Thursday, May 28, 2020

Friday Watch

Evening Headlines
Bloomberg:       
  • Asian Stock Futures Mixed; U.S. Rally Fizzles: Markets Wrap.  Asian stocks opened modestly lower after a rally in U.S. equities fizzled on fresh U.S.-China tensions. The dollar held losses. Sentiment is being tested as global equities round out a second month of gains, with President Donald Trump saying he’ll announce new U.S. steps on China on Friday, after it passed a national security law curbing freedoms in Hong Kong. Japanese shares dipped modestly along with those in Seoul and Sydney. U.S. contracts slid after the gauge gave up a gain of more than 1%, with the announcement stoking concern Sino-American tensions will disrupt the economic reopening narrative that’s propelled markets. Treasuries were steady. S&P 500 futures fell 0.4% as of 9:05 a.m. in Tokyo. The S&P 500 fell 0.2% Thursday. Japan’s Topix index fell 0.6%. South Korea’s Kospi declined 0.4%. Australia’s S&P/ASX 200 Index slid 0.3%.
Wall Street Journal:
Fox News:
CNBC.com:
MarketWatch.com:         
Zero Hedge:   
The Epoch Times:
John Hopkins University:
Night Trading 
  • Asian equity indices are -.75% to -.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 100.25 -.25 basis point.
  • China Sovereign CDS 51.75 -.75 basis point.
  • Bloomberg Emerging Markets Currency Index 59.98 +.01%.
  • FTSE 100 futures -.81%
  • S&P 500 futures -.37%.
  • NASDAQ 100 futures -.42%.
Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:
  • (BIG)/.40
  • (CGC)/-.44
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • The Advance Goods Trade Balance for April is estimated at -$65.0B versus -$64.4B in March.
  • Wholesale Inventories MoM for April is estimated to fall -.7% versus a -.8% decline in March.
  • Personal Income for April is estimated to fall -6.0% versus a -2.0% decline in March.
  • Personal Spending for April is estimated to fall -12.8% versus a -7.5% decline in March.
  • The PCE Core for April is estimated to fall -.3% versus a -.1% decline in March.
9:45 am EST
  • The MNI Chicago PMI for May is estimated to rise to 40.0 versus 35.4 in April.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Powell speaking, Italian GDP report, ASCO virtual scientific program and the (AMGN) investor meeting could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are lower, weighed down by financial and commodity shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.

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