Monday, November 06, 2017

Tuesday Watch

Evening Headlines
  • Trump Heads to Seoul, Bringing Him Near to Kim Jong Un’s Doorstep. (video) President Donald Trump departed Tokyo on Tuesday morning for a two-day visit to South Korea, bringing him near North Korean leader Kim Jong Un on a stop that will also feature talks on a trade deal he says hurts U.S. workers. The second leg of his five-nation Asia trip includes a visit with U.S. troops, a joint press briefing with President Moon Jae-in and an address to South Korea’s parliament. In contrast to Trump’s warm relationship with Japanese Prime Minister Shinzo Abe, his dealings with Moon got off to rocky start due to differences over trade and dialogue with North Korea.
  • Asia Stocks Trade at Decade High as Oil Holds Gain. Equities rallied from Japan -- where earnings have propelled the Nikkei 225 Stock Average to near its highest level since 1992 -- to Sydney and Hong Kong, after a muted gain in the S&P 500 Index overnight. The kiwi advanced after New Zealand’s new, left-of-center government kept the central bank’s existing target for the pace of inflation. Australia’s dollar was flat ahead of a policy meeting where the central bank is expected to keep interest rates at record lows. A political power play in Saudi Arabia contributed to oil climbing to its highest in more than two years. The Topix index rose 0.4 percent as of 10:46 a.m. in Tokyo. The S&P/ASX 200 Index added 0.7 percent.
    South Korea’s Kospi index was little changed. Hong Kong’s Hang Seng Index was up 0.9 percent
Wall Street Journal:
Business Insider: 
Night Trading 
  • Asian equity indices are unch. to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 75.0 +1.25 basis points. 
  • Asia Pacific Sovereign CDS Index 15.25 +.5 basis point.
  • Bloomberg Emerging Markets Currency Index 72.79 +.02%.
  • S&P 500 futures +.02%.
  • NASDAQ 100 futures +.08%.
Morning Preview Links

Earnings of Note

  • (AAWW)/1.16
  • (CBOE)/.88
  • (DF)/.21
  • (EMR)/.80
  • (EXPD)/.60
  • (HAE)/.41
  • (HAIN)/.23
  • (MZOR)/-.11
  • (RCL)/3.40
  • (SMG)/-.29
  • (SINA)/.74
  • (VRX)/.90
  • (WB)/.63
  • (AGU)/-.05
  • (AAOI)/1.02
  • (COHR)/3.45
  • (FOSL)/-.25
  • (JAZZ)/2.89
  • (MAR)/.99
  • (MYGN)/.21
  • (PHH)/-.72
  • (ZG)/.17
Economic Releases 
10:00 am EST
  • JOLTS Job Openings for Sept. are estimated to fall to 6050 versus 6082 in August.
3:00 pm EST
  • Consumer Credit for Sept. is estimated to rise to $17.750B versus $13.065B in August.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone Retail Sales report, $42B 3Y T-Note auction, weekly US retail sales reports, Baird Industrial Conference, Stephens Fall Investment Conference, Wells Fargo Tech/Media/Telecom Conference and the RBC Tech/(PSMT) monthly sales report 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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