Tuesday, August 07, 2018

Wednesday Watch

Evening Headlines
  • Yuan Holds Gains; Asia Stocks Set for Mixed Start. China’s yuan held on to gains triggered by further moves to stabilize the currency and U.S. stocks approached a fresh all-time high. Asian equities looked set for a mixed start to Wednesday trading. Futures pointed to gains for equities in Hong Kong and China, while Japan and Australian shares faced a muted open. The S&P 500 Index closed at the highest level since its Jan. 26 peak. A rise in emerging-market equities overshadowed rising woes in Turkey, where the yield on the country’s 10-year bonds touched a record high amid a diplomatic spat with the U.S. Futures on Japan’s Nikkei 225 were little changed in Singapore. Futures on the FTSE China A50 Index rose 0.3 percent. Futures on Hong Kong’s Hang Seng advanced 0.5 percent. Futures on Australia’s S&P/ASX 200 Index were little changed.
Zero Hedge:  
Night Trading 
  • Asian equity indices are unch. to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 79.75 -1.75 basis points. 
  • Asia Pacific Sovereign CDS Index 10.0 -.75 basis point.
  • Bloomberg Emerging Markets Currency Index 69.27 -.04%.
  • FTSE 100 futures -.02%
  • S&P 500 futures +.03%.
  • NASDAQ 100 futures +.01%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (CVS)/1.61
  • (DLPH)/1.24
  • (JLL)/2.22
  • (LITE)/.65
  • (MGA)/1.74
  • (MYL)/1.22
  • (SINA)/.72
  • (WB)/.66
  • (WWW)/.46
After the Close:
  • (CVNA)/-.34
  • (IAC)/1.53
  • (JACK)/.88
  • (MNST)/.47
  • (NTES)/2.72
  • (NKTR)/5.29
  • (YELP)/.28
Economic Releases 
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,164,000 barrels versus a +3,803,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -1,796,920 barrels versus a -2,536,000 barrel decline the prior week. Distillate inventories are estimated to rise by +731,000 barrels versus a +2,983,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to fall by -.13% versus a +2.3% gain prior.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Barkin speaking, China Trade Data report, Japan Machine Orders report, $26B 10Y T-Note auction, weekly MBA Mortgage Applications report, Canaccord Growth Conference, (COST) monthly sales report, (ZUMZ) sales/guidance update and the (FRPT) investor day could also impact trading today.
BOTTOM LINE:  Asian indices are modestly 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.

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