Thursday, June 20, 2019

Friday Watch

Evening Headlines
Bloomberg:      
  • Asia Stocks Seen Mixed With S&P 500 at Record High. Markets Wrap. Stocks in Asia looked set for a muted start Friday even as their U.S. counterparts climbed to a record high. Treasury yields climbed back above 2%. Futures were little changed in Japan, Hong Kong and Australia, with the MSCI Asia Pacific Index already up more than 3% on the week. Oil soared as President Donald Trump hinted at possible retaliation for Iran shooting down a U.S. drone. Energy stocks led U.S. share gains. The dollar slumped, while Treasuries gave up some gains seen in the wake of the Federal Reserve’s signal for lower interest rates. The S&P 500 Index rose 1%. Futures on Japan’s Nikkei 225 added 0.1% in Singapore. Hang Seng futures were little changed. Futures on Australia’s S&P/ASX 200 Index slid 0.1%.  
Night Trading 
  • Asian equity indices are -.25% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 64.50 -4.0 basis points.
  • China Sovereign CDS 41.0 -1.75 basis points.
  • Bloomberg Emerging Markets Currency Index 67.36 unch.
  • S&P 500 futures -.06%.
  • NASDAQ 100 futures -.08%.
Morning Preview Links 

Earnings of Note 
Company/Estimate
Before the Open:
  • (KMX)
After the Close:
  • None of note
Economic Releases
9:45 am EST
  • Preliminary Markit US Manufacturing PMI for June is estimated at 50.5 versus 50.5 in May.
  • Preliminary Markit US Services PMI for June is estimated to rise to 51.0 versus 50.9 in May.
10:00 am EST
  • Existing Home Sales for May is estimated to rise to 5.27M versus 5.19M in May.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Brainard speaking, Japan CPI report and the Eurozone PMI report could also impact trading today.
BOTTOM LINE: Asian indices are slightly higher, boosted by commodity and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 100% net long heading into the day.

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