Sunday, November 04, 2018

Monday Watch

Today's Headlines
  • Asian Stocks Set for Lower Open; Pound Jumps. Asian stocks looked set for a weak start after a reversal in U.S. equities on Friday, amid concern over whether trade tensions with China can be mended. The pound jumped on news of further progress in Brexit negotiations. Futures pointed to losses in Japanese and Chinese shares. Australian shares opened lower and U.S equity-index futures slid. The dollar gained Friday, particularly against the yen, while 10-year U.S. Treasury yields rose to 3.21 percent on the strong jobs report. The pound strengthened after the Times reported Theresa May has secured concessions from Brussels that’ll allow her to keep all of Britain in a customs union with the EU and avoid a hard border in Northern Ireland. Futures on the Nikkei 225 Stock Average fell about 1 percent in Osaka. Australia’s S&P/ASX 200 fell 0.2 percent. Futures on the FTSE China A50 dropped 1.5 percent. Futures on the Hang Seng Index fell 2.4 percent. S&P 500 Index futures lost 0.3 percent.  
Zero Hedge:       
Night Trading
  • Asian indices are -1.25% to -.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 87.5 -3.0 basis points.
  • Asia Pacific Sovereign CDS Index 10.25 unch.
  • Bloomberg Emerging Markets Currency Index 67.02 +.01%.
  • FTSE 100 futures -.01%.
  • S&P 500 futures -.26%.
  • NASDAQ 100 futures -.27%.

Earnings of Note
Before the Open:
  • (DO)/-.35
  • (L)/.97
  • (SOHU)/-1.61
  • (SYY)/.92
After the Close:
  • (ANDE)/.15
  • (CAR)/3.54
  • (MTW)/.12
  • (MAR)/1.31
  • (MOS)/.65
  • (MYL)/1.19
  • (NBIX)/.49
  • (OXY)/1.53
  • (RCII)/.28
  • (THC)/.12
Economic Releases
10:00 am EST
  • The ISM Non-Manufacturing Index for October is estimated to fall to 59.0 versus 61.6 in September.
Upcoming Splits
  • (TJX) 2-for-1
Other Potential Market Movers
  • The China Services PMI report, CSFB China Investment Conference, Oil sanctions against Iran, $37B 3Y T-Note auction, BofA Merrill Future of Financials Conference and the (MDR) analyst meeting could also impact trading today.
BOTTOM LINE: Asian indices are lower, weighed down by industrial and technology shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 25% net long heading into the week.

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