Thursday, January 12, 2017

Friday Watch

Evening Headlines
  • Davos Wonders If It’s Part of the Problem. Did the global elite’s devotion to borderless capitalism sow the seeds of a populist backlash? Kenneth Rogoff can pinpoint the moment he started to grow concerned Donald Trump would be the next U.S. president: It was when Rogoff’s fellow attendees at the World Economic Forum’s annual meeting last January said it could never happen. “A joke I’ve told 1,000 people in the months since leaving Davos is that the conventional wisdom of Davos is always wrong,” says the Harvard professor and former chief economist of the International Monetary Fund. “No matter how improbable, the event most likely to happen is the opposite of whatever the Davos consensus is.”
  • Dollar Pares Weekly Loss, Asian Stocks Are Mixed: Markets Wrap. The doll
    ar pared a weekly loss and Asian stocks were mixed as investors continued to assess whether market moves since the U.S. election have gone too far. Investors awaited Chinese trade data and earnings results at three of the largest U.S. banks. Australian and South Korean equities slumped while Japanese shares fluctuated. The yen gave up early gains, trimming its strongest week since July, while the dollar was higher after touching the lowest point in almost a month on Thursday. Gold was steady after a four-day rally. The MSCI Asia Pacific Index lost 0.4 percent as of 9:29 a.m. in Tokyo, with an almost equal number of shares rising and falling. Japan’s Topix index rose less than 0.1 percent and New Zealand’s S&P/NZX 50 slid 0.3 percent. Australia’s S&P/ASX 200 declined 0.8 percent and South Korea’s Kospi index retreated 0.5 percent.
  • Robot Nannies Look After 3 Million Chickens in Coops of the Future. “Problems sometimes involve human error, so full automation enhances the safety level.”
  • Scaramucci, Hedge-Fund Show Impresario, Scores White House Role. Anthony Scaramucci, founder of SkyBridge Capital, has been named an assistant to President-elect Donald Trump, according to people familiar with the decision. Scaramucci will have a general advisory role in the White House, said the people who asked not to be identified without authorization to speak publicly. He’s been a member of Trump’s transition team, making public appearances on television in support of his policies. "It’s not about me, and it’s not about any of these people on the team," Scaramucci said in an interview at Trump Tower earlier Thursday. "It’s about president-elect Trump and the American people."
  • Lyft Loses $600 Million in 2016 as Revenue Surges. U.S. ride-hailing startup is said to generate revenue of $700 million last year. Lyft Inc., the second-largest ride-hailing startup in the U.S. behind Uber Technologies Inc., lost about $600 million last year while increasing revenue 250 percent, according to people familiar with the matter. In 2016, Lyft generated about $700 million in sales, said the people, who asked not to be identified because the financials are private. The San Francisco company's revenue growth far exceeded its 46 percent increase in losses.
Wall Street Journal:
Zero Hedge:
Busines Insider:
Night Trading 
  • Asian equity indices are -.50% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 116.5 unch.
  • Asia Pacific Sovereign CDS Index 34.0 -.5 basis point.
  • Bloomberg Emerging Markets Currency Index 70.09 +.02%
  • S&P 500 futures +.08%. 
  • NASDAQ 100 futures +.11%.
Morning Preview Links

Earnings of Note

  • (BAC)/.38
  • (BLK)/5.04
  • (INFY)/15.41
  • (JPM)/1.43
  • (PNC)/1.84
  • (WFC)/1.00
Economic Releases
8:30 am EST
  • The PPI Ex Food and Energy MoM for December is estimated to rise +.1% versus a +.4% gain in November. 
  • PPI Final Demand MoM for December is estimated to rise +.3% versus a +.4% gain in November. 
  • Retail Sales Advance MoM for December is estimated to rise +.7% versus a +.1% gain in November. 
  • Retail Sales Ex Auto MoM for December are estimated to rise +.5% versus a +.2% gain in November.
10:00 am EST
  • Business Inventories for November are estimated to rise +.6% versus a -.2% decline in October.
  • Preliminary Univ. of Mich. Consumer Sentiment for January is estimated to rise to 98.5 versus 98.2 in December.
Upcoming Splits 
  • None of note
Other Potential Market Movers
  • The Fed's Harker speaking and the China Trade Balance report could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by technology and industrial shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 50% net long heading into the day.

No comments: