Wednesday, August 07, 2019

Thursday Watch

Evening Headlines
Bloomberg:
  • Stocks Mixed, Treasuries Gain Amid Ongoing Caution. Asian stocks traded mixed and Treasuries edged higher Thursday as investors assessed the implications of the latest central bank moves to bolster growth. Shares were little changed in Tokyo and fell in Sydney. South Korean stocks advanced amid signsof easing tensions with Japan. U.S. futures slipped back after the S&P 500 Index recovered from a decline of as much as 2% to eke out a modest gain Wednesday. Yields on 10-year Treasuries dropped in Asia after closing higher in New York. Oil rebounded on a report top producers were looking at ways to stem the recent slide in prices. The yen ticked higher. Japan’s Topix index dipped 0.1% as of 9:09 a.m. in Tokyo. Australia’s S&P/ASX 200 Index fell 0.8%. South Korea’s Kospi index rose 0.6%. Hang Seng Index futures were little changed. S&P 500 futures fell 0.2%.  
Night Trading 
  • Asian equity indices are -.25% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 68.25 +.25 basis point.
  • China Sovereign CDS 52.25 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index  66.11 +.03%.
  • FTSE 100 futures +.39%.
  • S&P 500 futures -.19%.
  • NASDAQ 100 futures -.17%.
Morning Preview Links 

Earnings of Note 
Company/Estimate

Before the Open:
  • (GOOS)/-.24
  • (CAH)/.95
  • (KHC)/.61
  • (MUR)/.17
  • (PRTY)/.36
  • (SUP)/-.12
  • (VIAB)/1.05
After the Close:
  • (ATVI)/.26
  • (CBS)/1.13
  • (ELY)/.26
  • (MTW)/.49
  • (NWSA)/.03
  • (SYMC)/.33
  • (TTD)/.68
  • (UBER)/-2.70
  • (YELP)/.40
Economic Releases
8:30 am EST
  • Initial Jobless Claims for last week are estimated at 215K versus 215K the prior week.
  • Continuing Claims are estimated to fall to 1690K versus 1699K prior.
10:00 am EST
  • Wholesale Trade Sales MoM for June is estimated to rise +.2% versus a +.1% gain in May.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Japan GDP report, China Trade Balance report, weekly EIA natural gas inventory report, $19B 30Y T-Bond auction, Bloomberg Aug. US Economic Survey, weekly Bloomberg Consumer Confidence report, (CATO)/(BKE) monthly sales updates and the (NUVA) investor day 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 mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 75% net long heading into the day.

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