Wednesday, August 08, 2018

Thursday Watch

Evening Headlines
  • Asia Stocks Signal Decline on Trade; Kiwi Slips. Asia stocks looked set to drop as China hit back against the Trump administration’s latest tariffs and tensions ratcheted up between the U.S. and Russia. Oil tumbled. Futures pointed to a lower open for stocks in Hong Kong, Japan and China. The S&P 500 Index was little changed, remaining about half a percentage point shy of its all-time record. Treasuries edged up as investors scooped up a record $26 billion 10-year auction. The ruble slumped as the U.S. announced new sanctions on Russia. The kiwi declined after the New Zealand central bank pushed out its forecast for a rate increase by a year as the outlook for economic growth weakens. Futures on Japan’s Nikkei 225 fell 0.4 percent in Singapore. Futures on the FTSE China A50 Index lost 0.1 percent. Futures on Hong Kong’s Hang Seng Index declined 0.2 percent.  
Business Insider:
Night Trading 
  • Asian equity indices are -.25% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 79.25 -.5 basis point. 
  • Asia Pacific Sovereign CDS Index 10.25 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 68.95 -.02%.
  • FTSE 100 futures -.05%
  • S&P 500 futures -.04%.
  • NASDAQ 100 futures -.10%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (GOOS)/-.22
  • (DDS)/-.48
  • (LOXO)/-1.56
  • (VIAB)/1.07
After the Close:
  • (DBX)/.06
  • (MCHP)/1.48
  • (NWSA)/.06
  • (OSTK)/-.82
  • (RDFN)/.01
  • (OLED)/.17
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 rise to 1730K versus 1724K prior.
  • PPI Final Demand MoM for July is estimated to rise +.2% versus a +.3% gain in June.
  • PPI Ex Food and Energy MoM for July is estimated to rise +.2% versus a +.3% gain in June.
10:00 am EST
  • Wholesale Trade Sales MoM for June is estimated to rise +.2% versus a +2.5% gain in May.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Evans speaking, China CPI report, US/Japan trade talks, Japan GDP report, $18B 30Y T-Note auction, Bloomberg Aug. US Economic Survey, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report, CSFB SMid-Cap Conference, (BKE) sales update and the (CATO)/(LB) sales updates with guidance could also impact trading today.
BOTTOM LINE:  Asian indices are mostly lower, weighed down by consumer and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 100% net long heading into the day.

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