Thursday, March 05, 2020

Friday Watch

Evening Headlines
Bloomberg:     
  • Asia Stocks Slide, Bonds Soar After Wall St. Slump: Markets Wrap. The sell-off in global stocks resumed in Asia Friday as optimism about fiscal packages round the world to address the blow from the coronavirus evaporated. Thirty-year Treasury yields slid through 1.5% for the first time. Japanese equities sank about 2% and Australian shares retreated with the country’s bond yields. The S&P 500 Index fell more than 3% in Thursday’s session. Investor confidence remains in tatters as virus cases continue to rise across the U.S. despite efforts to contain the outbreak and its impact. The yen remains around the six-month high it reached Thursday. Japan’s Topix index lost 2% as of 9:48 a.m. in Tokyo. South Korea’s Kospi index retreated 1.8%. The S&P 500 Index dropped 3.4%. Futures added 0.1%. Australia’s S&P/ASX 200 Index lost 1.9%.  
CNBC:
Night Trading 
  • Asian equity indices are -2.25% to -1.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 69.75 +4.75 basis points.
  • China Sovereign CDS 49.25 +6.25 basis points.
  • Bloomberg Emerging Markets Currency Index  63.54 -.12%.
  • FTSE 100 futures -1.62%.
  • S&P 500 futures -.52%.
  • NASDAQ 100 futures -.30%.
Morning Preview Links

Earnings of Note 
Company/Estimate
Before the Open:
  • None of note
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • The Trade Balance for Jan. is estimated at -$46.2B versus -$48.9B.
  • Change in Non-Farm Payrolls for Feb. are estimated to fall to 175K versus 225K in Jan.
  • The Unemployment Rate for Feb. is estimated at 3.6% versus 3.6% in Jan.
  • Average Hourly Earnings MoM for Feb. is estimated to rise +.3% versus a +.2% gain in Jan.
10:00 am EST
  • Wholesale Trade Sales MoM for Jan. 
3:00 pm EST
  • Consumer Credit for Jan. is estimated at $16.5B versus $22.055B in Dec.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German Factory Orders report and the (REGN) conference call could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are lower, weighed down by technology and industrial 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 day.

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