Tuesday, May 15, 2018

Wednesday Watch

Evening Headlines
Bloomberg:    
  • Asian Stocks Decline as U.S. Treasury Yields Climb. Stocks in Asia followed their American counterparts lower as geopolitical developments and rising benchmark U.S. yields spurred a return of risk aversion. Equities in Japan and Korea were lower after U.S. stocks halted a four-day rally with the steepest slide in almost two weeks. Australian shares bucked the trend. Earlier, yields on 10-year Treasury notes rose to 3.07 percent, the highest since 2011, after upbeat U.S. retail sales data fueled bets the Federal Reserve may raise interest rates three more times this year. Bloomberg’s dollar index steadied close to a 2018 high. In emerging-markets, equities dropped the most since March and currencies slumped the most in a year. The MSCI Asia Pacific Index fell 0.1 percent as of 9:21 a.m. Tokyo time. Topix index fell 0.2 percent. Kospi index fell 0.4 percent. Australia’s S&P/ASX 200 Index rose 0.1 percent. Futures on the S&P 500 Index fell less than 0.05 percent.
Night Trading 
  • Asian equity indices are -.75% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 76.0 +1.5 basis points. 
  • Asia Pacific Sovereign CDS Index 12.25 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 71.47 -.07%.
  • FTSE 100 futures -.03%.
  • S&P 500 futures +.05%.
  • NASDAQ 100 futures +.02%.
Morning Preview Links

Earnings of Note
Company/Estimate

  • (CSIQ)/.42
  • (M)/.35
  • (CSCO)/.65
  • (FLO)/.31
  • (JACK)/.86
  • (NTES)/2.34
  • (TTWO)/.63
Economic Releases
8:30 am EST
  • Housing Starts for April are estimated to fall to 1310K versus 1319K in March. 
  • Building Permits for April are estimated to fall to 1350K versus 1354K in March.
 9:15 am EST
  • Industrial Production MoM for April is estimated to rise +.6% versus a +.5% gain in March.
  • Capacity Utilization for April is estimated to rise to 78.4% versus 78.0% in March.
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -1,170,560 barrels versus a -2,197,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -1,403,630 barrels versus a -2,174,000 barrel decline the prior week. Distillate inventories are estimated to fall by -2,405,880 barrels versus a -3,791,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.7% versus a -.7% decline prior.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Bostic speaking, Fed's Bullard speaking, Japan Machine Orders report, China New Home Price report, Eurozone CPI report, weekly MBA Mortgage Applications report, JPMorgan Consumer Conference, BMO Farm to Market Conference, (HON) investor showcase, (FLIR) investor day, (ODP) investor day and the (WYN) investor meeting could also impact trading today.
BOTTOM LINE:  Asian indices are mostly lower, weighed down by technology and real estate shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 50% net long heading into the day.

No comments: