Bear Radar

Style Underperformer:

• Small-Cap Growth +.2%

Sector Underperformers:

• 1) Utilities -2.3% 2) REITs -1.0% 3) Foods -.3%

Stocks Falling on Unusual Volume: 

• DOVA, COLL, PETS, TWTR, LX, ACAD and CVNA

Stocks With Unusual Put Option Activity:

• 1) LB 2) JCP 3) AKRX 4) STI 5) PEP

Stocks With Most Negative News Mentions:

• 1) TWTR 2) PG 3) PLT 4) FLO 5) DOVA

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Value +1.0%

Sector Outperformers:

• 1) Banks +2.4% 2) Oil Service +2.3% 3) Industrials +1.9%

Stocks Rising on Unusual Volume:

• HELE, NOBL, KURA, MOTS, ELVT, HSTM, EGAN, KEM, WHD, WYNN, SELB, ESTE, LPNT, ASML, FEMS, VC, TOT, LN, SYNT, PCOM, PSCH, CAG, WBC, SLP, GLOB and EPM

Stocks With Unusual Call Option Activity:

• 1) GRPN 2) AMGN 3) IGT 4) RF 5) STI

Stocks With Most Positive News Mentions:

• 1) HELE 2) PD 3) BIDU 4) UPS 5) COF

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -10.3% Below 100-Day Average
• 8 Sectors Rising, 3 Sectors Declining
• 63.2% of Issues Advancing, 33.1% Declining
• 101 New 52-Week Highs, 4 New Lows
• 50.5% of Issues Above 200-day Moving Average
• Average 14-Day RSI 49.4%
• Vix 12.9 -3.1%
• Total Put/Call .84 -15.2%
• TRIN/Arms .54 -13.5%

Monday Watch

Today's Headlines

Bloomberg:   

• May's Brexit Plan: The Details, The Overtures and The Meaning.  

• German Cars and American Steak: Early Trade War Victims Emerge.

• Pompeo Dismisses North Korea Criticism of Pyongyang Negotiations. 

• Death Toll Rises to 54 as `Historic' Floods Continue in Japan. Asia Stocks Signal Gain; Dollar Near Recent Lows. Asian stocks pointed to gains after a positive Friday session on Wall Street as investors watched for developments in trade tensions between China and the U.S. before earnings season gets underway later this week. The dollar held near a three-week low. Equity futures in Hong Kong, Japan and Australia nudged higher. The dollar comes off the back of its worst week since May and Treasury yields steadied close to the low end of their recent range as investors dissected a mixed U.S. jobs report on Friday and the trade rift with China ramped up a notch. The pound is in focus after the U.K. cabinet member in charge of Brexit discussions resigned from Prime Minister Theresa May’s government. Futures on Japan’s Nikkei 225 was flat in Singapore trading. Futures on Australia’s S&P/ASX 200 Index rose 0.4 percent. Hang Seng futures advanced 1 percent.

• Five Things You Need to Know to Start Your Day.

Wall Street Journal:   

• U.K. Minister in Charge of Brexit Negotiations Resigns.

• For China, Tech Giant Tencent is Both a National Champion and a Threat.

• Stock Buybacks Are Booming, but Share Prices Aren’t Budging.

• How Regulators Averted a Debacle in Credit-Default Swaps.

• Miss America Organization Split by Swimsuit Decision.

• Streaming TV or Movie? Why It Matters to Amazon’s Profits. 
  

• Fed Officials Debate Signal From Flattening Yield Curve.

• Strained NATO Alliance Prepares for Discord at Summit.

• Shipowners on Pace to Scrap $1 Billion in Oil Tankers This Year.

MarketWatch.com:

• Mark Hulbert: Why stock investors should rejoice over Trump’s second year in office.

Fox News:

• At least 4 of the 12 members on youth soccer team trapped in flooded cave have been rescued.

• Top Senate Dem tells colleagues to oppose Trump's Supreme Court pick, suggests sacrificing seats.

CNBC:

• Pompeo brushes off North Korean 'gangster' claim, pursues more talks.

• Silicon Valley firms are facing anger from a new source: Their own employees.

• Here are 2 groups that could blow away expectations when earnings season kicks off.

• How drone photography is carving a niche in construction.

• An energy watcher says oil may jump 10 percent this summer, and could drag gas along with it.

Zero Hedge:      

• "An Absolute Bombshell": Brexit Ministers David And Baker Unexpectedly Quit In Blow To Theresa May.

• Trump Freezes Billions In Obamacare Payments, Outraging Insurers.

• "Shelter In Place": All Hell Breaks Loose In Haiti As Violent Mobs Try To Murder Trapped American Tourists.

• Here Comes Q2 Earnings Season: Expect Stellar Numbers But Watch The Deterioration In Outlooks.

• "I Was There, I Know What Took Place": Pompeo Slams North Korea Criticism Of Denuclearization.

• "We Live In A State Of Emergency": Chicago Protesters Shut Down Highway To Demand Americans Disarm.

• Woman Exposed To Novichok Nerve Agent Has Died.

• Founder Of Movement For Disillusioned Democrats Refused Service At New York Electronics Store.

• Turkey's Erdogan Purges 18,000 Civil Servants With Decree.

• Large-Scale Riots Continue In France For 4th Night.

• US Rents Surge To Record Highs Led By Small-Town Texas Oil-Boom.

Business Insider:

• The coming 'labor shortage' in America is great news for workers.

• BANK OF AMERICA: Oil is now a 'game of chicken' and completely cutting off Iran could send it soaring to $120 a barrel.

• The Fed is thinking about throwing out a key recession indicator.

• The number of tech moguls chartering private jets to Sun Valley next week has become 'chaotic'. 

• How various industries are taking advantage of drones to increase efficiency and cut cost.

• How divers rescued the first 4 boys from the cave in Thailand.
  

Night Trading

• Asian indices are unch. to +.50% on average.

• Asia Ex-Japan Investment Grade CDS Index 95.50 unch.

• Asia Pacific Sovereign CDS Index 15.0 unch.

• Bloomberg Emerging Markets Currency Index 70.0 +.03%.

• FTSE 100 futures +.30%

• S&P 500 futures +.17%.

• NASDAQ 100 futures +.18%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• (HELE)/1.47

After the Close:

• None of note

Economic Releases

3:00 pm EST

• Consumer Credit for May is estimated to rise to $12.0B versus $9.262B in April.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Neel Kashkari speaking, German Exports report, (PSMT) monthly sales update and the (KKR) investor day could also impact trading today.

BOTTOM LINE: Asian indices are higher, boosted by industrial and technology 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 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 stable long-term rates, US economic optimism, diminished trade war fears, technical buying, less Emerging Markets debt angst and yen weakness. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 100% net long heading into the week.

Today's Headlines

Bloomberg: 

• Soybeans Post Record Rally With Demand Gain Overshadowing Trade War.

• These U.S. Industries Hired Most – and Least – in June.

• Stocks Surge on Tech Strength Despite Trade Fears: Markets Wrap.

Wall Street Journal:

• North Korea Calls U.S. Stance in Latest Talks ‘Regrettable’.

• Worsening Air Quality Adds to Pressure for Swift Cave Rescue.

• Early Tests Raise Alzheimer’s Hopes Despite Recent Failures  .

• Jobless Rate Rises as Steady Hiring Draws More to Labor Force.

• Economic Strength Gives Trump Leeway in China Trade Fight.

• Jockeying Begins to Take European Central Bank’s Reins From Draghi.

• The Selloff in Chinese Markets Isn’t Like 2015. It Looks Worse.

• ‘Where Have You Guys Been?’: Thai Cave Challenge Quickly Became a Trap.

Barron's:

• Had bullish commentary on  (TOL), (MGM), (WYNN), (MLCO), (RCL), (KORS), (LMT), (INTC) and (MPC).

Fox News:

• Trump’s team demands 'factual basis' for Mueller probe before agreeing to interview.

• North Korea accuses U.S. of pressuring them into abandoning nukes.

• Senator may have given big clue about Trump’s Supreme Court pick.

CNBC:

• A major factor behind the US-China trade war is winning at a $12 trillion technology — 5G.

• Iranian oil minister calls Trump's order to OPEC insulting.

• Tech giants could finally win in health care because they're sticking to what they know.

• Biogen shares soar on successful Alzheimer's drug trial again.

Zero Hedge: 

• First-Of-Its-Kind University Study Proves Without A Doubt That Your Phone Is Spying On You.

• The State Of New Jersey Just Signed Its Own Death Warrant.

• Top Chinese CEO Quotes Michelle Obama In Angry Response To Trump Trade War.

• China Threatened By "Vicious Circle Of Panic Selling" From Marketwide Margin Call.

• DOJ Refuses To Disclose FBI Activities Prior To "Official" Trump Investigation.

• California Millionaires Flee State After Tax Hike.

• Q2 2018's "Most Important" Charts.

• How The United Kingdom Became A Police State.

• Raytheon Is Developing A 100kW Tactical Laser For The US Army.

• The Gender Wage Gap At America’s Top Colleges.

• Twitter(TWTR) Purges 70 Million Accounts In Two Months, Equal To 20% Of Active Monthly Users.

• PG&E Plans To Cut Electricity To Some California Residents To Prevent Wildfires.

• Weekend Reading: The Japanification Of America Continues.

• 'War With China' Sparks Surge In Stocks As Policy Uncertainty Hits 'Brexit' Highs.

Business Insider:

• The viral #PlaneBae story is raising some serious questions about how creepy social media can be.