Monday, June 10, 2019

Tuesday Watch

Evening Headlines
  • Asian Stocks Set for Mixed Open After U.S. Gains. Asian stocks look set for a mixed start as investor focus turns to the U.S.-China trade arena, while Treasuries will open with yields off of their recent lows. Futures in Japan slipped, with contracts in Australia and Hong Kong showing modest gains. The S&P 500 Index rose for a fifth straight session, though closed below its highs of the day. President Donald Trump threatened to raise tariffs on China again if President Xi Jinping doesn’t meet with him at the Group of 20 summit at month-end. The yuan is trading near its lows of the year with little sign of progress on U.S.-China talks. Crude oil is trading above $53 a barrel in New York. Futures on the Nikkei 225 dipped in Singapore. Australia’s S&P/ASX 200 Index futures rose 0.3%. Hong Kong’s Hang Seng Index futures added 0.3%. S&P 500 futures were little changed in early Asia trading.  
Night Trading 
  • Asian equity indices are -.25% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 72.25 -1.75 basis points.
  • China Sovereign CDS 50.0 -5.0 basis points.
  • Bloomberg Emerging Markets Currency Index 66.66 -.02%.
  • S&P 500 futures -.06%.
  • NASDAQ 100 futures -.04%.
Morning Preview Links 

Earnings of Note 
Before the Open:
  • (CHS)/.03
  • (HRB)/4.15
  • (HDS)/.81
  • (JW/A)/1.03
After the Close:
  • (PLAY)/1.14
Economic Releases
6:00 am EST
  • The NFIB Small Business Optimism Index for May is estimated to fall to 102.0 versus 103.5 in April.
8:30 am EST
  • The PPI Final Demand MoM for May is estimated to rise +.1% versus a +.2% gain in April.
  • The PPI Ex Food and Energy MoM for May is estimated to rise +.2% versus a +.1% gain in April.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Japan inflation data report, $38B 3Y T-Note auction, weekly US retail sales reports, Morgan Stanley Financials Conference, Wells Fargo Energy Conference and the Goldman Sachs Healthcare Conference could also impact trading today.
BOTTOM LINE: Asian indices are slightly higher, boosted by commodity 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.

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