Thursday, February 28, 2019

Friday Watch

Evening Headlines
  • Stocks in Asia Rise as Yen Weakness Buoys Japan. Stocks in Asia notched up gains early Friday, with Japanese shares helped by overnight weakness in the yen. U.S. shares earlier edged lower amid a mixed set of economic signals. Treasury yields held on to gains. Japanese equities posted the bulk of gains ahead of the open in Hong Kong and China, where focus will be on MSCI Inc.’s announcement that it will boost the weight of domestic so-called A shares in its global benchmarks. The S&P 500 Index slipped as lingering concerns over trade and geopolitical risks dented sentiment, despite a report showing the U.S. economy cooled less than expected last quarter.“Stocks are pretty close to fair value,” Scott Wren, a senior global strategist at Wells Fargo Investment Institute Inc., told Bloomberg TV. “Now the story is the global growth concern and I would argue that is what the market is most worried about.” Japan’s Topix index rose 0.5 percent as of 9:05 a.m. in Tokyo. Futures on the S&P 500 Index were flat after the underlying gauge fell 0.3 percent Thursday. Australia’s S&P/ASX 200 Index rose 0.5 percent.
Wall St. Journal:
Zero Hedge:
Business Insider:
Night Trading 
  • Asian equity indices are -.25% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 70.0 +.25 basis point
  • China Sovereign CDS 49.5 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 68.20 -.01%.
  • FTSE 100 futures +.09%.
  • S&P 500 futures +.14%.
  • NASDAQ 100 futures +.15%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (EBIX)/.96
  • (FL)/1.40
  • (SNH)/.34
  • (STRA)/1.50
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • Personal Income for Jan. is estimated to rise +.3%.
  • Personal Spending for Dec. is estimated to fall -.3% versus a +.3% gain in Nov.
  • PCE Core MoM for Dec. is estimated to rise +.2% versus a +.1% gain in Nov.
10:00 am EST
  • ISM Manufacturing for Feb. is estimated to fall to 55.7 versus 56.6 in Jan.
  • ISM Prices Paid for Feb. is estimated to rise to 51.8 versus 49.6 in Jan.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China Caxin China PMI report, Eurozone Manufacturing PMI report and the (ETN) investor conference could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by technology and commodity 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.

No comments: