Wednesday Watch

Night Trading 

• Asian equity indices are -1.0% to -.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 141.75 +3.75 basis points. 

• China Sovereign CDS 85.5 +9.5 basis points.
  

• Bloomberg Emerging Markets Currency Index 48.12 -.06%.  
• Bloomberg Global Risk-On/Risk Off Index 46.4 +.7%. 
• Bloomberg US Financial Conditions Index -.62 -5.0 basis points
  
• Volatility Index(VIX) futures 27.2 -.5%
• Euro Stoxx 50 futures -.14%.

• S&P 500 futures +.16%.

• NASDAQ 100 futures +.20%  

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (GIS)/1.00
  

After the Close:

• (FUL)/1.04
• (KBH)/2.67
• (LEN)/4.87
• (SCS)/.13

Economic Releases

10:00 am EST

• Existing Home Sales for Aug. is estimated to fall to 4.69M versus 4.81M in July.
  

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory gain of +2,592,800 barrels versus a +2,442,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -846,600 barrels versus a -1,768,000 barrel decline the prior week. Distillate inventories are estimated to fall by -505,200 barrels versus a +4,219,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to fall by -.1% versus a +.6% gain prior.

2:00 pm EST

• The FOMC is expected to raise the benchmark Fed Funds Rate +75.0 basis points to 3.0-3.25%.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The FOMC Press Conference, Canada CPI report, weekly MBA Mortgage Applications report, (TECK) investor day and the (CRM) investor day could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are lower, weighed down by commodity and technology shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing modestly lower. The Portfolio is 25% net long heading into the day.