Monday, April 06, 2020

Tuesday Watch

Evening Headlines
Bloomberg:              
  • Asian Stocks to Build on Rally as Virus Toll Eases. Asian stocks looked set to build on a U.S. rally after the reported death tolls in some of the world’s coronavirus hot spots continued to show signs of easing. The yen maintained losses and Treasuries fell. S&P 500 futures fluctuated in early Asian trading Tuesday after the index finished up 7%, closing at its highest since March 13. Futures in Japan pointed to a strong open with Prime Minister Shinzo Abe expected to announce a month-long state of emergency as soon as Tuesday and details of a record stimulus package to combat the spread of the virus. Australian stocks and Hong Kong futures also rose. S&P 500 futures rose 0.2% as of 8:28 a.m. in Tokyo. The S&P 500 Index increased 7% in New York. Nikkei 225 futures were up 1.8%. Australia’s S&P/ASX 200 Index contracts climbed 2.4%. Hong Kong’s Hang Seng Index futures rose 1%.
Wall Street Journal:
CNBC.com: 
Zero Hedge:
John Hopkins University:
Night Trading 
  • Asian equity indices are +1.5% to +2.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 140.75 -8.75 basis points.
  • China Sovereign CDS 54.50 -9.0 basis points.
  • Bloomberg Emerging Markets Currency Index 57.98 +.06%.
  • Euro Stoxx 50 futures +1.19%.
  • S&P 500 futures +.38%.
  • NASDAQ 100 futures +.13%.
Morning Preview Links

Earnings of Note 
Company/Estimate
Before the Open:
  • (ANGO)/-.03
  • (FLR)/.13
  • (GBX)/.26
  • (LNN)/.47
  • (REV)/-1.07
After the Close:
  • (LEVI)/.35
Economic Releases
10:00 am EST
  • JOLTS Job Openings for Feb. is estimated to fall to 6,500 versus 6,963 in Jan. 
3:00 pm EST
  • Consumer Credit for Feb. is estimated at $14.0B versus $12.021B in Jan.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Japan Machine Orders report, weekly US retail sales reports, $25B 10Y T-Note auction, Wells Fargo Biotech Virtual Conference and the (JCP) analyst day could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are higher, boosted by consumer discretionary and transport shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 75% net long heading into the day.

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