Bull Radar

Style Outperformer:

• Mid-Cap Growth +.2%

Sector Outperformers:

• 1) Utilities +.8% 2) Banks +.7% 3) Defense +.5%

Stocks Rising on Unusual Volume:

• ORIG, AOBC, TLYS, CRON, BGSF, CGC, PDD, ABUS, APTX, LOCO, DNKN, OMER, CDZI, ULTA, IRMD, BAND, AMD, LULU, KNSA, MBUU, DLTH, PCG, HQY, GPRK and SFIX

Stocks With Unusual Call Option Activity:

• 1) OMER 2) FTV 3) XLK 4) COG 5) LUV

Stocks With Most Positive News Mentions:

• 1) RRD 2) TWLO 3) MNKD 4) QCOM 5) BCRX

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -1.4% Below 100-Day Average
• 6 Sectors Rising, 5 Sectors Declining
• 42.3% of Issues Advancing, 52.8% Declining
• 97 New 52-Week Highs, 61 New Lows
• 54.7% of Issues Above 200-day Moving Average
• Average 14-Day RSI 49.2%
• Vix 13.5 +5.2%
• Total Put/Call .82 -20.4%
• TRIN/Arms 1.22 +3.1%

Tuesday Watch

Night Trading

• Asian indices are -.25% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 84.0 +2.5 basis points.
• Asia Pacific Sovereign CDS Index 10.75 +.25 basis point.
• Bloomberg Emerging Markets Currency Index 65.38 -.03%.
• FTSE 100 futures -.29%
• S&P 500 futures +.07%.
• NASDAQ 100 futures +.06%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• (CASY)/1.65
• (CONN)/.41

After the Close:

• (COUP)/-.09
• (HQY)/.28
• (RH)/1.75
• (WDAY)/.25

Economic Releases

10:00 am EST

• Construction Spending MoM for July is estimated to rise +.5% versus a -1.1% decline in June.
• ISM Manufacturing for August is estimated to fall to 57.7 versus 58.1 in July.
• ISM Prices Paid for August is estimated to fall to 69.5 versus 73.2 in July.

Afternoon

• Wards Total Vehicle Sales for August are estimated to rise to 16.88M versus 16.68M in July.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Evans speaking, Supreme Court Confirmation Hearings, Eurozone PPI report, Barclays Consumer Staples Conference and the HC Wainwright Investment Conference could also impact trading today.

BOTTOM LINE: Asian indices are slightly lower, weighed down by consumer and metal/mining shares in the region. I expect US stocks to open modestly lower and to rally 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)

• Stocks to Watch Next Week by Seeking Alpha.

• Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week mixed as oil strength, economic optimism and short-covering offset trade war fears, emerging markets currency/debt angst and profit-taking. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 75% net long heading into the week.

Today's Headlines

Bloomberg:    

• Asia Stocks Face Mixed Start; Dollar Holds Gains: Markets Wrap. Asian stocks were set for a mixed start to the week as the dollar held its recent rally. The pound retreated as U.K. Prime Minister Theresa May ruled out a second Brexit vote. Equity futures edged higher in Australia, were largely flat in Japan, while Hong Kong was poised for small declines. The S&P 500 closed flat Friday as gains in consumer shares offset losses in energy stocks, while Treasuries slipped. U.S. markets are closed for Labor Day Monday. Futures on Japan’s Nikkei 225 were flat in Singapore. Futures on Hong Kong’s Hang Seng were down 0.5 percent. Futures on Australia’s S&P/ASX 200 index edged up 0.4 percent.  

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

Wall Street Journal:  

• GOP’s Big Challenge in November: How to Reach Beyond Trump’s Base.

• China Selloff Casts Foreigners in Unusual Role as Market Bulls. 

• Companies Ramp Up Worker-Retraining Efforts. 

• Billionaire Head of China’s JD.Com Arrested in Minnesota.

MarketWatch.com: 

• The rampaging U.S. economy is pushing unemployment to lowest level since 1960s.

Fox News:

• Paul, Collins among handful of senators who hold key to Trump’s Supreme Court pick Kavanaugh.  

• Lawmakers defend Meghan McCain after she targets Trump in eulogy.

CNBC:  

• Inside Alibaba's new kind of superstore: Robots, apps and overhead conveyor belts.  

• Facebook's(FB) 'family' is getting smaller, as several executives head for the exits in a turbulent year.

• Scammers are tricking people out of enormous payments as they're about to close on a house.  

• How 'Clash Royale' could play a big role in boosting mobile esports' already explosive growth.

• No profit? No problem. Investors keep snapping up loss-making companies.

Zero Hedge: 

• Godfrey Bloom: "Get Ready For A Fake Brexit That Will Fool No One". 

• Trump Allies Fume Over "Political Hand-Grenades" At Hyper-Partisan McCain Funeral.

• After Two Failures, Whitney Tilson Is Back With Another Attempt At Managing Your Money.   

• Progressives: The Real World Versus Neverland.

Business Insider:

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

Today's Headlines

Bloomberg:  

• Trump Slams Canada’s ‘Decades of Abuse’ After Nafta Talks Stall.

• Nafta Crunch Caps a Pretty Dreadful Week for Justin Trudeau.

• Macau Gaming Revenue Grew 17% in August, Beating Forecasts.  

• Americans Are Grilling More Steaks for Labor Day With the Economy Humming.

• Vacation Is Over and Stocks Keep Playing Havoc With Predictions.

• Storms Brewing in Caribbean May Target Gulf of Mexico Next Week.

• Welcome Back From Summer: What to Watch for in Asian Stocks.

Wall Street Journal:

• Trump Says ‘Canada Will Be Out’ Without ‘Fair Deal’ on Nafta.

• Kavanaugh’s Record: Push to Restrain the Regulatory State.

• Why Milk Matters in U.S.-Canada Trade Feud.

• Art of the Trade Deal: Antiquities, Paintings Caught in U.S.-China Fight.  

• Retailers Looking to Test Run Stores See Opportunity in Short-Term Leases.

• Military Believes Trump’s Afghan War Plan Is Working  

• Atlanta’s Growing Pains Are Getting Worse.

Barron's:

• Had bullish commentary on (T), (VZ), (BBY), (KSU) and (AMZN).

CNBC:

• Trump order seeks to ease retirement account rules for required withdrawals.

• US accuses China of 'super aggressive' spy campaign on LinkedIn.

• Automakers breathe a sigh of relief at Trump's approach to renegotiating NAFTA.

Zero Hedge: 

• Meghan McCain Takes Shot At Trump, "Cheap Rhetoric" During Father's Eulogy.

• California Democrats Boycott Of In-N-Out Backfires Spectacularly.

• Venezuela – An Economic Catastrophe In Images.

• Einhorn's Greenlight Crashes 25% YTD After 8% Drop In August. 
  

• Trump Notifies Congress He Will Sign Trade Pact With Mexico, Keep Talking To Canada.  

• Russian Oligarch And Putin Pal Admits To Collusion, Secret Meetings.

• Iran Stuns Enemies By Moving Ballistic Missiles To Iraq - Within Easy Striking Distance of Tel Aviv.  

• World Stocks Have Underperformed The US By The Most Since The Financial Crisis.

• Commercial Real Estate Paying The Lowest Return Since Before The Housing Crisis.

• Freeland Confirms US, Canada Trade Talks To Continue, Sees "Win-Win-Win Deal Within Reach".

• Weekend Reading: Are Emerging Markets Sending A Signal.

• Nasdaq Surges To Best August Since 2000, Bonds Bid As EM Collapses.

Business Insider:

• A notorious short-seller has come out swinging against a popular marijuana stock.

• McDonald's is taking short term pain for long term gain.