Thursday, September 28, 2017

Friday Watch

Evening Headlines
  • Chinese Money Is Still Leaking Into the World's Housing Markets. Shanghai restaurateur David Hu said he’s nervous about wiring money to Australia for a home purchase because of China’s crackdown on currency outflows. Instead, he plans to carry the cash in a suitcase. The 61-year-old intended to move about A$85,000 ($66,000) to Melbourne this month, the last part of his financing for a deal struck last year. “Buying a property abroad was and is still workable,” said Hu, though he described the process as a “lot more troublesome” nowadays.
  • Macau May Be Set for Its Best Golden Week Holiday in Years. The forecast for Macau’s upcoming holiday week looks pretty golden. Junkets flush with high rollers, full hotels charging five times their usual prices and brand-new entertainment options have the potential to make Golden Week the most lucrative in at least the past decade for the world’s biggest gaming hub, analysts and industry officials said. The calendar also helps: this year’s holiday period lasts eight days instead of seven, making it a “Super Golden Week.”
  • Luxury Is Back in Vogue in China.
  • Asian Stocks Round Out Strong Quarter With Caution. Australian and Hong Kong equity-index futures signaled higher opens ahead of long weekends, while Japanese shares were poised to edge lower. The S&P 500 Index eked out all-time highs and the Russell 2000 Index of smaller companies extended its quarterly surge. End-of-quarter volatility would not be a surprise on Friday and some major markets, including China, will shut next week for a holiday. Oil slipped after climbing into a bull market this week. Contracts on the Nikkei 225 Stock Average are down slightly, while they were higher on the Australia’s S&P/ASX 200 Index. Hong Kong’s Hang Seng Index climbed 0.4 percent.
  • Five Things You Need to Know to Start Your Day.
  • Murdoch's Control of Fox Targeted by Investor in Proxy Filing. Rupert Murdoch’s control over media conglomerate 21st Century Fox Inc. faces a renewed challenge from a shareholder who cites scandals at the mogul’s companies. Fox recommends shareholders oppose the proposal by the Nathan Cummings Foundation, which held 947 voting shares, to eliminate the dual-class stock structure that gives Murdoch control, according to a regulatory filing Thursday. Investors will decide on the nonbinding measure at the annual meeting scheduled for Nov. 15 in Los Angeles.
  • Payday Loans Are on the Decline as U.S. Economy Improves.
Wall Street Journal:
Zero Hedge:
Night Trading 
  • Asian equity indices are unch. to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 83.25 +.25 basis point
  • Asia Pacific Sovereign CDS Index 17.75 +.5 basis point.
  • Bloomberg Emerging Markets Currency Index 73.61 unch.
  • S&P 500 futures -.07%.
  • NASDAQ 100 futures -.05%.
Morning Preview Links

Earnings of Note

  • None of note
Economic Releases 
8:30 am EST
  • Personal Income for August is estimated to rise +.2% versus a +.4% gain in July.
  • Personal Spending for August is estimated to rise +.1% versus a +.3% gain in July.
  • The PCE Core MoM for August is estimated to rise +.2% versus a +.1% gain in July.
9:45 am EST
  • Chicago Purchasing Manager for September is estimated to fall to 58.7 versus 58.9 in August.
Upcoming Splits
  • (ISRG) 3-for-1
Other Potential Market Movers
  • The US debt ceiling deadline, UK GDP report and the (RGEN) analyst day could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by industrial and technology shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the day.

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