Morning Market Internals

NYSE Composite Index:

• Volume Running +10.9% Above 100-Day Average
• 1 Sector Rising, 9 Sectors Declining
• 56.4% of Issues Advancing, 40.1% Declining
• 96 New 52-Week Highs, 19 New Lows
• 52.8% of Issues Above 200-day Moving Average
• Average 14-Day RSI 41.3%
• Vix 15.9 -.8%
• Total Put/Call 1.13 +4.6%
• TRIN/Arms .82 -49.1%

Thursday Watch

Night Trading 

• Asian equity indices are -.50% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 143.75 +.75 basis point. 
• Asia Pacific Sovereign CDS Index 55.50 +.5 basis point. 
• Bloomberg Emerging Markets Currency Index 72.19 +.05%. 
• S&P 500 futures +.34%. 
• NASDAQ 100 futures +.38%.

Morning Preview Links

Earnings of Note
Company/Estimate 

• (DDD)/.05
• (BABA)/.56
• (ABC)/1.58
• (APA)/-.88
• (AVP)/.03
• (BDX)/2.01
• (CVC)/.20
• (CHK)/-.11  
• (DISCA)/.43
• (K)/.94
• (MRK)/.85
• (MGM)/.11
• (MBLY)/.14
• (PWR)/.26
• (REGN)/2.55
• (ATVI)/.12
• (CERN)/.53
• (LOCO)/.18
• (FLR)/.84
• (GPRO)/-.59
• (ICPT)/-3.76 
• (MHK)/2.32
• (NWSA)/.04
• (YELP)/.03

Economic Releases  
8:15 am EST

• Challenger Job Cuts YoY for April.

8:30 am EST

• Initial Jobless Claims are estimated to rise to 260K versus 257K the prior week.
• Continuing Claims are estimated to fall to 2128K versus 2130K prior.   

Upcoming Splits 

• None of note

Other Potential Market Movers

• The Fed's Lockhart speaking, Eurozone retail sales reports, weekly Bloomberg Consumer Comfort Index, (FAST) April sales and the (VZ) annual meeting could also impact trading today.

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

Stocks Falling into Final Hour on Global Growth Worries, European/Emerging Markets/US High-Yield Debt Angst, Earnings Outlook Concerns, Commodity/Biotech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 16.76 +7.44%

• Euro/Yen Carry Return Index 128.63 +.47%

• Emerging Markets Currency Volatility(VXY) 10.89 +2.45%

• S&P 500 Implied Correlation 57.87 +1.94%

• ISE Sentiment Index 71.0 +20.34%

• Total Put/Call .99 -10.0%

• NYSE Arms 1.51 -22.44% 

Credit Investor Angst:

• North American Investment Grade CDS Index 83.31 +2.25%
  

• America Energy Sector High-Yield CDS Index 1,125.0 +3.01%

• European Financial Sector CDS Index 99.05 +3.83%

• Western Europe Sovereign Debt CDS Index 25.70 +.19%

• Asia Pacific Sovereign Debt CDS Index 54.61 +1.26%

• Emerging Market CDS Index 295.25 +1.80%
  

• iBoxx Offshore RMB China Corporate High Yield Index 127.14 +.09%

• 2-Year Swap Spread 14.0 -.25 basis point
  

• TED Spread 43.25 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -24.50 -.5 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.24 -.67%
• 3-Month T-Bill Yield .19% -1.0 basis point
  

• Yield Curve 105.0 +1.0 basis point
  

• China Import Iron Ore Spot $60.09/Metric Tonne -5.24%

• Citi US Economic Surprise Index -28.40 +3.0 points

• Citi Eurozone Economic Surprise Index -12.50 -2.2 points

• Citi Emerging Markets Economic Surprise Index 11.0 -1.6 points

• 10-Year TIPS Spread 1.64% -1.0 basis point
  
• 22.6% chance of Fed rate hike at July 27 meeting, 35.0% chance at September 21 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -207 open in Japan 
• China A50 Futures: Indicating -69 open in China

• DAX Futures: Indicating +14 open in Germany

Portfolio: 

• Slightly Higher: On gains in my index hedges and emerging markets shorts
  

• Disclosed Trades: None

• Market Exposure: 25% Net Long

Bear Radar

Style Underperformer:

• Small-Cap Value -1.5%

Sector Underperformers:

• 1) Gold & Silver -5.2% 2) Biotech -2.9% 3) Oil Service -2.8%

Stocks Falling on Unusual Volume:

• RUBI, CRAY, MBUU, OZRK, SERV, KFRC, MDCA, TMUSP, PCLN, HTWR, CALD, BNK, CHEF, GTMED, ANTX, TARO, Q, HSNI, AVD, SFS, FSTR, SHOP, CFX, IMS, SUM, VIRT, TREE, WD, KTWO, MYGN, UA, XPO, CFX, SERV, AMAG, ESPR, GMED, NKTR and RLYP

Stocks With Unusual Put Option Activity:

• 1) Z 2) BBT 3) XLV 4) JWN 5) XLB

Stocks With Most Negative News Mentions:

• 1) DNR 2) VALE 3) UA 4) FSTR 5) RLYP

Charts:

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

Bull Radar

Style Outperformer: 

• Small-Cap Value -.5%

Sector Outperformers:

• 1) Utilities +1.1% 2) REITs +1.1% 3) Restaurants +.6% 

Stocks Rising on Unusual Volume: 

• GKOS, KRA, Z, MTCH, PLT, ZG, TSE, NTRI, HAIN, QUAD, TGI, PZZA, KAR, IAC, ICE, PRO, CHUY, VSI, FTK, FMI, KAR, HYH and CAR

Stocks With Unusual Call Option Activity: 

• 1) WTW 2) EMN 3) NRG 4) BAX 5) RTN

Stocks With Most Positive News Mentions: 

• 1) Z 2) NTRI 3) SKYW 4) FDX 5) CDW

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +4.1% Above 100-Day Average
• 1 Sector Rising, 9 Sectors Declining
• 36.6% of Issues Advancing, 60.3% Declining
• 74 New 52-Week Highs, 22 New Lows
• 54.6% of Issues Above 200-day Moving Average
• Average 14-Day RSI 42.0%
• Vix 16.6 +6.3%
• Total Put/Call .88 -20.0%
• TRIN/Arms 1.62 -16.5%