Monday, February 04, 2019

Tuesday Watch

Evening Headlines
  • Stocks Rise in Holiday-Hit Trading; Dollar Steady. Stocks gained in Japan and Australia Tuesday, with many markets in Asia closed for the Lunar New Year. The dollar and Treasury yields stabilized after gains. Australian shares outperformed as financials rallied after the results of a yearlong inquiry into misconduct in the financial services sector published Monday were not as harsh as had been anticipated. The S&P 500 Index closed at a two-month high on lower than average volume and the Nasdaq climbed as technology shares advanced. U.S. futures were becalmed in Asian trading Tuesday. Markets in Hong Kong and China are among those shut for the Year of the Pig celebrations, keeping volumes subdued after a busy week that included relatively dovish Federal Reserve comments and U.S.-China trade talks in Washington. Investors will continue to look for direction from a corporate earnings season that’s been mixed so far. Japan’s Topix index rose 0.4 percent as of 9:16 a.m. in Tokyo. Australia’s S&P/ASX 200 Index rose 1.7 percent. S&P 500 futures were flat.  
Wall St. Journal: 
Zero Hedge:
Night Trading 
  • Asian equity indices are unch. to +1.0% on average.
  • Asia Ex-Japan Investment Grade CDS Index 78.25 -.5 basis point
  • China Sovereign CDS 54.0 -.5 basis point.
  • Bloomberg Emerging Markets Currency Index 68.74 +.01%.
  • FTSE 100 futures +.56%.
  • S&P 500 futures -.12%.
  • NASDAQ 100 futures -.07%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (AGCO)/1.22
  • (ADM)/.93
  • (BMI)/.37
  • (BDX)/2.63
  • (BP)/.13
  • (EMR)/.66
  • (EL)/1.54
  • (LITE)/1.16
  • (RL)/2.15
  • (VIAB)/1.03
  • (WCG)/1.56
After the Close:
  • (ALL)/1.24
  • (APC)/.62
  • (CERN)/.63
  • (CB)/2.00
  • (EA)/1.94
  • (MCHP)/1.57
  • (OI)/.62
  • (SWKS)/1.84
  • (DIS)/1.57
  • (ZEN)/.03
Economic Releases
10:00 am EST
  • The ISM Non-Manufacturing Index for January is estimated to fall to 57.1 versus 57.6 in Dec.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The State of the Union, Eurozone PMI report, $38B 3Y T-Note auction and the (SCHW) business update could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by financial and technology shares in the region. I expect US stocks to open modestly lower and to strengthen into the afternoon, finishing mixed.  The Portfolio is 100% net long heading into the day.

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