Style Underperformer:
Sector Underperformers:
- 1) HMOs -1.76% 2) Oil Tankers -1.52% 3) Construction -.07%
Stocks Falling on Unusual Volume:
- NTCT, PAA, CQP, LAKE, BBEP, TK, WHZ, MMP, STE, KING, TOO, OKE, SXL, BPL, SRE, MCEP, DPM, CAPL, TRP, DYN, JNJ, ARLP, QRE, SIG, EXPE, NGL, QRE, AXDX and ENOC
Stocks With Unusual Put Option Activity:
- 1) AMJ 2) CSX 3) WMB 4) PRU 5) FLEX
Stocks With Most Negative News Mentions:
- 1) VMW 2) AIRM 3) ENOC 4) VOXX 5) CI
Charts:
Style Outperformer:
Sector Outperformers:
- 1) Airlines +3.95% 2) Semis +3.53% 3) Homebuilders +3.31%
Stocks Rising on Unusual Volume:
- NLNK, DPZ, ETE, SWKS, JBHT, XIV, AVGO, WWW, AAL, NSM, UAL, DAL, LUV, PAGP, BCRX, PCRX, DIOD, FOSL, AR, SN, JBHT, DE, ALKS, MNTA, TRGP, SEMG, ENTA, CCI, CCL, SCTY, URI, CXO, AR and ROK
Stocks With Unusual Call Option Activity:
- 1) CCE 2) JNJ 3) EXPR 4) ED 5) UUP
Stocks With Most Positive News Mentions:
- 1) DPZ 2) CME 3) T 4) IBM 5) HLF
Charts:
Evening Headlines
Bloomberg:
- Islamic State Seizes Iraq Base Amid Concern for Baghdad. Islamic
State came closer to gaining full control of Iraq’s Anbar province
after it seized a military base to the west of Baghdad that had been one
of the government’s few remaining outposts there. Militants seized the
base, located near the town of Hit and a major highway from Baghdad to
the Syrian border, after heavy fighting with soldiers, according to
Ahmed al-Dulaimi, a Sunni tribal leader. Its capture increases the
threat to Ramadi, Anbar’s capital, and to Iraq’s second-largest dam at
Haditha. The insurgent group has declared a caliphate that stretches
across much of northern Syria and Iraq, prompting the U.S. to launch a
bombing campaign backed by European and Arab allies to halt the advance.
The group’s recent gains
to the west of Baghdad have sparked concern it’s preparing to attack the
capital.
- Hong Kong Police Use Chain Saws to Shrink Democracy Protest Site. Hong
Kong police used chain saws to clear more barricades erected by
pro-democracy demonstrators in the city’s business district, after Chief
Executive Leung Chun-ying signaled he’s losing patience with protesters.
Hundreds of police officers rushed the make-shift barriers blocking
Queensway, a key road heading into Central, removing tents and bamboo
obstacles. Tensions escalated yesterday when truck and cab drivers
sought to tear down barricades built by student protesters near the
city’s business district. Talks seeking to resolve Hong Kong’s worst
political crisis since China regained sovereignty 17 years ago have
broken down, leaving a polarized city facing a third week of
demonstrations.
- Dedicated Ebola Hospitals Sought After Nurse’s Infection. U.S.
and local health officials want to set up dedicated hospitals in each
state for Ebola patients, part of a new emphasis on safety for
health-care workers after a nurse caring for an infected patient in
Dallas tested positive for the virus. The U.S. Centers for Disease Control and Prevention is also reconsidering
its existing infection control protocols and will boost health-worker
training with a series of calls and online seminars, officials said
today.
- Ebola Alarms Spread With Crews, Fliers on Illness Alert. The Ebola virus’s arrival in the
U.S. is stirring anxiety across the airline industry as flight
crews and passengers fret that a fever or upset stomach on board
could be a sign of the deadly disease. False alarms are becoming routine at U.S. airports.
Crews surrounded an Emirates Airline jet in Boston today after fliers
showed flu-like symptoms, three days after a similar rush to isolate a
Delta Air Lines Inc. (DAL) plane in Las Vegas because of an Ebola scare.
“If there’s any vomiting, we’re getting calls about it,” said T.J.
Doyle, medical director of Pittsburgh-based STAT-MD, a
consultant that serves airlines. “It’s not that we weren’t
getting these calls before. It’s just that there’s a heightened
sense because of Ebola.”
- Draghi’s ‘Whatever It Takes’ Plan Faces Trial at EU Court. European
Central Bank President Mario Draghi’s pledge to do “whatever it takes”
with a bond-buying plan to save the euro-area goes on trial before the
European Union’s top judges today. The Court of Justice, the bloc’s highest court, will weigh
whether Draghi’s ECB overstepped its powers in 2012 with the
mechanism to buy the debt of stressed countries if needed. While
Germany’s own top court earlier this year expressed doubts about
the plan’s legality, the EU tribunal’s 15-judge panel is
unlikely to overturn it, according to legal scholars.
- Asian Stock Index Retreats Amid Rout in Global Equities.
Asian stocks fell, with the regional benchmark index heading for a
six-month low, extending a rout in global equities after the Standard
& Poor’s 500 Index capped its biggest three-day loss since 2011. The
MSCI Asia Pacific Index (MXAP) fell 0.6 percent to 135.60 as of 9:04
a.m. in Tokyo before markets in China and Hong Kong open. The gauge
dropped 8.8 percent from its year high in July
through yesterday.
- Too-Big-to-Fail Banks Face Up to $870 Billion Capital Gap. Too
big to fail is likely to prove a
costly epithet for the world’s biggest banks as regulators demand they
increase debt securities to cover losses should they collapse. The
shortfall facing lenders from JPMorgan Chase & Co. (JPM) to HSBC
Holdings Plc could be as much as $870 billion, according to estimates
from AllianceBernstein Ltd., or as little as $237
billion forecast by Barclays Plc.
Wall Street Journal:
- CDC Director Calls for Rethinking Approach to Ebola Infection Control. Obama Administration Shifts Emphasis Toward Focusing on Lapses in Texas Cases. The director of the U.S. Centers for Disease Control and Prevention said
Monday the agency is rethinking its approach to Ebola infection control
after a Dallas nurse became infected with the disease.
CNBC:
Zero Hedge:
Business Insider:
Reuters:
- France faces euro zone peer pressure to tighten spending plans. France
faced intensifying pressure from euro zone peers on Monday to tighten
spending next year amid a growing rift over its plans to flout European
budget rules. The dispute with France over its planned 2015 budget
is a test of new euro zone powers to police public finances and is
complicated by a wider debate about how to use government money to help
the stagnating European economy.
Obama takes on coal with first-ever carbon limits
Read more at http://www.philly.com/philly/news/politics/20130919_ap_0f857b20e0c144a5a1e1b9dddc9f9d72.html#YRThyDOhArykUeYy.9Brazil cuts 2014 GDP growth forecast, keeps fiscal goaFed's Williams: Can't wait too long to raise rates
Telegraph:
- The great Lira revolt has begun in Italy. The biggest single party in the Italian parliament by votes has thrown down
the gauntlet, calling for a euro referendum to end depression and save
democracy, writes Ambrose Evans-Pritchard.
Evening Recommendations
Night Trading
- Asian equity indices are -.50% to -.50% on average.
- Asia Ex-Japan Investment Grade CDS Index 120.75 +1.75 basis points.
- Asia Pacific Sovereign CDS Index 73.0 +1.75 basis points.
- NASDAQ 100 futures +.49%.
Morning Preview Links
Earnings of Note
Company/Estimate
Economic Releases
7:30 am EST
- The NFIB Small Business Optimism Index for September is estimated to fall to 95.9 versus 96.1in August.
Upcoming Splits
Other Potential Market Movers
- The China CPI, UK inflation data, German ZEW Index and the US weekly retail sales reports could also impact trading today.
BOTTOM LINE: Asian
indices are mostly higher, boosted by consumer and commodity shares
in the region. I expect US stocks to open modestly higher and to
weaken into the afternoon, finishing mixed. The Portfolio is 25% net
long heading into the day.
Broad Equity Market Tone:
- Advance/Decline Line: Slightly Higher
- Sector Performance: Mixed
- Market Leading Stocks: Performing In Line
Equity Investor Angst:
- Volatility(VIX) 21.11 -.61%
- Euro/Yen Carry Return Index 142.13 +.17%
- Emerging Markets Currency Volatility(VXY) 8.29 +.85%
- S&P 500 Implied Correlation 61.22 -4.31%
- ISE Sentiment Index 58.0 -15.94%
- Total Put/Call 1.47 +21.49%
Credit Investor Angst:
- North American Investment Grade CDS Index 71.38 -.65%
- European Financial Sector CDS Index 68.79 -.89%
- Western Europe Sovereign Debt CDS Index 26.51 +1.65%
- Asia Pacific Sovereign Debt CDS Index 72.91 +2.42%
- Emerging Market CDS Index 267.05 +.56%
- China Blended Corporate Spread Index 328.69 unch.
- 2-Year Swap Spread 26.75 +.5 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -9.50 unch.
Economic Gauges:
- 3-Month T-Bill Yield .01% unch.
- Yield Curve 185.0 -1.0 basis point
- China Import Iron Ore Spot $84.17/Metric Tonne +4.9%
- Citi US Economic Surprise Index 19.10 unch.
- Citi Emerging Markets Economic Surprise Index -24.80 +2.2 points
- 10-Year TIPS Spread 1.96 -1 basis point
Overseas Futures:
- Nikkei Futures: Indicating -290 open in Japan
- DAX Futures: Indicating -3 open in Germany
Portfolio:
- Slightly Lower: On losses in my retail/biotech sector longs and emerging markets shorts
- Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
- Market Exposure: Moved to 50% Net Long
Style Underperformer:
Sector Underperformers:
- 1) Oil Tankers -3.05% 2) Alt Energy -1.81% 3) Disk Drives -1.15%
Stocks Falling on Unusual Volume:
- ABG, NTCT, LAD, CMRE, SFLY, PBFX, APC, ETE, LUX, TRGP, MCHP, CXO, MEOH, NGLS, KN, RCL, BBEP, HDS, LYB, PAG, HAL, PHX, SNHY, CUK, LINE, CODE, PANW, RES, DOW, CBM, OAS, DAL, EOG, TSLA, MWT, NOG, HAL, SPN, SAVE, PTEN, DRIV, AN, FANG, QEP, GBX, LNCO, EGN, CJES, SN, CRK, PAG, SAH, SFLY and BAS
Stocks With Unusual Put Option Activity:
- 1) AMTD 2) XLK 3) XLE 4) JNPR 5) HON
Stocks With Most Negative News Mentions:
- 1) DOW 2) LAD 3) YELP 4) JCI 5) DOV
Charts:
Style Outperformer:
Sector Outperformers:
- 1) Gold & Silver +3.98% 2) Steel +3.92% 3) Road & Rail +.92%
Stocks Rising on Unusual Volume:
- ATLS, CSX, APL, ALNY, LAKE and AEL
Stocks With Unusual Call Option Activity:
- 1) DAN 2) GPOR 3) ATVI 4) PVA 5) SO
Stocks With Most Positive News Mentions:
- 1) WFC 2) LMT 3) AAPL 4) AIG 5) MSFT
Charts: