Bull Radar

Style Outperformer:

• Small-Cap Growth +.9%

Sector Outperformers:

• 1) Oil Service +2.3% 2) Steel +1.9% 3) Biotech +1.6%

Stocks Rising on Unusual Volume:

• LJPC, GOGO, DGI, BID, ENB, AMWD, IBP, TELL, JKS, OLED, CSII, BWR, AWI, CBPX, AAOI, VSAR, VRTU, SQ, SGMS, BAS, JWN, RNG, PGNX, SSP, NCMI, LGND, TGNA, HCLP and BNFT

Stocks With Unusual Call Option Activity:

• 1) PAH 2) PAH 3) HCA 4) OLED 5) LEN

Stocks With Most Positive News Mentions:

• 1) RLGT 2) ILMN 3) FL 4) CEMP 5) VRX

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +20.0% Above 100-Day Average
• 5 Sectors Rising, 5 Sectors Declining
• 62.3% of Issues Advancing, 33.6% Declining
• 114 New 52-Week Highs, 12 New Lows
• 61.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 41.6%
• Vix 11.7 +2.2%
• Total Put/Call .75 -9.64%
• TRIN/Arms .73 -56.9%

Monday Watch

Today's Headlines

Bloomberg:

• U.K.'s May Said to Be Ready for Lords to Rewrite Brexit Bill. U.K. Prime Minister Theresa May’s government is setting aside time for a Parliamentary battle to overturn changes she fears could be made to her draft Brexit law when it’s debated in the House of Lords this week. May and her team demand that unelected legislators in the upper house of Parliament not rewrite the 137-word European Union withdrawal bill while scrutinizing it. The premier needs Parliament to approve the law so she can start the formal Brexit process by invoking Article 50 of the EU treaty by the end of March.

• China to Allow More Listings on Its Stock Market. (video)

• Deutsche Bank Cuts 2016 Bonus Pool by Almost 80%, FAS Reports. Deutsche Bank AG cut its bonus pool for 2016 by almost 80 percent, Frankfurter Allgemeine Sonntagszeitung reported, a figure unmatched in the bank’s recent history as it tries to counteract the impact of low interest rates and legal expenses. Germany’s largest lender is reducing the payments with an eye toward shareholders and is aware it will be “frustrating” for employees, Chief Administrative Officer Karl von Rohr told the German Sunday newspaper. The measures will affect about a quarter of the 100,000 staff. Some workers in key positions -- about 5,000 in all -- will get a special long-term incentive tied to the bank’s performance and paid out after as long as six years, von Rohr said.

• Asian Stocks Drop, Yen Advances Before Trump Speech. The MSCI Asia Pacific Index slipped 0.4 percent, after advancing 0.5 percent last week. Japan’s Topix dropped 0.9 percent, retreating for a third day. The S&P/ASX 200 Index fell 0.3 percent in Sydney while the S&P/NZX 50 rose 0.1 percent.

Wall Street Journal: 

• GOP’s New Plan to Repeal Obamacare: Dare Fellow Republicans to Block Effort. GOP lawmakers gamble that setting bill in motion to strike Affordable Care Act will help break through intraparty disagreements.

• Facing Criticism, Drug Makers Keep Lid On Price Increases. Pharmaceutical companies held most January list-price increases to under 10%, although the median boost was little-changed from 2016.

• Bond Market Is Flashing Warning Signal on Trump Reflation Trade. Rising bond market seen indicating that valuations of riskier assets may be stretched.

• Populist Energy Threatens to Roil Democratic Party as Tom Perez Takes Helm. Activists threaten primary challenges to elected Democrats seen as not sufficiently attuned to liberal base.

• Egyptian Christians Fearing Terror Flee Sinai for Fourth Day. More than 100 families leave el-Arish after series of killings.

Fox News:

• Spicer checks WH staffers' phones for leaks, vows more searches coming. (video)

CNBC:

• Hedge fund hate: More cash likely to flow out again this year. (video)

• Appealing to millenials, Las Vegas gets a new e-sports arena.

Zero Hedge:

• "It Was A Pretty Disturbing Briefing”: Why State Governors Suddenly Got Cold Feet About Obamacare Repeal.

• Majority Finds Media Coverage Of Trump Is "Too Critical, Exaggerated": WSJ/NBC Poll.

• America's Border Patrol Budget: Spot The Obama Difference. (graph)

• #DemExit: Perez Vote Sparks Progressive Panic Within Divided Democratic Party.

• "There Must Not Be A Bail In": Germany Vows "No Debt Relief For Greece".

• Iran Holds Massive Naval Drill Over 2 Million Sq. Kilometer Area.

• Pound Tumbles On Report Scotland May Hold Second Independence Referendum. (graph)

• The European Debt Bomb Fuse Is Lit! Target2 Imbalances Hit Crisis Levels. (graph)

• Frexit Fears Mount As European 'VIX' Spike Signals No 'Pre-Brexit Complacency'. (graph)

• Gundlach: Ignore Stocks, "There Is A Stealth Flight To Safety Going On". (graph)

• Intellectual Intolerance - Stunning Speech From Stanford University Provost Exposes "The Threat From Within".

• Is The US Restaurant Recession Becoming Structural? (video)

• Hillary Clinton Calls For 'Resistance': "We Need To Stay Engaged... I'll Be With You Every Step Of The Way". (video)

• Vehicle Plows Into New Orleans Mardi Gras Parade, Injuring 28; Driver In Custody. (video)

• America's Fentanyl Crisis "Is Surging, With No End In Sight".

Telegraph:

• The anti-EU revolt is fast gaining impetus.

Night Trading

• Asian indices are -.5% to +.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 95.5 unch.

• Asia Pacific Sovereign CDS Index 25.25 unch.

• Bloomberg Emerging Markets Currency Index 71.58 +.04%.

• S&P 500 futures +.07%.

• NASDAQ 100 futures +.07%.

Morning Preview Links

Earnings of Note

Company/Estimate

• (AMT)/1.34

• (JKS)/.52

• (BID)/1.17

• (ESV)/.06

• (HTZ)/-.47

• (PCLN)/14.17

• (THC)/.22

• (WDAY)/-.01 

Economic Releases 
8:30 am EST

• Preliminary Durable Goods Orders for January are estimated to rise +1.6% versus a -.5% decline in December. 

• Durables Ex Transports for January are estimated to rise +.5% versus a +.5% gain in December.

• Cap Goods Orders Non-Defense Ex-Air for January is estimated to rise +.5% versus a +.7% gain in December.  

10:00 am EST

• Pending Home Sales MoM for January are estimated to rise +1.0% versus a +1.6% gain in December.

10:30 am EST

• Dallas Fed Manufacturing Activity for February is estimated to rise to 19.4 versus 22.1 in January.

Upcoming Splits

• None of note

Other Potential Market Movers

• The Eurozone Industrial Production report, Eurozone Consumer Confidence report, German Retail Sales report, Morgan Stanley Tech/Media/Telecom conference, Mobile World Congress and the JMP Securities Tech conference could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by financial and industrial shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 75% net long heading into the week.

Weekly Outlook

• Wall St. Week Ahead by Reuters.

• Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week mixed as oil gains, economic optimism and tax reform hopes offset profit-taking, European/Emerging Markets/US High-Yield debt angst and yen strength. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 75% net long heading into the week.

Today's Headlines

Bloomberg:

• Trump Administration Makes Its First Move to Build Border Wall. President Donald Trump’s administration is soliciting ideas from contractors on how to build its promised wall between the U.S. and Mexico, a first tangible step toward delivering on the president’s signature campaign promise to curb unauthorized immigration. U.S. Customs and Border Protection issued a preliminary request for proposals Friday, saying it plans to release a formal solicitation around March 6 “for the design and build of several prototype wall structures in the vicinity of the United States border with Mexico.”

• Retailers Push Alternatives in a Bid to Kill Border-Adjusted Tax. U.S. retailers are working with lawmakers in the House and Senate to craft alternatives to a proposed tax on imported goods that they say will raise prices for consumers. “We’re in the process of working with the Hill to give a couple of different alternatives to what we think would be a regressive tax,” J.C. Penney Co. Chief Executive Officer Marvin Ellison said Friday in an interview.

• Americans Haven't Been This Optimistic About the Job Market in Over 30 Years. (graph)

• Loeb Embraces Trump ‘Paradigm Shift,’ Says Stocks Not Overvalued.

• Tech Companies Join Challenge on Transgender Bathroom Rules.

Wall Street Journal: 

• Islamic State Drones Terrorize Iraqi Forces as Mosul Battle Rages. Militant group uses increasingly sophisticated drone technology to target troops, civilians. 

• Suspect in Kim Jong Nam Killing Says Oil ‘Prank’ Earned Her $90. Siti Aisyah sticks to claim that she was playing a prank as part of a reality show.

• Transgender Wrestler Wins Girls State Title as Texas Rule Draws Criticism. Rule that transgender wrestler Mack Beggs must compete against girls frustrates some parents, other wrestlers.

Barron's:

• Had bullish commentary on (RIG), (GPN), (AXTA) and (TV).

• Had bearish commentary on (HOG).

Fox News:

• Former Labor Sec. Perez elected as Democratic National Committee chairman. (video)

CNBC:

• UPS(UPS) tests drone deliveries via high-tech truck. (video)

• China's offensive against fleeing capital leaves Hollywood in limbo: Wall Street Journal.

• This is the new self-driving company taking on Uber’s Otto. (video)

• In sweeping move, Trump puts regulation monitors in U.S. agencies.

Zero Hedge:

• Trump Says He Will Skip White House Correspondents' Dinner.

• Darrell Issa Demands Special Prosecutor Probe Trump-Russia Connections.

• Which Country Punishes Productive People The Most?

• Starbucks'(SBUX) 'Brand Perception' Takes A Massive Hit After Announcing Plans To Hire 10,000 Refugees.

• Watergate's Bob Woodward: "Press Shouldn't Whine About Trump, It Doesn't Work With The Public". (video)

• Charts Of The Week: 10 Reasons To Be Cautious In This Market. (graph)

• Establishment Favorite Tom Perez Wins Vote To Lead Democratic Party.

• Most Illegal Immigrants Live In America's Metropolitan Areas. 

• Trump Administration Unveils First Step In Building Border Wall.

• White House Denies Axios' Report Which Denied Reuters Report About Trump's Border Tax.

• Weekend Reading: Errant Thinking.

• Data Fraud At Chinese Province Suggests Local GDP Numbers As Much As 20% "Overcooked".

• Late-Day Panic-Buying Sends Dow To Longest Record Streak In 30 Years. (graph)

Business Insider:

• $3.7 BILLION HEDGE FUND: There's a lot to be excited about under Trump, but nobody's talking about it.

• An unlikely French election outcome could plunge Europe into crisis.

• The Model 3 could be the worst thing that ever happened to Tesla(TSLA).

• Snap's IPO is oversubscribed by $7 billion.

• The Trump administration's vow to crack down on marijuana has 'unnerved' investors and caused stocks to tumble.

• Al Gore just sold $29 million of Apple(AAPL) stock.

CBS News:

• Car runs into New Orleans crowd, police say. Police say 12 people were injured when a vehicle plowed into a crowd watching the Krewe of Endymion parade in the Mid-City section of New Orleans.

Market Week in Review

• S&P 500 2,358.82 +.51%*

The Weekly Wrap by Briefing.com.

*5-Day Change