Wednesday Watch

Night Trading 

• Asian equity indices are -.25% to +.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 82.0 -2.25 basis points. 

• Asia Pacific Sovereign CDS Index 10.75 unch.

• Bloomberg Emerging Markets Currency Index 66.22 -.14%.

• FTSE 100 futures +.21%

• S&P 500 futures -.04%.

• NASDAQ 100 futures -.01%.

Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:

• (M)/.50

After the Close:

• (BGG)/.41

• (CACI)/1.75

• (CSCO)/.69

• (NTAP)/.80

Economic Releases 
8:30 am EST

• Empire Manufacturing for August is estimated to fall to 20.0 versus 22.6 in July. 

• Preliminary 2Q Non-Farm Productivity is estimated to rise +2.4% versus a +.4% gain in 1Q.

• Preliminary 2Q Unit Labor Costs are estimated unch. versus a +2.9% gain in 1Q.

• Retail Sales Advance MoM for July are estimated to rise +.1% versus a +.5% gain in June.

• Retail Sales Ex Autos MoM for July are estimated to rise +.3% versus a +.4% gain in June.
  

9:15 am EST

• Industrial Production MoM for July is estimated to rise +.3% versus a +.6% gain in June.

• Capacity Utilization for July is estimated to rise to 78.2% versus 78.0% in June.

• Manufacturing Production for July is estimated to rise +.3% versus a +.8% gain in June.
  

10:00 am EST

• Business Inventories for June are estimated to rise +.1% versus a +.4% gain in May. 

• The NAHB Housing Market Index for August is estimated to fall to 67.0 versus 68.0 in July.
  

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,885,820 barrels versus a -1,351,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -76,000 barrels versus a +2,900,000 barrel gain the prior week. Distillate inventories are estimated to rise by +1,038,600 barrels versus a +1,230,000 barrel build the prior week. Finally, Refinery Utilization is estimated to fall by -.36% versus a +.5% gain prior.
  

4:00 pm EST

• Net Long-Term TIC Flows for June.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The China New Home Price report, weekly MBA Mortgage Applications report, Citi MLP Infrastructure Conference and the (IDXX) Investor Day could also impact trading today.

BOTTOM LINE:  Asian indices are slightly lower, weighed down by industrial and consumer 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.