Thursday, January 23, 2020

Friday Watch

Evening Headlines
  • Asian Stocks Edge Higher; Treasuries, Yen Dip: Markets Wrap. Asian stocks edged higher as investors mulled updates on the deadly coronavirus outbreak. Treasuries and the yen dipped, while oil steadied after its recent slide. Shares saw modest gains in Japan and Australia. U.S. stock futures were steady after the S&P 500 eked out a small advance helped by gains for big tech companies. As officials in China widened their travel ban beyond the epicenter of the outbreak, the World Health Organization stopped short of calling the virus a global health emergency, saying it remains a local crisis. The yuan edged up and the yen pared some of Thursday’s rise. Markets in mainland China and South Korea are shut, and Hong Kong closes early, for lunar new year holidays. Futures on the S&P 500 Index added 0.1% as of 9:07 a.m. in Tokyo. The underlying gauge rose 0.1% on Thursday. Japan’s Topix index added 0.1%. Australia’s S&P/ASX 200 Index gained 0.3%.   
Night Trading 
  • Asian equity indices are unch. to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 53.5 +.75 basis point.
  • China Sovereign CDS 36.5  +2.0 basis points.
  • Bloomberg Emerging Markets Currency Index  66.10 +.02%.
  • FTSE 100 futures n/a.
  • S&P 500 futures +.11%.
  • NASDAQ 100 futures +.21%.
Morning Preview Links

Earnings of Note 
Before the Open:
  • (APD)/2.08
  • (AXP)/2.01 
After the Close:
  • None of note
Economic Releases 
9:45 am EST
  • The Markit US Services PMI report for Jan. is estimated to rise to 53.0 versus 52.8 in Dec.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone Services report could also impact trading today.
Market Hours
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are modestly higher, boosted by technology and consumer 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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