Wednesday Watch

Night Trading

• Asian equity indices are -.50% to unch. on average.

• Asia Ex-Japan Investment Grade CDS Index 100.5 +1.0 basis point.

• Asia Pacific Sovereign CDS Index 72.75 -.75 basis point.

• FTSE-100 futures -.59%.

• S&P 500 futures -.12%.

• NASDAQ 100 futures  -.21%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (GIS)/.72
• (MON)/1.5
• (BKS)/-.49
• (LNN)/1.40
• (APOL)/.66
• (BBBY)/.95
• (MLHR)/.46
• (FUL)/.78

Economic Releases
8:30 am EST

• 1Q GDP is estimated to fall -1.8% versus a -1.0% decline the prior week.
• 1Q Personal Consumption is estimated to rise +2.4% versus a +3.1% gain the prior week.
• 1Q GDP Price Index is estimated to rise +1.3% versus a +1.3% gain the prior week.
• 1Q Core PCE is estimated to rise +1.2% versus a +1.2% gain the prior week.
• Durable Goods Orders for May are estimated unch. versus a +.8% gain in April.
• Durables Ex Transports for May are estimated to rise +.3% versus a +.1% gain in April.
• Cap Goods Orders Non-Defense Ex Air for May are estimated to rise +.5% versus a -1.2% decline in April.

9:45 am EST

• Preliminary Markit US Services PMI for June is estimated to fall to 58.0 versus 58.1 in May.
  

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -1,212,500 barrels versus a -579,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +1,025,000 barrels versus a +785,000 barrel gain the prior week. Distillate supplies are estimated to rise by +775,000 barrels versus a +436,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to rise +.64% versus a -.8% decline the prior week.

Upcoming Splits

• (CELG) 2-for-1
• (CORE) 2-for-1
• (MIDD) 3-for-1

Other Potential Market Movers

• The German GFK Confidence Index, $35B 5Y T-Note auction, weekly MBA mortgage applications report, (CIT) investor day, (AAP) investor conference, (WDR) investor day, (MCK) investor day, (EQIX) investor day, (IM) investor day, (MCP) annual meeting and the (TAP) analyst meeting could impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and commodity shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 25% net long heading into the day.