Tuesday, August 13, 2019

Wednesday Watch

Evening Headlines
  • Stocks to Rally in Asia on Tariff-Delay Relief. Asian stocks were primed to rally after the Trump administration de-escalated its trade war with China, providing relief to risk assets that had been under pressure earlier in the week. Treasuries retreated. Japanese futures were more than 2% higher after the S&P 500 Index had its biggest intraday gain in more than two months. Washington said it was delaying until mid-December the 10% tariff on some Chinese-made products that are high on many holiday-shopping lists such as phones, laptops and toys. A stronger-than-expected CPI data and easing in trade tensions sent 10-year yields higher. The dollar strengthened. The S&P 500 Index rose 1.5% on Tuesday. Futures were little changed. Futures on Japan’s Nikkei 225 climbed 2.2%. Hang Seng Index futures earlier advanced 1.6%. Futures on Australia’s S&P/ASX 200 Index added 0.7%.   
Night Trading 
  • Asian equity indices are +.75% to +1.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 68.25 -1.75 basis points.
  • China Sovereign CDS 50.25 -3.25 basis points.
  • Bloomberg Emerging Markets Currency Index  66.12 +.01%.
  • FTSE 100 futures +.19%.
  • S&P 500 futures -.13%.
  • NASDAQ 100 futures -.11%.
Morning Preview Links 

Earnings of Note 

Before the Open:
  • (GOOS)/-.24
  • (LK)/-.45
  • (M)/.45
After the Close:
  • (A)/.72
  • (CACI)/2.17
  • (CGC)/-.41
  • (CSCO)/.82
  • (NTAP)/.58
  • (VIPS)/1.04
Economic Releases
8:30 am EST
  • The Import Price Index MoM for July is estimated to fall -.1% versus a -.9% decline in June.
  • The Import Price Index ex Petrol MoM for July is estimated to fall -.1% versus a -.4% decline in June. 
  • The Export Price Index MoM for July is estimated to fall -.1% versus a -.7% decline in June.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China Retail Sales/Industrial Production reports, Eurozone Industrial Production/GDP reports,  weekly MBA Mortgage Applications report and the (IDXX) investor day could also impact trading today.
BOTTOM LINE: Asian indices are 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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