Monday, December 17, 2018

Tuesday Watch

Evening Headlines
  • Asia Braces for Slide as S&P 500 Hits 14-Month Low. A sell-off in U.S. stocks that sent the S&P 500 Index to its lowest close in 14 months looks set to spread to Asia as investors awaited the Federal Reserve’s rate decision and assessed the outlook for global growth. Futures fell in Japan, Australia and China after the S&P 500 finished Monday at the lowest since October 2017 and the Russell 2000 Index of smaller companies entered a bear market. The dollar dropped, while Treasuries gained. West Texas crude settled below $50 for the first time since October 2017 as glut fears grew. Chinese assets will be closely watched as President Xi Jinping gives a speech on the nation’s reform path. Futures on the Nikkei 225 fell 2.4 percent in Singapore. Australia’s S&P/ASX 200 Index futures were down 1.5 percent. FTSE China A50 futures dropped 0.5 percent. Hong Kong’s Hang Seng Index futures were little changed.  
Wall St. Journal:
Zero Hedge:
Night Trading 
  • Asian equity indices are -1.25% to -.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 91.5 -1.5 basis points
  • Asia Pacific Sovereign CDS Index 9.25 -.5 basis point.
  • Bloomberg Emerging Markets Currency Index 66.83 +.02%.
  • FTSE 100 futures -.60%.
  • S&P 500 futures +.26%.
  • NASDAQ 100 futures +.34%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (DRI)/.91
  • (FDS)/2.29
  • (NAV)/1.75
  • (WOR)/.73
After the Close:
  • (AIR)/.57
  • (ABM)/.56
  • (FDX)/3.94
  • (JBL)/.88
  • (MU)/2.96
  • (SCS)/.30
Economic Releases
8:30 am EST
  • Housing Starts for November are estimated to fall to 1225K versus 1228K in October.
  • Building Permits for November are estimated to fall to 1260K versus 1263K in October.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Japan Trade Balance report, weekly US retail sales reports, (ELAN) financial guidance, (AGCO) analyst meeting and the (THS) analyst meeting could also impact trading today.
BOTTOM LINE:  Asian indices are lower, weighed down by technology and industrial 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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