Thursday, July 18, 2019

Friday Watch

Evening Headlines
  • Dollar Gains With Yields as Fed Cuts Pondered. The dollar edged up with Treasury yields, giving back some earlier losses, after the New York Federal Reserve said its President, John Williams, wasn’t sending a specific policy signal with earlier commentary that fueled bets on a half-point interest rate cut this month. Asia stocks tracked an advance in U.S. shares. Japanese and Korean stocks rose, with modest gains in Australia. The S&P 500 earlier climbed and Microsoft Corp. rallied in after-hours trading after sales topped estimates. Fed Vice Chairman Richard Clarida and New York Fed chief John Williams stressed the need to act quickly if the U.S. economy looked likely to stumble during the U.S. session. Then a spokesman for Williams said he did not intend to suggest the central bank might make a large interest rate cut at the end of this month. Futures on the S&P 500 rose 0.1% as of 9:05 a.m. in Tokyo. The underlying gauge rose 0.4% Thursday. Japan’s Topix index added 0.5%. South Korea’s Kospi advanced 0.7%. Australia’s S&P/ASX 200 Index advanced 0.1%.
Zero Hedge:   
Night Trading 
  • Asian equity indices are +.50% to +1.0% on average.
  • Asia Ex-Japan Investment Grade CDS Index 64.25 -1.0 basis point.
  • China Sovereign CDS 42.75 -.75 basis point.
  • Bloomberg Emerging Markets Currency Index  67.96 -.02%.
  • S&P 500 futures +.28%.
  • NASDAQ 100 futures +.37%.
Morning Preview Links 

Earnings of Note 
Before the Open:
  • (AXP)/2.02
  • (ALV)/1.44
  • (BLK)/6.59
  • (CLF)/.52
  • (GNTX)/.40
  • (KSU)/1.61
  • (MAN)/2.00
  • (NVR)/44.87
  • (RF)/.39
  • (SLB)/.35
  • (STT)/1.40
After the Close:
  • None of note
Economic Releases
10:00 am EST
  • Preliminary Univ. of Mich. Consumer Sentiment for July is estimated to rise to 98.8 versus 98.2 in June.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Rosengren speaking, Fed's Bullard speaking and the Eurozone CPI report could also impact trading today.
BOTTOM LINE: Asian indices are higher, boosted by industrial and technology shares in the region. I expect US stocks to open modestly higher and to maintain gains into the afternoon. The Portfolio is 100% net long heading into the day.

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