Bear Radar

Style Underperformer:

• Large-Cap Value +.3%

Sector Underperformers:

• 1) Steel -1.2% 2) Tobacco -.9% 3) Shipping -.4%

Stocks Falling on Unusual Volume: 

• DLTH, AGX, IDT, VRNT, VRS, NYT, HRB and HIMX

Stocks With Unusual Put Option Activity:

• 1) CTSH 2) PCG 3) PXD 4) CL 5) LC

Stocks With Most Negative News Mentions:

• 1) AGX 2) LC 3) SNCR 4) AVID 5) CTRP

Charts:

• ETFs Falling on Unusual Volume

• Stocks Falling on Unusual Volume

Bull Radar

Style Outperformer:

• Small-Cap Growth +.9%

Sector Outperformers:

• 1) Biotech +1.5% 2) Alt Energy +1.4% 3) Social Media +1.4%

Stocks Rising on Unusual Volume:

• ENTL, HOME, SAGE, OSIS, TLRD, GEF, LULU, CONN, IMKTA, TRHC, SCMP, LE, ALOG, GWPH, NCS, SGH, KRO, RIOT, XOMA, EIX, TROX, FOX, KEYS, IGV, CTRN, IMMU, SHAK, XENT, HALO, RNG, SGH, TWOU, CMTL, CNCE, MTN, APTI, KRO, OKTA, FOXA and KLXI

Stocks With Unusual Call Option Activity:

• 1) TLRD 2) PAYX 3) UTX 4) TBT 5) CIEN

Stocks With Most Positive News Mentions:

• 1) SAGE 2) LULU 3) SHAK 4) GEF 5) DPW

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -3.3% Below 100-Day Average
• 8 Sectors Rising, 2 Sectors Declining
• 60.4% of Issues Advancing, 35.3% Declining
• 57 New 52-Week Highs, 42 New Lows
• 60.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 48.5%
• Vix 10.2 -7.4%
• Total Put/Call .89 +11.3%
• TRIN/Arms .96 -30.3%

Thursday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 73.25 +.25 basis point. 

• Asia Pacific Sovereign CDS Index 14.0 unch.

• Bloomberg Emerging Markets Currency Index 73.13 -.04%.

• S&P 500 futures +.21%.

• NASDAQ 100 futures +.36%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (CIEN)/.50
• (DG)/.94
• (JKS)/-.02
• (TTC)/.29
• (COO)/2.66
• (FNSR)/.30
• (UNFI)/.60

Economic Releases

7:30 am EST

• Challenger Job Cuts YoY for November.

8:30 am EST:

• Initial Jobless Claims for last week are estimated to rise to 240K versus 238K the prior week.
• Continuing Claims are estimated to fall to 1919K versus 1957K prior.
  

12:00 pm EST

• 3Q Household Change in New Worth.
  

3:00 pm EST

• Consumer Credit for October is estimated to fall to $17.0B versus $20.83B in September.
  

Upcoming Splits

• (PATK) 3-for-2

Other Potential Market Movers

• The Eurozone Industrial Production report, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report, (PSMT) monthly sales report, (ANDE) investor day, (EW) investor conference, (SYY) investor day and the (FITB) investor day could also impact trading today.

BOTTOM LINE:  Asian indices are mostly higher, boosted by financial and industrial shares in the region. I expect US stocks to open modestly higher and to maintain gains into the afternoon.  The Portfolio is 75% net long heading into the day.

Stocks Reversing Slightly Higher into Final Hour on Bargain-Hunting, Seasonal Strength, Technical Buying, Tech/Defense Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 11.07 -2.29%

• Euro/Yen Carry Return Index 137.96 -.6%

• Emerging Markets Currency Volatility(VXY) 8.03 +.5%

• S&P 500 Implied Correlation 37.49 -.13%

• ISE Sentiment Index 68.0 -38.7%
  

• Total Put/Call .85 +1.19%

• NYSE Arms 1.30 -15.52%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.97 +.47%
  

• America Energy Sector High-Yield CDS Index 369.0 +1.15%

• European Financial Sector CDS Index 46.69 +1.53%

• Western Europe Sovereign Debt CDS Index 3.62 +.84%

• Asia Pacific Sovereign Debt CDS Index 14.79 +.08%

• Emerging Market CDS Index 177.76 +1.08%
  

• iBoxx Offshore RMB China Corporate High Yield Index 145.73 +.02%

• 2-Year Swap Spread 17.75 +.5 basis point

• TED Spread 19.75 -1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -58.5 -5.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.15 -.28%

• 3-Month T-Bill Yield 1.29% -1.0 basis point
  

• Yield Curve 52.5 -1.5 basis points

• China Import Iron Ore Spot $72.68/Metric Tonne +3.67%

• Citi US Economic Surprise Index 62.90 -.2 point

• Citi Eurozone Economic Surprise Index 67.0 +.6 basis point

• Citi Emerging Markets Economic Surprise Index 2.40 +.6 point

• 10-Year TIPS Spread 1.88 unch.
  

• 100.0% chance of Fed rate hike at Jan. 31 meeting, 100.0% chance at March 21 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +123 open in Japan 

• China A50 Futures: Indicating -33 open in China

• DAX Futures: Indicating +23 open in Germany

Portfolio: 

• Higher: On gains in my tech/medical/retail sector longs

• Disclosed Trades: None

• Market Exposure: 75% Net Long

Today's Headlines

Bloomberg:

• China's Debt-to-GDP Ratio 260%. (video)

• Steelmakers Surge on `Precedent-Setting' U.S. Import Ruling. U.S. Steel Corp. led gains among major American producers of the metal after the U.S. slapped duties on some Vietnamese alloys made with China imports. In a preliminary ruling, the Commerce Department found that corrosion-resistant steel and some cold-rolled metal from Vietnam made from products originating in China circumvented duty orders on those imports from China. The decision could pave the way for the U.S. to place duties on other countries that use Chinese steel.

• Copper Flashes Red as Stockpiles and Spreads Point Bearish. (video)

• Here’s Where the GOP Tax Plan Stands Right Now. (video)

• Retail Investors Just Made a Historic Move Into U.S. Stocks. Clients at TD Ameritrade added to stock holdings for a 10th straight month in November, driving a gauge of retail investor sentiment 15 percent higher to a record, according to the online brokerage’s website. That was the “largest single-month increase ever” in the firm’s IMX measure, as investors piled into an equity market that’s on pace for its best year since 2013.

• Investors Down in December Are Still Up Big For the Year. (video)

Wall Street Journal:

• Trump Says U.S. Recognizes Jerusalem as Israel’s Capital. President says the move will advance the peace process; others have warned of the opposite effect.

• Socialism, Capitalism Seen in New Light by Younger Americans. Surveys show a leftward tilt, and pessimism about the future, among millennials.

• North Koreans Get Smartphones, and the Regime Keeps Tabs. Dictatorship allows wider use of mobile devices and embeds technology to limit and monitor their use.

• Home Depot(HD) to Launch $15 Billion Share Buyback Program. Home-improvement retailer also vowed to step up investments in its business.

Fox News:

• Trump officially recognizes Jerusalem as Israel's capital, orders US embassy move. (video)

CNBC:

• Trump: Government shutdown 'could happen' Saturday. (video)

• They're watching you: Malls tap new tech to track shoppers.

• Wal-Mart Stores(WMT) to change name to Walmart, as it shifts its focus to e-commerce.

• Greenspan compares bitcoin to Colonial America currency that eventually became worthless. (video)

• Meet CryptoKitties, the $100,000 digital beanie babies epitomizing the cryptocurrency mania.

• Stocks are off their highs, but BofA says keep buying. (video)

Zero Hedge:

• ECB Caught In Sprawling Scandal After Bonds It Owns Implode.

• Trump Recognizes Jerusalem As Israel's Capital As Middle East Prepares For Violence.

• Al Franken To Make An Announcement Tomorrow After 11 Democratic Senators Demand Resignation.

• "Declaration Of War": Trump Jerusalem Decision Sparks Outrage, Warning Of "A Fire With No End In Sight".

• Chuck Grassley Demands FBI Produce All Strzok Text Messages As Part Of Trump Anti-Bias Probe.

• "Like Driving Into Hell" - Los Angeles' 405 Freeway Shutdown As Wildfires Spread. (pic)

• Arizona Citizens Tracked In Facial Recognition Database In First Step For 'REAL ID' Implementation.

• WTI/RBOB Extend Losses On Biggest Gasoline Build In 11 Months, Record Crude Production.

• BofA: "In Every Market Shock Since 2013 Central Banks Have Stepped In To Protect Markets".

• Higher Wage Hope Hammered As American Worker Compensation Slumps. (graph)

• Zandi Warns "Job Market Feels Like It Might Overheat" As Manufacturing Jobs Grow At Fastest Pace On Record.

• "The Silence Breakers" - Time Reveals "Person Of The Year" 2017.

• World's Third Largest Shipbuilder Crashes 29% Amid Asian Equity Carnage.