Monday, December 10, 2018

Tuesday Watch

Evening Headlines
  • Stocks Mixed as U.S. Rebounds, Pound Holds Losses. Asian stocks opened mixed as investors shrugged off a rebound in their U.S. counterparts from sharp losses, with trade and U.K. political concerns lingering. The pound held onto a slump after U.K. Prime Minister Theresa May delayed a critical vote on a Brexit deal. Benchmarks in Japan nudged lower, while stocks rose in Australia from a two-year low and South Korean shares were little changed. U.S. futures declined even after the S&P 500 Index recovered from the lowest intraday level since April to finish higher, buoyed by rallies in Facebook Inc. and Microsoft Corp. The dollar maintained gains and Treasuries were little changed. In Asia, Indian assets face pressure after the surprise resignation of the central bank’s governor. Derivatives tipped a rupee plunge. Japan’s Topix index fell 0.3 percent as of 9:13 a.m. in Tokyo. Australia’s S&P/ASX 200 Index gained 0.4 percent after reaching a two-year low. Hong Kong’s Hang Seng Index contracts fell 0.8 percent overnight. S&P 500 futures fell 0.3 percent.  
Wall St. Journal:
Zero Hedge:   
Night Trading 
  • Asian equity indices are -.5% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 98.0 +.25 basis point. 
  • Asia Pacific Sovereign CDS Index 10.0 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 66.83 -.01%.
  • FTSE 100 futures +.35%.
  • S&P 500 futures -.43%.
  • NASDAQ 100 futures -.54%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (DSW)/.51
  • (FRAN)/-.18
After the Close:
  • (AEO)/.48
  • (PLAY)/.24
  • (PVTL)/0-.08
Economic Releases
6:00 am EST
  • The NFIB Small Business Optimism Index for November is estimated to fall to 107.0 versus 107.4 in October.
8:30 am EST
  • The PPI Final Demand MoM for November is estimated unch. versus a +.6% gain in October.
  • The PPI Ex Food and Energy MoM for November is estimated to rise +.1% versus a +.5% gain in October.
Upcoming Splits
  • (EBIX) 5-for-1
Other Potential Market Movers
  • The UK GDP report, Australia Home Price report, WasDe Crop report, US weekly retail sales reports, Cowen Networking/Cybersecurity Summit, (FSLR) financial guidance/outlook conference call, (URI) investor day and (THS) investor day could also impact trading today.
BOTTOM LINE:  Asian indices are mostly 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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