Tuesday, June 26, 2018

Wednesday Watch

Evening Headlines
Bloomberg: 
  • Asian Stocks Set for Mixed Start; Oil Rallies. Asian stocks headed for a muted start to trading Wednesday after a rally in U.S. oil stocks helped the S&P 500 close higher even as concerns linger over the impact of potential global trade restrictions. Chinese assets will be in the spotlight again with both the currency and stocks under pressure. Futures for equity indexes in Japan and Hong Kong were little changed after the S&P 500 Index climbed back above its average level over the past 50 days. Energy companies led gains in American shares after oil rose above $70 a barrel following reports the U.S. is pressing allies to halt imports of Iranian crude. The dollar jumped versus major peers and Treasuries steadied after recent gains. Futures on Japan’s Nikkei 225 were trading close to the level seen at the close of the cash equity market in Tokyo Tuesday. Futures on Hong Kong’s Hang Seng Index added 0.1 percent.   
Business Insider:
Night Trading 
  • Asian equity indices are unch. to +.50% on average.
  • Asia Ex-Japan Investment Grade CDS Index 86.0 +.25 basis point. 
  • Asia Pacific Sovereign CDS Index 14.0 unch.
  • Bloomberg Emerging Markets Currency Index 69.77 unch.
  • FTSE 100 futures +.25%.
  • S&P 500 futures +.11%.
  • NASDAQ 100 futures +.12%.
Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:
  • (GIS)/.72
  • (PAYX)/.62
After the Close:
  • (BBBY)/.32
  • (CAMP)/.28
  • (FUL)/.85
  • (PIR)/-.39
  • (PRGS)/.53
  • (RAD)/-.01
  • (WOR)/1.04
Economic Releases
8:30 am EST
  • Wholesale Inventories MoM for May are estimated to rise +.2% versus a +.1% gain in April.
  • Advance Goods Trade Balance for May is estimated at -$69.0B versus -$67.3B in April. 
  • Durable Goods Orders for May are estimated to fall -1.0% versus a -1.6% decline in April.
  • Durables Ex Transports for May are estimated to rise +.5% versus a +.9% gain in April.
  • Cap Goods Orders Non-Defense Ex-Air for May are estimated to rise +.5% versus a +1.0% gain in April.
10:00 am EST
  • Pending Home Sales MoM for May are estimated to rise +.5% versus a -1.3% decline in April.
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,219,830 barrels versus a -5,914,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +1,132,670 barrels versus a +3,277,000 barrel decline the prior week. Distillate inventories are estimated to rise by +1,062,420 barrels versus a +2,715,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to fall by -.09% versus a +1.0% gain prior.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Rosengren speaking, Fed's Quarles speaking, Japan retail trade report, $36B 5Y T-Note auction, weekly MBA Mortgage Applications report, (CMG) investor call, (MNKD) investor meeting and the (LEA) investor day could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by industrial 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.

No comments: