Tuesday, November 06, 2018

Wednesday Watch

Evening Headlines
  • U.S. Futures, Yen Mixed as Investors Await Outcome. U.S. stock futures were little changed and the yen held steady versus the dollar as markets remained cautious with investors bracing for American midterm election results. Contracts on the S&P 500 edged lower, while the main exchange-traded fund tracking the equity benchmark was flat ahead of the outcome in congressional races seen as a referendum on the policies of President Donald Trump. Stocks in Tokyo rose and the yen edged higher versus the dollar. E-minis on the S&P 500 slipped 0.1 percent as of 7:18 p.m. in New York. The SPDR S&P 500 ETF Trust was flat. Tokyo’s Topix Index opened up 0.5 percent. Australia’s S&P/ASX 200 was down 0.2 percent. South Korea’s Kospi Index rose 0.2 percent. The 10-year Treasury yield held near 3.21 percent. The offshore yuan extended this week’s losses.   
Wall St. Journal:
Zero Hedge:
Night Trading 
  • Asian equity indices are -.25% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 86.25 -1.5 basis points. 
  • Asia Pacific Sovereign CDS Index 9.75 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 67.19 -.03%.
  • FTSE 100 futures +.38%.
  • S&P 500 futures +.14%.
  • NASDAQ 100 futures +.22%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (FOXA)/.52
  • (CARS)/.56
  • (DF)/-.06
  • (DLPH)/.76
  • (DISH)/.67
  • (HUM)/4.24
  • (KORS)/1.10
  • (ODP)/.12
  • (ROK)/2.02
  • (SMG)/-.66
  • (TSG)/.50
  • (WWW)/.56
After the Close:
  • (ADT)/.26
  • (ALB)/1.25
  • (CVNA)/-.36
  • (FLO)/.25
  • (FOSL)/-.10
  • (IAC)/1.85
  • (MRO)/.20
  • (MCHP)/1.73
  • (MNST)/.46
  • (MUR)/.35
  • (NWSA)/.05
  • (PRU)/3.16
  • (QCOM)/.84
  • (SQ)/.11
  • (TTWO)/.93
  • (WYNN)/1.67
Economic Releases
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory gain of +2,050,100 barrels versus a +3,217,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -1,898,780 barrels versus a -3,161,000 barrel decline the prior week. Distillate inventories are estimated to fall by -1,518,110 barrels versus a -4,054,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.83% versus a +.2% gain prior.
3:00 pm EST
  • Consumer Credit for September is estimated at $15.0B versus $20.08B in August.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Japan Machine Orders report, China Foreign Exchange Reserves report, German Industrial Production report, weekly MBA Mortgage Applications report, $19B 30Y T-Bond auction and the (COST)/(ZUMZ)/(PSMT) October sales reports 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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