BETWEEN THE HEDGES

Portfolio Manager's Commentary on Investing and Trading in the U.S. Financial Markets

Top Menu

  • Home
  • All Links
  • Morning Preview
  • Intraday Overview
  • Evening Review

Wednesday, May 13, 2015

Wednesday Watch

Posted by Gary .....at 12:21 AM
Evening Headlines 
Bloomberg: 
  • Political Will Is Keeping Greece From Bankruptcy: Vogt. (video)
  • One Year In, Modi Euphoria Fades Along With Indian Stock Prices. Modi-mania is fading. Indian Prime Minister Narendra Modi, whose election last May fueled hopes that he would unleash India’s economic potential, is finishing his first year in office with few major legislative victories. Lawmakers on Tuesday delayed voting on a proposal to create a national sales tax, one of the country’s biggest economic reforms in decades. Another bill to make it easier to buy land also got sent to a committee.
  • U.S. Said Poised to Tear Up UBS Libor Accord, Seek Guilty Plea. The U.S. Justice Department is set to rip up its agreement not to prosecute UBS Group AG for rigging benchmark interest rates, according to a person familiar with the matter, taking a new step to hold banks accountable for repeat offenses. The move by the U.S. would be a first for the industry, making good on a March threat by a senior Justice Department official to revoke such agreements and putting banks on notice that these accords can be unwound if misconduct continues.  
  • Asian Junk-Bond Yield Nears Lowest as Investors Look Past. (graph) Asia’s riskiest bond issuers are getting the lowest borrowing costs of the year as investors speculate central banks will help them overcome default concerns flagged by Kaisa Group Holdings Ltd. Yields on dollar-denominated Asian sub-investment grade notes plunged 224 basis points to 7.54 percent as of May 11 from the January peak of 9.78 percent, according to a Bank of America Merrill Lynch index. That’s near the year’s low of 7.52 percent marked on April 30.  
  • China’s Small-Company Stocks Slump After Hitting Record High. Chinese small-company stocks fell the most in a week, led by technology companies, amid speculation the government is seeking to cool the market after a benchmark gauge hit a record. East Money Information Co. slid 2.2 percent after rallying by the daily limit of 10 percent in the past two days. Siasun Robot & Automation Co. dropped 2.8 percent. PetroChina Co. led declines for energy companies. sliding 1 percent. The government is looking at stripping its biggest energy companies of their oil and gas pipelines as part of sweeping industry reforms, according to people with knowledge of the plans. Data scheduled for Wednesday include industrial production and retail sales.The ChiNext index in Shenzhen dropped from an all-time high, losing 1.9 percent at 9:51 a.m. China’s securities regulator had an urgent meeting with three fund management firms on Tuesday afternoon, requiring them to control the pace of buying ChiNext stocks, the Securities Times reported. The Shanghai Composite Index slid 0.5 percent to 4,378.98.
  • Asian Stocks Retreat Second Day as Bond Rout Spreads to Equities. Asian stocks fell for a second day after a retreat in global equities as concern mounts over the selloff in bonds. Consumer companies led losses. The MSCI Asia Pacific Index slid 0.1 percent to 151.43 as of 9:01 a.m. in Tokyo.
  • Oil's Not Coming Back. Here's Why. Oil bulls who’ve cheered a rebound of 40 percent from a six-year low should take heed: Unless demand accelerates, the rally is in danger. The omens aren’t good. The U.S. government expects global consumption to grow next year at less than half the rate of 2010, when the world was emerging from a previous recession. The growth is insufficient to close the gap with rising supply, according to Royal Dutch Shell Plc, Europe’s biggest energy producer. The last time oil crashed, during the 2008 financial crisis, China’s appetite for commodities seemed insatiable, and powered prices higher. This time, Chinese fuel use is growing at half the rate of the past decade, and sliding U.S. shale output could reverse as prices rise, smothering the gains.
  • Chinese iron ore mines face 'annihilation' as BHP(BHP), Rio Tinto, Vale boost output. Iron ore production in China is poised to shrink further as cheaper imports and faltering demand threaten to close mines supplying mills in the top steelmaker. Most private mines in China have costs that are too high and produce ore of too low a quality to survive, according to Sanford C Bernstein & Co. Output that fell 20 per cent to 311 million metric tons last year would drop to 271 million tons this year and shrink further next year, Goldman Sachs said.
  • Chicago Rating Cut to Junk by Moody’s on Pension Struggle. Chicago had its credit rating cut to junk by Moody’s Investors Service after the Illinois Supreme Court’s rejection of a state pension-overhaul plan reduced the city’s options for fixing its own underfunded system. The two-level downgrade to Ba1 affects $8.1 billion of general obligations, which were already the lowest-rated among the 90 biggest U.S. cities, excluding Detroit. The outlook is still negative. Moody’s has dropped the city seven levels since July 2013.
  • Democrats Plot Revolt Behind Closed Door, Sink Trade Bill. (video) Signs of trouble for President Barack Obama’s trade bill surfaced early Tuesday when 14 Democrats huddled behind closed doors in a room one floor below the Senate chamber. Republicans needed just six Senate Democrats to prevail and were counting on several in the room who had voted for the bill in committee.
  • Stanford Sells Apple(AAPL) as Endowment Reduces U.S. Equity Holdings. Stanford University’s endowment liquidated its stake in Apple Inc. in the first three months of 2015 as it trimmed holdings of U.S. equities. The endowment sold Apple shares worth $174.5 million at the end of last year, according to a regulatory filing. The fund’s publicly disclosed U.S. stock holdings dropped by $250.4 million to $101.2 million at the end of March, as it also exited stakes in Cobalt International Energy Inc. and Bank of America Corp.
Wall Street Journal: 
  • Gay Couples Tie the Knot for Health Benefits. Amid push to make same-sex unions legal, some employers tell gay workers they must marry to keep coverage for partners.
  • Nepal Hit by New Earthquakes. Latest large quake had magnitude of 7.3, and struck between Kathmandu and Mount Everest, leaving dozens dead; U.S. military helicopter is missing.
  • With Manhattan Luxury Property Hitting Highs, Some Fear Air Is Getting Thin. Cranes dotting New York spark worries of a supply glut.
  • Jeb’s Rookie Mistake. How could he be unprepared for the Iraq question?
Fox News:
  • Amtrak train crashes in Philadelphia, multiple injuries reported. (video) Several people reportedly were injured after an Amtrak train crashed in Philadelphia Tuesday evening.
    Northeast Regional Train 188 was traveling from Washington, D.C., to New York City when it crashed just northeast of Philadelphia's Center City at approximately 9:30 p.m. local time. The front of the train was going into a corner when it shook.
  • Clinton facing new ethics questions on role in Boeing deal. (video) When Hillary Clinton was America's top diplomat, she also appeared at times like a top salesperson for America's biggest airplane maker, Boeing. Traveling abroad on official business as secretary of state, Clinton often visited Boeing facilities and made a pitch for the host country to buy Boeing jets. During one visit to Shanghai in May 2010, she boasted that "more than half the commercial jetliners operating in China are made by Boeing."
MarketWatch.com:
  • Zillow(Z) reports surprise adjusted profit, while sales fall shy of estimates. 
CNBC: 
  • China outlook even worse than imagined: Morgan Stanley(MS). (video) The worst of the Chinese economic slowdown is likely still ahead because of the nation's debt, according to a senior Morgan Stanley investment strategist. "China, to try and sustain its growth rate in the post-financial-crisis era, has engaged in the largest credit binge of any emerging market in history," said Ruchir Sharma, head of emerging markets and global macro at Morgan Stanley Investment Management,
Zero Hedge:
  • NBC Confirms Obama Lied About Bin Laden Raid.
  • Goldman(GS) Fears Crude Oil's Self-Defeating Rally. (graph)
  • A Tale Of Two Graphs - Why Bubble Finance Will Fail. (graph)
  • Oil Jumps Above $61 After API Shows Larger-Than-Expected Inventory Draw. (graph)
  • Bond-Buying-Frenzy Saves Stocks From Giving Up All 'Goldilocks' Gains. (graph)
  • Senate Democrats Defeat The President: Why Obama Is Rushing To Fast-Track The TPP.
  • Canaries In The Coal Mine, Part 1: Tech High-Flyers Fall To Earth. (graph)
  • Shale "Revolver Raids" To Resume In October When "Rubber Meets The Road" For HY Energy.
  • Continued Weak Consumer Spending "Puzzles" BofA. (graph)
  • At Least 50 Injured After Amtrak Train Derails In Philadelphia - Live Feed. (video)
  • Chinese Stocks Overtake US As Most Actively Traded Futures Contract In The World. (graph)
  • More Spending Is Not The Answer To A Slow Economy.
Business Insider:
  • Report: North Korea executes defense chief on treason charges. 
  • Almost no one is happy with Fannie and Freddie, but they still dominate the mortgage industry.
  • The US and China are not agreeing on the 'rules of the road' in the South China Sea.
c/net:
  • Target(TGT) stores to introduce dedicated smart-home sections. Starting May 26, 1,800 Target stores will start stocking smart-home products in their all-new Connected Life sections. Icontrol Networks first tipped us off that its $199 Piper Classic all-in-one security system will be heading to Target shelves soon as part of this initial launch. A Target spokesperson later confirmed the roll-out via separate email.
Reuters:
  • Obama targets hedge funds in personal remarks on poverty, race. President Barack Obama addressed U.S. struggles with class and race in personal terms on Tuesday and renewed his call to close tax loopholes enjoyed by wealthy hedge fund managers as a way to reduce poverty among Americans.
  • Hedge fund net inflows rise at fastest pace for 12 months - data.
Sina:
  • China Regulator Queries Funds' Risk Management. China's securities regulator made queries to risk control directors at China Universal, E Fund Management and Harvest Fund yday and found them to be in compliance. Many mutual fund products have been investing in China's ChiNext board recently, the report said.
Evening Recommendations 
  • None of note
Night Trading
  • Asian equity indices are unch. to +.50% on average.
  • Asia Ex-Japan Investment Grade CDS Index 107.5 -1.0 basis point.
  • Asia Pacific Sovereign CDS Index 60.0 +1.0 basis point.
  • S&P 500 futures +.29%.
  • NASDAQ 100 futures +.32%.
Morning Preview Links

Earnings of Note

Company/Estimate
  • (IGT)/.50
  • (M)/.63
  • (RL)/1.31
  • (PCP)/2.92
  • (CSCO)/.53
  • (CTRP)/-.08
  • (XONE)/-.32
  • (JCP)/-.77
  • (JACK)/.66
  • (NTES)/1.50
  • (SHAK)/-.03
Economic Releases 
8:30 am EST
  • Retail Sales Advance for April are estimated to rise +.2% versus a +.9% gain in March.
  • Retail Sales Ex Autos for April are estimated to rise +.5% versus a +.4% gain in March.
  • Retail Sales Ex Autos and Gas for April are estimated to rise +.6% versus a +.5% gain in March.
  • The Import Price Index for April is estimated to rise +.3% versus a -.3% decline in March.
10:00 am EST
  • Business Inventories for March are estimated to rise +.2% versus a +.3% gain in February..
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory build of +25,000 barrels versus a -3,882,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +37,500 barrels versus a +401,000 barrel gain the prior week. Distillate inventories are estimated to rise by +812,500 barrels versus a +1,503,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to rise by +.4% versus a +1.7% gain prior.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China Retail Sales/Industrial Production reports, Eurozone GDP report, $24B 10Y T-Note auction, weekly MBA mortgage applications report, BofA Merrill Transport conference, JP Morgan Tech/Media/Telecom conference, BofA Merrill Health Care conference, (AVP) investor day, (IR) investor conference and the (WMB) analyst day could also impact trading today.
BOTTOM LINE: Asian indices are mostly higher, boosted by technology and energy shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.

No comments:

Post a Comment

Newer Post Older Post Home
Subscribe to: Post Comments (Atom)

Follow BETWEEN THE HEDGES on Twitter

Follow @BtweenTheHedges

Subscribe To BETWEEN THE HEDGES

Posts
Atom
Posts
Comments
Atom
Comments

Search BETWEEN THE HEDGES

Google
Custom Search

Search the Web with DuckDuckGo

Search the Web with Google

Futures

Track all markets on TradingView

Today's Economic Calender

Real Time Economic Calendar provided by Investing.com.
A Twitter List by BtweenTheHedges

NEWSMAX Live

BETWEEN THE HEDGES Recent Visitor Map

BTH Page Views/Month

BTH Unique Visitors Since February 1, 2004

Breaking911 Alerts

Tweets by Breaking911

All Links - By Category

  • Global News
  • U.S. News
  • Video News
  • Terrorism/War
  • Media/Political Watchdogs
  • Financial News
  • Financial Portals
  • Financial Commentary
  • I-Banks
  • Economic Portals
  • Economic Commentary
  • Central Bank Notes
  • Market Readings
  • Trader's Corner
  • Calendars/Schedules
  • Sentiment/Indicators
  • Commodities/Futures
  • Trading Portals
  • Sector Work
  • Trade Journals/Publications
  • Screens and Scans
  • Quotes
  • Stock-Specific Research
  • Charts of Interest
  • Hedge Fund Information
  • Sites of Interest
  • Blogs of Note

Blog Archive

  • ►  2025 (618)
    • ►  June (57)
    • ►  May (119)
    • ►  April (115)
    • ►  March (104)
    • ►  February (111)
    • ►  January (112)
  • ►  2024 (1320)
    • ►  December (115)
    • ►  November (97)
    • ►  October (117)
    • ►  September (112)
    • ►  August (88)
    • ►  July (88)
    • ►  June (100)
    • ►  May (118)
    • ►  April (120)
    • ►  March (108)
    • ►  February (121)
    • ►  January (136)
  • ►  2023 (1380)
    • ►  December (124)
    • ►  November (113)
    • ►  October (141)
    • ►  September (130)
    • ►  August (96)
    • ►  July (81)
    • ►  June (87)
    • ►  May (140)
    • ►  April (127)
    • ►  March (123)
    • ►  February (121)
    • ►  January (97)
  • ►  2022 (1108)
    • ►  December (84)
    • ►  November (93)
    • ►  October (93)
    • ►  September (97)
    • ►  August (93)
    • ►  July (91)
    • ►  June (85)
    • ►  May (91)
    • ►  April (94)
    • ►  March (87)
    • ►  February (97)
    • ►  January (103)
  • ►  2021 (1153)
    • ►  December (100)
    • ►  November (99)
    • ►  October (113)
    • ►  September (111)
    • ►  August (94)
    • ►  July (96)
    • ►  June (79)
    • ►  May (98)
    • ►  April (96)
    • ►  March (78)
    • ►  February (91)
    • ►  January (98)
  • ►  2020 (1262)
    • ►  December (115)
    • ►  November (103)
    • ►  October (106)
    • ►  September (109)
    • ►  August (113)
    • ►  July (101)
    • ►  June (105)
    • ►  May (115)
    • ►  April (104)
    • ►  March (85)
    • ►  February (91)
    • ►  January (115)
  • ►  2019 (1264)
    • ►  December (114)
    • ►  November (90)
    • ►  October (116)
    • ►  September (107)
    • ►  August (101)
    • ►  July (106)
    • ►  June (87)
    • ►  May (116)
    • ►  April (103)
    • ►  March (105)
    • ►  February (104)
    • ►  January (115)
  • ►  2018 (1337)
    • ►  December (90)
    • ►  November (93)
    • ►  October (124)
    • ►  September (108)
    • ►  August (124)
    • ►  July (93)
    • ►  June (112)
    • ►  May (117)
    • ►  April (112)
    • ►  March (118)
    • ►  February (118)
    • ►  January (128)
  • ►  2017 (1503)
    • ►  December (115)
    • ►  November (120)
    • ►  October (125)
    • ►  September (116)
    • ►  August (132)
    • ►  July (113)
    • ►  June (139)
    • ►  May (132)
    • ►  April (119)
    • ►  March (140)
    • ►  February (120)
    • ►  January (132)
  • ►  2016 (1521)
    • ►  December (119)
    • ►  November (124)
    • ►  October (117)
    • ►  September (125)
    • ►  August (140)
    • ►  July (116)
    • ►  June (137)
    • ►  May (131)
    • ►  April (125)
    • ►  March (145)
    • ►  February (128)
    • ►  January (114)
  • ▼  2015 (1552)
    • ►  December (131)
    • ►  November (128)
    • ►  October (140)
    • ►  September (141)
    • ►  August (139)
    • ►  July (145)
    • ►  June (138)
    • ▼  May (136)
      • Weekly Outlook
      • Today's Headlines
      • Market Week in Review
      • Weekly Scoreboard*
      • Stocks Falling into Afternoon on Rising Global Gro...
      • Today's Headlines
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Friday Watch
      • Stocks Slightly Lower into Final Hour on Rising Em...
      • Today's Headlines
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Thursday Watch
      • Stocks Surging into Final Hour on Less Eurozone De...
      • Today's Headlines
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Wednesday Watch
      • Stocks Falling Substantially into Final Hour on Su...
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Tuesday Watch
      • Weekly Outlook
      • Today's Headlines
      • Today's Headlines
      • Market Week in Review
      • Weekly Scoreboard*
      • Stocks Slightly Lower into Final Hour on Fed Rate ...
      • Today's Headlines
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Friday Watch
      • Stocks Reversing Slightly Higher into Final Hour o...
      • Today's Headlines
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Thursday Watch
      • Stocks Slightly Higher into Final Hour on Central ...
      • Today's Headlines
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Wednesday Watch
      • Stocks Reversing Slightly Lower into Final Hour on...
      • Today's Headlines
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Tuesday Watch
      • Stocks Rising into Final Hour on Buyout Speculatio...
      • Today's Headlines
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Monday Watch
      • Weekly Outlook
      • Today's Headlines
      • Market Week in Review
      • Weekly Scoreboard*
      • Stocks Reversing Slightly Lower into Afternoon on ...
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Friday Watch
      • Stocks Rising into Final Hour on Lower Long-Term R...
      • Today's Headlines
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Thursday Watch
      • Stocks Reversing Slightly Lower into Final Hour on...
      • Today's Headlines
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Wednesday Watch
      • Stocks Modestly Lower into Final Hour on Fed Rate ...
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Tuesday Watch
      • Stocks Reversing Lower into Final Hour on Rising L...
      • Today's Headlines
      • Bear Radar
      • Bull Radar
      • Morning Market Internals
      • Monday Watch
      • Weekly Outlook
      • Today's Headlines
      • Weekly Scoreboard*
      • Stocks Surging into Final Hour on Central Bank Hop...
      • Today's Headlines
      • Bear Radar
    • ►  April (131)
    • ►  March (120)
    • ►  February (99)
    • ►  January (104)
  • ►  2014 (1332)
    • ►  December (109)
    • ►  November (101)
    • ►  October (118)
    • ►  September (113)
    • ►  August (110)
    • ►  July (111)
    • ►  June (103)
    • ►  May (116)
    • ►  April (114)
    • ►  March (112)
    • ►  February (106)
    • ►  January (119)
  • ►  2013 (1360)
    • ►  December (112)
    • ►  November (110)
    • ►  October (121)
    • ►  September (106)
    • ►  August (114)
    • ►  July (116)
    • ►  June (108)
    • ►  May (122)
    • ►  April (120)
    • ►  March (110)
    • ►  February (104)
    • ►  January (117)
  • ►  2012 (1321)
    • ►  December (87)
    • ►  November (111)
    • ►  October (117)
    • ►  September (107)
    • ►  August (121)
    • ►  July (114)
    • ►  June (111)
    • ►  May (106)
    • ►  April (112)
    • ►  March (121)
    • ►  February (109)
    • ►  January (105)
  • ►  2011 (1360)
    • ►  December (111)
    • ►  November (113)
    • ►  October (115)
    • ►  September (115)
    • ►  August (118)
    • ►  July (107)
    • ►  June (122)
    • ►  May (105)
    • ►  April (111)
    • ►  March (123)
    • ►  February (107)
    • ►  January (113)
  • ►  2010 (1496)
    • ►  December (119)
    • ►  November (111)
    • ►  October (116)
    • ►  September (107)
    • ►  August (116)
    • ►  July (116)
    • ►  June (116)
    • ►  May (107)
    • ►  April (117)
    • ►  March (176)
    • ►  February (148)
    • ►  January (147)
  • ►  2009 (1863)
    • ►  December (159)
    • ►  November (151)
    • ►  October (165)
    • ►  September (156)
    • ►  August (161)
    • ►  July (166)
    • ►  June (162)
    • ►  May (133)
    • ►  April (154)
    • ►  March (165)
    • ►  February (137)
    • ►  January (154)
  • ►  2008 (2002)
    • ►  December (158)
    • ►  November (139)
    • ►  October (161)
    • ►  September (164)
    • ►  August (181)
    • ►  July (172)
    • ►  June (173)
    • ►  May (160)
    • ►  April (194)
    • ►  March (165)
    • ►  February (166)
    • ►  January (169)
  • ►  2007 (1586)
    • ►  December (172)
    • ►  November (111)
    • ►  October (143)
    • ►  September (118)
    • ►  August (137)
    • ►  July (129)
    • ►  June (126)
    • ►  May (139)
    • ►  April (123)
    • ►  March (138)
    • ►  February (122)
    • ►  January (128)
  • ►  2006 (1516)
    • ►  December (116)
    • ►  November (121)
    • ►  October (143)
    • ►  September (126)
    • ►  August (140)
    • ►  July (132)
    • ►  June (128)
    • ►  May (127)
    • ►  April (117)
    • ►  March (129)
    • ►  February (112)
    • ►  January (125)
  • ►  2005 (1483)
    • ►  December (134)
    • ►  November (133)
    • ►  October (130)
    • ►  September (136)
    • ►  August (146)
    • ►  July (129)
    • ►  June (140)
    • ►  May (129)
    • ►  April (154)
    • ►  March (107)
    • ►  February (71)
    • ►  January (74)
  • ►  2004 (879)
    • ►  December (76)
    • ►  November (66)
    • ►  October (83)
    • ►  September (79)
    • ►  August (83)
    • ►  July (80)
    • ►  June (79)
    • ►  May (84)
    • ►  April (83)
    • ►  March (89)
    • ►  February (75)
    • ►  January (2)
  • ►  1990 (1)
    • ►  June (1)
This page is   powered by Blogger. Isn't yours?

All Rights Reserved © 2004-2025, BETWEEN THE HEDGES

The positions and strategies discussed on BETWEEN THE HEDGES are offered for entertainment purposes only and are in no way intended to serve as personal investing advice. Readers should not make any investment decision without first conducting their own thorough due diligence. Readers should assume the editor of this blog holds a position in any securities discussed, recommended or panned. While the information provided is obtained from sources believed to be reliable, its accuracy or completeness cannot be guaranteed, nor can this publication be, in anyway, considered liable for the investment performance of any securities or strategies discussed.

Powered by Blogger.