Morning Market Internals

NYSE Composite Index:

• Volume Running +22.6% Above 100-Day Average 
• 0 Sectors Declining, 11 Sectors Rising
• 78.9% of Issues Advancing, 16.6% Declining
• 8 New 52-Week Highs, 92 New Lows
• 22.6% of Issues Above 200-day Moving Average
• Average 14-Day RSI 34.2% 
• Bloomberg Global Risk-On/Risk-Off Index 4,001.0 +442.0 points
• Russell 1000: Growth/Value 15,021.0 +1.48%
  
• Vix 29.5 -7.3%
• Total Put/Call .95 -24.6%
• TRIN/Arms .40 -39.4%

Friday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 133.0 +3.25 basis points. 

• China Sovereign CDS  85.75 +2.5 basis points.
  

• Bloomberg Emerging Markets Currency Index 51.7 unch. 
• Bloomberg Global Risk-On/Risk Off Index 3,643.0 +85.0  points.
• Volatility Index(VIX) futures 30.9 -1.3%.
• Euro Stoxx 50 futures +.92%.

• S&P 500 futures +.71%.

• NASDAQ 100 futures +1.03%. 

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• None of note
  

After the Close:

• None of Note
  

Economic Releases

8:30 am EST

• The Import Price Index MoM for April is estimated to rise +.6% versus a +2.6% gain in March.
• The Import Price Index Ex-Petrol MoM for April is estimated to rise +.8% versus a +1.1% gain in March.
• The Export Price Index MoM for April is estimated to rise +.7% versus a +4.5% gain in March.
  

9:00 am EST

• Bloomberg May US Economic Survey.

10:00 am EST

• The Univ. of Mich. Consumer Sentiment for May is estimated to fall to 64.0 versus 65.2 in April.
• The Univ. of Mich. 1Y Inflation Expectations Index is estimated to rise to +5.5% versus expectations of a +5.4% gain in April.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Kashkari speaking and the Eurozone Industrial Production report could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are modestly higher, boosted by technology 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.

Bear Radar

Style Underperformer:

• Large-Cap Growth -1.8%

Sector Underperformers:

• 1) Gold & Silver -6.2% 2) Airlines -3.3% 3) Banks -2.7%

Stocks Falling on Unusual Volume: 

• LECO, BSTZ, ENTA, PFLT, FBRT, ACRE, GBDC, GOF, MSTR, EPR, MCW, PTLO, SGRY, EIX, CSQ, LNC, RYI, AAPL, MASS, SBNY, VST, HTGC, CLAR, GM, ZEN, LAND, JXN, RA, ABC, ECC, SI, FLYW and BROS
  

Stocks With Unusual Put Option Activity:

• 1) CIM 2) REI 3) INVH 4) PACB 5) TPR
  

Stocks With Most Negative News Mentions:

• 1) BROS 2) BA 3) ABC 4) MSTR 5) ASND
  

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth +1.3%

Sector Outperformers:

• 1) Alt Energy +3.9% 2) Homebuilders +3.3% 3) Retailers +3.0%

Stocks Rising on Unusual Volume:

• VTNR, GME, ETSY, PTON, CHWY, EYE, PHR, DDS, BSY, SCPL, EXFY, TWST, HLF, WEN, AHCO, UTZ, AMC, W, RLAY, VCYT, WRBY, GSHD, NCNO, RCUS, HRB, COIN, PLL, SQ, ARWR, ITOS and CFLT
  

Stocks With Unusual Call Option Activity:

• 1) KSS 2) RNG 3) VST 4) HZNP 5) TPR

Stocks With Most Positive News Mentions:

• 1) APP 2) SQSP 3) ETNB 4) TPR 5) DDS
  

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +44.3% Above 100-Day Average 
• 6 Sectors Declining, 5 Sectors Rising
• 55.9% of Issues Advancing, 40.8% Declining
• 3 New 52-Week Highs, 785 New Lows
• 23.4% of Issues Above 200-day Moving Average
• Average 14-Day RSI 35.3% 
• Bloomberg Global Risk-On/Risk-Off Index 3,550.0 -209.0 points
• Russell 1000: Growth/Value 14,953.50 +.77%
  
• Vix 32.6 +.06%
• Total Put/Call 1.14 +.88%
• TRIN/Arms .68 -38.2%

Thursday Watch

Evening Headlines

Bloomberg:       

• Major China Developer Sunac Misses Payment as Crisis Spreads.
• Shanghai Community Covid Spread Damps Chance of Easing Curbs.
• Goldman Joins Calls to Unleash More Rate Hikes in Emerging Asia.  
• Kim Orders Lockdown After North Korea Reports First Covid Case.
• Bitcoin ETFs Arrive in Australia Just as the Crypto Market Tanks.
• Stocks Extend Slide on Worries Over High Inflation: Markets Wrap.  
• Oil Holds Jump as US Fuel Stockpiles Slide Before Driving Season.
• Crypto Billionaires’ Vast Fortunes Are Destroyed in Weeks.
• Stablecoin Rescue Plan Gets Cold Shoulder From Big Investors.
• ‘Everything Broke’: Terra Goes From DeFi Darling to Death Spiral.  
• Instacart Files Confidentially for an IPO That Could Happen This Year.  
• Baby Formula Shortage Sparks Democratic Inquiry, GOP Attack   
• Scrutiny of Elon Musk’s Twitter Moves Intensifies in Washington.
• Prices in US Outstrip Forecasts in Sign of Inflation Persisting.
• Fed Should Hike to 5% or Higher to Curb Inflation, Dudley Says.

 Wall Street Journal:

• Grocery, Airfare Inflation Reached Historic Highs.
• Heard on the Street: Inflation Has a Long Way to Fall to Stop Being a Problem.
• Podcast: Why the Fed Risks Causing a Recession.
• How Prices Climbed in April.
• Inflation Stays in the Heights. The policy mix of blowout government spending and easy money is punishing workers.
• New York Leads America off a Renewable-Energy Cliff. Biden is following Andrew Cuomo’s example, with predictable results. 
• Latest: Ukraine Offers Exchange of Russian POWs for Safe Passage of Injured Mariupol Fighters.
• Stablecoin at Heart of Crypto Finance Plunges.
• Moderna Ousts Finance Chief in First Week on the Job.

Fox News:    

• Leftists lose it after Manchin slaps down Dems' bill guaranteeing abortion access before SCOTUS ruling.
• Why Biden adviser insists skyrocketing prices are part of 'effective strategy'.

CNBC.com:

• Inflation barreled ahead at 8.3% in April from a year ago, remaining near 40-year highs.
• Apple is no longer the world’s most valuable company.
• Bitcoin extends sell-off, Coinbase loses millions of users and LUNA crashes to $1: CNBC Crypto World.
• Student loan debt hits another record high despite payment forbearance.
• Controversial stablecoin UST — which is meant to be pegged to the dollar — plummets below 30 cents.

MarketWatch:        

• Beyond Meat’s stock slides 26% on weak sales, heads lower than IPO price for first time.
  
• Fed’s Bullard backs plan to hike rates by 50 basis points at each of next two meetings.
  
• As a baby formula shortage worsens, Abbott says it can get some product back on store shelves in July.  
• Coinbase CEO says company has ‘no risk of bankruptcy’.  
• 8 oil stocks that are still bargains for long-term investors.  
• Disney stock turns to a loss after warning about rough road ahead for streaming.

Zero Hedge: 

• Acting NIH Director Admits Appearance Of Conflict Of Interest In Secret Royalty Payments To Fauci, Scientists.  
• 18 Signs That Food Shortages Will Get A Lot Worse As We Head Into The Second Half Of 2022. 
• Garland Perjury? FBI Whistleblowers Say Parents Investigated With Counterterrorism "Threat Tag".
• Seniors Sacrifice Health And Comfort As Inflation Lowers Standard Of Living.
• UN Chief Joins Chorus Of Western Officials Saying 'No Chance' Of Ukraine-Russia Peace Deal Anytime Soon.
• There Goes The Housing Market.
• Major Trucking Firms Prepare For "Imminent Diesel Shortage In Eastern Half Of US".
• Wall Street's Biggest Bear Sees Much More Pain, S&P Dropping As Low As 3,350.
• Biden Disinformation Czar Demands Power To Edit Other People's Tweets.
• The Growing List Of US Companies Laying People Off.
• Watch: US Intel Chief Acts Dumbfounded When Senator Warns Of "Poking The Bear" In Ukraine.
• US Overdose Deaths Reach New Record As Fentanyl/Meth Use Soars.
• What Is DARPA Planning With The WEF?
• The Chinese Slowdown: Much More Than COVID.
• Bitcoin Breaks To Lowest Since 2020 As Stablecoin 'TerraUSD' Rebounds.
• Newsquawk Asia-Pac Market Open - Markets whipsawed post-CPI data.
• After Denial, BLM Co-Founder Admits To Holding Parties At $6M Mansion Bought With Donations.
• California To Hire "Water Cops" As Residents Ignore Newsom's Conservation Plea Amid Megadrought.
• Newsquawk US Market Wrap: Markets whipsaw to CPI bombshell as stock rout continues but Bonds hold strength.
• Bonds, Bullion, & Black Gold Bid As Bad-flation Batters Bitcoin & Big-Tech.

TheGatewayPundit.com: 

• After Angry Mobs Protest Justice Alito’s Home, Virginia Gov. Youngkin Sends Letter Asking Local Police to Set Security Perimeter Around Justices’ Homes.
• Biden Randomly Starts Screaming About Food Shortages… Currently Happening Under His Administration, Rips Into “MAGA Crowd” (VIDEO).
• Attorney General Garland Orders US Marshals to Beef Up Security for Supreme Court Justices Following Request by Maryland and Virginia Governors.
• Bill Clinton’s Special Advisor and Jeffrey Epstein Handler Who Flew on Lolita Express Dies at 59.
• Biden Spox Karine Jean-Pierre Laughs When Asked Who’s “Running Point” on Baby Formula Shortage (AUDIO).
• Millionaire Democrat Tells Politico Inflation Sob Story of Putting Back $9.99 Lb. Bacon as Wake Up Call to Out of Touch Dems.
• SHOCKING: Per New Mexico Auditors Dominion Voting Systems Can Fill-In Ballots – Uncovered 2019 New York State Audit Confirms This.
• Analysis of Federal Data Shows Increase in Covid-19 Deaths Occurred Among the Vaccinated – Experts Warn More Breakthrough Deaths to be Expected with More Americans Reaching Fully Vaxxed Status.
• The NIH Doled out $30 Billion Last Year in Grants and the Entity and Its Scientists Received an Estimated $350 million or More in Royalties from 2010 to 2020.

OpenVAERS:

• VAERS US COVID Vaccine Adverse Event Reports. 813,020 Reports(+2,850 from prior week) Through April 29th, 2022.
  

SKirsch.com:

• Using the MGH numbers with our own VAERS queries, we have 247 cases per million doses from the MGH study divided by 5.97 cases per million doses from VAERS. 247/5.97 = 41. This suggests that the VAERS under-reporting factor (URF) is 41X.

Covid-19(Data, Maps, Graphs):

• Our World in Data:  New Global Covid-19 Cases(7-day rolling average graphs). New US Covid Hospital Admissions/ICU Admissions/Deaths
  
• FT.com:  Fully Vaccinated by Country(graph). Global Lockdown Stringency Index(map).
• Bloomberg.com:  International Travel Restrictions.  Case Graphs by State.
  
• NYTimes.com:  County Trends and Clusters. Local ICU Occupancy.
  
• Brown School of Public Health:  Covid Severity by State/County(map).  US Hospital Capacity(region).
  
• CovidActNow:  Covid Severity/Infection Rate by Metro Area.
  
• KFF:  US Vaccinations by Race/Ethnicity.
  
• Carnegie Mellon: Covid-Like Symptoms in Community. Covid Symptom Searches on Google. Covid-Related Dr.Visits.  Restaurant Visits. Wearing Masks. (graphs)
  
• Safegraph.com:  Commerce Patterns(graphs).

Night Trading 

• Asian equity indices are -1.25% to -.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 129.75 -1.5 basis points. 

• China Sovereign CDS  83.25 -1.75 basis points.
  

• Bloomberg Emerging Markets Currency Index 51.9 +.03%. 
• Bloomberg Global Risk-On/Risk Off Index 3,719.0 -40.0 points.
• Volatility Index(VIX) futures 31.4 1.1%.
• Euro Stoxx 50 futures -1.6%.

• S&P 500 futures +.59%.

• NASDAQ 100 futures +.79%. 

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (BABA)/7.24
• (GOOS)/-.01
• (DDS)/5.87
  

After the Close:

• (AFRM)/-.41
• (POSH)/-.22
  

Economic Releases

8:30 am EST

• PPI Final Demand MoM for April is estimated to rise +.5% versus a +1.4% gain in March.
• PPI Ex Food and Energy MoM for April is estimated to rise +.6% versus a +1.0% gain in March.
• Initial Jobless Claims for last week is estimated to fall to 192K versus 200K the prior week.
• Continuing Claims is estimated to fall to 1368K versus 1384K prior.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Daly speaking, UK GDP report, 30Y T-Note auction, weekly EIA natural gas inventory report, (FSLY) investor day and the (NET) investor day could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are lower, weighed down by technology and consumer shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing modestly lower. The Portfolio is 25% net long heading into the day.