Monday, March 19, 2018

Tuesday Watch

Evening Headlines
Bloomberg:
  • Pierre Moscovici Is Confident Trade Melodrama Can Be Prevented at G-20. The world’s financial elite is striving to find common ground with U.S. officials on stressing the importance of global trade, according to the European Union’s commissioner of economic affairs. Deputy finance ministers and central bankers are currently negotiating a communique all Group of 20 nations can agree on, Pierre Moscovici said in an interview with Bloomberg Television. This is despite Treasury Secretary Steven Mnuchin telling his counterparts that the U.S. stands by its policies to defend its own economic interests. “Nobody wants to enter into a trade war -- everybody is looking for a way to bridge the gap and find common tunes, especially on trade,” Moscovici said in Buenos Aires. “Protectionism is never the answer.”
  • Stocks Drop in Asia as Tech Rout Adds to Pressures. Equities fell from Japan to Australia and technology stocks were the biggest drag on the MSCI Asia Pacific Index. U.S. shares slumped as the best performing sector this year was roiled by reports of a Facebook Inc. data breach and Apple Inc. efforts to develop its own screens. After the bell, Oracle Corp. reported sales that underwhelmed investors and Nasdaq futures remained lower. Currencies were steady along with 10-year Treasury yields. Japan’s Topix index fell 0.7 percent and the Nikkei 225 Stock Average slid 0.9 percent as of 10:37 a.m. in Tokyo. Australia’s S&P/ASX 200 Index dropped 0.5 percent.South Korea’s Kospi index fell 0.3 percent. Hong Kong’s Hang Seng Index retreated 0.8 percent. Shanghai Composite Index was down 0.5 percent. Futures on the S&P 500 Index were flat and Nasdaq contracts lost 0.3 percent.
Wall Street Journal:
MarketWatch.com:
Business Insider:
Night Trading 
  • Asian equity indices are -.75% to -.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 66.75 +1.25 basis points. 
  • Asia Pacific Sovereign CDS Index 12.0 +.5 basis point.
  • Bloomberg Emerging Markets Currency Index 74.92 +.02%.
  • FTSE 100 futures +.35%.
  • S&P 500 futures -.06%.
  • NASDAQ 100 futures -.35%.
Morning Preview Links

Earnings of Note
Company/Estimate

  • (DLTH)/.54
  • (PLCE)/2.49
  • (FDX)/3.12
  • (SCS)/.16
Economic Releases
  • None of note
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The UK PPI/CPI reports, German ZEW Index, weekly US retail sales reports, Oppenheimer Healthcare Conference, BofA Merrill Industrials Conference and the (GOOG) new product event could also impact trading today.
BOTTOM LINE:  Asian indices are lower, weighed down by technology and commodity shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 25% net long heading into the day.

No comments: