Stocks Higher into Final Hour on US Economic Soft-Landing Hopes, Less European/Emerging Markets/US High-Yield Debt Angst, Dollar Weakness, Tech/Alt Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume:  Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 19.4 +1.3%
• DJIA Intraday % Swing .68%
  
• Bloomberg Global Risk On/Risk Off Index 54.3 +2.5%

• Euro/Yen Carry Return Index 150.6 +.22%

• Emerging Markets Currency Volatility(VXY) 12.1 +.08%

• CBOE S&P 500 Implied Correlation Index 34.8 +.17% 

• ISE Sentiment Index 112.0 +30.0 points
  

• Total Put/Call .96 -2.0%

• NYSE Arms 1.08 +77.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 78.7 -2.7%
  

• US Energy High-Yield OAS 405.3 -1.84%
• Bloomberg TRACE # Distressed Bonds Traded 458.0 -15
  

• European Financial Sector CDS Index 103.11 -3.2% 
• Deutsche Bank Subordinated 5Y Credit Default Swap 365.978 -23.0%
  

• Italian/German 10Y Yld Spread 186.0 basis basis points +4.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 133.0 -5.0%
  

• Emerging Market CDS Index 235.30 -2.2%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 26.69 +.58%

• 2-Year Swap Spread 34.0 basis points +.75 basis point
  

• TED Spread 39.75 basis points -8.5 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -19.75 +2.0 basis points
  
• MBS  5/10 Treasury Spread  155.0 -2.0 basis points
  
• Bloomberg CMBS Investment Grade Bbb Average OAS 670.0 +4.0 basis points
  
• Avg. Auto ABS OAS 91.0 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 47.9 +.18%
• 3-Month T-Bill Yield 4.74% +1.0 basis point
  

• China Iron Ore Spot 124.75 USD/Metric Tonne -.46%
• Dutch TTF Nat Gas(European benchmark) 43.6 euros/megawatt-hour +1.9%

• Citi US Economic Surprise Index 59.2 -1.6 points

• Citi Eurozone Economic Surprise Index 54.2 -5.8 points
  

• Citi Emerging Markets Economic Surprise Index 21.8 -.7 point
  
• S&P 500 Blended Forward 12 Months Mean EPS Estimate 226.11 -.18:  Growth Rate +1.7% -.1 percentage point, P/E 17.9 +.3
  
• S&P 500 Current Year Estimated Profit Margin 12.31% -2.0 basis points
  
• Bloomberg US Financial Conditions Index -.32 +8.0 basis points
• Bloomberg Euro-Zone Financial Conditions Index -4.05 +10.0 basis points
  
• US Yield Curve -55.25 basis points (2s/10s) -4.5 basis points
• US Atlanta Fed 1Q GDPNow Forecast +3.19% unch.
  

• Cleveland Fed Inflation Nowcast Core PCE YoY +4.73% unch.: CPI YoY +5.22% unch.
  
• 10-Year TIPS Spread 2.34 +1.0 basis point
  
• Highest target rate probability for June 14th FOMC meeting: 49.0%(-9.5 percentage points) chance of 4.75%-5.0%. Highest target rate probability for July 26th meeting: 48.6%(+2.3 percentage points) chance of 4.75%-5.0%.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +188 open in Japan 
• China A50 Futures: Indicating +70 open in China

• DAX Futures: Indicating +139 open in Germany

Portfolio:

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

• Disclosed Trades:  Covered some of my (IWM)/(QQQ) hedges
  

• Market Exposure: Moved to 75% Net Long