Thursday, January 17, 2019

Friday Watch

Evening Headlines
  • Asia Stocks Advance as Trade Optimism Aids Rally. Stocks in Asia gained Friday, building on the recent rally in risk assets, amid optimism for progress in U.S.-China trade talks that earlier lifted U.S. equities and Treasury yields. Shares in Japan, Australia and South Korea rose and futures pointed to gains in Hong Kong. The S&P 500 Index exceeded its 50-day average for the first time since December after the Wall Street Journal reported Treasury Secretary Steven Mnuchin proposed easing China tariffs. While the Treasury denied that reporting, the story reinforced previous signs the administration is more eager for a deal to help support financial markets. The dollar was little changed, while oil continues to trade around $52 a barrel in New York. Japan’s Topix index rose 0.5 percent as of 9:14 a.m. in Tokyo. Hang Seng futures added 0.4 percent earlier. Australia’s S&P/ASX 200 Index gained 0.4 percent. Futures on the S&P 500 were flat.    
Wall St. Journal: 
Zero Hedge:
Night Trading 
  • Asian equity indices are +.25% to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 87.0 -.5 basis point
  • China Sovereign CDS 60.0 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 68.05 +.05%.
  • FTSE 100 futures +.44%.
  • S&P 500 futures +.21%.
  • NASDAQ 100 futures +.22%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (KSU)/1.55
  • (RF)/.38
  • (SLB)/.38
  • (STT)/1.69
  • (STI/1.43)
  • (VFC)/1.10
After the Close:
  • None of note
Economic Releases
9:15 am EST
  • Industrial Production MoM for Dec. is estimated to rise +.2% versus a +.6% gain in Nov.
  • Capacity Utilization for Dec. is estimated at 78.5% versus 78.5% in Nov.
  • Manufacturing Production for Dec. is estimated to rise +.3% versus unch. in Nov.
10:00 am EST
  • Preliminary Univ. of Mich. Consumer Confidence for  January is estimated to fall to 96.8 versus 98.3 in Dec.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Japan Industrial Production report and the (GME) holiday sales update could also impact trading today.
BOTTOM LINE:  Asian indices are higher, boosted by industrial and technology shares in the region. I expect US stocks to open mixed and to strengthen into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the day.

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