Wednesday, August 01, 2018

Thursday Watch

Evening Headlines
Bloomberg:  
  • Asia Stocks Head for Weaker Start; Treasuries Drop. Asian stocks were set for small declines after a mixed U.S. equities session with the Federal Reserve doing little to alter expectations for two more rate hikes this year amid U.S.-China trade tensions. The dollar climbed with Treasury yields. Futures signaled losses for shares in Japan, Hong Kong and Australia. Trade concerns weighed on the S&P 500, overshadowing positive Apple Inc. earnings. Ten-year Treasury yields touched 3 percent for the first time since June as the Fed unanimously decided to leave rates unchanged while making it clear borrowing costs are headed higher. The offshore yuan extended losses. Futures on Japan’s Nikkei 225 slipped 0.4 percent in Singapore. Futures on Australia’s S&P/ASX 200 Index dropped 0.4 percent. Futures on Hong Kong’s Hang Seng slid 0.5 percent.
Telegraph:   
Night Trading 
  • Asian equity indices are -.25% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 80.75 +1.5 basis points. 
  • Asia Pacific Sovereign CDS Index 11.0 unch.
  • Bloomberg Emerging Markets Currency Index 69.79 +.03%.
  • FTSE 100 futures +.04%
  • S&P 500 futures +.12%.
  • NASDAQ 100 futures +.18%.
Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:
  • (AET)/3.04
  • (ABC)/1.46
  • (AAWW)/1.22
  • (AVP)/.00
  • (BDX)/2.86
  • (CI)/3.30
  • (CLX)/1.59
  • (ICE)/.89
  • (K)/1.05
  • (MGM)/.30
  • (REGN)/4.66
  • (YUM)/.74
  • (ZTS)/.70
After the Close:
  • (ATVI)/.35
  • (AIG)/1.21
  • (ANET)/1.70
  • (CBS)/1.11
  • (EOG)/1.24
  • (OSTK)/-.82
  • (RMAX)/.59
  • (SHAK)/.18
  • (TTWO)/.08
  • (TRUP)/-.03
  • (WING)/.20
Economic Releases 
7:30 am EST
  • Challenger Job Cuts YoY for July.
8:30 am EST
  • Initial Jobless Claims are estimated to rise to 220K versus 217K the prior week.
  • Continuing Claims are estimated to rise to rise to 1750K versus 1745K prior.
10:00 am EST
  • Factory Orders for June are estimated to rise +.7% versus a +.4% gain in May.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone PPI report, BoE meeting, China Services PMI report and the weekly EIA natural gas inventory report could also impact trading today.
BOTTOM LINE:  Asian indices are mostly lower, weighed down by commodity and industrial shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 75% net long heading into the day.

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