Monday, December 02, 2019

Tuesday Watch

Evening Headlines
Bloomberg: 
  • Stocks Drop, Yen Holds Gain as Tariff Man Returns. Asian stocks slumped Tuesday after a sell-off on Wall Street triggered by fresh tariffs announced by President Donald Trump, renewing concerns about global trade tensions. Japan’s currency held gains after its biggest jump since October on Monday in the wake of Trump slapping steel tariffs on Brazil and Argentina. Shares in Japan, Australia and South Korea opened with a thud. Hong Kong futures were down. U.S. stock futures were little changed after the S&P 500 Index slumped 0.9% Monday, when disappointing U.S. manufacturing data added to the risk-off tone. Treasuries were the odd asset out, falling on Monday amid a global retreat from bonds. Topix index declined 1.1% as of 9:01 a.m. in Tokyo. Australia S&P/ASX 200 Index lost 1.8%. South Korea’s Kospi index fell 0.9%. Hang Seng Index futures fell 0.6%. Futures on the S&P 500 Index were little changed.
Zero Hedge:
Night Trading 
  • Asian equity indices are -1.25% to -.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 64.5 unch.
  • China Sovereign CDS 38.75 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index  65.30 -.02%.
  • FTSE 100 futures +.18%.
  • S&P 500 futures +.04%.
  • NASDAQ 100 futures +.01%.
Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:
  • (BMO)/2.41
  • (DCI)/.53
  • (LE)/.09
After the Close:
  • (AVAV)/.29
  • (HQY)/.23
  • (MRVL)/.17
  • (CRM)/.66
  • (WDAY)/.37
  • (ZS)/.01
Economic Releases
  
Afternoon:
  • Wards Total Vehicle Sales are estimated to rise to 16.9M versus 16.55M in Oct.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The NATO Summit, Eurozone PPI report, Australia GDP report, US weekly retail sales reports, Morgan Stanley Consumer/Retail Conference, Piper Jaffray Healthcare Conference, CSFB Industrials Conference, (UNH) investor conference, (BDC) investor day, (GES) investor day and the Scotiabank Mining Conference could also impact trading today.
BOTTOM LINE: Asian indices are lower, weighed down 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 75% net long heading into the day.

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