Thursday, July 04, 2019

Friday Watch

Evening Headlines
  • Asia Stocks Set for Muted Start as Jobs Data Loom. Asian stocks looked set for a muted start to trading with no direction from their U.S. counterparts thanks to the American holiday. The dollar was flat as investors await the key U.S. jobs report Friday. Futures in Japan, Australia and Hong Kong were little changed, as were U.S. contracts. European shares drifted Thursday in a lackluster session marked by thin trading volumes. Core bonds in the region climbed, with German 10-year yields dipping below the European Central Bank’s deposit rate for the first time. Treasuries weren’t trading thanks to Independence Day. Gold slipped but stayed above $1,400. Oil futures fell, even amid further Middle East tensions, with the British seizure of an Iranian vessel. Nikkei 225 futures were little changed. S&P/ASX 200 futures were flat. Hang Seng futures were flat. Futures on the S&P 500 Index increased 0.1%.
Night Trading 
  • Asian equity indices are unch. to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 62.0 -.5 basis point.
  • China Sovereign CDS 40.75 -1.5 basis points.
  • Bloomberg Emerging Markets Currency Index  67.79 -.02%.
  • S&P 500 futures +.06%.
  • NASDAQ 100 futures +.18%.
Morning Preview Links 

Earnings of Note 
Before the Open:
  • None of note
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • The Change in Non-Farm Payrolls for June is estimated at 162K versus 75K in May.
  • The Unemployment Rate for June is estimated at 3.6% versus 3.6% in May.
  • Average Hourly Earnings MoM for June is estimated to rise +.3% versus a +.2% gain in May.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German Factory Orders report 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 strengthen into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.

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