Morning Market Internals

NYSE Composite Index:

• Volume Running +9.3% Above 100-Day Average
• 4 Sectors Rising, 6 Sectors Declining
• 72.8% of Issues Advancing, 23.7% Declining
• 44 New 52-Week Highs, 7 New Lows
• 56.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 46.4%
• Vix 13.6 -2.9%
• Total Put/Call 1.02 -12.1%
• TRIN/Arms .97 -22.4%

Friday Watch

Night Trading 

• Asian equity indices are -.50% to unch. on average.
• Asia Ex-Japan Investment Grade CDS Index 137.25 -1.0 basis point. 
• Asia Pacific Sovereign CDS Index 56.50 +.25 basis point. 
• Bloomberg Emerging Markets Currency Index 72.93 +.05%. 
• S&P 500 futures +.08%. 
• NASDAQ 100 futures -.06%.

Morning Preview Links

Earnings of Note
Company/Estimate 

• (AAL)/1.19
• (AN)/.93
• (CAT)/.68
• (GE)/.19
• (GNTX)/.28
• (HON)/1.50
• (IPG)/.01
• (KMB)/1.51
• (LYB)/2.28
• (MCD)/1.16
• (SHOO)/.33
• (STI)/.75 

Economic Releases 
9:45 am EST

• The Preliminary Markit US Manufacturing PMI for April is estimated to rise to 52.0 versus 51.5 in March.

Upcoming Splits 

• None of note

Other Potential Market Movers

• The Eurozone Manufacturing PMI/GDP/CPI reports and the (NE) annual meeting could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by industrial 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 25% net long heading into the day.

Stocks Falling into Afternoon on Emerging Markets Debt Angst, Oil decline, Earnings Outlook Worries, Gaming/Airline Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Most Sectors Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 13.94 +4.97%

• Euro/Yen Carry Return Index 129.28 -.30%

• Emerging Markets Currency Volatility(VXY) 10.65 -.56%

• S&P 500 Implied Correlation 55.57 +.23%

• ISE Sentiment Index 70.0 -15.66%

• Total Put/Call 1.06 +21.84%

• NYSE Arms 1.14 +40.75% 

Credit Investor Angst:

• North American Investment Grade CDS Index 73.57 +.84%
  

• America Energy Sector High-Yield CDS Index 1,014.0 -3.82%

• European Financial Sector CDS Index 81.38 -5.92%

• Western Europe Sovereign Debt CDS Index 26.43 -3.24%

• Asia Pacific Sovereign Debt CDS Index 55.60 -1.82%

• Emerging Market CDS Index 281.73 +3.06%
  

• iBoxx Offshore RMB China Corporate High Yield Index 127.16 -.16%

• 2-Year Swap Spread 13.75 -.25 basis point
  

• TED Spread 41.0 -1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -23.0 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.91 -.65%
• 3-Month T-Bill Yield .23% +1.0 basis point
  

• Yield Curve 106.0 +2.0 basis points
  

• China Import Iron Ore Spot $70.46/Metric Tonne +8.78%

• Citi US Economic Surprise Index -22.50 -.7 point

• Citi Eurozone Economic Surprise Index -13.70 +.8 point

• Citi Emerging Markets Economic Surprise Index 15.0 -.3 point

• 10-Year TIPS Spread 1.64% unch.
  
• 19.6% chance of Fed rate hike at June 15 meeting, 33.8% chance at July 27 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -74 open in Japan 
• China A50 Futures: Indicating -48 open in China

• DAX Futures: Indicating +1 open in Germany

Portfolio: 

• Higher: On gains in my biotech sector longs, index hedges and emerging markets shorts
  

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my (EEM) short

• Market Exposure: Moved to 25% Net Long

Bear Radar

Style Underperformer:

• Mid-Cap Value -.7%

Sector Underperformers:

• 1) Gaming -5.8% 2) Utilities -2.5% 3) Airlines -2.4%

Stocks Falling on Unusual Volume:

• NGVC, TBI, SRPT, MLNX, XON, LAD, WERN, UAL, EFII, ADS, LVS, YUM, MAT, XBIT, LYTS, WUBA, KELYA, SYNT, MAN, BHE, IMPV, DCUB, COL, KO, SYT, KFRC, TRV, CRR, EFII  and DAN

Stocks With Unusual Put Option Activity:

• 1) CPB 2) EWJ 3) XLP 4) UAL 5) SNDK

Stocks With Most Negative News Mentions:

• 1) LVS 2) SRPT 3) WERN 4) TBI 5) PBR

Charts:

• ETFs Falling on Unusual Volume
• Stocks Falling on Unusual Volume

Bull Radar

Style Outperformer: 

• Small-Cap Growth -.2%

Sector Outperformers:

• 1) Road & Rail +2.2% 2) Biotech +1.8% 3) Gold & Silver +1.7% 

Stocks Rising on Unusual Volume: 

• CEQP, PTC, VIAB, URI, NOW, TSCO, RJF, N, FFIV, KCG, RLYP, NOW, MDSO, UTEK, UA, N, OLN, JCI and CTXS

Stocks With Unusual Call Option Activity: 

• 1) MPC 2) SO 3) XON 4) NOW 5) SRPT

Stocks With Most Positive News Mentions: 

• 1) CTXS 2) TSCO 3) UA 4) VIA/B 5) SWK

Charts:

• ETFs Rising on Unusual Volume
• Stocks Rising on Unusual Volume

Morning Market Internals

NYSE Composite Index:

• Volume Running +16.0% Above 100-Day Average
• 3 Sectors Rising, 7 Sectors Declining
• 54.9% of Issues Advancing, 41.7% Declining
• 58 New 52-Week Highs, 6 New Lows
• 58.5% of Issues Above 200-day Moving Average
• Average 14-Day RSI 48.6%
• Vix 13.6 +2.7%
• Total Put/Call .75 +22.9%
• TRIN/Arms 1.4 +67.3%