Bull Radar

Style Outperformer:

• Mid-Cap Value +.6%

Sector Outperformers:

• 1) Internet +1.2% 2) Banks +1.0% 3) Semis +.9%

Stocks Rising on Unusual Volume:

• ALR, HCC, SWC, MGI, STRP, YNDX, APOG, SABR, CIR, ARNC, GLPG, FGL, NFLX, NEFF, GKOS, KRNT, EMES, WIFI, PLSE, AIV, BPT, ASH, PATK, LECO and TM

Stocks With Unusual Call Option Activity:

• 1) ILG 2) RF 3) COH 4) TXN 5) EMR

Stocks With Most Positive News Mentions:

• 1) VMI 2) VIVO 3) KNX 4) OBCI 5) CMI

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -26.0% Below 100-Day Average
• 10 Sectors Rising, 0 Sectors Declining
• 62.9% of Issues Advancing, 32.9% Declining
• 41 New 52-Week Highs, 17 New Lows
• 52.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 35.8%
• Vix 15.4 -3.3%
• Total Put/Call .93 -4.1%
• TRIN/Arms 1.0 -55.9%

Monday Watch

Night Trading

• Asian indices are -.25% to +.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 101.25 +1.25 basis points.

• Asia Pacific Sovereign CDS Index 23.5 +2.25 basis points.

• Bloomberg Emerging Markets Currency Index 72.19 +.04%.

• S&P 500 futures -.04%.

• NASDAQ 100 futures -.05%.

Morning Preview Links

Earnings of Note

Company/Estimate

• (JBHT)/.85

• (VNCE)/-.05

• (CUDA)/.15

• (BRO)/.43

• (CE)/1.72

• (NFLX)/.37

• (UAL)/.38

Economic Releases

8:30 am EST

• Empire Manufacturing for April is estimated to fall to 15.0 versus 16.4 in March.  

10:00 am EST

• The NAHB Housing Market Index for April is estimated to fall to 70.0 versus 71.0 in March.

4:00 pm EST

• Net Long-Term TIC Flows.  

Upcoming Splits

• None of note

Other Potential Market Movers

• The China Retail/Industrial Profits/GDP reports and the RBA Minutes could also impact trading today.

BOTTOM LINE: Asian indices are mostly higher, boosted by technology 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 modestly higher on less European/Emerging Markets/US High-Yield debt angst, earnings optimism, commodity strength, yen weakness, diminished geopolitical tensions and technical buying. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 75% net long heading into the week.

Today's Headlines

Bloomberg:

• Kim Jong Un Shows Off North Korea Missiles as World on Edge. North Korean leader Kim Jong Un oversaw an elaborate military parade in the center of Pyongyang on Saturday as the world watched for any provocations that risk sparking a conflict with the U.S. Wearing a Western-style black suit and white collared shirt, Kim was pictured on state-run television laughing heartily and clapping while watching soldiers, tanks and missiles on display in Kim Il Sung Square. The event marked the 105th birth anniversary of Kim’s grandfather, the nation’s founder, North Korea’s most important holiday. “If the U.S. provokes recklessly, the revolutionary forces will take an annihilating strike,” Choe Ryong Hae, a senior regime official, said in a speech at the parade. North Korea is ready for a nuclear or full-scale war if the U.S. wants it, he added.
• U.S. Urges China to Open Trade After Sparing It Manipulator Tag. The U.S. stopped short of branding China a currency manipulator, but urged the world’s second-largest economy to let the yuan rise with market forces and embrace more trade. No major trading partner is manipulating its currency for an unfair trade advantage, according to the first foreign-currency report released by the Treasury Department under President Donald Trump on Friday. It kept China, South Korea, Japan, Taiwan, Germany and Switzerland on its foreign-exchange monitoring list. “China currently has an extremely large and persistent bilateral trade surplus with the United States, which underscores the need for further opening of the Chinese economy to American goods and services,” as well as quicker reforms to boost household consumption, according to the Treasury report.
• Aramco CEO Sees Oil Market Closer to Balance Despite U.S. Boom.
• Apple(AAPL) Said to Near Road Tests of Self-Driving Car Software. Apple Inc. will soon take its self-driving car software platform to public streets for the first time, a major step that gets the world’s largest technology company into a crowded race to reshape transportation. The California Department of Motor Vehicles granted clearance for trials of the autonomous driving technology on public roads, according to a notice on the DMV’s website on Friday. This is the first time Apple has received approval for such testing.

Wall Street Journal: 

• Trump’s Weak-Dollar Temptation. Reagan and Clinton presided over a strong currency—and success.
• In Mike Pence’s Pacific Swing, Security Will Trump Trade. With North Korea escalating its nuclear-weapons program, shared security strategies likely to overshadow economic demands.
• Wells Fargo(WFC) Board Faces High-Stakes Vote. Investor concerns about the response to sales-practice issues and an ISS recommendation are among the threats to reelection.

Barron's:

• Had bullish commentary on (HBI), (P), (REGN), (VRTX), (WFM) and (WAB).

MarketWatch.com:

• Dozens killed after bomb hits buses carrying Syrian evacuees.

Fox News:

• Tax March turns into demand for Trump's IRS filings; 13 reported arrests. (video)
• Christian persecution: How many are being killed, where they are being killed. (video)

Zero Hedge: 

• Le Pen Faces Disaster In Election After "Monumental" Computer Error.
• London Housing Market Suffers Worst Collapse Since Financial Crisis.
• North Korea Shows Off New ICBM, Sub-Based Missiles As US Aircraft Carrier Approaches.
• Why The Equity Bull Market Must Continue (Or Else).
• China Warns North Korea War "Could Break Out At Any Moment".
• North Korea Would Target US Military Bases In Asia-Pacific; South Korean Presidency If U.S. Attacks.
• Delta(DAL) Will Offer Up To $9,950 To Passengers On Overbooked Flights.
• Record High Multi-Family Construction Set To Wreak Havoc On Apartment Rents.
• Treasury Releases FX Manipulation Report: Says China Must Allow Yuan To "Rise With Market Forces".
• Weekend Reading: Markets Go On Alert.

Business Insider:

• Here's what's going on with Chinese troop movements on North Korea's border.
• Conservative and liberal watchdogs are railing against Trump over concealed White House visitor logs.

Reuters:

• North Korean missile 'blows up' on test launch as Pence heads for South.

The Telegraph:

• Germany’s trade surplus is a threat to global stability, and must be fixed.

Market Week in Review

• S&P 500 2,328.95 -1.21%*

The Weekly Wrap by Briefing.com.

*5-Day Change