Wednesday, November 28, 2018

Thursday Watch

Evening Headlines
  • Stock Rally Builds in Asia on Powell's Dovish Tilt. An equity rally spread from the U.S. into Asia after a dovish tone from the Federal Reserve Chairman Jerome Powell fueled speculation the central bank may pause lifting interest rates next year. The dollar maintained its retreat. Stocks in Japan, South Korea and Australia gained after the S&P 500 Index surged the most since March. Emerging-market equities hit a three-week high and the Nasdaq 100 jumped 3.2 percent. The Bloomberg Dollar Index held steady after sinking the most in two weeks, when two-year Treasury yields dipped. Japan’s Topix index climbed 1 percent as of 9:05 a.m. South Korea’s Kospi index rose 1.3 percent. Australia’s S&P/ASX 200 Index advanced 0.9 percent. Futures were little changed on the S&P 500, which gained 2.3 percent Wednesday and the Nasdaq 100 rose 3.2 percent.   
Wall St. Journal:
Zero Hedge:    
Business Insider:
Night Trading 
  • Asian equity indices are +.5% to +1.0% on average.
  • Asia Ex-Japan Investment Grade CDS Index 94.75 -2.25 basis points. 
  • Asia Pacific Sovereign CDS Index 10.25 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 67.22 +.04%.
  • FTSE 100 futures +.76%.
  • S&P 500 futures -.09%.
  • NASDAQ 100 futures -.16%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (ANF)/.21
  • (AMWD)/1.88
  • (DLTR)/1.14
  • (PDCO)/.37
  • (TECD)/2.17
  • (TITN)/.36
  • (TD)/1.62
  • (YETI)/.21
After the Close:
  • (AVAV)/.20
  • (AMBA)/.09
  • (GME)/.56
  • (HPQ)/.54
  • (PANW)/1.05
  • (PVH)/3.14
  • (SPLK)/.32
  • (VMW)/1.51
  • (WDAY)/.14
Economic Releases
8:30 am EST
  • Personal Income for October is estimated to rise +.4% versus a +.2% gain in September.
  • Personal Spending for October is estimated to rise +.4% versus a +.4% gain in September. 
  • The PCE Core MoM for October is estimated to rise +.2% versus a +.2% gain in September.
  • Initial Jobless Claims for last week are estimated to fall to 220K versus 224K the prior week.
  • Continuing Claims are estimated to fall to 1663K versus 1668K prior.
10:00 am EST
  • Pending Home Sales MoM for October are estimated to rise +.5% versus a +.5% gain in September.
2:00 pm EST
  • FOMC Nov. 8 Minutes
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Mester speaking, Fed's Evans speaking, France Household Consumption report, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report, Goldman Automotive Conference, (DGX) investor day, (T) analyst event and the (CVNA) analyst day 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 mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the day.

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