Thursday, May 07, 2020

Friday Watch

Evening Headlines
Bloomberg:         
  • Asia Stocks Head For Mixed Start; Treasuries Climb: Markets Wrap. Asian equities opened higher on Friday and U.S. futures climbed as investors continue to weigh moves to reopen economies against data illustrating the enormous damage wreaked by the coronavirus. Japanese shares rose modestly at the open, along with those in Sydney and Seoul. S&P 500 contracts edged higher following gains in U.S. stocks Thursday. Filings for unemployment continued at historically high levels, but fell from the prior week. The tech-heavy Nasdaq Composite turned positive for the year, wiping out losses that reached as much as 24% at the depths of the pandemic-fueled sell-off. Two-year Treasury yields steadied after plunging to a record low. Futures on the S&P 500 added 0.6% as of 9:01 a.m. in Tokyo. The gauge rose 1.2% on Thursday. Japan’s Topix index advanced 1.2%. South Korea’s Kospi rose 0.9%. Australia’s S&P/ASX 200 Index added 0.5%.
Wall Street Journal:
CNBC.com:
Fox News:
MarketWatch.com:            
Zero Hedge:
Night Trading 
  • Asian equity indices are +.5% to +1.0% on average.
  • Asia Ex-Japan Investment Grade CDS Index 119.75 -2.75 basis points.
  • China Sovereign CDS 50.25 -2.0 basis points.
  • Bloomberg Emerging Markets Currency Index 58.05 +.12%.
  • FTSE 100 futures n/a.
  • S&P 500 futures +.51%.
  • NASDAQ 100 futures +.53%.
Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:
  • (AXL)/-.08
  • (BLMN)/-1.20
  • (EXC)/.85
  • (TWNK)/.13
  • (LEA)/1.33
  • (TEN)/-.96
After the Close:
  • None of note
Economic Releases
8:30 am EST:
  • The Change in Non-Farm Payrolls for April is estimated at -21,653K versus -701K in March.
  • The Unemployment Rate for April is estimated to rise to 16.0% versus 4.4% in March.
  • Average Hourly Earnings MoM for April is estimated to rise +.4% versus a +.4% gain in March.
10:00 am EST
  • Wholesale Trade Sales MoM for March are estimated to fall -3.0% versus a -.8% decline in Feb.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Canadian Unemployment Rate report could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are modestly higher, boosted by commodity and financial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.

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