Thursday, September 19, 2019

Friday Watch

Evening Headlines
  • Stocks in Asia Edge Higher; Bond Yields Drift. Asia stocks opened with modest gains on reduced volumes after a lackluster session for U.S. shares. Treasuries remained on course for a first week of gains since August. Japanese shares edged higher, along with those in South Korea and Australia. The S&P 500 Index closed little changed, within 1% of a record, as gains in software companies offset losses for carmakers. After getting a boost from positive comments on trade by White House economic adviser Larry Kudlow early in the day, equities took a leg down after a report about a U.S. official threatening steeper tariffs against China. In China, all eyes will be on the Loan Prime Rate - a new gauge of borrowing costs. Futures on the S&P 500 were flat as of 9:05 a.m. in Tokyo. The index was little changed on Thursday. Japan’s Topix index advanced 0.3%. South Korea’s Kospi added 0.1%. Australia’s S&P/ASX 200 Index gained 0.1%.
Night Trading 
  • Asian equity indices are unch. to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 70.50 (new series).
  • China Sovereign CDS 38.25 unch.
  • Bloomberg Emerging Markets Currency Index  65.72 +.03%.
  • FTSE 100 futures -.44%.
  • S&P 500 futures +.06%.
  • NASDAQ 100 futures +.12%.
Morning Preview Links 

Earnings of Note 

Before the Open:
  • None of note
After the Close:
  • None of note
Economic Releases
12:00 pm EST
  • 2Q Household Change in Net Worth.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone PPI report could also impact trading today.
BOTTOM LINE: Asian indices are modestly higher, boosted by consumer 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 100% net long heading into the day.

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