Wednesday, November 13, 2019

Thursday Watch

Evening Headlines
  • Stocks in Asia Trade Mixed; Treasuries Hold Gains. Stocks in Asia traded mixed Thursday ahead of a slew of Chinese economic data and after a lackluster session on Wall Street. Treasuries held gains. Benchmarks dipped in Tokyo and Hong Kong, where unrest continues to cloud the outlook. Shares edged higher Sydney and Seoul and opened flat in Shanghai. The S&P 500 closed flat below all-time highs, and futures were also marking time Thursday, getting little lift from President Donald Trump saying that U.S.-China trade talks are moving “very rapidly.” Australia’s dollar and bond yields retreated as the jobs market unexpectedly cooled. West Texas oil traded above $57 a barrel. Japan’s Topix index fell 0.3% as of 10:25 a.m. in Tokyo. Australia’s S&P/ASX 200 Index rose 0.5%. Hang Seng Index dropped 0.5%. The Shanghai Composite added 0.1%. Futures on the S&P 500 Index were little changed. The underlying index rose 0.1% on Wednesday. South Korea’s Kospi index added 0.3%.  
Night Trading 
  • Asian equity indices are -.25% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 65.25 +1.0 basis point.
  • China Sovereign CDS 39.5 +2.0 basis points.
  • Bloomberg Emerging Markets Currency Index  65.34 -.06%.
  • FTSE 100 futures +.15%.
  • S&P 500 futures +.06%.
  • NASDAQ 100 futures +.14%.
Morning Preview Links

Earnings of Note 

Before the Open:
  • (CGC)/-.36
  • (IGT)/.27
  • (SINA)/.72
  • (VIAB)/.77
  • (WMT)/1.09
  • (WB)/.73
After the Close:
  • (AMAT)/.76
  • (DDS)/-.12
  • (KLIC)/.12
  • (NVDA)/1.57
  • (WSM)/1.02
Economic Releases
8:30 am EST
  • PPI Final Demand MoM for Oct. is estimated to rise +.3% versus a -.3% decline in Sept.
  • PPI Ex Food and Energy MoM for Oct. is estimated to rise +.2% versus a -.3% decline in Sept. 
  • Initial Jobless Claims for last week are estimated to rise to 215K versus 211K the prior week.
  • Continuing Claims are estimated to fall to 1685K versus 1689K prior.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Powell testifying to House, Fed's Quarles speaking, Fed's Evans speaking, Fed's Williams speaking, Fed's Kaplan speaking, Eurozone GDP report, Mexico Central Bank decision, weekly EIA natural gas inventory report, weekly Bloomberg Consumer Comfort Index, Deutsche Bank Gaming/Lodging/Leisure/Restaurants Conference, JPMorgan Luxury Brands Conference, (KVHI) analyst day and the (TK) investor day 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 mixed and rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.

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