Monday, September 17, 2018

Tuesday Watch

Evening Headlines
Bloomberg:  
  • U.S. Stock Futures Drop as Trump Readies Tariffs. U.S. stock futures fell and Asian stocks are set to decline after the Trump administration’s latest barrage of tariffs against China. The dollar ticked higher. The largest exchange-traded fund that tracks the S&P 500 Index retreated after hours following Trump’s announcement that a fresh $200 billion in Chinese goods are subject to levies of 10 percent, rising to 25 percent in 2019. Japanese futures declined as the market readied to return from a holiday. Chinese futures suggested stocks will extended a decline after ending at a four-year low Monday. U.S. stocks ended the regular session down the most in a month, with technology companies leading decliners, as investors braced for the move. The dollar fell versus major peers ahead of the announcement. Beijing has already said it will retaliate. Futures on the Nikkei 225 Stock Average fell 0.4 percent in Singapore. Futures on Australia’s S&P/ASX 200 Index were steady. Futures on Hong Kong’s Hang Seng Index rose 0.2 percent. S&P 500 futures dropped 0.2 percent as of 7:44 a.m. in Tokyo.
Wall St. Journal:
Night Trading 
  • Asian equity indices are -.5% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 78.0 -.5 basis point. 
  • Asia Pacific Sovereign CDS Index 12.25 unch.
  • Bloomberg Emerging Markets Currency Index 65.81 -.09%.
  • FTSE 100 futures -.10%.
  • S&P 500 futures -.35%.
  • NASDAQ 100 futures -.47%.
Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:
  • (APOG)/.82
  • (AZO)/17.91
  • (CBRL)/2.69
  • (GIS)/.64
After the Close:
  • None of note
Economic Releases
10:00 am EST
  • The NAHB Housing Market Index for September is estimated to fall to 66.0 versus 67.0 in August.
4:00 pm EST
  • Net Long-Term TIC Flows for July.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Australia Housing Price report, Japan Trade Balance report, weekly US retail sales reports and the (BWA) investor day could also impact trading today.
BOTTOM LINE:  Asian indices are lower, weighed down by technology and industrial shares in the region. I expect US stocks to open modestly lower and to maintain losses into the afternoon.  The Portfolio is 50% net long heading into the day.

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