Bull Radar

Style Outperformer:

• Large-Cap Value +.5%

Sector Outperformers:

• 1) Banks +1.5% 2) Shipping +1.3% 3) Semis +.9%

Stocks Rising on Unusual Volume:

• MBFI, BAND, GBNK, TSRO, AZUL, IRDM, WHR, CBPO, EOLS, CPB, DOVA, FITB, GSM, BIDU, CEQP, MU, DQ, XEC, TJX, NXPI, NICE, SRG, CVRR, TTM, KEG, ONE, DOVA and GSM

Stocks With Unusual Call Option Activity:

• 1) CIT 2) RCII 3) IGT 4) ATUS 5) AZO

Stocks With Most Positive News Mentions:

• 1) MU 2) FITB 3) TJX 4) SMAR 5) ADBE

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -4.4% Below 100-Day Average
• 8 Sectors Rising, 3 Sectors Declining
• 52.7% of Issues Advancing, 42.6% Declining
• 106 New 52-Week Highs, 24 New Lows
• 49.7% of Issues Above 200-day Moving Average
• Average 14-Day RSI 52.4%
• Vix 13.1 -.1%
• Total Put/Call .80 -2.4%
• TRIN/Arms .66 -32.5%

Tuesday Watch

Night Trading 

• Asian equity indices are -.5% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 75.5 -.25 basis point. 
• Asia Pacific Sovereign CDS Index 12.5 -.5 basis point.
• Bloomberg Emerging Markets Currency Index 71.16 unch.
• FTSE 100 futures -.18%.
• S&P 500 futures -.05%.
• NASDAQ 100 futures -.08%.

Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:

• (AAP)/1.97
• (AZO)/12.99
• (CBRL)/1.95
• (EV)/.78
• (IGT)/.27
• (KSS)/.50
• (PLAB)/.07
• (TJX)/1.02
• (TOL)/.76

After the Close:

• (TCS)/.23
• (CTRP)/.16
• (HPE)/.31
• (INTU)/4.67
• (RRGB)/.76
• (URBN)/.31 

Economic Releases
10:00 am EST

• The Richmond Fed Manufacturing Activity Index for May is estimated to rise to 10.0 versus -3.0 in April.

Upcoming Splits

• None of note

Other Potential Market Movers

• The House vote on financial regulation reform bill, Canadian Wholesale Trade report, $33B 2Y T-Note auction, weekly US retail sales report, JPMorgan Tech/Media/Telecom Conference, Suntrust Financial Services Conference, Wolfe Transport Conference, RBC Datacenter/Connectivity Conference, (XLNX) analyst meeting and the (BRKS) analyst day could also impact trading today.

BOTTOM LINE:  Asian indices are mostly lower, weighed down by industrial and financial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the day.

Stocks Rising into Afternoon on Diminishing Trade War Tensions, Less Mueller Probe Angst, Oil Gain, Industrial/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 13.29 -.97%

• Euro/Yen Carry Return Index 136.1 +.26%

• Emerging Markets Currency Volatility(VXY) 9.18 +.44%

• S&P 500 Implied Correlation 34.39 -4.31%

• ISE Sentiment Index 123.0 +24.24%
  

• Total Put/Call .83 -.17%

• NYSE Arms 1.16 -26.86%

Credit Investor Angst:

• North American Investment Grade CDS Index 61.88 +.28%
  

• America Energy Sector High-Yield CDS Index 355.0 -1.02%

• European Financial Sector CDS Index 67.77 +3.47%

• Italian/German 10Y Yld Spread 186.75 +21.75 basis points
  

• Asia Pacific Sovereign Debt CDS Index 12.49 -3.67%

• Emerging Market CDS Index 167.91 -1.79%
  

• iBoxx Offshore RMB China Corporate High Yield Index 149.51 +.21%

• 2-Year Swap Spread 23.25 -.75 basis point

• TED Spread 43.0 -1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -9.5 -2.5 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 71.0 +.03%
• 3-Month T-Bill Yield 1.90% +1.0 basis point
  

• Yield Curve 50.50 -1.5 basis points

• China Iron Ore Spot 65.45 USD/Metric Tonne +.26%

• Citi US Economic Surprise Index 11.30 -1.0 point

• Citi Eurozone Economic Surprise Index -81.40 +10.3 points

• Citi Emerging Markets Economic Surprise Index -5.50 -.8 point

• 10-Year TIPS Spread 2.17 unch.
  
• 100.0% chance of Fed rate hike at August 1 meeting, 100.0% chance at September 26 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +30  open in Japan 
• China A50 Futures: Indicating +16 open in China

• DAX Futures: Indicating n/a open in Germany

Portfolio: 

• Higher: On gains in my medical/industrial/retail/tech sector longs

• Disclosed Trades: None

• Market Exposure: 75% Net Long

Bear Radar

Style Underperformer:

•   Small-Cap Growth +.6%

Sector Underperformers:

• 1) Steel -1.5% 2) Biotech -.6% 3) Gold & Silver -.3%

Stocks Falling on Unusual Volume: 

• BIDU, FITB, BEDU, JNCE, ABEO, EGOV and COOL

Stocks With Unusual Put Option Activity:

• 1) WHR 2) QEP 3) NTAP 4) STI 5) AMTD

Stocks With Most Negative News Mentions:

• 1) APPF 2) CPB 3) PRTA 4) BIDU 5) MDSO

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value +.9%

Sector Outperformers:

• 1) Industrials +1.5% 2) Road & Rail +1.3% 3) Gaming +1.3%

Stocks Rising on Unusual Volume:

• MBFI, LHO, WAB, WHR, CAF, CQH, FNHC, AYR, FMBI, KELYA, CVRR, DDS, TITN, AZUL, FGEN, UFI, PARR, CBPO, DE, NICE, NOAH, GPRK, NEWR, LXFR, ATRA, ENR, YRCW, BPT, CCXI, PRO, EROS and DRH

Stocks With Unusual Call Option Activity:

• 1) WHR 2) CPB 3) FITB 4) PHM 5) CCL

Stocks With Most Positive News Mentions:

• 1) MU 2) DE 3) DDS 4) AYX 5) UTX

Charts:

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