Tuesday, July 09, 2019

Wednesday Watch

Evening Headlines
  • Asian Stocks Set for Mixed Trading Ahead of Powell. Stocks in Asia looked set to trade mixed after U.S. equities made little headway and investors awaited clues on policy from Federal Reserve Chair Jerome Powell. The dollar strengthened to its highest since mid-June and Treasuries slipped. Futures in Japan pointed to a flat start, while contracts rose in Hong Kong and Australia. The S&P 500 Index edged higher as technology shares climbed. The yield on 10-year Treasuries nudged up to 2.06%. The Mexican peso dropped after that country’s finance minister quit. Futures on the S&P 500 Index were flat as of 7:47 a.m. in Tokyo. The underlying gauge gained 0.1% Tuesday. Futures on Japan’s Nikkei 225 were little changed in Singapore. Hang Seng futures earlier added 0.5%. Futures on Australia’s S&P/ASX 200 Index advanced 0.5%.  
Night Trading 
  • Asian equity indices are -.25% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 64.50 +2.5 basis points.
  • China Sovereign CDS 42.5 +1.75 basis points.
  • Bloomberg Emerging Markets Currency Index  67.25 unch.
  • S&P 500 futures +.08%.
  • NASDAQ 100 futures +.13%.
Morning Preview Links 

Earnings of Note 
Before the Open:
  • (ANGO)/.26
  • (KHC)/.61
  • (MSM)/1.49
After the Close:
  • (AIR)/.63
  • (BBBY)/.08
  • (PSMT)/.50
Economic Releases 
10:00 am EST
  • Wholesale Trade Sales MoM for May is estimated to rise +.3% versus a -.4% decline in April.
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -1,692,170 barrels versus a -1,085,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -1,825,270 barrels versus a -1,583,000 barrel decline the prior week. Distillate inventories are estimated to rise by +641,180 barrels versus a +1,408,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to fall by -.06% versus unch. prior.
2:00 pm EST
  • FOMC June 19 Meeting Minutes.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Powell testimony to Congress, Fed's Bullard speaking, China CPI report, UK industrial production report, $24B 10Y T-Note auction, weekly MBA Mortgage Applications report, (WYNN) investor day and the (COST) June sales results could also impact trading today.
BOTTOM LINE: Asian indices are mostly higher, boosted by commodity and technology shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.

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