Thursday, November 21, 2019

Friday Watch

Evening Headlines
  • Stocks in Asia Edge Up as Trade Outcome Mulled. Asia stocks saw modest gains Friday amid muted volumes, as investors awaited further details on U.S.-China trade discussions. Treasuries held Thursday’s losses. Japanese shares recovered after three days of declines, though volumes were down about a fifth. Stocks climbed in Hong Kong, South Korea, Australia and China. U.S. futures were flat. Earlier, the S&P 500 Index fell for a third day but remained within 1% of a record high. The yield on 10-year Treasuries edged up while the dollar held firm. Japan’s Topix index rose 0.4% as of 10:25 a.m. in Tokyo. Hong Kong’s Hang Seng added 0.4%. The Shanghai Composite rose 0.1%. Futures on the S&P 500 Index were little changed. The underlying gauge fell 0.2% on Thursday. Australia’s S&P/ASX 200 Index added 0.5%. South Korea’s Kospi index rose 0.2%.      
Night Trading 
  • Asian equity indices are -.25% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 65.25 -.75 basis point.
  • China Sovereign CDS 39.5 -2.25 basis points.
  • Bloomberg Emerging Markets Currency Index  65.60 +.02%.
  • FTSE 100 futures +.34%.
  • S&P 500 futures +.14%.
  • NASDAQ 100 futures +.27%.
Morning Preview Links

Earnings of Note 

Before the Open:
  • (BKE)/.43
  • (FL)/1.08
  • (HIBB)/.15
  • (SJM)/2.14
After the Close:
  • None of note
Economic Releases
9:45 am EST
  • The Preliminary Markit Services PMI for Nov. is estimated to rise to 51.0 versus 50.6 in Oct.
  • The Preliminary Markit Manufacturing PMI for Nov. is estimated to rise to 51.4 versus 51.3 in Oct.
11:00 am EST
  • The Kansas City Fed Manufacturing Activity Index for Nov. is estimated to rise to -2 versus -3 in Oct.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone GDP report and the LA auto show could also impact trading today.
BOTTOM LINE: Asian indices are mostly higher, boosted down by technology and industrial 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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