- Political uncertainty continues to infect markets, as gains for Treasuries and the yen underpin expectations that Japanese stocks will fall, with other Asian bourses poised to open little changed. Nikkei 225 Stock Average futures fell with the yen gaining for the third day this week and after Treasuries posted their first four-day rally since the leadup to June’s Brexit vote. The S&P 500 Index was little changed for the eighth time in the past 10 sessions, erasing losses after crude rebounded above $52 a barrel. Gold reached a three-month high and euro-dollar volatility surged as investors assess political risks in Europe and the U.S. The New Zealand dollar fell after the central bank held interest rates at a record low. Contracts on the Nikkei 225 Stock Average fell in Osaka and Singapore. Futures on South Korea’s Kospi Index rose while those on Hong Kong’s Hang Seng Index retreated. Australia’s S&P/ASX 200 Index climbed 0.3 percent. New Zealand’s main benchmark climbed 0.6 percent.
- In the fast-moving Washington game of who’s to blame for high U.S. drug prices, an often-overlooked industry is readying its defenses against pharmaceutical companies that fault other parts of the health sector for the costs faced by patients. Known as pharmacy benefits managers, or PBMs, the industry includes giants such as Express Scripts Holding Co. and CVS Health Corp., which negotiate prices with drugmakers, work with pharmacies and help set the co-pays patients pay out of pocket. Now these middlemen are now taking it from all sides.
Wall Street Journal:
- Senate Is Poised to Confirm Sessions Along Party Lines. Vote will elevate a close Trump ally to powerful post.
- Whole Foods(WFM) to Close Nine Stores, Cuts Its Outlook. Retailer struggling amid growing competition in sector.
Earnings of Note
8:30 am EST
- Trump's Supreme Court Pick Gorsuch "Disheartened, Demoralized" By President's Comments.
- Iran Launches Another Ballistic Missile.
- Small Cap Stocks 'Relative Risk' Soars Near 11-Year Highs. (graph)
- Hedge Funds Sell Near-Record Amount Of Stock (Follow 'Insiders' & Bank Execs). (graph)
- Students From 26 New York City High Schools And Colleges Skip Class To Protest Trump.
- Here Are The 7 Rules Bank Of America Uses To Decide When It Is Time To Sell The Market.
- Nigel Farage Delighted After UK Parliament Overwhelmingly Votes To Trigger Brexit.
- Germany Rules Out Greek Debt Cut: "For That It Would Have To Exit The Currency Area".
- Banks Bruised As Bond Yields Crash To 2017 Lows; Dollar Drops, Gold Pops. (graph)
- Asian equity indices are -.5% to +.5% on average.
- Asia Ex-Japan Investment Grade CDS Index 108.5 -.75 basis point.
- Asia Pacific Sovereign CDS Index 29.75 +.5 basis point.
- Bloomberg Emerging Markets Currency Index 71.08 -.04%.
- S&P 500 futures -.05%.
- NASDAQ 100 futures -.04%.
Earnings of Note
8:30 am EST
- Initial Jobless Claims are estimated to rise to 249K versus 246K the prior week.
- Continuing Claims are estimated to fall to 2058K versus 2064K prior.
- None of note
- The Fed's Bullard speaking, Fed's Evans speaking, Pres. Trump meeting with airline CEOs, German exports report, $15B 30Y Y-Bond auction, weekly Bloomberg US Consumer Comfort, weekly EIA natural gas inventory report, WASDE Crop report, (INTC) investor meeting, (TSN) annual meeting, (KO) Investor conference call and the Keefe Bruyette Woods Financial Services Symposium could also impact trading today.