Tuesday, March 24, 2020

Wednesday Watch

Evening Headlines
Bloomberg:        
  • Stock Rebound Heads to Asia After Wall St. Surge: Markets Wrap. Stocks in Asia rallied after the best session for U.S. stocks in almost a dozen years, with investors rediscovering some appetite for risk as Congress negotiates an emergency-spending bill. U.S. equity futures declined, showing a reluctance to build on Tuesday’s gains. Japan equities opened about 3% higher, while Australian and South Korean shares bounced about 5%, with Asia-Pacific stocks heading for a second day of gains. S&P 500 futures retreated after the index soared more than 9% -- the biggest one-day gain since October 2008. The dollar added to declines against developed and emerging currencies alike, in a tentative sign of reduced stress after the greenback’s recent surge. Treasuries opened flat. Japan’s Topix index rose 3% as of 9:01 a.m. in Tokyo. S&P 500 futures fell 0.7%. The S&P 500 advanced 9.4% on Tuesday. South Korea’s Kospi index gained 5%. Australia’s S&P/ASX 200 Index advanced 4.6%.
Wall Street Journal:    
CNBC.com:
Business Insider: 
John Hopkins University:
Night Trading 
  • Asian equity indices are +3.25% to +3.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 171.5 -41.5 basis points.
  • China Sovereign CDS 61.5 -10.25 basis points.
  • Bloomberg Emerging Markets Currency Index  58.29 unch.
  • Euro Stoxx 50 futures -.8%.
  • S&P 500 futures -.87%.
  • NASDAQ 100 futures -.83%.
Morning Preview Links

Earnings of Note 
Company/Estimate
Before the Open:
  • (PAYX)/.94
  • (WGO)/.67
After the Close:
  • (FUL)/.34
  • (MU)/.37
  • (SCVL)/.21
Economic Releases 
8:30 am EST
  • Preliminary Durable Goods Orders for Feb. is estimated to fall -1.0% versus a -.2% decline in Jan.
  • Preliminary Durables Ex Transports for Feb. is estimated to fall -.4% versus a +.8% gain in Jan.
  • Cap Goods Orders Non-Defense Ex-Air for Feb. is estimated to fall -.4% versus a +1.1% gain in Jan.
9:00 am EST
  • The FHFA House Price Index MoM for Jan. is estimated to rise +.4% versus a +.6% gain in Dec.
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory gain of +3,304,270 barrels versus a +1,954,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -1,945,450 barrels versus a -6,180,000 barrel decline the prior week. Distillate inventories are estimated to fall by -1,662,360 barrels versus a -2,940,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to fall by -.25% versus unch. prior.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The UK PPI report, weekly MBA Mortgage Applications report, Sidoti Investor Conference, CSFB Digital Consumer Retail Conference and the (FISV) investor day could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are higher, boosted by financial and commodity shares in the region. I expect US stocks to open lower and to rally into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.

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