Sunday, January 27, 2019

Monday Watch

Today's Headlines
Bloomberg:  
  • Asia Stocks Start Week Mixed, Yen Creeps Higher. Asian stocks were mixed early Monday at the start of a crucial week for global trade and a policy meeting of the Federal Reserve. Japanese shares posted modest losses while Korean equities were little changed. Australian stocks were closed for a holiday. U.S. futures slipped, after shares finished the week higher Friday on corporate earnings and as lawmakers agreed to re-open the government on an interim basis. Treasury yields edged lower and the dollar steadied. The yen pushed higher. In an event-filled week, while Chinese Vice Premier Liu He travels to Washington for trade talks and Fed Chairman Jerome Powell gets a fresh chance to communicate to markets at a press briefing, the U.K. Parliament votes on amendments to Brexit legislation. Investors are also bracing for a flurry of U.S. economic figures including GDP and employment data, the release of which had been delayed thanks to the government shutdown. Japan’s Topix falls 0.2 percent at 9:10 a.m. Tokyo time. Kospi little changed. S&P 500 futures fall 0.2 percent. The S&P 500 Index rose 0.9 percent Friday, while the Nasdaq Composite Index gained 1.3 percent.
Night Trading
  • Asian indices are -.25% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 83.5 -1.5 basis points.
  • China Sovereign CDS 57.75 -1.25 basis points.
  • Bloomberg Emerging Markets Currency Index 68.23 +.10%.
  • FTSE 100 futures -.39%.
  • S&P 500 futures -.31%.
  • NASDAQ 100 futures -.35%.

Earnings of Note
Company/Estimate
Before the Open:
  • (AMG)/3.53
  • (CAT)/2.99
After the Close:
  • (AKS)/.11
  • (BRO)/.27
  • (CE)/2.40
  • (CR)/1.53
  • (ETH)/.46
  • (SANM)/.70
  • (WHR)/4.25
Economic Releases
8:30 am EST
  • The Chicago Fed National Activity Index for Dec.
10:30 am EST
  • The Dallas Fed Manufacturing Activity Index for Jan. is estimated to rise to -2.1 versus -5.1 in Dec.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China Industrial Profits report could also impact trading today.
BOTTOM LINE: Asian indices are slightly higher, boosted by technology and consumer shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the week.

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