Monday, July 24, 2017

Tuesday Watch

Evening Headlines
  • Asian Stocks Face Mixed Start; Dollar Steady. Asian equities headed for a mixed start after an uninspiring American trading session that saw the dollar stabilize while stocks made little headway. Futures contracts signaled a lower open in Japan and Hong Kong stock markets, with Australia indicating small gains. Declines at Alphabet Inc. weighed on Nasdaq 100 Index futures after sales at Google’s parent fell short of the most-optimistic estimates. The euro held on to losses triggered by data showing the region’s economy cooling. Japan’s Topix index was little changed. Australia’s S&P/ASX 200 Index added 0.6 percent with volume down about 30 percent and South Korea’s Kospi index fell 0.1 percent.
  • Barclays Oil Sale Triggers a Huge Number of Trades in Exotic Options. Barclays Plc sold the last part of its oil book to an unidentified buyer, triggering a surge in trading of exotic options written in the era of higher crude prices, according to people familiar with the matter. The sale was signaled by several large options trades at 9:35 a.m. in London in some of the world’s major oil markets including West Texas Intermediate crude, where 48 million barrels of contracts changed hands. That represents more than a quarter of the entire volume on an average trading day.
  • Deals ‘on Pause’ as CEOs Wait for More Certainty, Baronoff Says. (video) Dealmaking activity has slowed in the past month as companies await regulatory certainty on U.S. policies from health care to taxation, according to one of Bank of America Corp.’s top deals bankers. “The last month or so I’ve seen people putting transactions on hold a bit, slowing down,” Steve Baronoff, the bank’s global chairman of mergers and acquisitions, said in an interview Monday on Bloomberg TV. “They’re not stopping their transactions but just putting them on pause -- let some of this uncertainty go through.”
Wall Street Journal: 
Zero Hedge:
Business Insider:
Night Trading 
  • Asian equity indices are unch. to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 84.75 unch. 
  • Asia Pacific Sovereign CDS Index 21.0 unch.
  • Bloomberg Emerging Markets Currency Index 73.62 -.05%.
  • S&P 500 futures -.01%.
  • NASDAQ 100 futures -.07%.
Morning Preview Links

Earnings of Note

  • (MMM)/2.59
  • (AKS)/.12
  • (BIIB)/4.37
  • (CAT)/1.26
  • (DPZ)/1.23
  • (DD)/1.28
  • (LLY)/1.05
  • (FCX)/.20
  • (GM)/1.72
  • (HCA)/1.80
  • (JBLU)/.56
  • (KMB)/1.49
  • (MCD)/1.62
  • (NEM)/.26
  • (PCAR)/.99
  • (PHM)/.45
  • (DGX)/1.42
  • (STX)/.998
  • (TROW)/1.29
  • (UTX)/1.77
  • (AMD)/.00
  • (AKAM)/.60
  • (AMGN)/3.11
  • (T)/.74
  • (CMG)/2.19
  • (CB)/2.49
  • (ESRX)/1.71
  • (IRBT)/-.23
  • (JNPR)/.54
  • (RHI)/.66
  • (TXN)/.99
  • (X)/.43
  • (WYNN)/1.19
Economic Releases  
9:00 am EST
  • The FHFA House Price Index MoM for May is estimated to rise +.5% versus a +.7% gain in April.
  • The S&P CoreLogic CS 20-City MoM for May is estimated to rise +.3% versus a +.28% gain in April.
10:00 am EST
  • The Conference Board Consumer Confidence Index for July is estimated to fall to 116.5 versus 118.9 in June.
  • The Richmond Fed Manufacturing Index for July is estimated at 7.0 versus 7.0 in June.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German IFO Business Climate report, Australia CPI report, $26B 2Y T-note auction, US weekly retail sales reports and the (C) investor day could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by commodity and technology shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the day.

No comments: