Thursday, October 25, 2018

Friday Watch

Evening Headlines
  • Asia Stocks Set to Rally on U.S. Gains; Bonds Slip. Asian stocks looked set to end a torrid week with gains following a rally in U.S. equities, despite falling deeper into a bear market Thursday. Yields on Treasuries rose and the dollar strengthened to the highest level this year. Futures pointed higher for equity markets from Sydney to Hong Kong after the S&P 500 Index rose for the first time in seven days, lifted by strong earnings from Twitter, Microsoft and Tesla. The optimism for technology firms was quickly dented after Amazon and Alphabet reported disappointing results and Nasdaq futures dipped in late trading. Futures on Japan’s Nikkei 225 rose 1 percent in Singapore trading. FTSE China A50 index futures added 0.8 percent. Futures on Australia’s S&P/ASX 200 Index gained 1.3 percent. Futures on Hong Kong’s Hang Seng rose 1 percent.  
Wall St. Journal:
Night Trading 
  • Asian equity indices are -.25% to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 91.25 -.25 basis point. 
  • Asia Pacific Sovereign CDS Index 10.0 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 66.57 -.02%.
  • FTSE 100 futures -.77%.
  • S&P 500 futures -.67%.
  • NASDAQ 100 futures -.87%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (B)/.81
  • (COG)/.27
  • (CL)/.72
  • (GT)/.75
  • (LPNT)/.99
  • (MCO)/1.78 
  • (psx)/2.46
  • (col)/2.02
  • (r)/1.65
  • (wy)/.38
  • (ZBH)/1.60
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • Advance 3Q GDP is estimated to rise +3.3% versus a +4.2% gain in 2Q.
  • Advance 3Q Personal Consumption is estimated to rise +3.3% versus a +3.8% gain in 2Q.
  • Advance 3Q GDP Price Index is estimated to rise +2.1% versus a +3.0% gain in 2Q.
  • Advance 3Q Core PCE QoQ is estimated to rise +1.8% versus a +2.1% gain in 2Q. 
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The BoJ Bond purchases could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by financial 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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