Thursday, November 08, 2018

Friday Watch

Evening Headlines
  • Asian Stocks Decline; Dollar Holds Gain on Fed. Stocks in Asia retreated Friday after three days of gains and an overnight decline in their U.S. counterparts. The dollar strengthened after the Federal Reserve stayed on course to hike interest rates again in December and maintained its gradual tightening path. Benchmarks fell across the region with the deepest losses seen in Hong Kong, while moves in U.S. futures were muted. Energy shares underperformed after oil entered a bear market, and crude prices fell for a tenth day. Treasury yields ticked lower. The offshore yuan held this week’s drop as Friday’s inflation data was in line with expectations. Emerging market currencies slid, with the Korean won, Indonesian rupiah and Philippine peso all lower amid strength in the greenback. The MSCI Asia Pacific Index fell 0.8 percent as of 10:30 a.m. Tokyo time. Topix index slid 0.2 percent. Hang Seng declines 1.5 percent. Australia’s S&P/ASX 200 Index declined 0.4 percent. Futures on the S&P 500 Index fell 0.1 percent.    
Wall St. Journal:
Zero Hedge:
Business Insider:
Night Trading 
  • Asian equity indices are -1.25% to -.50% on average.
  • Asia Ex-Japan Investment Grade CDS Index 84.0 -.25 basis point. 
  • Asia Pacific Sovereign CDS Index 9.5 unch.
  • Bloomberg Emerging Markets Currency Index 66.96 -.09%.
  • FTSE 100 futures -.25%.
  • S&P 500 futures -.06%.
  • NASDAQ 100 futures -.13%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (COL)/2.03
  • (SUP)/-.31
After the Close:
  • (ATHN)/.99
  • (GNC)/.09
Economic Releases
8:30 am EST
  • PPI Final Demand MoM for October is estimated to rise +.2% versus a +.2% gain in September.
  • PPI Ex Food and Energy MoM for October is estimated to rise +.2% versus a +.2% gain in September.
10:00 am EST
  • Wholesale Trade Sales MoM for September is estimated to rise +.4% versus a +.8% gain in August.
  • Preliminary Univ. of Mich. Consumer Sentiment for November is estimated to fall to 98.0 versus 98.6 in October.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Harker speaking, Fed's Williams speaking, China PPI report, (JNPR) investor day and the (DCO) investor day could also impact trading today.
BOTTOM LINE:  Asian indices are lower, weighed down by technology 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 50% net long heading into the day.

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