Mid-Day Market Internals

NYSE Composite Index:

• NYSE Volume Running -20.0% Below 100-Day Average 
• Nasdaq/NYSE Volume Ratio 8.7 -1.2
  
• 5 Sectors Declining, 6 Sectors Rising
• 69.9% of Issues Advancing, 27.3% Declining
• 51 New 52-Week Highs, 21 New Lows
• 46.8%(+2.2%) of Issues Above 200-day Moving Average
• Average 14-Day RSI 52.0 -4.0
  
• Bloomberg Global Risk-On/Risk-Off Index 59.6 -2.7%
  
• Russell 1000: Growth/Value 17,487.2 -.32%
• 1-Day Vix 8.8 -22.7%
  
• Vix 14.2 +5.5% 
  
• Total Put/Call .79 -9.2%
• TRIN/Arms 1.19 -27.9%
  

Monday Watch

Night Trading

• Asian indices are -.5% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 116.75 +2.5 basis points.
  
• China Sovereign CDS 60.25 +2.0 basis points.
• China Iron Ore Spot 108.8 USD/Metric Tonne -.4%.
  
• Bloomberg Emerging Markets Currency Index 44.2 +.01%.
• Bloomberg Global Risk-On/Risk Off Index 61.8 +.7%.
• Bloomberg US Financial Conditions Index .22 -8.0 basis points. 
  
• Volatility Index(VIX) futures 16.0 +.16%. 
• Euro Stoxx 50 futures +.22%.
• S&P 500 futures +.14%.
• NASDAQ 100 futures +.16%.

Morning Preview Links

BOTTOM LINE: Asian indices are mostly lower, weighed down by financial and technology shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed.  The Portfolio is 50% net long heading into the week.

Today's Headlines

Bloomberg:

• Prigozhin Turns His Forces Back from Moscow, Avoids Showdown.
• Germany to Step Up Anti-Aircraft Tanks for Ukraine, Welt Says.
• Homebuilding Set to Boost US Economy After Two-Year Contraction.
• Citi Sees More Startups Embracing the Once Dreaded ‘Down Round’.
• Crypto Feeds on AI Hype as Tech Offers New Uses for Blockchain.

Zero Hedge:

• Prigozhin Agrees To Halt Wagner Advance, Start De-Escalation, After Lukashenko's Mediation
• Hartnett: Max 100-150 S&P Points Upside Vs 300 Points Downside By Labor Day
• Almost A Third Of America's Homeless Population Lives In California, Study Finds.
• Hunter Biden Expensed Hookers, Sex Club, On Taxes: Whistleblower.
• Rising Number Of Russian, Chinese Nationals At US Southern Border Raises Security Concerns.
• Rickards: Yes, It Can Happen Here!
• The Great Debate That Will Not Happen.
• 8 Signs That The Futuristic Control Freak Agenda Of The Globalists Is Rapidly Moving Forward.
• Over 500 Excess Heart Deaths A Week In England Since COVID-19 Began.
• Is A New Housing Crisis Brewing In Spain?
• Vienna Is, Once Again, The World's Most-Liveable City.
• Christian Doctor In UK Fired For Refusing To Use Trans Pronouns Cites Genesis, Appeals To European Court.
• Welcome to upside down.
• Escobar: The Greater Eurasia Project Will Replace The 'Rules-Based Order'.
• America's Two Largest Pension Funds Suffer Massive Third Party Data Breach.
• The Endless Lies Democrats Tell In Defense Of Their Failed Californian Utopia.
• US And China 'Drifting Into War': Former Joint Chiefs Chairman.
• Lab-Grown Meat Gets Green Light On US Menus.
• 3M Reaches $10.3 Billion Settlement Over US Allegations Of 'Forever Chemicals' Contamination.
• San Francisco Ranked Worst-Run City In America.
• The Stealth Student Loan Bailout.
• Distraction? Questions Swirl Over Timing Of Sub Story As Biden Bombshells Hit Target.

Wall Street Journal:

• Harry and Meghan Produce a Hollywood Flop: Themselves
• Wagner Forces Will Pull Back, Chief Says
• Demand for Airliners Soars: ‘We Cannot Make Planes Fast Enough’
• Silver-Haired Stars Are the New Box-Office Gold8 min read
• Georgia GOP Fights Bitter War—With Itself.
• The Tearful Auto Executive Who Tapped the Brakes on Electric Cars.
• Car Insurance Rates Are Soaring With Little Relief in Sight.
• Store Brands Strike Back.
• More Online Clothing Sales Come With a Catch: No Returns.

CNBC:

• New technologies hurt car quality as EV brands fare poorly, J.D. Power says.
• High interest rates and economic uncertainty are behind the recent rise in corporate defaults.
• Costco’s $1.50 hot dog and soda combo went viral and became a T-shirt.
• This 15-question test will tell you if you’re addicted to your phone.

MarketWatch.com:

• ‘Lab-grown’ chicken is now legal to sell in the U.S. Here’s where you’ll find it and when.
• Recession concerns gain steam based on MarketWatch weekly gauge

NewsMax:

• Putin: Armed Rebellion by Wagner Chief a Betrayal, Will Defend Russia.
• Social Media Video Calls on Russia Forces to Join Coup.
• Wagner Head: Forces Entered Rostov, Russia, Without Resistance.
• Moscow Security Tightened After Wagner Boss Vows Fight.
• Wagner Mercenary Chief: Russia's War in Ukraine Based on Lies.

Fox News: 

• Starbucks workers strike over alleged 'hypocritical treatment' of LGBTQ+ community.
• Wagner Group forces said to be advancing towards Russia's capital.

TheGatewayPundit.com:

• US Military Shackled to China Because of Rare Earth Minerals and Prigozhin Reportedly has a Psychotic Break.
• Obama Can’t Help Himself-Politicizes OceanGate Sub Tragedy-Ignores Lack of Coverage of Migrant Deaths Under His Watch.
• Liberal Utopia Austin, Texas Homeless Map Shows a Shocking 10K Living in Camps.
• EXODUS: Nearly HALF of Californians Are Considering Leaving the State.
• OceanGate Received $447,000 In PPP Loans During Pandemic.
• McCarthy Says He is Backing Proposals to Expunge Trump’s Impeachments.
• Hunter’s Lawyer Responds to Bombshell “I’m Sitting Here with My Father” WhatsApp Message to Chinese Business Associate – And It’s a Doozy.
• America First Legal Files Civil Rights Complaint Against Nordstrom for Woke and Racist Hiring Practices That Exclude White People.

The Epoch Times:

• TikTok Admits Storing Some US User Data in China: Senators.

Twitter:

• @ClownWorld_ - NYC Drag Marchers chant “we’re here, we’re queer, we’re coming for your children”. (video)
• @IGSquawk - Weekend markets update: #DAX 15760 -0.45% #DOW 33629 -0.26% #NASDAQ 14840 -0.30% #FTSE 7432 -0.34% #HANGSENG 18652 -0.50% #GBPUSD 12703 -0.11% #EURUSD 10882 -0.12% #USDJPY 14376 +0.01%.

OpenVAERS:

• VAERS US COVID Vaccine Adverse Event Reports. 965,617 Reports(+1,228 from prior week) Through June 9th, 2023.

SKirsch.com:

• Using the MGH numbers with our own VAERS queries, we have 247 cases per million doses from the MGH study divided by 5.97 cases per million doses from VAERS. 247/5.97 = 41. This suggests that the VAERS under-reporting factor (URF) is 41X.

Evening Headlines

Bloomberg:

• Gloom Returns to China Markets as Stimulus Trade Fizzles Out.
• The World’s Empty Office Buildings Have Become a Debt Time Bomb.
• Chinese Builder Halts All Offshore Debt Payment on Property Market Weakness.
• Russian War Economy Is Awash With Bags of Cash Kept Out of Banks.
• Wagner Head Faces Russia Criminal Probe After Army Threat.
• US Stocks Slide on Specter of Recession in Europe: Markets Wrap.
• Goldman Sachs Is Cutting About 125 Managing Directors Globally.
• Lilly’s Mounjaro Gives Positive Results in Obese Diabetic People.
• Latecomers to 40% Tech Stock Rally Arrive in Time to See It Fade.
• Banks Hit by Worst Week Since May as Regulatory ‘Waves’ Loom.
• BofA Says Investors Are Fleeing Tech Stocks After ‘Baby Bubble’.
• US Navy Detected Titanic Submersible’s Implosion Days Ago.

Zero Hedge:

• Distraction? Questions Swirl Over Timing Of Sub Story As Biden Bombshells Hit Target
• Military Deploys In Moscow As Wagner Chief Sought For 'Armed Mutiny'
• The Stealth Student Loan Bailout
• People Need To Understand They’re 'Being Used Against Each Other': Filmmaker
• Do I Sell My Corn And Just Forget About The Animal?
• Apocalypse FedNow.
• Silicon Valley's Vacant Office Space Rises As Big Tech Dumps.
• New Wave Of COVID-19 Infections Hits China.
• CNN Producer Sentenced To 19 Years In Prison For Pedophilia.
• Appeals Court Halts Proceedings In Nashville Shooter's Records Case.
• Obama Issues 'Russia-Sympathetic' Words In CNN Interview.
• Taibbi: The Elite War On Free Thought.
• 'Calling DC A Swamp Is An Insult To Swamps' - What Jim Kunstler Learned This Week From Durham & The DoJ.
• Fed's Seasonal Shenanigans Continue As 'Adjusted' Domestic Bank Deposit Outflows Grow.
• Stocks snap weekly gains streak amid net negative global PMIs - Newsquawk US Market Wrap.
• Crypto Soars As VIX Collapses; Recession Worries Spark Stocks' Worst Week Since March.
• Millennials Lead The Way On The Great Migration From California To Texas.
• Goldman Trading Desk Warns Everyone Is Now Long, Just As Buyback Blackout Begins.

Wall Street Journal:

• Forget the Cost of Living. What’s the Cost of Thriving in America?
• The Whistle Blows on Hunter Biden’s Plea Deal. IRS agents say the Justice Department hindered their probe of the president’s son.
• Dictator Gets Upset When You Call Him a Dictator. President Biden creates a diplomatic kerfuffle by accurately describing Chinese communist Xi Jinping.
• ‘You-Make-a-Lot-of-Money Tax’ Hits More Americans.
• IBM Nears $5 Billion Deal for Software Provider.
• SpaceX Targets $150 Billion Valuation.
• Cloud Seeding Takes Flight in Western U.S.
• Yellen Says More Bank Mergers Likely This Year.

CNBC:

• Beauty and tech company Oddity, which runs Il Makiage, files to go public.
• Apple’s Tim Cook calls India ‘huge opportunity’ after tech event at White House with Modi.
• Companies without direct A.I. link try to ride the Wall Street craze.
• Bitcoin briefly rises above $31,000 to highest level in more than a year to cap the week.
• Goldman Sachs faces big writedown on CEO David Solomon’s ill-fated GreenSky deal.

MarketWatch.com:

• Pete Buttigieg warns of potential for flight delays as July 1 5G deadline looms.
• Intel stock suffers worst week in a year, while AMD, Broadcom notch six-session losing streaks.
• ‘The war on remote work is not over.’ But one group in particular is heading back to the office.
• In a Zuckerberg vs. Musk cage fight, sports books say the match won’t be close
• Option demand explodes in June as investors use bullish bets to chase stock-market rally.
• Frozen fruit recall: Dozens of products sold at Walmart, Target and Trader Joe’s pose listeria risk.

NewsMax:

• Russia Accuses Mercenary Boss of Mutiny After He Presses Armed Rebellion.
• Russia on Brink of Civil War? WH Monitoring Situation.

Fox News: 

• Moscow on high alert as mercenary chief calls for armed rebellion against 'evil' Russian leadership.

TheGatewayPundit.com:

• Senate Report Shows China Company CEFC Sent Over $5 Million to Hunter Biden Related Firms Just Days After “I Am Sitting Here With My Father” Text to Chinese Business Associate.
• John Kirby Walks Out of Press Briefing While Being Grilled by James Rosen on Joe Biden Mention in Hunter Biden Text to Communist Chinese Business Associate (Video)
• WATCH: Chris Christie Booed After Trashing Trump At Evangelical Conference
• Corvette Photo Places Hunter at Joe’s Delaware House on Same Day He Demanded Payment From Chinese Business Associate.
•   Kari Lake Releases Statement on Arizona State University’s “Attempt to Purge Conservative Thought From ASU’s Campus” – SLAMS ASU President Michael Crow for “Bowing to The Woke Mob”.
•   First Openly Transgender State Legislator in New Hampshire Arrested for Distributing “Child Sexual Abuse Images”.
•   WAYNE ROOT: It’s Time for GOP Congress to Subpoena CEOs of Mainstream Media and Ask Them Under Oath Why They’re Covering-Up Biden’s Crimes.
•   JUST IN: Kari Lake’s “81 Million Votes My Ass” Debuts on Billboard’s Digital Song Sales Chart for All Genres – Hits NUMBER ONE On Two More Charts.
•   James O’Keefe Confronts BlackRock Recruiter – He Denies His Own Words, Then Hides Inside NYPD Station in the Bronx (VIDEO).
•   RINO Maricopa County Recorder Stephen Richer Files Defamation Lawsuit Against Kari Lake – Lawsuit Backed By Soros Tied Protect Democracy Project.

The Epoch Times:

• Temu’s Supply Chains in China Could Be Using Forced Labor: Report.
• New Wave of COVID-19 Infections Hits China.
• IN-DEPTH: China’s Economy Is Faltering.

OpenVAERS:

• VAERS US COVID Vaccine Adverse Event Reports. 965,617 Reports(+1,228 from prior week) Through June 9th, 2023.

SKirsch.com:

• Using the MGH numbers with our own VAERS queries, we have 247 cases per million doses from the MGH study divided by 5.97 cases per million doses from VAERS. 247/5.97 = 41. This suggests that the VAERS under-reporting factor (URF) is 41X.

Stocks Finish Lower on US Policy-Induced Stagflation Fears, Global Growth Worries, Dollar Strength, Tech/Alt Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 13.2 +2.5%
• DJIA Intraday % Swing .56%
  
• Bloomberg Global Risk On/Risk Off Index 61.7 -2.9%

• Euro/Yen Carry Return Index 164.7 -.11%

• Emerging Markets Currency Volatility(VXY) 8.7 +.35%

• CBOE S&P 500 Implied Correlation Index 19.8 +1.9% 

• ISE Sentiment Index 103.0 -29.0 points
  

• Total Put/Call .86 +6.2%

• NYSE Arms 1.44 +19.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 72.4 +1.8%
  

• US Energy High-Yield OAS 389.18 +2.9%
• Bloomberg TRACE # Distressed Bonds Traded 367.0 -10.0
  

• European Financial Sector CDS Index 92.09 +196% 
• Deutsche Bank Subordinated 5Y Credit Default Swap 295.97 +.56%
  

• Italian/German 10Y Yld Spread 163.0 basis points -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 116.1 +1.4%
  

• Emerging Market CDS Index 222.75 +1.8%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 26.4 -.08%

• 2-Year Swap Spread 18.75 basis points -2.0 basis points
  

• TED Spread 24.75 basis points -.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -15.0 +.5 basis point
  
• MBS  5/10 Treasury Spread 163.0 +2.0 basis points
  
• Bloomberg CMBS Investment Grade Bbb Average OAS 716.0 -13.0 basis points
  
• Avg. Auto ABS OAS 80.0 -3.0 basis points
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 44.2 -.83%
• 3-Month T-Bill Yield 5.29% +1.0 basis point
  

• China Iron Ore Spot 109.0 USD/Metric Tonne -.17%
• Dutch TTF Nat Gas(European benchmark) 32.5 euros/megawatt-hour  -4.7%

• Citi US Economic Surprise Index 22.5 -6.4 points

• Citi Eurozone Economic Surprise Index -131.9 -39.7 points

• Citi Emerging Markets Economic Surprise Index 3.2 -.7 point
• S&P 500 Current Quarter EPS Growth Rate YoY(8 of 500 reporting) -.8% -.2 percentage point
  
• S&P 500 Blended Forward 12 Months Mean EPS Estimate 231.37 -.01:  Growth Rate +3.5% unch., P/E 18.8 -.1
  
• S&P 500 Current Year Estimated Profit Margin 12.22% -.1 percentage point
  
• NYSE FANG+ Current Quarter EPS Growth Rate YoY(0 of 10 reporting) n/a
  
• NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 212.27 +.12: Growth Rate +39.5% +.1 percentage point, P/E 36.0 -.1
  
• Bloomberg US Financial Conditions Index .30 -8.0 basis points
• Bloomberg Euro-Zone Financial Conditions Index -4.36 -14.0 basis points
  
• US Yield Curve -101.75 basis points (2s/10s) -1.75 basis points
• US Atlanta Fed 2Q GDPNow Forecast +1.95% unch.
  

• Cleveland Fed Inflation Nowcast Core PCE YoY +4.70% unch.: CPI YoY +3.22% unch.
  
• 10-Year TIPS Spread 2.22 -2.0 basis points
  
• Highest target rate probability for Sept. 20th FOMC meeting: 64.9%(+.3 percentage point) chance of 5.25%-5.5%. Highest target rate probability for  Nov. 1st meeting: 59.4%(-.6 percentage point) chance of 5.25%-5.5%.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -96 open in Japan 
• China A50 Futures: Indicating -183 open in China

• DAX Futures: Indicating +115 open in Germany

Portfolio:

• Slightly Lower:  On losses in my tech/medical/industrial/utility sector longs
  

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  

• Market Exposure: Moved to 25% Net Long
  

Friday Watch

Evening Headlines

Bloomberg:

• Rate Hikes Echo Around the World as Inflation Proves Unrelenting.
• Biden Says Dictator Remark About China's Xi Hasn’t Undermined Ties.
• Japan’s Inflation Outpaces Forecast Amid Focus on BOJ Price View.
• Yen Slumps Broadly as Bank of Japan’s Policy Diverges From Peers.
• Asian Stocks Open Mixed Amid Elevated Bond Yields: Markets Wrap.
• Oil Heads for Steep Weekly Loss as Fed Sees Further Tightening. 
• Powell Signals Higher Rates as Lawmakers Press Him on Bank Rules.
• Shares of Startups Are Turning Dirt Cheap, Attracting Venture Funds.
• Adani Group Draws Regulatory Scrutiny in the US After Short Seller Report.
• Remote Work Still Threat to US Cities’ Credit Quality, S&P Says.
• Yellen Sees Lower US Recession Risk, Says Consumer Slowdown Needed.
• San Francisco Mayor Floats Razing Mall in Crisis-Ridden Downtown.
• Citi Signals Consequences for Flouting Return to Office.
• Billionaire Hedge Fund Managers Go Hollywood in ‘Dumb Money’.

Zero Hedge:

• Watch: Tucker Calls Out 'Media Hysteria Typhoon' Over RFK Jr.
• IRS Whistleblowers Release New Bombshell Evidence Against Bidens, DOJ And AG Garland.
• Schools Are Now Allowing Children To Identify As Cats, Horses, Dinosaurs...
• Wawa Shuttering Another Philadelphia Location, Marking Three Center City Closures In A Year.
• AMC Cancels Documentary Detailing Long-Term Health Implications Of Gender Transitioning After Backlash.
• RV Bust Kicks Into High Gear As Winnebago Records Big Revenue Miss.
• It's Not Just People - Illinois Suffered The Nation's 3rd-Worst Loss Of Businesses.
• "We Need Rain": Corn, Soy, Wheat Prices Soar As Drought Conditions Worsen In Midwest.
• Chris Hedges: The Imminent Extradition Of Julian Assange & The Death Of Journalism.
• Murder, They Spun: Selective Stats Leave Suspicious Fingerprints All Over The Crime Debate.
• EU Readies €50BN Package & Pentagon Ramps Up Shell Production, Even As Ukraine Offensive Falters.
• US stocks were mixed and yields gained as participants digested US data and busy global central bank activity - Newsquawk Asia-Pac Market Open.
• 15 Questions That Are More Useful Than "What Presidential Candidate Should Americans Vote For?".
• Down - mission impossible.
• BofA Is First To Call Market Meltup A New "Bubble"; Has Trade Recommendation How To Ride It Until It Bursts.
• Woke Sports? Consider The Big Leagues' Longstanding Great Awakening.
• Fed Emergency Bank Bailout Facility Usage Hits New Record High; Money Market Funds See Another Small Outflow. 
• SPX and NDX snap losing streaks as Big Tech rallies amid Central Bank bonanza - Newsquawk US Market Wrap.
• VIX Crushed As Curve & Commodities Scream Recession; Banks Skid, Big-Tech Bid.

Wall Street Journal: 

• At Ford, Government Is Now Job One. The auto maker gets a $9.2 billion low-cost loan—along with orders on how to use it.
• On Wall Street, Lawyers Make More Than Bankers Now.
• Musk vs. Zuckerberg: The Billionaire Bout for the Social-Media Age.
• Why You Shouldn’t Always Tell Your Bank How Much You Make.
• Black Americans Are Leaving Cities in the North and West.

CNBC.com:

• Fed Chair Powell says smaller banks likely will be exempt from higher capital requirements.
• China dilemma: Europe wants a new relationship but is wary of retaliation.
• Moderna files for FDA approval of updated Covid vaccine for fall.
• Flavored e-cigarette sales are booming despite federal crackdown.
• New technologies hurt car quality as EV brands fare poorly, J.D. Power says.
• AWS is investing $100 million in generative A.I. center in race to keep up with Microsoft and Google.

MarketWatch:

• 3M stock rallies after $10.3 billion ‘forever chemical’ settlement offered.
• Virgin Galactic stock drops more than 13% after space-tourism company seeks to raise $400 million.
• Global growth outlook deteriorates on central bank rate hikes, raising risks for U.S. and markets.
• U.S. stocks head for punishing selloff as ‘unknown unknowns’ could drag market lower, analysts warn.
• A known Tesla bull is the latest analyst to turn cautious on Tesla stock.

Newsmax:

• Dershowitz: 65 Project Un-American For Targeting Trump Lawyers.
• Sen. Blackburn: Americans See 'Two Tiers of Justice'.
• Rep. Alford: US Needs to 'Wake Up' to Woke Military.

Fox News:

• Bombshell revelation in Durham hearing should chill Americans to the core
• New Bud Light ad ridiculed up and down social media: ‘They’re trying so hard’

TheGatewayPundit.com: 

• California Dems Advance Legislation to Give Therapists Unconditional Power to Remove 12 Year Olds From Their Parents.
• WHISTLEBLOWER: Federal Prosecutors Have Evidence Joe Biden Met with Hunter’s Chinese Energy Client CEFC.
• Navy Knew Titan Submarine Imploded Days Ago – Military Acoustic Detection System Picked Up Implosion Hours After Vessel Began Its Exploration
• BREAKING: Tennessee Republican Lawmakers Receive Threatening Letters From ‘Liberal Activist’ Containing White Powder, Prompting Lockdown
• Chief ‘Diversity Officer’ Latondra Newton Is Exiting Crumbling Disney.
• Whistleblower Reveals Hunter Biden Demanded Payment From His Chinese Business Associate Over Text Message – While Joe Biden Was Sitting Next to Him!
• John Durham Gives Chilling Response to Harriet Hageman Question About Two-Tiered Justice System: ‘The Nation Can’t Stand’ (VIDEO).
• Far-Left MSNBC Contributor Elie Mystal Tweets ‘Death Wish’ Against Supreme Court Justice Alito “Please Take Him to See the Titanic”.
• Megyn Kelly Responds to Report About NY Schools Hiding Student Gender Transitions From Parents: ‘Very Dark Days’.
• New Illinois Bill Would Allow Non US Citizens to Serve in Law Enforcement.
• Elon Musk Makes Trans Activists Melt Down After Declaring that Their Two Favorite Words are Now Slurs on Twitter – His Community Notes then Buries Joe Biden After He Tells Big Lie About Deficit Reduction.
• Report Reveals the “Sensitive” U.S. Intelligence on the Chinese Spy Balloon that Joe Biden Casually Blurted Out to Democrat Donors During a Campaign Fundraiser (VIDEO).
• A Step Too Far: U.S. Approves Sale of Lab-Grown Chicken Meat in Unsettling Precedent.

The Epoch Times:

• South Korea Removes China as ‘Strategic Partner’ in Its Latest National Security Strategy Report.
• Taiwan Invasion Would Wreck US Economy, Military Development: Report
• Proposed Amendment to Defense Bill Aims to ‘Get to the Bottom’ of COVID Origins

Twitter: 

• @TPostMillennial - BREAKING: US Navy detected Titan implosion on Sunday, but Biden admin only released news on Thursday after Hunter plea deal and whistleblower reports released.
• @ggreenwald - Exciting! Congrats to this former CIA operative on his major promotion to overseeing elections for Meta! CIA doesn't need Operation Mockingbird now because it controls political discourse and news reporting out in the open, by getting hired by them:

OpenVAERS:

• VAERS US COVID Vaccine Adverse Event Reports. 964,389 Reports(+1,106 from prior week) Through June 2nd, 2023.

SKirsch.com:

• Using the MGH numbers with our own VAERS queries, we have 247 cases per million doses from the MGH study divided by 5.97 cases per million doses from VAERS. 247/5.97 = 41. This suggests that the VAERS under-reporting factor (URF) is 41X.

Night Trading 

• Asian equity indices are -.5% to +.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 114.25 +.5 basis point. 

• China Sovereign CDS 58.25 -.5 basis point.
  
• China Iron Ore Spot 111.3 USD/Metric Tonne -.32%.

• Bloomberg Emerging Markets Currency Index 44.5 -.12%.
• Bloomberg Global Risk-On/Risk Off Index 64.7 +1.7%. 
• Bloomberg US Financial Conditions Index .32 -6.0 basis points.
  
• Volatility Index(VIX) futures 15.8 +.13%.
• Euro Stoxx 50 futures +.02%.

• S&P 500 futures -.06%.

• NASDAQ 100 futures -.05%.  

Morning Preview Links

BOTTOM LINE: Asian indices are mostly lower, weighed down by financial and consumer shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 50% net long heading into the day.