Tuesday, September 04, 2018

Wednesday Watch

Evening Headlines
Bloomberg:       
  • Asia Stocks Face Drop Amid EM Turmoil, Dollar Gain. Asian stocks were set for declines after the dollar strengthened and U.S. equities slipped amid continued pressure for many emerging markets and as trade tensions persisted. Futures on equity indexes fell in Japan, China, Hong Kong and Australia. The dollar climbed though some of its advance was pared following robust U.S. economic data which also pushed Treasury yields higher. Emerging-market currencies headed for the lowest close this year. Oil climbed as a storm threatened U.S. production on the Gulf Coast. Futures on Japan’s Nikkei 225 slid 0.3 percent in Singapore. Futures on Australia’s S&P/ASX 200 Index lost 0.3 percent. FTSE China A50 Index futures sank 0.4 percent. Futures on Hong Kong’s Hang Seng fell 0.9 percent.
Zero Hedge:
Night Trading 
  • Asian equity indices are -.25% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 84.25 +.25 basis point. 
  • Asia Pacific Sovereign CDS Index 11.75 +1.0 basis point
  • Bloomberg Emerging Markets Currency Index 64.95 unch.
  • FTSE 100 futures -.07%.
  • S&P 500 futures -.09%.
  • NASDAQ 100 futures -.11%.
Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:
  • (DLTH)/.14
  • (HDS)/.96
  • (VRA)/.16
After the Close:
  • (AVAV)/.31
  • (CLDR)/-.15
  • (CTRP)/.20
  • (CWK)/.56
  • (OLLI)/.36
  • (ZS)/-.05
Economic Releases 
8:30 am EST
  • The Trade Deficit for July is estimated to widen to -$50.2B versus -$46.3B in June.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Williams speaking, Fed's Kashkari speaking, Fed's Williams speaking, Fed's Bostic speaking, Eurozone Services PMI report, US weekly retail sales reports, weekly MBA Mortgage Applications report, (FB)/(GOOGL) testimonry to Senate, (TWTR) CEO testimony to House, (COST) August sales results, RBC Industrials Conference, Cowen Transport Conference, Goldman Retailing Conference, Keefe Bruyette Woods Insurance Conference, Citi Biotech Conference, Citi Tech Conference, Raymond James Bank Conference, Robert W. Baird Healthcare Conference, UBS Chemical/Paper/Packaging Conference, Wells Fargo Healthcare Conference, (SQM) investor day and the Barclays Consumer Staples Conference could also impact trading today.
BOTTOM LINE:  Asian indices are slightly lower, weighed down by commodity and consumer shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the day.

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