Wednesday Watch

Night Trading 

• Asian equity indices are -.25% to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 82.75 +1.25 basis points.

• China Sovereign CDS 46.25 +1.75 basis points.
  

• Bloomberg Emerging Markets Currency Index 57.93 -.02%. 
• Bloomberg Global Risk-On/Risk Off Index 3,336.0 +5.0 points.
• Volatility Index(VIX) futures 20.4 +.34%.
• FTSE 100 futures n/a.

• S&P 500 futures -.07%

• NASDAQ 100 futures -.09%. 

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (AAWW)/4.32
• (BWA)/.74
• (EAT)/.78
• (CVS)/1.79
• (DISCA)/.41
• (EMR)/1.18
• (FDP)/.30
• (HUM)/4.67
• (JLL)/3.61
• (LL)/.32
• (MAR)/.99
• (PBI)/.07
• (SMG)/-.86
• (TUP)/.71
• (UTHR)/4.09
• (WING)/.35
  

After the Close:

• ((ALB)/.76
• (ALL)/1.75
• (BKNG)/33.03
• (CF)/.95
• (CAKE)/.70
• (EA)/1.15
• (FOXA)/1.03
• (HST)/.13
• (TWNK)/.20
• (HUBS)/.44
• (H)/-.35
• (IR)/.47
• (MRO)/.31
• (MET)/1.71
• (MGM)/-.02
• (PXD)/3.88
• (RGR)/2.18
• (SPWR)/.02
• (TTWO)/1.34
• (TRMB)/.59
• (TRUP)/-.01
  

Economic Releases

8:15 am EST:

• The ADP Employment Change for Oct. is estimated at 400K versus 568K in Sept.
  

10:00 am EST

• The ISM Services Index for Oct. is estimated to rise to 62.0 versus 61.9 in Sept.
• Factory Orders for Sept. is estimated to rise +.1% versus a +1.2% gain in Aug.
• Factory Orders Ex Transports for Sept. is estimated unch. versus a +.5% gain in Aug.

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory gain of +1,696,400 barrels versus a +4,268,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -1,239,300 barrels versus a -1,993,000 barrel decline the prior week. Distillate inventories are estimated to fall by -870,000 barrels versus a -432,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.53% versus a .4% gain prior.
  

2:00 pm EST

• The FOMC is expected to leave the benchmark Fed Funds Rate at  0.0-.25%.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed press conference, CDC decision on kids 5-11 vax, Eurozone Services PMI report, weekly MBA Mortgage Applications report and the (PGR) investor event could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are mostly higher, boosted by commodity and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing modestly higher. The Portfolio is 75% net long heading into the day.