1. N.Korea Expands Threat to Cancel Summit & Plans To Destroy Nuclear Test Site — North Korea is expanding on its threat to cancel the June 12 summit between Kim Jong-un and President Trump. Besides protesting the joint air force drills taking place in South Korea, Pyongyang said the U.S. must stop insisting it “unilaterally” abandon its nuclear program and lashed out at national security advisor John Bolton, who talked about a disarmament similar to “Libya 2004.”. Also, Pyongyang plans to destroy all of the tunnels at the country’s northeastern testing ground with an explosion and remove observation facilities, research posts and ground-based guard units.
2. New Ebola Outbreak Hits Congo — the deadly hemorrhagic disease Ebola has resurfaced again, with the WHO revealing 32 potential cases of the disease (including 18 deaths) in the Democratic Republic of the Congo. Experimental Ebola vaccines are under development, such as leading candidate – Merck’s (NYSE:MRK) rVSV-ZEBOV – but they have not been fully tested for safety or effectiveness.
3. The Supreme Court Ruled New Jersey Can Legalize Sports Gambling — the Supreme Court announced late last week that New Jersey can legalize sports betting in what could be a landmark case in the gaming industry. It clears the way for states, if they choose, to allow gambling on athletic events by striking down the 1992 Professional and Amateur Sports Protection Act, a federal law that said states couldn’t “sponsor, operate, advertise, promote, license, or authorize” sports gambling.
4. More States Sue Over Opioid Epidemic Drug Makers — Litigation against OxyContin maker Purdue Pharma is intensifying as six more U.S. states – Nevada, Texas, Florida, North Carolina, North Dakota and Tennessee – announced lawsuits that accuse the company of fueling a national opioid epidemic. Florida also sued Endo Pharmaceuticals (NASDAQ:ENDP), Allergan (NYSE:AGN), units of Johnson & Johnson (NYSE:JNJ), Teva Pharmaceutical (NYSE:TEVA), and Mallinckrodt (NYSE:MNK), as well as AmerisourceBergen (NYSE:ABC), Cardinal Health (NYSE:CAH) and McKesson (NYSE:MCK).
5. AAII Weekly Sentiment Survey — In this week’s sentiment survey from AAII, bullish sentiment ticked up to 36.68% from last week’s level of 33.51%. The bulls are back above the average of 36.62% for the current bull market.

in bearish sentiment, which declined for the second straight week, falling from 25.5% down to 20.6%. Since its recent high in early April, bearish sentiment has now been more than cut in half. It’s also at the lowest level since the first week of the year.

6. Small cap Russell 2000 Index and S&P 600 Small Cap Index Hit New All-Time Highs — over the past week, both the small cap Russell 2000 Index and S&P 600 Small Cap Index have recorded not only new bull market highs, but also new all-time highs. Historically, small caps have been among the first stocks to show developing weakness as a bull market enters its final stages; However, these new highs in both the small cap price indexes and Advance-Decline Lines suggest an ongoing and healthy primary uptrend showing few signs of age.

The week ahead — Economic data from Econoday.com: