Monday, September 18, 2017

Tuesday Watch

Evening Headlines
  • Weakest China Developers Threatened by $38 Billion in Bond Puts. Chinese property developers face a wall of local bonds that investors can force them to pay off next year ahead of schedule, just as rising interest rates raise the risk that more note holders may opt to do so. Investors have an option to offload 250 billion yuan ($38 billion) of such notes in 2018, according to Bloomberg data. To put some perspective on that amount, it’s five times all their regularly maturing onshore bond principal this year.
  • Stocks in Asia Rise; Yen Steady After Two-Day Loss. Japan’s equity benchmarks gained more than 1 percent, playing catch-up to a rally on Monday, when Tokyo was closed for a holiday. The S&P 500 Index held above 2,500 to notch a fresh record Monday, and the Dow Jones Industrial Average added to its all-time high. The yen inched higher though held on to most of the losses in the two previous sessions. Gold was little changed as demand for safe-haven assets waned the past two trading days, while oil was steady just under $50 a barrel. Japan’s Topix index added 1.1 percent as of 9:17 a.m. Tokyo time. The Kospi index fluctuated and Australia’s main gauge increased 0.3 percent. Hang Seng Index futures were little changed.
  • Far From the Texas Coast, Hurricane Harvey Hits Oil Refiners. Three weeks after Hurricane Harvey ravaged the massive fuel-making industry along the Texas coast, the region’s recovery from storm damage is starting to disrupt plans for crucial maintenance at refineries thousands of miles away from the flood zones.
Wall Street Journal:
Zero Hedge:
Business Insider:
Night Trading 
  • Asian equity indices are unch. to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 71.75 -1.0 basis point. 
  • Asia Pacific Sovereign CDS Index 18.25 unch.
  • Bloomberg Emerging Markets Currency Index 74.56 +.03%.
  • S&P 500 futures +.03%.
  • NASDAQ 100 futures +.06%.
Morning Preview Links

Earnings of Note

  • (APOG)/.85
  • (AZO)/15.12
  • (AIR)/.31
  • (ADBE)/1.01
  • (BBBY/.95
  • (CPRT)/.31
  • (FDX)/3.11
Economic Releases 
8:30 am EST
  • Housing Starts for August are estimated to rise to 1174K versus 1155K in July.
  • Building Permits for August are estimated to fall to 1220K versus 1223K in July.
  • The Current Account Deficit for 2Q is estimated at -$116.0B versus -$116.8B in 1Q.
  • The Import Price Index MoM for August is estimated to rise +.4% versus a +.1% gain in July.
  • The Export Price Index MoM for August is estimated to rise +.2% versus a +.4% gain in July.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German ZEW Index, weekly US retail sales reports, (BIG) analyst conference and the (BBY) investor day could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by financial and industrial 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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