Monday, March 02, 2020

Tuesday Watch

Evening Headlines
Bloomberg:   
  • Asian Stocks Gain After Big Wall Street Rebound. Asian stocks climbed Tuesday after the biggest advance in U.S. shares since their December 2018 rebound from a brush with a bear market. Central bankers from the U.S., Japan and Europe spurred the gains by pledging to act as appropriate to address mounting risks from the coronavirus. Group of Seven finance chiefs and central-bank governors confer by telephone later Tuesday. Futures on the S&P 500 rose after the benchmark gauge rallied 4.6%. Stocks in Asia had more subdued moves, with Japan lagging behind Australia, China and South Korea. Hong Kong opened modestly higher. Crude oil added to a jump of more than 4%. Treasury yields were steady, while the dollar ticked lower. S&P 500 futures rose 0.7% as of 10:29 a.m. in Tokyo. The S&P 500 Index rose 4.6%. Topix index climbed 0.5%. Australia’s S&P/ASX 200 Index climbed 1.7%. South Korea’s Kospi index rose 1.7%. Hong Kong’s Hang Seng Index rose 0.5%. Shanghai Composite Index added 1.2%. MSCI Asia-Pacific Index added 0.8%.  
Zero Hedge:
Night Trading 
  • Asian equity indices are +.5% to +1.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 65.25 -5.5 basis points.
  • China Sovereign CDS 43.75 -9.75 basis points.
  • Bloomberg Emerging Markets Currency Index  63.90 unch.
  • FTSE 100 futures +1.1%.
  • S&P 500 futures +.34%.
  • NASDAQ 100 futures +.32%.
Morning Preview Links

Earnings of Note 
Company/Estimate
Before the Open:
  • (AZO)/11.75
  • (FLR)/.22
  • (IGT)/.23
  • (KSS)/1.88
  • (TGT)/1.65
After the Close:
  • (AVAV)/.17
  • (AMBA)/.11
  • (CDLX)/.04
  • (HPE)/.44
  • (JWN)/1.48
  • (ROST)/1.26
  • (URBN)/.63
Economic Releases 
Afternoon
  • Wards Total Vehicle Sales for Feb. are estimated to fall to 16.8M versus 16.84M in Jan.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The weekly US retail sales reports could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are higher, boosted by technology and commodity shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 50% net long heading into the day.

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