Bear Radar

Style Underperformer:

• Small-Cap Value (-1.64%)

Sector Underperformers:

• Oil Service (-5.37%), Networking (-2.67%) and Banks (-2.25%)

Stocks Falling on Unusual Volume:

• FMX, OII, TTI, BP, MBT, BCSI, QNST, QSII, ATPG, RVBD, PANL, PMTC, NTAP, AVGO, SPWRB, FFIV, WBSN, FOSL, BIIB, ATHR, MTSC, TEVA, TECD, SIVB, ASML, PXQ, UVV, PBS, HIT, NE, GDP, ESV and DRQ
  

Stocks With Unusual Put Option Activity:

• 1) ATPG 2) MDR 3) GGB 4) AMT 5) JCG
  

Stocks With Most Negative News Mentions:

• 1) BP 2) XOM 3) GS 4) RIG 5) EXC
  

Bull Radar

Style Outperformer:

• Mid-Cap Value (-.54%)

Sector Outperformers:

• Utilities (+.26%), Drugs (+.24%) and Education (+.04%)

Stocks Rising on Unusual Volume:

• OVTI, VVUS, APKT, NFLX, PTEN, JCG, NX, MDU, KR, NBR and ESL
  

Stocks With Unusual Call Option Activity:

• 1) SEED 2) AGN 3) DECK 4) ESI 5) OVTI
  

Stocks With Most Positive News Mentions:

• 1) AAPL 2) IBM 3) BA 4) COST 5) GOOG

Friday Watch

Evening Recommendations
Citigroup:

• Upgraded (MFC) to Buy, target $21.
• Upgraded (MDU) to Buy, target $22.50.
• Reiterated Buy on (TRV), target $61.
• Reiterated Buy on (TIF), target $55.
  

Thomas Weisel:

• Upgraded (DECK) to Overweight, target $170.

Pacific Crest:

• Upgraded (XLNX) to Outperform, target $33.

Night Trading

• Asian indices are +.75% to +1.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 128.50 -17.0 basis points.
• S&P 500 futures -.25%.
  
• NASDAQ 100 futures -.25%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (QSII)/.49

Economic Releases
8:30 am EST

• Personal Income for April is estimated to rise +.4% versus a +.3% gain in March.
• Personal Spending for April is estimated to rise +.3% versus a +.6% gain in March.
• The PCE Core for April is estimated to rise +.1% versus a +.1% gain in March.

9:45 am EST

• Chicago Purchasing Manager for May is estimated to fall to 61.0 versus a reading of 63.8 in April.

9:55 am EST

• The Final Univ. of Mich. Consumer Confidence reading for May is estimated at 73.3 versus a prior estimate for 73.3.

Upcoming Splits

• (IDSA) 3-for-2
  

Other Potential Market Movers

• The NAPM-Milwaukee Index and (LOW) shareholders meeting could also impact trading today.
  

BOTTOM LINE: Asian indices are higher, boosted by commodity and technology 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.

Bear Radar

Style Underperformer:

• Large-Cap Value (+2.20%)

Sector Underperformers:

• Education (-.91%), Medical Equipment (+.95%) and Defense (+1.42%)

Stocks Falling on Unusual Volume:

• ESI, EDMC, LOPE, RMBS, SLXP, VRTX, MON, BIG and BCA
  

Stocks With Unusual Put Option Activity:

• 1) RMBS 2) WAG 3) WY 4) MON 5) NVS
  

Stocks With Most Negative News Mentions:

• 1) BP 2) BGP 3) MON 4) RIG 5) DIS
  

Bull Radar

Style Outperformer:

• Mid-Cap Value (+2.79%)

Sector Outperformers:

• Disk Drives (+5.50%), Oil Tankers (+5.25%) and Steel (+5.22%)

Stocks Rising on Unusual Volume:

• PT, MMR, IVN, SGY, BP, NTAP, ORBK, MSFT, RUE, COST, EXXI, QSFT, HIT, PAY, JKK, WBD, TIF, JAS, IGW, GCO and ABM
  

Stocks With Unusual Call Option Activity:

• 1) RF 2) TIF 3) RMBS 4) RRI 5) NOK
  

Stocks With Most Positive News Mentions:

• 1) TIF 2) HJZ 3) COST 4) MSFT 5) NTAP

Thursday Watch

Night Trading

• Asian indices are -.50% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 155.50 -5.0 basis points.
• S&P 500 futures +.55%.
  
• NASDAQ 100 futures +.54%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (NOVL)/.07
• (OVTI)/.17
• (JCG)/.57
• (GES)/.49
• (BCSI)/.40
• (COST)/.66
• (HNZ)/.59
• (BIG)/.67
• (TIF)/.37

Economic Releases
8:30 am EST

• 1Q GDP is estimated to rise +3.4% versus a prior estimate of a +3.2% gain.
• 1Q Personal Consumption is estimated to rise +3.8% versus a prior estimate of a +3.6% gain.
• 1Q GDP Price Index is estimated to rise +.9% versus a prior estimate of a +.9% gain.
• 1Q Core PCE is estimated to rise +.6% versus a prior estimate of a .6% gain.
• Initial Jobless Claims for last week are estimated to fall to 455K versus 471K the prior week.
• Continuing Claims are estimated to fall to 4613K versus 4625K prior.
  

Upcoming Splits

• (IDSA) 3-for-2
  

Other Potential Market Movers

• The Fed's Bullard speaking, $31 Bln 7-Year Treasury Note Auction, weekly EIA natural gas inventory report, Citi Healthcare Conference, UBS Oil/Gas Conference, Barclays Communications/Media/Technology Conference, (BRS) analyst meeting, (NEM) investor day, (NVLS) Q2 Mid-Quarter Update and the (AEL) investor day could also impact trading today.
  

BOTTOM LINE: Asian indices are mostly lower, weighed down by real estate and automaker shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.