Monday, December 18, 2017

Tuesday Watch

Evening Headlines
  • How Central Banks Are Using Big Data to Help Shape Policy. Central bankers around the world have set up or are creating departments to embrace big data in the quest for deeper insight into the economies they manage."Isaac Asimov once said, ‘I do not fear computers. I fear the lack of them,’" David Hardoon, chief data officer at the Monetary Authority of Singapore, said in a recent speech."We are now starting to put in place the necessary tools, infrastructure and skillsets to harness the power of data science to unlock insights, sharpen surveillance of risks, enhance regulatory compliance and transform the way we do work."
  • Asian Stocks Hold Gains, Bond Yields Head Higher. Japanese shares were little changed, while those in Sydney and Seoul advanced after U.S. gauges climbed to fresh records. The yen gave back gains late in the U.S. session Monday, even as the dollar slid against most of its G-10 peers. South Africa’s rand reached its strongest since March as Cyril Ramaphosa won the ruling African National Congress party’s leadership contest. Ten-year U.S. yields are trading in the upper end of their range over the past seven weeks, and their Australian counterparts also rose Tuesday. Japan’s Topix Index was little changed as of 9:12 a.m. in Tokyo, while the Nikkei 225 Stock Average edged up 0.2 percent. Australia’s S&P/ASX 200 Index was up 0.4 percent. Futures on Hong Kong’s Hang Seng Index rallied 0.5 percent.
  • A Small Fintech Stock Surged 2,600% in a Week After Announcing It’s a Crypto Company. That’s how much the value of LongFin Corp. surged to after the microcap’s stock rocketed by as much as 2,600 percent since debuting Wednesday. Most of the gains came since Friday, when the company issued a press release saying it bough, “a blockchain-empowered global micro-lending solutions provider” that transacts only in cryptocurrencies.
Wall Street Journal:
Business Insider: 
Night Trading 
  • Asian equity indices are -.25% to +.50% on average.
  • Asia Ex-Japan Investment Grade CDS Index 69.25 -1.75 basis points. 
  • Asia Pacific Sovereign CDS Index 13.5 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 73.59 -.02%.
  • S&P 500 futures +.01%.
  • NASDAQ 100 futures +.02%.
Morning Preview Links

Earnings of Note

  • (CCL)/.51
  • (DRI)/.70
  • (FDS)/1.97
  • (NAV)/.63
  • (WOR)/.67
  • (FDX)/2.88
  • (MU)/2.19
  • (RHT)/.70
  • (SCS)/.23
Economic Releases
8:30 am EST
  • Housing starts for November are estimated to fall to 1249K versus 1290K in October.
  • Building Permits for November are estimated to fall to 1273K versus 1297K in October.
  • The 3Q Current Account Balance is estimated at -$116.0B versus -$123.1B in 2Q.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Kashkari speaking, German IFO report, weekly US retail sales reports, (AGCO) analyst meeting and the (LOGM) investor day could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by commodity 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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