Wednesday Watch

Night Trading 

• Asian equity indices are -1.0% to -.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 143.0 +1.25 basis points. 
• Asia Pacific Sovereign CDS Index 55.0 +.75 basis point. 
• Bloomberg Emerging Markets Currency Index 72.51 -.31%. 
• S&P 500 futures -.15%. 
• NASDAQ 100 futures -.17%.

Morning Preview Links

Earnings of Note
Company/Estimate 

• (BUD)/.91
• (DLPH)/1.34
• (HAIN)/.49
• (HUM)/1.81
• (ICE)/3.66
• (KLIC)/.06
• (MOS)/.14
• (PCLN)/9.64
• (RDC)/.72
• (ZTS)/.41
• (CENT)/.59
• (CF)/.46
• (CB)/2.17
• (FIT)/.03
• (MTW)/-.02
• (MCK)/3.14
• (MET)/1.38
• (MCHP)/.68
• (MUR)/-.68
• (OHI)/.81
• (PRU)/2.36
• (TSLA)/-.65
• (RIG)/.28
• (WFT)/-.26
• (WBMD)/.33
• (WFM)/.41
• (WMB)/.23

Economic Releases  
8:15 am EST

• The ADP Employment Change for April is estimated to fall to 195K versus 200K in March.

8:30 am EST

• The Trade Deficit for March is estimated at -$41.1B versus -$47.1B in February.
• Preliminary 1Q Non-farm Productivity is estimated to fall -1.3% versus a -2.2% decline in 4Q.
• Preliminary 1Q Unit Labor Costs are estimated to rise +3.3% versus a +3.3% gain in 4Q.  

9:45 am EST:

• Final Markit US Services PMI for April is estimated at 52.1 versus a prior estimate of 52.1.

10:00 am EST

• ISM Non-Manufacturing for April is estimated to rise to 54.7 versus 54.5 in March.
• Factory Orders for March are estimated to rise +.6% versus a -1.7% decline in February. 

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory build of +556,250 barrels versus a +1,999,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -462,500 barrels versus a +1,608,000 barrel gain the prior week. Distillate supplies are estimated to rise by +37,500 barrels versus a -1,695,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.34% versus a -1.3% decline prior.

Upcoming Splits 

• None of note

Other Potential Market Movers

• The Fed's Kashkari speaking, China Services PMI, Eurozone Services PMI, weekly MBA mortgage applications report, Piper Jaffray Financial Institutions Conference,  Deutsche Bank Health Care Conference and the (HESS) annual meeting could also impact trading today.

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 25% net long heading into the day.