Monday, February 06, 2017

Tuesday Watch

Evening Headlines
  • Have China's FX Reserves Dipped Below $3 Trillion? (video)
  • Asian Stocks Fall After Yen Climbs on Haven Demand. Asian equities declined after the yen led a rally in haven assets with political uncertainty infecting markets across the globe. Japan’s Topix index dropped for the first time in three days, after the yen touched the highest level since November. That comes after the S&P 500 Index retreated from near-record levels, with shares most tied to economic growth struggling after sagging wagegains and uneven retail results. The euro slumped with French, Italian and Spanish bonds amid political uncertainty in France. Gold surged to the highest price since November on Monday, while 10-year Treasury yields touched a two-week low. The Topix index fell 0.6 percent as of 9:23 a.m. in Tokyo, after a two-day gain. Toyota Motor Corp. dropped 2.5 percent after reporting a 39 percent decline in third-quarter operating profit. Australia’s S&P/ASX 200 Index declined 0.2 percent. South Korea’s Kospi Index retreated 0.1 percent. New Zealand’s main benchmark was down 0.2 percent.
Wall Street Journal:
Zero Hedge:
Night Trading 
  • Asian equity indices are -.25% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 108.75 -1.25 basis points.
  • Asia Pacific Sovereign CDS Index 30.0 -1.0 basis point.
  • Bloomberg Emerging Markets Currency Index 71.30 -.11%. 
  • S&P 500 futures -.05%. 
  • NASDAQ 100 futures -.01%.
Morning Preview Links

Earnings of Note

  • (AGCO)/.71
  • (ADM)/.80
  • (BP)/.04
  • (EMR)/.43
  • (GM)/1.17
  • (ICE)/.69
  • (KORS)/1.64
  • (MOS)/.12
  • (STE)/1.04
  • (VSH)/.21
  • (VMC)/.85
  • (WCG)/.52
  • (AKAM)/.68
  • (BWLD)/1.31
  • (TCS)/.09
  • (GILD)/2.60
  • (MCHP)/.90
  • (MYGN)/.24
  • (ORLY)/2.54
  • (PNRA)/2.00
  • (TDW)/-1.23
  • (DIS)/1.49
  • (ZG)/.11 
Economic Releases
8:30 am EST
  • The Trade Deficit for December is estimated at -$45.0B versus -$45.2B in November. 
10:00 am EST
  • The JOLTS Job Openings report for December is estimated to rise to 5569 versus 5522 in November.
3:00 pm EST
  • Consumer Credit for December is estimated at $20.0B versus $24.532B in November.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The $24B 3Y T-note auction, German Industrial Production report, Reserve Bank of Australia decision, Reserve Bank of India decision, weekly US retail sales reports and the (IDTI)  analyst day could also impact trading today.
BOTTOM LINE:  Asian indices are mostly lower, weighed down by commodity and consumer shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 75% net long heading into the day.

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