Thursday, November 01, 2018

Friday Watch

Evening Headlines
  • Asia Stocks Rally Faces Apple-Disappointment Test. The best weekly rally for Asian stocks since September, stoked by hopes for trade talks and China stimulus, faced a test on Friday after underwhelming news from Apple Inc. U.S. equity futures declined. Apple stoked concerns by saying it will stop reporting unit sales of its top product, sending its stock tumbling after hours and taking down futures on the Nasdaq, which had gained Thursday. Earlier, a phone call between Presidents Donald Trump and Xi Jinping showed the door is still open for U.S.-China trade talks, a development that had tipped gains for Asian shares. Futures on Chinese and Hong Kong stock indexes climbed. Japanese contracts more recently pointed to marginal gains and Australia headed for a flat start. Oil prices tumbled again in New York Thursday, alleviating pressure on importers such as India. Futures on the Nikkei 225 Stock Average in Singapore traded close to the level they were at when Tokyo cash equity trading ended Thursday. Contracts on Australia’s S&P/ASX 200 were flat. Futures on the FTSE China A50 surged 2.9 percent earlier. Futures on the Hang Seng Index rose 2.1 percent earlier. The S&P 500 Index increased 1.1 percent, capping a three-day surge of almost 4 percent. The Nasdaq Composite Index climbed 1.8 percent. Futures on the S&P 500 lost 0.4 percent, while Nasdaq futures declined 1.1 percent.      
Wall St. Journal:
Zero Hedge:
Night Trading 
  • Asian equity indices are +.25% to +1.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 90.5 -.75 basis point. 
  • Asia Pacific Sovereign CDS Index 10.25 unch.
  • Bloomberg Emerging Markets Currency Index 66.70 unch.
  • FTSE 100 futures -.56%.
  • S&P 500 futures -.05%.
  • NASDAQ 100 futures -.78%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (ABBV)/2.01
  • (BABA)/1.10
  • (AXL)/.90
  • (CBOE)/1.01
  • (CVX)/2.09
  • (DUK)/1.51
  • (XOM)/1.21
  • (ITT)/.79
  • (NWL)/.64
  • (COL)/2.03
  • (RUTH)/.11
  • (STX)/1.55
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • The Trade Deficit for September is estimated at -$53.6B versus -$53.2B in August.
  • The Change in Non-Farm Payrolls for October is estimated at 200K versus 134K in September.
  • The Unemployment Rate for October is estimated at 3.7% versus 3.7% in September.
  • Average Hourly Earnings MoM for October is estimated to rise +.2% versus a +.3% gain in September.
2:00 pm EST
  • Factory Orders for September is estimated to rise +.5% versus a +2.3% gain in August.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone PMI report could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted 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.

No comments: