Stocks Lower into Final Hour on Earnings Outlook Worries, Global Growth Fears, European/US High-Yield Debt Angst, Tech/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.17 -.41%

• Euro/Yen Carry Return Index 141.32 -.22%

• Emerging Markets Currency Volatility(VXY) 8.38 +2.44%

• S&P 500 Implied Correlation 58.59 -.75%

• ISE Sentiment Index 88.0 +1.15%

• Total Put/Call .82 -11.83%

• NYSE Arms .97 -7.22% 

Credit Investor Angst:

• North American Investment Grade CDS Index 68.14 +2.37%

• America Energy Sector High-Yield CDS Index 1,526.0 -.35%

• European Financial Sector CDS Index 69.43 +2.48%

• Western Europe Sovereign Debt CDS Index 22.37 +5.94%

• Asia Pacific Sovereign Debt CDS Index 59.01 +1.13%

• Emerging Market CDS Index 304.68 +1.82%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.42 -.03%

• 2-Year Swap Spread 25.5 -.25 basis point

• TED Spread 26.5 -1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -20.5 unch.

Economic Gauges:

• 3-Month T-Bill Yield .03% unch

• Yield Curve 162.0 -4.0 basis points

• China Import Iron Ore Spot $51.76/Metric Tonne -.65%

• Citi US Economic Surprise Index -12.3 +.9 point

• Citi Eurozone Economic Surprise Index 8.7 -.5 point

• Citi Emerging Markets Economic Surprise Index -9.9 -.1 point

• 10-Year TIPS Spread 1.81 -2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.24 +.05

Overseas Futures:

• Nikkei 225 Futures: Indicating +44 open in Japan 
• China A50 Futures: Indicating -303 open in China

• DAX Futures: Indicating +14 open in Germany

Portfolio: 

• Slightly Higher: On gains in my medical/retail sector longs and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 25% Net Long