Wednesday Watch

Evening Headlines

Bloomberg: 

• Japan Retail Sales Rise Less Than Forecast, Slowing From January. Japan’s retail sales rose less than economists forecast in February, signaling that consumer spending is struggling to gain traction.

• Putting All Our Eggs in China's Basket Was a Mistake: UBS.

• Asia Stocks Outside Japan Rise, Oil Extends Gains. Asian stocks outside Japan built on gains for a second day as a rise in consumer confidence rekindled optimism in the strength of the U.S. economy. Equities in Australia, South Korea and New Zealand all rose after the S&P 500 Index posted its biggest gain in two weeks, lifted by data showing American consumers are more upbeat than any time since 2000. Energy producers climbed in Asia as crude topped $48 a barrel. Japanese stocks were lower. The yen traded at 111.17 per dollar as of 9:17 a.m. in Tokyo, after dropping 0.4 percent on Tuesday. The Topix fell 0.1 percent. Australia’s S&P/ASX 200 Index added 0.6 percent and South Korea’s Kospi index rose 0.2 percent. Hang Seng Index futures climbed 0.5 percent.

Wall Street Journal:

• Russia Investigation Stalls in House. Lawmakers have called for GOP chairman to step aside.

• After GOP Health Bill’s Demise, More States Weigh Expanding Medicaid. Virginia, Maine and North Carolina are among the states taking steps toward growing their programs.

Fox News:

• Shutdown threat returns after ObamaCare repeal meltdown. (video)

CNBC:

• After-hours buzz: RH, SONC, VRTX & more.

• Congress just cleared the way for internet providers to sell your web browsing history.

• Fed's Powell says central bank still in 'wait-and-see' stance regarding Trump policies.

Zero Hedge:

• DNC Asks Entire Staff For Resignation Letters.

• The Robots Win: Blackrock Bets On Computers Over Human Stock Pickers, Fires Dozens.

• Equity Research Faces "Major Disruption" As Study Finds "Less Than 1%" Of Reports Are Actually Read.

• And Now Fake Consumer Confidence Too: Gallup Says Confidence In The Economy "Tumbled". (graph)

• RBOB Tumbles After Lower Than Expected Gasoline Draw. (graph)

• 4 Factors Driving Oil Prices This Summer. (graph)

• Biggest VIX Crash Since Election Saves Dow From Worst Losing Streak In 39 Years. (graph)

Business Insider:

• Mark Cuban says healthcare 'should be a right'.

• Here are 48 hedge fund terms every investor should know.

Telegraph: 

• Britain is 
the least of Europe’s problems.

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 95.25 -1.0 basis point. 

• Asia Pacific Sovereign CDS Index 21.25 unch.

• Bloomberg Emerging Markets Currency Index 72.19 unch. 

• S&P 500 futures +.03%. 

• NASDAQ 100 futures +.06%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (PAYX)/.54

• (FUL)/.45

• (PRGS)/.27

• (WOR)/.64

Economic Releases
10:00 am EST 

• Pending Home Sales MoM for February are estimated to rise +2.5% versus a -2.8% decline in January. 

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory build of +1,027,780 barrels versus a +4,954,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -1,877,780 barrels versus a -2,811,000 barrel decline the prior week. Distillate supplies are estimated to fall by -1,250,000 barrels versus a -1,910,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.33% versus a +2.3% gain prior.

Upcoming Splits

• None of note

Other Potential Market Movers

• The weekly MBA Mortgage Applications report could also impact trading today.

BOTTOM LINE:  Asian indices are mostly higher, boosted by financial and commodity shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the day.