Sunday, December 02, 2018

Monday Watch

Today's Headlines
  • Trade Truce Brings Relief as S&P 500 Futures Jump. Risk appetite returned to markets early Monday, as U.S. equity futures climbed with the Australian dollar and China’s yuan after a truce between Washington and Beijing emerged from the Group-of-20 summit. U.S. President Donald Trump and his Chinese counterpart Xi Jinping agreedto pause the introduction of new tariffs and intensify their trade talks. S&P 500 Index futures jumped over 1.5 percent, while the Aussie and the currencies of South Africa, Turkey and Mexico all rose. Contracts also pointed to gains for Asian equities on Monday. Havens such as the Japanese yen slipped and the greenback was lower against most of its large developed-market counterparts. Crude climbed on an agreement between Saudi Arabia and Russia. Futures on the S&P 500 gained 1.4 percent. The S&P 500 closed up 0.8 percent on Friday. Australia’s S&P/ASX 200 Index rose 0.1 percent.
Night Trading
  • Asian indices are +1.0% to +1.5% on average.
  • Asia Ex-Japan Inventment Grade CDS Index 91.25 -2.5 basis points.
  • Asia Pacific Sovereign CDS Index 9.75 -.5 basis point.
  • Bloomberg Emerging Markets Currency Index 67.42 +.04%.
  • FTSE 100 futures +1.69%.
  • S&P 500 futures +1.48%.
  • NASDAQ 100 futures +1.78%.

Earnings of Note
Before the Open:
  • (FNSR)/.21
After the Close:
  • (COUP)/.23
  • (MESA)/.50
Economic Releases
10:00 am EST
  • Construction Spending MoM for October is estimated to rise +.4% versus unch. in September.
  • ISM Manufacturing for November is estimated to fall to 57.6 versus 57.7 in October.
  • ISM Prices Paid for November is estimated to fall to 70.0 versus 71.6 in October.
  • Wards Total Vehicle Sales for November are estimated to fall to 17.2M versus 17.5M in October.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Williams speaking, Fed's Brainard speaking, Eurozone PMI report, UBS Media/Communications Conference, Raymond James Tech Conference, Wells Fargo Tech Summit, BofA Merrill Leveraged Finance Conference, Cowen Energy/Natural Resources Conference, (F) November sales call and the (SLG) investor conference could also impact trading today.
BOTTOM LINE: Asian indices are higher, boosted by industrial and technology shares in the region. I expect US stocks to open sharply higher and to maintain gains into the afternoon.  The Portfolio is 100% net long heading into the week.

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