Tuesday, August 28, 2018

Wednesday Watch

Night Trading 
  • Asian equity indices are unch. to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 77.75 -.25 basis point. 
  • Asia Pacific Sovereign CDS Index 10.25 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 66.53 +.02%.
  • FTSE 100 futures -.03%
  • S&P 500 futures +.12%.
  • NASDAQ 100 futures +.16%.
Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:
  • (AEO)/.31
  • (BF/B)/.40
  • (CHS)/.12
  • (DKS)/1.06
  • (EV)/.81
After the Close:
  • (HOME)/.33
  • (GES)/.33
  • (PVH)/2.09
  • (CRM)/.47
  • (SMTC)/.54
Economic Releases 
8:30 am EST
  • 2Q GDP Annualized QoQ is estimated to rise +4.0% versus a prior estimate of a +4.1% gain.
  • 2Q Personal Consumption is estimated to rise +3.9% versus a prior estimate of a +4.0% gain.
  • 2Q GDP Price Index is estimated to rise +3.0% versus a prior estimate of a +3.0% gain.
  • 2Q Core PCE QoQ is estimated to rise +2.0% versus a prior estimate of a +2.0% gain.
10:00 am EST
  • Pending Home Sales MoM for July are estimated to rise +.3% versus a +.9% gain in June..
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -854,110 barrels versus a -5,836,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +310,220 barrels versus a +1,200,000 barrel gain the prior week. Distillate inventories are estimated to rise by +1,671,220 barrels versus a +1,849,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to fall by -.54% versus unch. prior. 
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German GfK Consumer Confidence Index, Japan Retail Trade report, $31B 7Y T-Note auction, weekly MBA Mortgage Applications report and the Morgan Stanley China Tech/Media/Telecom Conference could also impact trading today.
BOTTOM LINE:  Asian indices are modestly higher, boosted by healthcare 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 100% net long heading into the day.

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