Wednesday Watch

Evening Headlines

Bloomberg:   

• EU Set to Force U.K. Into Long Brexit Delay in Danger for Theresa May.  

• Europe Is Sinking the Global Economy While Juicing U.S. Stocks.

• Israel's Netanyahu Edges Toward Victory in Close-Fought Election.

• Stocks Drop as Growth Woes Resurface; Dollar Flat. Asian stocks declined Wednesday after renewed concern about a global economic slowdown and an escalation in trade tensions. Treasury yields steadied alongside the dollar. Shares in Japan bore the brunt of losses, with equities seeing modest declines in Seoul and Sydney. The S&P 500 Index fell for the first time in nine sessions as the Trump administration threatened tariffs on the European Union and the International Monetary. Fund cut its global growth outlook to the lowest since the financial crisis. Australian bonds climbed, tracking overnight moves that saw the 10-year Treasury yield fall to 2.50 percent. The pound fluctuated as the European Union looked set to force the U.K to delay Brexit for as long as a year. Japan’s Topix index lost 0.9 percent as of 9:02 a.m. in Tokyo. Hang Seng Index futures earlier declined 0.4 percent. South Korea’s Kospi slid 0.3 percent. Australia’s S&P/ASX 200 Index dropped 0.1 percent. The S&P 500 Index fell 0.6 percent. Futures were little changed.  

• Five Things You Need to Know to Start Your Day.  

• Trump Trade Warning, IMF Cuts Outlook, Aussie Wage Rage: Eco Day.

• Lori Loughlin, Ex-TPG Leader Among 16 Indicted in College Scandal.

• Hoisington Wades Into MMT Debate, Sounds Alarm on U.S. Borrowing.

Wall St. Journal:

• Barr Says Release of Mueller Report Can Come Within a Week.

• Socialism Fails Every Time.

• Languishing Wells Fargo Struggles to Boost Its Businesses.

• U.S. Requires Texas Tech Med School to End Use of Race in Admissions.

• Italy Warns of Bigger Budget Deficit.

• New World Bank Head Vows to Uphold Climate-Change Policies.

Fox News:

• Comey memos contained far more sensitive info than previously known, FBI filing shows.

• Elder Democrats reject open borders, defend assimilation.

CNBC:

• A new scam targets your direct deposit info and sends your paycheck to a criminal’s account.

• Investors may think the market is reaching a top, but I’m not buying it, Jim Cramer say.

• Charts show a double-digit rally could be in store for tech and oil stocks, Jim Cramer says.

Zero Hedge:

• Watch As A Flustered Steve Mnuchin Erupts At Maxine Waters In Chaotic Hearing.

• Leaked Google Memos Reveal Aggressive "News Blacklist" Used Against Conservative Sites.

• Barr Reviewing FBI Conduct During 2016 Election In Separate, Wide-Ranging Probe.

• California's Climate-Change-Driven-"Never-Ending Drought" Is Over.

• Oil Algos ConfusedAs Huge Gasoline Draw Trumps Crude Build.

• Exit Polls Show Netanyahu Expected To Win Unprecedented Fifth Term As Israeli Prime Minister.

• The Joys Of Socialism: Venezuelans Are Looting Corpses For Jewelry And Bones.

• IMF'd: Stocks Skid, Bonds & Bullion Bid As Lagarde Guts Global Growth Guesses.

Business Insider:

• JetBlue stock is soaring after a report that it seems to be gearing up to launch European flights.

• Donald Tusk asks the EU to approve a Brexit extension of up to a year.

• Democratic voters overwhelmingly think the accusations of Joe Biden's inappropriate touching are not disqualifying.

• Bernie Sanders announces a timeline for releasing his tax returns after weeks of delays, admits that he’s now a millionaire.

Night Trading 

• Asian equity indices are -.5% to -.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 67.75 +.75 basis point. 

• China Sovereign CDS 43.25 -.25 basis points.
  

• Bloomberg Emerging Markets Currency Index 67.52 unch.

• FTSE 100 futures -.05%.

• S&P 500 futures +.01%.

• NASDAQ 100 futures -.04%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (DAL)/.91

After the Close:

• (BBBY)/1.10

Economic Releases
8:30 am EST

• The CPI MoM for March is estimated to rise +.4% versus a +.2% gain in Feb.

• The CPI Ex Food and Energy MoM for March is estimated to rise +.2% versus a +.1% gain in Feb.

• Real Avg. Hourly Earnings YoY for March.

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory gain of +2,386,640 barrels versus a +7,238,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -2,188,090 barrels versus a -1,781,00 barrel decline the prior week. Distillate inventories are estimated to fall by -1,295,820 barrels versus a -1,998,ooo barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.93% versus a -.2% decline prior.
  

2:00 pm EST

• FOMC Meeting Minutes.

• The Monthly Budget Statement for March is estimated at -$181.0B versus -$234.0B in Feb.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Quarles speaking, ECB rate decision/press conference, UK Manufacturing/Trade Data reports, China Money Supply report, weekly MBA Mortgage Applications report, $24B 10Y T-Note auction, (FB)/(GOOGL)/(TWTR) testifying to Senate on censorship, (COST)/(ZUMZ) monthly sales reports and the (CRM) investor meeting could also impact trading today.

BOTTOM LINE:  Asian indices are modestly lower, weighed down by financial 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 75% net long heading into the day.