Thursday, May 10, 2018

Friday Watch

Evening Headlines
  • Asian Stocks Open Higher as U.S. Prices Reassure: Markets Wrap. Asian stocks opened higher after their U.S. counterparts rallied amid relief the latest reading on American inflation suggested less need for the Federal Reserve to accelerate monetary tightening. The dollar steadied after dropping the most since March. Equity benchmarks advanced in Japan and South Korea, and futures on Hong Kong shares rose before the open there. The MSCI Emerging Markets Index is heading for its best week since March thanks to easing investor concern that higher U.S. yields and a stronger dollar would spur broad contagion. Ten-year Treasury yields dropped further below 3 percent after the consumer-price report showed a smaller gain in prices than forecast for April. Malaysian assets trading offshore began to stabilize after the shock election win for the opposition. Japan’s Topix index rose 0.6 percent as of 9:21 a.m. in Tokyo. Australia’s S&P/ASX 200 was up 0.3 percent. Hang Seng futures rose 0.9 percent. Futures on the S&P 500 were little changed after the underlying gauge closed up 0.9 percent. The Kospi advanced 0.5 percent.
Night Trading 
  • Asian equity indices are +.25% to +1.0% on average.
  • Asia Ex-Japan Investment Grade CDS Index 75.50 -2.0 basis points
  • Asia Pacific Sovereign CDS Index 12.5 -.5 basis point.
  • Bloomberg Emerging Markets Currency Index 72.61 +.04%.
  • FTSE 100 futures +.05%.
  • S&P 500 futures +.03%.
  • NASDAQ 100 futures -.07%.
Morning Preview Links

Earnings of Note

  • (TRI)/.65
Economic Releases
8:30 am EST
  • The Import Price Index MoM for April is estimated to rise +.5% versus unch. in March.
  • The Export Price Index MoM for April is estimated to rise +.4% versus a +.3% gain in March.
 10:00 am EST
  • Preliminary Univ. of Mich. Consumer Sentiment Index for May is estimated to fall to 98.3 versus 98.8 in April.
Upcoming Splits
  • (HLF) 2-for-1
Other Potential Market Movers
  • The Australia Home Loans report and the (CTB) investor day could also impact trading today.
BOTTOM LINE:  Asian indices are higher, boosted by technology and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing modestly mixed.  The Portfolio is 75% net long heading into the day.

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