Monday, May 20, 2019

Tuesday Watch

Evening Headlines
  • Asia Stocks Drop as U.S.-China Tech Tensions Rise. Asian stocks opened to modest losses Tuesday as investors digested moves by the U.S. against Huawei Technologies Co. that sank U.S. technology shares overnight. The yuan continued to trade near a six-month low. Stocks dipped in Tokyo and Sydney, and were little changed in early trading in Seoul. Futures pointed to losses in Hong Kong and China. Companies crucial to the global supply chain will be closely watched after the White House blacklisted China’s top telecom company. S&P 500 Index futures edged up after the benchmark dropped Monday, with semiconductor stocks among the biggest laggards. Ten-year Treasury yields rose before a slew of U.S. data and minutes on the Federal Reserve’s most recent policy meeting in coming days. Japan’s Topix index fell 0.5% as of 9:14 a.m. in Tokyo. Australia’s S&P/ASX 200 Index fell 0.4%. South Korea’s Kospi index added 0.2%. FTSE China A50 futures dropped 0.8% earlier. Hong Kong’s Hang Seng Index futures lost 0.6% overnight. S&P 500 futures rose 0.2%.  
Night Trading 
  • Asian equity indices are -.25% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 71.50 +.5 basis point.
  • China Sovereign CDS 49.25 unch.
  • Bloomberg Emerging Markets Currency Index 65.74 -.02%.
  • S&P 500 futures +.28%.
  • NASDAQ 100 futures +.44%.
Morning Preview Links 

Earnings of Note 
Before the Open:
  • (AZO)/15.09
  • (CBRL)/2.10
  • (EV)/.76
  • (HD)/2.19
  • (JCP)/-.39
  • (KSS)/.67
  • (TJX)/.55
  • (MNRO)/.51
After the Close:
  • (CRMT)/1.82
  • (JWN)/.43
  • (TOL)/.75
  • (URBN)/.25
Economic Releases
10:00 am EST
  • Existing Home Sales for April are estimated to rise to 5.35M versus 5.21M in March.
Upcoming Splits
  • (FAST) 2-for-1
Other Potential Market Movers
  • The Eurozone Consumer Confidence report, Japan Trade Balance report, weekly US retail sales reports, RBC Healthcare Conference, Suntrust Robinson Humphrey Internet/Digital Media Conference, Credit Suisse Mortgage REIT Conference, Suntrust Robinson Humphrey Financial Services Conference, Wolfe Research Transport Conference and the Needham Emerging Tech Conference 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 modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.

No comments: