Thursday, August 29, 2019

Friday Watch

Evening Headlines
  • Stocks Climb on Trade Optimism; U.S. Yields Steady. Stocks in Asia tracked a U.S. rally after China indicated it wouldn’t immediately retaliate against the latest American tariff increase. Treasuries steadied. Shares in Tokyo, Sydney and Seoul advanced on the final trading day of a tumultuous month dominated by the trade war. Earlier, the S&P 500 Index rose for a second day after a spokesman for China’s commerce ministry said that escalating the conflict won’t benefit either side and that it was more important to discuss removing the extra duties. A gauge of the dollar remained near a two-year high. Futures on the S&P 500 Index dipped 0.1% as of 9:02 a.m. in Tokyo. The underlying gauge increased 1.3% on Thursday. Japan’s Topix index advanced 0.8%. South Korea’s Kospi added 1%. Australia’s S&P/ASX 200 Index rose 0.4%.  
Night Trading 
  • Asian equity indices are +.5% to +1.0% on average.
  • Asia Ex-Japan Investment Grade CDS Index 64.5 -2.0 basis points.
  • China Sovereign CDS 46.0 -2.5 basis points.
  • Bloomberg Emerging Markets Currency Index  64.87 +.01%.
  • FTSE 100 futures +.06%.
  • S&P 500 futures -.05%.
  • NASDAQ 100 futures -.08%.
Morning Preview Links 

Earnings of Note 

Before the Open:
  • (BIG)/.40
  • (CPB)/.41
  • (JKS)/.33
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • Personal Income for July is estimated to rise +.3% versus a +.4% gain in June.
  • Personal Spending for July is estimated to rise +.5% versus a +.3% gain in June.
  • The PCE Core MoM for July is estimated to rise +.2% versus a +.2% gain in June.
9:45 am EST
  • The MNI Chicago PMI for August is estimated to rise to 47.5 versus 44.4 in July.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone CPI report could also impact trading today.
BOTTOM LINE: Asian indices are higher, boosted by technology and industrial shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 75% net long heading into the day.

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