Thursday, July 25, 2019

Friday Watch

Evening Headlines
Bloomberg:
  • Asian Stocks Set to Fall; Draghi Whipsaws Euro. Asian stocks are set to slip Friday after their U.S. counterparts fell from record highs amid a torrent of corporate results. The euro fluctuated and European bond yields climbed from all-time lows in the wake of the European Central Bank meeting. Futures pointed lower in Japan, Hong Kong and Australia, as the S&P 500 finished lower a day after the benchmark index closed at an all-time high. After the close of regular trading, Amazon fell after posting lower-than-forecast earnings and Alphabet rallied after exceeding revenue estimates. Treasury yields climbed and the dollar was stronger against most G-10 peers. Nikkei 225 futures fell 0.7%. Hang Seng futures fell 0.7%. S&P/ASX 200 futures declined 0.5%.
Night Trading 
  • Asian equity indices are -.5% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 57.50 -3.0 basis points.
  • China Sovereign CDS 39.25 -1.25 basis points.
  • Bloomberg Emerging Markets Currency Index  67.37 -.01%.
  • S&P 500 futures +.09%.
  • NASDAQ 100 futures +.15%.
Morning Preview Links 

Earnings of Note 
Company/Estimate
Before the Open:
  • (ABBV)/2.21
  • (B)/.78
  • (COG)/.33
  • (CL)/.72
  • (GT)/.34
  • (ITW)/1.98
  • (LEA)/3.74
  • (MCD)/2.05
  • (PSX)/2.70
  • (TWTR)/.19
  • (WY)/.10
  • (ZBH)/1.91
After the Close:
  • None of note
Economic Releases
8:30 am EST
  • Advance 2Q GDP Annualized QoQ is estimated to rise +1.8% versus a +3.1% gain in 1Q.
  • Advance 2Q Personal Consumption is estimated to rise +4.0% versus a +.9% gain in 1Q.
  • Advance 2Q GDP Price Index is estimated to rise +2.0% versus a +.9% gain in 1Q.
  • Advance 2Q Core PCE QoQ is estimated to rise +2.0% versus a +1.2% gain in 1Q.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The ECB Economic Survey could also impact trading today.
BOTTOM LINE: Asian indices are lower, weighed down by financial 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 100% net long heading into the day.

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