Monday, August 21, 2017

Tuesday Watch

Evening Headlines
  • Supplying Lithium for the Electric Revolution Is Getting Harder. Hidden within the salt flats high in the Andes mountains of South America are vast deposits of the lithium that Elon Musk may need for his electric-car revolution. But extracting the mineral from brine ponds created by Orocobre Ltd. has proved more difficult than expected. Bad weather and pump glitches meant production at the Olaroz facility in northern Argentina was 21 percent below Orocobre’s initial target in the year through June. While things are getting back on track, Chief Executive Officer Richard Seville says the company “either underestimated the complexity or overestimated our capability.”
  • Asian Stocks Open Mixed After Thin U.S. Trading. (video) Asian stocks were mixed at the open after a lackluster U.S. session, as the yen snapped four days of gains. Bridgewater Associates’ Ray Dalio said he was reducing risk. Equity benchmarks fluctuated in Japan, and advanced in Australia and South Korea after the S&P 500 Index halted a two-day slide. Trading was about 15 percent below the 30-day average for the S&P 500 on a day highlighted by the first total solar eclipse to sweep the U.S. from coast to coast in 99 years. Oil bounced, while gold pulled back after nudging closer to $1,300 an ounce. Japan’s Topix index was down 0.1 percent, while the Kospi index gained 0.5 percent. Australia’s main gauge was up 0.2 percent. The MSCI Asia Pacific Index was down less than 0.1 percent.
Wall Street Journal:
Night Trading 
  • Asian equity indices are unch. to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 83.75 unch
  • Asia Pacific Sovereign CDS Index 21.5 unch.
  • Bloomberg Emerging Markets Currency Index 73.93 +.02%.
  • S&P 500 futures +.19%.
  • NASDAQ 100 futures +.35%.
Morning Preview Links

Earnings of Note

  • (AMWD)/1.37
  • (DSW)/.29
  • (JASO)/.02
  • (MDT)/1.08
  • (TOL)/.68
  • (CREE)/.04
  • (INTU)/.17
  • (LZB)/.29
  • (CRM)/.32
Economic Releases 
9:00 am EST
  • The FHFA House Price Index MoM for June is estimated to rise +.5% versus a +.4% gain in May.
  • The 2Q House Price Purchase Index.
10:00 am EST
  • The Richmond Fed Manufacturing Index for August is estimated to fall to 10.0 versus 14.0 in July.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German ZEW Index and the weekly US retail sales reports could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by industrial and technology shares in the region. I expect US stocks to open modestly higher and to maintain gains into the afternoon.  The Portfolio is 75% net long heading into the day.

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