Wednesday Watch

Night Trading 

• Asian equity indices are -.75% to -.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 84.5 +1.5 basis points. 
• Asia Pacific Sovereign CDS Index 18.0 +.25 basis point.
• Bloomberg Emerging Markets Currency Index 72.42 -.02%.
• S&P 500 futures -.11%.
• NASDAQ 100 futures -.21%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (ATU)/.31
• (KMX)/.99
• (WGO)/.68
• (ORCL)/.78
• (SCS)/.19

Economic Releases 

10:00 am EST

• Existing Home Sales for May is estimated to fall to 5.55M versus 5.57M in April.

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -1,128,570 barrels versus a -1,661,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +114,430 barrels versus a +2,096,000 barrel gain the prior week. Distillate inventories are estimated to rise by +860,140 barrels versus a +328,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to fall by -.14% versus a +.3% gain the prior week.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Japan Machine Orders report, weekly MBA Mortgage Applications report and the (CI) investor 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 modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the day.