Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +30.3% Above 100-Day Average 
• 6 Sectors Rising, 5 Sectors Declining
• 39.0% of Issues Advancing, 56.8% Declining
• 157 New 52-Week Highs, 10 New Lows
• 89.1% of Issues Above 200-day Moving Average
• Average 14-Day RSI 54.5%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,472.0 -12.0 points
• Vix 17.8 +1.7%
• Total Put/Call .62 -10.1%
• TRIN/Arms .63 -12.5%

Thursday Watch

Evening Headlines

Bloomberg:         

• Emerging Asia’s Worst-Performing Bonds Are Set for More Losses.
• Asian Stocks Set for Mixed Start Amid Fed Comments: Markets Wrap.  
• China Breaks Down, Youth-Aged Divide, Tax Talks Tussle: Eco Day.
• Five Things You Need to Know to Start Your Day.
• AMC Skyrockets in Reality-Defying Rally That’s Feeding on Itself.  
• AMC Is Now Worth More Than Half the Companies in the S&P 500.
• Meme Mania Rekindles Small-Trader Love Affair With Options.
• Exxon May Be Corporate America’s Canary in the Coal Mine.  
• Biden Targets Crypto Tax Evaders in Global Data-Sharing Pitch.  
• The $10 Billion Bright Spot in the Battered World of Office Real Estate.
• Apple’s CEO Sets September Return to Offices in Flexible Setup.

Wall Street Journal:

• Yes, It’s Still the Economy, Stupid.
• Behind Your Long Wait for Packages.
• The Progressive Infrastructure Blacklist.
• What Did Fauci Tell Trump About Wuhan?
• Banning Critical Race Theory.
• Ransomware Scourge Continues as Essential Services Are Hit.
• Real-Estate Sales Are Booming. The Rental Market Is Following Suit.
• CEO Pay Increasingly Tied to Diversity Goals.

Fox News:

• Frequent nemesis Rand Paul calls for Fauci's firing over unearthed emails on COVID, lab-leak theory.
• Swanky celebrity restaurants rocked by gun violence.
  

CNBC.com:

• Companies spending more on wages and supplies, but still can’t find enough workers, Fed report says. 
• Tesla faces pressure as EV competition heats up, ex-Ford CEO say.
• Activist firm Engine No. 1 claims third Exxon board seat.
• Bed Bath & Beyond shares surged more than 60%, buoyed by meme stock mania, product news.
• It could be a hot summer ahead for oil prices.

MarketWatch.com:     

• FireEye to sell FireEye unit for more than $1 billion and become Mandiant.  
• Fed to sell corporate bond holdings purchased during pandemic.   
• AMC’s over 3,000% gain so far in 2021 makes it the best performing U.S. stock, but its bonds say otherwise.

Zero Hedge:

• Email Shows Researcher Who Funded Wuhan Lab, Admits Manipulating Coronaviruses, Thanked Fauci For Dismissing Lab-Leak Theory.
• Chamber Of Commerce Confirms US Labor Shortage Is A "National Economic Crisis"
• The Key Missing Ingredient In Biden's $6 Trillion Budget Is Honesty.
• "Expect the Unexpected" Indeed - Fauci's Pandemic-Profiteering Book Was Just Pulled From Amazon, Barnes & Noble.
• Bibi Finally Out As "Change Coalition" Moves Fast On Knesset Approval.
• Israel's New Mossad Chief Threatens More Assassinations & Attacks Inside Iran.
• Step Aside AMC: Here Are The Most Shorted Stocks Right Now.
• As Reddit Rampage Began, Hedge Funds Unleashed Biggest Pile Up Into Shorts In 5 Years.
• First Russia, Now China? President Biden Readies Watered-Down Beijing Blacklist Order.
• Oil Algos Confused After Big Crude Draw, Product Build.
• Larry Fink: Inflation Will Be A "Pretty Big Shock".
• Greenwald: The Democrats' New War On (Domestic White) Terror Has Already Begun...
• Reddit-Rebels Rout Big-Shorts; Bonds, Bitcoin, & Bullion Bid.

Newsmax:

• Trump Slams Biden Over Dismantling 'Remain in Mexico'.
  

TheGatewayPundit.com:

• Tucker Carlson ROASTS Serial Liar Dr. Fauci — Evidence Implicates Fauci in Dangerous Gain of Function Research – Should be Under Criminal Investigation (VIDEO).
• Dr. Farella of America’s Frontline Doctors: No Covid Jabs For Kids – Children Have Robust Immune Systems and Confer Immunity to Adults (AUDIO).
• Revealed: How Bill Barr and Chris Wray Worked to Block Trump’s Efforts to Go After Antifa (VIDEO).
• “Joe Biden Is the First President Who Doesn’t Want America to be a Nation at All” – President Trump RIPS Biden and His Deranged Open Borders Policy.

The Epoch Times: 

• ‘In Plain Sight’: New Report Details CCP’s Unrestricted Influence Operations in Canada.
• US Agency Not Doing Its Job to Halt Tech to China’s Military: Congressional Report.

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 +.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 86.25 +.5 basis point.

• China Sovereign CDS 37.0 unch.

• Bloomberg Emerging Markets Currency Index 61.68 +.01%.
• Bloomberg Global Risk-On/Risk Off Index 3,474.0 +14.0 points.
• Volatility Index(VIX) futures 21.04 -.03%.
• FTSE 100 futures +.34%.

• S&P 500 futures +.12%.

• NASDAQ 100 futures +.20%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (CIEN)/.48
• CONN)/.31
• (SJM)/1.66
• (TTC)/1.22
  

After the Close:

• (AVGO)/6.46
• (CHPT)/-.12
• (COO)/3.10
• (CRWD)/.06
• (DOCU)/.28
• (FIVE)/.65
• (LULU)/.91
• (MDB)/-.36
• (NX)/.30
• (WORK)/-.01
• (ZUMZ)/.01
  

Economic Releases

7:30 am EST

• Challenger Job Cuts YoY for May.

8:15 am EST:

• The ADP Employment Change for May is estimated to fall to 650K versus 742K in April.

8:30 am EST:

• Initial Jobless Claims for last week are estimated to fall to 388K versus 406K the prior week.
• Continuing Claims are estimated to fall to 3615K versus 3642K prior.

10:00 am EST

• ISM Services Index for May is estimated to rise to 63.0 versus 62.7 in April.

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,409,000 barrels versus a -1,662,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -1,836,360 barrels versus a -1,745,000 barrel decline the prior week. Distillate inventories are estimated to fall by -2,054,820 barrels versus a -3,013,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.69% versus a +.7% gain prior.

Upcoming Splits

• (NEOG) 2-for-1
  

Other Potential Market Movers

• The Fed's Quarles speaking, China Services PMI report, weekly EIA natural gas inventory report, (F) May sales release, (COST) May sales results and the (GM) fireside chat with Credit Suisse could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are modestly higher, boosted by commodity and technology 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 Higher into Final Hour on Economic Optimism, Oil Gain, Short-Covering, Energy/Tech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Above Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 17.5 -2.4%
• Bloomberg Global Risk On/Risk Off Index 3,485.0 +14.0 points

• Euro/Yen Carry Return Index 138.24 +.04%

• Emerging Markets Currency Volatility(VXY) 9.1 +.33%

• S&P 500 Implied Correlation 50.4 +4.3%

• ISE Sentiment Index 185.0  +72.0 points
  

• Total Put/Call .66 unch.

• NYSE Arms .58 -19.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.09 +.01%
  

• US Energy High-Yield OAS 424.47 -.76%

• European Financial Sector CDS Index 57.34 -.1%

• Italian/German 10Y Yld Spread 108.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 86.25 +.23%
  

• Emerging Market CDS Index 157.04 -.64%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 39.35 +.54%

• 2-Year Swap Spread 8.25 -.5 basis point

• TED Spread 11.75 -.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.75 -1.25 basis points
  
• MBS  5/10 Treasury Spread  64.75 +1.25 basis points
  
• IHS Markit CMBX BBB- 6 72.0 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.67 +.26%
• 3-Month T-Bill Yield .01% unch.
  

• Yield Curve 146.0 -1.0 basis point
  

• China Iron Ore Spot 196.50 USD/Metric Tonne -2.1%

• Citi US Economic Surprise Index 9.2 +.4 point

• Citi Eurozone Economic Surprise Index 151.0 -5.4 points
  

• Citi Emerging Markets Economic Surprise Index 59.50 -.4 point

• 10-Year TIPS Spread 2.46 -1.0 basis point
• 93.0% chance of no change at Sept. 22nd meeting, 93.0% chance of no change at Nov. 3rd meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -66 open in Japan 
• China A50 Futures: Indicating +65 open in China

• DAX Futures: Indicating -14 open in Germany

Portfolio:

• Slightly Higher: On gains in my technology/commodity sector longs
  

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long
  

Bear Radar

 Style Underperformer:

• Small-Cap Growth -.4%

Sector Underperformers:

• 1) Steel -2.6% 2) Homebuilding -1.7% 3) Education -1.7%

Stocks Falling on Unusual Volume: 

• NTGR, PII, HZO, CWH, APS, VIVO, CMBM and IRTC
  

Stocks With Unusual Put Option Activity:

• 1) GOGO 2) TIP 3) BBBY 4) EWW 5) AMC
  

Stocks With Most Negative News Mentions:

• 1) TGLS 2) IRTC 3) CAN 4) BEKE 5) IMAX
  

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value +.5%

Sector Outperformers:

• 1) Oil Services +7.7% 2) Energy +1.8% 3) Computer Services +1.0%

Stocks Rising on Unusual Volume:

• CNST, AMC, BBBY, PETS, SKLZ, BGS, SLCA, MGI, MDLA, CPE, NKLA, OII, LBRT, FUBO, CELH, DNMR, BTX, WKHS, HP, NGM, BYND, LAZR, RKT, ETSY, CSOD, SEER, MUDS, IRBT, PCT, SPCE, AI, SLB, REV, MORF, SM, DXC, DBX, APXT, LGF/B, HAL, IVZ, RBLX, LIND, TR, TWNK, ABNB and NVDA
  

Stocks With Unusual Call Option Activity:

• 1) UNVR 2) PEI 3) BGS 4) PETS 5) BBBY

Stocks With Most Positive News Mentions:

• 1) MDLA 2) KIN 3) ETSY 4) DXC 5) RPRX
  

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +4.2% Above 100-Day Average 
• 8 Sectors Rising, 3 Sectors Declining
• 53.5% of Issues Advancing, 42.2% Declining
• 282 New 52-Week Highs, 5 New Lows
• 89.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 55.2%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,469.0 -1.0 point
• Vix 17.3 -3.5%
• Total Put/Call .76 +15.2%
• TRIN/Arms .63 -12.5%