Bear Radar

Style Underperformer:

• Large-Cap Value +.9%

Sector Underperformers:

• 1) Construction -2.4% 2) Gold & Silver -.1% 3) Drugs +.2%

Stocks Falling on Unusual Volume: 

• FLR, AMN, ZAYO, TDC, WEB, BAS, VIRT, FLT, ANET, BPL, APPN, CENX and XPER

Stocks With Unusual Put Option Activity:

• 1) PF 2) VNQ 3) PAH 4) Z 5) P

Stocks With Most Negative News Mentions:

• 1) FLR 2) WEB 3) UEIC 4) CENX 5) NMRK

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value +1.4%

Sector Outperformers:

• 1) Disk Drives +3.0% 2) Steel +2.3% 3) Restaurants +2.2%

Stocks Rising on Unusual Volume:

• WGL, PTLA, SHAK, BNFT, SUPV, SRPT, GHL, GGAL, MED, ESPR, WIFI, GEOS, EPAY, STAA, CTRL, NSIT, CRC, TWI, SMCI, PSO, HSKA, PCTY, BABA, ITGR, WTW, TPIC, BGS, HMSY, ACAD, LYV, TUSK, LPSN, WING, PE, AAXN, SRCL, OLED, RUTH, DVA, PCTY, RP, LPLA, ALNY, NSIT, LOCO, LPNT, B, FDC, AXL, ERI, LNG, TACO, CAH, NRG, K, SFM and VREX

Stocks With Unusual Call Option Activity:

• 1) IAC 2) DISCA 3) AXL 4) BG 5) HIG

Stocks With Most Positive News Mentions:

• 1) CRC 2) PTLA 3) SHAK 4) P 5) BABA

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -4.0% Above 100-Day Average
• 11 Sectors Rising, 0 Sectors Declining
• 73.3% of Issues Advancing, 23.9% Declining
• 53 New 52-Week Highs, 55 New Lows
• 39.6% of Issues Above 200-day Moving Average
• Average 14-Day RSI 46.4%
• Vix 15.3 -3.6%
• Total Put/Call .98 -3.9%
• TRIN/Arms .74 -37.9%

Friday Watch

Night Trading 

• Asian equity indices are -.5% to unch. on average.
• Asia Ex-Japan Investment Grade CDS Index 76.75 +1.75 basis points. 
• Asia Pacific Sovereign CDS Index 12.25 +.25 basis point
• Bloomberg Emerging Markets Currency Index 72.58 -.01%.
• FTSE 100 futures +.32%.
• S&P 500 futures -.28%.
• NASDAQ 100 futures -.34%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (BABA)/.88
• (AXL)/.83
• (CBOE)/1.28
• (CELG)/1.96
• (IDXX)/.92
• (ITT)/.73
• (NWL)/.26
• (VFC)/.66

Economic Releases

8:30 am EST

• The Change in Non-Farm Payrolls for April is estimated to rise to 192K versus 103K in March.
• The Unemployment Rate for April is estimated to fall to 4.0% versus 4.1% in March.
• Average Hourly Earnings MoM for April are estimated to rise +.2% versus a +.3% gain in March.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Dudley speaking, Fed's Quarles speaking, Fed's Kaplan speaking, Fed's Bostic speaking, Fed's George speaking, Eurozone retail sales report and the (FAST) April sales report could also impact trading today.

BOTTOM LINE:  Asian indices are mostly lower, weighed down by industrial and technology shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing modestly higher.  The Portfolio is 50% net long heading into the day.

Stocks Falling into Final Hour on Mueller Probe Worries, Earnings Outlooks, Yen Strength, Biotech/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 16.17 +1.25%

• Euro/Yen Carry Return Index 136.32 -.28%

• Emerging Markets Currency Volatility(VXY) 8.78 +.46%

• S&P 500 Implied Correlation 42.62 -1.96%

• ISE Sentiment Index 72.0 -19.10%
  

• Total Put/Call 1.06 +13.98%

• NYSE Arms 1.21 -19.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 62.36 +1.79%
  

• America Energy Sector High-Yield CDS Index 403.0 +1.5%

• European Financial Sector CDS Index 60.71 +4.17%

• Italian/German 10Y Yld Spread 120.75 -.25 basis point
  

• Asia Pacific Sovereign Debt CDS Index 12.17 +1.54%

• Emerging Market CDS Index 156.60 +4.91%
  

• iBoxx Offshore RMB China Corporate High Yield Index 149.33 +.01%

• 2-Year Swap Spread 26.75 +.25 basis point

• TED Spread 53.75 +2.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -3.0 +2.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.61 +.24%
• 3-Month T-Bill Yield 1.83% unch.
  

• Yield Curve 46.5 +.25 basis point

• China Iron Ore Spot 66.50 USD/Metric Tonne -.85%

• Citi US Economic Surprise Index 34.7 -1.2 point

• Citi Eurozone Economic Surprise Index -87.70 -9.7 points

• Citi Emerging Markets Economic Surprise Index -1.0 -2.4 points

• 10-Year TIPS Spread 2.17 unch.
  
• 100.0% chance of Fed rate hike at August 1 meeting, 100.0% chance at September 26 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -147  open in Japan 
• China A50 Futures: Indicating -17 open in China

• DAX Futures: Indicating +48 open in Germany

Portfolio: 

• Lower: On losses in my biotech/retail sector longs

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 50% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Value -.3%

Sector Underperformers:

• 1) Insurance -1.4% 2) Biotech -1.4% 3) I-Banking -.9%

Stocks Falling on Unusual Volume: 

• ESPR, MEDP, QURE, NXPI, AKAO, CAH, FND, CCK, BERY, SFM, HOLX, OSUR, CAVM, IO, QUAD, CBM, AIG, TSLA, SPOT, FEYE and CAR

Stocks With Unusual Put Option Activity:

• 1) SN 2) ADI 3) QEP 4) MCK 5) CAH

Stocks With Most Negative News Mentions:

• 1) AKAO 2) HABT 3) ESPR 4) AIG 5) ICON

Charts:

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