Bull Radar

Style Outperformer:

• Mid-Cap Growth +.2%

Sector Outperformers:

• 1) Steel +1.6% 2) Homebuilders +.8% 3) Semis +.8%

Stocks Rising on Unusual Volume:

• STAA, MTGE, SIEN, EE, LOGI, NSIT, YRCW, AAWW, KKR, DXCM, DATA, NVTR, THS, QTWO, APO, IRTC, CLH, NRG, XOXO, ABMD, MYRG, VMC, CECO, MTCH, TTMI, RTEC, VNDA, CSII, RYI, HCC, IRTC, MRO, EXEL, WEX, BZH, EZPW, FTR, MASI, PWR, MLM, QRVO, H, WWE, XPO, CG and FMC

Stocks With Unusual Call Option Activity:

• 1) KRE 2) HOG 3) MNK 4) BBT 5) ESPR

Stocks With Most Positive News Mentions:

• 1) DATA 2) STAA 3) K 4) NVDA 5) CHD

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +19.9% Above 100-Day Average
• 0 Sectors Rising, 11 Sectors Declining
• 25.7% of Issues Advancing, 71.3% Declining
• 35 New 52-Week Highs, 101 New Lows
• 40.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 46.7%
• Vix 18.5 +15.8%
• Total Put/Call 1.26 +35.5%
• TRIN/Arms 1.56 +4.7%

Thursday Watch

Night Trading 

• Asian equity indices are -1.0% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 75.0 +.75 basis point. 
• Asia Pacific Sovereign CDS Index 12.0 -.25 basis point
• Bloomberg Emerging Markets Currency Index 72.48 +.06%.
• FTSE 100 futures -.42%.
• S&P 500 futures -.03%.
• NASDAQ 100 futures -.04%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (AVP)/-.02
• (CAH)/1.51
• (CI)/3.42
• (HCP)/.46
• (ICE)/.88
• (K)/1.08
• (NSM)/.44
• (REGN)/4.37
• (SAGE)/-1.81
• (SEE)/.50
• (VMC)/.24
• (YRCW)/-.79
• (ATVI)/.35
• (ANET)/1.51
• (CBS)/1.18
• (LOCO)/.16
• (EOG)/1.00
• (FLR)/.74
• (OSTK)/-.87
• (SHAK)/.08
• (SWKS)/1.60
• (OLED)/.14
• (WING)/.20

Economic Releases

7:30 am EST

• Challenger Job Cuts  YoY for April.
  

8:30 am EST

• Preliminary 1Q Non-Farm Productivity is estimated to rise +.9% versus unch. in 4Q.
• Preliminary 1Q Unit Labor Costs are estimated to rise +3.0% versus a +2.5% gain in 4Q.
• Initial Jobless Claims for last week are estimated to rise to 225K versus 209K the prior week.
• Continuing Claims are estimated to fall to 1835K versus 1837K prior. 
• The Trade Deficit for March is estimated at -$50.0B versus -$57.6B in February.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The China/Trump Admin. Meetings on Trade, Eurozone PPI report, China PPI report, weekly Bloomberg Consumer Comfort Index and the weekly EIA natural gas inventory report 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 mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 75% net long heading into the day.

Stocks Slightly Lower into Afternoon on Fed Jitters, Emerging Markets Debt Angst, Earnings Outlooks, Insurance/Restaurant Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 15.1 -2.7%

• Euro/Yen Carry Return Index 136.85 -.22%

• Emerging Markets Currency Volatility(VXY) 8.80 +3.77%

• S&P 500 Implied Correlation 41.51 -1.5%

• ISE Sentiment Index 83.0 -10.8%
  

• Total Put/Call .90 -18.2%

• NYSE Arms 1.22 -8.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 60.77 +.03%
  

• America Energy Sector High-Yield CDS Index 397.0 -1.04%

• European Financial Sector CDS Index 58.28 -.76%

• Italian/German 10Y Yld Spread 121.0 -1.5 basis points
  

• Asia Pacific Sovereign Debt CDS Index 11.97 -2.29%

• Emerging Market CDS Index 148.78 +2.49%
  

• iBoxx Offshore RMB China Corporate High Yield Index 149.31 +.01%

• 2-Year Swap Spread 26.5 +1.25 basis points

• TED Spread 51.0 -2.0 basis points

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

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.50 -.52%
• 3-Month T-Bill Yield 1.83% unch.
  

• Yield Curve 46.25 -.25 basis point

• China Iron Ore Spot 67.34 USD/Metric Tonne +.58%

• Citi US Economic Surprise Index 35.9 -.6 point

• Citi Eurozone Economic Surprise Index -78.0 -.7 point

• Citi Emerging Markets Economic Surprise Index 1.4 +1.0 points

• 10-Year TIPS Spread 2.17 +1.0 basis point
  
• 95.2% chance of Fed rate hike at June 13 meeting, 95.4% chance at August 1 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +47  open in Japan 
• China A50 Futures: Indicating +8 open in China

• DAX Futures: Indicating +10 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech/retail sector longs and emerging markets shorts

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 100% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Value -.3%

Sector Underperformers:

• 1) Insurance -2.1% 2) Restaurants -1.6% 3) Drugs -.8%

Stocks Falling on Unusual Volume: 

• ESPR, JBT, TCP, SNAP, TAP, DBD, SODA, SKT, SSYS, YUMC, LIVN, DENN, UNM, QUAD, I, NCR, NUVA, GILD, EL, CHRW, ZTS and GILD

Stocks With Unusual Put Option Activity:

• 1) FLEX 2) MTCH 3) STZ 4) BBT 5) AIG

Stocks With Most Negative News Mentions:

• 1) DENN 2) NUVA 3) SNAP 4) AKRX 5) SMG

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth +.7%

Sector Outperformers:

• 1) Telecom +2.7% 2) Oil Service +1.7% 3) Computer Hardware +1.0%

Stocks Rising on Unusual Volume:

• NANO, CNC, CRAY, SFLY, FIVN, RRR, CBI, TZOO, FTRPR, MTSI, LFUS, MBUU, EVTC, SITE, KPTI, KTWO, RM, UIS, W, ZEN, FSCT, THC, BDC, HSC, SIEN, FTR, DNOW, LITE, INSM, ACHC, RRR, GTHX, HFC, TDOC, CDW, DFIN, TKR, AAPL, SEAS, MPC, ANDV, WERN, FOE, PDM, SITE, BG and VNOM

Stocks With Unusual Call Option Activity:

• 1) IAC 2) CHRW 3) JNPR 4) MTCH 5) UNIT

Stocks With Most Positive News Mentions:

• 1) SFLY 2) ZEN 3) AAPL 4) ABC 5) MA

Charts:

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