Wednesday, December 26, 2018

Thursday Watch

Evening Headlines
  • Asia Stocks Jump on Biggest U.S. Rally Since 2009. Asian stocks climbed on Thursday after the biggest rally in U.S. equities since 2009 offered relief from this month’s wrenching global market downturn. Japanese benchmarks jumped about 4 percent at the open and Australian shares advanced more than 1 percent as trading resumed after holidays there. Korean stocks were flat, however, and U.S. futures dipped, suggesting the follow-through from the blow-out session on Wall Street -- where key indexes climbed about 5 percent or more -- has limits. Crude oil prices built on gains of more than 8 percent overnight. Ten-year Treasury yields are holding around 2.80 percent. Some 99 percent of S&P 500 members finished in the green, the Dow Jones Industrial Average jumped more than 1,050 points for its biggest-ever point gain. The MSCI Asia Pacific Index rose 1.1 percent as of 9:08 a.m. in Tokyo. Japan’s Topix gained 3.9 percent and the Nikkei 225 rose 3.8 percent. Futures on the S&P 500 Index dipped 0.2 percent. The underlying gauge rose 4.96 percent at the close in New York, after falling within two points of a bear market earlier in the session. The Nasdaq 100 surged 6.2 percent and the Dow Jones Industrial Average rallied 1,086 points. Futures on the FTSE China A50 climbed 1.2 percent earlier. Kospi dropped 0.3 percent.  
Wall St. Journal:
Zero Hedge:   
Night Trading 
  • Asian equity indices are +1.0% to +1.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 98.75 -.25 basis point
  • Asia Pacific Sovereign CDS Index 11.75 unch.
  • Bloomberg Emerging Markets Currency Index 66.69 +.08%.
  • FTSE 100 futures +.86%.
  • S&P 500 futures -.33%.
  • NASDAQ 100 futures -.38%.
Morning Preview Links

Earnings of Note

Before the Open:
  • None of note
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • Initial Jobless Claims for last week are estimated to rise to 216K versus 214K the prior week.
  • Continuing Claims are estimated to fall to 1675K versus 1688K prior.
9:00 am EST
  • The FHFA House Price Index MoM for Oct. is estimated to rise +.3% versus a +.2% gain in Sept.
10:00 am EST
  • New Home Sales for November are estimated to rise to 566K versus 544K in Oct.
  • Conference Board Consumer Confidence for December is estimated to fall to 133.7 versus 135.7 in November.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China Industrial Profits report, Japan Trade Balance report, $32B 7Y T-Note auction and the Bloomberg weekly Consumer Comfort Index could also impact trading today.
BOTTOM LINE:  Asian indices are 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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