Bull Radar

Style Outperformer:

• Small-Cap Value unch.

Sector Outperformers:

• 1) Banks +1.0% 2) Oil Service +.8% 3) I-Banks +.8%

Stocks Rising on Unusual Volume:

• LOXO, FOR, APPN, BLUE, ASUR, ALRM, TELL, PBYI, NAV, BMA, TH, XPO, NVMI, TAL, RDUS, ICHR, BLKB, OR, OMCL, OLED, GIMO, FGEN, TIME, SINA, AMG, FOR and RH

Stocks With Unusual Call Option Activity:

• 1) MYGN 2) THO 3) WYN 4) CERN 5) WHR

Stocks With Most Positive News Mentions:

• 1) LOXO 2) DVAX 3) HLX 4) PBYI 5) WEX

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -20.7% Below 100-Day Average
• 4 Sectors Rising, 6 Sectors Declining
• 38.6% of Issues Advancing, 57.0% Declining
• 104 New 52-Week Highs, 25 New Lows
• 47.3% of Issues Above 200-day Moving Average
• Average 14-Day RSI 39.3%
• Vix 9.93 +1.9%
• Total Put/Call .76 -5.0%
• TRIN/Arms .88 -46.8%

Monday Watch

Today's Headlines

Bloomberg:

• London Cops Adjust to New Terror Reality With Guns, Helicopters. The image of a special-forces helicopter landing on London Bridge on Saturday night raised the question of whether the British capital is becoming more dangerous -- or is in fact better defended than ever. The attack, which killed seven people, was the second time in three months that London has come under attack after a similar assault on the country’s Parliament in March. Prime Minister Theresa May was accused on Sunday evening by Labour Party leader Jeremy Corbyn of failing to protect the public by starving the police of funds.
• Some Major Attacks in Europe in Recent Years.
• More Than 1,500 Injured in Turin After Terror Scare.  
• World Bank Still Sees Global Growth Picking Up Amid Policy Risks. The World Bank kept its outlook for the global economy unchanged, forecasting a modest pickup in growth despite uncertainty about monetary policy and the risk of a surge in protectionism. The development lender projects the world economy will grow by 2.7 percent this year and 2.9 percent the next, the same as its January forecast. “Global activity is firming broadly as expected,” the World Bank said in a report released Sunday. “Manufacturing and trade are picking up, confidence is improving, and international financing conditions remain benign.”
• Australian Bonds Jump as Yen and Gold Hold Gains. Yields on Australian government bonds joined Treasuries at a seven-month low, while the yen and gold held onto gains that came Friday in the wake of a weaker-than-expected U.S. employment report. The pound slipped after a terror attack in London. U.S. and Australian bonds rallied as wage growth and hiring strength in the American labor market came in below forecasts. The euro traded near its highest this year and the yen remained stronger, weighing on Japanese stocks. As investors weigh the implications of the latest terror incident at a popular London nightlife spot, the reaction in the British currency was muted. Japan’s Topix index fell 0.4 percent after closing Friday at the highest since August 2015. Australia’s S&P/ASX 200 Index lost 0.6 percent and South Korea’s Kospi index rose 0.1 percent. 
• Pound Falls After London Terror Attacks Raise Political Tensions. The pound fell after a weekend terror attack in London killed seven people, raising investor jitters days before the nation goes into a snap election. The pound declined as much as 0.3 percent in early trading in Asia Monday, though losses were contained even as the latest terror incident at a popular nightlife spot, which also left 21 people injured, gripped U.K. politics amid a tightening election race. The third attack in the U.K. in less than three months comes before the June 8 election, which will be held as armed police patrol the streets in the greatest show of force for decades.
• Odd Lots: Why Everyone's Talking About the VIX and 50 Cent.
• OPEC Deal Extension Isn't Enough to Rope in Bullish Oil Traders. The good news from OPEC wasn’t good enough. Hedge funds trimmed bets on rising crude prices to the lowest level since November as oil futures dipped below $50 a barrel amid skepticism an OPEC-led campaign to cut output will soon curb a worldwide supply glut. Speculators fled bearish positions for a second week.
• Five Things You Need to Know to Start Your Day.

Wall Street Journal:

• London Attack: Live Coverage.
• Top Democrat Sees ‘Smoke’ but No ‘Smoking Gun’ Showing Russia-Trump Campaign Collusion. Sen. Warner said hearings this week will be crucial to congressional investigations.
• As Seats Go Unfilled on Federal Panels, Businesses Face Uncertainty. The five-member Federal Trade Commission has only two commissioners in place; they must agree for the FTC to challenge a merger.
• ECB’s Path to Unwinding Easy Monetary Policies Proves Thorny. European authority signals it will follow Fed’s plan, but debate breaks out over first steps.

Fox News:

• ISIS claims London terror attacks that killed 7; police arrest 12 in raids. (video)
• London terror attack: British officials eye burka bans and stripping citizenship. (video)

CNBC:

• Facebook(FB) wants to be 'hostile environment for terrorists' as May calls for internet regulations.

Zero Hedge:

• Trump Blasts London Terrorist Attacks: "We Must Stop Being Politically Correct" Or "It Will Only Get Worse".
• May Vows "Enough Is Enough", Slams "Evil Islamist Extremism" As "One Of Great Challenges Of Our Time".
• Central Banks Now Own A Third Of The Entire $54 Trillion Global Bond Market. (graph)
• Global Warming Frenzy Continues Over Trump: When Has Mass Hysteria Ever Been Right?
• Former News Corp Boss Admits "The Media Isn't Going To Change... In Fact It Will Get Worse".
• The Death Of American Manufacturing In 1 Simple Chart.
• Hillary Clinton's Deceptive Blame-Shifting.
• "They're Going To Have All Sorts Of Issues" - Citi Urges Regulators To Address Australia's "Spectacular Housing Bubble".
• The Cultural Consequences Of The Federal Reserve.
• Hedge Fund CIO: "Normally The Fed Would End This Bubble, But It Can't This Time For One Reason".
• "This Is For Allah" - Seven Killed In London Terrorist Rampage; Three Assailants Shot.
• The US Jobs Market Is Much Worse Than The Official Data Suggest: The Full Story.
• A Bird's-Eye View Of American's Largest Auto Port.

Business Insider:

• ‘More is possible’: A bunch of states are taking on high drug prices, and it could start hitting drugmaker profits.

Night Trading

• Asian indices are -.25% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 87.75 -.5 basis point.
• Asia Pacific Sovereign CDS Index 19.0 -.25 basis point.
• Bloomberg Emerging Markets Currency Index 73.39 +.03%.
• S&P 500 futures -.14%.
• NASDAQ 100 futures -.11%.

Morning Preview Links

Earnings of Note

Company/Estimate

• (JKS)/.41
• (CASY)/.84
• (THO)/1.86

Economic Releases
8:30 am EST

• Final 1Q Non-Farm Productivity is estimated to fall -.2% versus a -.6% decline in 4Q. 
• Final 1Q Unit Labor Costs are estimated to rise +2.5% versus a +3.0% gain in 4Q.

10:00 am EST

• The ISM Non-Manufacturing Composite for May is estimated to fall to 57.0 versus 57.5 in April.
• Factory Orders for April are estimated to fall -.2% versus a +.2% gain in March.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China Services PMI report, (AAPL) WWDC, Stifel Tech/Internet/Media Conference and the (CSX) annual meeting could also impact trading today.

BOTTOM LINE: Asian indices are mostly higher, boosted by industrial and technology shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. 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 yen weakness, oil strength, less European/Emerging Markets/US High-Yield Debt Angst, economic optimism, technical buying and short-covering. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 75% net long heading into the week.

Today's Headlines

Bloomberg:

• London Bridge Closed, Ambulances on Scene After 'Incident'. Armed police rushed to London Bridge, in the heart of the U.K. capital, following an incident in which an eyewitness said a van swerved off the road into a crowd of pedestrians, injuring several people. “We are dealing with an incident on #LondonBridge,” the city’s Metropolitan Police said in a post on Twitter. The London Ambulance Service said “multiple resources” were in the area. Transport for London said the bridge was closed in both directions. Prime Minister Teresa May was being briefed, ITV reported.
• Skepticism Mounts for Fed Rate Hikes Post-June as Data Soften. While Janet Yellen and her Federal Reserve colleagues are poised to raise interest rates at their meeting this month, investors increasingly doubt the central bank’s projection for additional hikes following soft reports on U.S. employment and inflation. Goldman Sachs Group Inc. on Friday pushed back its forecast for a third rate increase this year to December from September. Trading in futures contracts shows odds of a September increase have dropped to just one in four, and investors are now pricing in less than one rate hike in 2018 for the first time since the eve of the U.S. elections in November.

Wall Street Journal:

• Deadly Blasts Hit Funeral of Kabul Protest Victim. Escalation of violence following massive truck bombing in the Afghan capital.
• Trump Believes Climate Change Is Real, U.N. Ambassador Nikki Haley Says. ‘He knows that it’s changing,’ Nikki Haley, U.S. ambassador to the U.N., said. ‘He knows that the U.S. has to be responsible with it, and that’s what we’re going to do.’

Barron's:

• Had bullish commentary on (BAC), (CME), (JNJ), (TWX) and (BDX).

Fox News:

• Spending bills, debt ceiling complicate Hill Republicans' efforts on taxes, ObamaCare. (video)
• Mattis calls North Korea's threats 'clear and present danger,' criticizes ally China. (video)

CNBC:

• Weak May jobs growth raises doubts about how much Fed can raise interest rates this year. (video)
• Housing and manufacturing data: Here’s what could drive the markets next week. (video)
• Paris Agreement is European ploy to put the US economy in shackles, says EPA chief Scott Pruitt. (video)
• GOP is running out of time, and options, to repeal and replace Obamacare.

Zero Hedge: 

• Multiple Casualties After Van Rams Pedestrians On London Bridge, Followed By Knife Attack, Gunfire: Live Feed. (video)
• Trump Didn't Kill The Paris Agreement - It Was Already Dead.
• Reuters Goes To China, Discovers "Ghost Collateral".
• Bill Maher Apologizes To Outraged Liberals For Saying "I'm A House Ni**er".
• Which States Have Suffered The Biggest Retail Losses. (graph)
• The US Unemployment Rate Is Now Below The Average Recession "Entry Point". (graph)
• Macron Invites All Americans Disappointed With Trump To Flee To France.
• Less Than Zero: How The Fed Killed Saving.
• "We're Taking Matters Into Our Own Hands": de Blasio Signs Executive Order Committing NYC To Paris Agreement.
• Kathy Griffin Abandons Accountability, Slams Trump & Family For "Personally Ruining [Her] Life".
• Five Reasons Why America Is About To Become A Very Conservative Country.
• Stocks Hit Record Highs; Shrug Off "Transitory" Covfefe In US Macro Data. (graph)

Business Insider: 

• What to expect from Apple's big annual event next week.

Mirror:

• London Bridge car 'attack': Live updates.

Market Week in Review

• S&P 500 2,438.45 +.93%*

The Weekly Wrap by Briefing.com.

*5-Day Change