Monday, November 12, 2018

Tuesday Watch

Evening Headlines
  • Asia Stocks Slide After U.S. Sell-off; Yields Drop. Asian stocks tumbled at the open on Tuesday, with Japanese benchmarks sliding more than 3 percent, following a tech-led slump on Wall Street overnight thanks to a deteriorating outlook for iPhone sales. Treasury yields dropped and the yen headed higher. Key indexes slid from Tokyo and Seoul to Sydney, and futures in Hong Kong pointed to a significant drop. Apple Inc. suppliers are under pressure after the iPhone maker faltered on signs of a deteriorating sales outlook. S&P 500 Index futures dipped. The Nasdaq 100 Index dropped for a third day and the Russell 2000 small-cap benchmark erased its gains for the year. Oil fell for a record 12th straight day. The dollar traded at 18-month highs. Japan’s Topix index slumped 3 percent as of 9:23 a.m. in Tokyo. Australia’s S&P/ASX 200 Index dropped 1.7 percent. South Korea’s Kospi index fell 2 percent. Hong Kong Hang Seng Index futures lost 1.1 percent. S&P 500 futures rose 0.1 percent.  
Wall St. Journal:
Zero Hedge:
Night Trading 
  • Asian equity indices are -2.0% to -1.0% on average.
  • Asia Ex-Japan Investment Grade CDS Index 88.50 +2.25 basis points. 
  • Asia Pacific Sovereign CDS Index 9.75 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 66.37 unch.
  • FTSE 100 futures -.26%.
  • S&P 500 futures -.04%.
  • NASDAQ 100 futures -.18%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (AAP)/1.76
  • (BZH)/.97
  • (HD)/2.27
  • (TSN)/1.38
After the Close:
  • (CWK)/.18
  • (HI)/.67
  • (PETQ)/.27
  • (TLRY)/-.12
Economic Releases
6:00 am EST
  • The NFIB Small Business Optimism Index for October is estimated to rise to 108.0 versus 107.9 in September.
2:00 pm EST
  • The Monthly Budget Statement for October is estimated at -$100.0B versus -$63.2B in September.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Japan GDP report, Germany ZEW Index, monthly OPEC oil market report, weekly US retail sales reports, Morgan Stanley Chem/Ag Conference, RBC Midstream Conference, Stifel Healthcare Conference, Morgan Stanley Consumer/Retail Conference, Needham Networking/Communications/Security Conference, Scotiabank Transport/Industrials Conference, (SFLY) analyst meeting, (ZEN) analyst briefing and the (OSTK) analysts 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 25% net long heading into the day.

No comments: