Thursday, December 20, 2018

Friday Watch

Evening Headlines
  • Asia Stocks Drop After U.S. Slide; Yen Holds Gains. Asian stock markets were mostly lower Friday morning and Japanese equities fell deeper into a bear market, with regional shares on course to round out the worst week since October. U.S. futures slipped after shares fell overnight. The dollar sank with Treasuries. Equities fell in Japan and South Korea and Australian shares reversed earlier gains. Futures in China and Hong Kong pointed to a muted start. The Nasdaq Composite on Thursday extended its loss from a recent peak to almost 20 percent as the rising threat of a government shutdown in the U.S. added to a litany of concerns weighing on equities. Shares turned sharply lower after President Donald Trump hardened his demands in the showdown with Congress over funding the government. Oil headed for a 10 percent slide this week. Japan’s Topix index fell 0.9 percent at the open in Tokyo. Futures on Hong Kong’s Hang Seng were little changed overnight. Australia’s S&P/ASX 200 Index were flat. Futures on the S&P 500 fell 0.3 percent.   
Wall St. Journal:
Zero Hedge:
Night Trading 
  • Asian equity indices are -1.0% to -.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 95.50 +3.0 basis points
  • Asia Pacific Sovereign CDS Index 11.75 unch.
  • Bloomberg Emerging Markets Currency Index 67.05 +.03%.
  • FTSE 100 futures -.49%.
  • S&P 500 futures -.23%.
  • NASDAQ 100 futures -.34%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (KMX)/1.00
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • Preliminary Durable Goods Orders for November are estimated to rise +1.6% versus a -4.3% decline in October.
  • Preliminary Durables Ex Transports for November are estimated to rise +.3% versus a +.2% gain in October.
  • Cap Goods Orders Non-Defense Ex Air for November are estimated to rise +.2% versus unch. in October.
10:00 am EST
  • Personal Income for November is estimated to rise +.3% versus a +.5% gain in October.
  • Personal Spending for November is estimated to rise +.3% versus a +.6% gain in October.
  • The PCE Core MoM for November is estimated to rise +.2% versus a +.1% gain in October.
11:00 am EST
  • The Kansas City Fed Manufacturing Activity Index for Dec. is estimated to fall to 13.0 versus 15.0 in November.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The UK GDP report and partial US govt funding deadline could also impact trading today.
BOTTOM LINE:  Asian indices are lower, weighed down by technology and commodity shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 50% net long heading into the day.

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