Wednesday, November 07, 2018

Thursday Watch

Evening Headlines
  • Stocks Rally Builds in Asia After Election Hurdle. Stocks in Asia jumped following a strong U.S. session as investors moved past the hurdle of uncertainty presented by America’s midterm elections and saw benefits in Washington’s gridlock. Equities posted strong gains in Japan and South Korea as trading got underway Thursday, while Australian shares also advanced. Futures pointed higher in Hong Kong and China. The S&P 500 Index rose more than 2 percent as investors bet a split Congress dimmed chances President Donald Trump’s signature tax cuts will be reversed while reducing the possibility of major fiscal initiatives that might have pushed up interest rates. The dollar ticked higher and Treasury yields held gains. Japan’s Topix index rose 1.4 percent as of 9:03 a.m. in Tokyo. Hong Kong’s Hang Seng futures climbed 0.8 percent. Australia’s S&P/ASX 200 Index advanced 0.4 percent. S&P 500 futures were little changed. 
Wall St. Journal:  
Zero Hedge:
Night Trading 
  • Asian equity indices are +.5% to +1.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 84.25 -2.0 basis points. 
  • Asia Pacific Sovereign CDS Index 9.5 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 67.41 -.05%.
  • FTSE 100 futures +.64%.
  • S&P 500 futures -.17%.
  • NASDAQ 100 futures -.23%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (AZN)/.66
  • (CAH)/1.07
  • (DDS)/.52
  • (DISCA)/.61
  • (DHI)/1.22
  • (JCI)/.93
  • (LGND)/1.03
  • (LOXO)/-1.21
  • (SGMS)/-.24
  • (STRA)/.68
After the Close:
  • (ATVI)/.50
  • (BRKS)/.38
  • (DBX)/.06
  • (FNKO)/.23
  • (HTZ)/1.77
  • (OSTK)/-.71
  • (RDFN)/.02
  • (DIS)/1.34
  • (YELP)/.35
Economic Releases
8:30 am EST
  • Initial Jobless Claims for last week are estimated to fall to 213K versus 214K the prior week.
  • Continuing Claims are estimated to rise to 1634K versus 1631K prior.
2:00 pm EST
  • The FOMC is expected to leave the benchmark Fed Funds rate at 2.0-2.25%.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China Trade Balance report, German Import Price report, WasDe Crop report, 3Q Mortgage Delinquencies/Foreclosures report, weekly EIA natural gas inventory report, weekly Bloomberg Consumer Comfort Index, Stifel Growth Conference, (ASML) investor day, (ATI) investor day, (ULTA) investor day, (LB)/(CATO)/(BKE) Oct. sales reports and the (SYK) analyst meeting could also impact trading today.
BOTTOM LINE:  Asian indices are higher, boosted 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 100% net long heading into the day.

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