Monday, December 03, 2018

Tuesday Watch

Evening Headlines
  • Asian Stock Rally Stalls; U.S. Curve Flattens. Asian stocks slipped Tuesday, signaling fading investor applause for the U.S.-China trade truce. A portion of the Treasury yield curve inverted for the first time in more than a decade. Stocks in Japan, Korea and Australia posted modest losses while Hong Kong futures pointed lower. Earlier, the S&P 500 Index closed higher on the trade news, while the dollar weakened and oil gained. In the Treasury market, three-year yields climbed above five-year ones, showing that traders are pricing in the end of the Federal Reserve’s interest-rate hike campaign. Ten-year yields steadied below 3 percent. The MSCI Asia Pacific Index fell 0.1 percent at 9:05 a.m. Tokyo time. Japan’s Topix Index fell 0.2 percent. Hang Seng futures fell 0.6 percent overnight. The S&P/ASX 200 fell 0.2 percent.   
Wall St. Journal:
Zero Hedge:     
Night Trading 
  • Asian equity indices are -.5% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 90.0 -3.75 basis points. 
  • Asia Pacific Sovereign CDS Index 9.25 -1.0 basis point.
  • Bloomberg Emerging Markets Currency Index 67.46 -.05%.
  • FTSE 100 futures +.02%.
  • S&P 500 futures -.26%.
  • NASDAQ 100 futures -.32%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (AZO)/12.22
  • (AVYA)/.94
  • (DG)/1.27
  • (DCI)/.57
  • (HDS)/.99
  • (MOV)/1.12
After the Close:
  • (HQY)/.25
  • (HPE)/.43
  • (MRVL)/.32
  • (OLLI)/.31
  • (TOL)/1.84
  • (ZS)/-.05
Economic Releases
  • None of note
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Pres. Trump meeting with German automakers, RBA rate decision, weekly US retail sales reports, Citi Consumer Conference, Goldman Financial Services Conference, (WDC) investor day and the (EW) investor conference could also impact trading today.
BOTTOM LINE:  Asian indices are mostly lower, weighed down by technology and Metals/Mining shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 100% net long heading into the day.

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