Tuesday, April 24, 2018

Wednesday Watch

Evening Headlines
  • Asia Stocks Follow U.S. Lower; Bonds Pare Losses: Markets Wrap. Asian stocks followed their U.S. counterparts lower with industrial shares leading the decline. The 10-year Treasury yield pared gains after piercing the 3 percent level for the first time in four years. Shares in Japan and Korea opened lower. The S&P 500 closed down 1.3 percent weighed by stocks including industrial bellwether Caterpillar Inc. and the Nasdaq 100 Index fell 2.1 percent. The dollar steadied after coming off its highest since January, while crude climbed back toward $68 a barrel. Australian equity and bond markets are shut for a holiday. The MSCI Asia Pacific fell 0.2 percent as of 9:43 a.m. Tokyo time. Topix Index fell 0.5 percent. Kospi Index dropped 0.7 percent.  
Night Trading 
  • Asian equity indices are -.75% to -.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 77.0 unch. 
  • Asia Pacific Sovereign CDS Index 12.0 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 73.79 -.04%.
  • FTSE 100 futures -.57%.
  • S&P 500 futures +.03%.
  • NASDAQ 100 futures -.02%.
Morning Preview Links

Earnings of Note

  • (BA)/2.59
  • (BSX)/.32
  • (CHKP)/1.28
  • (CMCSA)/.59
  • (DPS)/1.06
  • (FLIR)/.42
  • (GD)/2.48
  • (GT)/.46
  • (HES)/-.51
  • (IR)/.62
  • (LH)/2.63
  • (NSC)/1.77
  • (NOC)/3.62
  • (SOHU)/-2.36
  • (TUP)/.89
  • (TWTR)/.11
  • (VIAB)/.79
  • (AMD)/.09
  • (AFL)/.97
  • (T)/.88
  • (BGG)/.82
  • (CAKE)/.68
  • (CMG)/1.56
  • (EBAY)/.53
  • (FFIV)/2.27
  • (FB)/1.38
  • (F)/.41
  • (KNX)/.40
  • (LVS)/.85
  • (OII)/-.33
  • (PYPL)/.54
  • (QCOM)/.71
  • (RJF)/1.63
  • (VAR)/1.04
  • (V)/1.01
  • (XLNX)/.71
Economic Releases
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -1,544,500 barrels versus a -1,071,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -1,417,900 barrels versus a -2,968,000 barrel decline the prior week. Distillate inventories are estimated to fall by -1,241,300 barrels versus a -3,107,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.01% versus a -1.1% decline the prior week.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The $35B 5Y T-Note auction, Japan Bond Purchases, weekly MBA Mortgage Applications report, (ACN) analyst conference and the (ANF) investor day could also impact trading today.
BOTTOM LINE:  Asian indices are lower, weighed down by industrial and technology shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 25% net long heading into the day.

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