Thursday, December 06, 2018

Friday Watch

Evening Headlines
  • Asia Stocks Rise After U.S. Rebound; Yields Steady. Asian stocks advanced following an afternoon rally in the U.S. that erased most of the day’s losses. Equities are still headed for a weekly slide in a volatile period for markets, with investors grappling with shifting indications on U.S.-China trade talks and prospects for a pause in Federal Reserve tightening. Japanese shares climbed with those in South Korea and Australia. Futures on the S&P 500 Index were little changed after the U.S. equity market recovered the bulk of the day’s declines on Thursday, though still ended lower. Ten-year Treasury yields stayed near 2.90 percent. The dollar was mixed overnight, rising against the Aussie and kiwi while dropping versus the yen and Swiss franc on haven demand. Next up for embattled traders: the monthly U.S. payrolls report Friday. Japan’s Topix index added 0.9 percent as of 9:05 a.m. in Tokyo. Hang Seng futures fell 0.9 percent overnight. FTSE China A50 Index futures rose 0.3 percent. Australia’s S&P/ASX 200 Index gained 0.8 percent. Futures on the S&P 500 were little changed.  
Wall St. Journal:
Zero Hedge:         
Night Trading 
  • Asian equity indices are +.25% to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 94.75 +1.0 basis point. 
  • Asia Pacific Sovereign CDS Index 9.75 unch.
  • Bloomberg Emerging Markets Currency Index 67.06 +.03%.
  • FTSE 100 futures +1.78%.
  • S&P 500 futures +.06%.
  • NASDAQ 100 futures +.12%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (BIG)/0.00
  • (MTN)/-2.43
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • The Change in Non-Farm Payrolls for November is estimated to fall to 199K versus 250K in October.
  • The Unemployment Rate for November is estimated at 3.7% versus 3.7% in October.
  • Average Hourly Earnings MoM for November is estimated to rise +.3% versus a +.2% gain in October.
10:00 am EST
  • Wholesale Trade Sales MoM for October.
  • Preliminary Univ. of Mich. Consumer Sentiment for December is estimated to fall to 97.0 versus 97.5 in November.
3:00 pm EST
  • Consumer Credit for October is estimated to rise to $15.0B versus $10.923B in September.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Brainard speaking, Eurozone GDP/Industrial Production reports, Huawei Technologies CFO bail hearing, (PSMT) monthly sales report and the (ITW) 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 modestly lower and to rally into the afternoon, finishing modestly higher.  The Portfolio is 75% net long heading into the day.

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