Thursday, September 26, 2019

Friday Watch

Evening Headlines
  • Asia Stocks Start Mixed; Treasuries Hold Gains. Stocks in Asia opened mixed after a dip in U.S. equities, with investors assessing the latest on trade and American politics. Treasuries held gains. Shares in Tokyo and Seoul fell, while Australian equities gained. The S&P 500 ended modestly lower after the release of a whistle-blower complaint central to the latest political drama and reports that the U.S. is unlikely to extend a waiver allowing American firms to supply China’s Huawei Technologies. Ten-year Treasury yields traded just under 1.7%. Meantime, in a surprise move, FTSE Russell opted not to add Chinese bonds into its flagship World Government Bond Index. Futures on the S&P 500 Index were flat. The underlying gauge lost 0.2% Thursday. Japan’s Topix index lost 0.8% as of 9:13 a.m. in Tokyo. South Korea’s Kospi slid 0.6%. Australia’s S&P/ASX 200 Index rose 0.5%.  
Night Trading 
  • Asian equity indices are -.5% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 76.25 +.5 basis point.
  • China Sovereign CDS 47.75 +.5 basis point.
  • Bloomberg Emerging Markets Currency Index  65.30 -.03%.
  • FTSE 100 futures +.14%.
  • S&P 500 futures -.18%.
  • NASDAQ 100 futures -.28%.
Morning Preview Links 

Earnings of Note 

Before the Open:
  • None of note
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • Personal Income for August is estimated to rise +.4% versus a +.1% gain in July.
  • Personal Spending for August is estimated to rise +.3% versus a +.6% gain in July.
  • The PCE Core MoM for August is estimated to rise +.2% versus a +.2% gain in July.
  • Durable Goods Orders for Aug. are estimated to fall -1.1% versus a +2.0% gain in July.
  • Durables Ex Transports for Aug. are estimated to rise +.2% versus a -.4% decline in July.
  • Cap Goods Orders Non-Defense Ex-Air for August are estimated to rise +.3% versus a -.6% decline in July.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Vice Chair for Supervision Randal Quarles speaking and the Eurozone Business Confidence Index could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and consumer shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

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