Sunday, February 23, 2020

Monday Watch

Today's Headlines
  • Stocks Slide as Virus Case Rise Heightens Concern. U.S. equity futures sank with Asian shares and gold surged after the number of coronavirus cases outside of China increased and concern grew that global economic growth could take a more sustained hit. Seoul and Sydney saw the brunt of losses, down more than 2%, with declines more muted in Hong Kong and Shanghai. Weakness in S&P 500 Index and Euro Stoxx 50 futures also reflected the caution from traders to news over the weekend that finance chiefs and central bankers from the world’s largest economies see downside risks to the global economy persisting. The Australian dollar chalked up a fresh 11-year low and the offshore yuan extended its recent slide. Crude oil tumbled almost 3%. Japan is shut for a holiday. Futures on the S&P 500 slid 1.2% as of 9:25 a.m. in Hong Kong. The underlying gauge fell 1.1% on Friday. South Korea’s Kospi index dropped 2.6%. Australia’s S&P/ASX 200 Index declined 2.1%. Hong Kong’s Hang Seng Index declined 1%. The Shanghai Composite Index lost 0.4%. Euro Stoxx 50 futures retreated 1.4%.  
Wall Street Journal:
Zero Hedge:   
John Hopkins University:
Night Trading
  • Asian indices are -2.25% to -1.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 50.75 +3.0 basis points.
  • China Sovereign CDS 36.75 +2.0 basis points.
  • Bloomberg Emerging Markets Currency Index 64.39 -.09%.
  • FTSE 100 futures -1.03%.
  • S&P 500 futures -1.23%.
  • NASDAQ 100 futures -1.64%.

Earnings of Note

Before the Open:
  • (AWI)/.86
  • (CRI)/2.89
  • (CTB)/.67
  • (DDS)/2.85
After the Close:
  • (HTZ)/-.27
  • (HPQ)/.54
  • (INTU)/1.02
  • (ITRI)/.55
  • (GH)/-.30
  • (PANW)/1.12
  • (RCII)/.57
  • (SHAK)/-.01
  • (THC)/.98
  • (TREX)/.51
Economic Releases
8:30 am EST
  • The Chicago Fed National Activity Index for Jan. is estimated to rise to -.16 versus -.35 in Dec.
10:30 am EST
  • The Dallas Fed Manufacturing Activity Index for Feb. is estimated to rise to 0.0 versus -.2 in Jan.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German IFO Business Climate Index, JMP Securities Tech Conference, JPMorgan High Yield Conference, Citi Asset Mangers/Broker Dealers Conference, Wolfe Research Auto/Auto Tech Conference, BofA Merrill Animal Health Conference and the Mobile World Congress could also impact trading today.
Market Hours
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are sharply lower, weighed down by technology 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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