Thursday, October 11, 2018

Friday Watch

Evening Headlines
  • Asia Stocks Start Friday Mixed, U.S. Futures Rise. Asian equity markets looked set for a mixed end to the worst week since February, with some signs that China and Hong Kong could steady after the recent slump. In another indication that sentiment might be shifting, U.S. stock futures rose. While stocks in Japan and Australia added to this week’s losses, South Korean equities rose and futures signaled gains for China, after the Shanghai Composite slumped to a four-year low. Futures on the S&P 500 Index were up 0.5 percent after the benchmark on Thursday dropped more than 2 percent. Tech shares, which bore the brunt of the selling Wednesday, fared less badly. The offshore yuan traded stronger than 6.9 per dollar. Treasuries were little changed. Singapore’s dollar was steady after the central bank tightened its stance, as anticipated by many, in its policy decision Friday. Japan’s Topix index fell 0.4 percent, bringing this week’s slide to 5.5 percent. Futures on the FTSE China A50 Index rose 0.6 percent. Futures on Hong Kong’s Hang Seng Index advanced 1.1 percent earlier. Australia’s S&P/ASX 200 Index lost 0.3 percent. South Korea’s Kospi index gained 0.7 percent. The S&P 500 fell 2.1 percent Thursday. Futures were up 0.5 percent.
Wall St. Journal: 
Business Insider:
Night Trading 
  • Asian equity indices are -.25% to +1.0% on average.
  • Asia Ex-Japan Investment Grade CDS Index 87.25 +.5 basis point. 
  • Asia Pacific Sovereign CDS Index 10.25 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 66.56 +.12%.
  • FTSE 100 futures +.02%.
  • S&P 500 futures +.56%.
  • NASDAQ 100 futures +.67%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (C)/1.67
  • (JPM)/2.26
  • (PNC)/2.72
  • (WFC)/1.17
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • The Import Price Index MoM for September is estimated to rise +.2% versus a -.6% decline in August.
  • The Import Price Index ex Petroleum MoM for September is estimated to fall -.1% versus a -.2% decline in August.
  • The Export Price Index MoM for September is estimated to rise +.2% versus a -.1% decline in August.
10:00 am EST
  • Preliminary Univ. of Mich. Consumer Sentiment for October is estimated to rise to 100.5 versus 100.1 in September.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Bostic speaking, Fed's Evans speaking, Eurozone Industrial Production report and the China Trade Balance report could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by technology 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 50% net long heading into the day.

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