“Trade within your ability and risk tolerance. Increase size and frequency when ability and tolerance permits it.” — unknown

1. Dow 30 Trading Range Screen — courtesy of BIG, exactly half of the stocks in the Dow are trading in overbought territory, while just two are oversold — Apple (AAPL) and Microsoft (MSFT). Apple is the most oversold stock in the index at more than two standard deviations below its 50-day moving average.

2. Cruz Suspends Campaign After Trump Wins Indiana — Texas Senator Ted Cruz has cleared the path for Donald Trump to claim the Republican presidential nomination by suspending his campaign following a crushing defeat in the Indiana primary. “From the beginning I’ve said that I would continue on as long as there was a viable path to victory,” Cruz declared. “Tonight I’m sorry to say it appears that path has been foreclosed.” On the Democratic side, Bernie Sanders was declared the Indiana winner, further frustrating rival Hillary Clinton who had hoped to wrap up the nomination at this point.
3. Aeropostale Files For Bankruptcy — struggling teen apparel retailer Aeropostale has filed for Chapter 11, marking the latest high-profile bankruptcy that follows meltdowns at American Apparel, Quiksilver and Sports Authority. According to a court filing, the company listed assets and liabilities in the range of $100M-$500M, and plans to emerge from the Chapter 11 process within the next six months as a standalone enterprise with a smaller store base. The NYSE suspended trading and delisted Aeropostale (NYSE:ARO) shares on April 21.
4. SandRidge Energy In Debt Restructuring Talks With Creditors — SandRidge Energy (NYSE:SD) is in discussions with creditors about reaching a restructuring deal ahead of a possible bankruptcy filing, Reuters reports. The company wants creditors to agree on how the debt would be reduced in the hope that it could limit the amount of time it stays in court if it files for Chapter 11.
5. U.S. Jobs Growth Slows Down in April — companies scaled back hiring in April, adding just 160,000 new jobs versus Wall Street had expected a 203,000 gain. The disappointing employment report is likely to keep the Federal Reserve from raising interest rates anytime soon. The unemployment rate remained flat at 5%, but more people dropped out of the labor force and the so-called participation rate fell for the first time in seven months. That could mean people find it a bit harder to get a job.

The week ahead — Economic data from Econoday.com:

“Never follow the crowd.” ― Bernard M. Baruch

1. MSCI Prepares for Chinese A-share Inclusion Through ADRs — MSCI will begin to add overseas-listed Chinese shares to its emerging market indexes this month, which could eventually lead to mainland-listed stocks, known as A-shares, finding their way into global equity portfolios. The addition of American Depositary Receipts will be the first test of foreign demand for greater exposure to China since its stock market plunge over the summer. About $1.6T tracks the MSCI Emerging Markets Index (ETF: EEM), which will be the most affected fund by the ADR inclusion.
2. Google Plans to Start Delivering Packages By Drone in 2017 — Google disclosed a delivery drone initiative called Project Wing. Wing chief David Vos has publicized that the company aims to begin delivering packages to consumers via drones in 2017. However, details remain scant on what types of packages will be supported, where they’ll be delivered, and at what scale. The Atlantic previously reported Google’s (GOOG, GOOGL) drone design is “a hybrid of a plane and a helicopter that takes off vertically, then rotates to a horizontal position for flying around.”
3. More Car Pollution Problems at VW — VW (OTCQX:VLKAY) revealed it has understated carbon dioxide emissions for about 800K of its vehicles sold in Europe, and overstated the cars’ fuel economy, a move that could result in an estimated €2B in financial penalties. Those costs would be on top of the €6.7B the company has already set aside to address its central emissions crisis, which affects 11M diesel vehicles worldwide.
4. Facebook To Launch Notify App Next Week — Facebook’s new standalone news app called Notify is scheduled to launch next week, FT reports, featuring content from dozens of media partners including Vogue, The Washington Post, CNN and CBS. Notify, which will send out push notifications from news sources, follows a positive response from publishers and readers to Facebook’s (NASDAQ:FB) Instant Articles, which embeds stories in its mobile app.
5. U.S. Economy Added 271,000 Jobs in October, Unemployment Rate at 5% — the American economy added 271,000 jobs in October, the government reported. The unemployment rate dipped to 5 percent, from 5.1 percent in September. Average hourly earnings also bounced back, rising 0.4 percent in October after showing no increase in September; that lifted the gain to 2.5 percent over the last 12 months, the healthiest since 2009. The combination of the surge in job creation, rising wages and the falling unemployment rate, the odds of a hike by the Federal Reserve have jumped above 70%, according to the CME Group’s FedWatch tool.

The week ahead — Economic data from Econoday.com: