Monday, February 10, 2020

Tuesday Watch

Evening Headlines
  • Asian Stocks Open Firmer as Virus Fears Linger. Asian equities opened higher Tuesday after U.S. stocks hit a record high as investors looked past the potential economic impact of the spreading coronavirus. Shares in Sydney and Seoul were higher. Futures pointed to gains in Hong Kong. Japanese financial markets are shut for a holiday. U.S. equity futures were little changed after the S&P 500 Index climbed to a new high Monday, with most sectors advancing. The Chinese yuan traded offshore maintained gains, while the yen was little changed. The S&P/ASX 200 Index rose 0.7%. South Korea’s Kospi index added 0.7%. Contracts on Hong Kong’s Hang Seng Index rose 0.1% earlier. FTSE China A50 futures gained 0.5%. S&P 500 futures were little changed.  
Night Trading 
  • Asian equity indices are .25% to +1.0% on average.
  • Asia Ex-Japan Investment Grade CDS Index 50.75 -2.75 basis points.
  • China Sovereign CDS 36.0 -.75 basis point.
  • Bloomberg Emerging Markets Currency Index  64.96 +.08%.
  • FTSE 100 futures +.59%.
  • S&P 500 futures +.28%.
  • NASDAQ 100 futures +.44%.
Morning Preview Links

Earnings of Note 
Before the Open:
  • (DBD)/.49
  • (D)/1.15
  • (GT)/.53
  • (HAS)/.92
  • (HLT)/.96
  • (JLL)/5.89
  • (LPX)/.12
  • (MLM)/2.23
  • (SEE)/.75
  • (UAA)/.10
After the Close:
  • (AKAM)/1.13
  • (LSCC)/.15
  • (LYFT)/-.53
  • (NCR)/.84
Economic Releases 
6:00 am EST
  • The NFIB Small Business Optimism report for Jan. is estimated to rise to 103.5 versus 102.7 in Dec.
10:00 am EST
  • The JOLTS Job Openings report for Dec. is estimated to rise to 6925 versus 6800 in Nov.
  • MBA 4Q Mortgage Delinquencies/Foreclosures reports.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Powell testimony to Congress, Fed's Quarles speaking, Democratic NH Primary, UK GDP report, UK Industrial Production report, US weekly retail sales reports, Goldman Tech/Internet Conference, Stifel Transport/Logistics Conference, (V) investor day could also impact trading today.
Market Hours
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are mostly higher, boosted by technology and commodity shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

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