Style Underperformer:
Sector Underperformers:
- 1) Education -.8% 2) Biotech -.2% 3) Agriculture -.1%
Stocks Falling on Unusual Volume:
- CORE, CXW, ACET, GEO, EDIT, REX, FIVE, LDL, CBM, FNBC, ADSK, VIRT, RMD, XON, GILD, TVIX, ULTA, AMSWA and CVS
Stocks With Unusual Put Option Activity:
- 1) ANF 2) DOW 3) CYH 4) MET 5) SHLD
Stocks With Most Negative News Mentions:
- 1) ADSK 2) SBUX 3) HOG 4) CMG 5) AAPL
Charts:
Style Outperformer:
Sector Outperformers:
- 1) Steel +2.3% 2) Hospitals +1.9% 3) Gold & Silver +1.8%
Stocks Rising on Unusual Volume:
- CYOU, BZUN, USG, WATT, TTWO and YRD
Stocks With Unusual Call Option Activity:
- 1) XLV 2) DOW 3) USB 4) HLT 5) ADSK
Stocks With Most Positive News Mentions:
- 1) KLAC 2) HRS 3) PNC 4) MU 5) MET
Charts:
Night Trading
- Asian indices are -.75% to -.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 113.75 unch.
- Asia Pacific Sovereign CDS Index 40.25 -.25 basis point.
- Bloomberg Emerging Markets Currency Index 72.75 -.49%.
- S&P 500 futures -.07%.
- NASDAQ 100 futures -.15%.
Earnings of Note
Company/Estimate
- (PAHC)/.37
- (SCSC)/.71
- (CTLT)/.53
Economic Releases
8:30 am EST
- Personal Income for July is estimated to rise +.4% versus a +.2% gain in June.
- Personal Spending for July is estimated to rise +.3% versus a +.4% gain in June.
- The PCE Core MoM for July is estimated unch. versus a +.1% gain in June.
10:30 am EST
- Dallas Fed Manufacturing Activity for August is estimated to fall to -3.0 versus -1.3 in July.
Upcoming Splits
Other Potential Market Movers
- The Japan Unemployment rate and 2016 Steel Summit could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by commodity 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 week.
BOTTOM LINE: I expect US stocks to finish the week modestly lower on yen strength, global growth worries, commodity weakness, technical selling, rising European/Emerging Markets/US High-Yield debt angst and Fed rate-hike fears. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 25% net long heading into the week.
Bloomberg:
- Losses Piling Up for S&P 500 as Weekly Drop Is Worst Since June.
What had been just a sleepy August is turning into an increasingly
painful one for U.S. equity market bulls. Notwithstanding an hour-long
burst of optimism that followed Federal Reserve Chair Janet Yellen’s
policy speech Friday, the buoyancy that lifted stocks for the first half
of the summer has now been missing for the better part of a month. The S&P 500 Index fell 0.7 percent to 2,169.04 this week, the biggest drop since June, to erase its August gains. Not
since the presidential administration of Lyndon B. Johnson have stocks
done so little for so long. Unable to break out of a 1.5 percent band
for more than 30 days, the market is locked in its tightest trading
range since the end of 1965 amid confusion about Federal Reserve policy
and the outlook for earnings.
- BOJ’s Kuroda Says Ready to Ease as Jackson Hole Debates Options. Bank
of Japan Governor Haruhiko Kuroda said he won’t hesitate to boost
monetary stimulus if needed, reiterating a pledge during an annual
policy retreat in Jackson Hole, Wyoming, at which central bankers
stressed their need for backup from fiscal policy. “There is no
doubt that there is ample space for additional easing in each of the
three dimensions,” Kuroda said Saturday, referring to the BOJ’s package
of asset buying, monetary-base guidance, and negative interest rates.
“The bank will carefully consider how to make the best use of the policy
scheme in order to achieve the price stability target,” he told the
Federal Reserve Bank of Kansas City’s symposium.
- Germany Warns U.K. That Brexit Talks Will Be Very Difficult. German
Deputy Foreign Minister Michael Roth warned that the U.K.’s
negotiations to leave the European Union “will be very difficult” and
that Britain won’t be allowed to “cherry pick” the best that the bloc
has to offer. “If the British want full market access but want to limit
the access of workers from Germany, France or Poland, they will find
there is no a la carte cooperation in this direction,” Roth, the
government minister responsible for European affairs, said at a Berlin
event Saturday. “We’ve told the British they can’t expect to pick the
best aspects of the EU and leave matters at that.”
- Stronger Case for Fed Rate Rise Increases Volatility in Asia. Asian
currencies look set for a bumpy ride over the next three months after
Federal Reserve Chair Janet Yellen said Friday that the case for an
interest-rate rise has strengthened, amid growing speculation the hike
could come as early as next month. Yellen’s statement will create
some volatility over the next three months, Raymond Yeung, chief
economist at ANZ Banking Group in Hong Kong, said by phone. “The cost of the U.S. funding will increase, and Asian currencies will be under downward pressure.”
- September in Play for Bond Traders as Goldman Sees 40% Fed Odds. A
September interest-rate increase by the Federal Reserve, an unthinkable
move just two months ago, is now very much on the table, according to
Goldman Sachs Group Inc. The bond market concurs.
Barron's:
- Had bullish commentary on (VZ), (VIAB), (PYPL), (NFLX), (SYMC) and (MET).
- Had bearish commentary on (DIS) and (MYL).
Fox News:
- Niners QB Kaepernick refuses to stand for anthem in protest. (video) ''I am not going to stand up to show pride in a flag for a country that
oppresses black people and people of color,'' Kaepernick said. ''To me,
this is bigger than football and it would be selfish on my part to look
the other way. There are bodies in the street and people getting paid
leave and getting away with murder.''
Financial Times:
FAZ:
- Germany's Schaeuble Says Low ECB Rates Are Damaging. Low or negative interest rates are harmful, in areas including retirement planning, German Finance Minister Wolfgang Schaeuble says in an interview.
Spiegel:
- Germany Says ECB Bond Purchases Are Distorting Rates. German Finance Ministry concerned that European Central Bank's buying of government bonds is distorting interest rates, citing internal Finance Ministry documents.