Tuesday, May 26, 2020

Wednesday Watch

Evening Headlines
Bloomberg:         
  • Asia Stocks Set For Mixed Start; Dollar Slides: Markets Wrap. Asian stocks saw a mixed open Wednesday as investors weighed a report that the Trump administration is considering sanctions on Chinese officials, another sign of deteriorating Sino-American relations. The dollar and Treasuries held overnight losses. Shares in Seoul and Sydney dropped, while those in Tokyo saw smaller losses. S&P 500 futures dipped after the gauge closed at an 11-week high. The index gave up almost half its gains in the final half hour of trading with chipmakers exposed to China tumbling. The report suggested that the Treasury Department could impose controls on transactions and freeze assets of Chinese officials and businesses for implementing a new national security law that would curtail the rights and freedoms of Hong Kong citizens. The yen fluctuated. Futures on the S&P 500 Index dipped 0.1% as of 9:05 a.m. in Tokyo. The gauge added 1.2% on Tuesday. Japan’s Topix index added 0.2%. South Korea’s Kospi index slid 0.1%. Australia’s S&P/ASX 200 Index fell 0.5%
Wall Street Journal:
Fox News:
CNBC.com:
MarketWatch.com:        
Zero Hedge:    
The Epoch Times:
The Kashmir Walla: 
  • 10,000 China's People Liberation Army soldiers inside Ladakh, China now claims entire Galwan valley: Report. There are close to 10,000 soldiers of China’s People’s Liberation Army (PLA) on Indian territory, Business Standard quoting sources reported. The report noted that dialogue is frozen, with the Chinese rebuffing Indian calls for flag meetings to resolve the situation. “The most worrying situation is in the Galwan valley, where the PLA has crossed China’s own claim line (which Beijing had stated was the border with India), and breached 3-4 kilometres into Indian territory. PLA troops are digging defences to equip themselves to face any Indian attack,” the newspaper report added.
John Hopkins University:
Night Trading 
  • Asian equity indices are -.75% to -.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 104.5 -2.75 basis points.
  • China Sovereign CDS 51.25 -.5 basis point.
  • Bloomberg Emerging Markets Currency Index 60.03 -.03%.
  • FTSE 100 futures -.31%.
  • S&P 500 futures -.29%.
  • NASDAQ 100 futures -.27%.
Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:
  • (RL)/-.07
  • (VIPS)/.75
After the Close:
  • (UHAL)/-2.93
  • (ADSK)/.79
  • (BOX)/.02
  • (COHR)/.52
  • (HPQ)/.45
  • (NTAP)/1.05
  • (PLT)/.11
  • (SMTC)/.32
  • (SPT)/.29
  • (TOL)/.43
  • (VRNT)/.68
  • (WDAY)/.49
Economic Releases
10:00 am EST
  • The Richmond Fed Manufacturing Index for May is estimated to rise to -40 versus -53 in April.
2:00 pm EST
  • US Fed Beige Book release.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The France Consumer Confidence report, weekly US retail sales reports, weekly MBA Mortgage Applications report, $45B 5Y T-Note auction, RBC Consumer/Retail Conference and the TD Securities Telecom/Media Conference could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are mostly lower, weighed down by commodity and consumer 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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