Bear Radar

Style Underperformer:

• Small-Cap Value +.5%

Sector Underperformers:

• 1) Networking -.2% 2) Oil Service unch. 3) Biotech +.1%

Stocks Falling on Unusual Volume: 

• NUAN, PBYI, OTEX, AXDX, GOLD, AYX, EXEL, CUTR, SYNA, LB, VIRT, SAIL, SPKE, TGI, AVYA, BT, JNCE and BOLD

Stocks With Unusual Put Option Activity:

• 1) LCI 2) MCK 3) YELP 4) SHLD 5) ROKU

Stocks With Most Negative News Mentions:

• 1) MDCA 2) LBM 3) ESPR 4) CATO 5) M

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Value +.8%

Sector Outperformers:

• 1) Steel +2.8% 2) Alt Energy +2.3% 3) Social Media +1.8%

Stocks Rising on Unusual Volume:

• ARMO, HEAR, AGS, USMV, UBNT, CVNA, SEDG, PBH, MIXT, GDOT, DPLO, NOBL, ARRY, WMGI, DVAX, AMCX, PAAS, RUN, RYTM, MDR, ASUR, PAM, WB, COT, CPA, UBNT, EVH, COLL, LCI, DAR, ATUS, UPLD, GDEN, STAA, RNG, MTCH, EVHC, AXGN, PEGI, SIEN, TTGT, FSLR, ATKR, BWP, ARRY, BOX, VDSI, RETA, LAUR, MDR and IAC

Stocks With Unusual Call Option Activity:

• 1) RUN 2) FIS 3) CCI 4) AFL 5) VMW

Stocks With Most Positive News Mentions:

• 1) HEAR 2) GDOT 3) FSLR 4) GRPN 5) LLY

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -1.6% Below 100-Day Average
• 11 Sectors Rising, 0 Sectors Declining
• 66.9% of Issues Advancing, 29.7% Declining
• 97 New 52-Week Highs, 21 New Lows
• 44.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 50.3%
• Vix 13.2 -1.6%
• Total Put/Call .75 -9.6%
• TRIN/Arms .98 +12.8%

Thursday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 77.50 unch. 

• Asia Pacific Sovereign CDS Index 13.0 unch.

• Bloomberg Emerging Markets Currency Index 71.92 +.04%.

• FTSE 100 futures +.58%.

• S&P 500 futures +.09%.

• NASDAQ 100 futures +.17%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (DDS)/2.77

• (DUK)/1.14

• (KLIC)/.40

• (MGA)/1.70

• (NKTR)/-.55

• (NWSA)/.05

• (NVDA)/1.65

• (PPC)/.53

• (RDFN)/-.44

• (SYMC)/.39

• (YELP)/.19

Economic Releases

8:30 am EST

• Initial Jobless Claims for last week are estimated to rise to 219K versus 211K the prior week.

• Continuing Claims are estimated to rise to 1800K versus 1756K prior. 

• The CPI MoM for April is estimated to rise +.3% versus a -.1% decline in March.

• The CPI Ex Food and Energy MoM for April is estimated to rise +.2% versus a +.2% gain in March.

• Real Avg. Hourly Earnings YoY for April.

 2:00 pm EST

• The Monthly Budget Statement for April is $212.0B versus -$208.7B in March.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The China PPI report, UK Manufacturing Production report, $17B 30Y T-Note auction, Bloomberg May US Economic Survey, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report, WasDe Crop report, (FLEX) analyst day, Citi Car of the Future Symposium, (WFC) investor day, (MGM) investor day and the (BKE)/(CATO)/(LB) monthly sales/guidance reports could also impact trading today.

BOTTOM LINE:  Asian indices are higher, boosted by technology 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 100% net long heading into the day.

Stocks Surging into Afternoon on Economic Optimism, Oil Gains, Yen Weakness, Energy/Tech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Above Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 13.87 -5.7%

• Euro/Yen Carry Return Index 135.36 +.42%

• Emerging Markets Currency Volatility(VXY) 8.86 +1.61%

• S&P 500 Implied Correlation 37.8 -5.6%

• ISE Sentiment Index 127.0 +12.4%
  

• Total Put/Call .82 unch.

• NYSE Arms .60 -36.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 61.35 -1.57%
  

• America Energy Sector High-Yield CDS Index 375.0 -2.97%

• European Financial Sector CDS Index 60.47 -.8%

• Italian/German 10Y Yld Spread 132.25 -1.75 basis points
  

• Asia Pacific Sovereign Debt CDS Index 13.03 +.39%

• Emerging Market CDS Index 159.68 -1.64%
  

• iBoxx Offshore RMB China Corporate High Yield Index 149.29 -.08%

• 2-Year Swap Spread 25.25 -.5 basis point

• TED Spread 49.0 -2.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -1.5 +2.0 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 71.85 -.01%
• 3-Month T-Bill Yield 1.88% +2.0 basis points
  

• Yield Curve 47.25 +1.5 basis points

• China Iron Ore Spot 65.95 USD/Metric Tonne +.08%

• Citi US Economic Surprise Index 27.7 -.5 point

• Citi Eurozone Economic Surprise Index -101.0 -2.1 points

• Citi Emerging Markets Economic Surprise Index .5 -.7 point

• 10-Year TIPS Spread 2.19 +3.0 basis points
  
• 100.0% chance of Fed rate hike at August 1 meeting, 100.0% chance at September 26 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +57  open in Japan 
• China A50 Futures: Indicating +28 open in China

• DAX Futures: Indicating +51 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 100% Net Long

Bear Radar

Style Underperformer:

• Small-Cap Value +.5%

Sector Underperformers:

• 1) Homebuilders -1.3% 2) Utilities -.9% 3) Airlines -.9%

Stocks Falling on Unusual Volume: 

• MIDD, CSTE, MXL, MB, CUTR, WB, BECN, LBTYA, KRO, TSU, SINA, PLNT, MNRO, COTY, HDP, HTZ, MNST, CARS and DOV

Stocks With Unusual Put Option Activity:

• 1) PAH 2) SC 3) EMB 4) HTZ 5) HMNY

Stocks With Most Negative News Mentions:

• 1) MNST 2) FTR 3) BECN 4) IRWD 5) PZZA

Charts:

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