Wednesday, August 31, 2016

Thursday Watch

Night Trading 
  • Asian equity indices are -.75% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 113.0 -.25 basis point.
  • Asia Pacific Sovereign CDS Index 38.25 -3.75 basis points.
  • Bloomberg Emerging Markets Currency Index 72.25 -.04%
  • S&P 500 futures +.10%. 
  • NASDAQ 100 futures +.09%.
Morning Preview Links

Earnings of Note
Company/Estimate 

  • (CPB)/.50
  • (CIEN)/.38
  • (GCO)/.27
  • (JOY)/.12
  • (LE)/-.02
  • (LULU)/.38
  • (VRA)/.13
  • (AMBA)/.38
  • (AVGO)/2.76
  • (COO)/2.29
  • (SWHC)/.54
  • (PAY)/.40  
Economic Releases  
7:30 am
  • Challenger Job Cuts YoY for August. 
8:30 am EST
  • Final 2Q Non-Farm Productivity is estimated to fall -.6% versus a -.5% decline in 1Q.
  • Final 2Q Unit Labor Costs are estimated to rise +2.1% versus a +2.0% gain in 1Q.
  • Initial Jobless Claims are estimated to rise to 265K versus 261K the prior week.
  • Continuing Claims are estimated to fall to 2143K versus 2145K prior.   
9:45 am EST
  • Final Markit US Manufacturing PMI for August is estimated at 52.1 versus a prior estimate of 52.1.
10:00 am EST
  • Construction Spending MoM for July is estimated to rise +.5% versus a -.6% decline in June.
  • ISM Manufacturing for August is estimated to fall to 52.0 versus 52.6 in July.
  • ISM Prices Paid for August is estimated to fall to 54.8 versus 55.0 in July. 
Afternoon:
  • Total Vehicle Sales for August are estimated to fall to 17.2M versus 17.77M in July.
Upcoming Splits 
  • (CHD) 2-for-1
Other Potential Market Movers
  • The Fed's Mester speaking, Eurozone PMI report, weekly EIA natural gas inventory report, (LB) August sales report and the (F) sales call could also impact trading today.
BOTTOM LINE:  Asian indices are mostly lower, weighed down by technology and commodity shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.

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