Wednesday, November 15, 2017

Thursday Watch

Evening Headlines
  • Stock Slide Pauses in Asia; Aussie Bonds Advance. (video) Benchmarks in Japan fluctuated after the Topix index on Wednesday recorded its biggest drop since March. Australia’s benchmark opened little changed. The S&P 500 Index pared the worst of Wednesday’s losses as bank shares rallied, but that wasn’t enough to overcome the biggest drop in two months for U.S. equities. The gap between two-year and 10-year U.S. yields shrank to a fresh low for 2017, a potential concern given how a flattening in the yield curve has sometimes served as a precursor to an economic downturn. The Topix index swung between gains and losses as of 9:11 a.m. in Tokyo. The Nikkei 225 Stock Average added 0.4 percent. Australia’s S&P/ASX 200 Index was flat. South Korea’s markets will open an hour later because of national exam day. Hong Kong’s Hang Seng Index futures climbed 0.4 percent.
  • Twitter Cracks Down on Verified Accounts With New Policy. (video) Twitter Inc. updated its policies for removing the verification of a user’s identity, saying it can pull the blue check mark at any time without notice for behavior including promoting hate or inciting harassment of others.
Wall Street Journal:
Night Trading 
  • Asian equity indices are unch. to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 81.25 +1.25 basis points. 
  • Asia Pacific Sovereign CDS Index 16.0 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 72.34 +.03%.
  • S&P 500 futures +.17%.
  • NASDAQ 100 futures +.23%.
Morning Preview Links

Earnings of Note

  • (BBY)/.78
  • (SJM)/1.90
  • (SSI)/-.71
  • (VIAB)/.86
  • (WMT)/.97
  • (CRMT)/.75
  • (AMAT)/.90
  • (GPS)/.54
  • (POST)/.93
  • (ROST)/.67
  • (SCVL)/.62
  • (SPLK)/.14
  • (WSM)/.84
Economic Releases 
8:30 am EST
  • Initial Jobless Claims are estimated to fall to 235K versus 239K the prior week.
  • Continuing Claims are estimated to fall to 1900K versus 1901K prior.
  • Philly Fed Business Outlook Index for November is estimated to fall to 24.6 versus 27.9 in October.
  • The Import Price Index MoM for October is estimated to rise +.4% versu a +.8% gain in September.
  • The Export Price Index MoM for October is estimated to  rise +.4% versus a +.8% gain in September. 
9:15 am EST
  • Industrial Production MoM for October is estimated to rise +.5% versus a +.3% gain in September. 
  • Capacity Utilization for October is estimated to rise to 76.3% versus 76.0% in September.
  • Manufacturing Production for October is estimated to rise +.5% versus a +.1% gain in September.
10:00 am EST
  • The NAHB Housing Market Index for November is estimated to fall to 67.0 versus 68.0 in October.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Mester speaking, House vote on tax bill, Bloomberg Economic Expectations Index for November, weekly Bloomberg Consumer Comfort Index, (KO) investor day, Eurozone CPI report, FCC November meeting, weekly EIA natural gas inventory report, (CMI) analyst day, (OC) investor day, (RH) investor day, (ROK) investor meeting, (HAIN) general meeting and the BofA Merrill Energy Conference 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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