Thursday, April 30, 2020

Friday Watch

Evening Headlines
Bloomberg:                     
  • Stocks Drop Amid Earnings Caution; Dollar Recovers. Japanese shares and U.S. futures dropped after sobering comments from Amazon and Apple about the impact of the coronavirus. The dollar pared overnight losses and Treasury yields ticked lower. Asian trading was limited Friday, with much of the region out on holidays. After U.S. markets closed, Amazon.com warned of a possible second-quarter loss, while Apple omitted an earnings forecast for the first time in more than a decade. Earlier, the S&P 500 Index fell from a seven-week high in wake of a larger-than-expected jump in U.S. jobless claims. Strong results from Microsoft Corp., Facebook Inc. and Tesla Inc. had limited losses on the tech-heavy Nasdaq gauges. Futures on the S&P 500 dropped 1% as of 9:08 a.m. in Tokyo after the index fell 0.9% Thursday. Japan’s Topix Index fell 0.8%. Australia’s ASX/S&P 200 slumped 2.5%. The Stoxx Europe 600 Index decreased 2% Thursday.
Wall Street Journal:
CNBC.com:
Zero Hedge:      
Night Trading 
  • Asian equity indices are -2.75% to -1.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 121.5 +3.25 basis points.
  • China Sovereign CDS 45.0 +1.75 basis points.
  • Bloomberg Emerging Markets Currency Index 58.49 -.14%.
  • FTSE 100 futures -1.1%.
  • S&P 500 futures -.9%.
  • NASDAQ 100 futures -1.5%.
Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:
  • (ABBV)/2.25
  • (APO)/.48
  • (CBOE)/1.53
  • (CHTR)/2.94
  • (CVX)/.67
  • (CLX)/1.49
  • (CL)/.73
  • (DISH)/.57
  • (EL)/.76
  • (XOM)/.06
  • (HON)/1.94
  • (ITT)/.75
  • (JCI)/.36
  • (LYB)/1.43
  • (MINI)/.40
  • (NWL)/.05
  • (PSX)/.63
  • (WY)/.13
After the Close:
  • None of note
Economic Releases
10:00 am EST
  • Construction Spending MoM for March is estimated to fall -3.5% versus a -1.3% decline in Feb.
  • ISM Manufacturing for April is estimated to fall to 36.0 versus a reading of 49.1 in March.
  • ISM Prices Paid for April is estimated to fall to 33.0 versus 37.4 in March.
Afternoon:
  • Wards Total Vehicle Sales for April is estimated to fall to 6.8M versus 11.37M in March.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The UK Money Supply report could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are lower, weighed down by consumer discretionary and financial 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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