Tuesday, January 08, 2019

Wednesday Watch

Evening Headlines
  • White House to Roll Out Bill to Expand Trump’s Tariff Powers, Sources Say. Asia Stocks Rise on Trade-Thaw Hopes; Dollar Slips. Asian stocks followed a rally in the U.S. to open higher amid optimism on the potential for progress in trade talks between the U.S. and China. Treasuries were steady after their recent slide and the dollar dipped. Equities advanced in Japan, Australia and South Korea after all major U.S. indexes climbed. U.S. President Donald Trump is eager to strike a deal to boost financial markets that have been roiled by the trade war, according to people familiar. Earlier, he tweeted that talks are “going very well” as the negotiations continued with China. Crude climbed above $50 a barrel for the first time this year. Japan’s Topix index climbed 1.1 percent as of 9:17 a.m. in Tokyo. Australia’s S&P/ASX 200 Index rose 0.5 percent. South Korea’s Kospi index added 0.9 percent. Hong Kong’s Hang Seng Index futures gained 0.6 percent. S&P 500 futures ticked 0.3 percent higher.
Wall St. Journal:
Night Trading 
  • Asian equity indices are +.75% to +1.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 92.5 -2.5 basis points
  • China Sovereign CDS 62.5 -2.75 basis points.
  • Bloomberg Emerging Markets Currency Index 67.74 +.07%.
  • FTSE 100 futures +.48%.
  • S&P 500 futures +.33%.
  • NASDAQ 100 futures +.45%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (AYI)/2.13
  • (STZ)/2.08
  • (LEN)/1.96
  • (SCHN)/.56
After the Close:
  • (BBBY)/.17
  • (KBH)/.94
  • (PSMT)/.73
  • (WDFC)/.95
Economic Releases
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -1,743,170 barrels versus a +7,000 barrel gain the prior week. Gasoline supplies are estimated to rise by +2,629,000 barrels versus a +6,890,000 barrel gain the prior week. Distillate inventories are estimated to rise by +1,230,270 barrels versus a +9,529,000 gain the prior week. Finally, Refinery Utilization is estimated to fall by -.64% versus a +2.1% gain prior.
2:00 pm EST
  • Dec. 19th FOMC meeting minutes.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The address to the nation by Pres. Trump, Eurozone Unemployment rate, US/EU trade talks, $24B 10Y T-Note auction, weekly MBA mortgage applications report and the CSFB China Tech/Internet conference could also impact trading today.
BOTTOM LINE:  Asian indices are higher, boosted by technology and industrial 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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