Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -17.3% Below 100-Day Average 
• 8 Sectors Rising, 3 Sectors Declining
• 55.7% of Issues Advancing, 40.4% Declining
• 338 New 52-Week Highs, 16 New Lows
• 87.6% of Issues Above 200-day Moving Average
• Average 14-Day RSI 53.9%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,241.0 +160.0 points
• Vix 18.0 -7.7%
• Total Put/Call .77 -10.5%
• TRIN/Arms .65 -41.4%

Wednesday Watch

Evening Headlines

Bloomberg:                   

• U.S. Proposes G-7 Coordination to Counter China’s Might.   
• Australia’s Spat With China Opens Door for Grain Rival Argentina
• Covid Forecasters Warn India Deaths May Double in Coming Weeks.
• U.K. Builds New Labs to Bolster Vaccines Against Covid Variants.
• U.S. Futures, Asian Stocks Steady After Tech Drop: Markets Wrap.   
• Powell Sees Progress, Crypto Can Coexist, U.S. Blowout: Eco Day
• Yellen Clarifies Inflation Remark, Sees No Need for Fed to Hike. 
• Oil Reaches Seven-Week High With Demand Revival Gaining Traction
• Commodities Jump to Highest Since 2011 on Rebound From Virus.
• Digital Identity Startup ForgeRock Taps Banks for IPO.  
• Alba’s Honest Co. Prices IPO Within Range at $16 a Share.  
• How Covid Has Reshaped Real Estate From New York to Singapore.  
• See How the U.S. Recovery Is Unfolding in These 15 Cities.  
• WallStreetBets Forum Members Targeted in Telegram Cryptocurrency Scam.   
• Zillow Posts Profit Beat as Housing Boom Drives Web Traffic. 
• Kashkari Says Fed Shouldn’t Cut Off Jobs Recovery Prematurely.

Wall Street Journal:

• The Centers for Politics and Unions.
• Biden Wants Higher Taxes Than China’s.
• Teachers Unions’ Covid Cop-Outs Are a Winning Issue for GOP.
• Israel’s Netanyahu Fails to Form New Government.
• Inside ‘Facebook Jail’: The Secret Rules That Put Users in the Doghouse.
• Who Would Pay Biden’s Corporate Tax Hike Is Key to Policy Debate.
• Mexico City Subway Collapse Kills at Least 24.

Fox News:

• Trump launches new communications platform months after Twitter, Facebook ban. 
• Gates took cozy getaways with his ex-girlfriend during his marriage.
• Patron draws handgun as armed BLM protesters swarm restaurant.

CNBC.com:

• Yellen says U.S. pushing to end global ‘race to the bottom’ on corporate taxes.
• Goodyear Tire CEO says company has enough supply to blunt looming rubber shortage.
• Lyft shows more signs of pandemic recovery with revenue up 7% over last quarter.
• Dogecoin surges 30% to a record above 50 cents as speculative crypto trading continues.
• Facebook Workplace reaches 7 million paid subscribers.
• Krispy Kreme files for IPO, five years after going private.
• Cathie Wood’s Ark Innovation ETF drops nearly 5% amid tech sell-off, is now off 30% from high.

MarketWatch.com:     

• Caesars stock spikes after execs say ‘weekends in Las Vegas are sold out for the foreseeable future’.

Zero Hedge:

• Here Are The Companies Hiking Prices In Response To Soaring Inflation.
• Chauvin Seeks New Trial, Alleges Prosecutorial & Jury Misconduct.
• McMaken: Vaccine Passports Are Just A Way For The Regime To Expand Its Power.
• Pandora Jewelry Sparkles With Lab-Grown Diamonds In ESG Push.
• Historic Reversal: For The First Time Ever Ether Options Trading Volume Surpasses Bitcoin's.
• Arkansas Ends Sales Taxes On Gold & Silver; Additional States May Soon Follow.
• "You'll Never Be White" - Black Teacher's Racist Rant Highlights Need To Equip All Officers With Body Cameras.  
• China's Gen Z Splurges On Luxury As Its Debt-To-Income Nears An Insane 2,000%.
• Panic Hoarding Guns Now Enters 16th Month As Biden Seeks Ban.
• Silicon Valley Algorithm Manipulation Is The Only Thing Keeping Mainstream Media Alive.
• Texas "Critical Race Theory" Opponents Fight Back, Win School Board Election.
• WTI Extends Gains After Biggest Crude Draw Since January.
• Yellen Reverses Earlier Hawkish Comments Entirely, Says "I'm Not Predicting Anything".
• Service Corp Soars To Record As Funeral Company Sees Surge In Deaths.

Newsmax:

• Cheney Could Be 'Toast' in Fight With Trump Over GOP Future.
  

TheGatewayPundit.com:

• BREAKING: Windham Residents STAND WITH BACKS TURNED on Board As They Railroad Audit Process — SCREAM AND CHANT “RESIGN!” (VIDEO).
• TGP Reporter Jordan Conradson Explains the Actions of the Pink Shirts – Observers Representing Katie Hobbs Secretary of State Office Inside the Maricopa Audit.
• Top Election Operative, Ryan Macias, Who Dems Quietly Inserted into the Maricopa Audit, Is Member of Clandestine ‘National Task Force on Election Crisis’.
• Antrim County Plaintiffs Introduce New Evidence in 2020 Election Case — Experts Were Able to Compromise Data on Data and Flip Votes.
• Psaki Blames Trump for Border Crisis, Says Biden is Cleaning Up the Mess and “Taking the Challenge Head On” (VIDEO).
• AWFUL! Computer Programmer Harri Hursti Is Second Investigator Selected for Windham, NH Elections Audit — Who Is Advisory Board Member to Unscrupulous Verified Voting.

The Epoch Times: 

• Pharmaceutical Ingredients, a Strategic Weapon of China’s Communist Regime.

Digital Blackboard:

• Daily New Cases by Region.

Worldometer:

• New Cases/Deaths by state.

Rt Covid-19:

• How fast virus is growing by state.

KFF:

• State Data(Tests/Hospitalizations).

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 79.5 +.75 basis point.

• China Sovereign CDS 37.75 +1.75 basis points.

• Bloomberg Emerging Markets Currency Index 60.65 +.03%.
• Bloomberg Global Risk-On/Risk Off Index 3,084.0 +2.0 points.
• Volatility Index(VIX) futures 22.3 +.3%.
• FTSE 100 futures +.73%.

• S&P 500 futures +.12%.

• NASDAQ 100 futures +.08%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (ABC)/2.46
• (AAWW)/1.72
• (GOLD)/.31
• (BWA)/.92
• (CCL)/-1.50
• (CERN)/.74
• (FDP)/.36
• (GM)/.97
• (HTLD)/.26
• (HLT)/.12
• (JLL)/.66
• (LL)/.24
• (ODP)/.72
• (SMG)/5.47
• (TT)/.61
• (TUP)/.54
• (UTHR)/3.47
  

After the Close:

• (ADT)/.14
• (ALB)/.79
• (ALL)/3.79
• (BKNG)/-6.07
• (CF)/.56
• (ETSY)/.93
• (FOXA)/.54
• (JEF)/.95
• (KLIC)/.91
• (MRO)/-.01
• (MELI)/.08
• (MET)/1.44
• (PYPL)/1.01
• (RDFN)/-.34
• (RCII)/1.11
• (RGLD)/.82
• (RGR)/1.44
• (TWLO)/-.10
• (UBER)/-.37
  

Economic Releases

8:15 am EST

• The ADP Employment Change for April is estimated to rise to 860K versus 517K in March.
  

10:00 am EST

• ISM Services Index for April is estimated to rise to 64.1 versus 63.7 in March.
  

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,644,000 barrels versus a +90,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -450,700 barrels versus a +92,000 barrel gain the prior week. Distillate inventories are estimated to fall by -169,200 barrels versus a -3,342,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.47% versus a +.4% gain prior.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Euro Services PMI report, weekly MBA Mortgage Applications report, Wells Fargo Industrials Conference and the (COST) April sales results could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are modestly lower, weighed down by technology and consumer shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

Stocks Lower into Final Hour on Less Dovish Yellen Comments, Valuation Concerns, Dollar Strength, Alt Energy/Biotech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 19.9 +8.8%
• Bloomberg Global Risk On/Risk Off Index 3,039.0 -110.0 points

• Euro/Yen Carry Return Index 135.78 -.17%

• Emerging Markets Currency Volatility(VXY) 9.6 +.7%

• S&P 500 Implied Correlation 52.0 +1.4%

• ISE Sentiment Index 121.0 +7.0 points
  

• Total Put/Call .87 +16.0%

• NYSE Arms 1.13 +13.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.0 +1.4%
  

• US Energy High-Yield OAS 436.64 +.03%

• European Financial Sector CDS Index 59.61 +2.26%

• Italian/German 10Y Yld Spread 110.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 79.16 +.70%
  

• Emerging Market CDS Index 169.35 +1.14%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 39.40 +.29%

• 2-Year Swap Spread 11.5 -.25 basis point

• TED Spread 17.0 -.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.75 -.25 basis point
  
• MBS  5/10 Treasury Spread  63.0 +1.25 basis points
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.63 -.33%
• 3-Month T-Bill Yield .01% unch.
  

• Yield Curve 148.0 unch.
  

• China Iron Ore Spot 184.50 USD/Metric Tonne +.7%

• Citi US Economic Surprise Index 22.8 -1.0 point

• Citi Eurozone Economic Surprise Index 158.1 -.5 point
  

• Citi Emerging Markets Economic Surprise Index 51.8 -3.9 points

• 10-Year TIPS Spread 2.43 +1.0 basis point
• 89.0% chance of no change at Sept. 22nd meeting, 89.2% chance of no change at Nov. 3rd meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -102 open in Japan 
• China A50 Futures: Indicating -307 open in China

• DAX Futures: Indicating +61 open in Germany

Portfolio:

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

• Disclosed Trades:  None
  

• Market Exposure: 75% Net Long
  

Bear Radar

Style Underperformer:

• Small-Cap Growth -2.4%

Sector Underperformers:

• 1) Alt Energy -3.9% 2) Biotech -2.9% 3) Airlines -2.9%

Stocks Falling on Unusual Volume: 

• ATVI, CRSR, WMG, EVER, SNDX, MTOR, GLDD, DNMR, AVIR, FRPT, MRNA, CTLT, ENPH, IPGP, NVAX, IRBT, SABR, RCM, MAXR and CCXI
  

Stocks With Unusual Put Option Activity:

• 1) CCXI 2) ASHR 3) IRBT 4) TTWO 5) ARKK
  

Stocks With Most Negative News Mentions:

• 1) SDC 2) JMIA 3) CAN 4) MAXR 5) SEDG
  

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Value -.2%

Sector Outperformers:

• 1) Steel +3.7% 2) Banks +1.1% 3) Healthcare Providers +1.1%

Stocks Rising on Unusual Volume:

• UFS, ARNC, MVIS, IT, STRL, SLCA, REGI, TBBK, CLF, SEE, CEIX, CWH, X, HSIC, LEG, SCHN, SKLZ, SCI, BCEI, GHL, CR, CVS, MPLX, EL, GVA and BPFH
  

Stocks With Unusual Call Option Activity:

• 1) PRTY 2) LKQ 3) WDAY 4) IRBT 5) CHGG

Stocks With Most Positive News Mentions:

• 1) CVS 2) CLF 3) ARNC 4) VXRT 5) HSIC
  

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -6.1% Below 100-Day Average 
• 0 Sectors Rising, 11 Sectors Declining
• 29.3% of Issues Advancing, 67.2% Declining
• 216 New 52-Week Highs, 26 New Lows
• 88.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 53.0%
  
• Bloomberg Global Risk-On/Risk-Off Index 2,963.0 -192.0 points
• Vix 20.7 +13.0%
• Total Put/Call .88 +17.3%
• TRIN/Arms 1.20 +20.0%