Thursday, August 08, 2019

Friday Watch

Evening Headlines
  • U.S. Stock Futures Fall as Trade Frictions Return. U.S. equity futures fell and the yen climbed as trade tensions resurfaced, dampening positive sentiment from a strong Wall Street session Thursday. Treasury futures and gold climbed. Contracts on the S&P 500 fell 0.6% as Bloomberg reported the White House is holding off on a decision about licenses for U.S. companies to restart business with Huawei Technologies Co. after Beijing said it was halting purchases of U.S. farming goods. Asian futures had pointed higher after an almost 2% gain in the S&P 500 earlier. Investors have taken solace from efforts to stabilize the yuan and Friday’s fixing of the currency will be closely scrutinized. Treasuries remain volatile -- with the 10-year yield swinging nine basis points Thursday and closing at 1.72%. Futures on the S&P 500 Index lost 0.6% as of 8:08 a.m. in Tokyo. The underlying gauge increased 1.9% on Thursday. Futures on Japan’s Nikkei 225 gained 0.8%. Hang Seng futures earlier rose 0.5%.  
Night Trading 
  • Asian equity indices are unch. to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 66.75 -1.5 basis points.
  • China Sovereign CDS 51.0 -1.25 basis points.
  • Bloomberg Emerging Markets Currency Index  66.43 -.01%.
  • FTSE 100 futures +.17%.
  • S&P 500 futures -.40%.
  • NASDAQ 100 futures -.50%.
Morning Preview Links 

Earnings of Note 

Before the Open:
  • (YRCW)/.11
  • (TRCO)/.71
  • (SSP)/-.06
After the Close:
  • (TDW)/-.17
Economic Releases
8:30 am EST
  • The PPI Final Demand MoM for July is estimated to rise +.2% versus a +.1% gain in June.
  • PPI Ex Food and Energy MoM for July is estimated to rise +.1% versus a +.3% gain in June.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China Inflation Data report and the UK Industrial Production report could also impact trading today.
BOTTOM LINE: Asian indices are mostly higher, boosted by industrial and technology 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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