Bear Radar

Style Underperformer:

• Large-Cap Growth -1.5%

Sector Underperformers:

• 1) Internet -3.5% 2) Software -2.6% 3) Gaming -2.2%

Stocks Falling on Unusual Volume: 

• IGV, QTEC, CNC, CONN, GOOG, FB, IMMU, HPT, QFIN, BPMC, FANH, ALTR, CYBR, PCTY, CDAY, SKYY, ENB, FNKO, AMZN, GTHX, DOCU, PHI, TRHC, PFPT, BYD, ZUO, CDAY, GDDY, AMZN, CARS and RPD

Stocks With Unusual Put Option Activity:

• 1) CELG 2) ADP 3) AMBA 4) PRU 5) EWH

Stocks With Most Negative News Mentions:

• 1) FTD 2) ADRO 3) GOOGL 4) CNC 5) FB

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Value +.4%

Sector Outperformers:

• 1) Gold & Silver +3.8% 2) Biotech +1.6% 3) Ag +1.5%

Stocks Rising on Unusual Volume:

• CY, EE, MRTX, CODI, QURE, DD, NKTR, IOVA, PVH, DCPH, KL, AMGN, BVN, DQ and USLV

Stocks With Unusual Call Option Activity:

• 1) DOCU 2) MRTX 3) CAL 4) KWEB 5) CARS

Stocks With Most Positive News Mentions:

• 1) GNCA 2) AMGN 3) TROX 4) HMI 5) URI

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
• 9 Sectors Rising, 2 Sectors Declining
• 71.6% of Issues Advancing, 25.3% Declining
• 58 New 52-Week Highs, 81 New Lows
• 41.4% of Issues Above 200-day Moving Average
• Average 14-Day RSI 39.0%
• Vix 18.2 -2.9%
• Total Put/Call 1.19 +1.7%
• TRIN/Arms 1.1 -11.3%

Monday Watch

Night Trading

• Asian indices are -.75% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 81.0 +4.25 basis points.
• China Sovereign CDS 61.25 +4.25 basis points.
• Bloomberg Emerging Markets Currency Index 65.98 +.14%.
• FTSE 100 futures -.46%.
• S&P 500 futures -.57%.
• NASDAQ 100 futures -.78%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (BOX)/-.05
• (COUP)/-.04

After the Close:

• None of note

Economic Releases
10:00 am EST

• The ISM Manufacturing Index for May is estimated to rise to 53.0 versus 52.8 in April.
• The ISM Prices Paid Index for May is estimated to rise to 51.0 versus 50.0 in April.
• Construction Spending MoM for April is estimated to rise +.5% versus a -.9% decline in March.

Afternoon

• Wards Total Vehicle Sales for May is estimated to rise to 16.8M versus 16.4M in April.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The President's visit to the UK, Fed's Bullard speaking, China Manufacturing PMI report, Eurozone PMI report, Goldman Lodging/Gaming/Restaurant/Leisure Conference, (AAPL) WWDC 2019 and the BIO International Convention could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and industrial shares in the region. I expect US stocks to open lower and to maintain losses into the afternoon.  The Portfolio is 25% 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 China/Mexico tariff concerns, global growth fears and European/Emerging Markets/US High-Yield Debt Angst offset bargain-hunting, technical buying and more dovish FOMC commentary. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 25% net long heading into the week.

Today's Headlines

Bloomberg: 

• China Targets FedEx in ‘Warning’ to U.S.

• China to Lay out Position on Trade Talks on Sunday in Beijing.

• Trump Ends India’s Trade Designation as a Developing Nation.

• S&P 500 Closes Out Second-Worst May Since 1960s.

• Google(GOOGL) Is in U.S. Antitrust Sights as DOJ Gears Up for Probe.

• China Threatens Sweeping Blacklist of Firms After Huawei Ban.

• Crude Posts Worst May in Seven Years as Trade-War Anxiety Builds.

• Block.one Launches Social Media App as Facebook Preps Own Coin.

Wall Street Journal:

• Trump’s Tariffs Threat Prompts Outcry From Industry, Lawmakers.

• A Flood of Regulations Threatens to Leave California Dry.

• iPhone Privacy Is Broken…and Apps Are to Blame.

• Congress Can’t Outsource Impeachment.

• Factories Stall on Strong Dollar, Trade Tensions.

• U.S. Will Face China’s Behavior in Asia Directly, Defense Secretary Says.

Barron's:

• Had bullish commentary on (HCP), (AVGO), (WELL), (Z), (GIS) and (VTR).

MarketWatch.com:

• China Holds Rare Earths Hostage, but Don’t Panic.

Fox News:

• Police identify all 12 victims of Virginia Beach shooting, describe shooter as engineer for city.

• Here’s the real thing stopping Democrats from impeaching Trump.

CNBC: 

• Mexico won’t retaliate against Trump tariffs until threat seems more serious, trade official says.

• Luxury online reseller The RealReal files for IPO.

• Mnuchin and Lighthizer opposed Trump tariffs on Mexico, source says.

• Business groups are considering legal action against the White House over Mexico tariffs.

Zero Hedge:

• Trump Administration Deploys Dozens Of DHS Agents To Guatemala-Mexico Border.

• 11 Killed In Shooting At Virginia Beach Municipal Center; Suspect Confirmed Dead.

• Obama Lies About US Gun Laws - Then Gets Awkward Applause.

• Leftist Professor Who Nailed Last 9 Elections Says Trump Wins 2020 Unless Democrats Impeach.

• Trump Declares War On Silicon Valley: DoJ Launches Google Anti-Monopoly Probe.

• As Quant Funds Shutter, Stevie Cohen Doubles Down.

• Are You A Petty Criminal? Canada Just Stopped Prosecuting Minor Crimes.

• Heineken Balks After Baseball Team Depicts AOC As "Enemy Of The People" In Patriotic Ad.

• Bernie Supporters Say DNC Sabotaging Him Again By Promoting Biden.

• Trade Turmoil Wipes $5 Trillion Off Global Stocks In Worst May Since 2010.