg Cyclicals/Defensives Index 240.4 +.03%
  • Russell 1000: Growth/Value 21,456.4 +.02%
  • CNN Fear & Greed Index 60.0 (GREED) +5.0
  • 1-Day Vix 14.7 +21.0%
  • Vix 17.5 -.9%
  • Total Put/Call .77 -8.3%

Wednesday, June 04, 2025

Thursday Watch

Around X:

  • @ElonMusk
  • @ZeroHedge
  • @MarioNawful  
  • ELON: ALL FEDERAL SPENDING IS TAXATION. "A very important point that I think is important for people to understand is that all federal spending is taxation. Because what the federal government doesn't receive in direct revenue, they make up for in inflation. They just print money. So all federal spending is taxation. Very important principle. 
  • COURT BLOCKS TRUMP FROM GUTTING THE EDUCATION DEPARTMENT. Trump promised to shut it down. His team fired 1,300+ staff. But today, a federal appeals court said: not so fast. Judge’s ruling: You can’t kill a government agency Congress created without Congress. Now, the Education Department has to reinstate everyone Trump tried to axe. Trump’s next stop? The Supreme Court, again. Shutdown dreams… on hold.
  • BREAKING: TRUMP ORDERS INVESTIGATION INTO BIDEN'S MENTAL STATE COVERUP AND AUTOPEN SCANDAL. Trump just directed AG Pam Bondi to investigate whether Biden's aides conspired to deceive Americans about his mental capacity and illegally wielded presidential powers. The investigation will examine:
  • TRUMP: WE HAVE THE HOTTEST, MOST TALKED ABOUT COUNTRY ANYWHERE IN THE WORLD. "Six months ago, we had a nation that was as cold as ice. It was cold. The whole world was laughing at us, and they're not laughing anymore. That I can tell you now because of the people here tonight, we have the hottest, most talked about country anywhere in the world." (video)
  • SENATOR THUNE: FAILURE'S NOT AN OPTION ON THE BILL. "We're a long ways down this track. We've had like 18 different meetings now with the Senate Finance Committee, and we're committed to making a law that will make the lives of the American people better. The wheels are in motion. Failure's not an option. We will get this done one way or the other." (video)
  • GOOGLE JUST SIGNED A DEAL TO BUILD A DATA SUPERCABLE ACROSS THE PACIFIC. First cable ever in the South Pacific. 9,200 miles long, from Chile straight to Australia, with Asia in the crosshairs. It's a $550 million project, and ready by 2027. Chile’s pitch? Become the digital hub for Latin America. Boost TikTok speeds, and link mining giants in Chile & Australia with shared command centers. Oh, and it just happens to drop a massive piece of U.S.-China tech rivalry right into Latin America. 
  • CHINESE HACKERS WERE INSIDE A U.S. TELECOM LONGER THAN ANYONE KNEW. New report says Beijing-backed hackers cracked into a major U.S. telecom in summer 2023, and hid there for 7 months. Apparently corporate investigators found malware deep inside the system, meaning the breach happened earlier than previously believed. 7 months. Sitting there. Watching. Listening. Cyberwar’s not coming, it’s already in here.  
  • @LauraLoomer 
  • @TheTranscript 
  • $NVDA CFO: "GAAP gross margins and non-GAAP gross margins were 60.5% and 61%, respectively. Excluding the $4.5 billion charge, Q1 non-GAAP gross margins would have been 71.3%, slightly above our outlook at the beginning of the quarter. " (graph)
  • @GenFlynn
  • @IanJaeger29
  • @VigilantFox
  • DISTURBING: Trump Taps Palantir to Build a Master Surveillance System—And DOGE Helped Open the Door. President Trump has enlisted Palantir Technologies to build a massive, cross-agency database tracking every American citizen. This isn’t just government overreach—it’s the blueprint for a digital dragnet. Trump’s executive order called for unprecedented data sharing between federal agencies. Now, Palantir’s “Foundry” platform is being embedded in DHS, HHS, and the IRS—giving the government access to everything from your bank accounts and medical records to social media activity and more. It gets worse.
Night Trading 
  • Asian equity indices are -.25% to +.75% on average. 
  • Asia Ex-Japan Investment Grade CDS Index 77.0 -.5 basis point. 
  • China Sovereign CDS 50.0 -.5 basis point.
  • China Iron Ore Spot 94.8 USD/Metric Tonne -.69%.
  • Swiss Franc/Offshore Chinese Renminbi Cross 8.77 +.06%.
  • Bloomberg Emerging Markets Currency Index 37.0 -.13%.
  • Bloomberg Global Risk-On/Risk Off Index 69.4 +.1%.
  • US 10-Year Yield 4.37% +1.0 basis point.
  • Volatility Index(VIX) futures 20.6 +.3%.
  • Euro Stoxx 50 futures +.02%. 
  • S&P 500 futures -.07%. 
  • NASDAQ 100 futures -.13%.
Morning Preview Links

BOTTOM LINE: Asian indices are mostly higher, boosted by consumer discretionary and technology shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher .  The Portfolio is 100% net long heading into the day.

Stocks Modestly Higher into Final Hour on Plunging Long-Term Rates, Rising Fed Rate-Cut Odds, Short-Covering, Tech/Homebuilding Sector Strength

Broad Equity Market Tone:

  • Advance/Decline Line: About Even
  • Sector Performance: Most Sectors Rising
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 17.6 -.6%
  • S&P 500 Intraday % Swing .41 -53.7%
  • Bloomberg Global Risk On/Risk Off Index 69.6 +.7% 
  • Swiss Franc/Offshore Chinese Renminbi Cross 8.77 +.48%
  • Euro/Yen Carry Return Index 183.4 -.4%
  • Emerging Markets Currency Volatility(VXY) 8.31 -.2%
  • CBOE S&P 500 Implied Correlation Index 21.0 -.7% 
  • ISE Sentiment Index 137.0 -9.0
  • Total Put/Call .83 -10.8%
  • NYSE Arms 1.44 +41.2%
  • NYSE Non-Block Money Flow -$81.9M 
Credit Investor Angst:
  • North American Investment Grade CDS Index 55.0 +.05%
  • US Energy High-Yield OAS 400.1 -.14%
  • Bloomberg TRACE # Distressed Bonds Traded 235.0 -3.0
  • European Financial Sector CDS Index 60.9 -.09%
  • Deutsche Bank Subordinated 5Y Credit Default Swap 142.0 -.7%
  • Italian/German 10Y Yld Spread 97.0 basis points unch.
  • Asia Ex-Japan Investment Grade CDS Index 76.9 -1.9%
  • Emerging Market CDS Index 165.6 -1.0%
  • Israel Sovereign CDS 98.3 +1.1%
  • China Corp. High-Yield Bond USD ETF(KHYB) 23.7 +.01%
  • 2-Year SOFR Swap Spread -21.25 basis points +.25 basis point
  • 3M T-Bill Treasury Repo Spread 4.25 basis point +4.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -1.0 +.25 basis point
  • MBS  5/10 Treasury Spread 155.0 unch.
  • Bloomberg CMBS Investment Grade Bbb Average OAS 611.0 -7.0 basis points
  • Avg. Auto ABS OAS 58.0 -1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 37.1 +.1% 
  • US 10-Year T-Note Yield 4.36% -9.0 basis points
  • 3-Month T-Bill Yield 4.34% +2.0 basis points
  • China Iron Ore Spot 95.0 USD/Metric Tonne -.5%
  • Dutch TTF Nat Gas(European benchmark) 33.7 euros/megawatt-hour -.6%
  • Citi US Economic Surprise Index -3.1 -5.1 points
  • Citi Eurozone Economic Surprise Index 24.6 +8.9 points
  • Citi Emerging Markets Economic Surprise Index 33.7 +1.0 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(495 of 500 reporting) +12.4% -.1 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 276.86 +.11:  Growth Rate +9.0% +.1 percentage point, P/E 21.6 unch.
  • S&P 500 Current Year Estimated Profit Margin 13.25% -1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(9 of 10 reporting) +32.4% -.1 percentage point
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 428.75 +.35: Growth Rate +14.8% -9.1 percentage points, P/E 32.7 -.1
  • Bloomberg US Financial Conditions Index .41 +5.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.39 +7.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 7.4 -.2
  • US Yield Curve 48.75 basis points (2s/10s) -1.25 basis points
  • US Atlanta Fed GDPNow Q2 Forecast +4.6% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 40.0% -1.6 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.65% unch.: CPI YoY +2.40% unch.
  • 1-Year TIPS Spread 2.80 -6.0 basis points
  • 10-Year TIPS Spread 2.31 -3.0 basis points
  • Highest target rate probability for July 30th FOMC meeting: 69.6% (-5.7 percentage points) chance of 4.25%-4.5%. Highest target rate probability for Sept. 17th meeting: 56.0%(+.6 percentage point) chance of 4.0%-4.25%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating -141 open in Japan 
  • China A50 Futures: Indicating -69 open in China
  • DAX Futures: Indicating +33 open in Germany
Portfolio:
  • Higher: On gains in my consumer discretionary/tech/industrial sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

Bear Radar

Style Underperformer:

  • Small-Cap Value -.2%
Sector Underperformers:
  • 1) Energy -1.9% 2) Oil Service -1.3% 3) Insurance -1.0%
Stocks Falling on Unusual Volume: 
  • FTK, GGAL, FLS, CRWD, BMA, BBAR, MRUS, GTLS, CLBR, DLTR, ANAB and ASAN
Stocks With Unusual Put Option Activity:
  • 1) SABR 2) ASAN 3) PENN 4) BBWI 5) FBTC
Stocks With Most Negative News Mentions:
  • 1) NEOG 2) ABL 3) NPWR 4) DLTR 5) OBT
Sector ETFs With Most Negative Money Flow:
  • 1) XLF 2) XLB 3) XLP 4) IBB 5) FDN

Bull Radar

Style Outperformer:

  • Large-Cap Growth +.6%
Sector Outperformers:
  • 1) Homebuilding +3.4% 2) Video Gaming +2.1% 3) Semis +1.7%
Stocks Rising on Unusual Volume:
  • APLD, REVG, RDW, GWRE, TSSI, ZLAB, GRRR, ASTS, SBET, RYET, AEHR, RAPP, STM, CHA, PLAY, CDNA, HQY, MP, LQDA, VG, FUTU, LEGN, ERO, POWI, SHG, BKSY, DAVA, ON, INDV, MRVL, KRUS, SERV, CRDO, LASR, MNSO, CRWV, VERA, NBIS, TYRA, LEU, OPFI, ICLR, SQM, THO, LITE, OLLI, CMG, PSN, TIMB, BC, OUST, AMSC, MDB, CLPT, DNLI, SEMR, CELH, BASE and JHX
Stocks With Unusual Call Option Activity:
  • 1) EXC 2) TSLZ 3) ASAN 4) UMAC 5) ON
Stocks With Most Positive News Mentions:
  • 1) YEXT 2) APLD 3) ASTS 4) GWRE 5) SGMT
Sector ETFs With Most Positive Money Flow:
  • 1) MSTY 2) SMH 3) XLK 4) XRT 5) XBI
Charts:

Tomorrow's Earnings/Economic Releases of Note; Market Movers

Earnings of Note 
Company/Estimate 

Before the Open:
  • (BF/B)/.34
  • (CIEN)/.52
  • (CBRL)/.21
  • (TTC)/1.40 
After the Close: 
  • (AVGO)/1.57
  • (DOCU)/.81
  • (GES)/-.69
  • (LULU)/2.58
  • (WOOF)/-.02
  • (RBRK)/-.32
  • (MTN)/10.04
  • (ZUMZ)/-.77
  • (RH)/-.08
  • (VSCO)/.31 
Economic Releases

7:30 am EST

  • Challenger Job Cuts YoY for May. 

8:30 am EST

  • The Trade Balance for April is estimated to shrink to -$66.1B versus -$140.5B in March.
  • Final Non-Farm Productivity/Unit Labor Cost readings for 1Q.
  • Initial Jobless for last week are estimated to fall to 235K versus 240K the prior week.
  • Continuing Claims is estimated to fall to 1910K versus 1919K prior.

Upcoming Splits

  • None of note
Other Potential Market Movers
  • The Fed's Kugler speaking, Fed's Schmid speaking, Fed's Harker speaking, ECB meeting, Atlanta Fed GDPNow Q2 update, weekly EIA nat gas inventory report, Fed's weekly balance sheet report, Deutsche Bank Industrials/Materials Conference, Piper Sandler Exchange/Trading Conference, William Blair Growth Stock Conference, (PYPL) annual meeting, (PLTR) annual meeting, (CRM) annual meeting, (ALAB) annual meeting, (LYFT) annual meeting, (EME) annual meeting, (DLR) annual meeting, (NFLX) annual meeting, (FLUT) annual meeting, (TDW) general meeting, (MYGN) annual meeting, (ASO) annual meeting, (WMT) annual meeting and the Jefferies Healthcare Conference could also impact global trading tomorrow.
US Equity Market Hours
  • 9:30 am - 4:00 pm EST

Mid-Day Market Internals

NYSE Composite Index:

  • Volume Running +.8% Above 100-Day Average 
  • Nasdaq/NYSE Volume Ratio 14.8 +1.9
  • 4 Sectors Declining, 7 Sectors Rising
  • 51.6% of Issues Advancing, 46.5% Declining 
  • TRIN/Arms 1.36 +33.3%
  • Non-Block Money Flow -$.59M
  • 77 New 52-Week Highs, 4 New Lows
  • 41.6% (-.9%) of Issues Above 200-day Moving Average
  • Average 14-Day RSI 62.3 +1.4
Other:
  • Bloomberg Global Risk-On/Risk-Off Index 69.3 +.2%
  • Bloomberg Cyclicals/Defensives Index 239.43 -.02%
  • Russell 1000: Growth/Value 21,359.4 +.25%
  • CNN Fear & Greed Index 55.0 (GREED) -1.0
  • 1-Day Vix 10.9 -9.2%
  • Vix 17.7 +.3%
  • Total Put/Call .84 -9.7%