Wednesday Watch

Night Trading 

• Asian equity indices are -.50% to +.50% on average.
• Asia Ex-Japan Investment Grade CDS Index 141.50 +1.0 basis point. 
• Asia Pacific Sovereign CDS Index 52.75 unch.
• Bloomberg Emerging Markets Currency Index 70.54 +.05%. 
• S&P 500 futures +.13%. 
• NASDAQ 100 futures +.19%.

Morning Preview Links

Earnings of Note
Company/Estimate 

• (ATHM)/.26
• (CBRL)/1.80
• (GIII)/.03
• (KORS)/.97
• (CTRP)/-.06

Economic Releases 
9:45 am EST

• Final Markit US Manufacturing PMI for May is estimated at 50.5 versus a prior estimate of 50.5. 

10:00 am EST

• ISM Manufacturing for May is estimated to fall to 50.3 versus 50.8 in April. 
• ISM Prices Paid for May is estimated to fall to 58.5 versus 59.0 in April.
• Construction Spending for April is estimated to rise +.6% versus a +.3% gain in April. 

2:00 pm EST

• US Fed Beige Book release.

Upcoming Splits 

• None of note

Other Potential Market Movers

• The Eurozone PMI report, Australia Retail Sales/Trade reports, weekly MBA Mortgage Applications report, Cowen Tech/Media/Telecom Conference, RBC Retail Conference, (F) May Sales Conference Call and the BofA Tech Conference could also impact trading today.

BOTTOM LINE:  Asian indices are mostly lower, weighed down by industrial and commodity 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.