Thursday Watch

Night Trading

• Asian equity indices are -.75% to -.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 164.50 +2.0 basis points.
  
• Asia Pacific Sovereign CDS Index 134.75 -5.0 basis pionts.
  
• FTSE-100 futures +.02%.
  
• S&P 500 futures -.42%.
  
• NASDAQ 100 futures -.30%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (ISCA)/.40
• (JDAS)/.57
• (CIM)/.11
  

Economic Releases
8:15 am EST

• The ADP Employment Change for June is estimated to fall to 100K versus 133K in May.

8:30 am EST

• Initial Jobless Claims are estimated to fall to 385K versus 386K the prior week.
• Continuing Claims are estimated to rise to 3300K versus 3296K prior.

10:00 am EST

• ISM Non-Manufacturing for June is estimated to fall to 53.0 versus 53.7 in May.

11:00 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,300,000 barrels versus a -133,000 barrel decline the prior week. Distillate inventories are estimated to rise by +1,000,000 barrels versus a -2,279,000 barrel decline the prior week. Gasoline supplies are expected to rise by +1,000,000 barrels versus a +2,078,000 barrel gain the prior week. Finally, Refinery Utilization is expected to rise by +.25% versus a +.7% gain the prior week.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Spanish/French 10Y Bond Auction, BoE rate decision, ECB rate decision, ECB's Draghi speaking, Challenger Job Cuts for June, ICSC Chain Store Sales report for June, RBC Consumer Outlook Index for July, weekly MBA mortgage applications report and the weekly Bloomberg Consumer Comfort Index could also impact trading today.
  

BOTTOM LINE: Asian indices are lower, weighed down by technology and financial shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.