Monday, May 01, 2017

Tuesday Watch

Evening Headlines
Bloomberg:
  • Japanese Stocks Climb as Yen Weakens; Bonds Slip. Stocks in Japan climbed as the yen weakened for a fourth day, with most of Asia’s other major equity markets returning from holidays to kick off their trading week. Equities in Tokyo and Seoul led gains in Asia after U.S. shares advanced, pushing the Nasdaq Composite Index to an all-time high. The yield on 10-year Treasuries jumped as the U.S. Treasury secretary said his department is considering debt longer than 30 years. Oil traded near a one-month low. The Australian dollar extended gains ahead of the Reserve Bank of Australia’s decision on policy. The yen traded at 111.91 per dollar as of 9:28 a.m. in Tokyo, slightly lower following a 0.3 percent slide on Monday. The Topix index rose 0.5 percent, climbing for a second day to the highest since March. South Korea’s Kospi index advanced 0.6 percent, approaching its all-time high. Australia’s S&P/ASX 200 Index slipped 0.3 percent, breaking a seven-day rally. Markets in China, Hong Kong, Singapore, the U.K. and Germany are among those reopening after a holiday. 
  • Pipeline Companies Push Back Against Trump's ‘Buy American’ Rule. A directive requiring U.S. pipeline companies to use American steel and iron in their projects is testing President Donald Trump’s ability to keep his promises to two industries on opposing sides of the issue. In comments to the U.S. Department of Commerce, which is crafting the so-called "Buy American" plan, pipeline companies and their trade groups argued the change would increase costs and disrupt operations. Steel companies, meanwhile, embraced the policy as an opportunity to take advantage of the country’s surging oil and gas production. And Trump has vowed to support both. 
  • Trump's U.S. Looks Past Energy Independence to Global Dominance. The U.S. is in the position to be energy-dominant, not just independent, thanks to fracking and plans to loosen drilling regulations, Interior Secretary Ryan Zinke said Monday. Oil production across the U.S. may increase by 17 percent to a record 10.24 million barrels a day by the end of next year as companies cut costs and become more efficient in drilling, especially in areas such as West Texas and North Dakota. Domestic output hasn’t surpassed 10 million barrels a day since 1970. At a time when OPEC and other producers are cutting output, U.S. exports surged above 1 million barrels a day for the first time. 
  • IAC(IAC) to Buy Angie's(ANGI) List in Deal Valued at Over $500 Million.
Wall Street Journal:
Night Trading 
  • Asian equity indices are unch. to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 93.25 -1.25 basis points
  • Asia Pacific Sovereign CDS Index 22.5 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 72.38 +.1%.
  • S&P 500 futures -.05%. 
  • NASDAQ 100 futures +.03%.
Morning Preview Links

Earnings of Note
Company/Estimate

  • (AET)/2.35
  • (MO)/.74
  • (ADM)/.62
  • (BDX)/2.23
  • (BP)/.07
  • (COH)/.44
  • (COP)/.03
  • (CMI)/1.80
  • (CVS)/1.10
  • (ETN)/.88
  • (EMR)/.58
  • (HCA)/1.74
  • (HCP)/.48
  • (HLT)/.28
  • (LL)/-.20
  • (MA)/.95
  • (MRK)/.83
  • (MOS)/.20
  • (PFE)/.67
  • (SMG)/2.89
  • (AKAM)/.67
  • (APC)/-.25
  • (AAPL)/2.02
  • (FSLR)/-.15
  • (GILD)/2.28
  • (MDLZ)/.50
  • (PZZA)/.74
  • (WBMD)/.27
Economic Releases  
Afternoon
  • Total Vehicle Sales for April are estimated to rise to 17.13M versus 16.53M in March.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone PMI report, weekly US retail sales reports, (F) April sales call, (DAL) April Traffic report, (MSFT) product event and the (XLNX) analyst meeting could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by financial and technology shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the day.

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