Style Underperformer:
Sector Underperformers:
- 1) Gaming -3.81% 2) REITs -2.01% 3) Biotech -1.32%
Stocks Falling on Unusual Volume:
- TEP, CBAY, DAKT, EXAS, HCN, DTYS, TRAK, WOR, HVT, ROSE, DPZ, DFT, ALKS, ANET, ORC, IMAX, AMT, MU, M, CLDT, SAH, AIR, OPHT, LEAF, XONE, VTR, RCAP and WOR
Stocks With Unusual Put Option Activity:
- 1) RMD 2) XLY 3) SMH 4) APA 5) FDX
Stocks With Most Negative News Mentions:
- 1) AAL 2) RIG 3) ROSE 4) MU 5) DO
Charts:
Style Outperformer:
Sector Outperformers:
- 1) Homebuilders +2.12% 2) Alt Energy +1.86% 3) Steel +1.77%
Stocks Rising on Unusual Volume:
- FSLR, DEPO, GTLS, CYBR, SHOO, TOL, SPWR, ZINC, FLWS, SF, RLGY, LNG, NLS and CBRL
Stocks With Unusual Call Option Activity:
- 1) BK 2) LOW 3) HPQ 4) SLXP 5) ACAS
Stocks With Most Positive News Mentions:
- 1) COH 2) DISH 3) MTH 4) SF 5) ISIS
Charts:
Evening Headlines
Bloomberg:
- Sanctions Will Not Deter Putin: Rumer. (video) Eugene Rumer, senior associate and the director of Carnegie’s Russia and
Eurasia Program, discusses the Ukraine crisis with Bloomberg's Trish
Regan on "Street Smart."
- Greek Plan to Tackle Economy Goes Before Finance Chiefs. Greece’s month-old government is about to
find out whether a package of new economic measures sketched in
recent days is enough to win more funding from the rest of the
euro region to keep the country solvent. A draft list was sent to creditor institutions on Monday,
based on a provisional agreement on Feb. 20. A Greek government
official said the policies will be provided to the euro-area
group of finance ministers on Tuesday before they discuss on a
conference call whether the commitments go far enough.
- Asian Stocks Retreat as Investors Await Greece Policies, Yellen. Asian stocks dropped as investors awaited
details on Greece’s package of economic measures and Federal
Reserve Chair Janet Yellen’s testimony to lawmakers.
The MSCI Asia Pacific Index slipped 0.1 percent to 144.79
as of 9.01 a.m. in Tokyo, with seven of its 10 industry groups
retreating.
Wall Street Journal:
- Ukraine’s Hryvnia Hits New Low; New Problems for Cease-Fire. Ukrainian military delays artillery withdrawal; central bank acts on currency. Ukraine’s central bank moved to calm panicky currency markets on Monday
after the hryvnia plummeted to a new low against the dollar, while the
cease-fire in the country’s east showed more signs of unraveling.
- Jury Finds Palestinian Authority, PLO Liable for Terrorist Attacks in Israel a Decade Ago. Federal jury orders groups to pay $218.5 million to victims’ families.
A federal jury in New York on Monday found the Palestinian Authority
and the Palestine Liberation Organization liable for supporting six
terrorist attacks in Israel more than a decade ago and ordered the
groups to pay $218.5 million to the American victims’ families. Monday’s
verdict in Manhattan federal court follows a lengthy legal battle
stemming
- Big Banks Face Scrutiny Over Pricing of Metals. U.S. Justice Department investigates price-setting process for gold, silver, platinum and palladium. U.S. officials are investigating at least 10 major banks for possible
rigging of precious-metals markets, even though European regulators
dropped a similar probe after finding no evidence of wrongdoing,
according to people close to the inquiries.
- U.S., Iran Explore Option of 10-Year Nuclear Freeze. Compromise could see 12-month ‘breakout’ period for a decade, then allow Iran to build capacity. The U.S. and Iran are exploring a nuclear deal that would keep Tehran
from amassing enough material to make a bomb for at least a decade, but
could then allow it to gradually build up its capabilities again.
- Brazil Experts Fear a Two-Year Downturn. Economists say nation is likely to suffer first back-to-back decline in GDP since 1930s. For all the debt crises, hyperinflation and boom-and-bust cycles
Brazil’s economy has suffered in recent decades, the country hasn’t
posted two consecutive years of contraction since the Great Depression.
Zero Hedge:
Business Insider:
Reuters:
- Stifel to buy Sterne Agee for $150 mln. Investment bank Stifel Financial Corp
said it will buy privately held Sterne Agee Group Inc for
$150 million to expand its wealth management and fixed-income
business. The acquisition will add 730 financial advisers, boosting
Stifel's headcount of wealth management professionals by 35
percent to more than 2,800.
- Fed's Williams says wouldn't rule out June rate hike -- Nikkei. "I wouldn't want to eliminate the possibility of a rate hike
in June," Williams was quoted as saying. Williams is among the
voting members this year on the Fed's policy-setting committee
and his thinking on monetary policy is considered in the
mainstream at the central bank.
Evening Recommendations
Night Trading
- Asian equity indices are -.25% to +.50% on average.
- Asia Ex-Japan Investment Grade CDS Index 102.25 +1.75 basis points.
- Asia Pacific Sovereign CDS Index 64.75 -.25 basis point.
- NASDAQ 100 futures +.02%.
Morning Preview Links
Earnings of Note
Company/Estimate
Economic Releases
9:00 am EST
- The S&P/CS 20 City MoM SA for December is estimated to rise +.6% versus a +.74% gain in November.
9:45 am EST
- Preliminary Markit US Services PMI for February is estimated to rise to 54.5 versus 54.2 in January.
10:00 am EST
- Consumer Confidence for February is estimated to fall to 99.5 versus 102.9 in January.
- Richmond Fed Manufacturing Index for February is estimated at 6.0 versus 6.0 in January.
Upcoming Splits
Other Potential Market Movers
- The
Fed's Yellen's testimony to Senate, Eurozone CPI/GDP reports, HSBC
China Manufacturing PMI, $26B 2Y T-Note auction, weekly US retail sales
reports, (JPM) investor day, Wells Fargo Real Estate Conference, (AKAM)
investor summit and the RBC Healthcare Conference could also impact
trading today.
BOTTOM LINE: Asian
indices are mostly higher, boosted by consumer and industrial shares
in the region. I expect US stocks to open mixed and to weaken
into the afternoon, finishing modestly lower. The Portfolio is 50% net
long heading into the day.
Broad Equity Market Tone:
- Advance/Decline Line: Lower
- Sector Performance: Most Sectors Declining
- Market Leading Stocks: Underperforming
Equity Investor Angst:
- Volatility(VIX) 14.85 +3.85%
- Euro/Yen Carry Return Index 140.77 -.49%
- Emerging Markets Currency Volatility(VXY) 10.37 +.19%
- S&P 500 Implied Correlation 63.78 +3.51%
- ISE Sentiment Index 114.0 +5.56%
- Total Put/Call .86 +8.86%
Credit Investor Angst:
- North American Investment Grade CDS Index 63.35 -.15%
- America Energy Sector High-Yield CDS Index 684.0 +.93%
- European Financial Sector CDS Index 58.88 -4.41%
- Western Europe Sovereign Debt CDS Index 24.46 -4.49%
- Asia Pacific Sovereign Debt CDS Index 64.79 -.32%
- Emerging Market CDS Index 387.82 +2.76%
- iBoxx Offshore RMB China Corporates High Yield Index 113.80 +.06%
- 2-Year Swap Spread 29.5 +1.0 basis point
- TED Spread 24.75 +.25 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -23.0 +1.75 basis points
Economic Gauges:
- 3-Month T-Bill Yield .02% +1.0 basis point
- Yield Curve 145.0 -3.0 basis points
- China Import Iron Ore Spot $63.44/Metric Tonne n/a
- Citi US Economic Surprise Index -45.60 +1.8 points
- Citi Eurozone Economic Surprise Index 50.1 -6.0 points
- Citi Emerging Markets Economic Surprise Index -10.70 +1.0 point
- 10-Year TIPS Spread 1.76 +1.0 basis point
Overseas Futures:
- Nikkei Futures: Indicating +3 open in Japan
- DAX Futures: Indicating -21 open in Germany
Portfolio:
- Higher: On gains in my biotech/medical sector longs and emerging markets shorts
- Disclosed Trades: Added to my (IWM)/(QQQ) hedges
- Market Exposure: Moved to 25% Net Long
Style Underperformer:
Sector Underperformers:
- 1) Steel -2.66% 2) Oil Tankers -2.07% 3) Gaming -1.93%
Stocks Falling on Unusual Volume:
- SLXP, CYBR, WBAI, CTB, DNOW, BCC, I, HURN, HSBC, DTLK, RCPT, NSP, DISH, SODA, ATRO, FEYE, ATLS, BA, COHU, CRTO, MHK, TSU, TSLA, ERF, VNDA, BCC and FUEL
Stocks With Unusual Put Option Activity:
- 1) VRX 2) BBY 3) ESRX 4) CRM 5) M
Stocks With Most Negative News Mentions:
- 1) RIG 2) NVDA 3) PCP 4) BA 5) WSM
Charts:
Style Outperformer:
Sector Outperformers:
- 1) HMOs +2.26% 2) Biotech +1.09% 3) Drugs +.39%
Stocks Rising on Unusual Volume:
- PPO, HLSS, VRX, DGLY, TSEM, CLDX, GSM, DISCA, AWI, NSM, CSC, NRZ, HUM, KITE and XON
Stocks With Unusual Call Option Activity:
- 1) SLXP 2) ANGI 3) AFL 4) AMAT 5) CLDX
Stocks With Most Positive News Mentions:
- 1) LH 2) RTN 3) ITRI 4) VRX 5) CL
Charts:
