Monday, December 09, 2019

Tuesday Watch

Evening Headlines
  • Asia Stocks in Holding Pattern Ahead of Fed, Trade. Asian stocks saw muted trading Tuesday as investors turned cautious ahead of the week’s potential catalysts, from central bank meetings to a looming tariff deadline. Treasuries and the dollar were little changed. Equities were flat-to-lower in Tokyo and Sydney, little changed in Seoul and dropped at the open in Hong Kong, as investors awaited news on whether Washington will go ahead with a planned Dec. 15 tariff hike. Trading volumes were below average. S&P 500 futures were flat after the benchmark ended at session lows in thin trading. Oil edged down. Topix index edged down 0.1% as of 10:23 a.m. in Tokyo. S&P/ASX 200 Index was down 0.2%. Kospi index was flat. Hang Seng Index fell 0.4%. Shanghai Composite index was flat. S&P 500 futures were little changed. The S&P 500 Index declined 0.2%.
Zero Hedge:
Night Trading 
  • Asian equity indices are -.25% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 64.0 unch.
  • China Sovereign CDS 38.75 +1.0 basis point.
  • Bloomberg Emerging Markets Currency Index  65.71 +.01%.
  • FTSE 100 futures +.08%.
  • S&P 500 futures +.01%.
  • NASDAQ 100 futures +.02%.
Morning Preview Links

Earnings of Note 
Before the Open:
  • (AZO)/13.74
  • (CONN)/.54
  • (HDS)/1.00
After the Close:
  • (PLAY)/.07
  • (GME)/.17
  • (OLLI)/.38
Economic Releases 
6:00 am EST
  • The NFIB Small Business Optimism Index for Nov. is estimated to rise to 103.0 versus 102.4 in Oct.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German ZEW Index, $24B 10Y T-Note auction, US weekly retail sales reports, Goldman Sachs Financial Services Conference, SunTrust Robinson Humphrey Industrials/Services Conference, Citi Consumer Conference, (NUAN) investor day, (THS) investor meeting, (OMCL) analyst day and the Cowen Networking/Cybersecurity Summit could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by industrial and financial 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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