Tuesday, April 14, 2020

Wednesday Watch

Evening Headlines
Bloomberg:                      
  • Asian Stocks Open Mixed; Dollar Holds Decline: Markets Wrap. Asian stocks were mixed in early trading as investors scoured earnings reports for evidence of the impact of the coronavirus outbreak. The dollar held its retreat. Japanese stocks slipped while shares in Sydney opened modestly higher. Contracts on the S&P 500 edged lower after the U.S. gauge jumped to a one-month high on Tuesday. Giant technology stocks earlier pushed the Nasdaq 100 through its 50, 100 and 200-day moving averages. Johnson & Johnson surged after posting stronger sales and boosting its quarterly dividend. Meanwhile, JPMorgan Chase & Co. and Wells Fargo & Co. slumped as their profits were hit by major provisions. Treasury yields slipped and the yen edged higher. Futures on the S&P 500 slid 0.4% as of 9:04 a.m. in Tokyo. The index increased 3.1% on Tuesday. Japan’s Topix index fell 0.5%. Australia’s S&P/ASX 200 Index rose 0.2%.
Wall Street Journal:    
CNBC.com:
Zero Hedge:
Night Trading 
  • Asian equity indices are -.5% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 113.5 -5.25 basis points.
  • China Sovereign CDS 39.25 -1.0 basis point.
  • Bloomberg Emerging Markets Currency Index 59.10 +.10%.
  • Euro Stoxx 50 futures -.1%.
  • S&P 500 futures -.60%.
  • NASDAQ 100 futures -.34%.
Morning Preview Links

Earnings of Note 
Company/Estimate
Before the Open:
  • (BAC)/.60
  • (SCHW)/.61
  • (C)/1.44
  • (GS)/3.33
  • (PNC)/2.30
  • (PGR)/1.46
  • (USB)/.82
  • (UNH)/3.67
After the Close:
  • (ADTN)/-0.08
  • (BBBY)/.21
  • (LVS)/-.08
  • (SLM)/.90
Economic Releases
8:30 am EST
  • Retail Sales Advance MoM for March is estimated to fall -8.0% versus a -.5% decline in Feb.
  • Retail Sales Ex Autos MoM for March is estimated to fall -5.0% versus a -.4% decline in Feb.
  • Empire Manufacturing for April is estimated to fall to -35.0 versus -21.5 in March.
9:15 am EST
  • Industrial Production MoM for March is estimated to fall -4.0% versus a +.6% gain in Feb.
  • Capacity Utilization for March is estimated to fall to 74.0% versus 77.0% in Feb.
  • Manufacturing Production for March is estimated to fall -4.2% versus a +.1% gain in Feb.
10:00 am EST
  • Business Inventories for Feb. is estimated to fall -.4% versus a -.1% decline in Jan.
  • The NAHB Housing Market Index for April is estimated to fall to 55.0 versus 72.0 in March.
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory gain of +12,024,090 barrels versus a +15,177,000 barrel gain the prior week. Gasoline supplies are estimated to rise by +7,298,910 barrels versus a +10,497,000 barrel gain the prior week. Distillate inventories are estimated to rise by +2,034,550 barrels versus a +476,000 barrel gain prior. Finally, Refinery Utilization is estimated to fall by -1.85% versus a -6.7% decline prior. 
2:00 pm EST
  • US Fed Beige Book release
4:00 pm EST
  • Net Long-Term TIC Flows for Feb.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Australia Unemployment Rate, weekly MBA Mortgage Applications report and the (IR) business update 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 financial and consumer discretionary shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.

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