Friday, June 19, 2020

Morning Market Internals

NYSE Composite Index:

Thursday, June 18, 2020

Friday Watch

Evening Headlines
Bloomberg:            
  • Asian Stocks Edge Higher; Dollar Holds Advance: Markets Wrap. Asian stocks traded mixed early Friday trading after a muted session on Wall Street saw shares end little changed. The dollar held its overnight gain. Early gains in Japan gave way to a modest decline, with volumes down about a third. South Korean shares also retreated, while Australia saw gains. S&P 500 futures ticked up after a volatile U.S. session that saw weekly jobless claims stay above one million, with volume light ahead of Friday’s option expiry. Meanwhile, Florida’s new coronavirus cases rose faster than the past week’s average and Texas hospitalizations climbed for a record seventh straight day. Crude oil nudged higher. Futures on the S&P 500 advanced 0.2% as of 9:31 a.m. in Tokyo. The gauge rose 0.1% on Thursday. Japan’s Topix index fell 0.3%. South Korea’s Kospi index slid 0.6%. Australia’s S&P/ASX 200 Index added 0.4%.
Wall Street Journal:
Fox News:
CNBC.com:
Zero Hedge:    
The Epoch Times:
John Hopkins University:
Night Trading 
  • Asian equity indices are -.75% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 85.75 +1.25 basis points.
  • China Sovereign CDS 49.25 unch.
  • Bloomberg Emerging Markets Currency Index 60.30 +.01%.
  • FTSE 100 futures +.15%.
  • S&P 500 futures +.06%.
  • NASDAQ 100 futures +.09%.
Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:
  • (KMX)/.14
  • (JBL)/.43
After the Close:
  • None of note
Economic Releases 
8:30 am EST
  • The Current Account Deficit for 1Q is estimated at -$102.9B versus -$109.8B in 4Q.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Powell speaking, Fed's Quarles speaking and the Russia rate decision could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are mostly lower, weighed down by financial and consumer shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.

Stocks Lower into Final Hour on Rising Geopolitical Tensions, Coronavirus 2nd Wave Worries, Increasing Biden Presidency Odds, Homebuilding/Gaming Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 33.2 -.9%
  • Euro/Yen Carry Return Index 124.14 -.44%
  • Emerging Markets Currency Volatility(VXY) 10.96 +1.11%
  • S&P 500 Implied Correlation 70.2 +3.8%
  • ISE Sentiment Index 97.0 -6.0 points
  • Total Put/Call .82 +7.9%
  • NYSE Arms 1.20 -30.6%
Credit Investor Angst:
  • North American Investment Grade CDS Index 73.75 +3.84%
  • US Energy High-Yield OAS 922.14 +1.23%
  • European Financial Sector CDS Index 76.48 +3.0%
  • Italian/German 10Y Yld Spread 178.75 -2.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 85.75 +1.5%
  • Emerging Market CDS Index 196.45 -4.45%
  • iBoxx Offshore RMB China Corporate High Yield Index 169.15 -.07%
  • 2-Year Swap Spread 6.0 -.5 basis point
  • TED Spread 16.0 +1.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -11.75 -1.75 basis points
  • MBS  5/10 Treasury Spread  114.0 unch.
  • IHS Markit CMBX BBB- 6 71.5 +1.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.31 -.66%
  • 3-Month T-Bill Yield .15% unch.
  • Yield Curve 51.75 -1.75 basis points
  • China Iron Ore Spot 100.88 USD/Metric Tonne +.84%
  • Citi US Economic Surprise Index 126.70 -13.3 points
  • Citi Eurozone Economic Surprise Index -192.0 +4.3 points
  • Citi Emerging Markets Economic Surprise Index -3.9 -1.3 points
  • 10-Year TIPS Spread 1.26 +1.0 basis point
  • 100.0% chance of no change at Sept. 16 meeting, 100.0% chance of no change at Nov. 5th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +25 open in Japan 
  • China A50 Futures: Indicating -54 open in China
  • DAX Futures: Indicating -7 open in Germany
Portfolio:
  • Slightly Lower: On losses in my medical/industrial sector longs
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

Bear Radar

Style Underperformer:
  • Mid-Cap Value -.4%
Sector Underperformers:
  • 1) Homebuilders -2.2% 2) Airlines -1.7% 3) Steel -1.6%
Stocks Falling on Unusual Volume: 
  • IRM, ANET, GRPN, CXW, BV, NGM, KR, FMCI, BIIB, SONO and CRY
Stocks With Unusual Put Option Activity:
  • 1) KR 2) MET 3) BIIB 4) KMX 5) X
Stocks With Most Negative News Mentions:
  • 1) BIIB 2) BGG 3) CCL 4) TWTR  5) PFG
Charts:

Bull Radar

Style Outperformer:
  • Mid-Cap Growth +.3%
Sector Outperformers:
  • 1) Energy +1.5% 2) Alt Energy +1.4% 3) Software +1.1%
Stocks Rising on Unusual Volume:
  • ENPH, VERI, ABM, IBTX, NLTX, EDIT, WEX, CLDR, SCHN, VMD, PRVB, GPRE, NKLA, SWBI and ACTT
Stocks With Unusual Call Option Activity:
  • 1) PTEN 2) RSX 3) KNX 4) EDIT 5) KR
Stocks With Most Positive News Mentions:
  • 1) SELB 2) LEE 3) PYPL 4) CHD 5) KKR
Charts:

Mid-Day Market Internals

NYSE Composite Index: