Tuesday, June 05, 2018

Wednesday Watch

Evening Headlines
  • Mnuchin Favors Less Sweeping Investment Limits for China, Sources Say. The Treasury Department wants President Donald Trump to rely on legislation to tighten scrutiny of Chinese investments in the U.S. instead of an executive move imposing sweeping new limits, according to three people familiar with the matter. Treasury Secretary Steven Mnuchin has until the end of June to present to the president his department’s final recommendations on Chinese investment curbs. Trump directed Mnuchin to draw up the restrictions as part of a probe into China’s alleged theft of intellectual property that also allows the imposition of tariffs.
  • Asian Stocks Trade Mixed as Global Rally Pauses. Stocks in Asia opened mixed Wednesday as a global rally in risk assets that sent U.S. equities to three-months highs stalled amid a backdrop of protectionism and geopolitical issues. Treasury yields ticked higher and the dollar pared gains. Equities were little changed in Japan and rose in Australia, while South Korean markets were closed for a holiday. Earlier, advances in megacap tech shares helped support the Nasdaq indexes, pushing them to fresh records for a second straight day. Italian bonds tumbled after the nation’s premier pledged a raft of populist measures. Crude oil was on track to rise for a second day. Topix index was little changed as of 9:28 a.m. in Tokyo. S&P/ASX 200 Index rose 0.5 percent. Hang Seng Index futures fell 0.2 percent. S&P 500 Index futures were flat.
Business Insider:
Night Trading 
  • Asian equity indices are unch. to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 77.0 +.5 basis point
  • Asia Pacific Sovereign CDS Index 12.75 unch.
  • Bloomberg Emerging Markets Currency Index 70.98 +.03%.
  • FTSE 100 futures -.12%.
  • S&P 500 futures +.06%.
  • NASDAQ 100 futures +.12%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (BF/B)/.23
  • (SIG)/-.10
After the Close:
  • (FIVE)/.33
  • (OKTA)/-.16
  • (THO)/2.60
  • (UNFI)/.92
Economic Releases
8:30 am EST
  • The Trade Deficit for April is estimated at -$49.0B versus -$49.0B in March.
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,264,170 barrels versus a -3,620,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +160,500 barrels versus a +534,000 barrel gain the prior week. Distillate inventories are estimated to rise by +564,000 barrels versus a +634,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to rise by +.3% versus a +2.1% gain prior.
Upcoming Splits
  • (EXPO) 2-for-1
  • (PFBI) 5-for-4
Other Potential Market Movers
  • The Eurozone Retail PMI report, weekly MBA mortgage applications report, Deutsche Bank Industrials/Materials Conference, Goldman Sachs European Financials Conference, Deutsche Bank Financial Services Conference, Citi Small/Mid-Cap Conference, (FAST) April Sales report, (LB) Sales report, (COST) May sales results and the (A) analyst meeting 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 mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the day.

No comments: