Wednesday Watch

Night Trading 

• Asian equity indices are -.25% to +.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 60.50 -2.5 basis points.

• China Sovereign CDS 40.50 -1.5 basis points.

• Bloomberg Emerging Markets Currency Index  67.42 -.07%.

• S&P 500 futures unch.

• NASDAQ 100 futures -.19%.

Morning Preview Links 

Earnings of Note 

Company/Estimate

Before the Open:

• (ALXN)/2.34
• (ANTM)/4.62
• (T)/.89
• (BA)/1.90
• (BSX)/.38
• (CAT)/3.11
• (FLIR)/.54
• (FCX)/-.05
• (GD)/2.69
• (HLT)/1.02
• (KNX)/.57
• (NSC)/2.79 
• (NOC)/4.65
• (OC)/1.16
• (TROW)/1.88
• (TUP)/1.02
• (UPS)/1.93
• (VFC)/.29

After the Close:

• (CERN)/.64
• (CUZ)/.76
• (FFIV)/2.48
• (FB)/1.86
• (F)/.31
• (LSTR)/1.54
• (LVS)/.78
• (ORLY)/4.67
• (PYPL)/.83
• (RJF)/1.82
• (NOW)/.63
• (TSLA)/-.40
• (VAR)/1.13
• (XLNX)/.92

Economic Releases

9:45 am EST

• Preliminary Markit US Manufacturing PMI for July is estimated to rise to 51.0 versus 50.6 in June.
• Preliminary Markit US Services PMI for July is estimated to rise to 51.8 versus 51.5 in June.
  

10:00 am EST

• New Home Sales for June are estimated to rise to 659K versus 626K in May.
  

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -4,443,150 barrels versus a -3,116,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -1,395,170 barrels versus a +3,565,000 barrel gain the prior week. Distillate inventories are estimated to rise by +382,420 barrels versus a +5,686,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to fall by -.08% versus a -.3% gain prior.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Eurozone Manufacturing PMI report, weekly MBA Mortgage Applications report, House hearing on (STI)/(BBT) merger, Mueller's testimony to House on Russia and the $41B 5Y T-Note auction could also impact trading today.

BOTTOM LINE: Asian indices are mostly higher, boosted by industrial and technology 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.