Wednesday, June 27, 2018

Thursday Watch

Evening Headlines
  • Asian Stocks Open Lower as Yen Advances on Trade. Asian stocks fell Thursday and the yen pushed higher as traders remained skeptical about the Trump administration’s announcement of less harsh measures on Chinese investments. Treasury yields steadied and the dollar pared gains. Stocks declined in Japan, Australia and South Korea as the S&P 500 Index reversed gains to close lower after White House economic adviser Larry Kudlow said the decision not to adopt a more stringent approach on trade did not represent a softer stance on China. Treasuries surged as the comments kept alive concern over the tensions between the world’s two biggest economies. Anxiety remains around Chinese assets after stocks lost almost $2 trillion in five months and the yuan remained under pressure. Japan’s Topix index fell 0.6 percent as of 9:30 a.m. in Tokyo. Australia’s S&P/ASX 200 Index lost 0.2 percent. South Korea’s Kospi index declined 0.6 percent. Futures on Hong Kong’s Hang Seng advanced 0.5 percent. S&P 500 futures rose 0.1 percent.
Night Trading 
  • Asian equity indices are -.5% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 94.75 +8.75 basis points. 
  • Asia Pacific Sovereign CDS Index 14.25 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 69.33 -.03%.
  • FTSE 100 futures -.23%.
  • S&P 500 futures +.19%.
  • NASDAQ 100 futures +.21%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (ACN)/1.72
  • (APOG)/.53
  • (LNN)/1.43
  • (MKC)/1.27
  • (WBA)/1.48
After the Close:
  • (KBH)/.48
  • (NKE)/.64
  • (SNX)/2.30
Economic Releases
8:30 am EST
  • Initial Jobless Claims for last week are estimated to rise to 220K versus 218K the prior week.
  • Continuing Claims are estimated to fall to 1718K versus 1723K prior.
11:00 am EST
  • Kansas City Fed Manufacturing Activity for June is estimated to fall to 26.0 versus 29.0 in May.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Bullard speaking, Eurozone Retail Sales report, Japan CPI report, $30B 7Y T-Note auction, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report, Credit Suisse Leisure Conference and the (MCK) investor day could also impact trading today.
BOTTOM LINE:  Asian indices are mostly lower, weighed down by financial and technology shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed.  The Portfolio is 50% net long heading into the day.

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