Bear Radar

Style Underperformer:

• Small-Cap Value +.1%

Sector Underperformers:

• 1) Gaming -1.6% 2) Banks -.8% 3) I-Banks -.4%

Stocks Falling on Unusual Volume: 

• CYBR, ACIA, KTOS and RH

Stocks With Unusual Put Option Activity:

• 1) CPN 2) GME 3) HPQ 4) IBM 5) VOYA

Stocks With Most Negative News Mentions:

• 1) CYBR 2) KTOS 3) ATEN 4) HOME 5) AVT

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +.5%

Sector Outperformers:

• 1) Disk Drives +2.2% 2) Gold & Silver +2.2% 3) Computer Hardware +1.4%

Stocks Rising on Unusual Volume:

• NEFF, MLP, DDC, NTNX, CLLS, NTAP, CARA, MBUU, BRSS, YY, SRG, CSOD, FWRD, NRG, HEES, NEWR, YRD, NOAH, BETR, HPP, NSH, AXON, ULTA, AAOI, COHR, SRG and Z

Stocks With Unusual Call Option Activity:

• 1) NTAP 2) LOW 3) WDC 4) UA 5) AAOI

Stocks With Most Positive News Mentions:

• 1) AAOI 2) ULTA 3) AMD 4) CSOD 5) WMT

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -12.5% Below 100-Day Average
• 9 Sectors Rising, 1 Sector Declining
• 68.1% of Issues Advancing, 27.7% Declining
• 92 New 52-Week Highs, 3 New Lows
• 46.8% of Issues Above 200-day Moving Average
• Average 14-Day RSI 37.2%
• Vix 9.9 +.3%
• Total Put/Call .75 -12.8%
• TRIN/Arms 1.17 +78.5%

Friday Watch

Night Trading 

• Asian equity indices are -.25% to +.50% on average.

• Asia Ex-Japan Investment Grade CDS Index 85.25 -1.0 basis point. 

• Asia Pacific Sovereign CDS Index 21.75 -.25 basis point.

• Bloomberg Emerging Markets Currency Index 73.02 +.01%.

• S&P 500 futures -.02%.

• NASDAQ 100 futures -.07%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (C)/1.21

• (FHN)/.26

• (INFY)/14.90

• (JPM)/1.59

• (PNC)/2.02

• (WFC)/1.01

Economic Releases 
8:30 am EST

• The CPI MoM for June is estimated to rise +.1% versus a -.1% decline in May. 

• The CPI Ex Food and Energy MoM for June is estimated to rise +.2% versus a +.1% gain in May.

• Real Avg. Weekly/Hourly Earnings YoY for June.

• Retail Sales Advance MoM for June is estimated to rise +.1% versus a -.3% decline in May.

• Retail Sales Ex Autos for June is estimated to rise +.2% versus a -.3% decline in May.

• Retail Sales Ex Autos and Gas for June is estimated to rise +.4% versus unch. in May.
  

9:15 am EST

• Industrial Production MoM for June is estimated to rise +.3% versus unch. in May.

• Capacity Utilization for June is estimated to rise to 76.8% versus 76.6% in May. 

• Manufacturing Production for June is estimated to rise +.2% versus a -.4% decline in May.

10:00 am EST

• Preliminary Univ. of Mich. Consumer Sentiment for July is estimated to fall to 95.0 versus 95.1 in June. 

• Business Inventories for May is estimated to rise +.3% versus a -.2% decline in April.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Kaplan speaking, President Trump's visit to France and the Japan Industrial Production report could also impact trading today.

BOTTOM LINE:  Asian indices are mostly higher, boosted by technology and commodity shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the day.

Stocks Rising into Final Hour on Earnings Optimism, Oil Gain, Short-Covering, Biotech/Retail Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 10.10 -1.94%

• Euro/Yen Carry Return Index 134.73 -.01%

• Emerging Markets Currency Volatility(VXY) 7.76 +.13%

• S&P 500 Implied Correlation 32.09 +3.45%

• ISE Sentiment Index 94.0 +6.82%
  

• Total Put/Call .84 +20.0%

• NYSE Arms .64 -43.78%

Credit Investor Angst:

• North American Investment Grade CDS Index 58.93 -2.61%
  

• America Energy Sector High-Yield CDS Index 461.0 -1.92%

• European Financial Sector CDS Index 50.90 -2.75%

• Western Europe Sovereign Debt CDS Index 6.12 -.57%

• Asia Pacific Sovereign Debt CDS Index 21.76 -1.02%

• Emerging Market CDS Index 196.86 -.61%
  

• iBoxx Offshore RMB China Corporate High Yield Index 140.04 -.02%

• 2-Year Swap Spread 24.0 -1.0 basis point

• TED Spread 26.25 +1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -26.25 +.75 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.03 +.11%
• 3-Month T-Bill Yield 1.03% -1.0 basis point
  

• Yield Curve 98.0 +1.0 basis point

• China Import Iron Ore Spot $65.91/Metric Tonne +2.9%

• Citi US Economic Surprise Index -54.70 +1.9 points

• Citi Eurozone Economic Surprise Index 37.20 -.8 point

• Citi Emerging Markets Economic Surprise Index 13.60 +.5 point

• 10-Year TIPS Spread 1.78 +3.0 basis points
  
• 24.3% chance of Fed rate hike at Sept. 20 meeting, 25.9% chance at Nov. 1 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +36 open in Japan 
• China A50 Futures: Indicating -15 open in China

• DAX Futures: Indicating +3 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 100% Net Long

Morning Market Internals

NYSE Composite Index:

• Volume Running -11.6% Below 100-Day Average
• 5 Sectors Rising, 5 Sectors Declining
• 42.2% of Issues Advancing, 52.7% Declining
• 83 New 52-Week Highs, 6 New Lows
• 46.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 37.2%
• Vix 10.3 unch.
• Total Put/Call .92 +31.4%
• TRIN/Arms .70 -39.0%