Sunday, January 26, 2020

Monday Watch

Today's Headlines
  • Stock Futures, Oil Tumble; Yen Jumps on Virus Fear. Stock futures tumbled with crude oil and the yen jumped in early trading Monday as the impact of the deadly coronavirus escalated, with a rising death toll and the announcement of an unspecified extension to China’s lunar new year holiday. With no sign of the disease’s containment, traders rushed for havens and out of risk assets. Contracts on the S&P 500 Index fell more than 1% and Nikkei 225 futures dropped more than 1.5%. China’s yuan tumbled, and oil sank more than 2%. The moves come on a day with limited trading options in Asia, as markets are shut in locations including China, Hong Kong, South Korea and Australia, due to holidays. Treasury futures climbed. S&P 500 futures fell 1.1% as of 8:33 a.m. in Tokyo. The S&P 500 Index fell 0.9% Friday. Nikkei 225 futures fell 1.5% in Chicago. FTSE China A50 futures slid 1.9% earlier.
Wall Street Journal:
Zero Hedge: 
Night Trading
  • Asian indices are -2.0% to -1.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 53.75 +.25 basis point.
  • China Sovereign CDS 37.5 +1.0 basis point.
  • Bloomberg Emerging Markets Currency Index 65.99 -.02%.
  • FTSE 100 futures n/a.
  • S&P 500 futures -.9%.
  • NASDAQ 100 futures -1.3%.

Earnings of Note

Before the Open:
  • (DHI)/.91
  • (S)/-.04
After the Close:
  • (BRO)/.27
  • (FFIV)/2.42
  • (GGG)/.39
  • (JNPR)/.57
  • (PKI)/1.33
  • (RMBS)/.25
  • (SANM)/.70
  • (WHR)/4.27
Economic Releases
10:00 am EST
  • New Home Sales MoM for Dec. is estimated to rise to 731K versus 719K in Nov.
10:30 am EST
  • Dallas Fed Manufacturing Activity for Jan. is estimated to rise to -1.6 versus -3.2 in Dec.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German IFO Business Climate Index, $40B 2Y T-Note auction and the $41B 5Y T-Note auction could also impact trading today.
Market Hours
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are lower, weighed down by transportation and commodity shares in the region. I expect US stocks to open lower and to maintain losses into the afternoon.  The Portfolio is 25% net long heading into the week.

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