Bear Radar

Style Underperformer:

• Mid-Cap Value -.7%

Sector Underperformers:

• 1) Oil Service -3.3% 2) Gold & Silver -3.0% 3) Steel -2.0%

Stocks Falling on Unusual Volume: 

• CBF, HTGC, COMM, THS, BEAT, GKOS, VIAB, LKSD, ENTL, LNTH, CAKE, TGH, SLCA, LPI, CATM, UNT, STOR, MASI, WSR, LVLT, DDD and CLVS

Stocks With Unusual Put Option Activity:

• 1) SLCA 2) NBR 3) OAS 4) SQ 5) CTL

Stocks With Most Negative News Mentions:

• 1) CAKE 2) EEP 3) CTL 4) HEP 5) HFC

Charts:

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

Bull Radar

Style Outperformer:

• Mid-Cap Growth +.2%

Sector Outperformers:

• 1) Drugs +.8% 2) Biotech +.7% 3) Software +.4%

Stocks Rising on Unusual Volume:

• CLDR, PVTB, FORM, GIS, RAIL, USNA, SQ, DATA, RACE, LITE, BREW, KLIC, NSIT, ATSG, VWR, STMP, CEVA, SNI, HIIQ, EVTC, CCE, MGPI, NICE, CENTA, FIVN, OSUR, USCR, BZH, CSGS, IIVI, PRTK SFS, INOV, ARRS, GOGO, XPO, FOXF, ANSS, OMF, CF, GPN, ZTS, ALGN, CECO, VIAV, GMED, REGN, ITRI, VAC, ICPT, BRKR, MMS, ABC, AXDX, FEYE, TPX and ACIW

Stocks With Unusual Call Option Activity:

• 1) GIS 2) FMSA 3) FOXA 4) VIAB 5) XLU

Stocks With Most Positive News Mentions:

• 1) DLPH 2) GMED 3) EMKR 4) REGN 5) TLRD

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +34.5% Above 100-Day Average
• 6 Sectors Rising, 4 Sectors Declining
• 57.3% of Issues Advancing, 42.7% Declining
• 114 New 52-Week Highs, 85 New Lows
• 49.8% of Issues Above 200-day Moving Average
• Average 14-Day RSI 36.4%
• Vix 10.7 +.6%
• Total Put/Call .76 -29.6%
• TRIN/Arms .82 -14.5%

Thursday Watch

Night Trading 

• Asian equity indices are -.5% to +.5% on average.
• Asia Ex-Japan Investment Grade CDS Index 92.25 -.5 basis point. 
• Asia Pacific Sovereign CDS Index 21.75 -.25 basis point.
• Bloomberg Emerging Markets Currency Index 72.34 unch.
• S&P 500 futures +.12%. 
• NASDAQ 100 futures +.11%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (APA)/.16
• (AVP)/.01
• (ARW)/1.44
• (AVP)/.01
• (CAB)/.38
• (CHK)/.17
• (DBD)/.01
• (D)/.95
• (H)/.32
• (K)/1.00
• (MBLY)/.24
• (PWR)/.41
• (REGN)/3.07
• (SFM)/.30
• (VIAB)/.59
• (ZTS)/.48
• (CBS)/.95
• (MRO)/-.10
• (MNST)/.32
• (SHAK)/.08
• (OLED)/.00
• (YRCW)/-.21
• (ZG)/.05

Economic Releases  

7:30 am EST

• Challenger Job Cuts YoY for April.

8:30 am EST

• The Trade Deficit for March is estimated to widen to -$44.5B versus -$43.6B in February.
• Preliminary 1Q Non-Farm Productivity is estimated to fall -.1% versus a +1.3% gain in 4Q. 
• Preliminary 1Q Unit Labor Costs are estimated to rise +2.7% versus a +1.7% gain in 4Q.
• Initial Jobless Claims are estimated to fall to 248K versus 257K the prior week.
• Continuing Claims are estimated to rise to 1990K versus 1988K prior.

10:00 am EST

• Factory Orders for March are estimated to rise +.4% versus a +1.0% gain in February.

Upcoming Splits

• None of note

Other Potential Market Movers

• The China Manufacturing Services report, Eurozone Services PMI report, ECB's Mario Draghi speaking, weekly EIA natural gas inventory report, weekly Bloomberg Consumer Comfort Index, (WHR) investor day, (VZ) annual meeting and the (BKE)/(CATO)/(FRED)/(LB) monthly sales reports could also impact trading today.

BOTTOM LINE:  Asian indices are mostly lower, weighed down by industrial 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 Slightly Lower into Final Hour on Earnings Concerns, Fed Rate Hike Fears, Profit-Taking, Telecom/Hospital Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 10.80 +1.98%

• Euro/Yen Carry Return Index 128.11 +.23%

• Emerging Markets Currency Volatility(VXY) 8.47 -1.17%

• S&P 500 Implied Correlation 43.45 +8.0%

• ISE Sentiment Index 71.0 -25.26%
  

• Total Put/Call 1.05 +40.0%

• NYSE Arms .78 -23.21%

Credit Investor Angst:

• North American Investment Grade CDS Index 62.74 -.62%
  

• America Energy Sector High-Yield CDS Index 373.0 +.1%

• European Financial Sector CDS Index 71.29 -1.17%

• Western Europe Sovereign Debt CDS Index 8.26 -14.5%

• Asia Pacific Sovereign Debt CDS Index 21.74 -1.18%

• Emerging Market CDS Index 191.78 +.74%
  

• iBoxx Offshore RMB China Corporate High Yield Index 137.10 +.02%

• 2-Year Swap Spread 29.0 -1.5 basis points

• TED Spread 31.5 -2.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -32.25 +.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.42 -.07%
• 3-Month T-Bill Yield .86% +2.0 basis points
  

• Yield Curve 102.0 -1.0 basis point
  

• China Import Iron Ore Spot $68.68/Metric Tonne -.06%

• Citi US Economic Surprise Index -19.50 +2.0 points

• Citi Eurozone Economic Surprise Index 65.80 +.3 point

• Citi Emerging Markets Economic Surprise Index 33.0 -1.7 points

• 10-Year TIPS Spread 1.88 -1.0 basis point
  
• 88.4% chance of Fed rate hike at July 26 meeting, 93.1% chance at Sept. 20 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +170 open in Japan 
• China A50 Futures: Indicating -20 open in China

• DAX Futures: Indicating +15 open in Germany

Portfolio: 

• Slightly Lower: On gains in my retail/biotech sector longs 

• Disclosed Trades: None

• Market Exposure: 75% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Value -.1%

Sector Underperformers:

• 1) Hospitals -4.9% 2) Steel -4.3% 3) Telecom -2.8%

Stocks Falling on Unusual Volume: 

• IPHI, FLT, AKAM, PBPB, TWLO, DXCM, ETSY, TAP, APC, BG, AZPN, NANO, NXTM, VRSK, ARCC, BOJA, LCI, ADP, NBL, DISCA, PDCE, SNI, DVA, BCC, OMI, DENN, TSE, XOG, VIAB, HBI, CRAY, AERI and SPR

Stocks With Unusual Put Option Activity:

• 1) EPI 2) NUS 3) ETSY 4) GRPN 5) AKAM

Stocks With Most Negative News Mentions:

• 1) PBPB 2) AKAM 3) TWLO 4) ETSY 5) APC

Charts:

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