Monday, October 02, 2017

Today's Headlines

Bloomberg:
Wall Street Journal:
MarketWatch.com: 

Bear Radar

Style Underperformer:
  • Large-Cap Growth +.2%
Sector Underperformers:
  • 1) Gaming -1.8% 2) Oil Service -1.2% 3) Road & Rail -1.2%
Stocks Falling on Unusual Volume: 
  • BHVN, MCRB, CYBE, MGM, JWN, XRAY, LPI, M and BLUE
Stocks With Unusual Put Option Activity:
  • 1) UNG 2) JCP 3) MGM 4) XLF 5) EPI
Stocks With Most Negative News Mentions:
  • 1) BLUE 2) MGM 3) WDC 4) FINL 5) CSX
Charts:

Bull Radar

Style Outperformer:
  • Small-Cap Growth +.8%
Sector Outperformers:
  • 1) Steel +1.6% 2) Networking +1.2% 3) Defense +1.2%
Stocks Rising on Unusual Volume:
  • SNCR, ZGNX, OFIX, TRN, IJT, MGEN, SSTI, PICO, PODD, FLXN, NVMI, CAMP, USAK, BGC, LILAK, VERI, JP, AOBC, RGR, GM, KBH, UBIO, SPPI, QURE, PVAC, FLXN, TRN, NTLA, LCI, SGEN, RGS, OLN, ALNY, RNG, SGH, COLL, KTWO, LPSN and GTN
Stocks With Unusual Call Option Activity:
  • 1) CZR 2) CIEN 3) DISH 4) AXP 5) DDD
Stocks With Most Positive News Mentions:
  • 1) FLIR 2) CTRX 3) STX 4) SWK 5) AKAM
Charts:

Morning Market Internals

NYSE Composite Index:

Sunday, October 01, 2017

Monday Watch

Today's Headlines
Bloomberg:
  • Spanish Police Storm Polling Stations to Block Catalan Vote. Spanish police in riot gear smashed in the doors of polling stations and dragged protesters away by the hair, beating some with batons and firing rubber bullets at others on Sunday as they tried to shut down an illegal referendum on independence in Catalonia. Despite the police brutality against largely peaceful demonstrations, voting began in many locations across northeast Spain at 9 a.m. The Catalan government said 73 percent of polling stations were open. Spain’s representative in the region, Enric Millo, said the vote had been “dismantled.”
  • Stocks Rise as China Readies Targeted Credit Boost. Stocks are set to open higher in the Asia Pacific region as investors contemplate prospects for stimulus in the world’s two largest economies, with the Trump administration taking steps towards tax cuts and China unveiling a targeted boost to the availability of credit. Futures on the U.S. S&P 500 index headed higher after the underlying gauge closed at a record high on Friday. The dollar held gains from last week, when it put in its best performance of the year on optimism that the Trump administration is finally moving forward with tax reforms that could boost U.S. growth. Over the weekend, China reported an unexpectedly strong purchasing manager index for manufacturing and announced plans for a reduction in the amount of cash banks must hold as reserves for certain types of lending. Australia’s S&P/ASX 200 Index was up 0.5 percent in early trading. Contracts on the Nikkei 225 Stock Average were up 0.3 percent and futures on Hong Kong’s Hang Seng Index saw futures gain 0.2 percent.
  • CRH Is Said to Near Acquisition of U.S. Cement Maker Suwannee. Global construction materials maker CRH Plc is nearing an agreement to acquire Florida-based cement company Suwannee American Cement LLC from Votorantim Cimentos SA and Anderson Columbia Co. to drive further growth in the U.S., according to people familiar with the matter. The companies could announce an agreement as early as this week, said the people, who asked not to be identified because talks are private. The deal may value Suwannee at about $750 million, two of the people said. While talks are advanced, they could still be delayed or fall apart and the valuation could change, they said.
Wall Street Journal:
  • Why Food CEOs Are Rushing for the Exits. Packaged food companies are in trouble, squeezed by changing consumer preferences, more aggressive supermarkets and stagnant prices. More mergers may be on the way.
  • Hedge Funds Ain’t Dead Yet. With an improved environment for stock picking, the average hedge fund is up an average 5.4% through August.
MarketWatch.com:
Night Trading
  • Asian indices are +.25% to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 81.75 -1.5 basis points.
  • Asia Pacific Sovereign CDS Index 19.0 +1.25 basis points.
  • Bloomberg Emerging Markets Currency Index 73.62 -.09%.
  • S&P 500 futures +.12%.
  • NASDAQ 100 futures +.14%.

Earnings of Note
Company/Estimate
  • (CALM)/-.22
Economic Releases 
10:00 am EST
  • ISM Manufacturing for September is estimated to fall to 58.0 versus 58.8 in August.
  • ISM Prices Paid for September is estimated to rise to 63.5 versus 62.0 in August.
  • Construction Spending for August is estimated to rise +.4% versus a -.6% decline in July.
Upcoming Splits
  • (ISRG) 3-for-1
Other Potential Market Movers
  • The President's address on regulation, Fed's Kaplan speaking, Eurozone Unemployment Rate, Eurozone PMI report and the Deutche Bank Leveraged Finance Conference 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 week.

Weekly Outlook

BOTTOM LINE: I expect US stocks to finish the week modestly higher on oil gains, tax reform hopes, yen weakness, economic optimism, technical buying and short-covering. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 100% net long heading into the week.