Tuesday, December 11, 2018

Wednesday Watch

Evening Headlines
  • Asian Stocks Head Higher, Treasuries Hold Drop. Asian equities advanced after a volatile U.S. session with investors continuing to assess the prospect for a trade deal and averting another American-government shutdown. The yield on 10-year Treasuries held steady. Japanese and Australian stocks rose and futures indicated gains in Hong Kong and China, while contracts on the S&P 500 Index edged lower. Wednesday began with news that Huawei Technologies Co. Chief Financial Officer Meng Wanzhou was granted bail by a Canadian court. U.S. President Donald Trump said he could intervene in the case if it aids the China trade deal. A rally in U.S. stocks was snuffed out and the S&P 500 ended Tuesday flat. Japan’s Topix index added 0.9 percent as of 9:03 a.m. in Tokyo. Hong Kong’s Hang Seng Index futures rose 0.7 percent. FTSE China A50 futures gained 0.8 percent. Australia’s S&P/ASX 200 Index gained 0.3 percent. Futures on the S&P 500 slid 0.2 percent.    
Wall St. Journal:
Zero Hedge:  
Night Trading 
  • Asian equity indices are +.5% to +1.0% on average.
  • Asia Ex-Japan Investment Grade CDS Index 95.0 -3.0 basis points. 
  • Asia Pacific Sovereign CDS Index 9.75 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 66.83 +.09%.
  • FTSE 100 futures +.20%.
  • S&P 500 futures +.26%.
  • NASDAQ 100 futures +.29%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (PLAB)/.17
  • (VRA)/.16
After the Close:
  • (NDSN)/1.47
  • (OXM)/.17
  • (TLRD).94
Economic Releases
8:30 am EST
  • The CPI MoM for November is estimated unch. versus a +.3% gain in October.
  • The CPI Ex Food and Energy MoM for November is estimated to rise +.2% versus a +.2% gain in October. 
  • Real Avg. Weekly Earnings YoY for November.
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -3,167,910 barrels versus a -7,323,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +1,932,500 barrels versus a +1,699,000 barrel gain the prior week. Distillate inventories are estimated to rise +1,471,800 barrels versus a +3,811,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to rise by +.41% versus a -.1% decline prior.
2:00 pm EST
  • The Monthly Budget Deficit for November is estimated to widen to -$198.0B versus -$100.5B in October.
Upcoming Splits
  • (EBIX) 5-for-1
Other Potential Market Movers
  • The Eurozone Industrial Production report, monthly OPEC Oil Market Report, weekly MBA Mortgage Applications report, BMO Healthcare Conference, (CS) investor day, (LOW) analyst meeting, (HES) investor day, (BF/A) investor day, (UA) investor day and the (DOX) investor day 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 mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 75% net long heading into the day.

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