Wednesday Watch

Evening Headlines

Bloomberg:        

• China’s Hidden Symptom-Free Virus Cases Means Epidemic Not Over.

• Trump’s Target for Ending Lockdown Sets Up Clash With Governors.

• Worldwide Dollar Crunch Raises Red Flags in Asia’s Debt Marke.   

• World’s Miners Slowly Grind to a Halt on Virus Restrictions.

• 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%.

• Oil Rides U.S. Risk Rally Though Worries Over Global Glut Linger.

• Five Things You Need to Know to Start Your Day.

• NYC Subway Poles Seen as Spreader; India Lockdown: Virus Update.

• Back-to-Work Push Pits Billionaires Against the Doctors.

• U.S. Retailers Plan to Stop Paying Rent to Offset Virus -1-   

• Apollo Snaps Up Portfolio Company Debt, Touts 250 Ways to Profit.  

• Banks Blindsided as N.Y. Virus Relief Order Roils Contracts.

• Doctors’ Practices Face Cash Crunch as Pandemic Halts Economy.  

• When New York Mandated Vaccinations, Nurses Sued.

Wall Street Journal:    

• Amazon’s Bezos, Other Corporate Executives Sold Shares Just in Time. 

• Older Virus Patients Face Looming ICU Bed Shortage .

• The West Is Misinterpreting Wuhan’s Progress—and Drawing the Wrong Lessons.

• The New Frontline Coronavirus Workers: Grocery Clerks, Delivery Drivers.

• Trump Hopes to Have U.S. Reopened by Easter, Despite Warnings.

CNBC.com:

• Coronavirus live updates: US cases top 53,000, Universal Resort extends closure.

• Cramer tells investors to be cautious of ‘one-day bull market’.

• Coronavirus stimulus talks could drag into Wednesday after lawmakers said deal was close.

• Dow rebounds more than 11% in best day since 1933 as Congress nears coronavirus stimulus deal.

• Coronavirus: New York City to release 300 nonviolent inmates from Rikers Island.

• Nike sales beat analysts’ estimates, but earnings fall, hurt by coronavirus pandemic.

• Los Angeles health officials say a child under 18 has died from the coronavirus.

• Stocks making the biggest moves after hours: Nike, Square, Boeing & more.

Fox News:

• WH pitches $6T coronavirus stimulus package ahead of high-stakes Senate vote.

• Party of 50 guests became coronavirus 'super-spreading event,' report says.

• Tips for handling laundry while staying safe during outbreak.

MarketWatch.com:        

• Goldman Sachs says it is time to buy gold — the ‘currency of last resort' .

• Is it safe to get food delivered? Can you catch coronavirus from the packaging? Will it survive on the surface of your takeout?

Zero Hedge:

• White House Calls For 14-Day Quarantine For Anybody Leaving NY: Live Updates.

• California's Public Employees Retirement System Just Lost A Stunning $69 Billion In One Month.

• Here's What A Lockdown Of India's 1.3 Billion People Looks Like.

• "Someone Is Gonna Get Shot" - LA County Sheriff Orders All Gun Stores Closed.

• WTI Extends "Hope For More Stimulus" Gains On Surprise Crude Draw.

• Advertising Industry In Freefall: Facebook Says Ad Revenue Is Weakening.

• Fed Hires World's Largest Asset Manager To Manage Its Massive Asset Purchases.

• Meet The 'Covidiot': "A Dense Creature That Ignores Simple Instructions, Endangers Others".

• DOJ Asks Congress For "Indefinite Detention Powers" To Fight The Coronavirus.

• Dow Squeezes To Best Day Since 1933, Gold Soars As Dollar Dips.

Business Insider: 

• McDonald's(MCD) is pushing an ordering system invented for truckers, as 1.8 million drivers struggle to find food amid the coronavirus pandemic.  

• Trump says he wants the US open for business by Easter, but he can't actually force governors to reopen their states.

• Photos of packed beaches, bikeways, and hiking trails show how people are ignoring coronavirus social-distancing mandates around the world.

• The world has begun using robots to replace and help humans in the fight against coronavirus by delivering groceries, sanitizing hospitals, and monitoring patients.

• SoftBank reportedly considered a big move to take the company private before settling on a plan to sell off billions in assets.

• Kroger is installing plexiglass shields at cash registers and urging the federal government to secure masks and gloves for grocery workers.

• CVS, Walmart, and 14 other 'essential' businesses that are desperate for workers right now.

John Hopkins University:

• Coronavirus Global Cases. (map)

BNO News:

• Tracking Coronavirus: Map, data and timeline.

Google Docs:

• Coronavirus Testing by State.

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.