Bloomberg:
- Mark Mobius, who oversees about $30 billion in emerging-market equities at Templeton Asset Management says Chinese shares will decline further.
- Shares in Nikko Cordial Corp., Japan’s third-largest brokerage, plunged 15% after the Nikkei English News reported the Tokyo Stock Exchange is preparing to de-list the stock.
- Japan’s industrial production declined 1.5%, the most in almost three years, in January, signaling growth may slow in the world’s second-largest economy.
- Centro Properties Group, Australia’s second-largest shopping center owner, agreed to buy New Plan Excel Realty Trust(NXL) for $3.7 billion in cash to become the fifth-biggest mall owner in the US.
- Crude oil is falling $1.12/bbl. in NY as speculators pare bets on worries over slower Chinese and US demand.
- Singapore’s stocks are dropping 5.4%, sending the Straits Times Index to its biggest drop in 5 ½ years.
- Toyota Motor’s(TM) plan to build a $1.3 billion assembly plant in Mississippi brings it a step closer to a goal of building more vehicles in North America and cutting down on imports from Japan.
- China, the world’s largest coal producer and consumer, suspended the granting of coal exploration rights to avoid excess production capacity.
- Japan, the world’s largest consumer of oil after the US and China, said crude oil imports fell .6% in January.
- India’s copper production surged 26% to 521,953 tons in the ten months ended Jan. 31, from 414,731 tons a year earlier, the Ministry of Mines said.
- India, the world’s second largest producer of wheat and rice, banned futures trading in the two commodities to curb the fastest inflation in two years.
- Indonesia’s rupiah and the Philippine peso led declines in Asian currencies as fund managers dumped emerging market assets.
Shanghai Securities News:
- China’s stock sell-off yesterday shows that the country’s market is entering a phase of “painful” transformation, Hou Ning wrote. China’s equity investors were speculating on liquidity and sentiments, while often downplaying earnings.
Financial News:
- China needs to prevent its stock market from surging “too rapidly” and should stop funds from flowing into the market “too fast.” Most Chinese listed companies have become “overpriced” over the past year as funds “crazily” speculated on the market to gain profits, said the official newspaper, an affiliate of the People’s Bank of China.
South China Morning Post:
- Three Chinese carmakers including Shanghai Automotive Industry Corp. have started talks with DaimlerChrysler AG to buy its US-based Chrysler unit.
China Securities Journal:
- China’s stock market decline yesterday was a “rational revaluation,” and shares remain overvalued, citing analysts. China’s stocks had their biggest one-day plunge in a decade yesterday on concern that a government crackdown on investments made with borrowed money will end a rally that drove benchmark indexes to records.
Late Buy/Sell Recommendations
Citigroup:
- Various indicators suggest that things should calm down in the future such as the VIX, the ARMS index near record levels, a plunge in bullishness readings, and a rise in put/call ratios. Declines in the major averages of greater than 3% in a day have generated an impressive record of market recovery with a near 80% investment success rate within three months. Adding (KLAC) and (COH) to the Recommended List, increasing our exposure to tech and consumer discretionary.
Night Trading
Asian Indices are -6.0% to -3.0% on average.
S&P 500 indicated +.19%.
NASDAQ 100 indicated -.03%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Conference Calendar
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
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Earnings of Note
Company/EPS Estimate
- (BRL)/.74
- (DLTR)/.93
- (DBRN)/.24
- (EV)/.29
- (IPG)/.23
- (IRM)/.17
- (JOYG)/.62
- (LINTA)/.31
- (LIZ)/.96
- (LTD)/1.09
- (MSO)/.25
- (MRX)/.21
- (NRG)/.45
- (PSUN)/.39
- (PETM)/.56
- (S)/.29
- (SPW)/1.18
- (STN)/.45
- (VSE)/.20
- (WPO)/10.48
Upcoming Splits
- (ALB) 2-for-1
Economic Releases
8:30 am EST
- Preliminary 4Q GDP is estimated at 2.3% versus a prior estimate of 3.5% growth.
- Preliminary 4Q Personal Consumption is estimated at 4.2% versus a prior estimate of 4.4%.
- Preliminary 4Q GDP Price Index is estimated to rise 1.5% versus a prior estimate of a 1.5% gain.
- Preliminary 4Q Core PCE is estimated to rise 2.1% versus a prior estimate of a 2.1% gain.
9:45 am EST
- The Chicago Purchasing Manager for February is estimated to rise to 50.0 versus a reading of 48.8 in January.
10:00 am EST
- New Home Sales for January are estimated to fall to 1080K versus 1120K in December.
10:30 am EST
- Bloomberg consensus estimates call for a weekly crude oil build of 2,000,000 barrels versus a 3,694,000 barrel increase the prior week. Gasoline supplies are expected to fall by -1,500,000 barrels versus a -3,041,000 barrel decline the prior week. Distillate inventories are expected to fall by -2,600,000 barrels versus a -5,037,000 barrel decline the prior week. Finally, Refinery Utilization is expected to rise by .23% versus a -1.42% fall the prior week.
BOTTOM LINE: Asian indices are sharply lower, weighed down by commodity and technology shares in the region. I expect US equities to open lower and to rally into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.
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