Monday, September 23, 2019

Tuesday Watch

Evening Headlines
  • Asia Stocks Set for Mixed Start; Treasuries Steady. Asian stocks are set for a muted open on Tuesday after U.S. shares ended flat on a mixed day for global economic data. Treasuries were steady. Futures edged lower in Japan and Australia, and rose in Hong Kong. U.S. contracts climbed in early Asia trading after the benchmark was little changed on below average volume Monday. Economic data was largely in line in the U.S. though far short of estimates in Germany and France, sending stocks in Europe down. American money-market interest rates held steady. Futures on the Nikkei 225 fell 0.5%. Australia’s S&P/ASX 200 Index futures were down 0.1%. Hong Kong’s Hang Seng Index futures rose 0.5%. S&P 500 futures rose 0.4% as of 8:04 a.m. in Tokyo.
Night Trading 
  • Asian equity indices are -.25% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 73.25 +2.75 basis points.
  • China Sovereign CDS 45.5 +1.0 basis point.
  • Bloomberg Emerging Markets Currency Index  65.53 +.01%.
  • FTSE 100 futures n/a.
  • S&P 500 futures +.38%.
  • NASDAQ 100 futures +.51%.
Morning Preview Links 

Earnings of Note 

Before the Open:
  • (AZO)/21.79
  • (BB)/-.01
  • (KMX)/1.33
  • (JBL)/.87
After the Close:
  • (CTAS)/2.15
  • (CMTL)/.17
  • (NKE)/.71
Economic Releases
9:00 am EST
  • The FHFA House Price Index MoM for July is estimated to rise +.3% versus a +.2% gain in June.
  • The CoreLogic CS 20-City MoM for July is estimated to rise +.1% versus a +.04% gain in June.
10:00 am EST
  • The Richmond Fed Manufacturing Index for Sept. is estimated at 1.0 versus 1.0 in August.
  • The Conference Board Consumer Confidence Index for Sept. is estimated to fall to 133.0 versus 135.1 in August.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The BoJ minutes, $40B 2Y T-Note auction, weekly US retail sales reports, BofA Merrill Financials/Banking/Insurance conference, Goldman ESports/Video Games conference,   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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