Tuesday, January 15, 2019

Wednesday Watch

Evening Headlines
  • Asia Stocks Mixed as Rally Eases; Pound Steadies. The rally that drove Asian equities to a six-week high showed signs of stalling Wednesday, while the pound steadied after U.K. politicians voted down a Brexit deal. Shares in Australia and South Korea were little changed and Japanese equities retreated from their almost 9 percent advance since Christmas. Earlier, the S&P 500 Index climbed the most in a week as risk assets across the globe were spurred in part by signs of more stimulus to come in China. The 10-year Treasury yield held at 2.71 percent, while the dollar was steady against major peers. The yield spread between five-year and 30-year Treasuries steepened Tuesday, touching a level unseen since February amid further comments from Federal Reserve officials stressing patience when it comes to policy changes. Japan’s Topix index slid 0.4 percent as of 9:07 a.m. in Tokyo. Hang Seng futures slid 0.1 percent. Australia’s S&P/ASX 200 Index was little changed. Futures on the S&P 500 added 0.1 percent.    
Wall St. Journal: 
Night Trading 
  • Asian equity indices are -.5% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 88.50 -1.5 basis points
  • China Sovereign CDS 61.5 -2.0 basis points.
  • Bloomberg Emerging Markets Currency Index 67.84 -.04%.
  • FTSE 100 futures -.26%.
  • S&P 500 futures +.09%.
  • NASDAQ 100 futures +.06%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (BAC)/.63
  • (BLK)/6.40
  • (SCHW)/.64
  • (CMA)/1.89
  • (GS)/4.78
  • (PNC)/2.78
  • (USB)/1.06
After the Close:
  • (AA)/.50
  • (CSX)/.99
  • (FUL)/.99
  • (KMI)/.25
  • (PLXS)/.90
Economic Releases
8:30 am EST
  • The Import Price Index MoM for Dec. is estimated to fall -1.3% versus a -1.6% decline in Nov.
  • The Import Price Index MoM Ex-Petro for Dec. is estimated unch. versus a -,3% decline in Nov.
  • The Export Price Index MoM for Dec. is estimated to fall -.7% versus a -.9% decline in Nov.
10:00 am EST
  • The NAHB Housing Market Index for January is estimated at 56.0 versus 56.0 in Dec.
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -1,392,330 barrels versus a -1,680,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +2,524,560 barrels versus a +8,066,000 barrel gain the prior week. Distillate inventories are estimated to rise by +1,504,110 barrels versus a +10,611,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to fall -.66% versus a -1.1% decline prior.
2:00 pm EST
  • US Fed Beige Book release.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China Home Price report, UK/Germany CPI reports, weekly MBA Mortgage Applications report, TD Securities Mining Conference and the (UNFI) investor day could also impact trading today.
BOTTOM LINE:  Asian indices are slightly lower, weighed down by financial and consumer 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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