Monday, June 11, 2018

Tuesday Watch

Evening Headlines
  • Asia Stocks Set to Gain Ahead of Trump-Kim Summit. Asian stocks are set for a positive open as investors look beyond weekend trade ructions to focus on the three major central bank meetings this week and Tuesday’s historic summit between President Donald Trump and North Korea’s leader. Equity index futures were higher in Japan, Australia and Hong Kong. The S&P 500 Index rose Monday for the second straight session, though it gave up some gains just before the close. The dollar climbed and U.S. Treasury yields ticked higher. The pound fell as Theresa May’s landmark Brexit legislation goes to Parliament. Futures on the Nikkei 225 Stock Average rose 0.4 percent in Singapore. S&P/ASX 200 Index futures were up 0.4 percent. Hang Seng Index futures gained 0.1 percent. S&P 500 futures were little changed as of 7:01 a.m. in Tokyo.
Night Trading 
  • Asian equity indices are -.25% to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 78.75 +.75 basis point 
  • Asia Pacific Sovereign CDS Index 13.0 unch.
  • Bloomberg Emerging Markets Currency Index 70.83 -.09%.
  • FTSE 100 futures -.10%.
  • S&P 500 futures -.03%.
  • NASDAQ 100 futures -.05%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (CASY)/.66
  • (JW/A)/.79
  • (LE)/-.17
After the Close:
  • (HRB)/5.27
  • (OXM)/1.23
Economic Releases
6:00 am EST
  • The NFIB Small Business Optimism Index for May is estimated to rise to 105.0 versus 104.8 in April.
8:30 am EST
  • The CPI MoM for May is estimated to rise +.2% versus a +.2% gain in April.
  • The CPI Ex Food & Energy for May is estimated to rise +.2% versus a +.1% gain in April.
  • Real Avg. Weekly Earnings YoY for May.
2:00 pm EST
  • The Monthly Budget Statement for May is estimated at -$139.5B versus $214.3B in April.
Upcoming Splits
  • (TREX) 2-for-1
  • (HBNC) 3-for-2
Other Potential Market Movers
  • The Eurozone ZEW Index, monthly OPEC market report, $14B 30Y T-Note auction, WasDe Crop report, US weekly retail sales reports, Morgan Stanley US Financials Conference, Entertainment Electronics Expo, Deutsche Bank Consumer Conference, William Blair Growth Stock Conference, Wells Fargo Energy Conference and the Goldman Sachs Healthcare Conference could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by technology and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing modestly higher.  The Portfolio is 75% net long heading into the day.

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