Monday, August 13, 2018

Tuesday Watch

Evening Headlines
  • Asian Stocks Set for Mixed Open; Dollar Holds Gain: Markets Wrap. Asian stocks pointed to a mixed opening Tuesday as the contagion from the economic crisis in Turkey remained relatively contained in developed markets overnight. U.S. stocks closed lower, the dollar rose to its highest in 14 months and Treasuries were little changed. Futures in Japan pointed to gains as the yen pared some of Monday’s rise. Australian and Korean futures were little changed while Hong Kong equivalents were lower. The S&P 500 Index declined for a fourth straight day, its longest losing streak in five months, though early signs that markets would buckle faded during the American trading day. Turkey’s lira steadied after slumping over 20 percent in four days while European banks dragged down stocks in the region, though equity measures closed well above the day’s lows. Still, emerging-market assets reeled. South Africa’s rand one-month implied volatility soared by the most since December 2015 while Argentina’s central bank unexpectedly hiked its key interest rate as the peso slumped to a record low. Nikkei 225 futures rose 0.6 percent in Singapore. Hang Seng futures fell 0.4 percent. SPI 200 futures rose 0.1 percent.  
Business Insider:
Night Trading 
  • Asian equity indices are +.25% to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 84.25 +.5 basis point. 
  • Asia Pacific Sovereign CDS Index 10.75 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 65.52 unch.
  • FTSE 100 futures +.10%
  • S&P 500 futures +.12%.
  • NASDAQ 100 futures +.21%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (AAP)/1.85
  • (EAT)/1.19
  • (ARRY)/-.30
  • (CSIQ)/.24
  • (HD)/2.85
  • (TPR)/.57
After the Close:
  • (A)/.63
  • (DDS)/-.48
  • (MYGN)/.33
  • (CREE)/.08
Economic Releases 
6:00 am EST
  • The NFIB Small Business Optimism for July is estimated to fall to 106.8 versus 107.2 in June.
8:30 am EST
  • The Import Price Index MoM for July is estimated unch. versus -.4% in June.
  • The Export Price Index MoM for July is estimated to rise +.2% versus a +.3% gain in June.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China Retail Sales/Industrial Production reports, Japan Industrial Production report, Eurozone GDP report, weekly US retail sales and the Wedbush Healthcare Conference could also impact trading today.
BOTTOM LINE:  Asian indices are higher, boosted by technology and consumer shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 50% net long heading into the day.

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