Tuesday Watch

Night Trading 

• Asian equity indices are -.5% to unch. on average.
• Asia Ex-Japan Investment Grade CDS Index 84.75 -.5 basis point. 
• Asia Pacific Sovereign CDS Index 21.75 unch.
• Bloomberg Emerging Markets Currency Index 73.56 +.16%.
• S&P 500 futures -.09%.
• NASDAQ 100 futures -.03%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (ANGO)/.16
• (BAC)/.44
• (SCHW)/.39
• (CMA)/1.09
• (GS)/3.39
• (HOG)/1.38
• (JNJ)/1.79
• (LMT)/3.07
• (NVS)/1.18
• (PGR)/.60
• (AMTD)/.42
• (UNH)/2.38
• (CSX)/.59
• (IBM)/2.75
• (IBKR)/.36
• (UAL)/2.62

Economic Releases 

8:30 am EST

• The Import Price Index MoM for June is estimated to fall -.2% versus a -.3% decline in May.
• The Export Price Index MoM for June is estimated unch. versus a -.7% decline in May.
  

10:00 am EST

• The NAHB Housing Market Index for July is estimated at 67.0 versus 67.0 in June.

4:00 pm EST

• Net Long-Term Tic Flows for May.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The UK CPI report and the US weekly retail sales reports could also impact trading today.

BOTTOM LINE:  Asian indices are mostly lower, weighed down by industrial and commodity shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the day.

Bear Radar

Style Underperformer:

• Large-Cap Growth unch.

Sector Underperformers:

• 1) Road & Rail -.5% 2) Disk Drives -.5% 3) Computer Services -.4%

Stocks Falling on Unusual Volume: 

• QIWI, AMC, XPO, RDUS and SUPN

Stocks With Unusual Put Option Activity:

• 1) CHRW 2) AMLP 3) APRN 4) SN 5) JNUG

Stocks With Most Negative News Mentions:

• 1) STON 2) DRYS 3) BAH 4) NMIH 5) ALLY

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value +.4%

Sector Outperformers:

• 1) Gold & Silver +2.1% 2) Steel +1.5% 3) Retail +1.0%

Stocks Rising on Unusual Volume:

• DDC, RLJ, BGC, LAKE, QDEL, OEC, COHU, YRD, JKS, CMCO, YY, JBHT, CAI, DLB, IPXL, SRG, COTV, HAWK, FOLD, BAK, CTRL, HDP, FONR, LHO, CHUY, HRTX, PRTK, NVTA, FCX and SHO

Stocks With Unusual Call Option Activity:

• 1) HOG 2) STZ 3) PHM 4) VMW 5) AKAM

Stocks With Most Positive News Mentions:

• 1) CBAY 2) GBX 3) RH 4) PNC 5) BHI

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -18.4% Below 100-Day Average

• 7 Sectors Rising, 3 Sectors Declining

• 54.5% of Issues Advancing, 41.0% Declining

• 119 New 52-Week Highs, 9 New Lows

• 47.2% of Issues Above 200-day Moving Average

• Average 14-Day RSI 38.4%

• Vix 9.8 +3.1%

• Total Put/Call .97 +16.9%

• TRIN/Arms .91 -10.0%

Monday Watch

Night Trading

• Asian indices are -.25% to +.50% on average.
• Asia Ex-Japan Investment Grade CDS Index 84.75 -.5 basis point.
• Asia Pacific Sovereign CDS Index 21.75 unch.
• Bloomberg Emerging Markets Currency Index 73.43 -.01%.
• S&P 500 futures +.03%.
• NASDAQ 100 futures +.10%.

Morning Preview Links

Earnings of Note

Company/Estimate

• (BLK)/5.38
• (JBHT)/.91
• (BRO)/.47
• (NFLX)/.16
• (SCSS)/.05

Economic Releases 

8:30 am EST

• Empire Manufacturing for July is estimated to fall to 15.0 versus 19.8 in June.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Canada Wholesale inventory report 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 mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the week.

Weekly Outlook

• Wall St. Week Ahead by Reuters.
• Week Ahead by TheStreet. 
• Stocks to Watch Next Week by Seeking Alpha.
• Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week modestly higher on oil gains, less European/Emerging Markets/US High-Yield debt angst, technical buying, healthcare/tax reform hopes, short-covering and positive earning outlooks. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 100% net long heading into the week.