Thursday, November 15, 2018

Friday Watch

Evening Headlines
  • Asia Stocks Edge Higher; Brexit Slams Pound. Asian equities rounded out the week with muted gains following a rally in U.S. stocks as investors gauge whether China and the U.S. can de-escalate their trade spat before the G-20 summit later this month. Stocks in Japan ticked higher, Australian shares climbed, and futures pointedto modest gains for equities in China and Hong Kong. While trade-sensitive industrial shares led the S&P 500 Index higher and tech stocks rebounded, U.S. futures fell in Asian trading after Nvidia Corp. gave a disappointing sales forecast and Commerce Secretary Wilbur Ross dampened hopes of any imminent U.S.-China deal. The pound held on to its plunge as Brexit again threw the U.K. government into turmoil. The dollar was little changed and Treasuries were steady. Oil held at about $57 a barrel in New York. Japan’s Topix index slid 0.1 percent as of 9:05 a.m. in Tokyo. FTSE China A50 futures gained 0.7 percent. Futures on Hong Kong’s Hang Seng added 0.2 percent. Australia’s S&P/ASX 200 Index advanced 0.1 percent. South Korea’s Kospi rose 0.2 percent. The S&P 500 Index gained 1.1 percent. Futures slid 0.3 percent. Nasdaq 100 futures slipped 0.6 percent.  
Wall St. Journal:
Zero Hedge:
Night Trading 
  • Asian equity indices are -.25% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 91.50 -.5 basis point. 
  • Asia Pacific Sovereign CDS Index 10.0 unch.
  • Bloomberg Emerging Markets Currency Index 67.0 +.01%.
  • FTSE 100 futures +.56%.
  • S&P 500 futures -.38%.
  • NASDAQ 100 futures -.84%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (FRO)/-.11
  • (HP)/.18
  • (VIAB)/.95
After the Close:
  • None of note
Economic Releases
9:15 am EST
  • Industrial Production MoM for October is estimated to rise +.2% versus a +.3% gain in September.
  • Capacity Utilization for October is estimated to rise to 78.2% versus 78.1% in September.
  • Manufacturing Production for October is estimated to rise +.2% versus a +.2% gain in September.
11:00 am EST
  • The Kansas City Fed Manufacturing Activity Index for November is estimated to rise to 11.0 versus 8.0 in October.
4:00 pm EST
  • Net Long-Term TIC Flows.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Evans speaking, Eurozone CPI report, (CTSH) investor day and the (FLR) investor day 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 rally into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the day.

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