Tuesday, November 27, 2018

Tuesday Watch

Evening Headlines
Bloomberg:        
  • Asia Stocks Mixed Amid Trade Talk; Dollar Steady. Asian stocks traded mixed Wednesday as investors mulled comments from Federal Reserve officials and the chances of a breakthrough in the U.S.-China trade dispute. The dollar maintained gains. Shares rose in Tokyo and were little changed in Sydney and Seoul. Futures pointed to gains in Shanghai and Hong Kong after the S&P 500 Index climbed for a second day. The 10-year Treasury yield was steady as Federal Reserve Vice Chairman Richard Clarida backed gradual rate hikes ahead of Jerome Powell’s speech on Wednesday. The euro slipped after a report that U.S. President Donald Trump may impose tariffs on European cars as early as next week. Japan’s Topix index advanced 0.3 percent as of 9:16 a.m. in Tokyo. Australia’s S&P/ASX 200 Index slipped 0.1 percent. FTSE China A50 futures rose 0.6 percent. Futures on Hong Kong’s Hang Seng gained 0.4 percent. S&P 500 futures rose 0.1 percent.  
Wall St. Journal:
CNBC:          
Zero Hedge:    
Night Trading 
  • Asian equity indices are -.25% to +.50% on average.
  • Asia Ex-Japan Investment Grade CDS Index 97.0 +.75 basis point. 
  • Asia Pacific Sovereign CDS Index 10.5 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 66.87 -.05%.
  • FTSE 100 futures +.17%.
  • S&P 500 futures +.05%.
  • NASDAQ 100 futures +.14%.
Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:
  • (BURL)/1.06
  • (CHS)/.08
  • (DKS)/.25
  • (JLL)/.09
  • (SJM)/2.29
  • (MOV)/1.12
  • (RY)/2.15
  • (SINA)/.72
  • (TIF)/.77
  • (WB)/.72
After the Close:
  • (GES)/.16
  • (LZB)/.44
  • (OXM)/.17
  • (SMTC)/.61
Economic Releases
8:30 am EST
  • Advance Goods Trade Balance for October is estimated at -$77.0B versus -$76.3B in September.
  • Wholesale Inventories MoM for October are estimated to rise +.4% versus a +.4% gain in September. 
  • Retail Inventories MoM for October are estimated to rise +.5% versus a +.1% gain in September.
  • 3Q GDP is estimated to rise +3.5% versus a prior estimate of a +3.5% gain.
  • 3Q Personal Consumption is estimated to rise +3.9% versus a prior estimate of a +3.9% gain.
  • 3Q Core PCE is estimated to rise +1.6% versus a prior estimate of a +1.6% gain.
10:00 am EST
  • New Home Sales for October are estimated to rise to 575K versus 553K the prior week.
  • The Richmond Fed Manufacturing Index for November is estimated at 15.0 versus 15.0 in October.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Powell speaking, $32B 7Y T-Note auction, weekly MBA Mortgage Applications report, Goldman Metals/Mining Conference and the Deutsche Bank Gaming/Lodging/Leisure/Restaurants Conference could also impact trading today.
BOTTOM LINE:  Asian indices are mostly 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 75% net long heading into the day.

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