Style Outperformer:
Sector Outperformers:
- 1) Biotech +1.12% 2) Alt Energy +.92% 3) Retail +.59%
Stocks Rising on Unusual Volume:
- PCYC, CLDX, YOKU, NTLS, CCIH, CMLS, IMMR, KNX, BBBY, JKS, DANG, WLT, FUL, HALO, GDOT, DMND, JCP and SNTS
Stocks With Unusual Call Option Activity:
- 1) KSS 2) YHOO 3) NIHD 4) BIG 5) CAG
Stocks With Most Positive News Mentions:
- 1) FUL 2) JBL 3) APC 4) TSCO 5) WBMD
Charts:
Night Trading
- Asian equity indices are -.75% to +.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 149.0 -2.0 basis points.
- Asia Pacific Sovereign CDS Index 117.50 +1.5 basis points.
- NASDAQ 100 futures +.29%.
Morning Preview Links
Earnings of Note
Company/Estimate
Economic Releases
8:30 am EST
- Initial Jobless Claims are estimated to rise to 325K versus 309K the prior week.
- Continuing Claims are estimated to rise to 2818K versus 2787K prior.
- 2Q GDP is estimated to rise +2.6% versus a prior estimate of a +2.5% gain.
- 2Q Personal Consumption is estimated to rise +1.9% versus a prior estimate of a +1.8% gain.
- 2Q GDP Price Index is estimated to rise +.8% versus a prior estimate of a +.8% gain.
- 2Q Core PCE is estimated to rise +.8% versus a prior estimate of a +.8% gain.
10:00 am EST
- Pending Home Sales for August are estimated to fall -1.0% versus a -1.3% decline in July.
11:00 am EST
- Kansas City Fed Manufacturing Activity for September is estimated at 8.0 versus 8.0 in August.
Upcoming Splits
Other Potential Market Movers
- The Fed's George speaking, Fed's Stein speaking, Fed's Kocherlakota speaking, China Industrial Profits Report, Japan CPI, UK GDP Report, weekly Bloomberg Consumer Comfort Index and the (ORCL) Financial Analyst Meeting could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by real estate
and technology shares in the region. I expect US stocks to open
mixed and to weaken into the afternoon, finishing modestly lower. The
Portfolio is 25% net long heading into the day.
Broad Equity Market Tone:
- Advance/Decline Line: About Even
- Sector Performance: Mixed
- Market Leading Stocks: Performing In Line
Equity Investor Angst:
- Volatility(VIX) 14.06 -.14%
- Euro/Yen Carry Return Index 138.88 +.13%
- Emerging Markets Currency Volatility(VXY) 9.97 +1.32%
- S&P 500 Implied Correlation 47.28 -2.09%
- ISE Sentiment Index 86.0 -3.37%
- Total Put/Call .96 +10.34%
Credit Investor Angst:
- North American Investment Grade CDS Index 79.51 +.69%
- European Financial Sector CDS Index 136.28 -.63%
- Western Europe Sovereign Debt CDS Index 84.68 -1.53%
- Emerging Market CDS Index 275.22 +.15%
- 2-Year Swap Spread 13.0 -2.25 basis points
- TED Spread 23.25 -.75 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -4.75 -1.0 basis point
Economic Gauges:
- 3-Month T-Bill Yield .01% unch.
- Yield Curve 228.0 -4 basis points
- China Import Iron Ore Spot $133.80/Metric Tonne +.83%
- Citi US Economic Surprise Index 47.0 +.38 point
- Citi Emerging Markets Economic Surprise Index 5.50 +.4 point
- 10-Year TIPS Spread 2.19 unch.
Overseas Futures:
- Nikkei Futures: Indicating -1 open in Japan
- DAX Futures: Indicating -6 open in Germany
Portfolio:
- Slightly Lower: On losses in my medical/retail/biotech sector longs
- Disclosed Trades: Added to my (IWM)/(QQQ) hedges
- Market Exposure: Moved to 25% Net Long
Bloomberg:
- Hollande Faces Europe’s Glass-Half-Empty Test on Budget Plan. President
Francois Hollande’s government sought to show the European Commission
it’s serious about public-spending cuts with its 2014 budget today,
after changes to the pension system failed to impress. “There’s
always the question of whether the glass is half full or half empty”
with France, European Economic Affairs Commissioner Olli Rehn said at a
Sept. 13 meeting of euro-area finance ministers. “France is
going in the right direction in terms of economic reforms but there is
still much more to do.”
- Jain Says Deutsche Bank’s Debt-Trading Revenue Falls. Deutsche Bank AG (DBK) co-Chief Executive Officer Anshu Jain said third-quarter revenue from trading debt probably slumped at Germany’s largest bank. “We currently anticipate debt sales and trading revenues in the third quarter to decline significantly from last year,” Jain, 50, told investors at a conference in London today. “Market activity was substantially lower which has affected our
corporate banking and securities revenues.”
- Most European Stocks Drop as Nordea, Carnival Decline. Most
European stocks fell amid concern over budget talks in the world’s
largest economy and as a report showed U.S. durable-goods orders
excluding transportation unexpectedly dropped. Nordea Bank AB slid 2.6
percent as Sweden sold its remaining stake in the Nordic region’s
largest lender. Carnival Corp. (CCL), the world’s biggest cruise-ship
operator, slumped 6.7 percent for the biggest drop in the Stoxx Europe
600 Index. ThyssenKrupp AG rallied 3.7 percent as Cevian Capital AB
boosted
its holding in the German steelmaker. The Stoxx 600 dropped 0.1 percent to 313.02 at the close of
trading, as three shares retreated for every two that gained.
- Wal-Mart(WMT) Cutting Orders as Unsold Merchandise Piles Up. Wal-Mart Stores Inc. (WMT) is cutting orders it places with suppliers this quarter and next to address rising inventories the company flagged in last month’s earnings report. Last week, an ordering manager at the company’s
Bentonville, Arkansas, headquarters described the pullback in an e-mail
to a supplier, who said others got similar messages. “We are looking at
reducing inventory for Q3 and Q4,” said the Sept. 17 e-mail, which was
reviewed by Bloomberg News. “Wal-Mart’s inventory is well above their goal,” said Poonam Goyal, an
analyst at Bloomberg Industries. “Most of the inventory increase was
because of missed sales.”
- Demand for U.S. Capital Goods Climbs Less Than Forecast. Bookings (CGNOXAI%) for non-military capital equipment excluding aircraft increased 1.5 percent after a 3.3 percent drop in July, the Commerce Department reported today in Washington. The median forecast of economists surveyed by Bloomberg projected a 2 percent gain. Sales were down 3.3 percent over the past three months at an annualized
rate, compared with a 0.9 percent decline at the end of the second
quarter, indicating business investment will take time to rebound.
Wall Street Journal:
Fox News:
- Kerry signs UN arms treaty, senators threaten to block it. Secretary of State John Kerry on Wednesday signed a controversial
U.N. treaty on arms regulation, riling U.S. lawmakers who vow the Senate
will not ratify the agreement. As he signed the document, Kerry called the treaty a "significant
step" in addressing illegal gun sales, while claiming it would also
protect gun rights.
CNBC:
- The Fed's 'hidden agenda' behind money-printing. One thing is clear: Based on CBO projections, if interest rates
just rise to their 20-year average, we will have an untenable,
unacceptable interest rate bill whose beneficiaries are China, Japan,
and others who own our bonds. And if Americans find out that
the lion's share of their income tax payments are going to service the
debt, prepare for a new American revolution.
Zero Hedge:
Business Insider:
CNN:
- Syrian rebels reject interim government, embrace Sharia. A collection of some of Syria's most powerful rebel brigades have
rejected a Western-backed opposition group that announced the creation
of an interim government in exile this month. The 13 rebel groups, led
by the al Qaeda-linked al-Nusra Front, also called on supporters of the
Syrian opposition to embrace Sharia law "and make it the sole source of
legislation."
Xinhua:
- Shanghai
Zone Facebook(FB) Ban Lift Report Incorrect. A media report that
Shanghai free-trade zone will lift a ban on Facebook Internet access is
incorrect, citing a person familiar with the matter. Internet management
rules in the Shanghai pilot free-trade zone won't change.
Style Underperformer:
Sector Underperformers:
- 1) Medical Equipment -1.48% 2) HMOs -.30% 3) Coal -.26%
Stocks Falling on Unusual Volume:
- JCP, NXST, KSS, DISH, UGP, COG, DB, CM, CLDT, CPRT, LNDC, DQ, AIR, CCL, BAX, FNP, CLVS, CUK, SEAS, TSU, ABT, MNTX, SYK, BBRG, MKTO, COG, BCEI and CZR
Stocks With Unusual Put Option Activity:
- 1) JCP 2) AMAT 3) DLTR 4) CCL 5) BBBY
Stocks With Most Negative News Mentions:
- 1) NVDA 2) AMZN 3) JCP 4) FB 5) BBRY
Charts:
Style Outperformer:
Sector Outperformers:
- 1) Gold & Silver +2.15% 2) Homebuilders +1.09% 3) Banks +.89%
Stocks Rising on Unusual Volume:
- NTLS, ANW, SZYM, IQNT, MAKO, ASNA, FU, XRS, SSNI, PCRX, UNXL, GSVC, AMBA, CTRP, GCAP and KERX
Stocks With Unusual Call Option Activity:
- 1) MAKO 2) MTG 3) ASNA 4) KERX 5) UNXL
Stocks With Most Positive News Mentions:
- 1) SBUX 2) DFRG 3) ANR 4) CSC 5) WBMD
Charts:
