Morning Market Internals

NYSE Composite Index:

• Volume Running -2.4% Below 100-Day Average
• 5 Sectors Rising, 5 Sectors Declining
• 48.2% of Issues Advancing, 48.2% Declining
• 176 New 52-Week Highs, 7 New Lows
• 49.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 39.6%
• Vix 9.9 +1.0%
• Total Put/Call .74 -6.3%
• TRIN/Arms 1.22 +76.6%

Thursday Watch

Night Trading 

• Asian equity indices are -.25% to +.5% on average.
• Asia Ex-Japan Investment Grade CDS Index 84.50 -.75 basis point. 
• Asia Pacific Sovereign CDS Index 21.25 unch.
• Bloomberg Emerging Markets Currency Index 73.71 -.01%.
• S&P 500 futures -.06%.
• NASDAQ 100 futures +.03%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (ABB)/.33
• (ABT)/.61
• (ADS)/3.74
• (BK)/.85
• (BX)/.62
• (DHR)/.97
• (GPC)/1.31
• (KEY)/.34
• (NUE)/1.06
• (PM)/1.23
• (PII)/1.09
• (PPG)/1.83
• (SAP)/.94
• (SHW)/4.56
• (SNA)/2.57
• (TRV)/2.14
• (UNP)/1.39
• (COF)/1.90
• (CTAS)/1.11
• (EBAY)/.45
• (ISRG)/5.77
• (MSFT)/.71
• (NCR)/.75
• (SWKS)/1.52
• (V)/.81

Economic Releases 

8:30 am EST

• Initial Jobless Claims for last week are estimated to fall to 245K versus 247K the prior week.
• Continuing Claims are estimated to rise to 1949K versus 1945K prior.
• Philly Fed Business Outlook Index for July is estimated to fall to 23.0 versus 27.6 in June.
  

9:45 am EST

• The Leading Index for June is estimated rise +.4% versus a +.3% gain in May.

Upcoming Splits

• None of note

Other Potential Market Movers

• The Mario Draghi press conference, ECB rate decision, BoJ decision, Bloomberg Economic Expectations Index for July, weekly EIA natural gas inventory report, weekly Bloomberg Consumer Comfort Index 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.

Bear Radar

Style Underperformer:

• Large-Cap Value +.3%

Sector Underperformers:

• 1) Road & Rail -2.8% 2) Computer Services -1.6% 3) Gaming -.6%

Stocks Falling on Unusual Volume: 

• MKC, CSX, GWW, UAL, NTRS, HDP, ENBL and HBHC

Stocks With Unusual Put Option Activity:

• 1) CSX 2) IBM 3) MPC 4) PF 5) VLO

Stocks With Most Negative News Mentions:

• 1) AVHI 2) NSC 3) HOG 4) PYPL 5) SLGN

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth +.8%

Sector Outperformers:

• 1) Oil Service +2.1% 2) Biotech +1.9% 3) Networking +1.9%

Stocks Rising on Unusual Volume:

• VRTX, SNI, JKS, DISCA, ADTN, EXPO, UBIO, ASML, AMCX, MMYT, NFLX, BIB, FSLR, CORT, GRMN, PF, CSIQ, SWIR, WBK, MLP, BAK, TTMI, MSG, AAOI, ZAYO, FND, TTD, CORT, KEM, ONCD and ICHR

Stocks With Unusual Call Option Activity:

• 1) WMB 2) VRTX 3) SMH 4) CY 5) OKE

Stocks With Most Positive News Mentions:

• 1) VRTX 2) CSOD 3) FSLR 4) MS 5) TRIP

Charts:

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

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.