Tuesday, February 19, 2019

Wednesday Watch

Evening Headlines
  • Asia Stocks Gain as Profits Buoy U.S.; Yuan Climbs. Asian stocks climbed after positive earnings sentiment helped boost U.S. equities, while Treasuries pushed higher as trade concerns lingered. The yuan extended gains amid a report the U.S. is asking China to keep its currency stable as part of the negotiations. Shares in South Korea and Hong Kong led the region, with the MSCI Asia Pacific Index trading at the highest since early October. Earlier, the S&P 500 Index rose after profit at Walmart Inc. lifted retailers and home builders got a push from higher housing activity. Still, gains were modest as worries remained the trade truce will end March 1 without a deal, leading to fresh tariffs. The yen slipped after Japan’s trade deficit came in wider than expected. The MSCI Asia Pacific Index gained 0.6 percent as of 9:33 a.m. in Hong Kong. Japan’s Topix index advanced 0.5 percent. Hang Seng Index gained 0.7 percent. South Korea’s Kospi rose 0.9 percent. Australia’s S&P/ASX 200 Index slid 0.2 percent. The S&P 500 Index rose 0.2 percent on Tuesday. Futures were flat
Wall St. Journal:
Zero Hedge:
Night Trading 
  • Asian equity indices are unch. to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 73.25 -2.75 basis points
  • China Sovereign CDS 52.0 -2.0 basis points.
  • Bloomberg Emerging Markets Currency Index 68.23 +.05%.
  • FTSE 100 futures -.06%.
  • S&P 500 futures unch.
  • NASDAQ 100 futures +.03%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (ADI)/1.28
  • (CVS)/2.07
  • (OC)/1.27
  • (SINA)/.89
  • (WB)/.76
  • (WWW)/.49
After the Close:
  • (A)/.73
  • (ALB)/1.47
  • (CAR)/.33
  • (CAKE)/.62
  • (CPRT)/.51
  • (FLS)/.58
  • (JACK)/1.28
  • (NTES)/2.44
  • (RGR)/.79
  • (SNPS)/.94
  • (VMI)/1.90
  • (VIPS)/1.26
Economic Releases
2:00 pm EST
  • FOMC Meeting Minutes from for Jan. 30.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Australian Wage Data report, weekly US retail sales reports, weekly MBA Mortgage Applications report, Citi Industrials Conference, Barclays Industrial Select Conference and the (RDWR) analyst meeting could also impact trading today.
BOTTOM LINE:  Asian indices are mostly 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 100% net long heading into the day.

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