Thursday, June 13, 2019

Friday Watch

Evening Headlines
  • Asia Stocks Head for Mixed Start; Yields Retreat. Stocks in Asia faced a muted start Friday after U.S. equities eked out gains and the global bond rally extended. Oil steadied following an escalation in Middle East tensions. Futures pointed to modest gains for shares in Tokyo and Sydney, while Hong Kong contracts dipped. The S&P 500 Index reached a five-week high as a surprise increase in U.S. jobless claims supported the idea the Federal Reserve may cut rates, with the yield on 10-year Treasuries falling to 2.09%. The surge eased for oil after two tankers were damaged in suspected attacks near the Persian Gulf. The U.S. blamed Iran. The dollar was flat, remaining in a tight range. Futures on Japan’s Nikkei 225 rose 0.3% in Singapore. Hang Seng futures slipped 0.2%. Futures on Australia’s S&P/ASX 200 Index added 0.1%. Futures on the S&P 500 Index were flat.  
Night Trading 
  • Asian equity indices are -.5% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 72.75 +.5 basis point.
  • China Sovereign CDS 50.75 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 66.57 -.01%.
  • S&P 500 futures -.05%.
  • NASDAQ 100 futures -.29%.
Morning Preview Links 

Earnings of Note 
Before the Open:
  • None of note
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • Retail Sales Advance MoM for May is estimated to rise +.6% versus a -.2% decline in April.
  • Retail Sales Ex Autos MoM for May is estimated to rise +.4% versus a +.1% gain in April.
  • Retail Sales Ex Autos and Gas for May is estimated to rise +.4% versus a -.2% decline in April.
9:15 am EST
  • Industrial Production MoM for May is estimated to rise +.2% versus a -.5% decline in April.
  • Capacity Utilization for May is estimated to rise to 78.0% versus 77.9% in April.
10:00 am EST
  • Preliminary Univ. of Mich. Consumer Confidence for June is estimated to fall to 98.0 versus 100.0 in May.
  • Business Inventories for April is estimated to rise +.5% versus unch. in March.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China Retail Sales/Industrial Production reports, Eurozone Trade Data report, (GLW) investor day and the (CNC) investor day could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by financial and technology shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.

No comments: