Morning Market Internals

NYSE Composite Index:

• Volume Running +3.5% Above 100-Day Average
• 7 Sectors Rising, 3 Sectors Declining
• 48.9% of Issues Advancing, 46.4% Declining
• 246 New 52-Week Highs, 21 New Lows
• 46.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 39.2%
• Vix 10.2 +3.1%
• Total Put/Call .75 -25.0%
• TRIN/Arms 1.84 +66.5%

Friday Watch

Night Trading 

• Asian equity indices are +.25% to +1.0% on average.
• Asia Ex-Japan Investment Grade CDS Index 88.25 -2.5 basis points. 
• Asia Pacific Sovereign CDS Index 19.25 -.5 basis point.
• Bloomberg Emerging Markets Currency Index 73.21 +.01%.
• S&P 500 futures +.18%.
• NASDAQ 100 futures +.24%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (GOOS)/-.19
• (HOV)/-.03

Economic Releases 

8:30 am EST

• The Change in Non-Farm Payrolls for May is estimated to fall to 180K versus 211K.
• The Unemployment Rate for May is estimated at 4.4% versus 4.4% in April.
• Average Hourly Earnings MoM for May is estimated to rise +.2% versus a +.3% gain in April.
• The Trade Deficit for April is estimated at -$46.1B versus -$43.7B in March.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Eurozone PPI report, ASCO-American Society of Clinical Oncology Annual Meeting, (ICE) Investor Day, (LOW) Annual Meeting and the (WMT) Annual Meeting could also impact trading today.

BOTTOM LINE:  Asian indices are higher, boosted by technology and industrial 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 Rising into Final Hour on Economic Optimism, Yen Weakness, Short-Covering, Healthcare/Retail Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Above Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 10.11 -2.88%

• Euro/Yen Carry Return Index 130.38 +.32%

• Emerging Markets Currency Volatility(VXY) 8.23 -1.08%

• S&P 500 Implied Correlation 39.89 +1.66%

• ISE Sentiment Index 98.0 +13.95%
  

• Total Put/Call .96 -4.95%

• NYSE Arms 1.03 -22.67%

Credit Investor Angst:

• North American Investment Grade CDS Index 60.66 -1.78%
  

• America Energy Sector High-Yield CDS Index 371.0 -.92%

• European Financial Sector CDS Index 70.88 +1.73%

• Western Europe Sovereign Debt CDS Index 8.32 +2.02%

• Asia Pacific Sovereign Debt CDS Index 19.25 -2.01%

• Emerging Market CDS Index 193.61 -.85%
  

• iBoxx Offshore RMB China Corporate High Yield Index 138.65 +.06%

• 2-Year Swap Spread 22.75 -.5 basis point

• TED Spread 23.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -33.50 +1.0 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.21 +.05%
• 3-Month T-Bill Yield .97% unch.
  

• Yield Curve 92.0 unch.
  

• China Import Iron Ore Spot $55.97/Metric Tonne -1.84%

• Citi US Economic Surprise Index -36.10 +2.1 points

• Citi Eurozone Economic Surprise Index 43.50 +2.9 points

• Citi Emerging Markets Economic Surprise Index 11.0 +3.6 points

• 10-Year TIPS Spread 1.84 +1.0 basis point
  
• 91.4% chance of Fed rate hike at July 26 meeting, 94.0% chance at Sept. 20 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +65 open in Japan 
• China A50 Futures: Indicating +1 open in China

• DAX Futures: Indicating +29 open in Germany

Portfolio: 

• Higher: On gains in my retail/tech/medical/biotech sector longs 

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 100% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Growth +.6%

Sector Underperformers:

• 1) Steel -.5% 2) Gold & Silver -.2% 3) Semis unch.

Stocks Falling on Unusual Volume: 

• NSTG, HPE, SMTC, GOGO and TGNA

Stocks With Unusual Put Option Activity:

• 1) RRC 2) HPE 3) AMBA 4) TOL 5) ACIA

Stocks With Most Negative News Mentions:

• 1) RYAM 2) CATO 3) COH 4) ADM 5) RAI

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth +1.5%

Sector Outperformers:

• 1) Gaming +3.8% 2) Hospitals +3.0% 3) Networking +2.7%

Stocks Rising on Unusual Volume:

• NERV, PANW, PF, CIEN, CLDT, BOX, BBRY, DBVT, KBWB, PDCO, FWONK, SHLO, PLT, RGS, INFO, SIG, BLK, TAST, GT, CTL, PICO, DG, FCAU, ALDR, MTLS, BNFT, LVS, MOD, CZR, ORBC, OLLI, EPZM, CAG and ITT

Stocks With Unusual Call Option Activity:

• 1) TSCO 2) UPS 3) SGMS 4) PANW 5) CIEN

Stocks With Most Positive News Mentions:

• 1) PANW 2) CIEN 3) NERV 4) BOX 5) GT

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +9.6% Above 100-Day Average
• 8 Sectors Rising, 2 Sectors Declining
• 70.5% of Issues Advancing, 25.8% Declining
• 156 New 52-Week Highs, 14 New Lows
• 44.1% of Issues Above 200-day Moving Average
• Average 14-Day RSI 35.7%
• Vix 10.3 -1.1%
• Total Put/Call 1.06 +5.0%
• TRIN/Arms .94 -27.5%