Market Week in Review

• S&P 500 1,949.44 +1.35%*

 The Weekly Wrap by Briefing.com.

*5-Day Change

Weekly Scoreboard*

Indices

• S&P 500 1,949.44 +1.35%

• DJIA 16,924.24 +1.24%

• NASDAQ 4,321.39 +1.86%

• Russell 2000 1,165.21 +2.71%

• S&P 500 High Beta 32.82 +2.98%

• Wilshire 5000 20,402.50 +1.54%

• Russell 1000 Growth 906.03 +1.26%

• Russell 1000 Value 985.10 +1.61%

• S&P 500 Consumer Staples 463.23 +.31%

• Morgan Stanley Cyclical 1,589.18 +2.39%

• Morgan Stanley Technology 947.69 +1.08%

• Transports 8,209.06 +1.30%

• Utilities 550.01 +.93%

• Bloomberg European Bank/Financial Services 113.54 +2.21%

• MSCI Emerging Markets 43.29 +1.68%

• HFRX Equity Hedge 1,162.59 +.16%
• HFRX Equity Market Neutral 957.04 -.54%

Sentiment/Internals

• NYSE Cumulative A/D Line 225,482 +1.10%

• Bloomberg New Highs-Lows Index 696 +278

• Bloomberg Crude Oil % Bulls 20.59 -38.22%

• CFTC Oil Net Speculative Position 416,585 -1.55%

• CFTC Oil Total Open Interest 1,664,043 +1.74%

• Total Put/Call .92 +2.22%

• OEX Put/Call 1.04 -44.09%

• ISE Sentiment 132.0 +32.0%

• NYSE Arms 1.12 +24.44%

• Volatility(VIX) 10.73 -5.88%

• S&P 500 Implied Correlation 48.25 -12.65%

• G7 Currency Volatility (VXY) 5.60 -5.41%

• Emerging Markets Currency Volatility (EM-VXY) 6.67 -4.51%

• Smart Money Flow Index 11,235.06 +1.50%

• ICI Money Mkt Mutual Fund Assets $2.580 Trillion -.28%
• ICI US Equity Weekly Net New Cash Flow -$2.596 Billion

• AAII % Bulls 39.5 +8.4%
• AAII % Bears 22.2 -4.2%

Futures Spot Prices

• CRB Index 305.25 -.08%

• Crude Oil 102.66 -.26%

• Reformulated Gasoline 293.90 -1.21%

• Natural Gas 4.71 +3.40%

• Heating Oil 287.12 -.60%

• Gold 1,252.50 +.16%

• Bloomberg Base Metals Index 190.78 -2.98%

• Copper 305.10 -2.71%

• US No. 1 Heavy Melt Scrap Steel 363.67 USD/Ton unch.

• China Iron Ore Spot 94.50 USD/Ton +2.94%

• Lumber 306.50 -1.45%

• UBS-Bloomberg Agriculture 1,475.48 -.96%

Economy

• ECRI Weekly Leading Economic Index Growth Rate 5.3% +30 basis points

• Philly Fed ADS Real-Time Business Conditions Index -.0436 +1.13%

• S&P 500 Blended Forward 12 Months Mean EPS Estimate 124.17 +.17%

• Citi US Economic Surprise Index -12.90 -8.1 points

• Citi Emerging Markets Economic Surprise Index -16.50 +3.9 points

• Fed Fund Futures imply 38.0% chance of no change, 62.0% chance of 25 basis point cut on 6/18

• US Dollar Index 80.41 +.02%

• Euro/Yen Carry Return Index 145.94 +.77%

• Yield Curve 219.0 +9 basis points

• 10-Year US Treasury Yield 2.59% +11 basis points

• Federal Reserve's Balance Sheet $4.288 Trillion +.20%

• U.S. Sovereign Debt Credit Default Swap 16.17 -3.51%

• Illinois Municipal Debt Credit Default Swap 148.0 -1.36%

• Western Europe Sovereign Debt Credit Default Swap Index 30.53 -12.38%

• Asia Pacific Sovereign Debt Credit Default Swap Index 75.02 -4.79%
  

• Emerging Markets Sovereign Debt CDS Index 189.47 -9.14%
  

• Israel Sovereign Debt Credit Default Swap 78.01 -2.49%

• Russia Sovereign Debt Credit Default Swap 169.02 -12.58%

• China Blended Corporate Spread Index 315.24 -4.18%

• 10-Year TIPS Spread 2.19% -2.0 basis points

• TED Spread 19.75 unch.

• 2-Year Swap Spread 14.25 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -8.5 +.25 basis point

• N. America Investment Grade Credit Default Swap Index 57.50 -7.65%
  

• European Financial Sector Credit Default Swap Index 59.90 -17.71%
  

• Emerging Markets Credit Default Swap Index 234.97 -4.87%
  

• CMBS AAA Super Senior 10-Year Treasury Spread  to Swaps 86.0 unch.

• M1 Money Supply $2.772 Trillion -.06%

• Commercial Paper Outstanding 1,038.80 +1.10%

• 4-Week Moving Average of Jobless Claims 310,250 -1,250

• Continuing Claims Unemployment Rate 2.0% unch.

• Average 30-Year Mortgage Rate 4.14% +2 basis points

• Weekly Mortgage Applications 350.80 -3.15%

• Bloomberg Consumer Comfort 35.1 +2.0 points

• Weekly Retail Sales +3.70% -10 basis points

• Nationwide Gas $3.66/gallon unch.

• Baltic Dry Index 977.0 +4.6%

• China (Export) Containerized Freight Index 1,109.03 +.50%

• Oil Tanker Rate(Arabian Gulf to U.S. Gulf Coast) 22.50 -10.0%

• Rail Freight Carloads 242,092 -10.15%

Best Performing Style

• Small-Cap Value +2.7%

Worst Performing Style

• Large-Cap Growth +1.3%

Leading Sectors

• Hospitals +5.7%

• Coal +5.2%

• Airlines +4.0%

• Defense +3.2%

• Insurance +3.0%

Lagging Sectors

• Drugs +.2% 

• Alternative Energy -.3%

• Tobacco -.5%

• Telecom -1.0%

• Gaming -2.9%

Weekly High-Volume Stock Gainers (20)

• PL, NPSP, BRLI, IDCC, ENSG, BRCM, MNKD, BIG, GIII, LCI, CIEN, HCT, OVTI, NYLD, VRNT, TSLX, AMSG, MFRM, LNG and RLD

Weekly High-Volume Stock Losers (16)

• CYBX, WMK, AEGN, RENT, PVH, TIBX, VRA, RTRX, KKD, MTZ, BNNY, EBIX, CLVS, PBYI, RCAP and BLOX

Weekly Charts
ETFs

• High-Volume Gainers

• High-Volume Losers

Stocks

• High-Volume Gainers

• High-Volume Losers

*5-Day Change

Stocks Rising into Final Hour on Central Bank Hopes, Less Eurozone/Emerging Markets Debt Angst, Short-Covering, Construction/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 11.06 -5.31%

• Euro/Yen Carry Return Index 146.05 +.01%

• Emerging Markets Currency Volatility(VXY) 6.56 -5.48%

• S&P 500 Implied Correlation 49.08 -4.27%

• ISE Sentiment Index 134.0 +42.55%

• Total Put/Call .92 +24.32%

• NYSE Arms 1.14 +7.54% 

Credit Investor Angst:

• North American Investment Grade CDS Index 57.14 -4.62%

• European Financial Sector CDS Index 59.91 -11.15%

• Western Europe Sovereign Debt CDS Index 31.50 -5.58%

• Asia Pacific Sovereign Debt CDS Index 76.46 -2.57%

• Emerging Market CDS Index 235.11 -5.32%

• China Blended Corporate Spread Index 315.24 -.58%

• 2-Year Swap Spread 14.25 -.25 basis point

• TED Spread 20.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -8.50 +3.0 basis points

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 219.0 -1.0 basis point

• China Import Iron Ore Spot $94.50/Metric Tonne +.21%

• Citi US Economic Surprise Index -12.90 +1.2 points

• Citi Emerging Markets Economic Surprise Index -16.50 +3.2 points

• 10-Year TIPS Spread 2.19 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +103 open in Japan

• DAX Futures: Indicating +10 open in Germany

Portfolio: 

• Slightly Higher: On gains in my biotech/medical/retail/tech sector longs

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

• Market Exposure: Moved to 75% Net Long

Today's Headlines

Bloomberg:

• Putin Meets Obama, Poroshenko Amid Talk of Cease-Fire. Russian President Vladimir Putin met with U.S. President Barack Obama and held his first talks with Ukraine’s new leader, Petro Poroshenko, as France used D-Day commemorations to seek a breakthrough in the Ukraine crisis. Obama and Putin had an “informal conversation” in northern France today, during which the U.S. leader said that to defuse tensions Russia must recognize Poroshenko as Ukraine’s head of government and end support for rebels, Ben Rhodes, deputy White House national security adviser, said. 

• China’s Focus on Growth Goal Risks Reform Delay, World Bank Says. China may fail to implement changes needed to put its economy on a more sustainable path as weaker expansion pushes the government to roll out stronger supportive policies to meet its growth target, the World Bank said. “The government should have sufficient room for those policies, but they may perpetuate China’s traditional growth model that relies on government-led investment fueled by credit expansion,” the Washington-based lender said in a report today. “A policy focus on meeting growth targets could distract from pushing through the structural reforms intended to put long-term growth on a more stable footing.”

• Chinese Banks ‘Not as Cheap as They Look,’ Templeton Says. Valuations of Chinese banks at near-record lows are not as “cheap as they look” because of an increase in non-performing loans and risks of write-offs, according to Templeton Equity Group’s Norman Boersma. 

• European Stocks Gain as U.S. Jobs Report Beats Forecasts. European stocks advanced to a six-year high after a report showed the U.S. economy created more jobs last month than forecast. Commerzbank AG climbed 4.1 percent after the lender’s chief executive officer predicted that the European Central Bank would find no problems during an audit. Italian and Irish banks dragged the Stoxx Europe 600 Index higher as yields on the two countries’ bonds fell to the lowest level since the introduction of the euro. Banca Monte dei Paschi di Siena SpA retreated 2 percent after saying it will offer new shares to investors at a 35.5 percent discount in an attempt to rebuild capital. The Stoxx 600 rose 0.7 percent to 347.30 at the close of trading. The benchmark has gained 0.9 percent this week as the ECB lowered interest rates and unveiled a package of cheap loans for the euro zone’s banks. 

• Copper Futures Set for Biggest Weekly Loss Since March. Copper has dropped 3.8 percent in four days after the inquiry was reported, extending a decline this year amid concern that slowing global economic growth would crimp demand. China’s finance deals use commodities from iron-ore to soybeans to obtain credit and may tie up as much 1 million metric tons of copper, Goldman Sachs Group Inc. estimated in a March report. “Worries that the slowdown in demand from Chinese financing deals after recent inventory fears in Qingdao Port are still the driver here,” Steven Scacalossi, head of global metals sales at TD Securities in Toronto, said in an e-mailed report. “Momentum sellers are joining the fray.” Copper futures for July delivery fell 1.3 percent to settle at $3.051 a pound at 1:13 p.m. on the Comex in New York. On the London Metal Exchange, copper for delivery in three months slid 1.4 percent to $6,688 a ton ($3.03 a pound).

• A Hawk Stirs as Weber’s UBS Sees U.S. Inflation Set to Take Off. Leave it to Axel Weber to sound the inflation alarm while most of the world is focused on the threat of deflation. A stalwart advocate of tight money at the European Central Bank, where he helped to set interest rates from 2004 to 2011, Weber says U.S. price gains and the subsequent response of the Federal Reserve will outpace investor expectations. “I see more potential ahead for nervousness in the market,” Weber, chairman of UBS AG since 2012, told a London conference of the Institute of International Finance yesterday. “The whole driver is going to be the inflation rate by the end of the year in the U.S.”

• Gambler Linked to Icahn-Mickelson Faced $15 Million Loss. William “Billy” Walters, the Las Vegas gambler who U.S. authorities are said to be investigating in connection with possible insider trading in 2011 and 2012, was at the time facing a multimillion-dollar debt to the government over a soured golf-course deal, according to court records.

• Uber Sets Valuation Record of $17 Billion in New Funding. Uber Technologies Inc. is creating a new category of hot startup: the $17 billion club. The San Francisco-based transportation service, which lets people order private town cars and other vehicles from their smartphone, said today that it has raised $1.2 billion in a new financing led by Fidelity Investments. The funding positions the company at the front of a pack of Internet startups, with a valuation of about $17 billion, up from $3.5 billion in a financing last year.

Fox News:

• Price of coming forward: 37 VA whistle-blowers claim retaliation. Dozens of Veterans Affairs workers who have come forward with stories of mismanagement and patient abuse say they have faced retaliation within the scandal-scarred agency, according to federal investigators.

• Photos purportedly show frantic, dangerous search for Bergdahl in 2009. (pics) Newly obtained photographs purportedly depict the frantic search for Sgt. Bowe Bergdahl in the initial days after he disappeared from his post in eastern Afghanistan. The images were provided to Fox 5 DC by a soldier from Bergdahl's Blackfoot Company who was at the base the day he disappeared. The soldier, like several others who have spoken to the media since the Obama administration announced Bergdahl had been freed in exchange for five Taliban leaders, claimed Bergdahl had deserted. The images purportedly show the lengths to which his fellow soldiers went to find him.

CNBC:

• Apple(AAPL) iWatch to launch in October: Report.

• West Coast dockworker talks a tense time. (video)

ZeroHedge:

• Uber Now Has A Higher Valuation Than Seagate, Chipotle, AutoZone, Alcoa And Half The S&P 500.

• No More Risk: VIX Plunges Below 11 For The First Time In Years. (graph)

• You Know It's A Top When... (graph)

• About Those Forecasts Of Eternally Rising Corporate Profits... (graph)

• No, The Surge In Treasurys Wasn't Due To "Pension Fund Buying".

• What Quality Jobs? Over Half Of May Payroll Growth Is In Education, Leisure And Temp Help Jobs. (graph)

• How Much More Upside Is There? (graph)

Business Insider:

• Taliban Commander Released From Gitmo Has Already Vowed To Continue Fighting Americans.

Reuters:

• Exclusive: As bank fines soar, U.S. threatened $16 billion BNP penalty. U.S. authorities negotiating with BNP Paribas over alleged sanctions violations at one point suggested that France's biggest bank pay a penalty as high as $16 billion, according to people familiar with the matter. 

• Mexico central bank unexpectedly cuts rate to spur weak economy. Mexico's central bank unexpectedly slashed interest rates to a record low on Friday, saying a sluggish economy gave it room for a one-off cut to spur growth without fanning inflation pressures. 

• Ukraine must stop "punitive" military operation - Putin.

• U.S. Department Stores Need 2% Growth to Protect Market Share.

Financial Times:

• Fed’s easy money has disconnected markets from the real economy. Junk bond spreads near all-time lows and stocks at record highs.

Telegraph:

• Interest rates are entering the twilight zone. Central banks are only storing up problems for the future by sticking to printing money.

Spiegel:

• Austrian Central Bank Warns of Euro Area Recession on Russia. Euro area may contract by as much as 2.3% through 2015 if conflict with Russia escalates, citing Austrian central bank calculations. "High impact scenario" in calculations assumes rise in energy prices, no gas deliveries for 1.5 years. 

Bild:

• Weidmann Says 'Absurd' to Herald Further ECB Measures. ECB Governing Council member Jens Weidmann says it's "absurd to immediately herald the next round" of easing measures, citing an interview. Says "now we'll have to wait and see the effects" of yesterday's ECB decisions. Says teh ECB must not become the bad bank of the euro area. The Governing Council "wrestled hard" before deciding on the latest package of measures, he said.

Kiev Post:

• Donetsk Militants Hold More Than 200 People Hostage. More than 200 people, who are citizens of various countries, are currently held by unlawful armed groups in Donetsk region, says Serhiy Taruta, the head of Donetsk Regional Administration.

Bear Radar

Style Underperformer:

• Large-Cap Growth +.24%

Sector Underperformers:

• 1) Gaming -.63% 2) REITs -.50% 3) HMOs -.32%

Stocks Falling on Unusual Volume:

• LG, NBCB, DMND, VTNR, HTZ, HPTX, MVC, SHOS, BMRN, SNN, DB, LORL, NSTG, BRLI, THO, VRA, EBAY, ZUMZ, UL, HEP, NYLD, SAP, MPLX and KPTI

Stocks With Unusual Put Option Activity:

• 1) JNPR 2) FFIV 3) EBIX 4) NSM 5) QCOM
  

Stocks With Most Negative News Mentions:

• 1) GM 2) CCL 3) TSN 4) BTU 5) RLY
  

Charts:

• ETFs Falling on Unusual Volume

• Stocks Falling on Unusual Volume

Bull Radar

Style Outperformer:

• Small-Cap Growth +1.12%

Sector Outperformers:

• 1) Steel +1.59% 2) Construction +1.49% 3) Airlines +1.43%
  

Stocks Rising on Unusual Volume:

• GWPH, PAY, ANGI, MW, VNDA, ETFC, SAIC and TRN

Stocks With Unusual Call Option Activity:

• 1) TPH 2) PAY 3) HTZ 4) DG 5) PVH

Stocks With Most Positive News Mentions:

• 1) UEPS 2) AGII 3) CMI 4) DFS 5) MS
  

Charts:

• ETFs Rising on Unusual Volume 

• Stocks Rising on Unusual Volume