Wednesday, March 06, 2019

Thursday Watch

Evening Headlines
Bloomberg:  
  • Asia Stocks Head for Muted Start; Dollar Climbs. Asian stocks were poised for a cautious start Thursday as global growth concerns resurfaced and U.S. equities dropped. The dollar rose for a sixth day. Futures on Japanese and Australian equities were little changed, while contracts on Hong Kong’s Hang Seng edged lower. The S&P 500 fell for a third day after reports showed the U.S. trade deficit widened in 2018 to a 10-year high and private companies added fewer employees than analysts forecast last month. Commodities were led lower by oil after a bigger-than-expected buildup in U.S. crude stockpiles. Treasuries and the yen climbed as investors sought out defensive assets. Futures on Japan’s Nikkei 225 and on Australia’s S&P/ASX 200 Index were flat. Hang Seng futures earlier slid 0.1 percent.
Wall St. Journal:
Zero Hedge:
Telegraph:
Night Trading 
  • Asian equity indices are -.5% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 67.50 +.5 basis point
  • China Sovereign CDS 47.5 +1.75 basis points.
  • Bloomberg Emerging Markets Currency Index 67.75 +.01%.
  • FTSE 100 futures -.38%.
  • S&P 500 futures -.15%.
  • NASDAQ 100 futures -.15%.
Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:
  • (BKS)/1.07
  • (BURL)/2.77
  • (HRB)/-.55
  • (HOV)/-.10
  • (IGT)/.37
  • (KR)/.52
  • (SSYS)/.20
  • (SUP)/-.22
  • (TECD)/4.03
After the Close:
  • (COST)/1.69
  • (LOCO)/.14
  • (MRVL)/.26
  • (OKTA)/-.08
Economic Releases
7:30 am EST
  • Challenger Job Cuts YoY for Feb.
8:30 pm EST
  • Initial Jobless Claims for last week are estimated at 225K versus 225K the prior week.
  • Continuing Claims are estimated to fall to 1774K versus 1805K prior. 
  • 4Q Non-Farm Productivity is estimated to fall to 1.5% versus 2.3% in 3Q.
  • 4Q Unit Labor Costs is estimated to fall to 1.7% versus .9% in 3Q. 
12:00 pm EST
  • 4Q Household Change in Net Worth.
3:00 pm EST
  • Consumer Credit for Jan. is estimated at $17.0B versus $16.554B in Dec.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Brainard speaking, ECB rate decision/press conference, Eurozone GDP report, Japan GDP report, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report, BofA Merrill Refining Conference, (LB) sales release, (BKE) sales release and the (CATO) sales release could also impact trading today.
BOTTOM LINE:  Asian indices are mostly lower, weighed down by technology and industrial shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 25% net long heading into the day.

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