Thursday Watch

Night Trading

• Asian equity indices are -.50% to +.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 92.25 -2.25 basis points.

• Asia Pacific Sovereign CDS Index 62.25 -1.5 basis points.

• FTSE-100 futures -.02%.

• S&P 500 futures -.01%.

• NASDAQ 100 futures  +.01%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (PAY)/.35

• (MFRM)/.60

• (JOY)/.84

• (CIEN)/.29

• (HOV)/.09

• (ZUMZ)/.23

• (COO)/1.90

• (FNSR)/.32

• (LOCO)/.17

Economic Releases
8:15 am EST

• ADP Employment Change for August is estimated to rise to 220K versus 218K in July.

8:30 am EST

• The Trade Deficit for July is estimated at -$42.4B versus -$41.5B in June.

• Initial Jobless Claims are estimated to rise to 300K versus 298K the prior week.

• Continuing Claims are estimated to fall to 2510K versus 2527K prior.

• Final 2Q Non-farm Productivity is estimated to rise +2.4% versus a prior estimate of a +2.5% gain.

• Final 2Q Unit Labor Costs are estimated to rise +.5% versus a prior estimate of a +.6% gain.
  

10:00 am EST

• ISM Non-Manufacturing for August is estimated to fall to 57.7 versus 58.7 in July.

11:00 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -770,000 barrels versus a -2,070,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -1,431,820 barrels versus a -960,000 barrel decline the prior week. Distillate supplies are estimated to fall by -463,640 barrels versus a +1,252,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to fall by -.23% versus a +.1% gain the prior week.

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Kocherlakota speaking, Fed's Powell speaking, Fed's Mester speaking, Mario Draghi Press Conference, ECB rate decision, BoE rate decision, BoJ rate decision, Challenger Job Cuts for August, RBC Consumer Outlook Index for September, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report and the (FCS) investor day could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by commodity and technology 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.