Sunday, July 29, 2018

Monday Watch

Today's Headlines
Bloomberg: 
  • Asia Stocks Open Lower Amid Earnings; Yen Steadies. Asian stocks opened on a soft note on Monday as the ongoing reporting season raised concerns about lofty expectations for earnings and traders prepare for key policy meetings from the world’s biggest central banks. The yen steadied ahead of a crucial week for the Bank of Japan. Equity benchmarks in Japan, Australia and South Korea edged lower, while futures indicated modest declines in Hong Kong. The S&P 500 Index closed weaker Friday and Treasuries climbed as second-quarter U.S. gross domestic product narrowly missed estimates, despite growing at the fastest pace since 2014. The offshore yuan added to last week’s slump, driven in part by China’s moves to ease monetary conditions. The dollar steadied and Treasury yields ticked higher. Japan’s Topix index fell 0.3 percent as of 9:12 a.m. in Tokyo. Australia’s S&P/ASX 200 Index lost 0.6 percent. South Korea’s Kospi index fell 0.2 percent. Futures on Hong Kong’s Hang Seng Index retreated 0.3 percent. Futures on the S&P 500 were down less than 0.1 percent.
MarketWatch.com:
Zero Hedge:            
Night Trading
  • Asian indices are -.50% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 77.50 +1.0 basis point.
  • Asia Pacific Sovereign CDS Index 12.0 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 69.99 -.01%.
  • FTSE 100 futures -.59%
  • S&P 500 futures -.17%.
  • NASDAQ 100 futures -.31%.

Earnings of Note
Company/Estimate
Before the Open:
  • (CAT)/2.74
  • (DO)/-.39
  • (L)/.73
  • (STX)/1.45
  • (SOHU)/-1.50
  • (AMG)/3.59
After the Close:
  • (AKS)/.21
  • (AVB)/2.20
  • (ILMN)/1.11
  • (KLAC)/2.12
  • (RIG)/-.18
  • (VNO)/1.08
Economic Releases
10:00 am EST
  • Pending Home Sales MoM for June is estimated to rise +.4% versus a -.5% decline in May.
10:30 am EST
  • Dallas Fed Manufacturing Activity for July is estimated to fall to 31.0 versus 36.5 in June.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Japan Industrial Production report and the Eurozone Consumer Confidence report could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and industrial shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 50% net long heading into the week.

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