Wednesday Watch

Night Trading 

• Asian equity indices are +.5% to +1.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 54.5 -1.5 basis points.

• China Sovereign CDS 36.0 -3.5 basis points.

• Bloomberg Emerging Markets Currency Index  65.49 -.13%.
• FTSE 100 futures -.26%.

• S&P 500 futures -.13%.

• NASDAQ 100 futures -.11%.

Morning Preview Links

Earnings of Note 

Company/Estimate

Before the Open:

• (ABB)/.23
• (BMI)/.42
• (BSX)/.44
• (CG)/.44
• (ENR)/.97
• (GM)/.01
• (HUM)/2.19
• (MRK)/1.15
• (BTU)/-.92 

After the Close:

• (UHAL/3.8
• (AVB)/2.41
• (CTS)/1.04
• (COHR)/.77
• (FEYE)/.04
• (FLO)/.18
• (CTSH)/1.04
• (COHR)/.77
• (FOXA)/-.01
• (IAC)/1.88
• (IRBT)/.52
• (MET)/1.38
• (ORLY)/4.27
• (PTON)/-.31
• (QCOM)/.86
• (SAVE)/1.20
• (TWLO)/.01
• (WERN)/.60
• (YUMC)/.17
• (ZNGA)/.06

Economic Releases 

8:15 am EST

• The ADP Employment Change report for Jan. is estimated to fall to 158K versus 202K in Dec.

8:30 am EST

• The Trade Balance for Dec. is estimated at -$48.2B versus -$43.1B in Nov.

10:00 am EST

• The ISM Non-Manufacturing Index for Jan. is estimated to rise to 55.1 versus 55.0 in Dec.
  

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory gain of +2,837,910 barrels versus a +3,548,000 barrel gain the prior week. Gasoline supplies are estimated to rise by +1,736,300 barrels versus a +1,203,000 barrel gain the prior week. Distillate inventories are estimated to fall by -243,900 barrels versus a -1,289,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.1% versus a -3.3% decline prior.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Eurozone Services PMI report, weekly MBA Mortgage Applications report, (M) investor day and the (COST) Jan. sales results could also impact trading today.

Market Hours

Normal:

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are modestly higher, boosted by technology and industrial shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 75% net long heading into the day.