Thursday, February 13, 2020

Friday Watch

Evening Headlines
Bloomberg: 
  • Stocks Slip After China Reports More Virus Cases. U.S. equity futures slipped along with stocks in Tokyo and Seoul, though moves were modest, after the Chinese province at the center of the coronavirus outbreak reported more deaths. The yen was steady. On just the second day since the Hubei region changed its methods for counting infections, investors are mulling the spread of the virus in addition to news that the Federal Reserve will dial back its liquidity injections. The coronavirus death toll rose in China as Hubei reported 116 more fatalities on Thursday. Treasury yields dipped along with S&P 500 futures. Japan’s Topix index fell 0.6% as of 9:06 a.m. in Tokyo. South Korea’s Kospi index slid 0.3%. Futures on the S&P 500 dipped 0.1%. The gauge dipped 0.2% on Thursday. Australia’s S&P/ASX 200 Index rose 0.1%.
Night Trading 
  • Asian equity indices are -.75% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 49.5 unch.
  • China Sovereign CDS 33.25 -.5 basis point.
  • Bloomberg Emerging Markets Currency Index  65.0 -.02%.
  • FTSE 100 futures n/a.
  • S&P 500 futures -.03%.
  • NASDAQ 100 futures +.05%.
Morning Preview Links

Earnings of Note 
Company/Estimate
Before the Open:
  • (AXL)/.00
  • (AZN)/.99
  • (NWL)/.37
After the Close:
  • None of note
Economic Releases 
8:30 am EST
  • The Import Price Index MoM for Jan. is estimated to fall by -.2% versus a +.3% gain in Dec. 
  • The Export Prices Index MoM for Jan. is estimated to fall by -.1% versus a -.2% decline in Dec.
  • Retail Sales Advance MoM for Jan. is estimated to rise +.3% versus a +.3% gain in Dec.
9:15 am EST
  • Industrial Production MoM for Jan. is estimated to fall by -.2% versus a -.3% decline in Dec.
  • Capacity Utilization for Jan. is estimated to fall to 76.8% versus 77.0% in Dec.
  • Manufacturing Production for Jan. is estimated to fall by -.1% versus a +.2% gain in Dec.
10:00 am EST
  • Business Inventories for Dec. is estimated to rise +.1% versus a -.2% decline in Nov.
  • Preliminary Univ. of Mich. Consumer Confidence for Feb. is estimated to fall to 99.4 versus 99.8 in Jan.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone GDP report and the Bloomberg US Economic Survey for Feb. could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

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