Monday, October 22, 2018

Tuesday Watch

Evening Headlines
Bloomberg:       
  • Asian Stocks Resume Declines; Dollar Holds Gain. Asian equities opened lower as U.S. futures built on Monday declines ahead of a slew of key earnings reports this week. The dollar traded around the highest level in two months. Stocks fell in Japan, Australia and South Korea. Futures in China and Hong Kong were lower, suggesting the biggest jump in more two years in the Chineseequities Monday may not extend. Earlier in the U.S., banks and energy stocks weighed on the S&P 500 Index though the FANG cohort lifted tech-heavy Nasdaq indexes ahead of megacap earnings from the likes of Alphabet and Twitter. Treasury yields dipped and oil was stable near a five-week low. Japan’s Topix index fell 1.1 percent as of 9:14 a.m. in Tokyo. The S&P/ASX 200 Index dropped 0.6 percent. Hong Kong Hang Seng Index contracts lost 0.5 percent. FTSE China A50 futures were declined 0.4 percent. South Korea’s Kospi index lost 0.7 percent. S&P 500 futures fell 0.4 percent.  
Wall St. Journal:
Night Trading 
  • Asian equity indices are -1.25% to -.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 88.0 -.25 basis point. 
  • Asia Pacific Sovereign CDS Index 9.75 unch.
  • Bloomberg Emerging Markets Currency Index 66.94 -.06%.
  • FTSE 100 futures -.41%.
  • S&P 500 futures -.58%.
  • NASDAQ 100 futures -.57%.
Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:
  • (MMM)/2.70
  • (BIIB)/6.76
  • (CAT)/2.85
  • (CIT)/1.14
  • (GLW)/.48
  • (FITB)/.63
  • (HOG)/.54
  • (JBLU)/.42
  • (LMT)/4.31
  • (MCD)/1.99
  • (PCAR)/1.52
  • (PHM)/.94
  • (DGX)/1.68
  • (RF)/.36
  • (UTX)/1.82
After the Close:
  • (COF)/2.87
  • (CSL)/1.73
  • (CB)/2.39
  • (IEX)/1.31
  • (ILMN)/1.26
  • (JNPR)/.44
  • (IRBT)/.52
  • (RHI)/.92
  • (TER)/.63
  • (TXN)/1.58
  • (VMI)/1.78
  • (VAR)/1.20
Economic Releases
10:00 am EST
  • The Richmond Fed Manufacturing Index for October is estimated to fall to 24.0 versus 29.0 in September.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Kashkari speaking, Fed's Bostic speaking, Fed's Evans speaking, $38B 2-Year T-Note auction and the Eurozone Consumer Confidence report could also impact trading today.
BOTTOM LINE:  Asian indices are lower, weighed down by technology and financial shares in the region. I expect US stocks to open modestly lower and to maintain lossesinto the afternoon.  The Portfolio is 50% net long heading into the day.

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