Wednesday, October 11, 2017

Today's Headlines

Bloomberg: 
  • Spain Turns Screws on Catalans With Threat of Direct Control. (video) Spanish Prime Minister Mariano Rajoy stepped up pressure on Catalonia to halt its drive for independence, taking the first step in a process that could strip the region’s separatist government of its limited autonomy and impose direct control from Madrid. Rajoy convened an emergency session of cabinet on Wednesday, at which ministers agreed to issue a formal request to the Catalan government for confirmation of whether it had declared independence. Rajoy cited “deliberate confusion” sown by the regional administration in Barcelona the previous day.
  • China to Flex Market Muscles in First Dollar Bond Since 2004. (video) China is moving forward with plans to issue its first sovereign bonds in dollars since 2004 in a deal that will put a symbolic seal of approval on the booming offshore Asian debt market. The Ministry of Finance is scheduled to meet with bankers in Beijing Wednesday to discuss the sale, according to people familiar with the plans. The deal is aimed for as soon as this month, according to the people, who asked not to be named as the specifics aren’t public. The MOF said in a statement it will sell $2 billion worth of notes.
  • Trump to Nominate Kirstjen Nielsen as Homeland Security Secretary, Official Says. President Donald Trump plans to nominate Kirstjen Nielsen, a top aide to White House Chief of Staff John Kelly, to head the Homeland Security Department, an administration official said. Nielsen had been Kelly’s chief of staff when he was secretary of Homeland Security and followed him to the White House, serving as his principal deputy there.
Wall Street Journal:
Reuters:

Bear Radar

Style Underperformer:
  • Small-Cap Value -.1%
Sector Underperformers:
  • 1) Retail -1.5% 2) Gold & Silver -1.0% 3) Alt Energy -.7%
Stocks Falling on Unusual Volume: 
  • CUDA, CRY, ZPER, BOJA, DKS, SBH, NUVA, NAVI, AEO and XPER
Stocks With Unusual Put Option Activity:
  • 1) KR 2) CZR 3) DPZ 4) K 5) MNKD
Stocks With Most Negative News Mentions:
  • 1) HIMX 2) CHS 3) RHI 4) BOJA 5) CSTR
Charts:

Bull Radar

Style Outperformer:
  • Large-Cap Growth +.2%
Sector Outperformers:
  • 1) Restaurants +.9% 2) Social Media +.7% 3) Road & Rail +.6%
Stocks Rising on Unusual Volume:
  • BIOP, HMNY, AERI, PVG, SGEN, MTEM, KR, RGNX, MACK, SHOP, DVA, QGEN, CMC, ZTO, CL, AYR, BLK, NTNX, CASH, CSGP, CYBE, TUR, NOAH, KRO, HSTM and ANGI
Stocks With Unusual Call Option Activity:
  • 1) ARNC 2) SO 3) FAST 4) WMT 5) DXJ
Stocks With Most Positive News Mentions:
  • 1) PYPL 2) SNAP 3) GOOGL 4) JNJ 5) DAL
Charts:

Morning Market Internals

NYSE Composite Index:

Tuesday, October 10, 2017

Wednesday Watch

Night Trading 
  • Asian equity indices are +.25% to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 78.5 -.25 basis point
  • Asia Pacific Sovereign CDS Index 16.50 unch.
  • Bloomberg Emerging Markets Currency Index 73.38 +.07%.
  • S&P 500 futures +.03%.
  • NASDAQ 100 futures +.06%.
Morning Preview Links

Earnings of Note
Company/Estimate
  • (OZRK)/.74
  • (BLK)/5.53
  • (DAL)/1.54
  • (FAST)/.50
Economic Releases 
10:00 am EST
  • JOLTS Job Openings for August are estimated to fall to 6135K versus 6170K in July.
2:00 pm EST
  • FOMC Meeting Minutes.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Evans speaking, $24B 3Y T-Note auction, $20B 10Y T-Note auction, weekly MBA Mortgage Applications report and the (KR) investor conference 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 day.

Morning Market Internals

NYSE Composite Index: