Bull Radar

Style Outperformer:

• Mid-Cap Growth +1.6%

Sector Outperformers:

• 1) Education +2.5% 2) Insurance +1.9% 3) Defense +1.8%

Stocks Rising on Unusual Volume:

• EVER, SHAK, DCO, PODD, ALLK, USMV, IGV, PDP, PUK, TTWO, USFD, TDG, BMCH, CIB, ITRI, LCII, GSB, FBM, SERV, LGIH, BWXT, WEN, JCOM, DIOD, VCEL, USFD, ANSS, MTZ and FBM

Stocks With Unusual Call Option Activity:

• 1) SIG 2) KNX 3) RF 4) MNK 5) SHAK

Stocks With Most Positive News Mentions:

• 1) TWTR 2) GTT 3) EFX 4) IEP 5) NGHC

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +30.3% Above 100-Day Average
• 8 Sectors Rising, 3 Sectors Declining
• 65.1% of Issues Advancing, 31.9% Declining
• 60 New 52-Week Highs, 197 New Lows
• 48.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 39.3%
• Vix 21.5 -12.8%
• Total Put/Call 1.09 -13.5%
• TRIN/Arms 1.42 -18.4%

Tuesday Watch

Night Trading 

• Asian equity indices are -2.25% to -1.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 71.75 +4.5 basis points.

• China Sovereign CDS 56.25 +1.75 basis points.

• Bloomberg Emerging Markets Currency Index  65.95 -.06%.

• S&P 500 futures -1.59%.

• NASDAQ 100 futures -1.77%.

Morning Preview Links 

Earnings of Note 

Company/Estimate

Before the Open:

• (AGN)/4.34
• (BDX)/3.06
• (DF)/-.17
• (DISCA)/.99
• (DUK)/.98
• (EMR)/.94
• (ENR)/.46
• (EXPD)/.81
• (JLL)/2.33
• (MOS)/.29
• (PBI)/.17
• (REGN)/5.42
• (SAGE)/-3.35
• (ZTS)/.82

After the Close:

• (ANDE)/.62
• (HTZ)/.50
• (MTCH)/.43
• (MCHP)/1.38
• (PZZA)/.30
• (DIS)/1.74
• (WYNN)/1.39

Economic Releases

10:00 am EST

• JOLTS Job Openings for June is estimated to rise to 7326 versus 7323 in May.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The German Factory Orders report, $38B 3Y T-Note auction, weekly US retail sales reports, UBS Financial Services Conference, Oppenheimer Tech/Internet/Communications Conference, Jefferies Industrials Conference, Canaccord Growth Conference and the (ORLY) analyst day could also impact trading today.

BOTTOM LINE: Asian indices are sharply lower, weighed down by commodity and technology shares in the region. I expect US stocks to open sharply lower and to maintain losses into the afternoon. The Portfolio is 25% net long heading into the day.

Monday Watch

Night Trading

• Asian indices are -2.0% to -1.0% on average.
• Asia Ex-Japan Investment Grade CDS Index 64.75 +3.0 basis points.
• China Sovereign CDS 50.0 +4.0 basis points.
• Bloomberg Emerging Markets Currency Index 66.27 -.28%.
• FTSE 100 futures -.93%.
• S&P 500 futures -.72%.
• NASDAQ 100 futures -.94%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (CARS)/.43
• (DO)/-.88
• (JEC)/1.24
• (L)/.75
• (SOHU)/-1.15

After the Close:

• (CAR)/.73
• (CZR)/-.05
• (KLAC)/1.75
• (MAR)/1.56
• (SHAK)/.23
• (TTWO)/.04
• (THC)/.44

Economic Releases

10:00 am EST

• The ISM Non-Manufacturing Index for July is estimated to rise to 55.5 versus 55.1 in June.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China Services/Manufacturing PMI reports and the Commerce Dept. Hearing for $21B in EU tariffs could also impact trading today.

BOTTOM LINE: Asian indices are lower, weighed down by industrial and technology 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.
• Global Economy Week by Bloomberg.
• 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 European/Emerging Markets/US High-Yield Debt Angst, technical selling and China trade deal concerns offset earnings optimism, short-covering and bargain-hunting. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 25% net long heading into the week.

Friday Watch

Night Trading 

• Asian equity indices are -1.5% to -.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 62.0 +4.0 basis points.

• China Sovereign CDS 45.75 +5.75 basis points.

• Bloomberg Emerging Markets Currency Index  66.67 -.02%.

• S&P 500 futures -.27%.

• NASDAQ 100 futures -.41%.

Morning Preview Links 

Earnings of Note 

Company/Estimate

Before the Open:

• (AXL)/.57
• (CVX)/1.82
• (XOM)/.73
• (HMC)/117.85
• (ITT)/.89
• (LYB)/2.84
• (NWL)/.36
• (STX)/.84

After the Close:

• None of note

Economic Releases

8:30 am EST

• The Change in Non-Farm Payrolls for July is estimated to fall to 165K versus 224K in June. 
• The Unemployment Rate for July is estimated to fall to 3.6% versus 3.7% in June.
• Average Hourly Earnings MoM for July is estimated to rise +.2% versus a +.2% gain in June.
• The Trade Balance for June is estimated at -$54.6B versus -$55.5B in May.

10:00 am EST

• Factory Orders for June are estimated to rise +.7% versus a -.7% decline in May.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Eurozone PPI report could also impact trading today.

BOTTOM LINE: Asian indices are lower, weighed down by commodity and technology 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.