Friday Watch

Night Trading 

• Asian equity indices are -.50% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 84.50 unch. 
• Asia Pacific Sovereign CDS Index 21.0 -.25 basis point.
• Bloomberg Emerging Markets Currency Index 73.88 unch.
• S&P 500 futures +.01%.
• NASDAQ 100 futures -.15%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (ALV)/1.49
• (CL)/.72
• (ECA)/.03
• (FITB)/.42
• (GE)/.25
• (GNTX)/.32
• (HON)/1.78
• (KSU)/1.28
• (MCO)/1.33
• (NVR)/28.92
• (RF)/.24
• (SLB)/.30
• (STI)/.98

Economic Releases 

• None of note

Upcoming Splits

• None of note

Other Potential Market Movers

• The Eurozone Manufacturing PMI report and the Canadian inflation data could also impact trading today.

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

Bear Radar

Style Underperformer:

• Mid-Cap Value +.1%

Sector Underperformers:

• 1) Road & Rail -1.6% 2) Steel -1.5% 3) Oil Service -1.0%

Stocks Falling on Unusual Volume: 

• WES, POOL, PTC, HZO, CHRW, IRWD, SHLM, CHKP, HD, LOW, BC, PPG, ADS, QCOM and LPL

Stocks With Unusual Put Option Activity:

• 1) MYL 2) PM 3) SKX 4) GPC 5) CL

Stocks With Most Negative News Mentions:

• 1) FMSA 2) SND 3) CRZO 4) OCN 5) CMG

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth +.2%

Sector Outperformers:

• 1) Hospitals +1.2% 2) Drugs +1.2% 3) Biotech +1.1%

Stocks Rising on Unusual Volume:

• AVA, SRPT, SYNT, AMWD, AMBC, DWCH, AYR, HAWK, PII, ASML, SNY, KMI, KALU, MCRB, HEES, BREW, WBC, MGM, LXFT, TBK, GLPG, RCI, RACE, ABCO, ADTN, MNRO, URI, LLL and KMI

Stocks With Unusual Call Option Activity:

• 1) BHGE 2) SRPT 3) SPLK 4) VRTX 5) HD

Stocks With Most Positive News Mentions:

• 1) SRPT 2) KMI 3) SHLD 4) NKE 5) HPQ

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -2.4% Below 100-Day Average
• 5 Sectors Rising, 5 Sectors Declining
• 48.2% of Issues Advancing, 48.2% Declining
• 176 New 52-Week Highs, 7 New Lows
• 49.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 39.6%
• Vix 9.9 +1.0%
• Total Put/Call .74 -6.3%
• TRIN/Arms 1.22 +76.6%

Thursday Watch

Night Trading 

• Asian equity indices are -.25% to +.5% on average.
• Asia Ex-Japan Investment Grade CDS Index 84.50 -.75 basis point. 
• Asia Pacific Sovereign CDS Index 21.25 unch.
• Bloomberg Emerging Markets Currency Index 73.71 -.01%.
• S&P 500 futures -.06%.
• NASDAQ 100 futures +.03%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (ABB)/.33
• (ABT)/.61
• (ADS)/3.74
• (BK)/.85
• (BX)/.62
• (DHR)/.97
• (GPC)/1.31
• (KEY)/.34
• (NUE)/1.06
• (PM)/1.23
• (PII)/1.09
• (PPG)/1.83
• (SAP)/.94
• (SHW)/4.56
• (SNA)/2.57
• (TRV)/2.14
• (UNP)/1.39
• (COF)/1.90
• (CTAS)/1.11
• (EBAY)/.45
• (ISRG)/5.77
• (MSFT)/.71
• (NCR)/.75
• (SWKS)/1.52
• (V)/.81

Economic Releases 

8:30 am EST

• Initial Jobless Claims for last week are estimated to fall to 245K versus 247K the prior week.
• Continuing Claims are estimated to rise to 1949K versus 1945K prior.
• Philly Fed Business Outlook Index for July is estimated to fall to 23.0 versus 27.6 in June.
  

9:45 am EST

• The Leading Index for June is estimated rise +.4% versus a +.3% gain in May.

Upcoming Splits

• None of note

Other Potential Market Movers

• The Mario Draghi press conference, ECB rate decision, BoJ decision, Bloomberg Economic Expectations Index for July, weekly EIA natural gas inventory report, weekly Bloomberg Consumer Comfort Index 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 Value +.3%

Sector Underperformers:

• 1) Road & Rail -2.8% 2) Computer Services -1.6% 3) Gaming -.6%

Stocks Falling on Unusual Volume: 

• MKC, CSX, GWW, UAL, NTRS, HDP, ENBL and HBHC

Stocks With Unusual Put Option Activity:

• 1) CSX 2) IBM 3) MPC 4) PF 5) VLO

Stocks With Most Negative News Mentions:

• 1) AVHI 2) NSC 3) HOG 4) PYPL 5) SLGN

Charts:

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