Bear Radar

Style Underperformer:

•   Small-Cap Growth -.1%

Sector Underperformers:

• 1) Gaming -2.0% 2) Road & Rail -1.9% 3) Alt Energy -1.7%

Stocks Falling on Unusual Volume: 

• ZYME, NKTR, DQ, JKS, CSIQ, BPMC, CTMX, GTHX, AGIO, FSLR, ADAP, NVCR, MRTX, CPE, VCEL, WYNN, TSRO, FANG and TTD

Stocks With Unusual Put Option Activity:

• 1) GGP 2) NKTR 3) UNG 4) SIG 5) EVHC

Stocks With Most Negative News Mentions:

• 1) JNCE 2) CSIQ 3) NKTR 4) FSLR 5) SM

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +.8%

Sector Outperformers:

• 1) Retail +1.8% 2) Airlines +1.6% 3) Social Media +1.4%

Stocks Rising on Unusual Volume:

• DCPH, IMMU, DNLI, GHDX, SOGO, BLUE, DLTH, SOHU, FIVN, IGV, TGTX, AAOI, PVAC, TLYS, WBAI, NBLX, CVRR, CGC, PERY, LCII, LPSN, CRTO, EOLS, HCM, CBPO, ZUO, FOSL, RCKT, LPSN, TITN, SNAP, WEX, CVI, EVH, DPLO, MDB, EGAN, DLTH and COLD

Stocks With Unusual Call Option Activity:

• 1) CPE 2) BYD 3) CA 4) EBAY 5) PANW

Stocks With Most Positive News Mentions:

• 1) GHDX 2) IMMU 3) MRK 4) CSS 5) WHR

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -6.4% Below 100-Day Average
• 9 Sectors Rising, 2 Sectors Declining
• 56.3% of Issues Advancing, 40.2% Declining
• 129 New 52-Week Highs, 25 New Lows
• 48.3% of Issues Above 200-day Moving Average
• Average 14-Day RSI 49.9%
• Vix 13.3 -1.4%
• Total Put/Call .81 -4.7%
• TRIN/Arms .91 -17.9%

Monday Watch

Night Trading

• Asian indices are unch. to +.75% on average.
• Asia Ex-Japan Investment Grade CDS Index 76.75 -.25 basis point.
• Asia Pacific Sovereign CDS Index 12.25 +.25 basis point.
• Bloomberg Emerging Markets Currency Index 70.92 +.06%.
• FTSE 100 futures +.18%
• S&P 500 futures +.01%.
• NASDAQ 100 futures +.05%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• None of note

After the Close:

• (PANW)/.95
• (NX)/.11

Economic Releases

10:00 am EST

• Factory Orders for April are estimated to fall -.5% versus a +1.6% gain in March.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Eurozone PPI report, Macquarie Metals/Mining/Materials Conference, Apple(AAPL) World Wide Developers Conference, Goldman Lodging/Gaming/Restaurant Conference, Keefe Bruyette Woods US Regional Bank Conference, Needham Automotive Tech Day, Evercore ISI Autonomous Driving/AI/Mobility Forum and the (ALV) investor day could also impact trading today.

BOTTOM LINE: Asian indices are mostly higher, boosted by technology and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the week.

Weekly Outlook

• Wall St. Week Ahead by Reuters. 
• Weekly Market Outlook by Yahoo. (video)
• Week Ahead by TheStreet.
• Stocks to Watch Next Week by Seeking Alpha.
• Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week modestly higher on diminishing geopolitical tensions, stable long-term rates, less European/Emerging Markets/US High-Yield debt angst, technical buying, economic optimism and yen weakness. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 75% net long heading into the week.

Today's Headlines

Bloomberg:    

• G-7 Finance Chiefs Condemn Trump Tariffs as Allies Rebel.  

• Deutsche Bank's Slow Bleed Continues as a Pivotal Month Begins.    

• Trump Eases Tone on North Korea With Singapore Summit Back On.

• Oil Bulls Lose Heart as Mega Producers Signal More Supplies.

• Russian Oil Output Again Tops OPEC Target Ahead of Vienna Talks.

• Mighty May Auto Sales Show U.S. Economy Cruising in Sweet Spot.

Wall Street Journal:

• American Companies Have Been Doing a Lot of Apologizing to China.

• The Overprotected American Child.

• Potential Summit Between Trump and Putin Is Being Discussed.

• Steel Tariffs Are Taxing Some American Companies.

Barron's:

• Had bullish commentary on (LNC), (AMGN), (HUM), (BSX), (UNH) and (BDX).

MarketWatch.com:

• Small caps offer stock-market leadership amid tumult.
• Here’s why stock-market bulls should cheer this data on junk-bond defaults.
• Hillary Clinton’s ‘a**-covering’ on bin Laden raid ‘rattled’ Joe Biden, new book says.

Fox News:

• Contents of Trump attorneys' letter to Special Counsel on Russia probe revealed.

CNBC: 

• As Trump talks trade and nukes, China quietly tightens its grip on the South China Sea.

• Mattis warns of 'consequences' if Beijing continues with 'intimidation and coercion'.

• FDA chief outlines new ways to speed up cancer drug approvals.

• The US economy suddenly looks like it's unstoppable.

• Why one market bull says he ignores geopolitical 'noise', and pays attention to earnings instead.

Zero Hedge:  

• FBI Spying On Trump Started In London, Earlier Than Thought, New Texts Implicate Obama White House.

• "Just Days Left" To Avoid Trade War France Says, As G-7 Condemn Trump.

• Trump-Kim Summit Back On; Will Take Place June 12 In Singapore; North Korea To Denuclearize.

• "Uncomfortable" Starbucks Employees Respond To Becoming "World's Biggest Public Toilet".

• Facebook(FB) Replaces User-Generated "Trending News" With "Breaking News" From 80 Undisclosed Publications.

• Oregon Governor Declares State Of Emergency After Public Discovers "Untreatable" Toxin-Laden Water.

• Three Critical Lessons From Europe's Recent Mini-Meltdown.

• Pelosi Pans "Strong" Jobs Numbers As "Meaningless... Bad For Middle-Class"

• DHS Confirms "Rogue" Cellular Eavesdropping Device May Have Been Used Near White House.

• Welcome To Bitcointopia: A Group Of Cryto-Nerds Are Trying To Secede From America.

• Google(GOOGL) Abandons Pentagon's AI-Drone 'Project Maven' After Employee Revolt.

• MSNBC Refuses To Fire Joy Reid Despite Anti-Semitic Blog Posts And 2017 Endorsement Of Nazi Website.

• Weekend Reading: Just A Pause That Refreshes?

• US Stocks, Bonds, Dollar Bid After Quitaly Chaos, Rajoy's Rout, & Trade War Turmoil.

Business Insider:

• There’s growing concern over Tesla’s finances — and Wall Street's convinced the company will need to raise money soon.

• Half of the teens who think social media has a negative effect on people say it's because of bullying, rumors, or harmed relationships. 

• The US military is reportedly looking to install anti-missile defenses in Germany — and it's sure to rankle Russia.

• The Canadian government is slapping the US with massive tariffs — and they might be even bigger than expected.

• 'Truly just devastating stories': The bleak outlook from inside Venezuela's deepening crises.

The Telegraph:

• Comment: The best way to deal with US tariffs is to abolish all of our own.