Morning Market Internals

NYSE Composite Index:

• Volume Running -3.8% Below 100-Day Average
• 8 Sectors Rising, 2 Sectors Declining
• 63.3% of Issues Advancing, 33.3% Declining
• 51 New 52-Week Highs, 14 New Lows
• 48.8% of Issues Above 200-day Moving Average
• Average 14-Day RSI 44.6%
• Vix 18.5 -3.5%
• Total Put/Call .85 -7.6%
• TRIN/Arms 1.08 +26.8%

Friday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 695.0 -1.5 basis points. 

• Asia Pacific Sovereign CDS Index 12.75 -.5 basis point.

• Bloomberg Emerging Markets Currency Index 76.14 +.13%.

• FTSE 100 futures +.41%.

• S&P 500 futures +.05%.

• NASDAQ 100 futures +.12%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (AXL)/.78

• (B)/.67

• (CPB)/.81

• (KO)/.38

• (DE)/1.19

• (IPGP)/1.70

• (ITT)/.59

• (SJM)/2.16

• (KHC)/.95

• (NHI)/1.33

• (NWL)/.68

• (R)/1.36

• (VFC)/1.02

• (VMC)/.74

Economic Releases

8:30 am EST

• The Import Price Index MoM for January is estimated to rise +.6% versus a +.1% gain in December. 

• The Import Price Index Ex Petrol for January is estimated to rise +.1% versus a -.2% decline in December.

• The Export Price Index MoM for January is estimated to rise +.3% versus a -.1% decline in December.

• Housing Starts for January are estimated to rise to 1235K versus 1192K in December.

• Building Permits for January is estimated to fall to 1300K versus 1302K in December.

10:00 am EST

• Univ. of Mich. Consumer Sentiment for February is estimated to fall to 95.4 versus 95.7 in January.

Upcoming Splits

• None of note

Other Potential Market Movers

• The UK Retail Sales report, (HAS) investor update and the (MAT) analyst meeting could also impact trading today.

BOTTOM LINE:  Asian indices are higher, boosted by technology and industrial 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.

Stocks Surging into Final Hour on Less US/European/Emerging Markets Debt Angst, Earnings Optimism, Oil Gain, Tech/Telecom Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 19.57 +1.6%

• Euro/Yen Carry Return Index 138.43 -.27%

• Emerging Markets Currency Volatility(VXY) 8.78 unch.

• S&P 500 Implied Correlation 41.80 -2.9%

• ISE Sentiment Index 86.0 -5.49%
  

• Total Put/Call .90 -22.41%

• NYSE Arms .99 +112.17%

Credit Investor Angst:

• North American Investment Grade CDS Index 54.05 -6.39%
  

• America Energy Sector High-Yield CDS Index 386.0 -4.07%

• European Financial Sector CDS Index 53.04 -5.48%

• Italian/German 10Y Yld Spread 130.25 -.5 basis point
  

• Asia Pacific Sovereign Debt CDS Index 12.71 -3.42%

• Emerging Market CDS Index 122.69 -4.96%
  

• iBoxx Offshore RMB China Corporate High Yield Index 147.69 +.15%

• 2-Year Swap Spread 27.75 +.25 basis point

• TED Spread 26.75 +2.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -32.25 +.75 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 76.05 +.35%
• 3-Month T-Bill Yield 1.59% +1.0 basis point
  

• Yield Curve 71.75 -2.75 basis points

• China Iron Ore Spot 76.35 USD/Metric Tonne unch.

• Citi US Economic Surprise Index 35.20 -5.3 points

• Citi Eurozone Economic Surprise Index 37.10 -1.2 points

• Citi Emerging Markets Economic Surprise Index 2.40 +1.4 points

• 10-Year TIPS Spread 2.12 unch.
  
• 100.0% chance of Fed rate hike at May 2 meeting, 100.0% chance at June 13 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +76 open in Japan 
• China A50 Futures: Indicating +309 open in China

• DAX Futures: Indicating +25 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 100% Net Long

Bear Radar

Style Underperformer:

• Small-Cap Value +.5%

Sector Underperformers:

• 1) Oil Service -1.3% 2) Energy -.7% 3) Gold & Silver -.5%

Stocks Falling on Unusual Volume: 

• DSKE, NTAP, TGH, THS, CAI, TRTN, EQIX, FOSL, XEC, LXFT, WST, MRO, OMC and ADT

Stocks With Unusual Put Option Activity:

• 1) NTAP 2) AAP 3) SN 4) IPG 5)RSX

Stocks With Most Negative News Mentions:

• 1) LXFT 2) MATR 3) CMP 4) SPWR 5) PDCO

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +1.0%

Sector Outperformers:

• 1) Telecom +2.3% 2) Software +2.1% 3) Internet +1.7%

Stocks Rising on Unusual Volume:

• SHLM, AMAG, SBCF, SEDG, IPCC, WBAI, TRIP, COOL, YNDX, NTB, HIIQ, CYBR, CVG, CBAY, SYNT, H, RM, LW, CSCO, PSDO, TWLO, USFD, FFIC, UFCS, CARB, AAN, EQT, MNOV, USFD, CSII, BMY, PPC, APTI, SERV, KKR, ABEO, DNKN, MMSI, RS, GPN, COHU and SHAK

Stocks With Unusual Call Option Activity:

• 1) PAGP 2) NTAP 3) P 4) MRNS 5) ITB

Stocks With Most Positive News Mentions:

• 1) BMY 2) CTL 3) COWN 4) CSCO 5) A

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +21.0% Above 100-Day Average
• 5 Sectors Rising, 5 Sectors Declining
• 49.5% of Issues Advancing, 46.9% Declining
• 53 New 52-Week Highs, 29 New Lows
• 47.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 43.0%
• Vix 20.7 +7.1%
• Total Put/Call .81 -30.2%
• TRIN/Arms 1.61 +245.8%