Monday, July 08, 2019

Tuesday Watch

Evening Headlines
  • Asia Stocks See Mixed Start; Yen Near 4-Week Low. Asian stocks saw a muted start to trading Tuesday after their U.S. counterparts slipped overnight. The yen held near a four-week low. Stocks in Japan and South Korea clawed back some of Monday’s losses while Australian shares drifted. Earlier, U.S. equities fell for a second day as investors took a cautious approach in a week full of central bank activity. Treasury yields ticked lower while the dollar was flat. S&P 500 futures were little changed. Trading may continue to be muted ahead of key testimony this week from Federal Reserve Chairman Jerome Powell, as investors assess prospects for monetary easing following some conflicting signals on the U.S. economy. Topix Index rose 0.4% as of 9:05 am in Tokyo. Kospi Index climbed 0.3%. S&P/ASX 200 was flat. S&P 500 futures fell 0.1%.
Night Trading 
  • Asian equity indices are . to +.% on average.
  • Asia Ex-Japan Investment Grade CDS Index 62.0 -. basis point.
  • China Sovereign CDS 40.75 - basis points.
  • Bloomberg Emerging Markets Currency Index  67.79 -.%.
  • S&P 500 futures +.%.
  • NASDAQ 100 futures +.%.
Morning Preview Links 

Earnings of Note 
Before the Open:
  • (LNN)/.76
  • (PEP)/1.51
After the Close:
  • (HELE)/1.69
  • (WDFC)/1.22
Economic Releases
6:00 am EST
  • The NFIB Small Business Optimism Index for June is estimated to fall to 103.1 versus 105.0 in May.
10:00 am EST
  • JOLTS Job Openings for May are estimated to fall to 7473 versus 7449 in April.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Powell speaking, Fed's Bostick speaking, Fed's Quarles speaking, Fed's Bullard speaking, China money supply report, $38B 3Y T-Note auction and the weekly US retail sales reports could also impact trading today.
BOTTOM LINE: Asian indices are modestly lower, weighed down by commodity and financial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing modestly higher. The Portfolio is 75% net long heading into the day.

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