Morning Market Internals

NYSE Composite Index:

• Volume Running -16.0% Below 100-Day Average
• 8 Sectors Rising, 2 Sectors Declining
• 71.2% of Issues Advancing, 24.7% Declining
• 184 New 52-Week Highs, 15 New Lows
• 47.6% of Issues Above 200-day Moving Average
• Average 14-Day RSI 37.6%
• Vix 9.6 -2.7%
• Total Put/Call .74 -12.9%
• TRIN/Arms 1.1 -17.3%

Wednesday Watch

Night Trading 

• Asian equity indices are unch. to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 85.25 +.5 basis point. 

• Asia Pacific Sovereign CDS Index 21.25 -.5 basis point.

• Bloomberg Emerging Markets Currency Index 73.72 unch.

• S&P 500 futures +.11%.

• NASDAQ 100 futures +.35%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (ASML)/.95

• (CCI)/1.10

• (DBD)/.07

• (MS)/.77

• (TXT)/.55

• (USB)/.84

• (AA)/.60

• (AXP)/1.43

• (CHRW)/.90

• (CP)/2.71

• (QCOM)/.81

• (STLD)/.62

• (URI)/2.32

• (VMI)/1.99

Economic Releases 

8:30 am EST

• Housing Starts for June are estimated to rise to 1160K versus 1092K in May.

• Building Permits for June are estimated to rise to 1201K versus 1168K in May.
  

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -3,462,780 barrels versus a -7,564,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -676,220 barrels versus a -1,647,000 barrel decline the prior week. Distillate supplies are estimated to rise by +1,874,000 barrels versus a +3,131,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to rise by +.21% versus a +.9% gain prior.

Upcoming Splits

• None of note

Other Potential Market Movers

• The Australia Unemployment Rate, weekly MBA Mortgage Applications report, (ETH) investor day and the (CPB) investor day could also impact trading today.

BOTTOM LINE:  Asian indices are mostly higher, boosted by industrial and technology shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the day.

Bear Radar

Style Underperformer:

• Small-Cap Value -.6%

Sector Underperformers:

• 1) Homebuilding -1.4% 2) HMOs +1.-% 3) Construction -1.0%

Stocks Falling on Unusual Volume: 

• VNOM, TTS, NLY, HOG, REI, CRUS, ARNA, FND, CMG and VNO

Stocks With Unusual Put Option Activity:

• 1) CMA 2) HOG 3) SEAS 4) LMT 5) GGP

Stocks With Most Negative News Mentions:

• 1) CRUS 2) HOG 3) SMLP 4) PFE 5) COG

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth unch.

Sector Outperformers:

• 1) Gaming +2.3% 2) Alt Energy +.8% 3) Social Media +.7%

Stocks Rising on Unusual Volume:

• QDEL, NFLX, LAKE, MDSO, JKS, PBYI, SPWR, DBVT, AMTD, CUNB, MTCH, CYBE, PACW, EXPD, YRD, NTNX, AMWD, HTHT, LXFT, NVS, ORLY, LFUS, SUPN, SFBS and AAOI

Stocks With Unusual Call Option Activity:

• 1) SCSS 2) ITB 3) CTSH 4) INTC 5) HOG

Stocks With Most Positive News Mentions:

• 1) NFLX 2) PBYI 3) AMTD 4) NTWK 5) MBRX

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -12.2% Below 100-Day Average
• 5 Sectors Rising, 5 Sectors Declining
• 37.9% of Issues Advancing, 57.1% Declining
• 52 New 52-Week Highs, 10 New Lows
• 48.3% of Issues Above 200-day Moving Average
• Average 14-Day RSI 38.6%
• Vix 10.0 +1.3%
• Total Put/Call .99 +1.0%
• TRIN/Arms 1.2 +21.8%

Tuesday Watch

Night Trading 

• Asian equity indices are -.5% to unch. on average.
• Asia Ex-Japan Investment Grade CDS Index 84.75 -.5 basis point. 
• Asia Pacific Sovereign CDS Index 21.75 unch.
• Bloomberg Emerging Markets Currency Index 73.56 +.16%.
• S&P 500 futures -.09%.
• NASDAQ 100 futures -.03%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (ANGO)/.16
• (BAC)/.44
• (SCHW)/.39
• (CMA)/1.09
• (GS)/3.39
• (HOG)/1.38
• (JNJ)/1.79
• (LMT)/3.07
• (NVS)/1.18
• (PGR)/.60
• (AMTD)/.42
• (UNH)/2.38
• (CSX)/.59
• (IBM)/2.75
• (IBKR)/.36
• (UAL)/2.62

Economic Releases 

8:30 am EST

• The Import Price Index MoM for June is estimated to fall -.2% versus a -.3% decline in May.
• The Export Price Index MoM for June is estimated unch. versus a -.7% decline in May.
  

10:00 am EST

• The NAHB Housing Market Index for July is estimated at 67.0 versus 67.0 in June.

4:00 pm EST

• Net Long-Term Tic Flows for May.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The UK CPI report and the US weekly retail sales reports could also impact trading today.

BOTTOM LINE:  Asian indices are mostly lower, weighed down by industrial and commodity shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the day.