Wednesday, August 28, 2019

Thursday Watch

Evening Headlines
  • Asian Stocks Set for Muted Open; Dollar Gains. Asian stocks look set for a muted open Thursday as investors awaited new developments in the U.S. and China trade negotiations. The dollar strengthened to a nine-month high. Futures nudged higher in Tokyo and Hong Kong, and dipped in Sydney. U.S. futures edged lower after the S&P 500 Index climbed on below average volume as a rally in oil pushed energy shares higher. Ten-year Treasury yields held steady after hitting a three-year low. Currencies were little changed in Asia after Treasury Secretary Steven Mnuchin said the U.S. doesn’t intend to intervene on the dollar for now. The pound weakened and gilts climbed after U.K. Prime Minister Boris Johnson moved to suspend parliament, increasing the risk of a no-deal Brexit. Nikkei 225 futures rose 0.2% in Singapore. Australia’s S&P/ASX 200 Index futures fell 0.1%. Hang Seng Index futures added 0.1%. S&P 500 futures fell 0.1% as of 8:02 a.m. in Tokyo.   
Night Trading 
  • Asian equity indices are -.25% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 66.5 +.25 basis point.
  • China Sovereign CDS 48.5 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index  64.83 -.02%.
  • FTSE 100 futures -.34%.
  • S&P 500 futures -.22%.
  • NASDAQ 100 futures -.33%.
Morning Preview Links 

Earnings of Note 

Before the Open:
  • (ANF)/-.52
  • (BBY)/.99
  • (BURL)/1.14
  • (DG)/1.57
  • (DLTR)/.82
  • (MDP)/1.58
  • (PDCO)/.25
  • (SAFM)/3.07
  • (TECD)/2.31
  • (TITN)/.33
  • (TD)/1.80
After the Close:
  • ((COO)/2.70
  • (DELL)/1.49
  • (MRVL)/.15
  • (ULTA)/2.80
  • (WDAY)/.35
Economic Releases
8:30 am EST
  • 2Q GDP is estimated to rise +2.0% versus a prior estimate of a +2.1% gain.
  • Advance Goods Trade Balance for July is estimated at -$74.4B versus -$74.2B in June.
  • Retail Inventories MoM for July is estimated to rise +.3% versus a -.3% decline in June.
  • Preliminary Wholesale Inventories MoM for July is estimated to rise +.2% versus unch. in June.
  • Initial Jobless Claims for last week are estimated to rise to 214K versu s209K the prior week.
  • Continuing Claims are estimated to rise to 1687K versus 1674K prior.
10:00 am EST
  • Pending Home Sales MoM for July is estimated unch. versus a +2.8% gain in June.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone CPI/Unemployment Rate reports, $32B 7Y T-Note auction, weekly Bloomberg Consumer Comfort Index and the (CRM) investor meeting could also impact trading today.
BOTTOM LINE: Asian indices are slightly higher, boosted by commodity and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.

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