Tuesday, February 05, 2019

Wednesday Watch

Evening Headlines
  • Asian Stocks Trade Flat; Dollar Holds Advance. Asian stocks opened mixed Wednesday as an extension of the post-Christmas advance in U.S. equities overnight failed to give any impetus to a regional trading session hit by Lunar New Year closures. Treasuries held steady and the dollar retained its gains. Japanese shares eked out small gains, while stocks in Sydney were little changed. The S&P 500 Index posted a fifth day of gains on Tuesday as technology shares offset a decline for financials. Earnings and economic data were mixed, giving investors little to trade on ahead of President Donald Trump’s address to the nation. Oil held losses below $54 a barrel. Japan’s Topix index was up 0.2 percent as of 9:08 a.m. in Tokyo. Australia’s S&P/ASX 200 Index were flat. Futures on the S&P 500 were little changed
Wall St. Journal:
Zero Hedge:
Night Trading 
  • Asian equity indices are +.25% to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 77.5 -.5 basis point
  • China Sovereign CDS 54.0 unch..
  • Bloomberg Emerging Markets Currency Index 68.74 -.01%.
  • FTSE 100 futures -.04%.
  • S&P 500 futures +.06%.
  • NASDAQ 100 futures +.13%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (BSX)/.36
  • (CTSH)/1.06
  • (CMI)/3.81
  • (LLY)/1.33
  • (GM)/1.21
  • (HUM)/2.53
  • (JEC)/1.04
  • (REGN)/5.60
  • (TTWO)/2.80
After the Close:
  • (CMG)/1.41
  • (FEYE)/.05
  • (FLO)/.15
  • (IRBT)/.58
  • (MET)/1.29
  • (NOV)/.09
  • (ORLY)/3.75
  • (PRU)/2.79
  • (RGLD)/.32
  • (WERN)/.69
Economic Releases
8:30 am EST
  • The Trade Deficit for Nov. is estimated at -$54.0B versus -$55.5B in Oct.
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory gain of +1,069,890 barrels versus a 919,000 barrel gain the prior week. Gasoline supplies are estimated to rise by +930,220 barrels versus a -2,235,000 barrel decline the prior week. Distillate inventories are estimated to fall by -2,097,440 barrels versus a -1,122,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to fall by -.37% versus a -2.8% decline prior.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Powell speaking, Fed's Quarles speaking, German Factory Orders report, $27B 10Y T-Note auction, weekly MBA Mortgage Applications report, Cowen Aerospace/Defense/Industrials Conference, (ZUMZ) Q4 sales release and the (COST) sales results could also impact trading today.
BOTTOM LINE:  Asian indices are higher, boosted by industrial and technology shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed.  The Portfolio is 100% net long heading into the day.

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