Monday, November 19, 2018

Tuesday Watch

Evening Headlines
  • Stock Slump Extends to Asia After U.S. Tech Sinks. Stocks in Asia declined as trading got underway Tuesday after weakness in some of the biggest technology companies sent U.S. stocks tumbling, adding to pessimism about escalating trade tensions. The yen ticked higher while the dollar and Treasuries were little changed. Equities fell in Japan, Australia and South Korea, while futures tipped a weaker open in Hong Kong. S&P 500 Index futures were also weaker after software developers and semiconductor manufacturers led the gauge lower Monday. The Nasdaq 100 Index plunged more than 3 percent to the lowest since April on renewed concern the trade war will hurt global demand and disrupt supply chains for the major technology companies that have carried the bull market for almost 10 years. Japanese automakers were under pressure with Nissan Motor Co. tumbling after the arrest on misconductallegations of the carmaker’s chairman, Carlos Ghosn. Japan’s Topix index fell 0.8 percent as of 9:10 a.m. in Tokyo. Australia’s S&P/ASX 200 Index dropped 0.7 percent. South Korea’s Kospi index lost 1 percent. Hong Kong’s Hang Seng Index futures declined 1.2 percent. S&P 500 futures fell 0.2 percent.   
Wall St. Journal:

Zero Hedge:
Night Trading 
  • Asian equity indices are -1.0% to -.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 94.75 +1.75 basis points. 
  • Asia Pacific Sovereign CDS Index 10.25 unch.
  • Bloomberg Emerging Markets Currency Index 67.37 -.01%.
  • FTSE 100 futures -.40%.
  • S&P 500 futures -.13%.
  • NASDAQ 100 futures -.22%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (CBRL)/1.91
  • (EV)/.85
  • (HIBB)/.16
  • (PDCO)/.37
After the Close:
  • (GME)/.56
  • (NTNX)/-.27
  • (CRM)/.50
Economic Releases
8:30 am EST
  • Housing Starts for October are estimated to rise to 1225K versus 1201K in September.
  • Building Permits for October are estimated to rise to 1260K versus 1241K in September.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone PPI report and the weekly US retail sales reports could also impact trading today.
BOTTOM LINE:  Asian indices are mostly lower, weighed down by technology and industrial shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 25% net long heading into the day.

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