Tuesday, August 27, 2019

Wednesday Watch

Evening Headlines
  • Asia Stocks Look Mixed on Trade; Treasuries Rise. Asian stocks looked set for a mixed session Wednesday as investors assessed the latest in the unpredictable path of trade talks between the U.S. and China. Treasuries rose. Futures slipped in Tokyo, were little changed in Seoul and pointed higher in Hong Kong. U.S. futures rose. U.S. equities finished lower after a seesaw session as it appeared that China was bracing for the worst on the negotiations with U.S. President Donald Trump’s credibility becoming a key impediment to a deal. The 10-year Treasury yield fell below 1.50% to a three-year low and the dollar was steady against major currencies. Crude extended gains on expectations of shrinking U.S. inventories. Nikkei 225 futures fell 0.1% in Singapore. Australia’s S&P/ASX 200 Index futures lost 0.2%. Hang Seng Index futures rose 0.4%. S&P 500 futures rose 0.2% as of 8:20 a.m. in Tokyo.  
Zero Hedge:  
Night Trading 
  • Asian equity indices are -.25% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 66.25 +1.0 basis point.
  • China Sovereign CDS 48.25 unch.
  • Bloomberg Emerging Markets Currency Index  64.98 -.02%.
  • FTSE 100 futures -.13%.
  • S&P 500 futures +.18%.
  • NASDAQ 100 futures +.26%.
Morning Preview Links 

Earnings of Note 

Before the Open:
  • (CHS)/.00
After the Close:
  • (FIVE)/.50
  • (GES)/.29
  • (HRB)/-.75
  • (NTNX)/-.56
  • (OKTA)/-.10
  • (OLLI)/.46
  • (PVH)/1.89
  • (SMTC)/.36
  • (SCVL)/.79
  • (WSM)/.83
Economic Releases
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,941,000 barrels versus a -2,732,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -137,640 barrels versus a +312,000 barrel gain the prior week. Distillate inventories are estimated to rise by +1,156,730 barrels versus a +2,610,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to fall by -.38% versus a +1.1% gain prior.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German GFK Confidence report, $441B 5Y T-Note auction and the weekly MBA Mortgage Applications report could also impact trading today.
BOTTOM LINE: Asian indices are mostly higher, boosted by technology and consumer shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.

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