Wednesday Watch

Night Trading

• Asian equity indices are -.50% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 152.0 +2.0 basis points.
• Asia Pacific Sovereign CDS Index 126.75 +1.5 basis points.
  
• FTSE-100 futures -.05%.
  
• S&P 500 futures +.07%.
  
• NASDAQ 100 futures +.11%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (HNZ)/.81
• (GCO)/.25
• (JOY)/1.89
• (TFM)/.27
• (BF/B)/.63
• (P)/-.03
• (JOSB)/.72

Economic Releases
8:30 am EST

• Preliminary 2Q GDP is estimated to rise +1.7% versus a prior estimate of a +1.5% gain.
• Preliminary 2Q Personal Consumption is estimated to rise +1.5% versus a prior estimate of a +1.5% gain.
• Preliminary 2Q GDP Price Index is estimated to rise +1.6% versus a prior estimate of a +1.6% gain.
• Preliminary 2Q Core PCE is estimated to rise +1.8% versus a prior estimate of a +1.8% gain.
  

10:00 am EST

• Pending Home Sales for July are estimated to rise +1.0% versus a -1.4% decline in June.

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -1,750,000 barrels versus a -5,412,000 barrel decline the prior week. Distillate supplies are estimated to rise by +200,000 barrels versus a +992,000 barrel gain the prior week. Gasoline inventories are estimated to fall by -1,450,000 barrels versus a -962,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to fall by -.3% versus a -1.4% decline the prior week.
  

2:00 pm EST

• Fed's Beige Book
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Italian Retail Sales/Consumer Confidence reports, Germany inflation data, 5Y T-Note auction, weekly MBA mortgage applications report and the (HMY) investor day could also impact trading today.
  

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