Bull Radar

Style Outperformer:

• Mid-Cap Value -1.4%

Sector Outperformers:

• 1) Gold & Silver +1.2% 2) Utilities +.6% 3) Pharma -.3%

Stocks Rising on Unusual Volume:

• LB, UVV, IOVA, CPRT, PAYS, CIR, WMS, TGT, GH, EVRI, MDT, MOD, ARRY, SNPS, PRO, AEM, ROLL, THO, DAVA, TLK and ARGX

Stocks With Unusual Call Option Activity:

• 1) DXC 2) NTAP 3) XLE 4) DNR 5) KTOS

Stocks With Most Positive News Mentions:

• 1) LB 2) TGT 3) MDT 4) WMS 5) BRC

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +23.3% Above 100-Day Average
• 2 Sectors Rising, 9 Sector Declining
• 16.4% of Issues Advancing, 81.2% Declining
• 58 New 52-Week Highs, 158 New Lows
• 50.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 44.6%
• Vix 17.3 +17.0%
• Total Put/Call 1.17 +25.8%
• TRIN/Arms .95 -25.2%

Thursday Watch

Night Trading 

• Asian equity indices are -1.0% to -.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 73.0 +1.75 basis points.

• China Sovereign CDS 50.5 +2.25 basis points.

• Bloomberg Emerging Markets Currency Index 65.64 -.10%.

• S&P 500 futures -.41%.

• NASDAQ 100 futures -.59%.

Morning Preview Links 

Earnings of Note 

Company/Estimate

Before the Open:

• (BBY)/.87
• (BJ)/.25
• (HRL)/.45
• (MDT)/1.47
• (RY)/2.21
• (SINA)/.37
• (TK)/-.09
• (TTC)/1.21
• (TD)/1.68
• (WB)/.62

After the Close:

• (ADSK)/.47
• (DECK)/.06
• (HPE)/.36
• (HPQ)/.51
• (INTU)/5.39
• (LGF/A)/.22
• (ROST)/1.12
• (SPLK)/-.14
• (VSAT)/.07

Economic Releases

8:30 am EST

• Initial Jobless Claims are estimated to rise to 215K versus 212K the prior week.
• Continuing Claims are estimated to rise to 1666K versus 1660K prior.
  

9:45 am EST

• The preliminary Markit US Manufacturing PMI report for May is estimated to rise to 52.7 versus 52.6 in April. 
• The preliminary Markit US Services PMI report for May is estimated to rise to 53.5 versus 53.0 in April.
  

10:00 am EST

• New Home Sales for April are estimated to fall to 675K versus 692K in March.
  

11:00 am EST

• The Kansas City Fed Manufacturing Activity Index for May is estimated to rise to 6.0 versus a reading of 5.0 in April.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Kaplan speaking, Fed's Barkin speaking, Fed's Daly speaking, Eurozone GDP/Manufacturing PMI reports, weekly EIA natural gas inventory report and the (WHR) investor day could also impact trading today.

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

Stocks Lower into Final Hour on China Trade Deal Concerns, Global Growth Worries, Oil Decline, Transport/Energy Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.5 -3.0%

• Euro/Yen Carry Return Index 127.87 -.2%

• Emerging Markets Currency Volatility(VXY) 8.67 -2.69%

• S&P 500 Implied Correlation 37.01 -.4%

• ISE Sentiment Index 54.0 -52.51%
  

• Total Put/Call .90 -10.0%

• NYSE Arms 1.26 +75.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 63.25 +.01%
  

• America Energy Sector High-Yield CDS Index 535.0 -.09%

• European Financial Sector CDS Index 84.74 +3.38%

• Italian/German 10Y Yld Spread 271.75 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 71.86 +.92%
  

• Emerging Market CDS Index 204.08 +2.04%
  

• iBoxx Offshore RMB China Corporate High Yield Index 162.92 +.02%

• 2-Year Swap Spread 5.75 -.5 basis point

• TED Spread 16.0 -1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -17.25 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 65.70 -.12%
• 3-Month T-Bill Yield 2.37% unch.

• Yield Curve 16.0 -1.0 basis point

• China Iron Ore Spot 101.08 USD/Metric Tonne +.16%

• Citi US Economic Surprise Index -29.0 +.7 point

• Citi Eurozone Economic Surprise Index -16.30 +.5 point

• Citi Emerging Markets Economic Surprise Index -33.10 unch.

• 10-Year TIPS Spread 1.80 -4.0 basis points
• 17.6% chance of Fed rate cut at July 31st meeting, 38.3% chance of cut at Sept. 18th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -23 open in Japan 
• China A50 Futures: Indicating -79 open in China

• DAX Futures: Indicating -12 open in Germany

Portfolio:

• Slightly Lower: On losses in my retail/industrial sector longs

• Disclosed Trades: None

• Market Exposure: 75% Net Long

Bear Radar

Style Underperformer:

• Small-Cap Value -.8%

Sector Underperformers:

• 1) Disk Drives -4.8% 2) Oil Service -3.8% 3) Gold & Silver -1.9%

Stocks Falling on Unusual Volume: 

• AMBA, PSTG, CRMT, JWN, LOW, URBN, QCOM and WLL

Stocks With Unusual Put Option Activity:

• 1) URBN 2) AET 3) LOW 4) NTAP 5) KWEB

Stocks With Most Negative News Mentions:

• 1) QCOM 2) JWN 3) LK 4) S 5)MNK

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +.1%

Sector Outperformers:

• 1) Video Gaming +1.7% 2) Utilities +1.2% 3) Software +.9%

Stocks Rising on Unusual Volume:

• ISCA, SE, JYNT, TGT, DAVA, AAP, NICE, DQ, SKY, UL, IPHI, IHG, ADI, WDAY, FLOW, CHRS, CTSH, PVH, EV, HXL, ELY, PPC, GLOB and ENTA

Stocks With Unusual Call Option Activity:

• 1) EMB 2) LOW 3) ITB 4) TGT 5) JWN

Stocks With Most Positive News Mentions:

• 1) GDOT 2) CLNE 3) AAP 4) TGT 5) SRE

Charts:

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