Tuesday, July 07, 2020

Wednesday Watch

Evening Headlines
Bloomberg:   
  • Asia Stocks Set for Mixed Open After U.S. Declines: Markets Wrap. Asian stocks looked set for a mixed start Wednesday after their U.S. peers declined on renewed concerns over the epidemic’s economic impact. The dollar climbed and Treasuries gained. Futures dipped in Japan and Australia, and rose in Hong Kong. Contracts on the S&P 500 were steady after the gauge closed about 1% lower, with almost six shares falling for every one that gained. The tech-heavy Nasdaq dropped from a record intraday high, while airlines and hotels were particularly hard hit. Benchmark Treasury yields fell and gold climbed to the highest since 2011. Oil slipped. Brazil’s currency and stocks slumped as President Jair Bolsonaro said he had tested positive for Covid-19. Futures on the S&P 500 Index were little changed as of 7:07 a.m. in Tokyo. The index fell 1.1% on Tuesday. Futures on Japan’s Nikkei 225 slid 0.5%. Hang Seng futures rose 0.4%. Futures on Australia’s S&P/ASX 200 Index slid 0.5%.  
Wall Street Journal:
Fox News:
CNBC.com:
Zero Hedge:     
The Epoch Times:
Night Trading 
  • Asian equity indices are -.5%  to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 80.75 +1.75 basis points.
  • China Sovereign CDS 45.25 +1.0 basis point.
  • Bloomberg Emerging Markets Currency Index 60.47 +.04%.
  • FTSE 100 futures -.51%.
  • S&P 500 futures +.17%.
  • NASDAQ 100 futures +.21%.
Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:
  • (SMPL)/.16
After the Close:
  • (BBBY)/-1.30
Economic Releases
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -3,188,600 barrels versus a -7,195,00 barrel decline the prior week. Gasoline supplies are estimated to fall by -218,100 barrels versus a 1,199,000 barrel decline the prior week. Distillate inventories are estimated to fall by -127,000 barrels versus a -593,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.62% versus a +.9% gain prior.
3:00 pm EST
  • Consumer Credit for May is estimated at -$15.0B versus -$68.77B in April.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China inflation data report, $29B 10Y T-Note auction, weekly MBA Mortgage Applications report and the (COST) June sales results 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 financial 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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