Tuesday, August 06, 2019

Wednesday Watch

Evening Headlines
  • Asia Stocks Mixed, U.S. Futures Dip Amid Caution. Stocks in Asia opened mixed despite U.S. shares clawing back some of Monday’s rout, with traders remaining cautious in the face of deepening trade tensions. American equity futures dropped and Treasury yields steadied. Japanese shares saw modest declines, while Korean equities edged higher. S&P 500 Index futures were down 0.3% after a surge in the gauge on Tuesday went some way to easing the slump in the previous session. The daily yuan fixing will be in focus after China’s move to stabilize its currency fueled speculation cooler heads will prevent a full-blown trade war. Assets in India, New Zealand and Thailand will be in focus with monetary policy decisions due in all three countries Wednesday. Japan’s Topix index dropped 0.2% as of 9:03 a.m. in Tokyo. Futures on the S&P 500 Index fell 0.3%. The underlying gauge rose 1.3% on Tuesday. Australia’s S&P/ASX 200 Index declined 0.1%. South Korea’s Kospi index rose 0.5%.
Night Trading 
  • Asian equity indices are -.5% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 68.0 -3.75 basis points.
  • China Sovereign CDS 52.0 -4.25 basis points.
  • Bloomberg Emerging Markets Currency Index  66.20 +.04%.
  • FTSE 100 futures -.03%.
  • S&P 500 futures -.39%.
  • NASDAQ 100 futures -.41%.
Morning Preview Links 

Earnings of Note 

Before the Open:
  • (CVS)/1.69
  • (LAMR)/1.14
  • (LL)/.10
  • (ODP)/.05
  • (SINA)/.58
  • (WB)/.60
  • (WEN)/.17
  • (WWW)/.51
After the Close:
  • (ALB)/1.44
  • (UHAL)/7.61
  • (AIG)/1.16
  • (CECO)/.29
  • (CVNA)/-.43
  • (FLO)/.25
  • (FOSL)/-.05
  • (TWNK)/.15
  • (IAC)/1.73
  • (JACK)/1.00
  • (LYFT)/-1.00
  • (CLI)/.40
  • (MRO)/.14
  • (MELI)/.33
  • (MNST)/.56
  • (NTES)/2.74
  • (PAAS)/.04
  • (PETQ)/.35
  • (RCII)/.57
  • (ROKU)/-.20
  • (RGLD)/.46
  • (SFLY)/-.21
  • (SWKS)/1.34
  • (STMP)/.96
  • (ZG)/-.15
Economic Releases
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,933,900 barrels versus a -8,496,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -1,369,780 barrels versus a -1,791,000 barrel decline the prior week. Distillate inventories are estimated to fall by -166,330 barrels versus a -894,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.48% versus a -.1% decline prior.
3:00 pm EST
  • Consumer Credit for June is estimated to fall to $16.1B versus $17.086B in May.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone Industrial Production report, $27B 10Y T-Note auction, weekly MBA Mortgage Applications report and the (COST) monthly sales update could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by industrial and financial 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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