Tuesday, October 09, 2018

Wednesday Watch

Evening Headlines
Bloomberg:        
  • Asian Stocks Start Mixed; Treasuries Hold Gains. Asian stocks began Wednesday mixed following a volatile session for U.S. equities and as yields on Treasuries retreated from a seven-year peak. The dollar nudged lower. The recent sell-off in bonds and equities eased, with Japanese shares rising after four days of losses, while stocks were little changed in South Korea and Australia. Futures nudged higher in Hong Kong and China. The S&P 500 Index was dragged down by materials shares, after a profit warning in the sector, while technology shares rebounded from a three-day rout. The sell-off in Treasuries showed some signs of stabilizing as the yield on the 10-year benchmark edged down to 3.21 percent. The Bloomberg Dollar Spot Index continued edging lower after U.S. President Donald Trump said the Federal Reserve is moving too fast with interest-rate hikes. Japan’s Topix index rose 0.5 percent as of 9:23 a.m. in Tokyo. Futures on the FTSE China A50 Index added 0.1 percent. Futures on Hong Kong’s Hang Seng Index advanced 0.2 percent. Australia’s S&P/ASX 200 Index slipped 0.1 percent. South Korea’s Kospi dipped 0.1 percent. Futures on the S&P 500 were little changed.    
Wall St. Journal:
Telegraph:        
Night Trading 
  • Asian equity indices are -.5% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 84.75 -.5 basis point. 
  • Asia Pacific Sovereign CDS Index 10.0 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 66.34 +.08%.
  • FTSE 100 futures -.17%.
  • S&P 500 futures -.02%.
  • NASDAQ 100 futures -.02%.
Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:
  • (FAST)/.67
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • PPI Final Demand MoM for September is estimated to rise +.2% versus a -.1% decline in August.
  • PPI Ex Food and Energy MoM for September is estimated to rise +.2% versus a +.1% gain in August.
10:00 am EST
  • Wholesale Trade Sales MoM for August is estimated to rise +.5% versus unch. in July. 
Upcoming Splits
  • (SHOO) 3-for-2
Other Potential Market Movers
  • The Fed's Williams speaking, Fed's Evans speaking, Fed's Bostic speaking, Fed's Williams speaking, UK Trade Balance report, weekly MBA Mortgage Applications report, (COST) Sept. sales results and the (SAFM) investor conference 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 mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 50% net long heading into the day.

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