Wednesday, December 20, 2017

Thursday Watch

Evening Headlines
  • Asian Equities Dip as Cheer Ebbs Over U.S. Tax Cut. (video) Benchmark gauges in Sydney, Tokyo and Hong Kong dipped after the S&P 500 Index gave back a rally of as much as 0.4 percent to close down for the session in New York. Treasuries continued to slide Wednesday, led by the long-end, with 10-year yields breaching 2.5 percent for the first time since March. The euro is within a cent of its high for the month. Japan’s Topix Index fell 0.2 percent as of 10:35 a.m. in Tokyo. The Nikkei 225 Stock Average declined 0.4 percent. Hong Kong’s Hang Seng Index fell 0.2 percent, and the Shanghai Composite Index lost 0.4 percent. Futures on the S&P 500 Index were little changed after the underlying gauge slid 0.1 percent to 2,679.25 Wednesday. Australia’s S&P/ASX 200 Index was down 0.2 percent.
  • House Republican Leaders Push Bare-Bones Temporary Funding. Republican leaders in the House are pushing lawmakers to pass a bare-bones stopgap funding plan that would avert a government shutdown on Saturday and force the Senate to abandon attempts to add provisions on health care and other issues.
Wall Street Journal:
Night Trading 
  • Asian equity indices are -.5% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 68.25 -.25 basis point
  • Asia Pacific Sovereign CDS Index 13.25 unch.
  • Bloomberg Emerging Markets Currency Index 73.78 unch.
  • S&P 500 futures +.07%.
  • NASDAQ 100 futures +.05%.
Morning Preview Links

Earnings of Note

  • (ACN)/1.67
  • (APOG)/.96
  • (KMX)/.81
  • (CAG)/.52
  • (FINL)/-.36
  • (HOV)/.01
  • (LNN)/.36
  • (PAYX)/.59
  • (CTAS)/1.28
  • (NKE)/.40
Economic Releases
8:30 am EST
  • The Philly Fed Business Outlook for December is estimated to fall to 21.0 versus 22.7 in November.
  • 3Q GDP is estimated to rise +3.3% versus a prior estimate of a +3.3% gain.
  • 3Q Personal Consumption is estimated to rise +2.3% versus a prior estimate of a +2.3% gain.
  • 3Q GDP Price Index is estimated to rise +2.1% versus a prior estimate of a 2.1% gain.
  • 3Q Core PCE QoQ is estimated to rise +1.4% versus a prior estimate of a +1.4% gain.
  • Initial Jobless Claims for last week are estimated to rise to 233K versus 225K the prior week.
  • Continuing Claims are estimated to rise to 1898K versus 1886K prior.
  • The Chicago Fed National Activity Index for November is estimated to fall to .5 versus .65 in October.
9:00 am EST
  • The FHFA House Price Index MoM for October is estimated to rise +.4% versus a +.3% gain in September.
10:00 am EST
  • The Leading Index for November is estimated to rise +.4% versus a +1.2% gain in October.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The BoJ rate decision, weekly Bloomberg Consumer Comfort Index and the EIA natural gas inventory report could also impact trading today.
BOTTOM LINE:  Asian indices are mostly lower, weighed down by consumer 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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